he'sary motyl chief investment ficer at templeton global equity >> sus: just a few years ago, everyone w jumping on the ethanol bandwagon, but gasole prices dropped and cdit costs soared. now, ethanol is being back- burner. >> paul: i'm pl kangas. >> sie: and i'm susie gharib. this is "nightly busess report" for iday, july 17. "nightly business port" is madpossible by: this program wasade possible by contributions to yourbs station fr viewers like you. thank you. susie: good evening, everyo. the economy is impreive again. that'shat president obama's top economic adver lawrence >>> go higher in the months ahead but says thadoesn't mean the stimulus effort has failed. instead, he bieves t policy help saved the economy. >>. >> if were at the brinkf castrophe at the beginning of the year,e've walked some substantial distance back from e abyss >> susiebut a major part of the administration's agea could se new economic challengeshealthcare reform. late todaypresident obama said his healthcare orhaul cannot add to the federal deficitnd means it. joining usow for how that could affe what's ahe

's gary motyl chief investme officer at templeton globa eqty. >>usie: just a few years ago, everyo was jumping on the ethanol bandwagon, but goline prices dropped a credit costs soared. w, ethanol is being back- burner. >> paul: i'm paukangas. >> sus: and i'm susie gharib. this is "nightly busins report" for fray, july 17. "nightly business rert" is made ssible by: this program was me possible by contributions to your p station fromiewers like you. thank you. >>usie: good evening, everyone the economy is impresse again. that's wt president obama's top economic advis lawrence >>go higher in the months ahead but says that don't mean the imulus effort has failed. instead, he belies the policy helped sed the economy. >>. >> if we we at the brink of catastphe at theeginning of the year, we' walked some substantial distance back from th abyss. >> susie: t a major part of the administration's agend could po new economic challenges: althcare reform. late today, esident obama said his healthcare oveaul cannot add to the federal deficit a heeans it. joini

. >> paul: tomorrow, our friday market monitor guest is gary motyl chief investment officer at templeton global equity. >> susie: u.s. homebuilders are starting to feel better about the housing market. the national association of homebuilders said today its confidence index inched up slightly from june to july. that's due in part to low interest rates and incentives boosting sales of new single family homes. july's reading of "17" is the highest since last september. but it's still well below "50," which shows market conditions as favorable for sales. >> paul: meanwhile, home foreclosures are still hitting record levels, despite the adminstration's $75 billion plan to help homeowners at risk. over the last six months, one in 84 households got a foreclosure- related notice, a 15% rise from last year. that's according to foreclosure listing service realty-trac. >> susie: with the failure of small business lender c.i.t. group on the horizon, many people are wondering why talks for additional federal help failed. tonight's "two ways to play" has two takes on whether c.i.t. is too small to sa

rich templeton, thank you so much for joining us today. we appreciate your insight. >> it was great to be here. >> the pros and cons in the housing sector. some recent data offering a glimmer of hope for real estate. but are we really seeing a bottom in we're going to see if there are really signs of life in the housing sector. that's coming up next. oof! i hope he has that insurance. aflac! you really need it these days. how come? well if you're hurt and can't work it pays you cash... yeah to help with everyday bills like gas, the mortgage... ...and groceries. it's like insurance for daily living. so...what's it called? uhhhhh aflaaac!!!! oh yeah! that's it! aflac. we've got you under our wing. a-a-a-aflaaac! he. >>> the mortgage bankers association reports mortgage applications fell 6.3% last week. that's because rising rates for a 30-year home loan inched up, resulting in an 11% drop in refinancing. cnbc's diana olick has more on what those numbers and the rest of the data we've gotten this week is saying about the state of the housing

senior vice president of the john templeton foundation with an oxford doctorate on cosmology and time, chuck pushes boundaries in science and theology. >>in looking at a question like, "what is the cause of the universe, it is probably wise to deal with it more complexity than we are accustomed to. we can take a lesson from aristotle a long time ago. aristotle taught that there are multiple causes to say...take an example of a table - he would say that there is a material cause, that is often wood. the wood is the cause of the table. knock on it and that is the material cause. but there is also a cause which would be what he would call the efficient cause, what causes the table to come into existence. that would be a factory. the people that made the table at a certain time and a certain place. that is the efficient cause. then there is the formal cause of the table. what causes the form to be. at the factory there is a...there are settings, there are blueprints, there are plans for the creation of the table and then there is the purpose for the table. that is that we would have convi

pendleton which was named for the confederate commander of the vicksburg army of 40,000 men, john templeton who happen to be a philadelphia yankee, who also happens to be the confederate lieutenant-general who had gone to west point but fallen in love with a lady from a virginia. she somehow persuaded him for u.s. otherwise persuaded to go south. unfortunately he did not have combat experience but a u.s. a pretty smart guy with the problem was in decision. i am getting out my point. there they are at four pendleton with his bigamous yankee gunboats that were 160 feet long, armor and with great big guns and the fort was a little but as it san with some condos around it with a had a couple of these rifles which britain has sold them. in the rifle is a cannon, it was a big gun, but the thing was as opposed to the smooth things we can't quite tell it is going to go. and these federal army's command navy's proceeding army ran into a buzz saw because they were at the wrong and of the artillery. the guys at fort pendleton was up to your atwater, the guys working in the guns. but is free to have it

i would tell you, they tend to own real good proven bond managers like pimlico, franklin templeton, et cetera. >> what's your own take on the world right now? >> my own take on the world is that it's still suffering, obviously, while unemployment may be a lagging economic indicator, it's for real when you're one of the unemployed. it frightens everyone around them. all of us in the corporate world, of course, have been focused on reducing expenses. and attempting to maintain some degree of profitability and certainly free cash in an environment where the availability of lending capital is questionable. so, you know, i don't think we're totally out of this until attitudes change. i think it's going to be probably a slow period coming out and we're going toton have some volatility in the market. >> a couple things on the company. your great old company. first, your earnings came out better than the street thought. the revenues underperformed. i want to ask you, what's an operation like yours do to build up revenues? what's the strategy in the next year? >> the prime strategy is to grow p

by -- templeton mason did that one, yeah.this one here is -- these are bromance novels. all right? let's take another look here. "they pawed each other with wild, sweaty abandon. glistening limbs flailing about. legs entwined, switching positions, taking turns on the bottom but aching to finish on top." "grappling with destiny" by stephen mclane. [ laughter ] i like his stuff. all right. i have all of his books. i have all of his books. he's great. [ laughter ] let's see this one here. this one sounds good. "their two bodies pressed against each other hard, nose to nose, mouth to mouth, almost tasting each other's breath. then another slid between, a chance encounter ending in a three-dude manwich." it's called "dude, he ain't with it, bro." [ laughter ] by myron thronflower. he's being a good bro by looking out for his other bro like any good bro would do for his bro. pretty good. try this one here. this one looks like a good beach read. "it was a night filled with tender experimentation. what mason and chaz shared together

about dividend yielding stocks, joining us is lea lisa myers, oversees $11.5 million including the templeton fund. good to have you here. >> good to be here. >> buying any health care stocks? >> seriously, are you? >> really tempton as a whole has been over -- health care, the stuff you have been talking about for a long time, generic competition, all of that has been priced in. >> obama care putting extra pressure on them. there's still of the highest flow flow yielding in the market. long term value investors based on what they can produce longer term. we're an aging demographic around the world. these countries have the highest structures, we heard able to cut costs. >> you get a lot of microsoft as well. what do you think of the deal with yahoo!? >> again, we like microsoft as a broader part of liking technology for the same reasons we like health care, high free cash flow yield. $31 billion on the balance sheet, global company able to invest -- >> buying technology for dividends. >> not all technology, but certainly there's a broad spectrum that we are able to participate in. microsoft

franklin templeton investment left those two-month talks this weekend because of differences within thes the deal's on track, but others suggest the process might be up to some other bidders. cit group working out the deals of a federal aid package. the journal says customers drained $750 million from cit by drawing down their credit lines in the last two days. now u.s. officials are said to be considering giving the company a temporary loan as part of an aid package to help the lender avoid collapse. another option might be giving cit access to the fed's discount window. we're back to that.. >> yeah. this is a great story. we could talk about this the entire time. what do you do? we don't know what to do with cit at this point. both sides have -- >> plus we've sunk about $2.3 billion into the t.a.r.p. company. the taxpayer being on the line for at least that much money. >> and we know we want to get unemployment down.n. >> yep. >> and if you cut off the biggest lender of small businesses, how do you get it -- how do you deal with unemployment by 2010? >> i don't have the answer. >> by