warren buffett has new comments. "hannity" starts right now. some accusations have been made despite having no evidence to support a claim. shocking details have uncovered and revealed that people profiting from this debate are high-profile members of their own party. that is our headline tonight. conflict of interest. according to an investigation by bloomberg news, close ties to david axelrod has received $12 million to support ads -- to support the president's plan through advertisements. he departed to join the obama administration in 2008. the company still owes him $2 million. and other advertising firm that also received hundreds of millions of dollars on the obama campaign is cashing in on the health care debate as well. that company known as gmmb employes and tumble of -- a number of obama strategist. i am joined by the author of the "culture of corruption". number one times best seller three weeks in a row. congratulations. >> thank you. sean: this story chronicles a lot of what you have in the book. if these firms are closely connect

warren buffett is joining. does this impact obama in any way? >> it should.bility away from the economic program that he has in place. their two predictions we're dealing with. warren buffett is predicting really serious inflation down the road if we do not rain in the printing. two, a double-dip recession. we are out of the first, that part of the recession. maybe a bit of growth by the end of the year. the prediction is, watch out. we go downhill again. sean: look at the headlines. home prices declined. retail sales are down. revenue to the government is down. the numbers cannot last week. the deficit quadrupled in one year under barack obama. foreclosures are up. the cost of government day -- >> you have a triple whammy that is not being faced up to buy the obama economic program. unemployment is still rising. employers are firing. consumers are not buying. you're about to see the worst in a decade back-to-school spending season. foreclosures are going through the roof. 360,000 foreclosure notices went out in july alone. these are challenges to the economi

op-ed in the "new york times," warren buffett writes -- this year the deficit will rise to 1% of gdp, the debt held publicly is mushrooming increasing more than one percentage point a month. he writes our immediate problem is to get the country back on its feet and flourishing, whatever it takes still makes sense. must >>> op-ed with call to washington -- joe, he does not have high hopes for even congress to do something about this? >> no. i don't think, you know, we have to read between the lines. remember cap and trade and some of this other stuff. i kind of from reading his body language, i think he was urging the administration to really focus on the financial crisis. it's kind of funny he uses the global warming analogy, when at the same time i'm not sure he thought it was the time for a tax, or whatever, given -- >> don't overreach. >> i think he likes the term -- >> i do. >> what would have been the harm in saying that this is not the time to tackle big public policy. >> he always doesn't want to weigh in, doesn't know enough about make of the issues. he knows what implications

plus john paul overshadowing warren buffett?what else is coming up next on "fast." >> is an optimistic market ignoring a possible double dip? a top obama adviser reveals the forecast from inside the white house. and it's the hottest thing on the street.. and no, we're not talking about viral videos.. it's exploding options activity and here's how to trade itr. a restaurant chain that has hungry patrons and wall street smiling. cracker barrel's ceo spins the tale next. welcome to progressive. how may i help you? i'm looking for a deal on car insurance. i think i might have a coupon in here. there's an easier way. we've got the "name your price" option. you do? follow me. you tell us how much you want to pay, and we'll build you a policy that fits your budget. and i still get great coverage? uh-huh. go ahead. you're the boss. i'm the boss of savings. more like the c.e.o. oh, oh. no glass ceiling. the freedom to name your price. now, that's progressive. call or click today. 90s slacker hip-hop. ♪ that can strain your relationships

warren buffett says the u.s.s out of the emergency room and in a low path to recovery. in today's "new york times," mr. buffett says the u.s. will have to deal with huge doses of monetary medicine being administered. he says the net debt is climbing to 56% of gdp. buffett says our immediate problem is to get our country back on its feet and flourishing. whatever it takes still makes sense. and u.s. regulators reportedly put direct pressure on citigroup to replace cfo ned kelly weeks before his surprise departure in july. citi signed an agreement with the fed office of the controller of the currency and fdic in june saying it would consider whether to replace kelly before october. kelly re-signed after hearing of that agreement, prompting citi to release him. the u.s. government owns some 34% of citigroup. frankfurt at this hour, shares are trading fractionally to the downside. if you want to know more about what's going on with banking regulation, if you missed any interviews this morning or overnight, check out

no one i know is long-term bullish. >> warren buffett. >> buffett will say -- >> i don't know warren tt is also very clear, he says, i have no idea what the market and the economy going to do for the next 12 months, 24 months but i have no doubt -- which i realize is a different academic. >> are you bullish on america? >> i would say, very concerned long term. >> i couldn't get him to simply answer yes. he couldn't simply say, i'm bullish on america. he had to give me a more reasoned answer. >> what i said this morning, michael, you probably were sleeping -- >> i probably was. >> but basically warren buffett, which i quote because i have enormous respect for him and i speak with him periodically. he says forecasts of the future tell you more about the forecasts than they tell you about the future.. when we start talking 1, 2, 3, four years out you're talking as much philosophy as business cyc cycle. you don't know the answer. you're one of the great c contrarians of all time. contrarians would tell you, something is wrong. if you want to be contrarians, you have to be bullish or beari

>> warren buffett's a brilliant man, but warren buffett gets terms none of the rest of us can get. john paulson is buying stocks you and i can buy at the same level. rather than getting a deal where i get a 10% dividend from goldman sachs and additional calls, you know, we'll call it converts on that trade, paulson's in here buying citi shares, that's a completely different investor, that's a lot more like you and me. >> paulson, this is who the mutual funds are watching, the hedge funds are watching, this is the new warren buffett of our lifetime right here. >> and the one thing he's doing right here no one's talking about, buying gold. keep that in mind, gold is slowly rising, while we do talk about citi, bank of america, and goldman sachs, keep your eye on what he's doing and what he's thinking in terms of inflation. >> do you ever, guy, look at these guys and say that guy's buying that so i'm in too? >> well, i think it's cool he's buying this stuff, but you don't know what he's selling on the other side. he could be out of these positions entirely, you have no idea. so if you

warren buffett's comments came out right in the middle of the break. as a session in the afternoon resumed, shanghai market just fell apart. a lot of traders feel it's because of warren buffett. >> thank you very much. we'll have a lot more on that. >>> let's get to the nasdaq. rebecca, what are you looking at? >> one of the few names here with a positive sign in front of it. take a look at shares of perry ellis. this is a small cap stock. the market cap less than 200 million. but the stock's up 7.1%. apparel maker reporting earnings in a very similar story to what we've heard from a number of retailers here. cost management is working in their favor. they reported a less than expected loss. they say they expect to turn a profit by 2010. what's important, i think, in all of this to look at is with the retailers, as i heard from bob pisani with deere, all of these businesses are disciplined. they are finding ways in the economic environment to make ends meet. and to do it in a way that is essentially more disciplined with a bigger look at costs, with a

am looking at the credit oblt the president's recovery and i saw the credibility question by warren buffett in the "new york times" where he said look, you can't go on spending, borrowing and printing money like this. i saw it as a warning shot. >> it is a warning shot. we talk about that a lot on the program. the threat of inflation. i think buffett also suggested something about the value of the dollar. it's entirely possible they'll try to engage in export-led recovery, which implies cheapening the dollar. cheaper dollar implies feeding inflation in the system. as we said many times on the program, at some point the medical reserve will tighten the liquidity. but they may have to do that in advance of next year's off-year election. that will be politically unpopular. the fed is under tremendous pressure not to tighten next year but it would feed inflation in the system. >> it's not just warren buffett questioning this. "usa today" pull out a poll that said 57% of americans don't think the stimulus package is working. so consumer confidence is down, which is feeding the retail numbers tha

. >>> warren buffett's berkshire hathaway has cut back on home depot and carmax and eaton and raising stocks in johnson stakes and adding 1.2 million shares of beck t becktin dickinson. >>> that's "cnbc.com news now." i'm julia boorstin. "fast money" with melissa lee starts now. >>> is the summer selloff finally here? not on this desk. we've got your correction covered. >>> welcome to "fast money," we're live from the nasdaq market site. i'm melissa lee and these are your "fast money" traders. a big show tonight. we'll show you a correction next week. and later a company that's helping america and its profits recover from giant job losses, and breaking all night, new holdings from warren buffett and george soros and other investment whales that you may not believe. what we may find. >>> a word from the street, a nice rebound from the session lows. what was that? a technical bounce there? >> i think there were late guys coming in to cover shorts and it was working for them. nail biting. i think people were watching 992 and guys were expecting a sloppy monday if we broke that. today's r

>> warren buffett rejoiced. american express up 16% this year. you must own it, stay with it, great trade. >> the gap was up 14%. >> the stocks were overwhelmingly shorted. that's the real reason you saw the first early pop, i think it's going to continue as the economy does better. and we saw the jobs number today, i think it's going to continue to do well. >> a pop here for alcoa. you want 11% on the week. >> commodities up 30% over the last couple of weeks, i own alcoa and i'll still own it. >> it was up 14% on the week, pete. >> they've acquired 150,000 acres of more shale and they're also talking about the overseas markets like the shale, they might be buyers, looks like they're trying to get in front of the big hurdle. >> and a big pop here my alma mater, apparently the returns on the portfolio weren't very good. here they are. the ivy league is lending its name to a line of clothing. developed by new york's werewolf group. the brand will be designed to reflect the school's quality, heritage and excellence. >> are we going with the nerd fas

and for some inexplicable reason, dick fuld turned warren buffett down. so whenever anybody says why do you think the federal reserve and treasury secretary night lehman brothers stock to me the answer is if dick fuld told warren buffett to go screw himself why are we going to give these guys any money? he could haveaved this company six months ago, three months ago. so a lot of things cascaded after lehman brothers went belly up. remember after bear stearns you heard commentary from federal reserve chief ben bernanke said i really don't want to do this again. this is a once in a lifetime, this is a one off. there will never be another bailout like this and he was right because of the other bailouts were much more expensive. they got -- the lead out about $29 billion for jpmorgan even if they lose half $15 billion is a bargain compared to the 45 billion we have put into citigroup, 45 billion we put into bank of america. i lost track how much money has gone to gm and chrysler. aig, 180 billion. so hay, 15 billion for bear stearns, that is in the discount r

warren buffett is raising his stake once again in johnson & johnson. don't know if that makes you any more positive because it's a stock you've been following. >> one of the things at johnson & johnson we are looking at names that have not participated as much in the rally, some of the consumer names, some of the classic investments that were defensive plays in '08 and did a lot better than the broader market. but they were a lot sharply lower. this is one of the names i think where it might actually provide buying opportunity. >> right. >> at long last. >> we are getting headlines courtesy of dow jones. soros is cutting his walmart stakes to 89,000 shares instead of 1.5 million. basically in half. we'll continue to bring you updates as we get them. these are all as of the s.e.c. filings as of the end of the second quarter. keep in mind a lot of things could happen between june 30th and today in terms of those positions. >>> next right here consumer shares one of the few losers in today's session. latest round of consumer confidence but we got readings

. >> let me tell you who i associate with economic policy, warren buffett and paul volume caner. joe biden or dick lugar the republican ranking member or general jim jones the leader of nato. those are the people democrats and republicans that have shaped my ideas and who will be surrounding me in the white house zbloonlt america, this program is under a great amount of pressure to not bring you this news. i would ask that you listen carefully. we're going to do exactly what obama himself has told us to do. we have to find out about his advisors. who is shaping his opinion heroics is surrounding him. we know it's not based in eugenics but what is it? you see your voice isn't going to be represented in this these war room in a crisis situation. right now, that is all anybody is talking about in his advisory ring or on the floor on the studio. only if there is a crisis what will they do. whose voice will the president hear? there is dr. emanuel. he said in january of this year, when implemented the complete system produces a priority curve on which individuals aged between roughly

the point is i love warren buffett and i think he is a great money giant. e fact of the matter, though, it is interesting, when push came to shove with warren and what he would do with his money when he goes, he is giving it to the bill and melinda gates foundation. i take nothing away from his ample generosity, but for a man who loves the government, he would have given it to the government. >> no, this wise financial man says, you know what? i would be nuts to do that. i will give it to bill and melinda gates because they will get it to the right people at the right time. while people argue that government is the right answer, very rarely do i see them say how much do i owe? i want to give them extra. they never do. >> here's the point, neil. right now we do know this. we do know that states are still exceeding revenue shortfalls to the tune of about $200 billion. those are the last numbers i saw. we have lending institutions that have no confidence in the system, and it's very apparent that -- neil: so how are you going to give them more confidence by thr

it's interesting to see hoar warren buffett does. if you look at their operating earns, which includes about a billion dollars in investment gains, it gets you to $1147 per share. the estimates are out there for $1238. that arguably could be a disappointment. the company also pointing out that they have over $24 billion in cash on hand, and they are also talking about the fact that their book value increased to 73,806 per class-a share, up about 5% from yearend and 11% from the first quarter. the net earnings appear to have gone up, but if you break it down, underwriting down sharply. investment income, as i mentioned, a big jump there, almost 50%. non-insurance businesses down about 50% to 574 million and other we won't even talk about it, because it's so minuscule. the big picture there is that operating income, the operating earnings at 1780, which is a pretty strong figure. >> okay. matt, once again, investment income was up 50%, so that is what in their portfolio essentially. >>> what does that tell us about some of the holdings

on economic policy, warren buffett and former fed chairman paul volcker. if i'm interested in figuring out foreign policy, i associate myself with joe biden, or with dick lugar, the republican ranking member on the senate foreign relations committee, or general jim jones, the former supreme allied commander of nato. those are the people, democrats and republicans, who have shaped my ideas, and who will be surrounding me in the white house. glenn: ok. so, who is surrounding him? here is healthcare. what are the roots of healthcare? who are surrounding him? i'm going to introduce you to these people and ask you this question -- why is van jones, the green jobs movement, why is he so interested in your healthcare? when we come back. faster and er than ever before? well now you can, introducing the new... powerful... lightweight... oreck xl platinum vacuum. you don't vacuum open floors, you vacuum rooms filled with furniture. and the xl platinum makes cleaning under, around, and behind them, fast and easy! so take advantage of this limited time no-payments-no-

on economic policy, warren buffett and former fed chairman paul volcker.'m interested in figuring out foreign policy, i associate myself with joe biden, or with dick lugar, the republican ranking member on the senate foreign relations committee, or general jim jones, the former supreme allied commander of nato. those are the people, democrats and republicans, who have shaped my ideas, and who will be surrounding me in the white house. glenn: ok. so, who is surrounding him? here is healthcare. what are the roots of healthcare? who are surrounding him? i'm going to introduce you to these people and ask you this question -- why is van jones, the green jobs movement, why is he so interested in your healthcare? when we come back. upbeat rock ♪ singer:wanted to get myself a new cell phone ♪ ♪ so i could hear myself as a ringtone ♪ ♪ who knew the store would go and check my credit score ♪ ♪ now all they let me have is this dinosaur ♪ ♪ hello hello hello can anybody hear me? ♪ ♪ i know i know i know i shoulda gone to ♪ ♪ free credit report dot com! ♪ that's where

on economic policy, warren buffett and former fed chairman paul volcker.ociate myself with joe biden, or with dick lugar, the republican ranking member on the senate foreign relations committee, or general jim jones, the former supreme allied commander of nato. those are the people, democrats and republicans, who have shaped my ideas, and who will be surrounding me in the white house. glenn: ok. so, who is surrounding him? here is healthcare. what are the roots of healthcare? who are surrounding him? i'm going to introduce you to these people and ask you this question -- why is van jones, the green jobs movement, why is he so interested in your healthcare? healthcare? when we come back. ♪ bicycle, what are we waiting for? the flowers are blooming. the air is sweet. and zyrtec® starts... relieving my allergies... 2 hours faster than claritin®. my worst symptoms feel better, indoors and outdoors. with zyrtec®, the fastest... 24-hour allergy medicine, i promise not to wait as long to go for our ride. zyrtec® works fast, so i can love the air™. in our nation's

[laughter] bill: hear a harsh prediction on federal spending from warren buffett. megyn: it looks like all-out war inside of the democratic party after president obama sends mixed signals on whether or not he will assist in the government run insurance option. truth? of lies'? video tape, right after the break. ñÑcócócó bill: 9:31, watching the big board, stocks are selling to day like yesterday, down at the open, we have been trading for like 60 seconds, literally. the billionaire businessman, warren buffett, with a harsh warning in "the new york times. he warns that the u.s. faces dramatic consequences if we keep spending more than we take in. "with government expenditures running > receipts, truly major changes in both taxes and outlays will be required. a revived economy cannot come close to bridging that sort of gap. we do not want our country to evolve into a banana republic." this is a great read. megyn: the obama administration swears that they have not flip- flop on the importance of having a government-run option in the health care reform bill. critics sa

what do you think is most important, warren buffett warns we have a lot of debt, maybe too much of it? >> auction after auction and still we're seeing prices improve on treasury securities. a couple of important things, one inflation is not a problem. we're not seeing any evidence of it. people are unsure where the economy is going and the uncertainty allows them to put more money in fixed income. and foreign investment still likes our treasury market, especially sovereign wealth funds burned getting involved in more credit risk or direct investment in private equity. they've been criticize because some of those haven't worked out well. instead they are back into our treasury market, helping us lift prices and flatten the o curve. >> zane, brown, thanks very much. as we learned, we have $3.2 trillion in sovereign wealth money. >>> credit card debt dlined 3.3%. there are a few places where kred itd card spending is up. that could be a sign of confidence or real weakness, they have to put it on credit cards. provo-o r.e.m., utah, durham, chapel hill, north carolina, og den, deer field,

>> i don't use them and i don't want to argue against warren buffett. i think medical costs is going up but it's ad pick. forbes on fox is next. >>> 9 trillion dollars in red. white house admitting that our national deficit is likely hit over the next decade. doesn't that mean a middle-class tax hike is next. welcome to forbes on fox. let's go in fouj with our panel. jack to you first, middle-class tax hike inevitable? >> yesing it is, we're out of money we can't expect to spend money and keep up. economy continues to shrink and tax rates will go up to fund that. we look at the campaign promises and he says he won't raise taxes on those making less than $250,000 a year. he confiscated all the income of the top 1% you would have 1.3 trillion dollars at the height of the bull market. that is not making up the short fall. >> they are looking at you and saying is hike tax coming up? >> treasury can keep borrowing and fed can keep printing money. there is no limit to the size of the fed's balance sheet. >> you are talking tongue-in-cheek, aren't you? >> no,

. >> warren buffett's berkshire hathaway reported a billion and a half dollars in derivative gains as it posted its best report in two years. $2100 a share 14% higher than a year ago. the derivatives gains were tied mainly to the performance of four market indexes in the u.s., europe and japan. here's a look at what's happening next week. our friday market monitor guest is james stack, president of stack financial management and inves-tech research. on the economic calendar: tuesday, june wholesale trade... and federal reserve policymakers begin a two-day meeting on interest rates. they release their decision on wednesday. also on wednesday, international trade for june. thursday, it's weekly jobless claims and the july reports on retail sales and import prices. friday, july's consumer price index is released. our market monitor guest tonight says the economy is not as good as the markets are reflecting. joining us now to explain: richard steinberg, president of steinberg global asset management. hi, rich. >> nice to see you. >> the news on the job market was good today. we got a good

land of warren buffett, omaha steaks. >> caller: i am no warren buffett.an you explain why a stock would go down significantly when it's a really high yielder? yesterday, linn energy was 11.5% yield and the stock still went down 4%. am i missing something? >> they knock it off for -- you know, for the -- the amount of dividend, the stock goes for x, you don't get that dividend. you've got to own the stock on the must-own date the day before. it could get knocked down on earnings alone. i mean, look, i'm glad you came to me. that's going to ask you whether corn-fed steak is better than grass-fed steak. i'm telling you it trades -- that's what you go to nebraska for. you lose that dividend. stock gets knocked down. gas might have been down that day also. we'll find out later, of course, because we happen to have the wonderful and fabulous michael linn on the show tonight. carolyn in connecticut. >> caller: hi, jim. big old connecticut boo-yah. >> man, fancy boo-yah. >> caller: those are my kids in the background. >> love the familia boo-yah. >> caller: boo-y

both warren buffett and eddie lamp the's hedge funds cut their positions on hd. and this afternoon, we are going to get that home builders index that is likely to also weigh on the home retailers. walmart, another one of the big box stores, extended losses, try to go positive, see that earlier in the day, an upgrade from rose dale to buy from a neutral, but as we continue to worry about the consumer though stocks continue to be under pressure today. the credit card companies are reporting their monthly positions, their chargeoff, capital one this morning reported a chargeoff that inched up ten basis points to 883 in july from june and delinquencies rose as well from june, when it was 477. this month, this past july, 483, but discover financial just came out within the last couple of hours, their analyzed knelt chargeoff rate actually sell in july to 8.43 from 8.75 in june. we will wait this afternoon for american express to report their numbers. finally, bb & t, over the weekend, we saw that they ended up buying up the colonial assets. they are now going to issue

warren buffett invested a quarter billion in china's byd and coming soon, norway's think city. the exterior is made of plastic. how safe is a plastic car. >> the safety structure is in the frame and this has a high strength steel frame. >> reporter: next yeert nissan leaf at 30 grand and chevy volt for about 40,000. and whether it's tesla roadster or bmw's mini e you notice the quiet. is it on? the second thing is the instant power. i do love that torque. now that several hundred of these are on the road the so-called pioneers who pay $850 to lease them are discovering the hassle of the charge. >> full of hurdles, full of hurdles, unless you're on top of it. >> reporter: the best batteries are still expensive and limited to around 100 milesen take 23 hours to fill it up. so farther cars seem years to get than cords and boxes. >> everybody is jumping in the game to show the public tha these cars aren't science fiction, they can be part of their future. >> reporter: when extension cords will replace gas cans and a change enthu yasts say is well worth the growing pains. >>> not ba

thousands upon thousands of e-mails have flooded in for questions for warren buffett.nected many of you with the world's most famous investor. tonight you will hear mr. buffett's take on the economy, stocks and how washington is dealing with it all. he's be sharing his solutions. here is warren buffett, the billionaire next door, restoring trust. >> you spooked a lot of opeople when you talked about how the economy was in tatters and would be there for quite some time. what has happened is it has fallen off a cliff. not only has the economy slowed down a lot, people have changed their behavior like nothing i have ever seen. luxury goods have sort of stopped. that is why walmart is doing well. there has been a resnet people's minds. we see that in geico where

>> warren buffett getting very bearish on the dollar? course, warren buffett also told to you buy stocks at, you know, and right around when the lehman thing happened. let's call a spade a spade. >> he did renew his call last winter. >> absolutely. >> including me did not see lehman brothers coming, so i'm guilty, i guess mr. buffet was guilty, ran a very provocative piece in the new york times, pretty worried about the dollar, fiscal, monetary stimulus, overstaying our welcome. these are not crazy thoughts, these are sensible thoughts are they not? >> everything is sensible until it happens, larry. here is my argument on the dollar, number one, we all know the fed printed 18 catrillion. >> quantify that? how many zeros on that? >> all know we are going to run obscenely high deficits for many years to come f that is the case why is the dollar not selling off more? hanging above the low? >> you really want euros? would you really want yens? >> where else would you park your money? for the moment is there a really viable alternative? >> to

health care, dickinson is maker of laboratory supplies, catheters and strong earnings growth and warren buffett bought 1.2 million shares in the second quarter. so never a problem to follow the oracle. >> i don't think you'll make a lot of money on t

warren buffett had an op-ed in in the new york times this weekend. let me read you what he said. the united states economy is now out of the emergency room and appears to be on a slow path to recovery. the deficit will rise to 13% the gdp. fiscally we're in unchartered territory. do you agree with his expectations about his economy? how does the broad fundamental landscape to you? >> it's hard to disagree with what warren laid out in his piece, right? the good news, the government stepped in decisively and did what it had to do. as warren points out the way they did that was by spending, spending and spending. those chickens come home to roost eventually. i thought his piece was right on target. i think we need to see the government shift more to we know that's the issue we're going to have the solve. good news we avoided a calamity. now, how do we handle the problems out on the horizon next? >> do you feel like there's an exit strategy in place? some of these programs from the federal reserve, some of the stimulus out there. i mean, lot of people wonder if the stimulus is really

ryan, i read your piece on warren buffett. you make the case a lot of his profits are thanks to taxpayers? >> this is a reuteres column and $26 billion in companies through berkshire hathaway and bank of america and wells fargo, which is a particular favorite of buffett and he got a better deal on goldman investments than the u.s. taxpayers, his preferred stock warrants returned 30% paper profit and taxpayers return only 23%. >> what about the fact he was in before the government? >> that's good to point out. why couldn't the government get those terms? >> if you're looking for ways to jump start the economy, how about the amount of money being spent on health care reform? >> we love it here at the networks. >> it's a full employment act for those of us in media, but, in fact they've been 5 $2 million spent since the beginning of this week with health care advertising with tens of millions to come. one of the ironies is, despite the perception that it's by people opposed to health care reform, the large majority, substantial m

think of the respect paul volcker and warren buffett get from president obama. i really think when he goes to them, the two people that do not have a conflict of interest, when he goes to them be a talks to them about this, he'll get the right advice. >> that would be interesting, wouldn't it? what about you, mark? where do you fall on the bernanke thing? what would wall street do if he does get reappointed? >> the odds are 78%, down from a low of 50%. this is the biggest balloon ever floated. i think it's floated more for the self-satisfaction of larry summers. bernanke should be giving a ticker tape parade at this point. nobody was laughing when the s&p was at 666 and the dow was at 6,500. now everybody -- let's laugh now that we're at 9,400. this is a trial balloon. he's going to get reappointed. the market will go higher and this is a lot about nothing. >> stop talking when i start talking. al, j.m. here made the point, he thinks that the speculation rising about summers may just be a political stop to summers be a we make him feel good but reappoint bernank

." >> warren buffett said people are greedy when fear is beautiful. the also, one area doing well today, the health care companies, what are the options markets pricing in terms of direction of those stocks? all that and more on at "halftime report" but first more "power lunch" right after this. he ran off with his secretary! she's 23 years old! - oh, come on. - enough! you get half and you get half. ( chirp ) team three, boathouse? ( chirp ) oh yeah-- his and hers. - ( crowd gasping ) - ( chirp ) van gogh? ( chirp ) even steven. - ( chirp ) mansion. - ( chirp ) good to go. ( grunts ) timber! ( chirp ) boss? what do we do with the shih-tzu? - ( crowd gasps ) - ( chirp ) joint custody. - phew! - announcer: get work done now. communicate in less than a second with nextel direct connect. only on the now network. , hard of hearing and people with speech disities access.sprintrelay.com. >>> so, various members of the obama administration dropped these not so subtle hints over the weekend about axing or abandoning the plan of health care reform after all th

warren buffett invested a quarter billion in china's byd. and coming soon, norway's think city.his is made of plastic. how safe is a plastic car? >> the safety structure is in the frame, and this has a high strength steel frame. >> reporter: next year will bring the nissan leaf at around 30 grand and the chevy volt for around $40,000. and whether it is the tesla roadster or bmw's mini e, the first thing you notice is the quiet. >> is it on? >> reporter: the second is the instant power. i do love that torque. but now that several hundred of these are on the road, the so-called pioneers who pay 850 bucks a month to lease them are discovering the hassle of the charge. >> full of hurdles, full of hurdles unless you're on top of it. >> reporter: the best batteries are still expensive and limited to around 100 miles, and they take 23 hours to charge on a standard wall socket. a higher voltage garage box will fill 'er up in three, but so far, the cars seem easier to get than the cords and boxes. >> a utility is completely prepared for what's required to install an electric driver, but

if you took everything from warren buffett and the others.the point is, the vast majority of the money in this country is still in the hands of the great middle-class, so if you want to raise a lot of money to fund the cash for clunkers programs and the health-care reform bill, unfortunate, it will have to come from us, because we are in the middle class. neil: tax cuts. we know they carry a lot of revenues. we also know that once congress has those revenues, they spend it and then some. it has been argued that the spending is already paying off, and we are seeing increases in economic activity and more revenues coming in. your seem more optimistic forecasts on the part of companies reporting earnings. that is going to mitigate your talk of a tax hike on the middle-class. >> you know i am a supply-side guy. the best way to balance the budget is to have the economy and explode. we should have 5% or 6% growth next year -- is to have the economy explode. personal tax receipts are down. i do not see the revenue growth. neil: we talked about this

>> that is the credit derivatives that warren buffett has been warning about for a decade that is that toxic scary, off the balance number. >> glenn: 644 trillion? >> yes. that's what is out there. that is the toxics. glenn: we're crippling our economy with almost $12 trillion and there's $644 trillion out there. >> out there floating around. glenn: ok. can we go down here? we have the defense of the wars and interest ron debt, $316 trillion. >> i think that's a conservative number. glenn: i believe that number is the interest on the debt. it is a trillion dollars a year by 2018. >> and again, glenn, i think it will be a lot more than that and a lot sooner. glenn: medicare fraud, this is fraud, calendar year to date, medicare fraud, $38 trillion. u.s. budget deficit. i don't even know what number that is. what is that? >> there is a million, billion, trillion -- glenn: that's got to be inaccurate. >> spending debt per citizen. there is our u.s. national debt. glenn: why would you add more spending to this? >> at the end of the gay day, the goal of this administration is to make the gov

do i blame warren buffett for the collapse? no way.if you are using the goldman sax logic. >> thank you, charlie.ó cash for clunkers. a huge hit. what about cash for computers or washing machines or refrigerato refrigerators. >> or clothes or shoes and is this obama's best brand? >> we will follow the markets and up about 17 points on the trading session. "power lunch" is back in a monday. at 155 miles per hour, andy roddick has the fastest serve in the history of professional tennis. so i've come to this court to challenge his speed. ...on the internet. i'll be using the 3g at&t laptopconnect card. he won't so i can book travel plans faster, check my account balances faster. all on the go. i'm bill kurtis and i'm faster than andy roddick. (announcer) "switch to the nations fastest 3g network" "and get the at&t laptopconnect card for free". >>> to exceed expectations, it's so successful in fact, could we see other government rebates. in a few minutes we could show e-mails about viewers in terms of cash for other stuff. what do you thi

frankly, i don't trust either side, but remember, what investor warren buffett has said -- don't ever invest in something you don't understand. america, are you really willing to invest your future in a plan you don't understand? use your head. >> she's back! >> she's back! next. finally, good news for people with type 2 diabetes or at risk for diabetes. introducing new nutrisystem d, the clinically tested program for losing weight and reducing blood sugar. hi i'm mike, and i lost 100 pounds on nutrisystem d when i was first diagnosed with diabetes, that first step was more like a giant leap. till i discovered nutrisystem d. in a clinical study people on nutrisystem d lost 16 times more weight and reduced their blood sugar 5 times more than those on a hospital-directed plan. plus a1c was reduced .9%. choose from over 140 menu options, there is no counting carbs, calories or points. i lost 100 lbs. and lowered my blood sugar level. nutrisystem d changed my life. mike is one of many who have lost weight and controlled their diabetes with new nutrisystem d. backed by 35 years of research

backing fantastically successful and more fantastically famous investors buying stocks because of warren buffett or george soros or karl icon, they're buying so maybe you should buy. so, what if i told you by buying citigroup, you're piggy backing on one of the greatest investors of all time -- that's right, citigroup's largest shareholder is an institution with a killer track record. and you know what i'm talking about? i'm talking about uncle sam. the u.s. government. yes. i'm saying right here -- the feds are better buyers than the buffet. unbelievable? more like an anti-eureka moment if you're familiar with the history. citigroup isn't the first stock where they've made money for itself and investors with the bailout. maybe you don't think the government is capable of doing anything well. put your idology aside for a second. look at facts. citibank looks like the laft big bank the government rescued, chrysler in 1980. back then, chrysler was on the verge of bankruptcy. in order to save the company, the government co-signed $1.5 billion in loans. that was a lot then. the chrysler was responsi

warren buffett once famously said -- now that the tide is back on the rise how will we spot the nextoff? jake's no stranger to the evils of wall street. a securities lawyer, he has represented victims of eight ponzi schemes in just the last five years. business has been good. >> it is a bull market for ponzi schemes, unfortunately. >> absolutely. tell me this. if there were other people helping bernie madoff, should others with the last name of madoff be worried? >> if you have a last name of madoff, you're in a lot of trouble. this frank, the number two guy, knows where the bodies are buried. he's going to be singing like a canary. mark and andrew, the sons that ran the trading desk, well bernie said that he was not charging management fees just brokerage commissions. where are the trades. >> reporter: are the commissions. those guys are in a lot of trouble. peter, his brother, the chief compliance officer and general counsel was make reports to the s.e.c. i think they're going to be able to prove that he knew those were false reports. i think he's going down. ruth madoff, the bookk

. >> i'm not warren buffett, bill gates or jordan. how smart do i have to be. >> not that smart. you can take right steps and do well. right now oil, gold, resource brands of are going up. we are having deficits and the value of the dollar is going down so people want money in hard assets. so that is a simple step to do well. >> we started off talking about the rates, the fed is keeping the rates low, but when it comes to credit cards, the consumer, the one holding the card we are stuck with high rates. why aren't the banks passing along their wealth. >> they are trying to make as much profit as they can until the new law goes in to affect in which is february of 2010. they sigh now is the golden opportunity to make more money than ever. >> so what do we do about it? >> go to a national nonprofit consumer counseling organization. i have been taking a lot of calls about that. my favorite place is cambridge credit counseling. 800-987-2200. their website cambridge credit.org they have existing arrangements to get you 6%. if you are considered a hardship of 0% an they can help you. >

. >> it seems like warren buffett was right on this one, maybe a tad early. >> he's not a market timer. everybody expects him to be a bit of a trader, he's becoming more of a trader, we learned that with the j & j moves, but this guy is looking out five, ten years and he was dead right. >> today 'big buzz kill was oil. down 3%, oil stocks down big. let me tell you something. is that what was keeping a lid on the rally and all the technical aspects to a key reversal? boy, we can have some fun with this. >> the rally was choked off by oil prices moving oil, absolutely, but oil was a technical trade. we approach $75, ten-month high, could not elevate above $75. rick, we rolled over and challenged 7150. right now after hours we're traiting 91.34. we had inventory data come out. i love out, i think it's going higher, longer terms, but you have to get to the sidelines, you have to respect the technicals, and that reversal tells you that market is topped out. >> which means the service names may be shorts as well. by july 6th, it was trading down to 89. i think the oih is for a big move down.

>> who i associate with on economic policy, i associate with warren buffett and former fed chairman paul volcker. if i'm not interested in checking out my foreign policy, i associate myself with my running mate, joe biden or with dick lugar, the republican-ranking member on the senate foreign relations committee or general jim jones, the former supreme commander of nato. those are the people, democrats and republicans who have shaped my ideas and who will be surrounding me in the white house. glenn: ok. i'm only taking his advice. you want to know what he believes? see the people he surrounds himself with. that's his advice. great. please, america, let's follow his advice. we already know of at least five radical leftists currently advising the president of the united states, and these are just the ones who are open about their radical beliefs and far left ideas. one, van jones. introduced you to him last night. he is our green jobs czar. admits he's a chiewnist! john holdren, the science czar, the forced abortions guy. he has said and i quote "neither the declaration of independence nor