stm clouds swirl around meredith whitney and her advisory group. it is all the word on wall street and we've got the inside scoop. >>> and "who made money today?" here speculation that a certain billionae will invest in their company has them seeing dollar signs. not sure who it is? stay tuned to find out. even when they say it's not it is always about money adam: our top story the newest twist in the health care fight. the back and forth and perceived hypocrisy over obamacare. the announcement that the president obama would delay the employer mandate another year has republicans up in arms. why for a delay just for employers and not for the individual mante? if it ii in the law, how can any of it be delayed without congressional approval? the latest fight in washington d one with serious consequences for all of u every american. fox business's elizabeth macdonald is on the story. emac, how can they do this without congressional approval? >> that is exactly right. three gop members. house, fill roe, kevin brady and darrell issa saying same thing. y

meredith whitney joins in another cnbc first interview.ee you. >> thank you. >> you say the aftershocks of detroit will be staggering is your word. elaborate on that. what are you expecting? >> the aftershocks are so significant here, because detroit is setting a precedent. and everything that was the controversy surrounding whether a set like detroit would go bust into a city of detroit declaring bankruptcy was so intense. remember a couple of months ago, and now everyone says it's a consensus, but the issue really is which constituency wins? do the bond holders win? the taxpayers win? the residents of the city win? the fact is everybody loses. everybody will have to make a concession. and that's really what detroit is saying. so i think you're getting into an issue where it's no longer ability. it's an issue of willingness. for the bankruptcies you've seen more recently over the last year, anyway, it's been -- the leader's decision to side with preserving the safety and soundness of a town or city against bond holders, against pensioners

meredith whitney, we thank you very much.e recommend her book, which is entitled state of the states is entitled state of the states on lon -- there is a pursuit we all share. a better liffor your family, a better opportunity for your business, a better legacy to leave the world. we have always believed in this pursuit, striving to bring insight tovery investment, and integrity to every pn. we are morgan stanley. and we're ready to work for you. summer event is here. now get the unmistakable thrl and the incredible rush of the rcedes-benz u've always wanted. ♪ [ tires screh ] but you better get here fast. [ girl ] hey, daddy's here. heryou go, honey. thank you. [ male announcer ] because a good thing like this won't last forever. mmm. [ male annouer ] see your authorized dealefor an incredible offeon the exhilarating c250 sport sedan. but hurry. offers end soon. >>> at theime of chris kyle's tragiccdeath in febrry of this year, he was finishing up a book that defined his passion with guns, "american striper" a runaway best se

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meredith whitney broke a book on the topic. >> from 2008 to 2011 the u.s.conomy grew by over 8% and louisiana's economy grew by 16% and north dakota's economy grew by close to 26%. >> reporter: so does that tell you anything about where we are? the economic center is moving towards the center of the country. we'll see if our top state rankings bear that out this year. we'll give you our first diabolical hint coming up on "closing bell" today. read all about our study and meredith whitney has written a blog for us and follow me on twitter, and tell us what you think. interesting, sue, a lot of governors have weighed in, and we've put their colts up as well. want to know if your governor has weighed in. >> thanks, scott. hours away from the start of earnings season. alcoa reports first. what does it mean for everybody else? brian sullivan is back. he has a look at what's up on "street signs." >> thanks very much. boon pickens with the five-year anniversary of plan and where he thinks he can take is in another five years. more on the asiana crash and don't you

melissa: meredith whitney is one of wall street's most famous oracles. she written a new book, fail the of the states. she predicted the subprime crisis. i recently spoke to her to get her forecast for some of the biggest issues facing our money. we started off with housing because it seems to be exploding again. i meanto a lost areas we're seeg housing prices really climb back and my question for you, since you saw the first one coming and everything that came with it, do you think that we are on the precipice of another housing bubble, yeso? or no? >> no. you have homeownership rate right around 65%. it probably has to go to 64% to normalize. it got close to 70% in 2006. that was the peak. that was really driving home prices. i think what is going on right now, you're bouncing off the bottom and having double-digit bounces off the bottom. phoenix, arizona, for example, market sup 20% but still off 45% from the peak. you're dealing with very big bounces off very low bottoms. there are exceptions to this market. there are exceptions in miami and new york

meredith whitney says detroit's going bust is the first domino to fall.that one and a bankruptcy battle in detroit actually begins today. after the break, one person says it's all the union's fault. that's next. ♪ (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar le my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company." you know it even after all these years. but your erectile dysfunction - you know,that could be a question of blood fl. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needingo go frequently or urgently. tell your doctor about all

find buyers for these increasingly distressed assets so it looks like our favorite casandra meredith whitney was just a couple of years too early. and here's what's new our prime interest. under current basel three proposals within the next five years banks will have to hold equity equal to three percent of assets this means that for every one dollar of capital a bank can basically loan or gamble on derivatives thirty three times that amount earlier i spoke with robin barry a former investment banker with crowd.

meredith whitney joins us with her analysis. next.ou: joining me no watching the market in what is going on with the cortex of the market neared its whitney ceo it is good to have you with us. with four straight days of gains in the stockar rising it looks like the whole world there is candy rock mountain stream of u.s. on relative basis is great in the fundamentals are improving. the u.s. economy looks better than anywhere else in the world so weave this enronment with real growth and the inflation hedge because part of the economy is in inflation node part of it is in deflationary. is a safe place to put your money coming on of the bond market into equities so there is reason to believe the market is still cheaper courbet the ones to have the market have a cold -- to pull back but it isn't. i am not saying that it won't. lou: the markets frustrating a lot of the gurus but a couple of things developing today is the suggestion that perhaps there is devil back of the tax exemption of municipal bonds. >> that has been on the table for a

find buyers for these increasingly distressed assets so it looks like our favorite cassandra meredith whitney was just a couple of years too early. and here's what's new are i mentioned this. undercurrent basel three proposals within the next five years banks will have to hold equity equal to three percent of assets this means that for every one dollar of capital a bank can basically loan or gamble on derivatives thirty three times that amount earlier i spoke with robin barry a former investment banker with credit suisse and a corporate finance executive and i asked her about leverage during the financial crisis and the expansion of the derivatives market. all of the banks got in trouble in the financial crisis because of the bets they place on the mortgage market in the securitization that happened from that we saw just last year j.p. morgan have a trading loss that they first. started as a loss of you know some they thought that their loss was two billion then it became six billion. and that's just one example of something that can't be valued if they don't know their total risk which is ha

find buyers for these increasingly distressed assets so it looks like our favorite casandra meredith whitney was just a couple of years too early. and here's what's new our prime interest. under current basel three proposals within the next five years banks will have to hold equity equal to three percent of assets this means that for every one dollar of capital a bank can basically loan or gamble on derivatives thirty three times that amount earlier i spoke with robin barry a former investment banker with credit suisse and a corporate finance executive and i asked her about leverage during the financial crisis and the expansion of the derivatives market. all of the banks got in trouble in financial crisis because of the bets they place in the mortgage market and the securitization that happened from that we saw just last year j.p. morgan have a trading loss that they first. started as a loss of you know some they thought that their loss was two billion then it became six billion. and that's just one example of something that can't be valued if they don't know their total risk which is hard f

now with the outlook on what is moving the market with the four text of the markets we have meredith whitneygood to have you with us. four straight days of gains in stocks are rising and it looks like the whole world is candy rk mound. >> the west on her own looks great and the funmentals are improving and the u.s. economy looks better than anywhere else in the world's we have the environment of real growth in to have the inflation hedge because of it is inflation sullivan has deflationary so it is a safe place to put your many of the bond market also why it is so cheap but everybody wants tohave the market had a big pullback by justin doingnd not saying that it won't. lou: your right. this market is frustrating a lot but a couple of things developing today is the suggestion that there should be rolled back of the tax exemption for the municipal bonds? >> that has been on the table for a while. i don't know if has advanced toward not but it has been on the table. we will see how that turns out. lou: balls '03 is not strong enough so someone like to raise it up that 6 percent it be done nd wi

. >> meredith whitney breaks out her crystal ball. from unemployment to the housing to the fed.s a forecast you only get right here. >>> a former trader memoir most the roof off wall street. drugs insiderred trading you name it. how is that driving scandals at laces like sac capital? the author gives us juicy details. >>> it has been a wild few months for some of the country's biggest ceos. are they still the best guys for the job. our power panel tells us if they're a buy, sell or hold. even when they say it's not, it is always about

find buyers for these increasingly distressed assets so it looks like our favorite cassandra meredith whitney was just a couple of years too early. and here's west and you are right.

meredith whitney joins us with her analysis. next. theris a pursuit we all share. better life for your family, a better opportunity for your business, a better legacy to leave the world. we have always believed in this pursuit, striving to bring insight to every investment, and integrity to every plan. we are morgan stanley. and we're ready to work for you. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, it could save you thousands in out-of-pocket costs. call now to request your free decision guide. i've been with my doctor for 12 years. now i know i'll be able to stick with him. you'll be able to visit any doctor or hospital that accepts medicare patients

is this the first domino that might just go the meredith whitney the two thousand and eleven prediction of a wave of new need defaults area and will dig into the fine print of detroit's bankruptcy filing later in the show it's a precedent setting a bend in more ways than one and speaking of insolvent would be very messy without mentioning the fed which is gamed its own accounting manual to make sure the big banks get paid ahead of the taxpayer a new york times article highlighted our recent guest steve kean and how bernanke got it oh so wrong and provide some choice cotes quotes from a nobel prize winning economist in two thousand and three nobel laureates robert lucas jr actually said math macro economics has succeeded a central problem of depression prevention has been solved finally detroit might be in the sewer but that doesn't stop movies from upgrading its outlook on u.s. debt from negative to stable and the aaa rating still into moody's actually said the federal government's debt trajectory is on track even with though for their budget measures well you don't want to get sued by

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then wall street wizards meredith whitney explains why detroit is just the beginning. and dean baker disagrees entirely. also what in the world? we have created a new economic time bomb, except its under ice. i'll explain. >>> and presenting the world's newest superhero, is not even a man, get ready for feminism in a burqa. all that and more up ahead. >>> but first, here's my take. if you were to ask me what international problem is least likely to be resolved in the next few years, i would probably say the conflict between the israelis and the palestinians. it takes no special insight to be skeptical on this, no one has ever lost money betting on the mideast peace process. i find myself cheering on secretary of state john kerry's efforts to revive the talks. the palestinians are dysfunctional and divided. for its part, the israeli public have largely given up on the prospects for peace and new political groups like those led by naftali bennett flatly oppose a two-state solution. but there are people in the party that could push the negotiations forward. many israelis

stm clouds swirl around meredith whitney and her advisory group. the word on wall street and we've got the inside scoop. >>> and "who made money today?" here speculation that a certain billionae will invest in their company has them seeing dollar signs. not sure who it is? stay tuned to find out. even when they say it's not it is always about money

storm clouds swirl around meredith whitney and her advisory group.ord on wall street and we've got the inside scoop. >>> and "who made money today?" here speculation that a certain billionaire will invest in their company has them seeing dollar signs. not sure who it is? stay tuned to find out. even when they say it's not it is always about money

. >>> meredith whitney sounds alarm bells saying it could have after shocks in the minh moouni.cuss it after the break. >>> and the heat map, you see the tone across european markets, we're tracking in the green, up .6%. so around the peaks of the session so far today. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪ a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ >>> let's look at how u.s. futures are shaping up. it looks as though we w

then wall street wizards meredith whitney explains why detroit is just the beginning. dean baker disagrees entirely. also what in the world? we have created a new economic time bomb, except its under ice. i'll explain.

we're going to change liz's name because of citigroup to meredith whitney. jason pried thank you very much. scott, we'll see you in a few minutes when the s&p futures close. liz: oil was sent to a 15-month high yesterday. today however is a very different story. we'll tell you what happened and where the market in energy is headed. two top on lates -- analysts duke it out in our street fight. that's next. adam: china's economy may be starting to slow down but it is not just chinese companies that could actually suffer. we'll break down specific stocks and sectors at risk. we'll help you protect your invests. >>> we want to hear from you, the smartphone war is heating up as nokia unvales its new phone and google preps for the launch of its new motorola x. who will win the smartphone wars? log on to facebook.com/afterthebell an we'll read some of your answers later on. ♪ [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transm

then wall street wizards meredith whitney explains why detroit is just the beginning.ve created a new economic time bomb, except its under ice.

meredith whitney came on the show last week sounding the alarm and while she avoided naming specificoit will likely be the first to come. business leaders r looking for california for any cracks. richmond seems to be on a path to invoke eminent domain so some can continue to stay in their homes and pay taxes to the city and sell mortgages for less than they are worth. it's an extraordinary move and shows how desperate things are right now. this is not just about moving the borrower into a lower rate mortgage. the borrower will have their negative equity forgiven. the holders would absorb the credit losses. this keeps people in their homes paying the property taxes and that is the whole point. this is a system of the disease of debt that's spread across the country. we don't know how far along that disease has progressed. it's sure something to watch closely and we will on "closing bell." actually we ended flat today on wall street after a wild ride all day. we had selling taking the impact out of the positive territory. nasdaq was the winner up 17 and the s&p 500 tonight barely posit

and meredith whitney, author of "the fate of the states."at has been bothering me, actually, it hasn't been bothering me. one of the things i've been thinking about. does anybody save money anymore? i was actually in a physical bank the other day because the atm didn't work. does anybody save? >> no. i mean, some people save. but not enough people save. those who do save don't save enough. we know that about half of the country couldn't come up with $2,000 if they needed it. they're quote/unquote financially fragile. which is a huge problem. because if the roof starts to leak, if your transmission goes. you have basically no choice but to put it on a credit card. ed me ka expenses drive more people into bankruptcy than anything else. >> that's the disconnect, right, between new york or the northeast and the rest of the country. in the northeast, there seems to be -- the socioeconomic order is much different than indiana or illinois. we talk all the time about the retail investors not investing. if you're not saving, and then on top of that,

safe anywhere and now we are learning that lesson again in the municipal bonds, and we have had meredith whitneyo back to revisit it. we will take a look at the credit ratings all over again. >> and credit ratings in particular, art, because some parts of the market can't function without that stamp despite all that we have said about the ratings losing some of their viability over the last couple of years. >> that is why it is interesting to watch several of these suits beginning to move forward in the courts, because it will make the man who owns the stamp much more careful about how he uses it. >> good point. art cashin joining us here on the floor on this friday. art, thank you very much. >>> if you are shopping for a new home, there may be a new way to get a bigger mortgage, and we will tell you about that. and while you are shopping for a home, you probably need a jet. there is an app for that and that g-6 is waiting. we will talk about that in a mome moment. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new