including rick santelli and steve leaseman. if this is a hope for a move by the fed, will might be extra wiggle room to do that, are we rallying for the right reasons? >> absolutely not, rallying to artificially stimulate the economy is not good. we're about to see expected earnings when we see earnings announcements in july come down. anybody right now should be selling into any kind of strength in the market because things will get a lot worse before they get better. >> it plays into the feds hands here if they want to had more liquidity to the markets here or if they want to raise expectations. >> i think the way i put it is it plays into the risk managers hands of the fed. whatever the state of the economy, and i know there is a robust debate by the fed about that, but there is a risk to the economy that things will end up weaker. as you said, bill, the inflation number suggest that there is little inflation, at least immediately, will get out of control and cause it to rethink that policy. the bigger debate now, bi, is wha

we'll talk with steve liesman and rick santelli. the dow is near the highs of the day. the nasdaq is up 18 plus points. the gain in technology i referred to, or it's a 2778 on the nasdaq and s&p is up to 1285. >> i hope you don't miss my interview with bill clinton, sitting down with me a little bit ago. the last president to tackle the budget, talking about the economy and elections and the european debt crisis. why he thinks president obama has a better strategy to deal with the deficit than mitt romney. it's all ahead on this edition of the "closing bell." he did discuss europe. this was one of his most important issues. >> the weakness in stocks is attributable to what is going on in europe. is it something to be bought or do you avoid it? we have one strategist going all in here. plus, the emergency talks on europe as concerns grow that the debt crisis could spiral quickly out of control. one official was quoted today assaying it's not a matter of weeks on the spanish bank issue. it's a matter of days that they come up for a solution for that. the market is holding

melissa lee, back to you. >> thank you, rick santelli. you are on fire today, rick santelli.> i know. i'll have to talk faster or cut material and i never cut material. >> not faster, rick. not faster. >> see you in a minute, rick. >>> with falling gas prices putting more money in people's pockets, consumer stocks could see a big spike including food stocks outperforming some of their peers. jane wells is live with more on that. >> simon, are you eating out more or less than you used to? >> it depends on whether i get my fresh direct delivery in or not. how bored i am of the four-minute meals. there's only one of me. it's quite cheap. >> we need more of you. god bless you. raymond james lowered expectations for the casual dining industry saying the abrupt slowdown in monty casual dining sales that started in march continued in may. it has a strong buy on red robin. some analysts believe casual dining could suffer but so-called fast casual could do fine. for example, compare sonic to darden. bank of america merrill lynch says they are losing share to fast casual. when you're h

we have morgan stanley representative here, we also have rick santelli. why are the markets rallying going into a scary election for the world economy? >> you have the manufacturing in expansion territory. they're above 53. you had weakness in the fed and empire state manufacturing. that's basically been holding things down. i think maybe saying you see these election holes, saying that maybe the centralist parties might be able to put together a coalition and keep grease in the euro. if they leave the euro, you will have great hardship for grease. germany's choice is a pugnant outcome and a ruinous outcome. >> joe greco, what's your take on this? >> i think clearly the markets have spoken already today, i don't think we see a sell off. we tested this resistance level that falls between 1338. but monday morning we either know that greece plays ball or they don't. if they do, great, a little bit of the cloud is lifted and sun is coming in. if they don't, then we start seeing pressure on the fed that comes a few days later. the world really isn't working to

now to rick santelli for the solutions on the whole europe mess. take it away. >> thank you, tyler. we'll talk about sweeteners. i didn't pick sugar, i picked sweeteners. i think everything they've been doing in teurope is a sweetener. it used to be cds and banks put out. you get a sweetener, a participation on the s&p index, should it move higher. sweeteners. now, back to gold. we already talked. ira harris and i thought the solution is gold. greece has 111 tons, $6 billion, spain, 281 tons, $15 billion, italy, get this, 2400 tons, $123 billion. you don't need to back your bonds 100%. let's say you leverage it by a factor of 10. back then .1 andy spain 150 billion and 200 billion for portugal. 1.23,ian for italy, not including france, germany, if they want to help, kick in a few gold reserves. tie it back to gold, sweeten it up, leverage it up in the best part should buy you one 0 two years. for the first plan, write a constitution, the second year, get the countries to ratify it. that's the short plan you took when you didn't pass the constitution in '05. back to you. >> interesti

of santelli exchange.>> of course, whether it's the dirtyest shirt or cleanest in the laundry bag, i like the bucket analogy. although it's humorous, it's also depressing. carl, there was a time not so long ago, look to the market, read the whispers, kept up with fundamental, if you invested with gold, sometimes economic or financial reason. if you looked at spots, wasn't so much liquidity. to that point we're going to talk about the "bucket list." of course, when we have our bucket here, i find some fascinating issues we should be paying attention to. the first issue, of course, is the sector. so we want to talk about sectors, especially whether it's commodities. you know, like right now, you look at the grains. definitely fundamental to the grains. it's called heat. there's also a fundamental of the dollar and all the factors of the euro and how they affect the dollar and notion of commodities that are underpinned by foreign exchange of the u.s. greenback. there's also above and beyond sectors, we have t

let's check in with rick santelli from the santelli exchange. hi, rick. >> hi, melissa.on. i like to make lists. i'm going to move quick was i have a long list. fed policy, programs, who benefits, who doesn't. on the benefit side i would say u.s. treasury benefits. why? they have lots of outstanding debt. they are probably going to have lots more. lower rates have a lower services cost. they benefit in a big way. the current administration. here is one you don't hear very often. here is the quick story. if you talk to anybody out there who can refire, can buy a house, what they say is 30-year mortgage, why interest rays are low. extend, extend, extend. why is the government -- they have extended a bit through some of these programs. why aren't they issuing 50 to 100 year bonds lowest securities higher yields, kind of masks the deficit a bit. large institutions. i'm not talking about mental hospitals, i'm talking about the big financial centers involved in the commission business, trading business or large institutions like big banks and companies. why? the big companies

santelli. >> now time for a quick report on chess peek. it earlier and, in fact, can confirm a little bird story from yesterday about which he is bechesapeake being close selling a $4 billion stake in a pipeline. very comply kalted series of transactions that could culminate with what i am told perhaps a success of 4 billion tla for chesapeake. and, again, the sale would cut down on capital expenditures. and, in fact, that would both raise money and decrease expenditures. so embraced is a positive. now, if you read a 13-b from investor carl individual investor icahn, he was asking the company to move ahead. but that had been in effect long before mr. icahn came on the sooenl. southeastern management is getting an additional three in addition to the one it holds. and we've got the annual meelting a couple of days away. most importantly is the case of sales to keep up in order to balance out what goes outened what comes in in terms of kaush at that company. this is not an asset that many anticipated miegt be sold, but it is being embraced by

. >>> rick santelli and steve liesman react to my interview with charles evans next. they will disagree on anything. and then find out what mega investor sam zell says about these hard times. we'll get into that and a lot more, how he is allocated capital today. and later, the super rich, they are not that rich anymore. stay with us. cnbc, first in business worldwide. tdd# 1-800-345-2550 there are atm fees. tdd# 1-800-345-2550 account service fees. tdd# 1-800-345-2550 and the most dreaded fees of all, hidden fees. tdd# 1-800-345-2550 at charles schwab, you won't pay fees on top of fees. tdd# 1-800-345-2550 no monthly account service fees. tdd# 1-800-345-2550 no hidden fees. tdd# 1-800-345-2550 and we rebate every atm fee. tdd# 1-800-345-2550 so talk to chuck tdd# 1-800-345-2550 because when it comes to talking, there is no fee. how math and science kind of makes the world work. in high school, i had a physics teacher by the name of mr. davies. he made physics more than theoretical, he made it real for me. we built a guitar, we did things with electronics and mother bo

rick santelli here.m may new home sales and the survey says, better-than-expected. 369,000. seasonally annualized adjusted rate. so 369,000 best expectations. and 369,000 is the best. wow, this is going to be the best going back quite a ways. that is going to be the best going back to april of 2010. best number going back to april of 2010. carl quintanilla, back to you. >> thank you very much, rick santelli. talk to you in a little while. >>> the supreme court could announce its decision on health care reform at any moment now as we gear up for that announcement. we take a look at how the ruling will change america's health systems across the board. >>> and one netflix analyst is brushing aside his bearish stand, upgrading the share. sit now time to get in? we'll talk to the analyst behind that call. >>> plus, disney has done it again. "brave" topping the box office this weekend, pulling in over $66 million. how much longer can the media giant right the wave of box office domination? >> and, of course, t

rick santelli with friday edition of the san santelli exchange. >> everything is free.bout this and maybe even have fun and kind of learn something from it. how many of us have kids where, you know, you walk into that restaurant or the waiting room for the orthodontist, whatever it is, and there's a big bowl of candy. atsz obviously free. i don't know about your kids, but my kids never just took one. they would take handful. it's free p. now think about what is going on with politics. this is a democratic/republican issue, not just a united states issue. it seems as though the things about the category of free, not only expand in front of elections, they get divvied up. now i don't care what your political affiliation is, when you have four-year terms or longer, why is it that the first part of the term we don't see a lot get done. second part you worry about reelection, more things get done. you remember that zz top song, "cheap sunglasses", think of that analogy. i don't know about you, but i started buying the cheap sunglasses. i started taking better care of them. b

rick santelli the next hour "squawk on the street."> simon, santelli exchange is going to be at the bottom of the hour. at the top of the hour, commissioner. there's a huge industry affecting this industry. it's regards to research. we're going to dig down deep. every broker out there in the futures business, a must see bottom of the hour. we'll talk about the financial times. you may be shocked to see what it is. all coming up in the next hour on "squawk on the street." like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering, web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. >> >> as we told you southebsotheb auctioning off a computer. the hammer price, $374,500, guys. it was one of about five in working co

rick santelli at the cme.ou put up an intraday 10, you are hard pressed to find out when he started, when he stopped, when spain was downgraded, it's a sta castic sideways day. open for a one-month chart, put everything else aside is that the outlier was the 140 close last friday and that was because of europe anxiety in front of a weekend. but it's normalized if 1.65 is changed normalized two-day dollar index just talking about extending the twist, even if you don't put something behind it still had a pretty permanent damage to the dollar index from some of its best levels from early yesterday. back to you. >> rick, thanks very much. rejoining me are art cashin and kenny. kenny, how much of today's rally might not be linked to bernanke but to janet yellen's comments last night where it was a more overt reference to the need for more monetary stimulus. >> janet's the one that came out and basically made it very clear not only she stands ready but there are other governors stand ready to do it. he came out like

. >> rick santelli at the cme, we have the statements outs of the ministers, ricky and the heads of stateittle market reaction. how'd the bond market take it? >> very little. as a matter of fact, it's a bit of a counter intuitive week in many ways because rates are mostly higher but in a very soft way. now look at the charts. intraday we're up about four basis points in a ten-year. remember on the week if you just looked at closing yields, the range on closing yields for the week's nine basis points and as you look at a one-week chart you'll see pretty much all of that transferred from one week to the next, up eight basis points on the week. 30-year there's a lot of curve implications between the twist, anticipating whether it would come or not, the fact that it did because last friday and yesterday have the exact same settlement for a 30-year at 2.68, we're at 2.75, so up about seven basis points. the last chart maybe the most interesting because i thought we were up a lot more in the week on the dollar index but maybe no more big time qe at least many people believe that. one of the pos

we get out to mary and rick santelli. mary, on the banks first of all, obviously they're doing very well, but i'm wondering whether this is kind of like it's not that it's great news, just that it's not quite as bad as we were expecting. >> no and keep in mind, mandy, this downgrade had been telegraphed by the banks for quite some time and a number of them had submitted sec filings well over a month ago indicating what a potential downgrade to their debt by whatever notch they were eventually downgraded by, what it would cost it as far as additional collateral payments. so if we look at how the bank stocks are performing, they are bouncing back, yesterday they were down in tandem with the rest of the market. we see the recently goldman sachs goldman sachs is a little bit weaker, one of the reasons we've seen a little bit of a shift in sector leadership today. financials certainly were the best performers but we've seen energy and health care stocks actually come back and take some of those leadership positions today. >> o

. >> rick santelli, i know you must be itching to jump in on something like that. >> when it comes to europe, can if you're being frank, there is two ways to go. you let them default and hit a reset button, and that may be the best solution for a country like greece, it's not necessarily the best solution for italy. in spain there is no solution in my opinion. it's real estate, what could they do? i have heard gold come up more and more, and i did a spot on it as well. just consider, they have 2400 tons of gold in italy. that would have a street value of $123 billion. why don't they do a little security on the fixed income side. >> the italians need to hold on to their gold with both hands, it's the best thing they can do. >> why, it's collecting dust, europe is sinking in the water. >> are you advocating a quasi gold standard there? >> i'm thinking yes, do it in terms of the bonds. put a portion of the bonds backed by gold and investors -- >> those bonds not backed by gold will just crater in value. >> they're cratering now! >> is anybody out there embracing free markets? what's wron

bring santelli and liesman back for final thoughts.lthough this story is far from over here, steve liesman. >> i think that's right, bill. and i have to say, i'm starting to be skeptical again of this story. i know i started off that way and changed my mind when i heard from the bank of england. but we've looked into this speech by mervyn king, bill, a planned speech i think happens every year. and there was a lot of talk, rick, correct me if i'm wrong here, that england needed to do something. and this may be completely separate from any coordinated action. i would just say, bill, one thing i think i know about central banks is that finance officials don't speak for them and so far we have the bank of england talking on the one hand and finance officials on the other. so i have my doubts. look, we could come in tomorrow morning. there could be a coordinated statement. maybe this g-20 official picked up on the chatter among them. so far the central banks have shown through the crisis -- >> to you thido you think geith aware this would

we have bob mctier, rick santelli, and steve leisman will join us shortly. what did you make of the policy statement and they're assessment of the economy right now? >> i thought the policy statement did as little as they could do without disturbing markets too much. if they dropped operation twist it would have been a tightening. so just extending that was, in a way, no change at all, and it's a very middle thing. operation twist is not a big deal because it does not affect the fed's balance sheet. >> what about the fed being more aggressive here, we know things slowed down a bit, i believe it was steve that said why not be more aggressive? was this appropriate just extending operation twist? is it enough? >> i have thought he did leave the door open to do more. he laid out that if inflation was lower and an unemployment is higher, both currently and in their projections, and geoffen the dual mandate, steve is right, that really calls for more. we don't want them to shoo their last arrow before they have to. >> right, i think that's the sense that we got to

we have chris cordero and rick santelli. >> greece is like an airplane coming in without a landing gear. you have all of the central banks waiting on the landing strip ready to pour liquidity on it if it comes in too hot. >> it's really about central bank action that we're seeing this rally, not about solutions coming out of greece. >> that's true. you have seen central banks willing to get in there and ease even more and provide more and more stimulus to get us through this. >> david, what do you think? >> i think the markets are expecting more stimulus, it's clearly the rally we have seen. >> just because of stimulus from central banks? >> i think the markets are expecting another round of stimulus from the feds and good things out the election. >> rick santelli, what did it feel like in chicago today? >> it's one of these weird weeks where the dow is up on the week, the s&p up on the week, the nasdaq is a little higher, and interest rates are higher priced on the week. so what i walk away with this, this is a win win. they will make the markets happy, but we're in a bounce from nonso

rick santelli.nto the conversation, i continue to try to research all the issues that have and may not be brought up that could affect the outcome of mf global and a couple of things i remember. back in 2009, being on the floor every day for decades, there was talk that there was going to be an issuance at that point of securities, corporate securities, by mf global. but it was scuttled last minute. jpmorgan was said to be one of the main underwriters within that security. i would like to see if somebody could ask jpmorgan, indeed, if there was talk about an issuance at that point in time and why it didn't come to the marketplace because many of the issues i read online were that while mf global was shoppy, they had a security issuance months before in october of 2011 and there was material information regarding the position in european debt that was unknown to investors. these are huge issues. james, why aren't these things brought up? >> honestly the mainstream media doesn't care about this case a

back to you. >> thank you, rick santelli.g jobs number with michelle meyer of b of a. this is a slower patch for the second half of the year. the most worrisome metric for you this morning. >> oh, there's a number of things that were pretty worrisome in the report. the headline number was shot with downright provisions the last two months. i think one of the things two other metrics are not talking about much a fell 1% over 1% year after year. that means that compensation for the month is going to be weak. income growth is going to remain soft. and that's something revealed in the gdp numbers. a revision to cure disposable income. the consumer can't spin it. >> more part-time news is out there that you are led to believe? >> yes. one of the reports is that we are seeing more part-time hiring than we have in past recoveries. and that is speaking to the conscious nature of businesses. businesses are engaged in just-in-time labor. they are responding to the increase today and are not thinking about increased demands down the lin

stay the course, steve liesman and rick santelli battles it out over whether the government needs to step in and force stimulus spending. >> we're fully expecting that there is some downgrade and we have the liquidity. that's why we built the liquidity and took into all potential outcomes. >> is morgan stanley in danger of a downgrade? and how much worst would that be for a firm? [ creaking ] [ male announcer ] trophies and awards lift you up. but they can also hold you back. unless you ask, what's next? [ zapping ] [ clang ] this is the next level of performance. the next level of innovation. the next rx. the all-new f sport. this is the pursuit of perfection. 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 own legacies

rick santelli is live in chicago for a grade to this one. how did we do, ricky? >> well, you know, i was going to give it a c-plus but that extra time while i was listening to that horrible story of stanford, i'm raising it up to a b-minus. the grade. let's go through the metrics. the yield on 13 billion reopened 30 so really 29-year 11 month securities. we originally auctioned last month. well, 2.72 is a record low yield at an auction. just like yesterday's 10.622 is a record low. but not on the market on the secondary markets. the bid to cover on the auction 2.40. ten auction average 2.66. go back to november of last year to find a e qualm 2.40 bid to cover. you have to go back an extra couple of months to august of last year to find a lower one. indirects were close to average at 32.5. directs were solid at 24 above the 17%. ten auction average. but in the end the wi was exactly where it priced. it was downgraded a bit because of the weak bid to cover but all things being equal, b-minus isn't bad and once again we continue to see investors somewhat clamoring f

right, rick santelli? >> seems to be the case. i find it particularly interesting when so many things align up. now, take everything mary said because she really laid -- made the table for me. if you think back to the last time we had the type of down day, june 1st. look at some charts, that was a cull mination of big factors, t selloff and then the rates moving back up and so did the stocks. the reason i'm getting this is there's very similar dynamics here. and then add in there is a very nervous feeling on the trading floor today, mandy, due to the notion that moody's is going to be hitting the tape sooner or rather than later and i think that's not only fueling the weaker euro but fueling with goldman the selling in stocks and absolutely now that we're about ready to slip under 160 you could see a lot more buying moving these yields lower moving toward the end of the day. >> with e know moody's will do something so is the fear that they're going to do more than we think they are? >> well, you know what? sully, traders down here

. >>> let's get to bob pisani and rick santelli. bob, lots going on.druple witching expiration on friday and jamie dimon today where the focus was and the gains in the dow short livered as jp morgan stock picked up after the testimony. >> yeah. yes, the answer is volume is heavier than normal. there's a witching expiration, quarterly. and options and the important thing is we would be lower, mandy, if it wasn't for speculation about what the fed might be doing next week because there's worries of the greek elections. people aren't sure how to trade or what to do about it. for the last month, we basically stabilize. we have stopped going down. we were going in to june. generally on a down trend. now things stabilize. the stuff i look at every day, the australian dollar stopped dropping so much. oil has stopped dropping. copper has started to stabilize a little bit. it was in freefall in the month of may. i think this is, again, a little bit of signs of technical things and a little bit of signs of the fed trying to act. meantime, as you mentioned, big s

rick santelli here with a >>> welcome back. rick santelli here with a market update.u look at yields on the first of a two day meeting. we're up about 5 basis points. part of it may be what's going on in europe, part of it the fed. europe is leaning us to higher yields, closer to a one month high yield and this is how you can tell maybe it's accommodation. under the microscope, dollar index close to three -quarter's and 2.5% on june 1st. now, back to the hearing. >> during your hearing last week with the senate, you discussed the distinction between a resolution authority and bankruptcy. would you touch on that, your view preferable, the resolution in dodd-frank or bankruptcy. >> it's a lot of semantics. i would use the word bankruptcy, implies the debt gets wiped out. a court manages the winddown of the company. you do need an expert like the fdic to manage the process, has the right people, right structures, right capabilities to manage the winddown. it should be rounddown and board of directors fired and the name should be buried in disgrace. that's what should hap

. >> rick santelli, do you think the feds are going to announce new round of quantitative easing or at least extend operation twist to keep low rates in the yield curve? >> i'm probably the only person around who believes the answer to that question is no. but have i to tell you i'm in the minority's minority. every trader i think thinks in some wear they're either going to extend twist because they're running low on two years but they're going to do something and that big rally we had last week, many believe it was more about that dynamic with regard to the fed than it was about accurately predicting greece. but the issue is what will it do and that's for a whole other discussion regarding the fed. >> i don't know if you saw the report over the weekend basically where we're all looking for any action out of the federal reserve. mandy, let me get your take on this. the chief economist at goldman sachs says he's expecting the fed to ease. are we talking about asset purchases? you can't go much lower on interest rates. if we were to see an easing from the fed, what do you think it looks

courtney reagan, rick santelli, let me get to you. it really feels like a shoot now and ask questions hear. >> it sure does. it's really persisted all day. it's again all about europe. that uncertainly is just ruling the roost. as you can tell, the vix is illustrating that point. it popped as much, but believe it or not, that's not even the high. we saw it spike up even more than that, but still is very telling of what's going on here. all the major sectors are lower, and even when the market tried to find some of positive, new home sales, with best ratings in two years, we saw them spike up, but quickly fade off, because the market remembered, oh, there's europe again. we thought perhaps we could get a decision on the obama care. then when that 10:00 hour came and went we realized the decision wasn't coming, with you saw that fade. also seeing lows in retail. there's been a lot of focus on energies and financials, but avon is seeing its lower levels since march of 2009, abercrombie, and j.c. penney, they're seeing new multiyear lows,

rick santelli with the santelli exchange talking about the cost of borrowing, rick. >> the cost of borrowingk when we think about borrowing and debt, the real story i want to get down to today is the debate that steve liesman and i had this morning. we're going to still have in the afternoon, i believe, a little after 3:00. and that is should the u.s., can the u.s. help europe with its issues? and some say like steve that, you know, the maybe the imf, i don't want to say that too loud dhoechlt have good security on this floor. i don't think people are going to go for. that the story starts earlier. you have to understand something that was happening in the beginning part of the early 0's and culminated around 'o 6. the only thing that french, in my opinion and many europeans like better than pastries and cookies are derivatives and financial engineering. when was a broker, i did a lot of business with the large french banks, large dutch banks mshgs of the european banks. and the financial engineering, the horsepowered derivatives really was something that was widely embraced. so that's one o

hope over to the santelli exchange talking a little regulation this tuesday morning.re not only talking regulation. we're going to put some things in alphabetical order. we're going to talk about not only regulatory rupture but also talk about a bit of a hidden agenda. now, all of this starts, of course, with the notion of out of order. out of order can mean broke and it does in this instance. it also means this certainly isn't in alphabetical order but it is in some kind of order. let's start with jpm, jpmorgan. in terms of jpmorgan i was welcomed this morning with jpmorgan new of risks in "the wall street journal." of course they did because it's trading. last i heard other than when they try to blame speculators for everything, there is risk in the market. i understand they need to investigate certain issues. why? we're down that rabbit hole. we bailed out the banks, now we have to protect the taxpayers. in the old days it's not really -- it wouldn't have been looked at as a 2 or 3 or $5 billion loss, it would be looked at as a trading loss against much bigger prof

. >> rick santelli's in chicago. there's another auction day in chicago and the money was flowing in to the 10-year note earlier this morning. continues to do so. rick, what's the grade? >> well, you know, i'm trying to think. yesterday was lassie. today is rin tin tin. we have a "d." the wi, the one issued market yield only trading around 1.063 bid offered at 1.047. dutch auction, 1.075. higher yield. lower price. didn't price well. tailed badly. looking at a bid cover, 10 auction average is 1084. this bid to cover since october at 2.64. indirects at 42%. pretty much spot-on 10 action average. directs about half the average at 6%. in to the hands of dealers so once again we see some common threads. dealers played a big function in this auction process. we'd rather have investors play that role. and two back to back spongy auctions. i know the world has a lot of moving parts right now in the economy and then the finance and in the structure, but boy, it's pretty hard to put a bit of lipstick on these two auctions. ba

feel of the whistleblower loses his battle against extradition to sweden and britain supreme court santelli supporters are mentioning the need and the u.s. to face espionage charges in the making of american diplomatic cables. up next we're bringing you the disturbing story of how the u.s. military used highly toxic herbicide chemicals and vietnam and even a devastating legacy. the u.s. air force kept detailed records of the spray missions that began in one thousand nine hundred sixty one and continued for ten years these voluminous records were used to create maps and calculate the extent of the spring thirty years after the war and. one of the things that we did when we created the street graphic information system was to create a way in which you could take these tens of thousands of flight legs of a of a plane and translate them into what happened on the ground and we can tell you in any one grid had much was sprayed had many direct hits we also got files from the national archives of where people live where the hamlets were that i could actually put how many people lived in each of tho

in the meantime get to rick santelli. rick, there was a time in the past where if i had asked you, do you think we'll ever see the 10-year yield at 1%, you might have laughed. now it's perhaps not looking so silly or impossible. >> no. no. if you said when are we going to see 1% in a 10-year note yield, my response would be, well, next time you see a negative jobs number or you see more deterioration in europe. and of course we had a taste of both of those today. even though we aren't quite there, 30-basis point week is pretty dramatic because we were basically at 1.75 in a ten last year. we're at 1.45 now. 30 basis points. while everybody's been looking at the strength in the dollar, it really is euro weakness, let's look at the dollar/yen year-to-date. they were at 3.5 month lows earlier in the session. mandy, here's a fascinating one. everybody's trying to reach for yield without taking too much risk. if you look at the etf that's investment grade corporates, it's almost unchanged today and it's doing pretty well. look

which just -- goes to show you they remain continuously behind the market. >> rick santelli. i mean, we knew the subordination issue was there. why did we even bother to rally to the open this morning? what happened here? >> i think the subordination issue is big. i think that any kind of a plan, first of all, is a catalyst for reversal of positions that make -- have been established that were a little bit more dire. but these markets are hard to understand, bill. i think that just because the risks of a market seeing any kind of a plan is that equities rally and university rates for a while move lower. it is the long-term effects. that's what this bailout plan taught us. interest didn't last one cycle. >> david kelly, what do you -- how do you look at the market reaction today? what does it tell you in terms of where we are going in europe? >> i think the problem is that the -- spanish bank problem cess enly financial problem. but the greek problem is a political problem. when europe is being -- they can find solutions to financial problems, they just aren't able to deal wit

rick santelli's tracking the action at the cme.nder whether the stock market anyway doesn't have it hopes up for too much from bernanke. what is the bond market telegraphing you about -- to you about what they expect from mr. bernanke tomorrow? >> well, as you look at these two-day charts of 5s, 10s and 30s and the address is 487 up 4 on 5s, up 8 on 10s, up 7 on 30s. traders down here are suspect. they're really thinking more of an illusion on the fed in terms of what the more twist will really accomplish. here's what they also think. we don't have a meeting until the 19th, 20th. they agree with shac they might not extend the twist. he could in essence talk this up and essentially build in a stock cushion. whether he does anything is the question. the dollar chart, it's getting hurt. looking at silver, gold, crb, goldman sachs commodity index, it's hard to separate the impact of the discussion we're having about the fed and what it's doing to the dollar, potentially stocks and of course dollar denominated commodities. back to you,

meantime, rick santelli, very much a safe haven play day today. isn't it? >> yeah. you know, we con top see all of the good quality sovereigns, whether it is treasuries and you can look at the intraday chart down six, seven basis points, whether it is boon's, down an even dozen basis points. or the fact that spain, what you just talked about, up an even 25 basis points. no matter how you slice it, our guest just said the summit thursday and friday is going to be important. well, george sorros thinks so, too. for all the reasons, don't see solutions but see a lot of people running around much faster buzzing around and trying to get to that point but nothing seems to be in their crosshairs. >> let's get back to this earnings. i think this is a really important point that you bring up because we are focused on europe and focused on the slowdown in china. at the end of the day we care about the multinationals that have been doing well with all these cash on the balance sheets. whether or not expectations have gotten too high, how much might estimates come down going int

first inspired by rick santelli and then organized a rally in georgia in which she brought together people has been a champion for the values that we care about so dearly in heritage. >> thank you to you. >> okay, so while many in congress were not asking about the constitutionality of obama care, people around the country were. and we have maintained that the law is unconstitutional, especially the individual mandate, and when we have seen from polling that 80% of americans think the individual mandate is unconstitutional, clearly the people in the tea party movement and the people in the room are making a difference and we are bringing our attention as a nation back to our founding document. to the constitution. and that is what we are doing at tea party patriots, our core values have remained the same since we started. fiscal responsibility. constitutionally limited government and free markets. we are working this year to make sure that we create a mandate for the core values. so, if what congressman jordan eluded to happens in november and voters vote for republicans to maintain contro

let's check in with rick santelli in chicago and see what's happening there.we have richard evans, aka dick evans. he's from cullen frost bank in texas. welcome, dick. >> thank you. it's a pleasure to be here. >> you know, i want to start off right at the top. your bank was formed several years after the end of the civil war. i believe in 1868. >> that's correct. >> and when you go out on the road, you get an applause. and you get an applause for an interesting fact. what do you say that garners applause when you're on the road, dick? >> well, we didn't take t.a.r.p. money. we were the first to say thanks, but no thanks. >> now, you stopped making loans in real estate and, to some extent, other loans like some of the sub prime auto loans and the like before the credit crisis. is that not true? >> what we did, we made a decision in the year 2000 to stop making residential mortgage loans. we continued to make commercial loans. but it didn't fit with our mission statement of growing long-term relationships. and we felt the mortgage business had become a commodity

rick santelli, always good to see you. thanks for having us in your lovely city. >> thank you, it is a great city, isn't it? chicago! >> it really is. it really is. all right. well, rick had said something to the effect of it may not do anything at the end of the day, but isn't it a great thing for investor confidence to see the fed, the ecb and pboc say essentially that we will step in if things get bad and shouldn't that be a lift for investor confidence at least? >> he made a point how bad must things be in order to have this consolidated -- >> we have a central bank backstop. >> i'm not sure that you do anymore. >> okay. >> my sense is if the fed acts again you get a one-day knee dark jerk reaction to the upside and i think it will be short lived and this time the markets could actually crater. again, how bad must the world be and the u.s. be for us to go down these roads, and rick talks about that all the time. i'm not nearly as optimistic as i would want to be, and i fear that the markets, again, if we technically br

let's shift to bonds and the dollar, rick santelli. rick, take over. >>. >> i'll tell you what, jim, i think we'll have to do a part 2 to that. install some of those natural gas pumps people can put in their garages. listen, if we look at treasuries, they're certainly getting cheaper. once again, look at a chart over the last 24 hours. and you can see, yields are down from 164-157. but what's really fascinating is the weekly comp. if you open it up to the entire week, last friday, we settled at the close of 1:45. but maybe the biggest news of the week was, of course, how the markets are weighing for ben bernanke and whether there's going to be an extension to any accommodation programs. anything can happen on the 20th when the statement is read. however, the dollar index up almost three quarters of a percent. why becau why? because it's probably not going to be the punching bag that always seems to hit the dollar when the fed decides that the combination isn't quite big enough. >>> now, lelt's . >> what we saw from bernanke yesterday,

heel of the whistleblower loses his battle against extradition to sweden in britain supreme court santelli supporters mentioning the u.s. to face espionage charges in the making of american diplomatic cables. next we bring you the disturbing story of how the u.s. military used highly toxic herbicide chemicals and vietnam and even a devastating legacy. the u.s. air force kept detailed records of this.

. >> rick, santelli, how about our own market response in this country, our rates higher today. >> yeah, rates are a a little higher today, three or four basis points, but they're basically unchanged on the week. i think both of our guests including michelle on europe, they had a lot of great ideas, it's bringing it to the market that counts, and i think there is a bill ral of brandon in effect. we have the jobs report on friday, and believe me i think especially after last week's poultry numbers, that will be a number for the market. it will be a bigger run up in races for that safe harbor temporaryily reversed. >> yes, that will be an important report. will we see this come back continue in the second half? we'll get to keith coming up, stephanie, what's your thought, gdp important on the heels of those jobs numbers? what are your expectations for friday, a week from today, and that gdp report. >> i think we get through china's data over the weekend. that will be very, very important to me. e want to see how bad the numbers are and do they continue to ease. my guess is they do over ti

in the "closing bell" exchange, we have brian shactman, and rick santelli, rick, i'm going to get to you about germany being down grated from a plus to aa minus. was this expected at all? >> it wasn't expected today. there has been questions on going that as germany continues to be the focal point that this type of issue would arise, but the markets didn't have a huge move. i think at this point when you're the tallest mountain on the landscape, no matter if it'sal enough for some and not for others, it seems impervious to these headlines. investor relative value, looking at germany, is still mighty fin when you contrast it to markets like in portugal, spain, and italy. >> we're seeing two of your notes, how was that actiuction? >> it was very boring, 60% was taken by dealers, and it makes these a little more difficult than they used to be. >> we were just talking before we went on the air here, this is a very headline driven market right now, it must be exhausting for money managers right now. >> we're going crazy. my hair was push black about two years ago. it's very difficult and

rick santelli has a refresher what the twist is and what it may do for the markets. >> you know what, i agree with your metaphor and analogy, but whether it works or not, and what long term prognosis is, and if we get a little time for the operation and how the markets respond, let's leave that judgment for somebody else. it got it's name flt first time it was used in the kennedy administration. the yield curve is normally upward sloping and purchasing longer dated treasuries and selling shorter treasuries and twisting the loan curve. but the action of just buying is what we deem unsterilized, and market participants get their hair up a bit on it. the sterileization process of buying an equal amount of longer maturities and selling that same amount of short maturities make it a little less sinful for those that don't like market involvement by the federal reserve. if the operation works or not, we see markets get used to these programs. they assimilate and accommodate, and when you talk about extending this program that is meant to keep rates low, it's a positive for riskier trades li

we have mary thompson, steve leisman, doug pebels, and rick santelli. >> did you say steve? yes, there he is. it appears the markets are suffering and asking the question you were asking yesterday. why not be more aggressive to help prop up the economy? >> i think that's right, but i think there's more on the markets now. i think part of what's on the market's mind is the global downturn. what we saw with the chinese pmi, those are worry some numbers. i challenge the group here. tell me a story where the u.s. grows at 3%, and where job growth goes 150,000 to 200,000 a month. it's a very difficult story to tell right now with the underlying data we have seen. it's based solely on oil prices and i can't tell it from there. >> don i want to get your take on whether or not this is going to have a big impact on the banks. we knew this was coming, we were expecting it after the close tonight, but we have been talking about it for months. >> that's right. >> so how much is it priced in or not. i'm looking at the major banks that are down between 1% and 3% a piece. >> i think what w

we have rick santelli and steve leisman. >> i think we were oversold yesterday. a week ago, we thought we would get potential global easing if greece was not successful in terms of their elections. that didn't happen. then we thought the fed would do more than twist on wednesday. at the same time the markets rallied 6.5% into these events. i don't think a lot of it is new. we have been decelerating since march. it's just a reality that we're slow but we took a big dip and i think there were value togs be had. >> i think there is a pretty good khorus out there, if you can think it today you should write it today. if you think you need help today there are many that think they should do it today. i wonder if there is a negotiation going on with congress and ben ber nak -- bernanke. he could do qe 3. >> you have the decision on health care and a lot of issues that will be front and center in a very short period of time. i think you're right. i think this cliff is among the big issues here in terms of what happens next and dictating policy. >> i want to add something

. >> we have marry thompson, rick santelli, jeff cox, and the ceo of john thompson financial. do you believe in the market rally. this is the week we were supposed to see the saving of the euro. >> i think this is just the beginning. there's a lot of notion out there, people very concerned that the crisis in the european union will get worse. you have them talking about how in three days, here we are, the markets are up, green on the screen, banks making their payments. >> why are people not scared? >> they're looking at past, they're looking at a win in the white house, and they're confident. >> why is the euro -- >> why are boom rates higher which is a bigger question for a fixed income guide but all of the answers are the same in my minute. in front of tomorrow's summit there is not a lot of opt musm. i think when you put all of that together, there's a little bit of safety in our equity still, but with the ten year spread tightening seven basis points from a difference of 12 to a difference of five, five in our favor, there's a notion out there that there is an entity or g

let's check in with rick santelli. >> i'm not fond of talking about europe. i don't know about you viewers and listeners, i hear plan after plan. supporter, how long has this stuff going on with greece thinking he would tell me three, three and a half years. he said since 1838, he believes that was their first default. it's hard to take the euro karat crats, technocrats, finance ministers, maybe the only person angela merkel. they reversed. one thing sarkozy did raising the rate, lowering it down. talking about reforms. not reforms going in a market friendly direction. these are reforms trying to perpetuate the welfare state. this really is in many ways europe's noble quest, which made me and a lot of my friends think of a great movie in 1975, the holy grail. but in this case, the issue really isn't the quest and trying to arrive at the holy grail, it may be more of a holy fail. now, as you watch the scenes from that famous monty python movie, let's try to set the stage. you can't help but find humor in this. you have the knights of the roundtable coming in o

in today's "closing bell" exchange, we welcome back our own rick santelli and steve liesman.ve peter and mark and martin let's start with you. we are concerned about europe. we are concerned about the economy but we have the best week of the year for the stock market. what am i missing here? >> we're getting saved by politicians in the bailout world. >> you don't really mean that, peter. you're being sarcastic? >> i am truly not being sarcastic. spain will likely get a bank bailout. china cut interest rates. and if need be, and i don't think the s&p should be a 1310. with the help of central banks and money printing, that's why we are here. >> why would you even question -- >> you sound like you're on the other side of that trade, steve? >> no, i think what happened is the market smelled or priced in what has come true now. the market may be moving on to the next item. peter is right, though. i think what will happen, peter, is it's going to fall short of any kind of comprehensive deal. is europe going to solve the problem. >> what is wrong. >> you have all of the central ban