mr. bernanke stayed perhaps longer than he intended to. what are the implications if mr. ink miss yellin would get that appointment or not? >> well, i'm a tiny bit surprised by this because i had a hunch that bernanke might stay on just a little bit longer to run the end of the experiment. we are in the midst of the biggest monetary experiment in the history of the federal reserve. it's all ben's. >> you would think he would want to finish? >> that's my hunch. if he is going to go we have to look at tim geithner as plausibly a safer bet than janet yellin, but, you know, this president likes to appoint women and that's got to be a good thing. >> market implications of that? >> i think we're already in for volatility even if ben bernanke sticks around. >> okay. >> to have somebody new and untried in the job with communications so sensitive, i think that has to increase the volatility risk. >> next topic, we did the yahoo! finance.com on whether mr. bernanke has run his course at the fed. 41% said yes, we should leave now and 36% said he should superadvise the tapering of the

mr. bernanke and others. bring in katie stockton, managing director and chief market technician at mkm partners. jack bouroudjian and cnbc's own steve liesman joining me on set also. we have jim la camp, senior investments of ubs. almost lost you in the teleprompter, no way. >> you heard my take. what say you? >> i think you and bernanke actually agree. i think he's saying he's going slow and i think it's very interesting that bernanke said all of the things that you said he should be doing, and the market heard i'm raising rates, and i don't know to what extent -- there's an expectation, a right amount of expectation that the market's going to hear what he says. >>ia, but he said -- let me just go into this for one second. >> go ahead. the way he did it, in other words, people are figuring out when is he going to slow down bond buying? is it going to be this month or next month. what he did was give a one-year plan that could be shorter and a 7% unemployment threshold. >> we have not heard that, steve. >> ye

mr. bernanke.ive you the preview how to trade whatever the fed does say, when we come back. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. [ male announcer ] with wells fargo advisors envision planning process, it's easy to follow the progress you're making toward all your financial goals. a quick glance, and you can see if you're on track. when the conversation turns to knowing where you stand, turn to us. wells fargo advisors. >>> just over, one hour to go until the fed news conference. we'll be covering it live here on cnbc. what sectors of the market should we be watching closest, both now and post fed? doc? >> la

mr. bernanke? >> all was on one side and mr. bernanke is going to be as conciliatory as possible, that he's gotten what he wanted, that essentially let's get a little bit rise up in yield but not too much. you've got to get a gold locks scenario for bond yields, slowly moving up, but you can't let it get out of control. >> that's true. >> can't let it slip away and can very easily slip away. >> what they are afraid of, instead of 2.2% of the ten. >>> suddenly something happens. >> and it spikes. >> and we're at 4%, that's too fast. >> that's too fast indeed. >> thanks, bob, very much. to gold where prices are closing right about now. sharon epperson is there and is tracking the action over at the nymex. >> traders here talking about what you and bob are talking about. everybody is waiting to see what happened at the fomc meeting tuesday and wednesday and, of course, the press conference afterwards will be watched very carefully as well. we are looking at gold prices right now closing right around 1,38 or so an ounce, down $4 an o

mr. bernanke.ck market goes down no m matter what he says, and i know it is cynical, but it is the stock market. up two days in a row, and the dow is two points away from a historic high. and two, a lot of people think that the market is weird so that anything he says can be spun negative ti. if he says to stay the course, keep buying the bonds, they don't want to hear that, because we are primed to move to tapering, and if he says tapering or the people interpret it that way, people on the sidelines will be worried about that. so people feel that we could drop 100 to 150 points after he talks no matter what happens. but the question is how we close, and that depends how the adults react to things here. and the truth is that the bonds have hit historic highs, and that is what is motivating at this point. you were talking about bonds and bond etf, and looking a at the vanguard etf, the biggest in the united states is down 2.5% in the last month and a half. that is what the yield is. already you have

mr. bernanke is saying, china's economy is weakening.mi down a nine-month low, much lower than what we saw in may. eunice has the details for us in beijing. eunice, two things, what does this mean for the growth rates and what kind of response might we get? >> well, right now a lot of people are just talking about how we're seeing the chinese economy slowing down even further. these numbers that we saw today are showing that there's a contraction in the manufacturing sectors. a little bit worse than what people expected and what people are focusing on mainly is a pronounced fall in new export orders. a lot of that is just reflective of the fact that we're seeing a weaker demand globally but also some weakness at home. now in terms of the policy response, there are a lot of people wondering what the government is going to do because up till now, over the past several months we haven't seen the government really step in at all. they've been allowing the slowdown to happen. there have been a lot of thoughts that the leadership is making goo

mr. bernanke to explain what he would do, than to explain how the markets would react. let's look at the taper tantrum. the fed came out and said the downside risks to the economies have diminished. that's certainly good news. the economy is improving. then they went on to say, mr. bernanke reiterated, the fed may taper bond purchases at the end of the year and finish by mid-2014. that was a little more flesh on the bones of their plan there. that was the important part of that. stocks and bonds dropped on that. the dow jones industrials average. we have ended at the lows of the day, down about 200 points in the dow. that started dropping -- even though we were down before 2:00, the slide accelerated as mr. bernanke began speaking at 2:30 on the press conference. bonds took it on the chin. take a look at the agg. this is the bond etf, the largest one that's out there. that's an aggregate of the total bond market. this is now essentially sitting at a two-year low. let's move on. low inflation, not great necessarily. for gold. gold took it on the chin as well. take a look

mr. bernanke will say? how do you think we'll trade through it?o kick in over the next four, five, six months, as many people are. i think that may be choppy for equity markets, but we're recommending to clients that they buy into that weakness. >> okay. when do you know, when do you know when is the weakest bit? >> it could be any time this summer. it could be any time this summer. but if we see 5%, 10% off global share prices, which we could see, you know -- shares are volatile. we've all got to get used to that. >> right now looking at value asians, u.s. or europe? >> actually, we prefer emerging markets. so, we prefer the emerging markets asset class, deeply out of favor at the money, not too much hot money in it. >> are you saying that the weakness in emerging market currencies that we've had because of the rising dollar and funds coming out is -- >> sure. i'd be more worried about it for emerging market bonds than equities. emerging market equities trade on a sort of ten-year relative low against the rest of the world. we see value there and

mr. bernanke and how the monetary policy, the cheap dollar, hurting or helping ups? all i think chairman bernanke has done a great job of getting us through the financial crisis, getting us to where we are today. you know, he is is somewhat like teaching a child to ride a bike. you hold on too long, the child becomes dependent. you let go too quick, he crashes into the hedge. the job the chairman has today is that balance. when's the right time? i think that he probably has a bert view of that than anybody else out there. i would expect them to hold on to the child a little bit longer but we do see tapering coming down the road. currency for us is something that we hedge our currencies, probably our biggest exposure is europe and we look 12 months ahead and try to hedge that to protect our earnings over there. i wouldn't say it has a dramatic impact over the long-term. as sort after zero-sum game. >> let's talk about not only monetary policy or fiscal policy right here at home. we see a congress that essentially has failed to act on tax reform. several ceo's like your

mr. bernanke was referring to.hink he's kind of caught in an interesting catch 22 here in terms of the communication that maybe he thought he would -- the words he thought he would communicate or the meaning he thought he was going to communicate and actually what was interpreted. >> right. >> david, why are we not celebrating the other part of the statement, and that is the committee continues to see downside risks to the economic outlook, but the committee has seized the downside risk to the labor market as having diminished since the fall. why are we not celebrating better economic and more improvements in the economy in. >> good question. >> maybe it's a little bit of buy the rumor and sell the news. we had the market up the last couple of days. we had to expect there would be this kind of reaction when he finally laid out a pattern, which he did today, or a framework, to end quantitative easing. so that genie is out of the bottle. that announcement has been made. it's been articulated. this is a one-day move i

mr. bernanke. he does not control long-term interest rates and he has this economy 100% addicted to his credit creation and the acid bubbles he recreated. if we are in for a lot of trouble. i'm selling stocks here and shorting stocks here. we are nowhere near the level of interest rates that they will go to if he is really going to wipe out qe. i think 3.5, 4% on ten-year and that's just for starters. >> what kind of a market activity are you expecting? you want to short this market, sell stocks? how much damage further from here -- >> a lot of people say, i got my mortgage -- when i first got my mortgage in the 80s, it was 12%. s&p was 660 not too long ago. if the s&p lost 6 of 00 points, guess we shouldn't care. you can't look in the past. look at the level of the crease from where it was. >> clearly, this is the greatest monetary experiment in history. in terms of coordinated global effort on the parts of the banks to devalue currency. that's what we are doing right now. . >> so what do you do,

mr. bernanke yesterday. let's bring back and phil flynn. middleman -- mill not down.ou're going with that the right now is. >> it has to be, and there are a lot of reasons for people to be dumping this off. even if you just had a margin call us, you are worried about inflation, but you really cannot be long on metals right now. you look at what the fed is doing. it is really dollar bullish right now, and people, i don't think, realized. all of the market does not seem to realize that tapering is like raising interest rates and a negative rate environment off. very bearish commodities, bullish dollar. you add to that this burgeoning credit crisis that you have, polity in china right now if. china, of course, your biggest consumer of these precious metals. take copper. we saw the biggest dropoff in the london metal exchange copper -- the biggest bill in many, many years. you add to that the physical demand that is coming out of asia, and that drives up another reason longmeadow's does as well. cheryl: somewhat testy about copper. i am wondering if there is another side

mr. bernanke. not that his heart isn't in the right place, but he's written these aggressor analyses and mit articles farther than he should have written them. pretty soon, as steve said, jay leno's jokes are going to move the market about a taper. i just think at some point this is doing more harm than good. i personally don't think it's a communication problem. i think these programs have run their course and exit in a very calculating -- the way he said it, different variations of qe. it will end at the end of the year. let's be done, black and white clear about it. >> a lot is riding on this meeting, bob. he's got to say something on wednesday. >> i think things will stabilize once the fed makes it clear there is unlikely there will be any dramatic end to tapering. it will be very, very slow. most people have mid-2014. there are numbers all over the place. >> you don't go from 2% to 10% overnight. >> who knows, it could even go up between that, and of course everybody seems to understand that i

mr. bernanke gave that testimony, and we got out some of the minutes as well. want to put up the dollar/yen relationship, another factor moving stocks in the last couple of weeks, and as the yen has been strengthening, that also gives gyrations to us. this afternoon, last in the afternoon, you see the yen strengthening. as this chart moves down, that's a sign of yen strengthening. that happened late in the day, and that's when we took another leg down in the market. a couple factors affecting things overall. finally, i've been asked today why citigroup is so weak. a number of people have asked me about this. well underperforming the market. you can see down there, down more than 3%. bloomberg had an article out talking about potential losses and currency exposure citing a research firm, and i think that's probably the main reason. there you see more pictures of explosions and fires in taksim square. i've been in that square. it's a beautiful square, and it's quite a scene to see that kind of -- that kind of fire in that particular square. >> absolutely. turkish

mr. bernanke will be very careful tomorrow. he has a 50-basis point rise in yields in the 10-year.e's happy with that. pricked a few asset bubbles in japan. but now has to be careful. he's going to be very careful. by the way, we're 90 points from a historic closing high on the dow, believe it or not. somewhere right around 90 points away. >> yeah, we have a big week. we have the lottery balances at the end of the week. you'll start seeing some of the money managers using the rallies to get into the positions for this -- toward the end of the week for the russell rebalances. >> you think the end of day looks like it's sustainable here? >> yeah, absolutely. i don't think there's any reason to give up today, with all of the headlines out of brazil and, you know, the headlines of the nsa, if it's not going to fall from that, i don't know why it would fall now. >> on an authentic move by the fed, other than the verbal tapering we're seeing now, an authentic move, i would not be surprised to see the major indices to sell off, but that would be a buying opportunity in the long run. >> al

mr. bernanke is saying. tapering is not going to happen that quickly. so markets have a better tone. i'll tell you someone who will be feeling the pain, jon corzine, the market regulator, saying we are leveling charges against you, this over the use of a billion dollars worth of customer funds. we talked about this story but the former new jersey governor is facing charges now over what happened at mf global, brian. >> geoff, a lot more people are doing stuff mobile, making payments and soen and so forth, but the truth you need to know, it ain't free. >> that's the issue, isn't it? a lot of people got used to free banking. the banks are looking for ways to try to rebuild their balance sheets. it looks like mobile banking is in the cross hairs on this one. and they're going to start incrementally i think introducing fees, 50 cents here, 50 cents there if you want to check on your money. birmingham alabama regents financial brought a tiered payment structure out, so it looks like which ever way you go on this story, some of the banks are going to start taking money out of your pocket f

mr. bernanke would be more dovish. some people feel that statement being more dovish in itself could be reasons to sell. could be reasons why we're down, no matter what happens. you see us down to the downside here. remember what happened on may 1st. the real big moves happened on may 1st at the last fomc meeting and since then the s&p 500 has been up. there's market since may 1st. s&p up, bond markets down. bond markets moved down again on this announcement but the long-term bond market down significantly. >> bob? >> yeah, steve. >> can i push back and say, hey, i'm telling you, the fed is saying downside risk to the economy and the jobs are diminished. we'll have lower unemployment and lower inflation, probably the same growth and maybe a little less qe in the coming months. is that really so negative for stocks at the end of the day? >> that's a great point. >> i don't think it's negative for stocks at all. i simply think the market has gone up in the last two days rather dramatically and i think a lot of people hav

mr. bernanke says we might stop something in the future but nothing is happening right now. >> because we'vendicated for the first real time that we are taking the drugs away from the patient. that's what's happened here. this is all about whether we can handle it. it's sort of -- it's kind of like antibiotics. you are supposed to take them to a certain point and then stop taking them before they finally kick in and start to work. it's hard to gauge when you are supposed to stop with the medicine. and that's really the question right now. the market clearly feels that the economy isn't out of the woods yet and the economy has been really quite dependent on the fed. we will see, but right now that's -- that's what's happening. by the way, the flip side of this whole argument is that the fed is only doing this because they think the economy, the real economy, forget about the market economy. the real economy is supposed to be getting better. and he's indicated that there's a couple of different metrics that he's looking for. employment being one of those metrics. and he's not going to be doing

growth has been discussed in my speech in my remarks and the reaction to the statement of mr bernanke statements of this kind are expected but i just. would need to happen. at some point if you cannot just conflict with it into the market without end up without addressing the fundamental tasks that need to be addressed in order to correct the situation and what president obama has been able to do on the budget. very good and certainly that he was able to avoid the fiscal cliff. one and he can only correct three and that's very much to his credit was that it is not a right to have the world expecting just what is going to happen going from one fiscal cliff to another there needs to be a fundamental decision and that always serve adjustment needs to happen at some point it was not a surprise for us i think it's a direct it's a decision going in the right direction but need to get out of this situation and show happened over the past years the burden of the federal budget needs to be reduced. other obligations need to be reduced and president obama spoke quite frankly about this during t

it's not just the markets went down somewhat after the announcement of mr bernanke a gold also collapsed why did it happen and i think that people were expecting the strengthening of the dollar for the benefit euro and some regional currency that would produce changes also in the commodities market and we should take that into account in our current economic policy and. the question that. madam chancellor. importance not only for the euro zone but also for us i said in my speech that we need to find a balance a combination of affective action in order to address the strategic tasks and also current operational tasks in principle it's similar to what is happening in the euro zone addressing unemployment in the east and south of the euro zone and stimulating growth as a whole it's a similar kind of balancing similar tasks even though. i can say. our economic situation is healthier and employment rate is five point five percent it's a historical minimum in our country. we have no debt. and practical to the external debt. of the russian federation. two point five percent two point five perce

but mr bernanke you doesn't know much about markets he doesn't know much about currents or interest rates or ned so much and they are the is never ever been right about any of this public or doubt the market is not going to let this lead you see what's happening in japan i mean those markets collapsing because people suddenly realize wait a bit this cannot go on forever in europe england it was people now realize this is totally artificial just tried going to last whether it in this year or next year it's called in because the market side there let it happen now hopefully if you want to call it the central banks around the world got their act together and stop it that is not good for the world or even that they are not smart or that the market will force them to a bench. after the break we'll continue our interview with jim rogers giving his a take on the far east then bob being us and i have a tasty when you have bad policy tapering top and you don't want to miss out on. technology these. developments. as you are. let me let me you're going to let me ask you point. one this morning it's

mr. bernanke's next move.bet on housing, but is it bullish or bearish. we'll tell you coming up. and netflix closes its biggest content deal ever, but one of our traders is saying sell on that news. simon, we'll see you at the top of the hour. >>> in the meantime markets surging across the board this morning as we get ready for the big fed meeting this week. art cashin is director of floor operations with ubs financial services. art, what's going on here? >> i think we've got a two step move. the beginning of this i think was further calmness in tokyo and japan that spread into europe. andhe asian markets. that got some of the buy the dippers out since we had sold off on friday. but before they could get rolling, we have a lot of speculation around that bernanke is going to use that press conference to maybe expand or expound upon the targets that the fed has. he probability may say something like while the fed is happy that we've made some progress in one of our targets, which is payrolls and getting people b

mr. bernanke to become more aggressive and take the pedal off and put pressure off the pedal and start to taper a little bit. faster. i think that's what most people are worried. we think it's nonsense. fundamentals drive stocks and we're in the mid of a grand transition from dependency on monetary policy to dependency onfuls and we think there's volatility along the way. >> you might be right. volatility is something that certainly real normal investors like me and people i know are going to care. terry, i want to talk about who's invested in the market and their 401(k), nest egg, retirement. look at savings numbers for the beginning of the year you can see the average 401(k) account hit a record high of $80,900. people 55 and older, they also hit a record high, $255,000 on average in retirement accounts. they had come so far since the deficit of the recession. if there's lot of volatility and fed getting how does someone with a retirement account like that protect themselves? >> that's a very good question. 401(k) retirement plans are designed to accumulate and grow wealth. it's the inv

mr. bernanke in female form -- >> i would say, mr. bernanke on steroid in female form.ood for wall street but even if perhaps she is completing the president as tracy says, potentially good for the president because she would continue free money for the economy? >> not, this is, we're getting in dangerous territory here. if you keep printing money there is pointtwhere you create massive, massive asset bubbles some people say still exist. when the bubbles unwind, when i say bubbles, people buying riskier investments that blow up like in 1994, orange county bankruptcy, orange county was invested in risky assets that could be one thing that holds her back. one thing we will have, and i think that is pretty clear, continue ages an even more so of the accommodationist policy of ben bernanke. using monetary policy to stimulate the economy. one of the tragedies is that the obama economy will not be able to stand on its own. what the market is saying right now, if it does have to stand on its own, if you take bernanke at his word, remember he will not be here next year, remembe

mr. bernanke's bond announcement was poorly timed.senior economist said mccarthy will be joining s on this dissenting opinion. adam: mortgage rates currently hover around 4 percent, but that could all change given you know who. we will take a look at what happens if rates rise too quickly. ashley: speaking of up and down, we want to take a look at the dow. a lot more green on that screen then read, and that is a good thing. ♪ ♪ ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mcedes-benz you've been burning for the smer event, going on now at your authorized mercedes-b-benz dealer. hurry, before this opportuty cools off. how d is the oldest person you've known? we gave people a sticker and had them show us. s have known someone who's lived well into their 90s. and that's a great thing. but en though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ [ slap! ] [ slap

mr. bernanke. we know about the despaisparate voiceses within the fed and moha mr moh mohamed put it in context. >> what's your trade? >> you stay short. he talked about the fragmented disfunctional world. it's not that far and doesn't take that much for markets to dislocate. for now, doesn't look like the u.s. equity markets are going down. i'd stay short. >> you have to stay long in the dollar. you have much more hawkish policy or long, dollar is down. >>> aerovironment, up. and apollo, slightly below previous expectations. down 3.5%. >>> bouncing back from monday's loss and marissa mayer on a conference call for the first time. >>> and getting strong data for the homeowners, but is today's bounce just short term in nature? tom joins us live, next. tdd# 1-800-345-2550 hours can go by before i realize tdd# 1-800-345-2550 that i haven't even looked away from my screen. tdd# 1-800-345-2550 ♪ tdd# 1-800-345-2550 that kind of focus... tdd# 1-800-345-2550 that's what i have when i trade. tdd# 1-800-345-

mr. bernanke, made yesterday -- i thicket was an overreaction to the fed. if you listen carefully to what he said, he also -- he based a comment that his six and a and f percent level of unemployment was more of a guide than it was an absolute floor. >> neil: we should explain, before he would really be taking his pedal off the metal it would have to be because unemployment had gotton to the point that things were dramatically improved. now, we're nowhere near that -- what do you make of that. >> he also pointed out in his comments that the low labor utalizeation level may cause the fed to change they're point of that and change that number to 5-1/2 percent if necessary. number seek to pick up on that' comment. they heard what they wanted to hear -- >> neil: that is true. you're an inenpsych low speeda. one thing i hear a lot of people say is that no matter what, whether interest rate goes higher or a lot higher, they're not going to stay as low as they are but perspective is everything. to older americans, these are already obscenely low rates and i rememb

bernanke. in the clip we are getting ready to show you, mr. but 90 -- mr. bernanke answered a question about where the optimism for the economy comes from. this is what the fed chairman had to say. it is the case -- [video clip] have gone through a period in the first half of the year was pretty subdued growth. i would like to hear you explain where this optimism comes from and how confident you are that these expectations are going to be met. -- >> thedamentals fundamentals look a little better to us. the housing sector, which has been a drag on growth since the crisis, is now a support to growth. it is not only creating construction jobs, but as house prices rise, increased household wealth -- state and local governments who have now been a drag are coming to a position where they no longer have to lay off large numbers of workers who generally speaking, financial conditions are improving. the main headwind to growth this year is, as you know, the federal fiscal policy, which the cbo estimates is something on the order of 1.5 percentage points of growth. g

mr. bernanke's congressional testimony.ve been debating whether or not there was some kind of inflection point. at least short-term, there is an inflection point. not only in the united states, but globally. japan's down 16% since the may 22nd meeting. the s&p 500 hit an historic high on that day. it's down 4.4%. the uk, brazil, i could go on and on. global markets have been weaker since that day. back to you. >> thanks, bob. let's get more on today's sell-off from two traders in the trenches. joining us now, gordon cheer locke and ben willis. gordon, what was it like on the floor today for you. tell us about some of the behind the scenes activity? >> maria, it was different today than it was on friday. that was precipitated by the liquidity event. a lot of fellas got into japan, watching it say, this is great. now they're starting to see that turnaround and say, this is great. so one thing leads to another. one thing, we've seen a little bit of reversal in the ten-year, gotten up to like 10.18, now that's turning around. a

mr. bernanke taking away our interest from our savings account, some of us have to look to the smaller energyike ultrapetroleum or rex energy or something on those order. >> right. >> caller: i wonder if you can discuss small energy plays. >> too risky. ultrain the dumps because it's nat gas play. if you want nat gas you have to go capital on gas. eog as oil play is doing incredibly well. i want less risk now. you don't have to pay that much to get really high companies after this selloff. i thank you for the kind words about me. go to mary jane in california. mary jane. >> caller: yes, i'm here. >> i am, too. what's up? >> san diego. >> okay. you beat the phillies last night. congratulations. >> i bought conocophillips a month ago. it's just gone down, down, down since. i heard you yesterday when you spoke about other energy stocks, and you never mentioned conocophillips. a week before you praised a very finely run company. >> right. >> you mentioned the fact that six weeks ago, in fact, i sold a bunch of stocks, including your favorite, bristol-myers. >> well, mary jane, yesterday's piece w

mr. bernanke said if the economy does not improve along the lines that we expect, we will provide additional think the markets are worried about something else. first of all, interest rates have been rising now for a year. the ten-year treasury note and 30-year treasury bond yield bottomed out last july. so we've been in an uptrend in interest rates. then, as i maintained for a long time, the chinese economy is much weaker than the official statistics suggest. my view would be that at the present time the chinese economy at the very best, the very best, is growing at something like four percent per an um and without a huge credit expansion there would be no growth at all. the other emerging economies are essential flat. singapore has relatively honest statistics tissues like other developed countries and oh, emerging economies. >> you've been quoted as saying that you are personally buying gold as well as gold stocks. when you look at the selloff across the board, across asset classes including gold, does that make you question the performance of this particular asset class given the market

mr. bernanke's says if you're part of the lucky minority with the ability to choose, remember that moneypossibly not least, he advises, call your mom and dad once in awhile. a time will come when you will want your own grown up busy hyper successful children to call you. also remember who pay your tuition. liz: good for him. all right. we asked you on twitter and facebook where you think the worst place to put your money is right now. a bank savings account. but. >> not a good place to park your cash. also to look for shares we will cover this, the stock plunged after being halted the company announced it would lay off 18% of the work force and also or guidance for the second quarter and fell about 12%. >> nominee with melissa frances is next. >> the irs seeks to a new low. it is hard to believe but $50 million on employee conferences between 2010 and 2012 including motivational videos like the cupid shuffle. can you make of madness stop? $1 billion or best how huge offers through the era of sub billion dollar buyout is upon us again but are the company is really worth it? who made money

mr. bernanke. esident obama said bernanke has already stayed a lot longer than he wanted or he was supposed to. ben bernanke's made no secret of the fact he wants to go home. >>> it has been 684 days since u.s. lost its top credit rating. what are we doing to get it back? there is more good news on housing. the government report shows the pace of home building rose 7%. >>> our fourth story "outfront" evidence mounting tonight against ex-mob boss james known as whitey bulger. prosecution star witness and former hit man john martorano took the stand again today. for the first time he said bulger wasn't just an accessory to murder but the former head of boston's irish mob pulled the trigger. that's a significant development here and in a sweeping federal indictment bulger is accused of drug dealing, extortion, and 19 murders committed while he was a prized fbi informant. "outfront" kevin cullen, a reporter for the boston globe and author of "whitey bulger: america's most wanted gangster and the manhunt

mr. bernanke. a little stability in the system but what i want is pushing in 150 to 250, 250, 260 today, if normal relationships hold up it's going to 3.4% to 4%, the nominal growth of gdp. that will require major stock market adjustments, it really is. >> and your point the 1.5 to 2%, the 100 basis points, never happens in a four-week stretch. it's not the magnitude of the economy. our economy can live with a 3.5 ten-year. if it happens between now and 2014 then you have a major re-calibration. it's the pace at which things happen, not the ultimate number we get to. >> i agree and that's why i don't think the correction is over. the world is not coming to an end. i've been optimistic, i'm not really a bearing but i'm saying we're correcting and i don't think -- not government bonds, but you know what? i would be ought of stocks right now and wait for the scenario to in puck in. >> favorite investment. >> oracle doing some interesting things. just did the hookup with microsoft. actually going to do

mr. bernanke was badly miss represented at last week's news conference so i would be a little cautious aboutping into an adjustable rate because it adds more risk and you're stretching really far. >> the average retail investor might get a call from the bank or go into the bank looking for a loan and it's in the bank's best interest to sell them an adjustable rate mortgage, an a.r.m., from cnbc and following what rates are doing, hang on, not something i want to be do, but how many people will be sold by the bank to lower your monthly payment and this is a good thing for you? how many people will get screwed. >> the problem is the refinance ing ability five years down the road. they will get a short-term gain and taking big risk. my guess is that most people will continue to do the fixed rate and a portion of them will do the a.r.m. and a portion will back out of market. they know they captain afford it so the initial response is to jump in and do it and september and october, these rates, these levels are rising, you're going to see a slowdown in sales and definitely a slowdown in price inc

mr. bernanke and we'll get back to your money and all of that in just a moment.still had major political news on the immigration bill and that's coming out of washington and the farm bill, wow! they stopped a trillion dollar farm bowl and how cool is that. we'll get to all of that with an expert commentator in just a moment. you hurt my feelings, todd. i did? when visa signature asked everybody what upgraded experiences really mattered... you suggested luxury car service instead of "strength training with patrick willis." come on todd! flap them chicken wings. [ grunts ] well, i travel a lot and umm... [ male announcer ] at visa signature, every upgraded experience comes from listening to our cardholders. visa signature. your idea of what a card should be. visa signature. in parks across the country, families are coming together to play, stay active, and enjoy the outdoors. and for the last four summers, coca-cola has asked america to choose its favorite park through our coca-cola parks contest. winning parks can receive a grant of up to $100,000. part of our goa

mr. bernanke and with others is an effort to try and ignore the fact that we just can't keep on spendingtake in. >> let me switch gears. i want to talk object this irs scandal. there is an unconfirmed story that is developing among the major news networks, sir, five of your top fundraisers were audited during the campaign, two and three times. and that they had never been audited before. do you think the irs was targeting you and your top backers? ed. >> well, we know the irs was targeting groups that were conservative groups. we'll learn more about whether people who were supporting me were being targeted. i don't have the facts on that yet. i'm sure as time goes on, we'll learn more. i think there is no question the american people rightly believe their government has broken trust with them. we have all given all of our most sensitive information to the irs. what assets we have, how much money we've made. we've given them those pieces of information with the clear contract that they're going to keep that private and not politicize it. and what we found out is that the irs has politiciz

mr. bernanke will be stepping down soon.are guessing the next chairman of the fed will be janet yellen, currently second in command. she's a former cal berkeley professor, still has a home in the east bay as well where xi lives with her husband, also a professor at cal. were yellen to become fed chairman, not only would she be the first woman to do so, arguably the most powerful woman in the world. angela merkel would have the argument about that. >> that's an argument i'd like to see. >> yes, ms. merkel the chancellor of germany doing a good job. >>> 5:14 right now. the most powerful woman in the weather -- >> you better watch it here. you're sitting between two of us. >> saying in the weather. i have the most powerful women every day. i'm blessed. >> we'll get blessed with gorgeous weather. i'll hand it over to laura any day. let me put that on the table. 57 to start right now. a beautiful start in novato, 55 degrees in concord. we do have pretty significant wind speeds out there. west 1459 miles per hour. they'll start to

mr. bernanke was giving his testimony and talked about the possibility of tapering off, all of these emergingressure because interest rates have been moving up so there's your key point. higher interest rates, hard on the emerging market and global economy overall. >> thanks very much. >>> uptown to the nasdaq where we have seema modi. >> making a little bit of a comeback. still down 22 points on the day. google a focus after announcing the acquisition of waze, an increasingly popular mobile app that allows you to share traffic and roadside information that helps users find the most efficient route to get from point "a" to point "b" and facebook shares in focus. ceo mark zuckerberg will be put in the hot seat. the compensation program is expected to be one of the topics discussed at that shareholder meeting. >> thanks, seema. >>> to the bond market and rick santelli is back in the action at the cme. how do you look, post-auction, rick me. >> the auction sticks out and you can see 33 minutes ago we had a bit of a move upward in yield. the same can be true for 10s, but also notice on 10s it's n

mr. bernanke gave his testimony in congress, we've had a jump in volatility. look at this, a simple way to look at volatility, but up until may 21st the dow swung at a high to low 109 point. that was an average. since may 22nd. 184 points and today is about an average day. just a more volatile situation, and it's particularly volatile in emerging markets. two questions i get every day. what can i do with my bond funds and what do i do with my emerging market etfs because there's a lot out there. the eem, a big one, we're down 10% since about may 22 nd i mean, that's a shockingly big decline, and the volume has been huge in the last two weeks, and the same with international bond funds. emerging bond etfs were very, very high in the second half of last year. here's the big one, and this is why. that's down about 11% in the last couple of weeks, so, unfortunately, a lot of people are heading for the door, and the question is this a better time to buy right now or should you simply stay out? a very tough call and it depends on how you feel about largely the globa

mr. bernanke gave his testimony and the minutes came out, the s&p was at a historic high that day, down 2.5% at high-yield bonds, long-term treasury, corporate bonds, twice the decline that the stock market has. in other words, interest rates have risen. these higher rates are hurting not just the u.s., but emerging markets are having a very tough time. i know we're all riveted by the pictures in turkey, but, folks, we've had problems with emerging markets for several weeks now, since may 22nd. look, philippines, thailand, india, i'm putting up some examples here. others are even worse in emerging markets. the other problem is over in japan. the yen-carried trade had hugh leverage. it's not about the fact the yen has been strengthening. today, you see it's strengthening. it's the leverage has been enormous. as they unwind the trade, there's collateral damage all over the place. put it up for the last month. there you see the yen versus dub the dollar versus the yen. as it goes down, the yen is strengthening, an that's what's causing a lot of the problem. that's a decline of about 8%, 9%, mar

mr. bernanke last week and how the fed governor today in dallas -- >> right, richard fisher. >> -- just tothis will be a transition period. but it's not -- it's not like the rest of the marketplace hasn't been expecting it at some point. i agree with you, maria. this adds to the volatility today. it adds to the uncertainty. but, you know, from congress' standpoint and washington, what we need to be doing is we need to make it easier for entrepreneurs and investors to go about hiring people, to create jobs. and when you have things like the healthcare bill hanging over and the unexpected impact on the costs, bottom line of businesses, that's a problem, we're trying to address that. when you have the aftermath and regulation of dodd-frank hanging over the credit markets of this country, credit is the lifeline of this country, and we need to make sure we remove any impedestrianments that may be in the way from the regulatory actions of the obama administration. >> how do you defend dodd-frank at this point, when we know more a than half of it has not been implemented? this is one of the issue

mr. bernanke's interesting week for us.we're seeing the week end, we're starting to see volatility come off. and i think that people will take this weekend and they're going to start to digest what happens over this week. we're going to see a bit of a e divergence next week. i think people will wonder where the safe haven is, and people will look at the equity markets, very specifically the u.s. equity markets. >> so would you expect that great rotation that everyone talks about, then, ed, in terms of money coming out of bonds and moving in to stocks? is that still a possibility? >> i actually do believe it. and i think it's going to take a little bit of a pause here, maria. let's give it a couple of weeks. people have to digest this news. what's very interesting to me, i think, is people need returns. they're going to have to decide where do they get these returns from? what's coming up in july/august is earnings season. corporate buybacks have been very strong. we're seeing very interesting signals coming from the forward

mr. bernanke is going to say rather than how the market will react to it. that's the wild card. steve is right. he'll talk about tapering very gradually, and he'll draw this thing between tapering and raising rates. we all know that. he'll emphasize that and what he's going to say. how the market reacts to that is completely different. a lot of people feel the market goes down no matter what end of the spectrum he emphasizes because of the rise recently in the last couple of days. >> where is it really going to go? right back to the 50 day where there's plenty of support. we've seen that. two or three times already and there's plenty of support. unless the bottom falls out, that's not the case. i think there's plenty of support. >> go ahead. >> go ahead, steve. >> i was just going to say, bob, we just don't really know in the sense that we don't know how much is real beneath this market and how much is all virtual and federal reserve, and i think that remains to be seen in the sense that we've had somewhat better economic growth. the earnings have not been i think the disaster t

mr. bernanke and company say could very well decide whether this rally lives or whether it dies. we're trading all of it at post nine with mike murphy, joe tear nova, josh brown and stephanie murph. what is the biggest week of the year for the stock market. >> we're off to a strong start, scott. i think you have to look back inside the technicals. you have the s&p got right through the 1640 level today and it's holding above it. i think as long as we stay above that into bernanke's announcement, it's a very positive sign. so whatter going to get from the fed in my opinion is just more of the same. there's not going to be a tapering in this meeting. i think that's pretty much clear. when does it come, whether it's going to be september. whether it's going to be early in q 1 of 2014, that remains to be debated. but the market is telling you above 1640, that it wants to go higher. >> is that true, joe? >> i disagree. i don't think you'll get more the same from the fed. i think the understanding is out there now, the investment banks were talking about it over the weekend. the fed is

. >> i can't tell whether it's him or maybe bernanke has said, you know, mr. president, i am -- >> my guess is it's bernanke. >> because by not answering, i mean, bernanke's done a lot for president obama. >> look, i think it's -- the job is bernanke's if he wants to stay and keep it, my guess would be. again -- >> we reported a year ago that he was sort of tired of it. >> that bernanke was. but it was weird -- >> i didn't think he would actually -- >> it was weird when he said longer than he intended to stay and maybe longer than he was supposed to stay. >> supposed to stay. >> that was a weird comment. i don't think he meant that that way. >> i don't think so. >> that way either. and you must not have been paying attention when i told you when you're like maggie smith's age in that interview? she said when you're getting old, it's almost as if you have breakfast every hour, and that's what -- because i wake up in the morning, you know, when i'm first trying to get up, and i really feel like i had just done it like ten minutes ago. >> is that why you don't eat

united states out the answer is nothing and so you have an economy that's trembling and even though mr bernanke and i watched his speech with every great detail in my mind he waffled he was careful he just vaguely interested that they might do less in the way of pumping money into the economy but we have such a fragile economy that that was more than enough to create panic and stampede that's a sign of the economy and a very dangerous fragile situation and that in a sense reflects what the reality is put aside the hype and the political posturing that has been so popular for the last twelve months this is the reality that we see now we have about a half a minute here to walk but if if something isn't done substantially are we looking at a credit at a crash or a disaster scenario here in the united states within a matter of months within a matter of years or is that an exaggeration i think that's an exaggeration but then again nobody foresaw what happened in the end of two thousand and seven nobody could have imagined the virtual meltdown of our entire credit system in the last four months of tw