he's not going to want to have done q.e. 3, i think. if he's down in the 70,000s, that's going to make him want to do that. >> is there significance to the san francisco fed president, he says in his words, pretty significant downside risks, open-ended stimulus could be a good option for the fed? >> right. that's both a communications and a numbers thing. the fed to this point has said, we're going to do x hundred billion of a program. open-e is ation that says we are not going to let this thing fall. what they're trying to do is get into the mind -- say the traders around the table here and say, you know what, it's not finite. when you fake a decision to go short, there is going to be the fed on the other side of that trade. if you think about the failures of the ecb, that's been paramount, in my opinion. they have made everything to be a finite program. all you have to do is wait until it works out. it's been a winning trade a lot. in the united states, it's not been a winning trade. in essence, most of the government bailout programs

even though they extended q.e. yesterday, it's probably not the last of it. >> don't you maybe wake up in the morning saying, how much lower can all these banks go? we talked about it yesterday. what is the real catalyst for a secular psychic or emotional change? in my mind, it's politics in the u.s. if there can be an agreement on tax policy or harmony going on in congress, that will change the world's mood. short of that, i think the central bank movements are diminishing reports. >> and bob's point a minute ago, there might be a trade in it very short term because people know you get a good headline out of the summit, it's good for seven days. and that's about it. one job that we know is not going away is the job to lead yahoo!. company reportedly considering h the hulu ceo. also interim ceo ross elevenlev. is it a coveted job at this point? >> you have to ask the question, what is yahoo!? is it a video platform, an information platform. they've pivoted so many times. scott thompson wanted to get in line with mo

is it just further expectations of q.e.? >> i think it's further expectations of q.e. f. you look at it, a lot of these earnings are mixed. a lot of the revenues are mixed. we have ge beat but also the revenue wasn't as good as expected. you have this mixed bag right now. we have mixed economic news. you saw it this week. it comes down to money goes where money is treated best. >> does it even matter why we raul as long rally as long as we rally? >> that's a great point. that's true. if the fed is going to offer stimulus and put it into the market, yeah, go back into the market. a great place to look is ebay. there hasn't been a lot of topline growth. ebay has had that topline growth. it's been a choppy market for the auction market but they've gotten through a lot of the headwinds. they had 14% topline growth last quarter, $16.2 billion in revenue growth f. you look at a company like that, i think -- getting 53% of their revenue from overseas and that market is really trending well. i think ebay is a tremendous place to look if you want topline growth. >> the dow is the

him to do and right now and the republicans are no better about it but the democrats are wanting more q.e. because they think that will help real like obama the republicans are opposed to it although if for romney becomes president the republicans will be all for q.e. so there is that aspect but it may be that the fed is slightly concerned you know they want inflation the break in this famous helicopter effect they want to increase the money supply for the benefit of the banks and the benefit of the government but even they are concerned about tomorrow. you know as ron paul pointed out today in the hearings they created fifteen trillion dollars of new money to bail out banks and governments in europe during during that crisis all seek gold and in secret we still don't know where their money went so even they may be concerned about inflation getting out of hand from their standpoint getting to be a hyperinflation i wish they would look back you had paul volcker polgar was a seems to be the least bad fed chairman ever he actually decrease the money supply he didn't just slow the growth of m

if they didn't have debt they get the q.e. is cash so they it's symmetric if exposed peoples in the same way there's no advantage to being in debt or being a saver now of course society is a loser in the sense that the assets which in the loans are going to be worthless and therefore they're going to lower income stream as well but they compensated by very large cash injection so hard to balance the two out it's not going to be not going to be straightforward but in this we do it with stock on the wrong side of an adventure awesome there you go thank you steve again for that of your feedback cameo now earlier this week we talked about this post about the quote unquote smartest man in europe an anonymous source talking about the decline in western civilization the debt caused was making big headlines we said why trust any anonymous man when you have smart very public men and women coming on our show talking about that very issue we had jim rogers on that day and renaissance said jim rogers is better than the smartest man in eur

i'm not going to give you q.e. to stop that. you're on your own. it's an election year and i'm putting the heat on you. >> i thought it was pretty strong today in nold fot foldin wanting the senators to do more right now, even though the fed doing more, whether it's qe-3 or more twists won't produce any jobs in the economy. it habit to date. and i don't see why it would in the future. but i think he was right to be tough in terms of his answers and i believe with lawrence. down the road, it won't happen, this meeting but if the numbers keep coming in and the fed does get pushed around a lot by current numbers, i think they ought to focus on a year out forecasts and not what happened yesterday. yesterday is only important if it affects where you think economy or inflation is going to be a year out. >> all right, let's look at this. if the numbers come rolling in badly again, the next set of numbers, jobs, retail sales, manufacturing production, the whole nine yards. we're going to get some housing numbers later this week. if the numbers keep rolling

it takes q.e. 3 further off the table. stock market is weak because it's going to take a few weeks to get used of that notion. but in the longer term, that's an excellent scenario. today, the dollar rallied because other central banks were easing. didn't seem quite as much like we had to. >> bad news is going to be good. bad ism numbers, the market rallied. anything below 90,000, i think it's a buying opportunity. >> what do you buy? give me a for instance? >> we like all state, the insurance place, pfizer, some health care. and we're just selling out anything commodity or energy related. keep the powder dry. >> there's commodity deflation going on right now, is there not? >> there is. and i've really taken it in the chin. i've been talking up energy all year. and i've had it. i used this last week pop to lick my wounds, take a little bit of profit. and move it someplace else. specifically just some normal tech stocks, maybe a little health care and stuff that's just broadly based and not the deflation -- >> jim iuorio, la

to some, a new round of bond buying, known as q.e.-3, looks like a strong possibility. >> it has to put quantitative easing on the table and has to be a viable option for the federal reserve. did this report tell us we're completely falling off the cliff, not really. but, it's certainly telling us we're not making much progress. >> reporter: still, not all of the june labor snapshot was doom and gloom. average hourly wages gained six cents and so did the amount of time spent on the job by one tenth of an hour or six minutes. both suggest support for consumer spending, particularly as lower gas prices puts more money into peoples wallets. >> this is sort of the strongest income increase that we've seen or implied income increase we've seen from the employment report since february. and, then on top of that, it's an increase in real terms because we have prices that are falling. >> reporter: against this backdrop, there is some optimism about the labor market in the second half of this year. many expect a pickup in job growth, but not enough to bring the unemployment rate below 8%. suzann

government's quote big brother policy is what is there to report but before there was we q.e. there was hope that's an acronym that stands for hackers on planet earth and i am not there nine. new york city this is a bi annual event we're not first come together to discuss different topics such as government surveillance freedom on the internet the surrounding whistleblowers and of course there are also discussions about how do you keep the system years ago julian assange on schoenberg wiki leaks the supposed to be the keynote speaker at the last spring this year it was menacing whistle blower william binney he worked for the n.s.a. thirty seven years for stepping down and he said that it was the u.s. government's encroaching surveillance of his citizens that was close to him to finally leave his post and now he says he wants to make sure that all americans are aware of how their privacy is being violated the fundamental thing that's eating away at the. real foundation of this country is the spying that's going on and. internally in the united states with its own our own people

let's go to the common core as you see how the exchange rates are before your remains to near that q.e. year. low against the dollar as you can see gained traction in the last hour or so i want twenty three zero seven for the russian car as there is now closed and it managed to lose out to the us dollar and the euro seen in these times of uncertainty as a risky asset so with a lot of miners get over to the russian markets see what the closing figure is as you can see it was a mix of the shadows all over the place choppy trading session the r.t.s. for tens of was that the down on them i say is basis points in negative territory for a modest gain indeed just that all right let's get on to the official snap shot the closing figures with this demo two tenths of a cent down the investment holding company has bought point five percent of its shares from the market for its passenger flow has grown thirty percent in the first five months of this year to six million people as you can see investors saying if you pay for the last seven terms of his that is heading higher hopes are owned by those

versus those sliding down mean for commodity prices and our central begs afeard set stimulus through q.e. and l.t.r. rose game changer we'll talk about it plus euro zone data out today shows unemployment hit its highest level ever and manufacturing strength last month a u.k. politician warns the monetary union has turned into the titanic lacking enough lifeboats but are there a few nations in the region floating under the radar sure to score as seed and grow out of this crisis we will discuss let's get to today's capital account. the last decade let's talk about it it was a great decade for emerging market economies our guest who will be on in a minute points out pretty much every single one of these countries did well beginning two thousand and three to two thousand and seven the average g.d.p. growth rate in these countries almost doubled the peak came in two thousand and seven when only three of the world's one hundred eighty three economies contracted that's it just three now this gave birth to investment opportunities economic miracles and of course acronyms we have the brics perhap

that is their own version of the qe2 from the folks who have a q.e. queen.d now, untold billions with many note and bond equivalent in their country to bring down interest rates in their country. ring a bell? talk of mexico stimulating. the saudis pumping. now the russians, the russians going good-old fashioned oil flooding. are you seeing a trend? i am. a desperate one. global fire sale meant to stop a fire. modern day cash back contagion. and they want to us buy in, because if we don't they are screaming they might have to cash out. one desperate shot to keep this from getting shot, from being shot. when we do it, it's one thing. when england does it, that's another thing. when the country that blames us for everything wrong on the planet does it, that is the ultimate thing. when china starts pulling out all the stops that is a whole game thing. that is like game is over, the sale is on thing. we either shop till we drop or the day after the firecrackers here, the whole world goes pop. think about that. that all happened today, within hours. i'm going to r

you like to see them do that, or do you think that we can kind of bounce along the bottom without a q.e been very helpful to know the fed stands ready to act, should we see any more meaningful economic slowdown here. i think chairman bernanke was very specific in his comments earlier this week about his intent to stay on the -- at the ready to do so. i think it's a difference between the economic impact and the capital market impact. from an economic perspective, i don't think that fed policy at this point is going to be successful in reenergizing the economy. but from a capital market perspective, i think it encourages taking on risk. >> katie nixon, thank you. >>> after the break, we're going to go out to aurora, colorado, and the press conference that has been expected all hour is about to begin. >>> this is mayor steve hogan of aurora, colorado. let's listen in as the press conference gets under way. >> so obviously there are no words that can express the intensity of this tragedy. our hearts are broken as we think about the families and friends of the victims of this senseless trag

down more is because it further boxes the fed into a corner and congress into a corner expecting more q.e more stimulus somewhere. markets looking for a boost. they think bernanke will give it to them tomorrow. they don't want to be short in front of it. >> that's the old bernanke put thing which comes from the greenspan put thing. call me skeptical. uh think bernanke will lecture congress to stop tax hikes coming. i think that will be the key point. he'll probably also talk about spending cuts. i don't think he'll give you what professional investors think he'll give you like easier money talk. >> potentially. certainly the focus of the conversation will be on what congress has to do. he's already said there is nothing the fed can do about the fiscal cliff. i suppose if you print enough money you can overcome anything. i think he will give hints that the fed is still there if needed with retail sales report you're looking at much lower gdp and bernanke knows that you need to have bond yields lower than nominal gdp to get you out of the deleveraging cycle. to your point on interest only r

soy d eee st q.e challenge it because it is available. they made it an example.eyedvrtt y akyar oit kth eoving. from canada's perspective, i sit iagat idfit f w mp ee punished for apaig on a keystone is not built, i think it will be, either obama will reverse the judgment or the rodney administration will build it. that is my prediction. enad et in intatbgo te deal. >> it will happen either way >> of less canada changes its policy shaouy i yee eron nglas ouuck >>guest: thank you very much. >>isd ee. why this book about the peace prize? id.ig asaod hid re bj its give to the overview of th 20th 19hr tirfoit ei e war coctldrab-israeli war, obama, almos everything. thenheres thstt haer bu teinein e' sbe makes you confront the biggest questionscneina d e n esyo de or eiere artr >>: ak. juicy subject. cove. t over time anybody can find time to like or hate to. >> was there th incident of hiythac pii winning? before barack obama won the election. it was suggested 2002 with un20. ck and then the incumbent president is the peace laureate. mes forget. >>host: thesold ck do

will be on capitol hill giving his version of how he sees the economy and the prospects potentially of q.ebuying some of these risk assets, some of the commodities that hedge funds have been exposing themselves to? we're going to talk about that after the break. stay with us. this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com. at u.s. trust, our expertise extends well beyond investment advice and research analysis. it includes proprietary offerings like our eldercare program, which helps provide for those who came before you. and our financial empowerment program, which helps prepare those who come next. resources like these have made us the number-one trust company. that's why generations of families have come to us to help build their

fed is going to be out in force promising -- resession scare, the fed will be out in force promising q.e will lift the market, you know that. >> no, i don't really agree with y you, simon. i think the thing that lifted the market was a stabilization in the improvement in growth outlook. if you think about the sequencing here, in early august, on august 1, they're not going to be in a position to ease. going to be some level of disappointment. maybe at jackson hole, they pre-commit to something in september. but a lot of damage could be done from now until then. through all this fiscal uncertainty as well as the situation in europe, which is far from stable. >> when we come back to this idea that you said the market is not discounting all those factoring, for example, and the lack of growth that will occur, all i do is look at the bond market and the ten-year yield at 1.5% and wonder, maybe there's going to be a little bit of multiple expansion to make up for the lower numbers we're getting from corporate america because lord knows they're not going to the bond market to find any hope, ar

he might charlotte launching q.e. 3 next week. >> really?alking it up. >> got to love those central bankers. >> in terms of the rally, though, today, looks pretty strong. we have broad-based gains strosz sectors and in terms of volume, it's decent so far? >> the volume's okay. it's in line with what we've seen. it's not as compelling. you always like to have it look like a cattle stampede in an old western. >> art, thanks again. that does it for us. "halftime report" up next.