rob joins me now along with brian ferhrry and rick santelli. rob, you're not worried about the fiscal cliff. >> i'm worried, maria. just like chairman bernanke is. congress and the administration have to get together, but, you know, the president's been very clear that he doesn't want necessarily higher tax rates. he wants more tax revenue. speaker boehner said, well, geez, we can get higher tax revenue just by closing a few loopholes, restructuring mildly the tax code. so i think the fix is in. it's just why hasn't it happened. they wanted to wait until after the election, see if both sides wanted to see if their hands were strengthened. obviously, the president has the strong hand. >> they sort of like taking everything to the cliff, to the edge of the cliff to get everybody nervous, i guess. feels like a dÉjÀ vu from last summer. rob, you make a good point. i understand it from mya mcginness, who created this fix the debt croup. she says if you take away all the loopholes and exceptions, you get $1 trillion. that sounds good, right? unfortun

let's get to rick santelli in chicago. he is in the pits of the cme with jim bianco. rick?guest. welcome, jim. i guess let's start out, you know, if i go back to october 26th when gdp from third quarter had its flash and it was 2%, the market was down close to ten basis points. they weren't satisfied with it even though it was better than everybody thought. so yesterday we get an upgrade to 2.7 and what happens? the market doesn't do anything to the down side reflecting that strength. so i think the market is smart. what do you think? >> i do too. i think there are two things. one the market looked at the internals of that number and it wasn't very good in terms of consumers' consumption. some of the other numbers on investment. it wasn't anything to really get excited about. it was a lot of government spending and a lot of other things. second, i think the market is looking forward at a weak fourth quarter number. >> where is bianco research with regard to estimates for fourth quarter growth? >> we were two before sandy and now well under two with sandy and if we get no fi

rick santelli at the cme group in chicago. go ahead, rick. >> thanks, jim.you look at interest rates which were closed yesterday for veterans day you can see we're off several basis points. if you open it up to charts starting in august, early august, you will see that the fixed income markets whether it is our tenure as you see the chart, our 30 year, a two-month low yields or boom which is getting very close to going to three-month low yields, there's lot a lot of economic optimism as represented by the fixed income markets and when you throw in some of the recent behavior in equities, picture starts to jegel. german two year, it's becoming more like a swiss two year. highly negative in terms of two-year yields in the summer, july and august, it moved back up a bit. optimism. lack of optimist can be seen as we continue now to dip in negative territory and it's only about minus four basis points but look at the headlines. look at where the trading is today. it's the correct leader if you look at the economic variables out recently. david faber, back to you.

rick santelli has a friday edition of the santelli exchange. good morning. >> good morning.ently in the exchange and so does mr. harwood and this button, rise above. believe me. i want to rise above politics, as well. there's a cautionary tone here and for the second time today i'm going to read article i section 7 of the constitution. it's called the origination clause. all bills for raising revenue shall originate in the house of representatives. okay? let's not rise above the facts here. we might have lost it and we meaning fiscal conservatism. i'm a fiscal conservative. i admit it. but the house, their majority in that regard stands a couple of seats change but it stands. and the president, he could suggest programs for taxes, and he can veto and the senate concur with the house but it's about the house of representatives. so when i hear about mandates, here's the mandate i hear. that the people that hold the purse strings is designed by the constitution, their 2010 mandate other than a couple of house switches still stands. that's the fact we can't rise above. now, let'

let's go to rick santelli at the santelli exchange. we have waiting for us this week, rick. >> absolutely. i'll tell you what. tomorrow can't come too quickly. not only for what we do but for the country. there are things on hold that need to be in proactive mode. prior to the crisis in 2008, the country and the populous and everybody that goes out to that i can their greatest responsibility and vote every year, every couple of years, that's a big responsibility. something happened in 2008. you know, people go with the current. you have an election, wake up the next day with continuity. 2008 was a crisis. the water turned from a steady current into white water rapids. all of the sudden we find ourself, to many, on a course that isn't exactly where the current was leading them before the crisis. that's why the 2010 midterms were a large factor in change with respect to the government. i don't think tomorrow will be any less large in terms of results. i do think people want to be proactive when the current of the country doesn't match the

peter joins me now along with ben pace, jim key from south texas money management, and our own rick santelli. gentlemen, nice to have you on the program. thanks for joining us. >> thank you. >> how do you navigate this, peter anderson? you have a market that keeps losing steam. you have uncertainty knowing we're not going to know tax rates. certainly until we get information on the fiscal cliff. we're waiting on that. once again, we find ourselves in a holding period. what do you do? >> well, you know, i think that quality is just totally masked right now by volatility. as we get closer to january, it's a beautiful thing. what we will start seeing is convergence of some of the facts in terms of what the solutions will -- the proposed solutions will be, maria. right now i think everybody's just in a holding period. but that -- it takes a lot of courage to do this, but we're telling our clients to stay fully invested at this point because we think this is just a short-term volatility. i know it's very, very difficult emotionally to navigate right during this week. i think come january we will

joining me is margie of wells fargo, sandy duncan and chris bertleson and rick santelli. thanks for joining us. rick, i'm going to kick this off with you. what are traders saying ahead of tomorrow's election? >> they certainly expect a lot more movement in markets tomorrow and the following day. today was a go nowhere range day. even in the stocks they move into positive territory. dollar index has been firmly but lightly in positive territory with little turnover. same with the euro. many traders are saying, you know, it was momentum that propelled the giants in baseball. so, they're putting a lot of stock in momentum, which may be a positive for the challenger in the form of mitt romney but everybody has their own unique foibles how they want to proceed on the trading side. traders aren't giving me anything solid as a glimpse into who wins but they seem optimistic they think the fiscal cliff will be dealt with, but it won't be dealt with until next year and dealt with retrospectively. >> i would agree, that's what people are saying now. chris, regardless, you're saying y

rick santelli at the santelli exchange on a monday. good morning. >> good morning.e at night because it gives me so many different ideas for the santelli exchange. i think today it is very appropriate. bending it like europe. i think we are definitely trying to get this soccer ball, curve around some very important facts. i think that as we look at the stories of the day, it is -- so fascinating. we see that -- eurozone, again, seems to be in a mode to give greece whatever it demands. 44 billion euros. most of the stores stay it may happen relatively soon. let's look at the news of the day regarding spain. close to 11% in terms of bad loans. that's big number. and it is the biggest number going all the way back to early '60s since record keeping has -- been taken down on that country on their bad loans. and if we look at the unemployment rate getting very close to 26%, that doesn't matter. okay. reform avoidance. how many stories have we seen about greece or spain or the eurozone proper? doing the fundamental labor reforms that make a big difference or tax reform? t

rick santelli with a tuesday edition of the santelli exchange. good morning. >> good morning, carl. and we're going to talk about this topic with sheila as well, because she used to be head of the fdic, another guarantee we have in the system. i'm not questioning whether we should have the federal government guarantee things, but the list is long and growing. it may not shrink when it's supposed to. what am i referring to? tag, you're it. yes, you, the taxpayer are it again for guarantee. the story is not bad, but many traders have talked about this for a long time because they also own businesses. tagging the taxpayer. transaction account guarantee is what t.a.g. stands for. what it is, we have our accounts guaranteed to the tune of 250 grand, deposit insurance. remember, sheila bair is coming up. but for noninterest bearing accounts by business, municipalities, corporations, they in 2008 during the crisis were given a blank check guarantee. no maximum amount. dodd-frank extended it. it's supposed to expire at the end of the year with a lot of other issues known as the fiscal cliff

rick santelli could not disagree more. that's ahead next.y with us. >>> later, time permitting, it's the interview you cannot afford to mis. we really mean it this time. the former co-chairs of the debt commission, alan simpson and erskine bowles weigh in on where we stand on the fiscal cliff. plus, we'll find out if the white house has even called them. back after this. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. >>> welcome back to the "closing bell." can the u.s. economy grow its way out of the debt problem? jim pahlsson from wells capital management says we do need to address entitlement spending if the economy in the u.s. gets on track, the debt here will not be a crisis. >> jim joins us along with rick santelli, who has a very different point of view. let me warn

i'm not sure it would be that big an impact. >> you agree, rick santelli? >> i think greece is the canary in the coal mine with regard to the entire bailout mentality and how germany fits into it for a lot of southern countries in europe. i do think they will get their money. but i think the real issue is haircuts for the private sector. to me, this is going to be an interesting go of it. >> they already had their haircut. didn't we already have a 50% haircut? >> yes, now the germans are talking about new haircuts. yes, exactly. >> would you buy europe? >> i would. i think europe is very cheap now, frankly. even though the esm, i mean, it's got fire power. they have to sign up for austerity. we're a little concerned about that. no one is really willing to do that yet. i think europe looks very cheap on a valuation basis. >> very good. lady, gentlemen, thank you very joining us. safe trip home. >> thank you. >> happy thanksgiving. as we mentioned, oil prices higher -- well, they went lower after the gaza cease fire was announced, but they've since moved high

thank you very much, rick santelli. >>> the president speaking out on the fiscal cliff and standing his ground on higher taxes for wealthier americans. he said he is willing to compromise a bit but not on taxes. >> that's the only way we can still afford to train our workers or help our kids pay for college. or make sure that good jobs and clean energy or high-tech manufacturing don't end up in countries like china. >> let's discuss and bring in jared bernstein, senior fellow at the center on budget and policy priorities and former chief economist for vice president joe biden. tony fratto, former white house deputy press secretary, both cnbc contributors. i hope after that intro we have time for the actual interview. guys, it's friday. i like you both so i'm going to apologize in advance to what's about to happen to both of you. i am so frustrated by both parties. jared, first to you. if you listen to what the president just said, he has basically toll the american people that if we raise taxes on 250k-plus earners, we can solve every problem that we've got -- jobs, college, roads, what

rick santelli, jump in here. we had a market under pressure for sure today. you hear what chip is saying in terms of those policies. what would snap investors out of this? >> i think what would snap investors out, of course, to start to see some, a, larger and more job creation. also getting things like tax policy out of the way. i will tell you, the discussion on the floor, many talking about the dollar. is it qe, or is it romney? are the effects of the weaker stock after the number, are they effects of a stronger dollar after the number really because of qe, or are they because not only do we potentially have a challenger that's close enough to win but if that challenger does win, what's to say to bernanke, what's to say to the fed, what's to say to qe, what's to say to the bye bauy backs? you can go either way on it. all these issues are making it difficult for investors who have a good hunch to necessarily bet a bunch. >> very interesting day. you make a lot of good points. jeff cox, what do you think? >> i want to piggy back on this theme of good news is

tyler, back to you. >> rick santelli, thanks very much. >>> you pick up a major newspaper today, youst surely see his name, steve cohen, the head of sac capital advisors. "wall street journal" and "financial times" both had the story of the firm now being caught up in an insider trading investigation. both of them had it on the front page. kate kelly first reported the storiette yesterday and is here now with the very latest. >> you know, yesterday was a very rough day for steve cohen, the founder of sac capital. although his firm and its former employees have been surrounded in recent years by questions about whether or not there was improper trading at various times. the fact that the doj was involved with yesterday's case unveiled yesterday and not just the s.e.c. was news to him, i'm told. now the 56-year-old traders is being personally implicated in a situation that involved alleged misuse of invird information on a drug trial to sell short two pharmaceutical positions though it isn't clear what cohen knew before he authorized those trades back in december 2008. so far he's said

he joins me with steven wood, rick santelli, and michael jones. guys, good to see you. thanks so much for joining us. steven, what's your take on the markets right now and this storm? how does it impact the economy and the markets from here? >> i think it's modestly constructive. i think we're still in the middle of the square root shaped economic recovery we've been in for over three years now. a grinding upward trend within the data. i think you saw some of the positive news. i think the chinese numbers were a little stronger than many had figured. so the global economy may not be decelerating as quickly as many had feared, but certainly earnings are going to trump a lot of investors coming into the season. i think coming into the fourth quarter, earnings are going to be critical but revenue is going to be extremely critical in an economic environment that's grindsi grinding upward. >> kevin, what about you? i know you're growing increasingly pessimistic about the impact of the fiscal cliff. what else is becoming a drag in terms of uncertainty on in economy and the ma

tim holland is with me along with rick santelli. good to see you, guys. tim, let me get your take on what drives the market next week and into year end. >> well, you have the fiscal cliff. you have the political class. they have to work out some of these budget issues, but sort of beyond the near term, maria, i think they're two underpinnings that are supporting the market. they were in place preelection. hopefully you sort of get through some of these political negotiations. you get back to some of the better underlying fundamental news and some of this volatility starts to dissipate and we start to turn higher. >> rick, you agree with that in terms of the catalyst for this market? you think we get a deal done by year end? >> i don't. i don't. i don't agree with much of what's out there. i think we can get the framework for a grand bargain before the end of the year, but i think that's 50/50. and many analysts, economists, and politicos don't believe there's grand bargains in the cards at all. i do. i think there's so many issues with congress out that i

bill mcvail from turner investment partners and our very own rick santelli. peter, i have to begin with you. with a name like congress asset management, is congress going to come through for your assets? >> well, i wish i had an inside scoop on that, but unfortunately, we're also left to speculate at this point. but i will say this. what's incredible about this market is the way the market moved up today, it's an instant polling network that the government can use, actually, to kind of float trial balloons to us and get a sense of what we think of their proposed actions. >> peter, that is so charming. you assume this government cares what you think. >> well, i like to think that. i do think that they are paying attention to the markets, even though they say they don't. it is a great feedback mechanism for them. i think that by january 1st we'll have so much more clarity that even the thought of having that kind of clarity will definitely push the markets in a positive direction. >> rick santelli, does this white house care about what the markets think, do you

yet, it's very hard to actually get there. >> yeah, rick santelli, what's next? what do we watch for? >> well, i'll tell you what, i'd find it fascinating as we look towards germany. let's not lose sight of the market reality. our s&p is at the lowest level since the first week in august. the dax, which is up bigger than the s&p, bigger than the dow, bigger than the nasdaq, is like as a week and a half low. i think that we need to keep perspective what's going on in europe. i understand the contagion of the german economy. >> all right. we'll leave it there. thanks, guys. >>> still ahead on this wednesday edition, rising above. former chrysler and home dee toe ceo joins me to talk about what our government needs to do to avoid that looming fiscal cliff. >>> then, money matters. why did most of last night's wealthy candidates lose their races? is it a sign class warfare is on the rise? we'll get answers straight ahead. what makes the sleep number store different? you walk into a conventional mattress store, it's really not about you. we have so much technology in

we welcome back michael pento, kwint tatro, jeff sika, and our own rick santelli. quint, you believe the market was going to go down either way. why? >> i do. i think this was long overdue. we have been propped up with some incertauncertainty. it's kept the market saying, are we going to get a change? it didn't matter who won. we've been facing pressure with earnings, and we saw it last friday when we had a decent jobs report. the pop and drop. we sold on good news, which is a very bearish signal. we have two months of overhead supply, and the market is very, very heavy and has been for some time. it's a long overdue correction. i think you have to take cover here. >> michael, we are seeing the kind of market action today -- the coal stocks, which have been up on hopes of a romney victory, are down sharply today. health care, which was down, perhaps because of a romney victory, is higher today. we are seeing a reaction to the election, aren't we? >> of course you are. that's exactly what i predicted. listen, america is now facing austerity. it was europe's turn. no

once again, rick santelli, what did you make of today's action? i haven't seen the ten-year in the last few minutes but i don't know if it sold off commensurate with the rally in stocks but what did you think? >> it didn't. that's one thing that has to be factored into the equation. certainly three basis higher than 158 friday. global stocks coming into our time zone were a bit higher. after existing home sales, the national home index, builders index, being the best level since may of '06, all of those contributed to even more upside in stocks, which made sense. the treasuries, call them party poppers, but they virtually haven't moved the last three hours. >> interesting. margie, what are you telling people here as we wait to see whether or not there's actually going to be some kind of resolution to the fiscal cliff? do you tell people to get involved? do you tell them to wait? what do you do? >> i think we may have a little more correction. i think we've had some selling to take advantage of lower capital gains rates and people just concerned ab

first, rick santelli, what are you working on for the next big hour? 's about this pin, rise above. santelli exchange will be looking at creative ways, thinking outside the box. maybe we'll come up with some ideas that congress, the house, the senate and even the president may consider. there's so much at stake here. but just because compromise needs to come into play doesn't mean principles have to go out the window. that and a whole lot more at the top of the hour! . >>> big rally for a battery maker. you can probably guess why. let's head over to jackie deangelis. >> hay, there. bernstein is saying you have to proceed with caution on this one, telling investors not to get too excited as it has deep appropriate concerns. they downgraded the stock earlier this week, but still we're at more than 9% this week. i also want to draw your attention to chubb as well. it's unsure and how large rather its losses are going to be from superstorm sandy. chubb trading flat. carl. >> thank you very much, jackie deangelis. >>> coming up next, james bonds in "skyfall.

rick santelli, the santelli exchange. i'm told a little poetry.me say the world will end in fire, some saying ice. >> it's not going to be fire and ice. it is going to be some fire and brimstone! how's that? you know, i liked warren buffett's op-ed the other day in the "time"s. a minimum tax for the wealthy. we're going to get to a couple quotes in that in a minute. the beginning promi inning prem issue with. warren buffett lays out a notion once again how crazy grover norquist is because taxation doesn't really affect financial behavior. we could argue about that to the extent of degrees. but i would say two things. first of all, on grover norquist, you know, if you get married in front of a minister, priest or rabbi and you say your oath, and then a year later you don't like your wife anymore, do you go find that priest, minister or rabbi and beat them up and say, listen, get me out of this pledge! no. you made the pledge. it isn't the rabbi, the minister or the priest's fault. if you want to go back on your marriage, that's your decision. grove

. >> in today's "closing bell" exchange, we have carol roth, bruce mccain, and our own rick santel santelli. rick, i'm going to start with you today because we see that stutter step opening in the u.s. stock market. some of that could be attributable, i guess, to the plunge in spanish ten-year yields when rumors got out that maybe spain was going to ask for a bailout from the ecb. while we obsess so much on the fiscal cliff, the markets are paying close attention to what's going on in europe, yes? >> oh, well, i don't disagree. nothing gets past you, bill. i think the fiscal cliff for lack of any tangible movement there is up and center. look at the chart bill is referring to. at one point, we were up eight basis points on the ten-year in spain. by the end of the session, down three. the following charts might put a better face on it. if to you open the chart up to about a month, you can see that rates for the most part were about a one-month high in spain. if you look at their safe harbor counterparts, the exact mirror image of lower rates. the rumor is, hey, if you build it, a bailout fac

rodgers, rick santelli here. what about europe? i don't disagree with your notion you want to sell treasuries. i do disagree treasuries were moving to the downside because of a barack win. most of the traders in chicago were definitely thinking mitt was going to win. they were buying puts on the treasuries. they were buying calls on the s&ps. my question to you is pure and simple. the world is lending us money at rates much too cheap. i wouldn't lend uncle sam my money for ten years for 170 basis points but the european issue continues to push more investors into treasuries. when do you think that will end? >> well, i own the u.s. dollar, partly from what you're talking about. my play, rightly or wrongly, is i'm long the dollar and short treasuries because i don't see that anybody's going to continue to lend money to the u.s. i'm long the 30-year, or the 20-year as it happens. rather than the short ones like you. it's going to end. now that the world knows that america's going to do the same thing for four more years -- >> jimmy, b

first, rick santelli, what are you working on for the next big hour of "squawk on the street"?me on, you know what we're going to work on. maybe every day for a while. different aspects of the fiscal cliff. today, well, there was a great song. "wild thing." i'm going to talk about how that song and pacman could give you clues of what's coming around to solve or not solve the fiscal cliff. you have to tune in at the top of hour to get those two on the same page. >> shares of facebook surging today as 800 million extra shares are unlocked and available to trade from insiders. the biggest increase in the number of shares free for trading since the company went public in may. shares currently trading at $21.59. a gain of almost 9%. rich greenfield is co-head of research. he has a sell rating and a $16 price target. wow. you must be surprised with today's move. >> there has been aot of focus around unlock dates since this company went public. the stock is down sharply from where it went public. the issue of why you want to be short this stock and why we tell clients to sell facebook

>> in today's "closing bell exchange," we have ed batowski along with ron ensana and rick santelli. rick, what's your take on the action here? as i said, you've had a strong dollar. that's pushing oil and gold and the stock market lower today. >> it is. it is pretty surprising to see the knee-jerk reaction at 8:30 to about 8:45 eastern where interest rates moved higher. treasuries sold off. dollar index jumped. the equity futures jumped. it didn't last long, as you pointed out. the only market that really remains solid with this first knee-jerk move is the dollar. i think that points to a lot of questions regarding what comes down the pipe after tuesday, what happens with regard to longevity of fed programs. we had jim on today. he said we're handicapping two issues. monetary policy and the next president. i think those issues definitely impact subsequent equity and fixed income trading. >> so that's what's behind this negative performance. ed, what do you think it is? i didn't see a lot of expectations of 170,000 new jobs created. >> yeah, but there's a lot of jobs that were created

. >> rick santelly is with the santelli exchange. good morning, rick. >> good morning, carl.wn here have any idea what gary will talk about, but i always smile like i am right now when what he says will play well into the topics i'm going to get into momentarily. how low can interest rates go? you know, when i was on the panel during election night until 2:00 a.m. and you were there as well, carl, was there a couple of off-camera discussions about supply siders and the demand side of the equation. many think that it's not paid attention to enough that the problem with the economy isn't what supply siders can fix. it's a demand problem, so gary, my hat's off to you because that is one of the unintended consequences of why consumer demand is low. it's still really at the epicenter of political, a political issue and it's a fiscal responsibility issue and it's a tax issue. all of the hot-button topics. so let's answer this question about interest rates. conventional wisdom would dictate that interest rates probably aren't going to go a lot lower. how many guests come on cnbc and

rick santelli's in chicago. rick?s and it really does officially begin just about now, there's a lot of things i've learned over the years as a trader or recently being on cnbc the last baker's dozens years from traders on how to play holiday markets and many would say just avoid them. well, of course, if you're a long-term play per. if you're a stock valuation or balance sheet picker. yes, probably avoid that. but many down here if you're patient, they can find a lot of very profitable trades, so let's start in some of the easy ones. opening ranges, during holiday thin markets, what day traders love to do is use the opening range as a pivot. especially in the stock indices, so the dow futures, s&p futures, the emini futures and if by mid session, the range is larger, change that. they hit the midpoint of the session, mid session, to be your new pivot. another issue with opening range, if my mid session, the opening range is is extreme, meaning it contains the higher low of the day, it doesn't give you a trade. it giv

rick santelli in chicago. good morning, rick. >> reporter: good morning, melissa lee.iously we found 84,000 jobs, revisions over the last two months, better than expected. headline nonfarm establishment survey number and if you look at the charts what's fascinating is from the five year down the curve to the short like two years, for the week you see yields still lower. but as you look at these charts, look what happens. you see 5, 10, 30, a bit of a different path, more after response deepening. that makes sense. foreign exchange, it was all about the dollar today. the dollar really likes the data. or you could say the euro and the yen didn't like the data. if you look at the euro versus the dollar you can see the euro sliding. you look at the dollar versus the yen in the second target, the dollar soaring and really making some inroads against the yen and the culmination is a good dollar index. obviously we have factory orders but that didn't going to chak the tone of the week. we have a tail wind with the better jobs report. melissa lee, back to you. >> really quickl

michael santoli and rick santelli joining us. rick, tell me what the act was like today in chicago as the market for equities was all over the map. >> it was, but all the traders normally behind me are gone. futures closed an hour ago. on the left screen they had a one-minute chart of the s&p futures. on the other screen, a one-minute chart of the ten-year. it was all about the stock market today. just consider this, right before we knew the president was re-elected, the yield on a ten-year note was 175. here we sit at 161. unchanged from yesterday. still it down ten basis points from its last friday close at 171. pretty pitmuch most of the lowe yooel yields are based on uneasiness. fiscal cliff, raising taxes in a slow economy. all of it is coming home to roost. >> mike, we had the president come out saying that he will veto any legislation that allows the tax cuts to be extended for the highest earners. is that what poured water on the rally? >> it didn't hurt. obviously, there was no breakthrough. i think the one thing to take

steve liesman and rick santelli. gentlemen, thank you for joining us. how is the american consumer? . >>> we would have stampeded out to like walmart or something. >> see what the bargains are. that's the question, right? the consumer is certainly in better shape than he or she was one year ago. home prices are back up, sent machine is back up. the process of separating consumers from their money is intricate. my point would be that the consumer is in decent shape to buy if the deal is right. are you selling into this? had el's not hearty us. >>> binds you are up ten basis points, so your safe harbors are selling off a bit. there is perceived good news. on the fiscal cliff, i can't make a comment. i don't think we have enough info. trying to tack the reform or race taxes, but if you look at the cac, for example, they've had a huge week. france was downgraded and did lose their aaa, at least from the moody's vantage point. never before has the rally made 16 1/2% look so cheap, but that last one is an interesting story. you know, one of the things we were supposed to be potentially on

it was on cnbc, rick santelli was yelling about the losers getting bailed out.ort of help people a little bit with their interest payments and rick santelli was crazy about it. >> you have to ask where is the true moral hazard in our financial system. and it's really interesting, because with these debt buyers, what they do is they use the courts to go after people, and there are hundreds of thousands of lawsuits filed in new york city alone each year to go after people in debt collection. and the thing that's interesting is they get judgments through fraudulent means and they go on people's credit report. so you start to spin out the focus on debt collection. you say well, if these judgments are going on people's credit reports and they might be ill-gotten, then that impedes people's access to jobs, to housing. >> one of the things i want to say here is you hear a lot about conservatives from freedom. one of the things that's profound about this is that being in deep debt and having a bad credit report and having that hang over you is a shackling thing. it does

rick santelli breaking down the action from the cme. hi, rick. >> hi, tyler f on the fiscal cliff could get such a good grade, a-plus on a two-year note auction, 35 billion worth. the yield was .27, which was the offer side of the one issue market, 27 1/2 was the bid. so, price title f we look at the indirects, they were 34.4, a little better than 31% ten auction average. last month, directs had an all-time record 38.2. this time, 23.6. but well ahead of 15% on a ten auction average. here's the beauty of this auction. the bid to cover, ten auction average around 380 came in at 4.07. over $4 chasing every dollar's worth of two years available that equals one year ago bid to cover and i couldn't find a hire one in my 22-year database. so a-plus for the first of three auctions totaling 99 billion. sue, it's all yours. >> rick, thanks, i'll take it. >>> as you may know, european finance ministers did reach a debt reduction deem for greece, open he can the door up for support of greece's teetering banks. thoughts now on that deal from our gue

rick santelli is live from chicago. rick?> for the most part, all week, including today, what the fixed income market's doing is shadow box being the equity markets. look at an intraday chart of the 10-year note yield overlaid with the dow jones industrial average. you can clearly see that it followed especially the big moves right before and after and even during the press conference and meeting. we all want to see rise above and that was a good thing. but, here's the problem. what's going on in the middle east is really going to affect the market going into a weekend, whether it's equities or lower yields in treasuries, and both seem to be happening right now. remember, all week outside of today closing yields have been within a two basis point range. 1.59 to 1.61. right now we're below that. in terms of the dollar index, interesting. look at the dollar index going back to august. it doesn't look too bad. one of the main reasons is -- on the dollar rocket, the main thruster is the next chart which is the dollar/yen. simon,

. >> but rick santelli, that just gives them breathing room to mess around even longer. >> well, yes, when i look at the interest rate market, just like stocks, they revisit it very closely -- how ironic. it almost makes me upset. interest rates are going down because they can't get a hands l on the deficit because stocks are going down. that's the reality we're dealing with. consumer confidence this morning, listen, i'm worried about the fiscal cliff. i have my button on. anybody who tries to put words in the general public's mouth about the fiscal cliff, these confidence numbers dispel that notion that they're worried. they probably don't even really know the details. >> david kudlow, you are taking something of a risk-on strategy. you're going with the high-growth, high-dividend plays in this market, aren't you? >> yeah, we are. it's a strategy that's worked quite well p the uncertainty we've had over the fiscal cliff. with the positive economic data coming in, high-growth areas have done well for us. hi areas have helped diversify and steady the portfolio. >> you're not worried ab

. $16 billion in 30-year bonds just went up for auction and rick santelli, we think, has the grades. rick? >> we do. this is a very real-time experience. as i pore through everything, it is a pretty aggressive auction. wti was trading 23.8550. offer 2.85. lower yield, higher price. yes, a big-time higher price. matter of fact, prisd pretty much at the low of the wi market which is what you want if you're grading demand. the bid to cover -- it was 2.77. the 10-year auction average 2.59. every metric, well above the 33%. no matter how you slice it, this is an "a" auction. as i look through the bid to cover numbers, it's been a while since i've seen 2.77 on a 30-year bond. looks like that's going to take us back to about the best bid to cover since december of 2011. we'll call it closing in on a year. a much different scenario than yesterday's auction or the 3-year auction but that makes sense. there's been a lot of bouncing balls to deal with. i think today we didn't see that big rally as we did yesterday before you had to get involved. back to you. an "a" for the 30s. >>> still more to

>> rick santelli. >> well, listen, i never was a believer that after this president won a second terme was going to be easier to work with than the first term. i'm not buying it. i perm personally think there's significant chance that december 31st will come and go and there will not be a resolution. i also believe those 2%, call it class warfare, call it what you want, they're going to see a tax increase and maybe other taxes even though as michael said, it's not going to make any difference in the big picture of deficits. that really doesn't seem to be anybody's main issue. maybe mine, maybe michael's, maybe the average american worries about it. >> rick, even if we go over the fiscal cliff, our deficit is going to be $450 billion for 2013. that's 3% of gdp. that's all of nominal gdp growth. why is that such a big deal? >> well, exactly. the president talked about $1 trillion for the upper 2%. of course, he assumed everybody knows it's over ten years. we all know over the last three we're well over $1 trillion. >> all right, guys. you say the fiscal cliff in and of itself isn't goin

our senior economics reporter, steve liesman, and our own rick santelli. john, it is clear that the fiscal cliff has wall street's full attention right now. do you expect a -- something to happen by december 31 or not? >> we expect something is going to happen. what that's going to be, we don't have the clarity we're expecting just yet. i think it's simple math. everybody knows what has to be done. obviously, we've had many, many studies over the course of the last few years that tell us what has to be done. so it is math. it's just about them getting in a room and hammering out the details. so we obviously need some revenue and some cuts across the board. i think it's how those are going play out in terms of what portion and how much is going to be what the market's really keying on. i think $4 trillion is basically the number that's kind of out there. i think if it comes in higher than that, it's going to be positive. if it doesn't, it's going to be a negative. >> so steve liesman, what do you think this tells us about compromise? over the last couple of

rick santelli going to talk some regulation this morning over at the santelli exchange. . >> we are, indeed. it's a new term for the president so i'm sure there's going to be a lot of new discussions about the conservatorship. remember those? freddie, fanny. including the federal housing regulation in this discussion because this week, maybe as early as tomorrow, we'll learn if there needs to be a bailout for the fha. the reason for the bailout is they're required to have a 2% set aside. we haven't heard much about it. probably because nobody over the last three years considered re-election, i'm just not talking the white house, wants to ever delve into the gse problem, the conservatorship, the fha because it's costing literally as much as 150, maybe as high as $300 billion when it's all done. the fha is really disturbing to me at this point for several reasons. first of all, they're only underwriting or guaranteeing 1/3 of the mortgages but they're the ones that are 3.5% down. not nearly enough down and it represents a lot of the ills that caused the housing crisis to be

we want to bring in steve liesman and rick santelli to talk more about the outcome and what the outcomethe congressional races tonight will impact the fiscal cliff. rick, let's start with you on the fiscal cliff. obviously, if mitt romney wins, he said the next day he is going to focus on the fiscal cliff. how does that play out? how do you envision this happening? >> i think it's going to be very difficult, but the complexion of congress, as eamon pointed out, is key. if the republicans run the table and do cross over in the senate, they hold on to the house. the fiscal cliff issue gets watered down quickly. same if the democrats run the table. i think we know what the outcome there would be. i think if you see the senate stay as it is f the house stays as it is, it almost doesn't matter. i think there's going to be an issue. boehner's commented sounded like a mirror image of senator schumer's comments a couple weeks ago. they've both put down markers. i think that's why the underlying tone of this election is leadership. i think both sides do not want to blink, and you need somebody t

. >> rick santelli, it wasn't just stocks rallying today. here in the u.s., europe had its best week of the year this week. the euro is at a three-week high. gold was very strong today. what's the market telling us right now? >> i think the market's telling us that there's a lot of bargain hunting and a lot of optimism towards europe. that made sense. i think that the issues of europe are far from cured. i don't think they can be cured. but i do think there's going to be large time gaps where investors hit the gas because the bureaucrats aren't necessarily hitting the brake. whether it's cyprus seems to be an issue. but it's strong. greece really isn't a huge issue but it really does represent kind of how the thinking goes for larger issues that europe has defaced. i found it fascinating, the dollar index closed down over a penny, even though had a strong gain on the week on the yen. it just goes to show you how that euro is so powerful this week and how in the last couple of days it's just on fire. >> the forex market often gives a good bar

rick santelli here.oking at intraday chart of ten-year note yields, we are up four basis points, what's interesting, look at the two-week chart. we have been in a really tight range. we could be breaking out. the reason? well, a clue, 12:00 eastern put up the next chart this is a combination chart of the s & p 500 and ten-year rates, they both peaked at the same time, goes on to say we continue down on these trading floors, say trader to monitor the equities what is giving us most of the trade in treasuries. hyg, high-yield etf, whether a two day or two week, you can clearly see it's making its move, as investors feel a little better about equities and making a play for gives them the biggest yield. that may be hyg, high yield. next after the break, former intel ceo fred barrett. you better stay tuned. >>> talk about the trading action here, bob pisani joins ounce the stock exchange floor. any reaction to bernanke? >> a quiet session with bernanke, made a few jokes, seemed relaxed. he came out and said t

in today's "closing bell exchange ", mark, gene and our own rick santelli. art, let me start with you. is this a rise above rally? does it look like we might get a deal? >> we've been rising above the levels we've been at. no question about that. traders felt reassured coming in this morning. washington is a ghost town. the president's out of country -- >> those are good things. >> congress is not coming back until next week. no one will go before the cameras and jeopardize the cliff. the only file you have to run is the kum-bi-ya moment after the meeting. they said nothing across the pond will hurt us, let's buy here. >> no sense of urgency right now. does the market feed off that? is that what's going on here? >> i continue to look at the treasury market. you can look at a chart overlaid with the stock market. we were following themmer earlier, especially with the opening you describe, then it started to fall off. treasury market seems unimpress unimpressed. i'm in agreement with art, which is a good thing because art is mostly right, that is, nobody's dri

i had a special pass i was going to have rick santelli as my guest here at the obama after party.out to new jersey. >> that would bring the room to -- i would pay money to see that. >> the fact is with the -- you saw john boehner this week announce that he didn't care. they asked him if barack obama won the election, would that be a mandate to reach a grand bargain? you saw him announce publicly he didn't care who won the election and that they would no way, no how consider any new tax revenues. that's got to be pretty -- that's got to be pretty discouraging for any of us that are hoping they reach a deal for the grand bargain or the fiscal cliff. >> the president argues that the fever is going to break. the fever is going to break. those are his words. is that going to happen? >> we're going to have to do a brand bargain. the question is are we going to do it before we have a debt crisis or will we do it in the face of a debt crisis? we're going to have to have spending reductions and additional revenues. the american people understand that. the math doesn't work otherwise. let's

. >>> to chicago and rick santelli tracking the action at the cme. >> i really do think that the presidentbviously the market movement was all predicated on the center of the universe being stock prices. if you look at intraday, 1:00 eastern, interest rates moved a little lower but really the big move on interest rates was earlier in the session when you saw a 10-year note touch a 1.57% yield. the s&p 500 chart clearly shows a downside to equities that probably was the reason you had a downside to the trade in terms of yield on the fixed income. last, but not least, you see that the dollar index did kick up a bit. traders saying they're not sure exactly what's going to happen with regard to fiscal issues, but without a doubt they continue to pay attention as taxes have a big outsized influence on the state of the economy. back to you, sue. >> rick, thank you very much. >>> president obama, you saw him just a few moments ago, pushing for a balanced approach to resolving the fiscal cliff. is this possible with a divided congress? representative peter welsh is a democrat from vermont and is t

to the bond market now, rick santelli is tracking the action for us at the cme. are yields doing today, ricky? >> still continues to be a one-way market. the only thing we a by how big of a one-way street is it on? today, only a couple of basis points. look at a chart starting august 1st most important feature, close to a two-month low in yields on the ten yours as well as the 30 as well as the bond. if we look at foreign exchange, very important, see october 1st dollar index, hey what is going on? dollar index is doing well. things really be that bad? however, we note dollar index is euro centric, separate the euro. look at it since october 1st. pretty much down. then look at it against the yep. against the canadian. look at it against the pound. all look kind of the same? absolutely. the were the dollar index is up is because of the weakness in euro, which is showing up against a multitude of cross traced. sue, tyler, back to you. >> thank you very much. >>> nassau county out on long island, a little ways out from new york city, the 12th wealthiest county in th

rick santelli's tracking the action for us. >> definitely we're down about four basis points.verybody's trying to observe are the markets being impacted by tomorrow's election. it is hard to say but here's a couple issues. you see the intraday chart down four. if you open up the 2-month chart, we're around 3, 3 1/2 low yields. the same two-month charge and the pattern for bunds, the yield around the low 1.40s is actually the two-month low. one would argue if the fed is in play and uncertainty about easy money, dollar index similar. at a two-month high in the dollar index. the dollar index will be impacted should there be a charnlg change in guard at the fed. that's what the markets are showing at this point. tyler? >>> we are watching shares of boeing today. its new 787 dreamliner jet making its first commercial domestic flight. our phil lebeau was one of the lucky few to be on-board for that journey and he's with us now. phil? tell us about it. >> hard to believe it's been eight years since boeing first announced plans to build the dreamliner but it is now in service here in

rick santelli, we have a bid to cover ratio of 2.81%. >> that 2.81% is above the 10-auction average. this is around 2.74%. actually, close to the 40% 106-auction average. directs -- 19.7% that is a record high since they brought the 7-year back in february of '09. i can't find a higher direct bid. the yield -- 1.045%, right in the middle of the bid offer we give this auction a b-plus, solid auction. 99 billion is now behind us and considering the issues of fiscal cliff we're going to be looking to handicap a whole lot more auctions over the next several years. back to you. >> absolutely. >>> breaking news now. it concerns microsoft. let's go out to jon fortt. jon? >> hey, sue. microsoft has officially announced the pricing for surface pro. that's the version of microsoft's tablet that runs an intel core i5 chip. it was anticipated that this would be higher than the surface which started at $499, $599, and indeed it is higher. it is $899 for the 64 gigabyte version. for the 128 gigabyte version, $99.99. surface pro is backwards compatible, it will run windows 7 apps and also done pen

. >> thank you very much, rick santelli. >>> president obama in new york city touring the aftermath ofndy right now. meanwhile, the first pieces of data that show the economic impact of the storm are coming out. >> i was on a fishing trip on monday out of long island. i got a tour of some of this damage. it's just unbelievable what's happened out there. the docks are moved and the piers one to the other. there's boats in people's backyards. and in its own way, some of that is beginning to show up in the data. this massive storm that hit this huge area of the country. let's take a look at the data. the first thing you'll notice is the surge in jobless claims. the trouble here, folks, is we don't really know what's happening with the underlying trend. it was very well contained going in in the 350, 360 area. is some of that weakness in the overall economy or as the labor department suggests, a big chunk of that from the storm. empire state survey, better than expectations. cpi and food energy not affected yet though there does tend to be a pop in prices after big storms like this. it is