next year, the fed's going to have to start getting active again. k, we're going to see earnings. i think they'll have a big imp douse for the next three or four weeks of this market. >> i still think we're going to trend higher. i don't put too much on a one-day down movement. i think the market's poised to go a little higher. it's anyone's guess. >> and you're right. i won't be here at the very end of the year. we've got two little babies on the way. >> that's great. >> thanks so much, guys. back to the studio. >>> we're going to take you back to the house hearing with chairman ben bernanke once it resumes. >>> in the meantime, the ken lewis exit strategy. we'll talk to whose in line next to lead the big bank. >>> stocks are getting clobbered across the board. market expectations very d disappointed today. the dow is off -- people are disappointed at something out there. >> bank of america says there are contenders to replace ken lewis. kn news of the departure came yesterday. let's talk about what's next and who is next to lead the big bank. thank

. >> paul: with the fed pledging to keep rates low, tonight's "market monitor" guest thinks bonds will stay attractive. he's eric takaha, portfolio manager of franklin templeton's strategic income fund. >> susie: then, so much for chicago. the 2016 olympics go to rio! it becomes the first south american city to host the international sporting event. >> paul: i'm paul kangas. >> susie: and i'm susie gharib. this is "nightly business report" for friday, october 2. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt >> susie: good evening, everyone. the job market news today-- not good. the unemployment rate is now at 9.8% after american businesses cut 263,000 jobs in september, more than economists expected. when you do the math on layoffs, more than seven million people have lost their jobs since the recession began in december 2007. today's gloomy report raises fresh concerns about the outlook for consumer spending and the economic recovery. scott gurvey reports.

the fed chairman saying that the new counsel of regulators, not just the fed, should be the monitors of systemic risk. we'll be right back. >>> let's get straight back into the testimony of the fed chief and house financial services committee. >> is that something we should think about or worry about? >> should think about it. if you look at the airline industry, for example, every major airline has been through bankruptcy at one point or another. and it's been really a process -- >> i'm probably a little bit more worried about the manufacture of the airlines than the operators. i realize there's just really a few left in the world. and if there were failure there, it could be, i would think, systemic. >> tough questions there, it's not just a question of specialization. i think that unfortunately, financial crises, boons and busts, are a longstanding problem of capitalism and they have, i think, a special role in the broader. >> and i agree. and that being the case, are you planning to come forth with a proposal to the congress of how not only we can have a systemic regulator that c

weak economic data and the fed chair hiding the bulls into hiding today.ur fast money crew, the liquidator, joe, john navarian and j.j. what was the reaction to bernanke's comments? he spoke about financial firm regulation. the recession technically ending but there are not still enough jobs out there. what was the reaction compared to the weak economic data we had setting the table for us today? >> i think the economic data had a greater reaction. what mr. bernanke said, people are still trying to figure it out, sort through the information. it came out at lunchtime. i think a lot of traders waited around to see what he would say. we really haven't had much of a move one way or the other. i think the one thing that's the most feared down here is the sort of super regulator, puts another regulation on our trading. >> where we did see his comments really impact the market was in the dollar index. here is what he had to say. >> i agree with two things mr. zoellick said. i believe he said there's no immediate risk to the dollar. it's a relatively long-term is

will consider the country to be in recovery if the unemployment rate is at roughly 9%. >> reporter: the fed chairman was not encouraging. >> i don't have any magic bullets to offer. if i did, i would have offered them by now. one way to mitigate the long- term damage is to try to make sure that those who are out of work for an extended period, don't lose attachment to the labor force and that they do get opportunities to improve their skills and remain employable. >> reporter: with short term interest rates near zero and a balance sheet north of $2 trillion, many economists agree the fed has done all it can do. but vince reinhart, a former senior fed staffer, thinks his old employer could go a bit further. >> if the federal reserve kept the foot on the monetary accelerator at least for a time, then they could provide some more support to spending. >> reporter: reinhart says the fed has two options: delay its now-famous exit plans for a while, or buy more long-term bonds to drive interest rates lower. that might support economic activity, boosting hiring, of course, it might also spook inves

i think the fed is asleep at the switch. they don't understand how the private sector is self-correcting into a better recovery. they are missing. that they're missing the significance of the dollar. if the fed tightens policy early next year, let's say in the winter, not by quarter points, but by half and three quarter points, what kind of problem is stocks going to have? i don't mean quarter point like we had in 2000 what, 3, 4, 5, 6. halves and quarters such as kevin worst suggested. is that next obstacle? >> i think so. i would like to see the fed strengthening the rhetoric, so to speak. fire these little test missiles out there and see what the market does. because there's no question we have a skiddish market. everybody is skiddish. and it is the rally that everybody hates. we hate to love. and we love to hate. but i do think that some time in the early part of next year if the fed just starts saying, you know, the end of the easy money is in sight, then we see what happens with the market. >> is that the point? last q

the adult table. vince, what is today's job report mean for fed policy in your judgment? >> last time chairman bernanke talked about the outlook he said unemployment will stay high for a while. that's consistent with that. that's why they have sent a signal rates will be low. >> they are not going to tighten with unemployment rising and disappointing jobs. >> they never did before. >> they haven't tightened in my lifetime. snoop what does it mean for the markets. are we seeing confusion in the markets as a result of these mixed signals? steve, i'll throw that one to you. >> it's interesting, when i see what the market has done in light of the fed commentary it's followed the statement and they have taken about 20 basis points off of say the one year outlook from where they think fed funds will be. it's caused the curve to take a step down and eased off the timing for rate hikes. >> just quickly. vince, is kevin going to retire from the board? i don't know what his term is left, how many years. is he getting ready for parting shots? >> i don't think so. i think he likes his

separating gdp and labor and the economic issues for us, what this report does is it says the fed willy near zero another number of months. the worry about quantitative easing and exit strategy is deferred. that's why the bond market liked this. >> pushing ahead of the time -- >> more liquidity. >> we have retail sales, other labor indicators you feel like it would confirm your sense that it's not time to write the epitaph of the recovery. >> the one we're waiting for is our own employment friends tren which comes out on 3407monday. that's one we feel good about in terms of it giving us a signal. we'll be watching that one carefully on monday. >> how will you -- i'm a little frustrated here to be honest. every week i spent six years in russia covering an economy that was constantly in the mud, a terrible economy. you just get to a point where 550, 550, 550. oh, 530, back to 550 again. you get a little frustrated again. what would you be looking for in claims that would tell you that payrolls are on a track towards growth? >> i think we just need to see more than this up and down up and

the kind of concern you can expect to he moreften from members of coress. e federal reserve's own focast calls for unemployment of% next year. new jersey's leonardance asked fed chairman ben bernanke whether more could be do to put americans back to rk. >> ian't imagine the american people will conser the country to be in recovy if the unemployment rate ist roughly 9%. >> reporter: the fed chaman was not encouraging. >> i don't have y magic bullets toffer. if i did, i woulhave offered them by no one way to mitigate e long- term damage is to try toake sure thathose who are out of work forn extended period, don't se attachment to the labor rce and that they do get opportunitieto improve their skills and rain employable. >> reporter: with short te inrest rates near zero and a balance sheet nortof $2 trillion, many economists ree thfed has done all it can do. but vince reinrt, a former senior fed staffer, thinks h old employer cou go a bit further. >> ithe federal reserve kept the foot on thmonetary accelerator at leastor a time, then they could pride some more support to spenng. reporter: reinhart says the fed s two options: delay its now-famous exit plans r a w

it could be that the feds are watching them, trying to build a stronger case against them. it could also be that they somehow slipped out of the country wants this plot began unraveling and the feds moved in to make the arrest. shepard: jonathan hunt in the newsroom here in new york. jonathan, thanks. would you like to know what is in this health care bill before the vote on it? we are live on capitol hill with the details and a wild case of road rage. did you see this? are you kidding me? where do you think this is happening? in new york, of course. this is where we fight in the middle of the street. shepard: they say new york city is one of the a -- entertainment capitals, and they have to keep tourists entertained. check out this wild show two guys put on during a brawl on broadway. that is a cab driver and a pedicab drivers stopping traffic with a street fight. a photojournalist for fox five new york happens to be shooting video for a piece on taxis when he spotted this going down in the street. it started with yelling, as most things do, and then the pedicab driver toss

i think the fed has -- is in good hands, and i have confidence that the fed will behave in a responsible way. i also believe that the federal government can also behave in a responsible way and make sure that we don't do anything that's unpredictable, but that is a policy choice for the obama administration, and i think the results that we will see in terms of whether people jump to or flee from the dollar, in large part, will depend on policy choices. >> ed, i realize that everybody should do all responsible things. is there any reason to believe the dollar reverse and goes higher any time in the near future in your view? >> i would say that if we engage in pro-growth policies, in particular, we have to look at what the government does as far as tax increases. as you know, the tax -- the bush tax cuts are going to expire. >> right. do we have an idea of what the administration is going to do? do you think the dollar is going to go higher? >> well, you know, i don't want to predict the dollar. i wasn't even allowed to talk about the dollar. >> but you can predict what the policies will b

the fed chairman is going to be on the hill. read his testimony last night, which we broke last night, he seems to be stemg back from federal reserve being systemic risk regulator. favoring what sheila bair is talking about, a council doing this. what's your thought? >> it's a complex issue. i think it's important they have in place how to deal with the large institutions. a council is a little dicey for me because the committee respect, who has authority, who is responsible. say you are, steve. >> i'm personally responsible. >> some individual. >> and what about what sheila bair is doing, this notion of borrowing from the banks or making banks prepay next year's assessment for the fdic deposit fund. >> there's no easy toons that. it -- no easy answer to that. i defer to people, bright people, who i'm sure have looked at all the alternatives. this is a consensus. >> what would you do? >> i would probably favor what they did. but i would lean toward going ahead and borrowing money from the treasury. >> mike says timing -- >> don

is the fed biting off more than it can chew? >>> speaking of chewing, we also want to know what people are washing it down with. we'll find out from the company that imports corona beer in the united states. you're watching "street signs" and we'll be back. welcome to the now network. population: 49 million. right now 1.2 million people are on sprint mobile broadband. 31 are streaming a sales conference from the road. eight are wearing bathrobes. two... less. - 154 people are tracking shipments on a train. - ( train whistles ) 33 are im'ing on a ferry. and 1300 are secretly checking email... - on a vacation. - hmm? ( groans ) that's happening now. america's most dependable 3g network. bringing you the first and only wireless 4g network. sprint. the now network. deaf, hard of hearing and people with speech disabilities access www.sprintrelay.com. >>> after a september to remember, and that was in a good way, the dow is limping into october down six of the past seven sessions. chairman ben bernanke really stole the headlines and th

that's going to be dependent on what happens out of washington, in terms of the fed, what happens in terms of just capital spending. companies are still very reluctant to hire. the number of jobs, creation is nan existent. >> how would you play it? how would you position for it? >> in terms of what's happened over the past several months, it's been a very schizophrenic performance in a way, financials, materials, industrials have ton very well. telecom, utilities have lagged. i think what to be concerned about is in a recovery, where will be the rebound. i.t., alcoa posted better than expected numbers. >> alcoa turned around, it rolled over, now it's down actually. you also have to consider the fact is loaded with debt. even though it has increased its cash by, you know, got more than $1 billion on the balance sheet. >> i think you want to also look at health care. that's an underowned, underloved, i mentioned johnson and johnson as one of the large multinationals. when you get 12 months before the fed raises the rates, that's the sweet spot that we're in that rich refers to. you want

in fact, my friend lyle granley, the former fed, asked the other day about the market thinking of fed funds rate hike in may, lyle said, right month, wrong year. >> greg, i'll tell you, that op-ed piece by kevin which i thought was ludicrous, to be kind, had to have been vetted by ben bernanke. then yesterday basically saying the same thing. there appears to be the war between the doves and hawks. the hawks should be moved somewhere to a safe and secluded location. so they can't do any harm to the economy. they're out of their minds thinking we've got an inflation problem. >> i'm told that that was not vetted by bernanke. >> really? >> he did not say, oh, you go right ahead and encourage the markets, thinking they were going to raise rates and do it aggressively. i think the powers that be, again, the bernankes, cohens, they're not there at all. >> you're saying kevin publishes in the wall street and get approval from anyone in the hierarchy there? >> look at placer -- >> but that you can understand. because they're not inside. kevin has moved over the last year and a half closer to b

but i think the fed has not addressed the issue.fed has done is kind of step in to replace what's happening in asset-backed securities but not try to figure what's wrong, how do we restart so the private sector does it on its own. the small business administration tries to do a little bit there. it's an important issue. i do think there is a debate i think we're talking about in the economics community. everybody says small business creates jobs. does small business create jobs in reaction to large business? are they a leader or follower? one of the things we saw in the adp, job declines in large businesses have kind of ended. i think we see reasonable profitability returning to the s&p 500 at least through cost controls, if not a little bit of top line growth that we may expect here. so i think the way to look at job growth here is let the large businesses get their act together and then i think small business will fall. but that's a debate that's out there, how these things sequence. >> we've got to go. what's that new guy's name?

presidents making puff u public speeches and statements about the fed's exit strategy. dow fed president richard fisher says this. my colleagues and i will move well that if needed will be equal in speed and intensity to that with which we pursued monetary accommodation. does this concern you? why do you think they are doing this? >> i think they're doing it to hold off the bond village laboratoriys a little bit. i think what they're trying to do is say, look, we've got to continue to print money. you know, it's been a trillion dollars. that can sit out there as long as it isn't chasing, and when it's necessary, we will be more aggressive in raising rates than we did in the period of the housing bubble. >> yeah, but, i mean, stew, is there an issue that the federal reserve is going to have to unwind some of this stem husband, possibly raise interest rates when unemployment will be still near 10% or above 10%? >> i think that's exactly right, maria, and what will be the political feasibility of the fed tightening monetary policy at a time when growth is coming back, but

and what is the political feasibility of the fed tightening monetary policy at a time when growth is coming back but not rapidly enough to significantly reduce the unemployment rate. >> the markets have gone up 50% meanwhile since the lows in march, guys. this is an amazing performance an finishing up one of the best quarters. this is the best quarter in 1 years. is it too late for the average investor to put money to work here if you have actually missed the rally? >> well, it is almost never too late to put money to work in an intelligent way, but i would suggest to people that international markets have rallied more than the u.s. market. people should try to put that money to work where they could get some advantage from growth that may be faster in other parts of the world, and frankly a dollar and here i have to agree with stu, it is a risk that the dollar continues to deteriorate. investors response needs to be, well, you know, how can i cushion my own lifestyle by being invested intelligently in a global way. >> stu, you are more optimistic, right? >> well, overwhelmingly, peop

i think by the middle of the year we'll see some beginnings of a rise in the fed funds rate. that's because i think this economy's going to surprise to the upside. i think that although the consumer will ultimately depend on better job growth, that for now the consumer's coming back because so many people cut back, those with jobs, cut back hugely last year when they worried about the risks, because it looked as though the downside could be endless. now that we've got some sense of stability and stock prices are up, i think people are relenting a little bit. and they're stepping up their spending a little bit. we've had confirmation of that in the chain store sales we just got yesterday. >> that was a real surprise on the upside. gentlemen, single best idea. here we are at the beginning of the fourth quarter. we're about to get the barrage of third-quarter earnings reports certainly next week and the following week. how do i need to be invested through the end of the year? russ, what is your single best idea? >> i think for the rest of the year, i continue to play the cyclical

the bonds seem to be suggesting that those deflationary pressures that the fed has been aggressively fighting still work beneath the surface, and should the fed and the treasury withdraw the stimulus prematurely, they will reassert themselves. a very bearish script for the economy and for stocks. >> gentlemen, we're going to bring you back in a few minutes and what might happen at the close. we'll be back in about 20 minutes or so. about 45 minutes to go before the closing bell. flat on the day, but quite a move to the upside given the disappointing numbers on non-farm payroll. s&p 500, probably down about 2% for the week. michelle? >> bob, speaking of technology and nasdaq, it is one of the leaders behind the market runup. but is it time to shift into other circumstance lick ales, like energy and industrials. >> gold, bouncing back today as investors get defensive following the weak jobs report. where is gold heading next? answers coming up. >> after the bell, sam palmisano, how his company is saying ahead of the curve and transformation from a hardware maker to a services company. >

that brings the total to 115 banks closed by the fed this year. an average of ten banks have failed every month in 2009. but that is still nowhere close to 1989's record high of 534 bank closures which took place during the savings and loan crisis. >>> a tanker here has stopped leaking oil into san francisco bay. the leak started yesterday morning when a fuel line ruptured on a panamian tanker on a fuel transfer. san francisco's mayor says hundreds of gallons of oils have spilled into the bay. officials are telling people not to swim in the bay and to avoid local beaches. >>> pirates want $7 million for a british husband and wife kidnapped while aboard their yacht last week. but the couple's government won't pay up. british officials said they will not make deals with his stoj takers. paul and rachel chandler set sail from the seychelles islands on september 1 set for tanzania. a tournlist in contact with the pirates says the chachndlers ar being held on a spanish hijacked ship. >>> a california judge ruled yesterday that there is enough evidence t

so hopefully in the future the fed will not be creating excess liquidity. number two, hopefully fannie and freddie will not rise from the graves like financial vampires to haunt the american economy. so just avoiding those mistakes in the future would be a big step in the right direction. beyond that i agree with christian about how dealing with too big to fail but the key way of dealing with too big to fail is to let the institutions fail, and i have always been a fan of what's known as the fdic resolution approach. shut an institution down, wipe out the shareholders, fire the managers, and pay another institution to absorb the one that went bankrupt. that's the only way to avoid moral hazard and, unfortunately, i think the administration's plan is moving in the wrong direction. as a matter of fact, the administration's plan is all about moving the regulatory boxes around on the bureaucratic flowchart. >> let me jump in here very quickly. i think there's a little bit of a disagreement and i think it fundamentally shows where dan and i are coming from. i thi

the fed chief says don't count on these rates to be around forever. we know that rates are down because of worries about inflation and how it might damage the economy. but also because the fed has been so active. the fed chief ben bernanke said they could take away the punch bowl meaning raise interest rates at some point but not until the economy has improved sufficiently and looks like it can stand on its own. >>> team shirts, commentators, fierce opposition. it as all of the makings of a championship event. this is no ordinary competition. >> what's going on here today is the largest wii bowling senior championship ever held. >> texan plus, one of the houston area's largest medicare hmos came together with nifty after fisty. a senior only fitness program to get these seniors moving in a high tech way using nintendo's wii bowling game system. >> they brought with them another 1,500 family and friends. >> it's more than just a fun way to stay in shape. these seniors could also be saving themselves from a major medical concern. according to the centers

that brings it total to 115 banks closed by the fed so far this year. an average of ten banks have failed every month in 2009. but that is still nowhere close with the 1989's record high of 534 bank closures, which took place during the savings and loan crisis. >>> a tanker here stopped leaking oil to san francisco bay when a fuel line ruptured in a fuel transfer. san francisco's mayor said hundreds of gallons of oil have spilled into the bay. officials are telling people not to swim in the bay and to avoid local beaches. the coast guard says it looks like the oil spill was caused by the mechanical failure. >>> it's safe, spooky, and for some, the perfect way to spend halloween. horror movies have some people so hooked, they just can't seem to get enough. so what exactly keeps it fear fanatics coming back for more? >>> we need them. we want them off of the streets. that's what we're trying to say. we want him off of the streets as quickly and as fast as possible. >> police make a gruesome discovery in a cleveland home. what they found during a raid. >>>

of course we have the skins s playing at ki1:00 out at fed ex the army ten miler. so it looks good for erall the events around town. 67 now in the city. 64 for gaithersburg. ur annapolis 69. baltimore with showers moving in through down to 64 degrees. re but generally speaking tonight is going to ghbe a mild night o there. th we have ermostly cloudy conditions. io showers passing by and a lot of moisture in the air. so temperatures tonight having a hard time getting down into the lower 60s, maybe a few spots in the upper 50s but ntewt mainly in the 60s. again any showers tomorrow early, early in the morning. it's looking like -- i mean before sunrise. we're headed for warm afternoon with the sunshine. temperatures warming up into the upper 70s for just about everybody. showers on the east side of the front and the west side of the front where we'll be for the better part of tomorrow it's going to be dry. and high pressure moves in behindth orinthat front. so we're expecting some very nice conditions. best day of the weekend no doubt is going to be on sunday as we g

now there is a report that says the fed's may have misled us when it comes to the bailout. there is a report blaming hank paulson and ben bernanke. apparently, the banks received billions in federal funds but they were not very healthy. now we want your take on this story. >> we frequently have these polls because we love to hear from our viewers. this one is whether or not congress should investigate ben bernanke and former secretary paulson it, and any other officials involved if you go to foxnews.com, click on the udecide page, and there you will be able to cast your vote. be able to cast your vote. note that it can cast which everyone represents how you must feel about this. this is going to let you know how everyone in the voting. right now, 74% believe they deceive lawmakers and taxpayers. if you want to take a bit further, we even have a comment section. if you scroll down, there is the area where you can register to take part in the conversation yourself. trace: we are going to have more on this coming up later. did the fed mislead us on the bailout? martha: and it

the feds are reformatting the drug making it 10% less poe tent. the change will help manufacturers spot the impurities. >>> metro's yellow line is being rerouted on to the blue line columbus day weekend. yellow trains will run from huntington to stadium armory. track work will impact the green line into prince george's county and passengers there will have to use shuttle buses between gallery place and anacostia. all those changes by the way are to accommodate large crowds expected in the district that weekend. you can check out tonight's top five on myfoxdc.com. just click on web links. >>> can yes west -- kanye west'' [ inaudible ] the promote ear live nation didn't offer an explanation for the cancellation but kanye west is still taking a lot of heat after the incident at the mtv awards. you'll have to send your tickets back. >> i haven't even gotten them yet. >>> you say it's going to get warmer here? >> it is. i think again saturday pushing 80 degrees around here. only in the 60s today. so how quickly things can change, especially in early fa

the fed will provide the latest consumer credit data, weekly oil inventories.'s retailers. they are going to be reporting monthly same-store sales plus u.s. government releases wholesale trade. bank of england and ecb are announcing rate decisions. finally on friday we get international trade and the labor department's latest employment data coming in in the form of a job openings report and turnover survey. >> lots to think about. drop us a note. our address this morning, squawk@cnbc.com. still to come a five-star fund manager will share his stock picking secrets. we'll be right back. >> as we head to the break, here is a look at the widely held stocks. "squawk box" on cnbc returns after this. we are first in business worldwide. ( inspiring music playing ) someday, cars will be engineered using nanotechnology to convert plants into components. the first-ever hs hybrid. only from lexus. someday, the driver will get to choose how efficient or powerful their car will be. the first ever hs hybrid. only from lexus. the most fuel-efficient of all luxury vehicles. >>

and after ten years' employment with the feds, all your federal loans, whatever remains balance of those, will be forgiven. all right. here's what i want you to do. i want you to pay the minimum that's required under the income-based plan toward your federal loans, and throw every last dollar you can towards your private loans. and big priority for you. on the student loan front, here's my rule if you are in skul -- parents of kids getting ready to go to college, do not in four years take out more student loan debt in total than what you're likely earnings are going to be in the first years' employment after college. use that as a maximum ceiling of how much money you borrow. you'll really thank me later if you follow that. >>> you have a complaint about one of the giant cell phone companies. what have they done to you, alberto? >> caller: clark, i recently purchased a wireless card for my computer. because i was moving to, i was going to mexico to pack my belongings. i managed a resort that closed down due to the financial crisis. a downloaded a movie and they billed me for $62,000. >>

and men and women unemployed and the latest data from feds shows the unemployment rate now sitting at the.8%. that is after job losses, from september piled on and more than a quarter of a million more, than expected. and the jobless rate now at the highest level since the recession of 1983. and what is -- with the recession coming to an end, where are the jobs? michael seymore, is president of uni-private wealth strategies, thanks for talking to us. if there are no jobs and we're nowhere near over the worst, the worst is not behind us. >> well, i couldn't agree with you more, the last time that i was here, three months ago we talked about the same thing and i look at my notes this morning and nothing changed and we're 15 million americans out of work and that is why every time i hear the economic recovery is well on the way or the worst is behind us, that really frosts my windshield, i'm not seeing it. the 15 million people are not all one-person households and it could be affecting 30 million people. and, if you start adding into the fact that you might think it is 9.8% unemployment

zazi who is the father of the main suspect fighting back and he is challenging the feds surveillance f him. laura ingle has more on that. >> reporter: the father of zazi the man accused of plotting using weapons of mass destruction is working on his own defense trying to get out of charges that he didn't tell the truth to investigators when asked about his alleged terror activity. yesterday zazi's lawyer filed a legal challenge suggesting that federal agents didn't have the authority to listen in and tape phone conversations of the 53-year-old. court documents revealed that he received a call from a person in new york that warned him that police were asking him questions about the son. he denied it ever happened. it doesn't detail exactly what information used in the wiretap operation because it was done under the foreign intelligence surveillance act. he could get eight years in prison and $250,000 fine if found guilty. he will appear in court this coming friday. in the meantime, investigators in new york continue to eyeball other co-conspirators in the case. there has been a lot of

that it may damage the economy, but, also, because the federal reserve has been so active, well, the fed chief says that won't last forever, these low rates. speaking last night he said the fed would wind down some of the programs and would consider raising rates when the economy has improved sufficiently, when it can stand on its own two feet. >> he's pumped in like $2 trillion, hasn't he? put a lot of money into the economy. thanks, jen. >>> here's a thought for you. marge simpson naked. got to hear this story. plus, a high school football star honored his late father the best way he could. he set new records and not just any. it's a great story and rafer has it for us. >>> president obama extraordinary. >> gasp. did you hear that? that was the reaction when president obama was announced as this year's nobel prize winner, peace prize winner. he had not been mentioned as a front-runner among the record 205 nominees. the nobel committee said they chose him because of his efforts to solve complex global problems through diplomacy. if i can talk today. >>> the nation's top cop is getting s

the running for his successor. in frankfurt, b of a shares, let's pull those up, up 0.69% to $11.65. fed chairman ben bernanke says congress should create a council of regulators to monitor threats to the u.s. banking system. he will speak at 9:00 a.m. in prepared remarks, bernanke says individual regulators should be able to act on their own to ensure banks don't become so highly leveraged in the first place. president obama's plan to ov overhaul financial regulation would give the fed too much power. >>> comcast is denying a report that it struck a deal to buy nbc universal. therap.com says a deal was hammered out tuesday. comcast, the biggest cable 3r0ier says it doesn't normally comment on rumors, but that the reports are inaccurate. vevendi is deciding whether to sell its 20% stake in the company. in europe, ge, comcast and vivendi are trading comcast down 276%. >>> the imf has raised its forecast for economic growth next year. the imf suggests a 1.3% expansion. after more downbeat assessments for most of this year, with it says it's now seeing an end to the global recession boosted

the fed chairman says jobs will remain scarce. >> the unemployment rate will be about 9% by the end of the year. >> this woman was laid off and is getting job training at the goodwill. >> i am learning new things and meeting new people. >> she says it can't hurt in a painful job market. the obama administration predicts unemployment will average 9.8% next year, bound to fuel debate about whether government aid has worked or should keep coming. >> the time is 5:27, 54 degrees. coming up next half hour -- >> baltimore police looking for rape suspect who brutalized his victim. details ahead. >> a presidential bid for the olympics, details ahead. >> a massive storm system is brewing on a doppler. i will let you know a timetable for how it will affect us by the weekend coming up. >> for most of the major roadways are looking good. one accident on 97. we will update you on and check we will update you on and check on >> live, local, late-breaking. this is wbal 11 news. >> good morning. welcome back to 11 news today. i am stan stovall. >> on mindy basara. it's friday. we are wearing our calle

it's the "w ." at fed ex field, lindsay murphy, fox 5 sports. >> lindsay, thanks. despite falling behind, the redskins don't abandon the run. they keep giving it to clinton portis. lindsay mentioned the 98 yards a season high. he also rushed 25 times. that was a season high. not bad for a guy who is listed as questionable with a bad quad. >> guys wanted when me to cay the team. guys wanted to put it on our back. i think the offensive line wanted to go out and run the ball. guys are like, come on, we've got to get going. for the coaches to come out and stick with the run, i think it was a great feeling. >> time for our geico 15 minutes of fame. it goes to the kicker. sean suisham who was doing the double duty. a long of 32 yards. his last punt inside the 20- yard line. he made his lone field goal from 42 yards out. he made the other one but your honor our geico 15 minutes of fame for his punting. >> you have much more respect for the ys that do that, you know. it's no easy skill. >> reporter: how did you grade yourself today as a punter? >> we won the game. we won th

the feds here, mr. ray is going to say everyone was aware no different than going to a gym when you sign and you're getting on a treadmill this may be unhealthy for you. you have to be healthy enough to endure it. the question is whether this was far more extreme. you have a sweat lodge where i understand there were 50 people in a small area unventilated. the question will become under those conditions is the release enough? >> that is an excellent point. i know investigators will look at how was this built? did they -- because a lot of people have had experience with this say a 415 square foot lodge for 55 to 65 people is just not the way you do it. you have one nurse monitoring these people? a lot of questions still. but right now being ruled a homicide investigation. gary, thanks for being with us. you as well, tom. we appreciate it. our thoughts and prayers are with your family through this difficult time. >> thank you. >>> latinos, a minority population in america but one that is expected to nearly

wall street closely watching what the fed chair has to say. ourse the financial markets a great beneficiary of the taxpayer subsidizing of the system. a few trillion goes a long way. the much talked about bill to strip federal funding from a.c.o.r.n. may have a much larger effect. monica is here to explain. >> dylan, the house passed legislation to cut federal funding from the community group a.c.o.r.n. has been implicated in voter fraud, accused of offering advice on prostitution and tax evasion. it's not the only government contracted organization that has faced serious charges. the language in the house bill would strip funding from organizations that were indicted for breaking election laws, violating lobbying rules or committing regulatory fraud. on the face who is going to argue with that. well, except for if that is the case corpses like at&t, glaxosmithkline would see their dollars cut off. >> the project on government oversight compile as list of five dozen companies directly impacted by this house bill as it stands. danielle bryant jo

according to the feds, he is heard saying that he is taking the cash and gifts because he needs the money. describing him as dishonest, some are asking for graham to resign. today, he reached out to his constituents in ward 1, asking them to be patient and once again saying that he has not committed any crime. john gonzalez, abc 7 news. >>> coming up -- a man takes aim. who was he targeting? countdown to copenhagen. the president and first lady and zero. are there, but could they help chicago get the olympics? -- the president and first lady and oprah winfrey are there, but the big ups, but the up? first, sully love to save? shop with your giant card and save on thousands of deals, like progresso vegetable classics -- 10 for $10, wisk ultra detergent -- buy one, get one free, and other weekly specials and real deal savings. enjoy more savings -- only with your giant card. tightening your purse strings? shop with your giant card and save on thousands of deals, like chef boyardee cans and microwave bowls -- 10 for $10, ivory soap ten-pack -- now $3.99, and other real deal savings and weekly

h1n1 concerns have led the feds to enact new travel rules this holiday season. >>> afghanistan war, the president is still contemplating the future of afghanistan as he prepares to once again sit down with his war council. >>> rally for respect. students, teacher and their supporters prepare to rally in support of teacher and school workers who lost their jobs last week. >>> good morning. i'm andrea roane. thanks for joining us. it is thursday, october 8th. it is kim martucci's favorite day of the week, and what do you have in the forecast? >>> i don't have flying lawn chair furniture. is that a nice change in pace? >> good. >> yeah. we can thank southwesterly winds at three, very light miles an hour, as opposed to the wind gusts that were rivalling 50 miles an hour yesterday. it is 54 right now. so it is a lill little nip in the air but we can handle it. it is fall. take you back with the time lapse tower cam from the netherlands carrailon. other numbers are coming up. 51 martinsburg, 45 cumberland. as we look ahead we will keep it mostly sunny for you. don't worry about rain today and

the fed chairman yesterday correctly points to this idea. when you're out of the workforce for 26 weeks, you're unemployed, you begin to be detached, you begin to lose skills. to the extent that your question focus on the long term implications, not the month to month payroll thing that's where policy needs to be directed. >> you agree? >> i absolutely agree. we obviously have a situation, steve hit on an important point. we're focused on the unemployment rate. if we look at broader measures of unemployment, that's 17%. the labor market -- >> let's use that measure. that's the diskounched people. people working part time. 17%. people think it's a better measure of slack in the labor force. >> i think we're probably understating things a little bit even with that elevated unemployment rate. it would be encouraging to see some things in place to, i think, to support a stronger recovery in the labor market and you've hit on one point there with taxes. i don't think we'll see it. >> look what happened to home sales when they had that first time b

>>usie: tomorrow fed chairman ben bernanke testies on capitol hi about giving the fed more power to oversee bas. >> susie: ly 85 more shopping days 'til christmas and wamart is using allf them to attract bargain hunters. the retailer is pricing re an 100 toys at ten dollars each. they include classic boa games, popular dls and action figures. some items are mard down more than0%. lastear, wal-mart offered just tetoys at ten dollars. the prices are aimed a recession-mindedhoppers keeping a tight re on the purse stngs this year. >>aul: chevron has a new chairman and ceo and he'll te threins at the end of the year. john watson s been with the nation second largest oil company since 1980, most recently as vice chairn. current ceo vid o'reilly is retiring after 41 years th the company. euquu >> susie: here a look at what'sappening tomorrow. september auto sal are released along witthe august reports onersonal income and construction spending. in the moneyile tonight why the sidelines aren the best place to be you're planning r retirement. here's charles benne sachs vice psident and wealt manager

the feds said, your debt is played. the nfl said, come play again. is it too soon? text your comments to 45688 or leave your comment on our facebook page. we'll air remarks throughout the morning. >> thanks, larry. i'm sure a lot of responses this morning. >>> actor john travolta says that extortionists were going to tell the media that he was somehow responsible for his son's death. two people are charged with trying to exhort $25 million from him in the bahamas. the case revolves around documents that travolta signed after his son jett died earlier this year. in cross-examination yesterday, the actor said that the defendants never of contacted or threatened him directly. they've pleaded not guilty. >>> the u.s. sent two military cargo planes loaded with supplies to help with people recover from tuesday's deadly tsunami in the samoan islands. take a look here. this is american samoa. at least 139 people died. officials said they could find more victims as rescuers search remote villages. the second quake hit near the island overnight but was weak he than the one th

country saying they're going to fight this legally in the court system,er thisser in's going to fight the fed as they fight to put states in arizona, texas, maryland in jail. this debate will go on for potentially years. >> i didn't realize i was living in russia. i thought i was living in the gold old usa. the fact that somebody in a voluntary program can enforce this by putting you in jail by a threat, by coercion and all of those things as opposed to having an incentive plan where people voluntarily want to do this is an outrageous thing. it is the tyranny of the government again. we're slowly slipping into total fascism in this country. you got to be careful. you have to know that your congressman is jeopardizing your own freedom. >> hold on. hold on, nancy. listen, here is the thing, i mean, again, your's going back to taxing the high-end earners, potentially the middle class. this is a tax. >> well, to your class warfare point, go to any prison. it is 98% poor people, but if anything, there is class warfare the other way in prison. anybody who owes the federal government money and doesn

because they don't want anybody to touch of the fed. far as of the health-care issue goes, there is hardly a brand yet that is not taking care -- it ought to be called insurance care. and the obama plan totally stinks'. it gets into our bank accounts, it gets into our lives, put us into debt, it will put a tax on everybody, the poor mostly. and just to hearken back quickly to the last guy, we are tired of the lies. the same memo they used with iraq, the same crap with the fake wmd's, that nuclear plant -- host: i'm going to jump in. thank you very much. we are moving off to other topics. reno, spot on the republican line. caller: how are you doing? congress has enough to be embarrassed about. this guy, he does not help their cause. their approval rating is down in the dumps. he needs to go back to florida and drink his orange juice. host: 8 twitter -- >> is new jersey. barber, democrats line. good morning. caller: i don't think he's so it -- should be sanctions but he should be honored for having the courage to speak the truth. somethin

the lottery will be at fed ex field this sunday when the redskins take on the tampa bay bucs! be sure to stop by our booth and give our prize wheel a spin. and, there's never been a better time to try your luck at pick 3. now during our pick 3 double pay on box play promotion, if you get the word doubler on the top of your pick 3 ticket and it's a winner, your boxed winnings will be doubled. now for your jackpot updates: mega millions is $105 million for tonight and multi-match is $650,000 for saturday. the maryland lotterylet yourself play! >> good morning. sarah caldwell checking on your morning commute. an accident on southbound 895 just past washington boulevard. no confirmation yet. we will let you know if we find out anything more. let's look at harford road. no delays. the west side continues to run smoothly. at weis avenue and lyncin dund'n accident. another accident at druid hill and lawrence st.. >> milder air mass in place today. to the warm side is approaching a spirit of pleasant system. going from ohio into cleveland, a nice that the showers, and it is headed in

the fed has created a lot of money. i have spoken to businesses across the country, they said that there is nothing in there for them. that is where the job losses are, in the small business sector. you and i talk about this all the time. çótwo out of every three jobs in the economy are created by small businesses. bill: i put the same question to stuart varney yesterday. i am taking a look around new york city, traffic is light. easy to catch a cab. there are your indicators. >> you know what? i noticed the same thing. the only city that is booming right now is washington, d.c., because that is where the money is being spent. stuart varney is exactly right. we might have 3% gdp growth. corporate profits are picking up. for most americans watching this show it is when the job market picks up. we are still losing with 15 million unemployed. bill: i think that that could be a jobless recovery. >> the worst kind. bill: more later in the week. >> we need a tax cut! bill: [laughter] scream louder. jillian: the white house has

the case comes about when an informant tells them that the fed gives him information and taken back halfsh. and a wiretap shows him saying, we're the only ones that know about that, right. >> several are out raged about this. >> >> reporter: when talking about making raids on drug houses, he said, i'm not going into a. [ bleep ] house if i'm not getting something out of the. [ bleep ] . he's currently on home detention. >> >> if convicted, he faces 30 years in prison. >>> a man arrested has been sentenced to 24 years in prison. he pleaded guilty after he was found if 91-pounds of. cocaine in the back of his truck. he asked the judge for purse city and -- for mercy. >>> and more lay offs may be on the way for 600 workers at the steel mill. the company that owns the plant is restructuring. it affects a 1/3 of the work force. 500 jobs could be cut. meanwhile, 100 new jobs will be coming to hagerstown. the aerospace technology company will need the help to put the aircraft for the department of homeland security. they'll need to fill a variety of workers. >>> a move fort congregation of the