larry mcdonald, can i talk one second about china.mbers coming in better than people thought. we had a whole string of them. you tell me if you agree or not. i posit that's helping emerging markets, helping europe and helping the american stock market as well. in fact may be helping the price of oil and other commodities. what's your take? >> i completely agree, but you have to remember this is a great commodity super cycle unwind. >> still. >> in other words, china has had a number of head fake rallies. there was one back last fall where you have these brilliant rally, rise in commodity prices only to suffer a decline later on. one thing that we see, i credit this index in my 17 lehman brothers risk indicators and i know we have the fifth anniversary coming up but the systemic risk around the world, the epicenter of risk was the united states in 2012. now going forward i see clear signs of systemic risk in asia coming from china so this is a short-lived rally. i would be shorting the emerging market. >> you would be getting out stock

larry mcdonald of new edge. does it matter who is fed chair? >> i don't really think so. i would have thought that dovish would have hurt the financials because the financials themselves, the jp morgans, they talk about we will make more money if rate goes up if you have a positive ship to the yield curve. so i would have thought -- delayed taper. >> in terms of lending it's better for lending. and we did see that play out when it comes to the housing trade. >> to the other side of the coin is wells fargo and jp morgan, the rate rise in mortgages that we have seen and the decline in refis have really hurt that business. for me, again, it's a flip of a coin and as an active money manager i am always looking for the risk reward. >> flagstone is interesting. i think merrill lynch put it on one. that is a stealth way to play. you mentioned this before. the housing as well. that's a big move. i have liked it for a while. i still think that has some upside potential. >> j.p. morgan settled a 750 million dollar london -- i think if they could shoot down some of the problem areas

>> joining us larry mcdonald, vice president at lehman and author of "a colossal failure of common sense: the inside story of the collapse of lehman brothers," dennis kelleher. good to see everybody. thanks for joining us. dennis, what's your reaction to jpmorgan now allocating $4 billion and 5,000 employees to manage risks? >> well, you know, i would say it's long overdue. most of the dozen or so too big to fail banks on wall street should have done this years ago. the other thing that was fascinate being that story and shocking, i would say, is apparent -- reports jamie dimon they cannot overrule compliance and legal heads. why has it taken five years to prioritize ly prioritize legal risk and xlints for those that managed the p&l. they need to put people in places to avoid london-wales, a bank so big that it stretches around the world. it's not only too big to fail. it's too big to manage and too big to prosecute. >> you have to wonder what's changed in the last five years. those who say banks are chockful of derivatives. sandy wile was on cnbc exclusively earlier this week and said t

joining me now, allen russkin with deutsche bank, and also with us is larry mcdonald, senior director the newedge usa. thank you very much for joining us. >> thank you. >> hi, maria. >> are you expecting september to be the beginning of the tapering? >> yes. absolutely. there's a chance, of course, that if the syria events spill over to the neighbors -- russia, turkey, saudi arabia, israel -- if those countries get involved, then tapering could be delayed. but otherwise not. >> does the syria story affect the tapering right away? i mean, we know what's happening -- you're saying if there is military action, that could delay it? >> no, i think if military action, then, brings in some of the major neighboring countries, that would change things completely. >> larry, you think the fed will, in fact, postpone tapering? >> well, i was in that camp. i was in the september camp. the last month, the fed has bit off more than they can chew. they have violently struck the foundations of central banks and banks throughout asia. you have investment grade bonds in asia, some of them are down 20%,

and mcdonald's cheif marketing officer will step down early next year... according to the chicago tribune. larry shover of sfg alternatives joins us now, and larry, what do you expect as far as buying and selling in the market today? > > well i think it's going to be more of the same. i mean-- the market-- even though we've had tight ranges, it's been very volatile and i think at the end of the day, traders right now tend to be apathetic, bored as opposed to being necessarily negative. so i think it's just more consolidation and digestion of what's happened over the last couple weeks. > > there's volatility in the market, and yet, the vix which measures anxiety in the market hasn't popped. in fact, it's been dropping. > > yeah that's a great point. it has dropped and i think it's due to the fact that people aren't concerned so much with that big gap down that they were with the fed tapering news or whatever was going to happen last week. so people are less concerned with that and just not buying downside protection. > > and they're not worried obviously about the government shutdown either, let'

mcdonald's commercial. remember the michael jordan and larry bird will they are doing the same bit.n you pay him he has a very good personality. and now the media us scrunchy talks little humbled. (laughter) >> gary: apparently, if they could unless they go on in long losing streak. when you play one of the all-time greats merritt denver is up to a real nice start. >> he has seemed a lot and has done a great job in preparation so it will be hard it will come down to execution. the team that executes the best when a football game. >> gary: buccaneers safety and former 49er dashon goldson's 1-game suspension has been reduced to a $100,000 after an appeal >> flagrant and repeat violations of nfl safety rules prohibiting hits to the head and neck area of defenseless players. the latest incident was this hit on saints running back darren sproles >> gary: stamford and arizona state the colonel ranks this in america. it will be the toughest opponent and they are the most controversial i think you saw it jackie barrett jacqueline >> jacqueline: (laughter) >> gary: >> gary: that is my favori