u.s. treasury for the first time in history. that leaves the agency with only the revenue that it takes them from selling stamps and shipping and other services to cover its operation costs. the postoffice is required by congress to prepay into its pension fund decade said in advance cause -- decades in advance causing major budget shortfalls. >>> temperatures remained fairly mild out there this evening. it is warm tonight in antioch, 74 degrees. 64 in napa, 60 in san mateo. drier conditions starting to build in. no clouds in sight. a reversal in winds. instead of coming in off the ocean, they're coming in from the inland valleys. warmer and drier winds than typical. this keeps us cloud-free and warms our temperatures. but it has another consequences, rising fire danger. in the delta, a red flag warning in effect for wednesday. this is going to be pretty much all day wednesday until 7:00 at night. you can see the area highlighted on your screen. low humidities, gusty wind, warm temperatures. a trifecta of fire concern. we'll kee

u.s. treasury in a takeover of delphi's pension fund.e they got the money, they eliminated 28 of 29 auto plants in the u.s. they eliminated every single job of every uaw member, over 25,000 members all lost their jobs. almost every plant would then move by the romney group to china. delphi is making a fortune today. you have 25,000 workers who lost their jobs to china. three hedge fund managers made at least $4 billion, and romneys had made at least $15 billion, but the evidence suggests it is more like $115 million for the romneys, about 4000% profit. will we cannot get from them at this moment, this may be the reason why they are not releasing their 2009 taxes because that would give us the better hint. unfortunately, that not only moved the company operation to china, but move their incorporation of the auto parts division, general motors, from troy, michigan to the isle of jersey in the miniature nancy, which hides their taxes and also hides their accounts. >> how did you get this information? >> i've been tracking poll the vulture s

u.s. treasuries, i'm just simply issuing a warning on behalf of the imf, the cbo and the bis that things haveo change. >> indeed, talking of treasuries, i saw stats today to say your bond fund lured $2.8 billion in new cash in september through september year-to-date over 12 billion dollars. >> these estimates basically say if we wait for another 12 months, waited the past 12 months and 24 months, basically our fiscal gap increase buys half a percent a year. what you want do as an investor, you don't want to fight the central banks, buy what they buy before they buy it and that is basically the mortgage market today in terms of what people skoal buying and also beginning to look like italy in terms of what the ecb might be buying for or -- four or six weeks down the road. >> billionaire sam zell on squawk abortion i think you saw it you tweeted about it i want to play a soundbite about recession and you comment on t here is what sam zell her to say this morning on cnbc. >> we run a company that does a lot of corporate enterprise. >> your response, are we headed toward recession? >> i don't th

u.s. treasury secretary timothy geithner is visited india. he's welcomes efforts by indian leaders to reform their economy. geithner met with indian finance minister in new delhi. >> i think the reforms outlined by the government of india are -- offer a very promising path to improving growth outcomes for the indian economy. >> observers say geithner is urging the indian government to proceed with economic reform policies. the prime minister has been trying to implement changes. one example is his push to open the retail sector to foreign supermarkets. but plans to ease restrictions have parked an angry reaction. one political party has left the ruling coalition in protest. >>> german chancellor angela merkel is urging to push forward. implement deep spending cuts in return for financial aid. merkel went to athens were talking. this is her first visit there since greece's fiscal crisis sank in. she says she hopes the country will stay in the eurozone. she says greek leaders have made great strides. she's been demanding they introduce tough de

u.s. treasury as opposed to private banks. the have been borrowing billions from taxpayers to make up for shortfalls. still to come on abc 7 news at 6, some shutdowns at the university of phoenix. we will tell you what's going on there. >> lovely traffic on the beltway. soon, you'll be able to pay a toll to move a lot faster. how much will it cost? we learned a lot more about that today. >> 64 degrees and clear skies in arlington. some changes coming our way. temperatures up and down some thunderstorms, too. we will [ mitt romney ] look at the evidence of theast four years. we've got 23 million people out of work or stopped looking for work. they're suffering in this country. the president would prefer raising taxes. the problem wh raising taxes is that it slows downn the rate of growth. i'm not going to raise taxes on anyone because when the economy's growing slow like this, when we're in recession you shouldn't raise taxes on anyone. my plan is to bring down rates to get more people working. my priority is putting people bac

u.s. treasury secretary timothy geithner. he says the economy is growing at a better-than-expected pace. critics, however, say the economy needs fewer reforms. how much does congress play into your portfolio? perhaps more than you think. eric singer manages the congressional effect fund. he's the author of the new book "trade the congressional effect," and he's here right now to explain how to profit from congress' impact on the stock market. good morning. thanks for joining by skype. > > thank you angela, pleasure to be here. > > how does your fund work? > > i went back and looked at the stock market going back to 1965 day-by-day, and i found that on the 7900 days that congress is in session, the market went up less than 1% annually in price. and on the 4100 days they were on vacation, the market has gone up 16% in price. so i launched a mutual fund to mimic that, and that's the strategy of the fund. we only invest in the market on the days when congress is on vacation. > > that's interesting. your fund is up 2% for the year. what does that say about our lawmakers? > > it says that this

u.s. treasury secretary addressed one of the issues, the brics nations, and many other nations are concerned about. timothy geithner spoke about the fiscal cliff. he's also attending the imf/world bank meetings. geithner says u.s. politicians are trying to break a stalemate in congress before the end of the year to avoid the combined economic impact of tax increases and deep spending cuts. >> i don't think the strategy of deferring and delaying is really a responsible strategy. you know, it might feel like the easy path at the moment, but it will still leave a set of big questions hanging over the country. >> geithner and other economists say not addressing the situation will be detrimental to the economy and investor confidence. delegates of the imf/world bank conference are holding various side meetings. representatives of neighs that support myanmar's economy sat down to hash out a strategy. japanese officials plan to support loans to the country to promote its growing democracy and development. finance minister koriki fuj. jojima says the japanese government will forgive all the country'

u.s. treasury: we're nearing the debt ceiling, hitting a limit on how much the nation can borrow to keep the government running. treasury sayse'll likely reach that borrowing limit, of $16.4 trillion near the end of this year. the agency says it can use extraordinary measures to gain some headroom, and keep borrowing into next year. but economists expect negotiations over raising the debt ceiling, will get tied up in the fiscal cliff debate, which is expected to take center stage in washington, after next week's election. >> tom: tomorrow on "n.b.r." its the nation's financial capital, we look at the challenges and cost of getting new york city moving again. >> susie: all of this is happening on hallowee. that's nightly business report for wednesday, october 31, halloween, have a od and safe evening everyone. >> tom: goodnight susie, we' see you online at: www.nbr.com and back here tomorrow night. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org >> join us anytime at nbr.com. there, you'll find full episodes of the program, complete show transcripts and al

u.s. treasury secretary timothy geithner is visiting india before he jets to tokyo to attend the imf world bank meetings. he is welcoming efforts by indian leaders to reform their economy. geithner meant with the indian finance minister in new delhi. >> i think the reforms outlined by the government of india offer very promising paths to improving growth outcomes for the indian economy. >> observers say geithner is urging the indian government to proceed with the economic reform policies. the prime minister has been trying to implement changes. one example is his push to open the retail sector to foreign supermarkets. plans to ease restrictions on foreign investment have sparked an angry reaction. one party has left the ruling coalition in protest. >>> now let's check on the markets. u.s. stock markets ended lower on tuesday as lingering uncertainties about the global economy led investors to sell shares. to see how stocks are trading this wednesday morning, let's go to ra mean at the tokyo stock exchange. the earnings season kicked off in the u.s. giving investors the jitters it seems. >>

u.s. treasury on banking reform. morgan ricks is now assistant professor of law at vanderbilt university. more-- morgan w what do you think here, should the government cap the size of big bank, this is turning out to be a very controversial topic, once again. >> yes, it is. and dan tarullo is one of the best thinkers we have on these issues. so when he speaks we should all listen carefully. on this question, though, i would respectfully take a slightly different view. and one way of thinking about this is during the financial crisis in late 2008, when lehman brothers failed we all remember it almost brought down the whole financial system. lehman brothers was a fairly small firm. at least compared to the giant financial firms we have today including jp pore began, bank of america, citigroup and so on. jpmorgan, those three groups vq size of the sizf lehman brothers before it went bankrupt. and this suggests that maybe size isn't the characteristic we ought to be targeting. >> and so what are you saying? >> don't cap

u.s. treasury bonds it controls the shape of the yield curve all these things that we used to take as kind of free markets the fed now controls and then they're ingenious they say oh look there's no inflation expectations based on the yield curve yet they're the ones who control the yield curve so i think it's not just europe where you've got the central bank kind of planning everything and trying to create this imaginary system that everyone can get comfortable with that's going on in the u.s. and it's one reason we're seeing so many traditional relationships break down whether it's you know g.d.p. growth versus yields whether it's stock markets versus yields all these things because they're being so manipulated by the central banks means rational investors real people c.e.o.'s of companies don't look at them and take the same conclusions so it's very hard to create policy that creates jobs when no one believes the underlying data anymore ok jeffrey i think i think it's. very interesting is you know i'm living in the country that used to be the soviet union you mention the soviet union an

u.s. treasuries and government agency debt to buying mortgage backed securities and i suppose that attempt to bolster the housing market and spur the economy while leaving the timeframe for future purchases open ended no more need for press three releases we can save money on paper let's go back to that spaceballs clip to follow through this idea of ludicrous. pressure from the much. slow we're going to have to go right to the print screen. so whatever joined us for the ship to purchase what's a better colonel sanders. they go ahead and do it and things don't end well in baseballs as that order ultimately sends that dark helmet dude flying through the wall of the space ship it was reckless what he commanded his ship to do it's a great lesson for central bankers who in their attempt to break the laws of physics have inverted time and space sucking whatever generation is left out of the bond market combine that with credit expansion excuse me combined that credit expansion with a more whole.

u.s. treasuries and that would seem to go price for fall in the short term but then the sort of the more fundamentalism on the i would actually increase physical demand that would create the floor on the price and then the price rickover quicker i would think than the stock market and the bond markets would recover that scenario ok got it so then when any time in there be a time to buy because you believe gold is still in a secular bull market yeah ok again by did i mean the two hundred day moving average the one hundred day moving average has been good places to buy in the last ten years and i think that will continue to be the case with the election coming up in early november i'd. i think i don't think i actually got over the. number of crashes in october but i think with election group of in early november i don't see any great dislocation until through election ok but who knows i am certain a time out there i'm not sober traditionally so it was actually quite a negative month for gold ok so if you are trying to time things we tend to tell people not the trying time much but if you are going to try

u.s. treasury. they must rely on revenue. facing a $5.2 billion loss. >>> we are getting reaction from you the voters from last night's presidential debate. frank luntz talking to a focus group of undecided voters. here's their reaction. >> how many voted for barack obama in 2008 raise your hand. a whole lot of these people. how many are staying with barack obama in 2012. how many switched and are now supporting mitt romney in 2012. raise your hand if you are romney people. sean we had a remarkable change here. i want to know what made you vote for romney tonight? >> forceful presidential. >> confident and realistic. >> presidential. >> presidential and enthusiastic, our next president. dyno winner. >> sincere. >> steady and articulate. >> you voted for obama in 2008. >> yes. >> what is it? >> he seems defensive and we are not staying on track. >> you voted for obama. >> just didn't deliver and the two debates he didn't explain anything. he didn't show what he would do for the future. >> coming up you will hear more from the

u.s. treasuries, the $16 trillion of debt we have out there, interest rates are going to skyrocket, interest payments will go up annually potentially by hundreds of billions of dollars, then we would have more deficit, there would be less trust. and so you haven't -- you've wrecked the government's role in the economy. those are my secret notes, i'm going to ping -- pick them up. [laughter] so you have to stabilize that. and you have to figure out a way to get the economy to grow. and that's a long-term proposition which will lead to more jobs. but you're right, there's some contradictions in all of this. but in trying to create more jobs, you can't mess up with the overall problem of the trustworthiness and creditworthiness. you're shaking your head. we'll talk afterwards. next. >> hi. over the course of your career, you've had the most incredible access to all these, um, great politicians in history and even today, and i was just wondering out of everyone you've met, who surprised you the most? who is like the least like how they are perceived in history and in the current media? >> oh, wo

u.s. treasury during the reagan administration.he economic numbers are better and every american ought to be happy. i am not sure what it does for the campaign. >>guest: investors looked at the poll and said, gosh, romney could win. >>shepard: i have rarely seen such a big swing. the signs are good, and you and your family are happy. >>guest: thrilled, of course. >>shepard: it makes the message harder. >>guest: i don't know. you have all the people who are unemployed and all the people on the food stamps. how will we create jobs? you want people to get back to work, too, this is critical. that is where the obama campaign doesn't have a message, no against of what has happened the last four years or plan for the future and mitt romney has that plan. >>shepard: the women voter survey shows women have come around in an enormous way tied up on a national level at least with the president. what do you attribute that to? >>guest: you had a rest primary and contentious and women don't like that and then, a rough summer, where so many thin

u.s. treasurys so the coast is clear, investing never makes sense. preparing for armageddon never makes sense and close to normal equity valuation right now but stay with the big names that are paying dividends. dave: what about oil? we saw another pop above 1%. some say this is overbought. what the is a? oil. it continues and some people say there's not a demand for it. >> supplies are shrinking. refinery margins have widened. keep in mind problems in turkey and the u.s. dollar reversal today going for a corrective in oil and i expect oil to climb a little further because they will find demand somewhere. my not be in europe but it will be somewhere. i do expect oil to the higher. three months from now than where it is today. >> thanks a lot. liz: let's bring in our market panel. peter, managing director along with scott freeze, st. one financial president. you are more cautious. what other reasons besides the obvious. we all know about the fiscal cliff. we know about all kinds of question marks when it comes to earnings. give us some unknowns. >> it

u.s. treasury securities. it means that, when the social security trust these go to the treasury to redeem one of their treasury bonds, -- department knows that. >> the word sequester. i have had people say what does that mean? it will be a disaster for our national security. >> i do not pretend to know. " cutbacks in social security and medicare, those were things i threw into the pot. geoff, he threw in the defense budget. i would not have thought of it because it is so untouchable. what will happen? i do not know. but, i think we have to be spending too much money given what the rest of the world spends. >> what you think of the elected officials in this country, from your position? >> i think some of them are wonderful. a lot of them are trying to do the right thing and which they could. i think a lot of them feel trapped by the forces that worked in the society that force them to distain compromise, to treat politics as warfare, which it did not use today. -- use to be. i think most of them, not all, but

u.s. treasurys very low and that is allowing them to avoid the market signal that they are spending moneyssor martin feldstein from harvard. good to see you, professor. thanks for being here. appreciate it. lauren, back to you. lauren: regulation nation, david. the ceo of alpha natural resources says coal regulation could force plant closures, job losses and increase your electricity bill. he will make his case next. look out groupon and living social there is new player in town. with consumer appetite for daily deals getting slower, i am a great shopper. there is no better shopper than me. david said so. ♪ >> i'm robert gray with your fox business brief. it was a mixed bag for stocks at the closing bell following comments from fed head ben bernanke. bernanke defended the central bank's latest bond buying stimulus plan saying strong action is necessary to reignite economic recovery and spur job creation. the dow and s&p closing higher today. the nasdaq, slightly lower. >>> aluminum giant alcoa says it is taking a $85 million environmental charge for the third quarter. it is related to a c

u.s. treasury consultants. welcome to the show. great to have you here. ben bernanke speaking today -- >> very good to be here. >> thank you. gerri: the federal reserve chairman speaking today and said we are not in a recession. it is not likely we will be in recession. very optimistic. very beat. are you? >> no. i think we are probably losing momentum if we are not in a recession we are close to. the big problem is at the end of the year if we have not done something about the fiscal cliff we are going to be in recession very definitely. the rest of the world is slowing down as well. so certainlthe momentum is not good. whether the growth nber for the fourth quarter is a half a percent or three-quartersof% or zero it will feel pretty much the same. we will be close enough to recession to put some real pressure on the lame-duck congress to do something about that fiscal clef. gerri: motors recent in a poll, 60 percent of them said the u.s. is in a recession. at some pint it ecomes self reinforcing from the people who could take us out of this we don't wan

u.s. treasury for a reason. people are not cannibalizing. they're going ahead and buying new products.wing up normally what happens in a scenario like this. melissa: stocks been getting slammed lately is it a buy? >> i think it might be, it might be a buy but, the whole thing with apple is, it is more institutional buying going on right now because it is taking a lot, taking a lot of hits up and down based upon earnings, based upon new products. so you could lookt it as, i totally believe apple will be over an $800 stock within a 1-year perd, there is no doubt about that but could it go down a little bit more? we'll see. but what usually happens when earnings come out, people take profits. you're seeing a lot of profit-ting right now. that is where the volatility is coming in. melissa: okay. larry, thanks so much for coming on the show. >> thank you for having me. melissa: here is the question of the day, are you going to buy the new ipad mini? we want to hear what you think. like us on facebook.co facebook.com/melissafrancisfox or follow me on twitter at melissaafrancis. >>> will he s

u.s. treasury securities. it means that, when the social security trustees go to the treasury to redeem one of their treasury bonds, they hand it to the treasury and say, we would like our money. the treasury gives them their money and goes out into the world to borrow it because otherwise, they do not have it. it is just more government borrowing. >> what would you do about it? >> i would do what we proposed. i have angered any number of people by writing what we said. i would do what we propose in there. have the balance of the social security trust fund for the social security recipients. in 25 years, you would have a system that, it is a pay-as- you-go system. you have a trust fund that is a weird economic thing having to do with social security rolls. but it has no economic value and has led people astray. >> right. let's get rid of it as a distraction. let's just call it what it is. >> let's see if we can get advice from both of you for people who are watching this election. what is absolutely going to h

u.s. treasury. we had no choice, we were held hostage, but that's it.fter him. >> cenk: now i understand there is another part of this that you want to talk about now, which is allyallied financial who are they and how are they involved? >> question, that we haven't gotten to. it has not come out publicly yet. romney's group through eliot management and the vulture i'll give him the name the vulture. he's a vulture. paul the vulture singer decided to hold allied hostage. that's the old g.m. finance unit. it's pretty hard to sell cars. now he's withholding the finance unit which he has control of. the u.s. government has already dropped $17 billion into g.m. ac now called allied. g.m. needs allied back, but the obama administration is saying, you know what, we're not writing another check for mr. singer and his partner. it's not that he's going after romney, but he's saying we paid enough. we paid enough. plus on top of that we have the obama administration who has gone into court to stop singer's vulture fund with their silent partner mr. romney from at

u.s. treasuries. >> gentlemen, thank you so much. >> thank you. >> buy 30-year bonds. >> okay. yeah, there's a treasury auction coming on those as well. so which stocks are being hit the hardest so far this month? >> just today the dow and s&p turned negative on the month. that's the quickest that's happened in a month since july of last year. it's brought a lot of stocks down into the red today with the market's overall spoiler. the most negativity is hitting health care and tech. let's look at the five worst october performers on the whole. the first is striker, down better than 6% in october to date starting the month with the management shake-up. orthopedics president took on the ceo role as well. investors seem to be waiting on the sideline there is. advanced microdevice is down just about 6.5%. pacific crest downgraded the company a week ago citing an inventory correction. next, auto desk down 7%. a couple small deals this month as well as some issues in the field. ubs says it's still a buy following a meeting with management and thinks that a share buyback will help. down

u.s. treasury is moving somewhat lower and so are the german bunds this morning. 1.51 and 1.73. quick look at information reks, euro dollar is shedding a third of a percent. the dollar is rebounding against the yen. aussie dollar just fractionally higher as well as sterling-dollar shedding about a third of a percent, as well. now, on cnbc.com, it's all about hurricane sandy. here are the top three stories trending. you can find out why sandy has grown into the frankenstorm. and as the weather front moves to the east coast, you can read up on what impact authorities are bracing for and what about the economic impact. you can also find out about the ten most expensive hurricanes in u.s. history. you can probably guess number one which came in at $45 billion worth of damage. stick around because coming up next, we'll head out to zurich for the latest on ucbs. >>> welcome back to the program. the u.s. energy complex could take a hit from hurricane sandy. about 6.5% of the refining xhas is located in the storm's path on the east coast. mary thompson is live at the port of baltimore a

u.s. treasury undersecretary for terrorism and financial intelligence says, quote, we will continue to ratchete to make it clear to the iranians that their only real choice here is to address the concerns about their nuclear program. what does the u.s. hope to get out of this? joining me a senior analyst with the institute for the study of war. chris, we're squeezing as hard as we can. does this statement help, do you think? >> melissa, pleasure to be here. thank you for having me on board. no the statement doesn't make any functional difference the purpose of sanctions is not to punish the iranian regime. the purpose of sanctions to come pell change in behavior iranian regime. they have known for 30 years we're not happy in their march toward nuclear weapons and supporter of international terror. the fact that they continue to take these actions that they are not going to change their behavior anytime soon. melissa: are they slowing down or speeding up in your opinion? the more determined they come. >> that is valid worry. iranians have no slowdown in any of these programs. three areas we're

u.s. treasury?erent set of rules than the rest of us have to play by. our labor income gets taxed as labor income. his labor income gets taxed as an investment. it's a rigged system and romney never wants to lead a tax reform that will continue that rigging out into the future. >> what do you think the reaction would be tonight, mike, if romney decided that the way to win this election would be to literally toss the 20% across the board tax cut out the window and say, actually i'm going to amend that in some way? >> he would risk a huge backlash. it might help him with the middle. >> but he'd win the election, wouldn't he? >> could. it would also raise the flip-flopping issue which he's done pretty well despite the attempts of the obama campaign of putting to bed since he picked paul ryan. the last few months he's not been dealing too much with the expedient charge because he's identified himself with paul ryan. people kind of know where he's coming from. if he dodges it at that point, i mean, he th

u.s. treasury did. you know, 2008 is not so long ago.nd already the anti-regulation chorus is so strong, you know, i think the reregulation was not done well at all. but the fact that people are already making a very, you know, powerful and proud argument against government regulation, bankers are making this argument. i mean how dare they? how dare they have the gall to actually argue that too much regulation of american financial services is what is killing the economy. >> right, right. just to be clear, i actually agree that the bailouts were necessary. what i completely disagree with was the way they were done. they just simply threw a whole bunch of money at this community and didn't have any conditions at all. they didn't sweep in and change any rules. you know, after the s&l decree sis for instance. there were massive criminal investigations. we put 1,000 people in jail. there were no such investigations this time around. so this was just making everybody well again and restoring everybody to the status quo, which i think was a ma