so how do you lose being short housing in the second punch, larry somers, himself, if the fed didn't gap, the markets knew his appointment would. what an ideal short situation. let say you take somers out of the equation, then you lose that short protection. so putin hedge fund managers had to cover or buy in their housing related shorts, which is what happened at the opening, once they were finishing their buying, it went down the rest of the day. we got voracious buying in toll brothers, lennar, sherwin williams, lumber liquidators. so the short got spoiled by this preemptive resignation. but before we go overboard about somers, don't forget this market does have tremendous amount of underlying strength. we had a terrible tragic shooting in washington today. the type of incident that these people scared in speechless. a few years ago, i think this market would have tangledness. it didn't matter when obama made it really clear we're going to have another debt ceiling showdown within a month. we are off to the races led by every stock that have been hammered since interest rates start

so the president very much clearly wanted to have larry somers, least in consideration, i'm told, ate's not the right person. the other issue is the idea that he might not have the greatest reputation with. and as joe just mentioned, he was president of the yumplt. now, i should also say in his defense, one of the most famous women of recent that month, cheryl sandbourg, she was one of his property jays. she has been out there defending him and his attitude towards and policy towards women. you have women in the senate and there are a number of them now in the democratic party. and you have liberalings who don't think it's the right wade to go. it would have been a very, very rough confirmation battle hereto in the committee. >> all right, dana bash, thank you so much for joining us on the foin. >>> next, bill cosby never shy about speaking h 4iz mind. how he talked about a tragedy that happened 50 years ago today. four little girls ki8ed when a bomb was thrown in a baptist church. time for this week's hero today. when this week's cnn hero discovered this problem in her north carolin

larry somers taking his name out of contention.ly was obama's top choice, everyone says, behind the scenes, so what do you think is going on there? >> this is a classic washington whodunnit? he technically pulled his name. he wanted the job. obama wanted to give him the job. so who is cullpable in this case? it's the follow up of the democratic party which is increasingly resurgent. there were real doubts whether he could get larry somers' nomination through the senate. he was an ad advocate in the 1990s. today, kate, the 15th anniversary of the lehman brother. a lot of folks on the far left blame larry somers. so he went from someone who soared through if senate with confirmation to being someone who obowl was looking at a tough fight with his base. it may not have been a fight he really wanted. >> what about the whole thought the president should be able to have the advisers he wants in his inner circle. >> wouldn't it be nice to think so. and a democratic marty increasingly saying, no, worry not going to rubber stamp things from

let you know -- coming up. ,,,,,,,,,,,,,,,,,, >>> stocks are on the up today in a big way after larry somers stepped out of the race to become head of the federal reserve. somer was expected to rein in the fed's stimulus program. janet yellen who has deep bay area roots is the front-runner. investors liking the move because look at the dow soar up 130 points today. >>> today president obama marked the five-year anniversary of the financial university and put on the pressure for congress to pass a budget without delay. >> i will not negotiate over the full faith and credit of the united states. this country has worked too hard for too long to dig out of a crisis just to see their elective representatives -- elected representatives here purposely cause another crisis. >> by september 30th, the government could partially shut down if no agreement is made. and then the debt limit could be raised or risk defaulting on loans. >>> bim gates takes the top spot of america's richest for the 20th straight year. a magazine says he's worked $72 million. the list did not change much since last year. the o

do you think it was the right thing for larry somers to do to pull his name out of consideration? and obviously you're on the house side but do you think had he gone up to the senate he could have been confirmed? >> i don't know the answer to the second question. there was obviously controversy. have had the opportunity of i have had the opportunity to work with him both when he was undersecretary and as secretary , found him to be extraordinarily competent, knowledgeable, respected and i know the president relied heavily on him for economic advice and felt strongly about his capabilities. i've not talked to larry somers but my conclusion is that he decided that the controversy that would be surrounding the confirmation or his appointment would undermine the confidence that we need to have in the federal reserve and so i think in a very responsible way he made a determination that he did not want to further politicize or create controversy within the federal reserve. so i think he probably did the right thing, certainly from his perspective. but he's a person of immense and will c

askedsly larry somers has not to be considered. you know, the process moves forward and when the president has an announcement, that's when you'll hear what his decision is. >> two questions, on brazil, you say you don't want the multifaceted relationship to be overshadowed by one issue, wouldn't the best way to do that to prove it's not overshadowed by one issue to go ahead and have the visit and -- to prove that this one issue isn't overshadowing anything? >> i think currently this one issue is a matter of intense focus, especially in the brazilian media and obviously a concern for the brazilian government. we are working with the brazilian government to discuss hose concerns. we'll continue to do that. president obama felt it was the right choice to postpone the visit. >> the white house is acknowledging it would have been overshadowed, that the rest of the issues wouldn't have gotten any -- even if she'd come -- >> i think there's no question it would have -- the other very important issues would have received less attention, a

yesterday, larry somers pulled his name from consideration for the position and there was concern among investors that somers would have ended the stimulus policy more quickly. yellers was president of the reserve bank in san francisco. if appointed, she would become the first woman to head the central bank. bernanke's term ends this january. >>> 7:58. we're still following breaking news this morning of a shooting at a navy shipyard in washington, d.c. these are the pictures we're seeing now. we'll tell you what we're hearing about the shooter and shooters and the number of victims. >>> we're live in oakland where a traffic stop turns violent when a man leads police on a chase, crashes into a car, pole, and liquor store. we'll show you the damage next. >>> good morning. right now, it's been -- well, this morning, it's been a rough one. we'll tell you where the troubled spots are. but the south bay is looking good. >> fog isn't going to last too much longer. temperatures today a little warmer, a little cooler. what about the end of the week. it could be our first rain of the season. when

when you have people like larry somers who are able to just fail upwards, that is to go from failingne position and then continue to get promoted in the next -- to the next position, and when the network helps them to do that, then we have a problem as a society also because we tolerate that. host: so just to let you know. that's off of twitter. another tweet. guest: there's absolutely no one model. but what does seem to be a prevailing pattern -- i'm about charting pat rns and nitty-gritty roles and relationships and networks. who knows, how do they know them, what are the contedgets of the relationships, and what's going on? what do they mean? so you can have -- very often people use think tanks and universities when they're on the air, for instance they'll use a university or think tank label because those are the most neutral. those are the most impressive. so if you see that someone's a harvard professor or a george mason professor or a professor wherever, you're not necessarily going to think, oh, they might actually have a company or they might have another agenda or they migh

reports coming out of japan today claiming that president obama has made a decision to nominate larry somers as charge of the federal reserve, but the white house this evening saying not so fast. we'll check in with chief washington correspondent john harwood about what's really in the works. that'll be right after the break. please stay with us. geoff: i'm the kind of guy who doesn't like being sold to. the last thing i want is to feel like someone is giving me a sales pitch, especially when it comes to my investments. you want a broker you can trust. a lot of guys at the other firms seemed more focused on selling than their clients. that's why i stopped working at my old brokerage and became a financial consultant with charles schwab. avo: what kind of financial consultant are you looking for? talk to us today. ♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools introduce themselves. all the bits and bulbs keep themselves stocked. and the doors even handle the checkout so we can work on that thing that's st

larry somers was a completely different story there. we got a bid on that alone. now as we head into the debt ceiling debate, whether or not we've shut down the government. i think bonds will get it again, steve liesman is reporting the feds will do everything they can. it's all good for bonn right now i don't think we should get it. >> what are the key levels and how low do you think yields can go? >> i don't think they go much below that. if they did, somewhere in the heads of the fed, or else the chairman would have never mentioned it at noon. i think taper talk resurfaced. the they saying, he's said that kind of stuff and picked up one full handle. >> jimmy, i tell you, that's the first fed official i heard that said they could add stimulus to the markets. >> i heard that, too. >> gentleman, we will put it on the bond. tune in, futures now doubt cnbc at 1:00. we will have dennis gartman the commodities king. he is bullish on stock, more bullish. this is the futures now, you don't want to miss. >> jackie, we won't. 1:00 on cnbc.com. up next, ackman moving on. i

focused on the ongoing battle for the chairmanship of the federal reserve, and the campaign against larry somersfrom democratic senators like elizabeth warren. yesterday on this program, it was sheila bair giving her support to janet yellen. >> i think she would be a great candidate. i hope the fed nominates her. >> importantly, i am not taking a stake in this. i have no idea who is the better stake. or another veteran donald cohn. aside from personality, some are balking at him being the guy is he has two types of wall street. wait a second, let me get this straight. we don't want the person who occupancy the most important seat for the financial markets and the oversight of the banking sector who actually understands how markets work and how bankers think. correct me if i'm wrong, did we not just come off the worst financial crisis in history five years ago this month because nobody in authority fully understood what a css or ceo where were? please, they were able to take the entire financial system down, i would imagine this time around we do want someone with sophisticated only in of how mar

larry somers i'm sure would make a fine fed chairman.s is another indication she's not. >> could have been an opportunity. she's still talented. >> no question about that. scott, thank you. 6:18 now. speaking of talent let's check in with our very talented meologist christina loren. >> doesn't take a scientist to tell you this is a really dangerous situation. especially when you factor in the weather conditions we are expecting. i'm talking about the morgan fire over mt. diablo and you can see that smoke plume even from the bay bridge. so we're watching this closely, team coverage for you, a close look at what we are expecting in terms of the weather. coming up in my next report. but for right now i want to show you a live look of san jose. it's going to be a hot day across the bay area. even here i'm forecasting mid-90s. so you can see we have a little bit of the marine layer formation but not much. it's not going to last long at all. temperatures now mostly in the 60s. 65 degrees for livermore, 63 in san jose, 60 in sunnyvale. we have

that will be a lot more salient than larry somers or syria has turned out pretty well. people support the president's approach there. i think it's more of a media narrative than the real thing there this was a clip. this was obama talking yesterday in kansas city just after the house republicans voted for the defunding bill. this is a clip from yesterday. let talk about it. >> now, let's put this in perspective the affordable care act has been in the law for 3.5 years. it passed both houses of congress, supreme court, ruled kojs institutional. it was an issue in last year's elections. >>> the guy running against me said he was going to repeal it. we won. >> susie, i was struck he seemed ra lot more focused, a lot sharper, a lot lively, energetic than he seemed, you nope, lately. maybe this fight with the republicans as crystal said is sort of giving him more purpose. this one fairtive started to table a little bit. maybe it was an opportunity to reverse that narrative. >> one thing we were showing the approval rating at where it is now, that is miles above where it is h

if that would be seen by him, i think it's more important -- we seen how important it is that larry somerst i think. >> it was not a done deal before, joe, before, that he would be confirmed before this absolutely no way. >> john harwood reported that. >> it is absolutely certain he would be nominatedment i am telling you. >> either one can get through. >> hey, jen, it's been several weeks since i talked to you. looking at the market, we are below 15,000. it seems the bulls have been a little on the run. what's happened and where do you think we head from here? >> you know, becky, i just think since may, i just think we have facing a lot of hurdles that are going to keep us from going a lot higher than we already have been this year. much higher valuations in equities. a complete re-valuation of the bond market that isn't over yet, i don't think. we got syria, tapering, a fiscal drama. i think we'll get through every one of those. i don't think they will kill this thing off. but i think it will keep it from going a lot higher. the biggest thing in the room, i think syria tapering all side

adam: i read something about larry summers and the potential for him to the federal reserve chairman and is upset me because those opposed to mr. somers are opposed because they want someone in place for when the next financial crisis hits, what washington insiders are saying which led me to believe the next chairman has to deal with the financial crisis with our people in washington talking behind-the-scenes about another lehman type event coming are way? >> no. the concern is potential for one is still out there. until you have a full lack full recovery from the recession of 2007-2008 and by that mean a global recovery you still have to worry about those things, particularly the fact that europe is a long way from that, there are unsettling things about the economic situation in china and there are going to be continuing questions here about the strength of the housing market and the financial markets overall. i don't think anybody is living in fear of that. everyone lives with the realization that this is a long way down and it will be a long way back abandoned to you are all the way out of polk of potential for something going wro