thanks robert shiller, author and economist. thanks to our audience here and on the radio and television and the internet. i'm corey johnson from the common -- commonwealth club of california. the meeting is adjourned. >> i will sign books right here. >> up next from oklahoma city, george henderson details the challenges he faces one of the earliest african-american academics at oklahoma university. his book is race and the university. >> at first i thought well, i finally made it, mom. here i am in a nice quiet suburban university, no problems. life is going to be idyllic. wrong. i found out that this is the son downtown, that we were not allowed to be here after dark. wiki, and work that african-americans had to get out of town before the sun went down. i also found out that we have are the first african-americans to own a home. there were some people who did not want us here. a lot of people did not want us here and then there was issue students. some of them had never been exposed to an african-american professor. they were

that was well-known economist robert shiller of the case-shiller index.hat was on cnbc europe earlier this week. so is the global economy really in the midst of a late, great depression? well, i sat down with professional schiller, who by the way famously predicted two big bubbles in tech stocks and housing prices. also, he does have a new book out called "finance and the good society." here is what he had to say. please take a listen. >> let me just ask you. you are now famously quoted, okay. you're famously quoted as saying we are in a state of late, great depression. i don't know what that means. it sounds very scary. what are you trying to tell me? >> did i say that? >> yes. you were quoted in reuters and others. >> i think there are a lot of analogies to what we've been going through to that of the great depression. but i don't think we're really in a depression. so i must have said it slightly wrong. but certainly we have, for example, the lowest interest rates ever. long-term and short-term are at depression levels. so there is other examples as we

. >> reporter: at a first glance, the s&p/case-shiller home price numbers today are mixed, basically flat or just a tiny increase in march from the month before. but add that news with other recent reports showing strong housing starts, homes sales and rising builder sentiment, and you get a pattern. >> what you see is a pattern of increasing stability, maybe even hints of gathering strength. >> reporter: the s&p case shiller index shows prices in the top 20 cities rose 0.1% in march after rising 0.2% in february. look deeper, and the news gets better. prices fell in four cities in march but rose in 16 others. >> don't celebrate yet, but at least have some serious hopes. >> reporter: here's the hope: for the last six years, housing has been dragging down the economy, but that may finally be changing. in the first three months of this year, residential construction was one of the top drivers of growth. new construction added almost 0.4% to g.d.p. in the first quarter. >> we are going into this nice, virtuous cycle where the economy is helping housing, housing is helping the economy. >

is only part-time they are allowed another job at the same time >some like former alderman helen shillerater behind-the- scenes she and others went along with deal to base pensions on the highest salary. then the retired alderman tom allen his job after appointed cook county judge couple of years ago. something he thought about for a long time even seeking advice from the pension board how it might benefit him judges getting sweeter deal 85 percent of salary. unlike most of us in the private sector start in scratch government workers get to take their years with them by combining years stan tom allen said to make a $4.2 million over expected lifetime from aldermanic pension and if he works 12 more years as a judge he will earn another pension based on $178,000 salary once he retires. >> that happened way before i was here not going to wear the hat for something i did not have a handle in making >> takes powerful alderman to change things about the aldermanic process. ed burke and i along with others are looking into this but again we have to do that at a state level >> regardless of what

. >> new developments in the maryland robert shiller call -- robocall scandal. >> instance from the election day calls of bob ehrlich. >> the stage set for the presidential election. he only needed the aid in the delicate. texas offers one under 52. -- 152. >> ms. duffy will be sworn in as the new council member. he won the election last month to replace harry thomas jr.. he pleaded guilty to embezzling money from the city. they drop hints on the company. >> good morning. >> let's begin with the ceo. he had a lot to say about the conference. he did confirm television is an area of intense focus. it is released in 2013. he said that apple has great appreciation. on facebook, but they just received a second request notice from the federal trade commission over the $1 billion deal for buying instagram. they're seen whether it violates any antitrust laws. >> this will be the blackberry first since 2004. united continental is being sued over racial discrimination. i will have all those coming up. reporting for abc 7 news. >> all right. we will talk to using. >> it is 16 degrees. >>> still to come

this is from case shiller, hot off the press this morning.ng about the national housing price composite now in its lowest level since the crisis -- lowest level since the housing crisis began in 2006. now, we're used to the idea of around here housing prices at least in some zip codes going up, but if you look at the national level, it is still a mess out there. san francisco specifically actually gained 1% in the last month measured. though the san francisco market, which does not include the south bay is still down 3% for the year. >>> looking at wall street, the dow industrials are up 111 points this morning, facebook continues to slide, facebook is down to about $30 a share off about 4%. back to you. >> started at 38 too. >>> one final check on your weather as you head out the door, and christina loren always delivers. >> hopefully you like the warmer weather headed in the right direction temperature wise if that's the case. temperatures today are going to be about 3 to 5 degrees warmer than where we were yesterday. and then as we head th

in the 20-city s&p case shiller index. the gross dome domestic product is released. gdp, the broadest measure. typically a market mover. the big market moreoverer of all. friday, the 1st of june, total auto sales for the last month are out, as is the highly anticipated latest employment report from the labor department. that tells us how many jobs the economy gained or lost in the month of may. finally, does the world have a new wealthiest woman? australian mining magnate gina rinehart is worth more than $29 billion. according to an aussie annual ranking on wealth. rinehart makes some $600 a second on the rising price of commodities. a substantial asian investment in iron ore net her nearly $20 billion last year alone. putting rinehart ahead of american christie walton, the walmart heiress worth some $25 billion. that's the show for today. thank you so much for being with me. next week, a look at the jobs numbers. what will it take to put a debt in the unemployment rate in this country? keep it right here where wall street meets main street. have a great week, everyb

marshall plan for europe and there is a way to rescue both the euro and to rescue greece and dr robert shillerou know of irrational exuberance same wrote a wonderful last sunday op ed piece in last sunday's new york times not this sunday in the bin which he said that we shouldn't be thinking of an austerity measure where everything gets tight at once when they when there's a recession and people can't create demand can't spend the money then the government has suspended well there are. there are some famous economists including . something as economists here in this country who have studied this problem and what they said was that if you. if you increase expenditures by the expenditures by the same amount you increase taxes you increase national income and that doesn't increase debt so that advocate i think you can reach that if the greeks are going to raise you have to reserve taxes of the spanish and the and italians if they would spend an equal amount as they raise their taxes there's no increase in debt and it spurs growth but there is really growth as a painless way to get out of this mes

but today investors will get the mark case shiller home price index.pected to show prices fell 2.5% year on year. and we're get may consumer confidence expected to tick up just slightly. and it could also be a big day for mitt romney. he's expected to collect the remaining delegates needed to secure the nomination. >> and the spanish government likely to adopt new mechanisms to back the region's debt. strict regional control. >> and speaking of spain, reuters reporting regarding bankia in particular, we're getting details on what the bank recapitalization might look like. reuters saying spain is likely to recapitalize through new debt issuances, but not by necessarily injecting bonds directly into the lender which would raise broader concerns about the roll of european central bank. >> let's get more on that. anna, nice to see you. while we wait for the greek election, it seems whatever happens with greece, spain is going down a certain path. how is it going to win when they still haven't got to the godden to the bottom and the spin off through the ban

all-important jobs report coming on friday morning bfrp that we'll get key economic news on the case-shillerconsumer confidence and construction spending. we will also get a revised reading, a first quarter gdp. that's the broadest measure of how much the economy is growing. we'll track all of that on cnn money. >>> i'm a.j. hammer. here's what we're watching this week. "showbiz tonight" is on location at one of my favorite shows "true blood," and i go one on one with the always provocative marlene cho. get ready for a freakin' hilarious show. you do not want to miss. >>> the nba playoffs are down to the final four. our jamaal anderson is back to give us a preview, plus he gets an nfl draft pick to talk politics? and we want you to stay connected to cnn even when you're on the go. so go to your phone or your desktop or laptop. you can also watch cnn live. pizza!!!!! [ garth ] olaf's small business earns 2% cash back on every purchase, every day! put it on my spark card! [ high-pitched ] nice doin' business with you! [ garth ] why settle for less? great businesses deserve the most rewards! aw

despite the disappointing consumer confidence number and lack luster numbers from case shiller, with three days of trading left in may, have investors made a mistake by selling in may? according to the firm's study, the strategy costs investors nearly 17% in 2010. 14% in 2011. brian joins me now. good to see you all. thank you for joining us. let's talk about that in terms of sell in may and go away. it hasn't worked. >> well, it's worked over the short term, maria. we think investors have the short-term muscle memory because it happened in 2010, 2011 in terms of the market scoring its peak for the year during those time frames. as you know, investing takes time and process. and so we think too many people are focused too short term and instead should be really focusing more on the longer term disciplines and what the crux of today's piece was all about was stay invested longer term because invest are matters and process matters. so to try to sell stocks at the peak and buy stocks at the bottom, you know as well as i do, that rarely happens over time. >> brian, do you agree with that

and kay shiller says home interest fell for the first time in two quarters.hardball." i'm in texas today where the heart of all this dirty, angry money is coming from. texas millionaires and billionaires have given more money to the super pac to restore our future. an american crossroads which is called roads group. why would somebody give millions of dollars to give to president obama? the answer is certainly business. you see romney sitting right there in the oval office. the latest issue of rolling stone has some of them, but should the voice of billionaires count more than business? executives of rolling stone and chi chiefmemo.com. why don't you run through a couple of these characters. let's start with this texas business guy, a real tycoon, ar harold simmons, has given more than $16 million and to the pro-romney group restore our future. according to bloomberg, an underground dump in west texas for radioactive material, it could be worth billions to him. follow up on that. harold simmons, what's he got to gain by getting romney where he wants him in th

according to case-shiller, falling 2% in that period of time. >>> coming up next on "power lunch," londons, new york or none of them? the rich are playing musical chairs when it comes to where they choose to live. where they're moving and why, when we come back. [ female announcer ] it's time for the annual shareholders meeting. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just need the right professional to help you take charge. ♪ >>> all right. coming up on "street signs," want to get into bank stocks but avoid the troubles of the big guys? we've got some regional, the smaller ones for your buy list. >>> battleground jc penney. what else? you heard earlier this hour a big hedge fund guy joined herb in the bull camp. next hour herb will defend his reasons to bet on a jcp turn around despite its recent slump. >>> we were asking you, should facebook buy research in motion? vote yes or no. no maybes. streetsigns.cnb

the s&p case-shiller home price index is an interesting one. it did not show an increase.t showed the slowest decline in housing prices in over a year. the markets are seeing some hope in that move. you've got some of those housing stocks a little higher. just continuing their year to date run. some of them have been very impressive. toll brothers i know up 40% year to date. lennar up 44% so far in 2012. >> thank you for that, courtney. i also want to mention something else which i'm sure is also harmful to retail investor sentiment right now. that is facebook. it is below $29. sitting at $28.91. we're going to talk a whole lot more about facebook later on in the show. >>> in the meantime, over to bonds. rick, i mean, i'm sure the spanish banking problems and all the european issues whirring away in the background are keeping some safe haven buying. to what extent has the bond market buying been held back by what does seem to be at least for today a global market stock rally? >> even with the global market stock rally, the treasuries still are finding that passengers want

before that, though, we'll get some key economic news including the latest case-shiller index on homes the country and a look at consumer confidence and construction spending. we will also get a revised reading of first-quarter gdp, that is the broadest measure of how much the u.s. economy is growing. we'll track that and all of the business news of the week for you on cnn money. >> i'm "showbiz tonight's" a.j. hammer. here's what we're watching this week. "showbiz" is on location at the fifth season premiere of one of my favorite shows, "true blood" and i go one-on-one with the always provocative margaret cho. get ready for a freaking hilarious "showbiz tonight" interview you do not want to miss at 11:00 p.m. eastern and pacific on hln. >>> we move now to syria. the recent attack in houla resulted in the deaths of more than 100 civilians, nearly half of them children. we have to warn you that we're about to show you some images of those children. the images are disturbing and not appropriate for all viewers, but we believe that, given the nature of the attack and the number of dead c

last several months from big players in real estate, whether it's, you know, what, ackman, buffett, shiller. >> well, buffett's been making them for years now, but for the others coming on, that's very positive. >>> coming up on "the halftime report," trading on twitter, and should you be wary of groupon's comeback? our traders make the call when we come back. >>> 15 minutes of fame? we can't promise that, but what about 15 seconds on "fast money"? go to tout.com/cnbcfastmoney and submit a video question for the traders. we'll play the best questions on air. download the tout app to your smartphone or submit from your computer, #askfast. looking for a better place to put your cash? here's one you may not have thought of: fidelity. now you don't have to go to a bank to get the things you want from a bank. like no-fee atms -- all over the world. free checkwriting and mobile deposits. now, depositing a check is as easy as taking a picture. free online bill payments. a highly acclaimed credit card with 2% cash back into your fidelity account. open a fidelity cash management account today and di

. >>> next on the "kudlow report," robert shiller, the man who called the tech bubble and the housingble. he says now is the time to buy. what is he seeing? he tells news "the kudlow report," up next. may seem likef of fairy tales. but if you take away the faces on the trees... take away the pixie dust. take away the singing animals, and the storybook narrator... [ man ] you're left with more electric trucks. more recycled shipping materials... and a growing number of lower emissions planes... which still makes for a pretty enchanted tale. ♪ la la la [ man ] whoops, forgot one... [ male announcer ] sustainable solutions. fedex. solutions that matter. introducing gold choice. the freedom you can only get from hertz to keep the car you reserved or simply choose another. and it's free. ya know, for whoever you are that day. it's just another way you'll be traveling at the speed of hertz. yeah, scott. i was just about to use... that's a bunch of ground-up paper, lad! scotts ez seed absorbs and holds water better. it's guaranteed to grow grass anywhere, even if you miss a day of watering.

i was a naysayer with bob shiller. >> yes, i remember. >> i would say the problem with facebook is, onend two, facebook internalities. when i talk about externalities, i think the overriding concern with investors today is not -- it's not the pathway or the gateway to the internet, facebook, but rather greece and problems with the peripheral countries in europe. >> hey, let me ask you, i mean, there's got to be some trepidation to put it mildly on what to do now that it's trading right at the offer price here. their job is to keep it here. do you think they will, doug cass? >> that would be a guess, bill. i think one of the second problems with the stock was the placement of the stock. not only the size which approached $20 billion, but it had a disproportionate amount of retail placement and i think that the retail investors got fidgety. >> do you blame them? >> i don't think even 3% read the prospectus. >> that's the user base. >> right. the only -- the problem with this issuance and we have seen this before in recent ipos is that there are the structural issues facing the exchanges w

we'll get a consumer confidence number plus the case-shiller housing number.covery in the housing market. it has been beaten down so badly. many of you are saying don't say housing is getting better. my house is not up in value. you might be right. we're seeing the first spring selling season start to perc up since the crash. stocks are higher in europe over positive economic news out of japan and hopes that china will embark on a stimulus. may has been a terrible month for your 401 k. i hate to be the bearer of bad news but since may 1st it's been a down market. only four days higher for stocks in the whole month of may. that hasn't happened for a month since 1903 that you've only had four higher days. i know. some are saying that the next few days as you close out the month you could see stocks doing better. the dow is down 6% so far this year. it's been a stuff start to the year. feels a lot like last year. we had this sell in may go away feeling. if you were right last year and you are right this year. >> is the year okay? >> down 6%. >> the year is down 6

on the calendar for tuesday is the case-shiller home price index. quarter gdp. leading up to friday, for the may jobs report. joining me with the early read is "new york times" economics reporter, katherine rampell. are you out west in san jose? >> i am, i'm visiting family, going to see my atwo adorable nephews in california. >> thank you for taking some time out of what would have been a holiday weekend. what are you hearing for the home price index and consumer confidence on tuesday? >> consumer confidence i'm hearing is supposed to be up a hair, i would say on softening gas prices. the home prices, that's expected to again be down year over year. but down less than it had been. it's one of these things, been down so long, starts to look like up. people are getting a little bit more excited, i guess. but still not good news. >> with consumer confidence being up. how does it affect the economy? >> well, the hope is that if consumers have a better outlook on what's going on, they'll start to spend more money. if they spend more money, businesses ge

construction number which was up 19% from previous quarter, and when you couple that with the case-shillerhousing price series which if you read it care through, you can say -- if you read it carefully, you can say, well, it looks like the bottom has been reached might suggest that the housing market is actually a source of recovery, and this gets added to consumer expenditures which have been, were very strong in the data. so if we could get business to come along, and this is the point that you're making, if we get business to come along, maybe this recovery is alive and well. >> vince? >> so do not count out the resilience of a market economy. market economies, basically, want to grow unless they're impeded. but here's the problem, the world's a risky place. there's an ongoing sovereign and banking crisis in europe, there is a risk of elevated energy prices because of events in the middle east, and we face a fiscal cliff on december 31st. our politicians have dug the equivalent of a five percentage point worth of gdp hole. in a world in which you have such uncertainties, investors reaso

atlanta was one of the worst offenders on the latest sarah palin case-shiller home price report, downa year ago putting these high homeowners under water. it's al >> flthere have been short sell as high as $5.5 million in the last year. that property was originally listed at $19 million, i believe. so there are short sales happening in every price range and obviously the higher price range is just as affected. >> reporter: hirsh is listing this house at well over $500,000. short sells, he says, are the newest, latest thing. and they're surging. there were nearly 1,800 short sales in atlanta in january of this year, up 120% from a year ago. and that's on pace for 5,400 here just in q1. why? because banks and realtors are more willing and they're moving more quickly. also fannie mae and freddie mac just announced new rules to answer short sales requests in 30 days. unfortunately, hirsh and others aren't buying that. >> the banks can make all the rules they want. the bankz are to lars are too l that nimble. you expect them to turn around in 30 days and give you an answer on whether they

construction number which was up 19% from previous quarter, and when you couple that with the case shiller price series which if you read it carefully you can say, well, it looks sort of like the bottom is believable, but the bottom has been reached which might suggest that the housing market actually is a source of recovery. and this getting added to consumer expenditures which have been, were very strong in the data. so if we could get business to come along, and this is the point that you're making, if you get business to come along, maybe this recovery is alive and well. >> vince? >> so do not count out the resilience of a market economy. market economies, basically, want to grow unless they're impeded. but here's the problem, the world's a risky place. there's an ongoing sovereign and banking crisis in europe, there is a risk of elevated energy prices because of events in the middle east, and we face a fiscal cliff on december 31st. our politicians have dug the equivalent of a five percentage point worth of gdp hole. in a world in which you have such uncertainty, investors reasonably

not the purity of model making or behavioral economics of bob shiller as he searches for a good society, cultural economics in europe is different than in america. give us the nuance there not only of peripheral europe, but of eastern europe as they try to amend to the culture of germany. >> well, look at east and west germany. you had, basically, essentially two countries starting at the end of world war ii, essentially, from scratch. and same language, same culture, same history. and they grew up, obviously, when the berlin wall came down, the productivity level in if east germany was one-third that of west germany. and then when the merger occurred, there was the recognition that it was going to take a significant transfer of funds from west germany to east germany to maintain the system. that flow is still going on. it hasn't fully come together. in europe it's even a broader, more difficult problem. i did an op-ed piece for the "financial times," oh, maybe six months ago, and i've also done an analysis which i've published several different places which really takes the issue of ob