tv CNBC Reports CNBC July 10, 2009 8:00pm-9:00pm EDT
system. >> i'm out of time. i'd love to do more on this debate. i think they will go beyond that. thank you very much. dennis neal, you are up front and center. you have all kinds of stuff cooking tonight. >> i'm ready to go. >> how about getting aig off the taxpayer dole. end them! >> meanwhile, we ought to do what we say we're going to do. those people earned that money. >> you're sure they earned. >> it the ones who left, they aren't the ones who lost all the money. the ones who lost all the money left rich. the one whose are there. the "cnbc reports" starts right no now. "cnbc reports" a downer of a week but that doesn't mean we're down-and-out. dennis still selling the hope and for good reason. >> this horrible frightening recession is ending now. >> dennis has a new round of evidence tonight that shows he's right. >> show me the money. >> aig's execs get set for bonus
time. are they deserving. an attorney representing them nor an cnbc sports exclusive. christmas in july. see which retailer is getting ready for the christmas season way before december 25th. is it a good idea? dennis neal starts right now. >> good evening, i'm dennis neal, rough day to end a tough week, score one for fear. it started at 843 monday morning and by this afternoon ended 879, down almost 2% for the week, stocks down 9% from highs in june. that's okay. i still say this recession is ending now. the road to recovery will be a long one, riddled with potholes here and there. let's get used to the bumpy ride, even at the start, end of a jarring week like this, you can find signs of hope.
here's one from michael darta, the chief market strategist at mkm partners. he put out a report noting pullback in stocks and said we're much better off than one year ago. it is important to remember is there always excess pessimism at the trough of ooh business cycle when we're near a turning point from recession to recovery just as there is a surpolice of optimism at business cycle and stock market peaks. thanks, i needed that. now to the real deal with dennis neal. where are we? there. i used to think i covered business. now, i'm not so sure. many years ago, i did a summer internship at the "washington post," i even worked for that watergate super slooth bob woodward i put 16 years in at
the "wall street journal." i picked up the "wall street journal" today, my gosh, government gone wild. look at today's government front page, i count, mygoodness, i couna total of ninetories on the front page of the journal and it's all over t place, stories on government deep and troubling intrusi into companies and industri. inside t pap, about a half-dozen more stories, gmow a vernment subsidy, boom, a government subsidy i chapter 11. u have citigroup, another vernment owned satellite, shaking up management to mollify washington, the g8 summit. health care coverage, wall street complaining about treasury and warrants and treasure to modify loans from wall street and chase telling heck with it, sell our warrants into the market and aig begging to be allowed to give its bonus
contract for employees and payback time for u.s. bank, amazon in a tangle and tomorrow story on government herd iing or business and the government wants to extend the t.a.r.p. payout plan to extend it to small businesses. where is the systemic risk t.a.r.p. was aimed at fixing. i'm sorry for the pain but sometimes a business that gets into trouble ought to be responsible for getting itself out of trouble. has the world gone mad? government surely has gone wild. this is exhausting. a lot of critics at the capital now saying, serves you right, business, wall street failed to manage risk on its own, cars failed to sell at a profit and government failed to manage the hou housing. on and on and will government do a better job? i say the feds and states will do a far worse job. when a business gets burned
badly,ou canry to prevent it from happening again by passing new flame retard dent regulation. the best fix is the banks themselves have endured so much pain there is no chance we will get that close to the flames again. let's bring in the "real deal" squad, one strategist and three flame flowers. the host of a radio show on the left, tanya acker, "huffington post" blogger and lawyer and greg knapp, host on the right and so is steve moltsberg. thanks for being with us. i say it's unending, this obama intrusion on business. >> it is out of control. you nailed it perfectly, it will only get worse, not get better. this man has been in office less than 2100 days, could you have imagined in your worst nightmares what he has done to the economy, wealth, markets, business, wealth, auto industry.
it was unfathomable a few months ago. it will get worse. he said in los angeles at a fund-raiser, you ain't seen nothing yet. >> tan yachlt. >> i love this ahistorical approach much of the right wing takes to much of the administration policies, as we move forward, when richard nixon created the epa, i'm sure people on his side of the aisle even further right, why is government getting involved in protecting the environment when the united states passed a civil rights act, i'm sure folks were like, why do we need a civil rights division. >> the civil rights act was so people could be free, the civil rights act was for people and business is not for the federal telling- >> government needed to regulate that, sir. >> absolutely. let's stay on the actual topic, which is the economy. when you get the government so involved and started with bush, now obama, not right or left, right or wrong, then they start
to make things worse, way worse. i couldn't agree with you more, dennis. you cannot have free enterprise on the way up and socialism on the way down. >> what socialism? >> and companies that blew it. >> what socialism. >> that will make them pull back the next time because they feel like they get bailed out. >> hold on a second. >> let's let leslie get in on this. i can't help but think a lot of what government is doing is no longer aimed at healing, avoiding systemic risk, aimed at finger wagging and making sure they get their hooks as deeply into business as possible. >> absolutely incorrect. this kills me. the majority of voters in america voted for president obama to do exactly what he's trying to do. >> take over businesses. >> and if you expect in over 2100 days something over eight years to be repaired, put down the crack pipe. if he wasn't doing it you would be complaining and finger wagging at that.
don't forget the best socialized program in america medicare, welfare, social security, ssi, et set remarks how come you haven't been complaining since fdr. >> you want a historical perspective. >> fdr made it worse, not better. >> we expect. >> one at a time, let steve speak. >> the historical perspective is there have been columns written in the "new york times" comparing the obama economic policies to hitler and many columns written in -- >> please -- >> excuse me -- one second -- >> here's the thing. i'm sure all of you -- >> tanya, stop talking for a minute, please. i'm sure all of you have really intelligent points but no one will hear them if we all speak at the same time. tanya, take it. >> with respect to comparing the president of the united states to hitler is incendiary. the pointed i was making
previously, we expect our government to respond to new information, new crisis, we expect it to do that and expect it to do it responsibly, be it economic crisis or new discoveries about the environment. . that is what we expect. talk about socialism. >> too long, tanya, i have to cut you off. greg, we'll come back to you first, as they remind me in the control room. next up, the man in the midst of the mortgage mess, wait until you see what he did. straight ahead, bonus time again at aig. we have a lawyer representing execs about to see a big payday and the big picture of the week there. is a lot more to this picture than meets the eye, back in o minutes. i believe that there l mysteries in the wor,
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beginning yet this doesn't look like a terbly high amount of money. a lot of these guys work f pit tans all year longo get a nus at year end. >> dennis, you're correct. on the heels ofhis are other bonu paynts due march 2010. that is the issue also at stake here. i think part of the oblem with aig turning to kenneth feinberg, it appears he has only jurisdiction over payments made after 2009 or contracts entered into. these contracts were entered into in 2008. >> what aig says to heck with it, weon't pay them at all? >> they're likely to get sued. that's what it comes down to. these were retention agreements, the people stayed, they should get paid. >> what do you say, greg. >> absolutely. this is what happens when you have the government get so involved, you have 535 members of the board, congress. he's right, this is a contract. what law will we want to break
next? why would they want to go into business, if they buy up with t.a.r.p., if they change the rules in the middle of the game, if they didn't want to pay them, they should have let them go bankrupt or worked it out. >> they're not the one whose bankrupted the company, those guys have already 0 flown the coupe. >> that's irrelevant, when any government owns 80% of your butt, it does have the right to say whether or not you give bonuses. >> you are saying the government has the right to break the contract? >> the majority of americans make what, $24,000 a year? you said they're working for a pit tans. >> i'd like to ask gary a question. >> go ahead. >> i'd like to ask gary a question. gary, do you fear these people entitled to these bonuses now and down the road might again fall victim to the barney franks and obama pop you risks theories and playing to the crowd and putting their names in the paper to the point they had hire
bodyguards to protect their famies? >> i don't thi it will be to that extent but certainly there will be a lot of politian whosenject themselves into this debate. at the the end of day, every government agency, every law firm, everyone who looked at these contracts say they're enforceable and they have to be paid. >> to an anya, you're a lawyer, you want them to break these contracts, you say the average american makes $24,000 a year, this is not socialism, you don't want the government to break the contracts. >> there are certain circumstances you revisit contractual obligations. that happens in contracts all the time, happens all the time. what i'm wondering is his clients, some reason why they can't somehow defer those payments or get the payments further down the road upon reaching certain benchmarks. >> why? >> we own 80% of the company, we had to bail it out, i'm wondering if that's a proposal on the table.
>> nobody's talking about now that we own the company, don't you want to keep good people on in our company? screwing them -- >> of course i do. i'm a good person, give me the bonus, that's crazy. absolutely crazy. nobody's paid -- everybody can argue nobody's paid what they're worth. when you go to the government and say, we're broke, please please help us, it's like us going to a bank for a loan and saying, by the way, i have all this cash stocked away and still expect them to -- >> the problem is, congress, most of the american public don't understand a bonus is not something you get in addition to 100% of your pay and here's a little extra, a bonus is part of 100% of your pay and allows a firm to rip you off and go cheap when you had a bad year. >> a bonus is a key componentf th industry. it's not reall a bonus, it's a retention payment. also, it's not all wealthy competitive executives we're talking about.
400 employees, the again it did his job, woman in human resources did her job. >> these are loan, if i left the firm early, i'd have to pay it back, right. >> absolutely. >> what's the problem? >> we're forgetting here, going back to the question i put on the table, going back to what i put on the table at the outset, i'm not suggesting everybody getting one of these bonuses or has some entitlement to it is some gazillionaire. that's not the point, i'm looking at the financial aig is in and one potential option might be that people defer those payments with interest when the company is better situated. >> leslie. >> the question is they didn't ask for more money to pay the bonuses, they have the money to pay the bonuses. >> we're paying aig right now. when you say the american people's situation with losing their homes and not having jobs and not having health insurance
is irrelevant, i disagree. >> we're talking an average of $60,000 per person here. you know what they spent to save a certain kind of mouse in nancy pelosi's stimulus bill. >> $60 million! >> one at a time. one at a time. go ahead, greg. >> here's the thing. we have to understand how this industry works. these people will be lured away by the other banks that don't have t.a.r.p. money to give them more money. we'll be holding a bank nobody wants to work and won't have the good top people we need to turn aig around so we can get out from under it and get our money back. >> let me get a question from gary, you hear tanya and leslie very passionate and very articulate. they keep bringing up the hardship and pain all other americans have gone through as if that is aason to justify hurting people at aig how do y fight that, gary. >> that's not what i said. >> let's let gary awer and then you can say what you did say, tanya. >> certainly, thene thing
again, this is a small percentage of the t.a.r.p. money that aig has received. >> oh, my gosh. >> i don't understand why somehow the perceptions that employee payments e somimes th they should be delayedr not paid a all whereas the her money, her debts owed are beinpaid. again, these are not all wealthy executives, they are open, i think, to any discussions with flexibility. at the end of the day, they should get paid. >> isn't this all for show, tanya? >> i don't know it's all for show or not. i certainly point out there are many employees, lots of companies and lots of private companies an lots of california state police who've had to defer salary, have to take io ukss -- >> and your point being. >> that happens all the time. the notion we're talking about this group of aig executives as if they're somehow -- i think it's not accurate. >> the problem is they're not members of a union that contributed to barack obama, that's the problem with them.
>> but they're members of a company that was bailed out by the u.s. government, which is funded by the u.s. tax dollars. >> i have one other question. >> i have one other question that goes right with this one. >> writing a check for wealthy people -- >> you want to punish them. >> i'm not getting a bonus this year. >> leslie and tanya, people on welfare, taking money from all of us, shouldn't we be able to make sure they're not buying cigarettes and not buying beer and not on drugs. >> absolutely. >> we're not allowed to, that's against the law. against the law. >> one second. we absolutely should make sure people getting -- >> hang on, guys, hang on, we have to come back. gary, thank you very much nor being with us. hang on just a minute, we have to take a break. when we come right back, meet the poster boy for the mortgage crisis, wait until you see what he did and wants to do to get out of it. the big controversy behind this photo. we have some evidence tonight that will make you think twice before believing what you see.
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i'm taking aim at terry, here to put it in a new light for us. thanks for getting with us tonight. you're about to halt your mortgage payments this month to push your lender into giving you better terms, right. >> to try to do a loan modification. >> exactly. we're not talking just the home you live in. you own more than one home in that san francisco area. how many do you own? >> i own teeth tal of six investment homes. >> six investment homes that have your name on them. don't you own four others with a couple pals as well. >> that's right. >> ten homes you own. >> and your lenders are wamu and wachovia subsidiary. is this their falt? did they deceive you. >> absolutely not. >> why buy so many homes. isn't that kind of your fault. >> to some degree, i took the risk. when you invest, you're taking a risk no matter your investment, absolutely. >> i might invest in one or two homes, i don't know if i'd invest in ten. are those homes vacant right now and weeds growing up and foreclosure signs.
>> absolutely not. these homes are all rented with tenants. in oregon i have a vacancy but have a property manager trying to rent. >> it do you have enough money to pay the mortgage payments or are you out of money? >> i'm current on all my mortgages. the thing i want my lenders to do is give me a modification so i have a long term strategy for holding onto these homes. >> tis the season for giving. do you have a question for gary. >> if you're cash flowing these homes because you invested wisely, why should you gets the modification simply because the value of the loan went down, i'd love a loan modification. >> great question. i have arms on these homes i have a five year window with a minimum payment and go to an adjusted fully indexed payment that will basically double my payment. i'm trying to be pro-active to adjust these loannous so when that 5 year hits i'm not looking at double payments.
>> is he doing a good thing or bad thing here, talk to terry. >> i think this is perfectly legitimate. here's a guy paying his mortgages, bills on time. looks around, sees obama's plan that benefits those who don't pay their bills on time. he's saying, i've been doing everything right, let me try to benefit here a little bit. >> he got us in this problem. >> come on, tanya, sorry to call you dear. >> you can call me dear. >> i think he's the exception rather than the rule. most people doing modifications are doing it to save a primary residence. i think these modifications can be a good thing. they're just like city bank and other banks got in trouble and got taxpayer help, those same taxpayers sometimes not because they're trying to flip or whatever you all want to say, being greedy, some people got into some trouble like lots of others in the company and needed to get some help. >> got into some trouble.
>> less li this ni gentleman, terry, has the money to make his payment and is going to stop. you think that's a good thing to do? >> i don't know i necessarily agree with the strategy, personally, having that five year arm on my own home, did push my lender not with that strategy for modification, i got one and put me into a 30 year fixed at a lower interest rate than the market has currently. >> whose fault is it, leslie you took a five year arm. whose fault was it? the barnk's did they trick into it. >> my responsibility and my responsibility to look can i pay for the home? do i sell it? try to hold onto. >> it i want to build bridges. >> i don't agree with the strategy. >> let me just agree with leslie for a second. i'm glad i want to agree with her. if banks want to voluntarily modify a loan with somebody, fantastic. the problem when we try to force it the banks are waiting to see everything the government will
give them and not doing all the modifications and changes. >> what do you say? >> they have taxpayer money, taxpayer dollars. >> speaking of these banks, speaking of these banks and the voluntary decisions we should allow them to make, they got taxpayer dollars, they got some of my dollars and some of yours. we're entitled to taxpayer dollars. >> i'm tired of hearing, they have taxpayer money and now, let's dominate them like our little pile. >> americans hold onto their homes, americans hold onto their homes and lenders keep getting paid. if you were to take my home and put me into foreclosure they would lose their shirts and lenders are. it's better to keep the customers now, economically better for the economy and american people and lenders in the long run. >> he's not doing anything wrong here, he's trying benefit as a responsibility multi-homeowner the same way irresponsible
homeowners are benefitting, that's the only thing he's trying to do. >> terry, so nice of you to come on and let us beat up on you a little bit. don't you think you are doing something wrong? you're gaming the system, one of the guys contributing to housing bubble and congress wants to blame the guys that gave you the loan. >> i have been trying two years to modify my loans. one of my lenders gmac did it two years ago, i have 5% loan and every year pay principle and interest. that worked, i'm neutral on the property, making payments on that property. i called washington mutual and now chase and call them on a regular basis and get someone being paid minimum wage says we can't do anything for you this week, next week we can do something for you but here are the rules next week. >> how much money down? did you have to put 10, 20, 25% down? did you get any with zero percent down. >> i did 10% down with an option
and second behind it. >> gary is showing us if you do pay your mortgage right now, you're a chump. >> gaming the system. part of what's wrong with the entire thing. real dealers thank you very much. special thank you to terry, awfully nice of you, good luck with gaming th system, babe. still a lot more to come tonight on "cnbc reports." g8 to g 0. is anything accomplished? does anything ever get done? is this just a big waste of time and money? see what dennis thinks. plus, the picture that has heads turning all over the globe, this may be the biggest thing to come out of the g8. getting set for the season, not the school season. why not? only 168 days away. sewho's getting a jump when "cnbc reports" in o minutes.
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something when a crisis commences, congress springs forth with a flurry of sound bites and flurry signifying something, action, i guess, never mind whether that action is the right one. it is happening yet again as treasury secretary timothy geithner addresses a joint congress today, a crackdown on derivatives. it is certainly true a few derivatives played a key role in the financial meltdown, mortgage backed securities, cdos, credit default swaps but thousands of other derivatives are traded, too. now the obama posse and congress want to slap owner rouse regulations on all of them. that is a critical error. it looks good but will hurt investors. it won't help them, could send more business overseas. derivatives let delta air lines hedge its rise in oil prices and boeing and bear can offset price swings in commodities and material.
these companies have done a fine job at it. lev them alone. congress won't do that. before you applaud their good intentions, i have two words for you, sarbane oxley. that post enron crackdown that passed congress in 48 hours, it contained questionable measures that languished in congress unapproved for five years and businesses are still hurting from it. small companies spend a lot of their profit growth on new accountants, big companies take their new stock listings to exchanges overseas and sarbanesoxley did nothing to stop the new countdown, one congress is using for a new round of photo ops. it's photo overtime. we start with this picture, the got ya shown around the world. it appears to show president obama eyeing the derriere of a 16-year-old. it seems niclolas sarkozy is
getting an eyul aswell. jasowith the "huffington post" and tika is the founder of tycoon publications, what do you think. >> i think the president is getting a bum rap. his picture was taken out of context. when you look at the video, it's a very different image than the photograph, the still photograph really has niclolas sarkozy, th president of france sort of staring at this young girl with a weird expression on his face and the president got tarred and feathered by the same brush. >> hang on, guys. let's go to -- jane, i need to check, was that a pun on purpose when you said a bum rap? that was pretty good. >> thank you. >> let's go to the videotape and show you the fuller picture. the picture shows one thing, video shows something different, the president not doing anything other than being gentlemanly, wasn't leering at the young lady at all, while a picture may be
worth a thousand words, it depends on the angle. what do you think, jason. >> as a news xhurks it's been like this. concern about the example obama is setting and then, boom, let's check this out in hd, big is live. it seems a little bit weird and contradictory to me. this derriere is going to have its own wikipedia page by the time this is done, i'm convinced of it. >> i think this is overplayed and wonder if somee did ts to embarrass the president. >> it is overplayed but this will be on everybody's t-shirt, there will be hats, cups, mugs, this is a story that will get told and retold for generations to come, it's not going away. >> this is what happens when you elect a president under-age 50. if john mccain had gotten elected, that photo wouldn't have run anywhere because we wouldn't have believed it. christmas in july. sears looking to pass back to school and halloween all the way
to christmas, on sears' website there, are ads for a two day christmas sale. even some stores have christmas displays like this in new jersey, 168 days to go until december 25th. i say this story is overplayed, don't see it as an economic indicator, what do you think, jane. >> layaway plans are coming b k back, indicative of the economy and people don't have a lot of extraneous income to spends and reminding people, buy it now a have it by christmas time. >> i always run late. >> jane,ou're absolutely ght. this is an old school retailers trick, thingsare terrible righ now, people can't aord to buy things off the bat, this is a great approach by sears, remove the stigma of layaway plans and will help a lot of americans pay for capitalism presents this year. >> move to our third topic, the hangover. this movie has raked in $200
million so far. it cost practically nothing to make. i say this story is underplayed. i saw it last week. it is hilarious and very adult. it is about time hollywood made a good comedy for adus only take t. >> i amying to see this movie. my marketing director at the tycoon report has been raving about this movie. i promised i'd mention the name tonight and talk about it. he's begging me to go see it. it's underplayed. keep it in the movie theaters, i want to chance to see this thing. >> jason. >> this movie built hype in all the right way, came in under the current, used the internet to market this and the movie came out and delivered exactly what it promised. i think its success is well earned. i think it will put hopefully zack in a whole lot of other movies. i thought the movie was fantastic. i still prefer pineapple express from last summer but it's great. >> pineapple express was way too
violent. this is not mean-spirited. thanks a lot. appreciate you being here. i'm taking aim in the crosshairs, anyone who said the g8 was worthwhile, i say scrap the whole thing. looks like they were at least having fun. tonight, bitter bloggers be wear, it might be time to hit back. you're the colon lady! diarrhea, constition, gas, bloating. that's ! n i tell you what a diffee phillips' colon heal h made? it's the probiotics. the good bacria. that getyour colon back in balance. i'good to go! phillips' colon health.
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we talked about it before. it's worth noting again here, that misleading photo of president obama in it tally. it seems to be the biggest story to come out of the g8 summit. so what does that say about the significance of that summit? has the g8 become irrelevant? nina is a senior fellow at the center for american progress. thanks for being with us. i follow the g8 every year and read all the dispatches. i can't ever recall it ever doing anything. it's all talk, no action.
>> i think you're in part right. this year, they did do a couple things i think are significant. one, they pledged $20 billion in food aid, not just giving food but development of agriculture in the economy, the developing econo economies significant and also they realize, i think, they're unaccountable and have this new plan try to be more accountable and issued a report based on last year's pledges. it's something. >> i appreciate your optimism. they have no firm deadline on any kind of green action i'm glad about. china and india, the two biggest polluters in the world, not going to go along with anything. i think obama came up emty. we are out here the usa alone and they want to hurt our industry worse. they almost kind of hate us. there's no cooperation at all. >> let me answer that a couple ways. we do need to coordinate and maybe the g8 is a relic, as you
say, these are the industrialized democracy and represent 14% of the population. maybe we need to move to the g20 a more inclusive bodies that has the power players, china and brazil in it. the two biggest polluters are us and china, not china and india, us by quite a bit. >> 20 heads of state never got anything done. it should be one-on-one. u.s., canada, japan, france, br britain, russia, so world war ii. it seems like g8 ought to be brick countries and a couple more alongside with us. >> i agree with you, the brick countries have to be brought in. we need a place to coordinate and bilateral doesn't work anymore. you have a global economic crisis and swine flu in every country and global warming. >> they didn't do anything on any of that. what came out different today than a week ago?
>> first, it's the g8 meeting not the g20. i'm saying g20 is probably the better forum to include these other countries. >> g8 pledged $20 billion in food aid and to the people chronically hungry, it's not nothing. >> where do you get $20 billion, i understand obama was promising extra from the u.s. when we can't afford it. how is this progress. >> it was 15 and became 20. it's progress in the sense there are a lot of people out there who are hung grichlt eventually, it harms american security if more and more people are -- more and more states are failing because their populations can't eat, et cetera, not only just humanitarian. >> let's dream big dreams, say we disbanded the g8 boom it's gone. would anything bad happen as a result of that? well, only if you replace -- i think so unless you replaced it with something like the g20 or other group more inclusive.
like i said, we have these global problems, we need a place where we can pressure each other, for example isolate china on some issues in order to get something done. >> i tell you, thank you for being with us tonight, nina. if they disbanded the g8 or g20, the only people who would miss it are the reporters who have to go overseas to cover it. i don't think anything bad would happen. thank you for being with us. >> my pleasure. >> across america tonight, julie, brian fisher, manager for the business chronicle, amanda carpenter with the "washington times" and katherine reger with the arizona republican and julie joining us on the phone from the california press. california will be our first topic tonight proving to be the poster child for bad state finance. but will their problems be yours, too? let's start with arizona. >> hi, dennis, california's problems, they get a cold and we sneeze. we also benefit from their
problems. we get a lot of residents and businesses that move here because they don't like the high taxes and high priced housing there. >> op-ed column in the "wall street journal" a business guy saying, i'm moving out, california created its own problems, raises taxes way too much. >> here's the bottom line. we are going to be seeing a lot of eyes on california while this iou business plays out. in georgia, we're facing another shortfall to the tune of a billion. as legislators run out of things to cut, they will be floating a lot of ideas, sit back watching to see if ious are the way to go, how the federal government responds. it was back in the spring they suggest they pay their taxes in gold. we will see interesting ideas and be paying attention. >> it seems like this isn't that much of a crisis, why don't states cut their spending if they don't have enough income. >> absolutely. i have to say, california's
problems are foreign to us up here. our state has $36.6 billion put away. we don't have a state tax, we get dividends from the oil proceeds every year. so we look at it on cnbc and look at california and think, wow, we're glad i don't live there and we hope they don't move here. >> next topic, amanda carpenter, "new york times," mortgages and foreclosures, we had big fight on the air how far government should be going, something left to the banks, now obamaites are pressuring servicers to do more on loans. i think that should be the servicer's decision. >> they have a new program expanding to give mortgage assistance to people 25% under water in their loans rather than 5% we started out because they feel not enough people are taking advantage of the program and i think left completely are two critical questions, did any of these people who can't pay mortgages take out cash out
equity on their homes and if so they bought the home and can they afford to make mortgage payments or not? your best earlier could afford to make the payments and still wanted them to be modified and i don't think people should use that. >> the refinancing plan is different than the loan modification plan. the refinancing is you can't be behind on your mortgage. it's just that you're underwater. so here in arizona when obama announced the plan here, and we heard it was one of 105% it doesn't help anybody. we had a 45% drop in home prices in the past few years and that's not somebody's fault. somebody comes in and buys a house and puts 10% down and does everything right and all of the sudden there are the foreclosures around them. their home values dropped 30%. that's not fair. >> what are you working on for monday or the weekend? julie bryant in atlanta? >> we're going to watch as the private equity investors kick the tires on some banks in the
region, thinking about whether or not this is the time to invest in the banks, clean them up with their own money and see how things go in the long-term. >> i don't think anyone is going to kick tires, too afraid congress will come in and cap profits. amanda carpenter, what are you working on? >> the ongoing fight within the gop, whether they're going to go against the stimulus bill in the 2010 elections or not. the republican national committee says they're going to at the same time retreating senate candidates like charlie crist who supported the stimulus spending. it's a big problem. >> brendan, joekelley? >> it's sarah palin's world and i'm living in it. i'll be talking to leejai johnson and sizing up what he's been through over the past couple of years. >> katherine is it? >> hi, yes. the loan modification, why it's not working in arizona and why foreclosures soared 35% here last month. >> all right, is that it, guys? we're going to wrap?
thank you so much for being with us. have a great weekend >> thanks. >> thanks. >> love working with scribes. thanks very much. up next, blog you. the online geek squad had their chance to go after me and now i'm turning the computer tables and i play hard ball. "cnbc reports" is back in two minutes. [ bottle #1 ] oh heyy... magic eraser thing again.an clean freak. [ bottle #2 ] whoa... is he betterhan us? uh, i mean i mean i feel like it okou like three tes longer to do whatever hdid... dude, dude, he's got...the --li. magic man. he's a magican.eah, i guess... what? i just want to squeezed. [ le announcer ] remove three e and get thisnbeatable clean guaraned or your money back
on earth last night, the blogosphere and i got a new load of vitriol and grief. some of it funny, a lot of it is rather juvenile. blogger carl denninger last night. moments before that an exclusive with google's eric schmidt, google ceo, smart blogger you've never heard of, what to do. we cut carl's time in half. i got a dennis kneale page on twitter and accusations a-plenty that led to this, a ploger on a site called ibankcoin.com, get it, i make a lot of money. he writes "naturally cnbc is for [ expletive ] hats. is that the best you can do? he writes "this dennis character is beshmirching those who blog." he goes to the secrecy of the vote, protection for informants and whistle-blowers and says
look here, ex-pleive, some people have important things to say and require anone nimit to do so. let's read through some of the comments posted to the fly's rant. one arodite observer says, "dennis kneale fondles cats." here's some shrewd competitive intelligence from another poster, "is that a dead squirrel on his head? someone should hit it with a broom." there's this one, the bottom will come l when kramer and company are dragged off the cnbc studios and hung from meat hooks with piano strungz. i don't think you mean hung. i think you mean hanged and it's not piano strings it's piano wire and that's what the nazis used meat hooks and piano wire? point taken. shame on all of you guys. i'm dennis kneale. "cnbc reports" is back at 8:00 monday. thanks for being with us. have a great weekend.
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