tv CNBC Reports CNBC July 21, 2009 8:00pm-9:00pm EDT
there's reason for hope. i've always thought this big slide was way overdone. there's no way that the american economy was worth so much less so suddenly. that was all fear, no hope. that was our problem, out of bounds. now, look at tbroader s&p 500 i. up seven days in a row, up 8, almost 9% in that span of time. that that's nice. it's even nicer when you look where the s&p has gone since the market lows in early march. we are looking to march. now, that is up 40% on an incredibly broad stock index. the dow is only 30 different companies. this is 500 companies and up 40%. as for the nasdaq, things are looking up in tech land, rose another seven points today, racking up the 10th up day in a row. ten day is an row, guy, that
hasn't happened in well over a decade, september, 1996. what's with all the giddiness, armageddon is off the table and fear is on the fade here and i think the markets like fed head ben bernanke's performance on capitol hill today. this guy helped save our economy from total collapse and i think today he went a long way to saving his career. his term expires in january, has pretty of critics in congress and looking more likely he will be appointed, good for the markets. i'm sure we will see a steeper decline at some point. it's a mathematical inevitability, the 13th century mathematician discovere numbers that folds back in on themselves and means stocks climb a wall of worry, two steps forward, one step backward, never goes straight up. no pain no gain.
now to bulls and bears. why hide behind false modeststy. the session is over. looks better and better. let's hash it out, what's happening in the economy and what fed chairman ben bernanke had to say. and from global advisors, and bill smeade, a bull. and john brown a senior marketing capitalist, an extremely bearish guy, at least in the u.s. and lee munson, chief investment officer with portfolio asset management. lee, i think you mentioned last week one stock you wish you had gotten into, san disc and it went up in a single day. what do you think of these markets and what do you think of ben bernanke today? do you think he gets reappointed. >> i think he gets reappointed. the only thing he that sand op-ed piece is he thinks the fed
exit will be smooth and timely. he's a smart guy. he clearly stated today he has four or five ways to take out excess liquidity, $800 billion in reserves. he has a plan and not afraid to leave the bunch bowl maybe a couple minutes longer than he should and under such skrcrutin won't make the mistakes greenspan did and didn't say anything different other than the smooth and timely part. >> one clear message, he will not be raising interest rates too soon. we may not see it until 2011. that could be good for the stock market if he holds to that, true? >> those are interesting and important, huge institutions, endowment funds, pension plans, dramatically underowned large cap quality u.s. individual investors own the least amount of common stocks they owned as a percentage of their net worth going back the last 15 to 25 years. what you've got, you've got what you're talking about and the
government on your side. there's a squeeze going on that should go on for two or three years, we think. >> investors should flood in. now to the other side of that coin, my favorite sometime bear, michael pinto. i read an article you wrote either yesterday or today, for one of the first times, you were talking about how to fix all the problems you see, see way too much inflation, way too much money supply, the fed has done too much prom ask yiscuitpromis. you talked about tax cuts. >> you have to empower the individual and takeaway the power from government. that's how you get growth. growth has to come from an economy that provides a stable currency. that is the federal reserve's purview. why anyone has any confidence in this gentleman is beyond me. he thought it was a great idea to start buying the 10 year treasury note when it was trading at 3%. that is unbelievable.
let me read to you what he said on june 10th, 2008, three months before the economy collapsed, this is one line you have to keep in mind, he said the risk that the economy has entered a substantial downturn appears to have diminished over the past month or so. he doesn't have a crystal ball, he's human being, i respect him and call him banana ben. >> you don't respect him, you actually would not reappoint him. >> i would only not reappointment him because i'm afraid they would replace him capable of collapsing the dollar at a greater pace. >> thank you. your piece. >> thanks for having me on your show, i watch it almost every night, i think it's great. i thought i would agree with michael but i don't. i have great admiration for bernanke and paulson handed a can of worms and they have avert ed a catastrophe.
they averted a catastrophe in the financial markets but they haven't averted a recession. that has the problem, is that the financial system still remains inflated with all the holes in the balloon plugged by the taxpayer and hot air pumped in what they used to call feared dollars. it's a dangerous situation and earnings have been tie inning financial area -- >> guys, i'm sorry, i'm being told to wrap here. let me say to my bearish friends out there, you're in danger of missing another nice run on the rally. you could be right two years out but wrong for right now. thanks for being with us. i have another reason the markets are up so much in the past week. we'll be talking about with the real deal squad, tanya acker, and julie. i say the reason the markets are up there, obama's health care plan is looking like a flop waiting to happen. it's dead, isn't it, julie.
>> actually, i hate to break it to you, it is going to happen, the markets realize they don't have to pay these exorbitant health care costs much longer and that's why the market's up. >> stand by, we'll talk about it tonight on "cnbc reports." falling approval ratings tonight for president obama and hillary clinton and he speak not only the same language but the same exact words on health care stuff. california in crisis, big news today as a budget deal is reached but still dark clouds in the golden state, the problem is not solved, not by a long shot.
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post" blogger and greg knapp, "washington post" examiner and tony property toe, former white house staffer for george bush. obama lashed out, same old politics, they do want reform but they don't want his reform. let's listen to the president for a moment. >> there are too many family whose will be crushed if insurance premiums continue to rise three times as fast as wages. too many businesses forced to shed workers, scale back benefits or drop coverage unless we get spiraling health care costs under control. ♪ >> when you hear that harp, it's because we're about to do a flashback, guys. listen to hillary clinton, 16 years ago. these comments strike me as eerily similar. >> one thing we hear over and over again is how the rising costs of health care are making it very difficult for people to provide for their families, for businesses to provide for their
employees. we have to recognize that there will need to be changes in our health care delivery and financing system if we are going to control costs. >> julie, let's start with you. it sounds awfully similar yet we all know, look at massachusetts, their health care costs are going up even though they have the universal coverage you guys keep preaching. >> first of all, dennis, hillary was right there and obama is right now. here's what they're both right about. listen, our insurance premiums have doubles since the year 2000, since bill clinton left office, people paying more and more and more and more staying uninsured. we're spending much more of our dollars on health care. we need to do something. this isn't apop colip tick, do something or we're all going to die but it is important for our nation's health and fiscal health. the reality is there is no alternative to this.
twheef do something. the republicans are the party of no, have not made any -- >> we will have ground rules. you wanted to be less interrupted, talk shorter, new ground rules. greg. >> the costs of medicare are going up faster than the cost of private insurance, that's a big problem there. how is government going to solve that? obama knows he has to get obama scare done right now, not obama care, obama scare, get it in before anybody knows what's in it. some of these small businesses will not grow because of the taxes to pay for this health care plan. they will put so many things in the health care plan you won't get to keep the one you have right now. it's part of the exchange option thing. you don't know what's in the bill, obama doesn't know what's in it. tan tanya, we will come to you next, revv up the vitriol. more evidence president obama may be losing his magic touch
with voters. it shows 50% of americans now disapprove of the way obama's handle i handling health care. 44% approve. that is the first time more disapprove than approve. what do you say? i think obama will abandon it. >> i certainly do not think he will abandon it. i think what rear seeing right now is the fact the right wing does a very good job whis characterizing this issue and coming out with better sound bites, they've always done that. >> he's the best communicator. >> we'll see what he has to communicate tomorrow when he delivers an important speech. this is an imperative and we're having an important conversation how to proceed. you have jim demint who has no idea how to cover the 47 million americans. >> republicans are not saying don't do health care, they're saying, do we really need to do health care by august?
using the word apocolyptic, that's the words the president is using, if we don't do it by august. >> you guys had eight years to get something done. now suddenly, you don't want to rush anything. where were you the past eight years? >> i've been pushing something, and a lot of conservatives have been pushing, let the individual have the same tax break as the employer, let them shop around the entire nation like we do for car insurance. >> all individuals don't have access. here's the surprise -- >> a health savings account. >> 37 million people do not have access to the resources that would allow them to buy affordable health care. >> that's not true. >> that absolutely is true. leave the bubble for a second. one second. americans are underinsured, more bankrupts in this nation are caused by people getting sick and going to the doctor than anything else.
>> when you use the word "37 million americans" or 47 million americans, many of them make a decision not to buy health care. >> they can't afford it. >> tony's right. 10 million -- 10 million people making $75,000 or more choose not to buy health care. that's not because they're too poor, that's because they're making a decision, based on their health and where they want to spend their money and under this they would be taxed for not having health care. read the bill. read the bill! >> there are people in this country you know full well could not get coverage because of pre-existing conditions. >> there are some. >> there are some there, are man many. >> moving onto the item next, real deal, hang on, we have a lot to get to tonight including key earnings, our new earnings friend, ariel nelson is here, we call him mr. chart and will name names that could be poised.
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capitalism. they love to cry the wealth gap, lament rich are getting richer and poor are getting poorer. that in my view is a boat load of poppycock. we're focusing on the wrong thing. never mind the actual gap that splits rich from poor, we should instead zoom in on the lower end, on the poor and ask whether their lot in life is better than it used to be. the stats show yes indeeddy their lives are far better than decades past. let's bring back the real deal squad, jewelia tonya, greg, tony. julia. i have a chart that would make any anti-poverty crusade gasp. it shows you earnings for american workers rose 24%, i think from 2001 to 2007. that is only half of the 48% gain for the top paid. people making over $106,000, because they're exempt from social security on that. i have to tell you, i don't
think that tells the whole story. tell me what you think. >> i think there are too many people who are still far below that gap. i think there are too many people in the united states of america having to make critical decisions between drugs and food, that does happen, that's not just antidotal. >> you mean pharmaceutical? >> i'm sorry, pharmaceutical, legal drugs. i think that not withstanding, what you're seeing in some of those numbers and simply because more people can buy flat screen tvs, that's not the promise of america, not the american dream. >> go ahead, greg. >> first of all, i don't want anybody to be poor. you know what cures poverty? wealth? let's not try to cure it. if gait $50,000 raise and the poor person gets a $5,000 raise, the gap grurks but that person that got the $5,000 raise is pretty happy. >> i have to laugh. in 2006, you're talking wal-mart
is a good example of the american dream, the average non-management worker at wal-mart was making $18,000 a yea year. >> that's got nothing to do with what i'm talking about -- >> can i finish my thought? >> what are the living conditions of the poor? look at this chart. let's look into how poor is poor? do you know now, i am considered rich under the obama administration, i do not own my home, i do not own a car. 46% of the poor own their own home. 73% own their own car. 77% of air-conditioning, 65% have washing machines. it's a not like appalachia. the next chart, 97% of color tv. 26% have wide screen tv, go ahead, tan yachlt. >> how many of those same people are in deenk being bankrupt because they can't afford health insurance? how many of those people are sitting there -- how many of those people have savings?
>> how many middle class people have savings, tanya? the fact 90% of poor report they are not hungry and they have plenty of food to eat. >> they're not starving? >> one thing we're leaving out. people don't necessarily stay poor their whole life. they move upward. >> upward mobility, exactly! >> you people -- >> it turns out in 2007, 12 1/2% of this country lived in poverty. in 1993, 15%. this wealth gap is misstating the problem. the poor have never been better off, julie. >> dennis, you're arguing because people can put food on their table and not starving, suddenly we're living in sang gra la in 2009? >> i don't want you guys digging into my pocket and giving it to the poor. if i want to give to the poor, i'll do that through charity
rather than tax increases. >> as long as you take the income of americans and split them up into quintiles, you will always have a bottom fifth qualify as poor and doesn't mean their conditions aren't improvin improving. >> the bottom fifth of the american population, the bottom fifth of income, they spend as much now as a nemedian income i 1973. the poor have more money to spend than ever an get a lot more for their dollar at wal-mart. what is the problem here, tanya? >> because they have been offered -- overextended, offered a lot of credit, we're in the middle, you think we're at the end of it. >> whose fault was it they took that credit young lady? >> wait a second, you want to say because they took the credit and now because they all have big tvs and fancy shoes, there's no more poverty in america. >> let's stop acting like it's dickens, let's stop acting like
it's a national tragedy. we have an upwardly mobile population. if you want to get out of poverty, you can. >> you should get out of the studio and look at any inner city. >> when i grew up, my mom couldn't afford 35 cents a day for me to have a hot lunch at school. i know a little bit about being at the lower end of the to temp pole and i know a little bit about trying to climb up that to temp pole. >> god bless you for making it, dennis. >> the war on poverty we tried under lbj made cycles of poverty. that's not how you do it. more freedom, less taxes. >> i want to argue about the poor again with all of you. thanks very much. stale lot more ahead tonight on "cnbc reports." coming up tonight, the secret tape that's outraging espn. the total sports network up in arms after someone hides a camera in their up and coming star's hotel room and puts it
out there for everyone to see on the internet. that's not all. fair warning, don't download it. we'll explain, coming up. we have a budget deal in california. finally! it will inflict a lot of pain, coming straight ahead. and su herera live at the escape capital. a budget crisis live coming up. [ engine revving ] [ engine powers down ] gentlemen, you booked your hotels on orbitz. well, the price went down, so you're all getting a check thanks. for the difference. except for you -- you didn't book with orbitz, so you're not getting a check. well, i think we've all learned a valuable lesson today. good day, gentlemen. thanks a lot. thank you. introducing hotel price assurance,
it isn't very often a congressional hearing can provide sweet music to your ears. that's what happening to me today during a hearing with fed chief ben bernanke. a congressman from missouri pointed out the fear we have can be worse than the problem we're so afraid of. give a listen to tonight's real deal sound check. >> our attitude toward the trouble may be more probl problematical than the trouble. what can congress do? what can be done, to not de stabilize the economy but to stabilize our attitude?
>> well, ask. ben bernanke didn't have a very good answer to that question. i have one for you. congressman cleaver, one thing you can do is tell more people to watch my show because i am selling the hope, baby. i truly believe this recession is over and we will recover far faster if only we start to feel better. feelings doesn't amount to much without results. we are in the midst of earning season. who would have guessed it, we had still more good news on earnings front. cnbc stats wizard aerial nelson is here to share a few with us. caterpillar, maybe. >> kater pill lear was one of the earnings reported before the bell. reported 72 cents a share when expectations were 22 cents a share. >> their earnings were actually down 7% from a year ago and the stock popped 8% today. >> that's right. if you look at it, they're back to levels they haven't seen
since january. if you go back here, that's exactly where they are. what happened with caterpillar on their earnings call, they explained while earnings on the numbers side are down and third quarter looks challenging they raised their guidance because they see stabilization ahead and growth overseas. >> what we asked aerial to do, because he's good at these screens and the stocks for the next ones, let's look at the chart. >> it's clear. danaher has a company with roughly 50% of its company overseas. >> we like overseas because it will be growing faster than here. >> jim owens was on the phone with caterpillar and said china this is opportunity space and 6% of danaher's numbers, revenue comes from china. they were upgraded by morgan
stanley and deutsche banc. they're another company we should be looking at. >> give us your last one. >> the next one is 3ma dow component, just like caterpillar, two-thirds of revenue overseas, earnings growth about even with the industrials. >> almost 10% earnings growth. >> right. >> and beat estimates 8 of the last nine quarters. has a track record moving in. it's also moving up, all the way back to last year you got to go. up >> up 12% this year when the market is about barely even. the last stock. >> the last one of the night is my favorite, cummings. cummings is a very interesting company, the closest to caterpillar, 50% of its revenue comes from engines, you listen to the caterpillar numbers, caterpillar talked about its breakout numbers in its engines business. that's what cummins does, about
three-quarters, two-thirds of revenue overseas, 15% of its revenue -- >> my gosh, it is up 50% year-to-date since january, 3.3% just today. >> three-quarters of the brick countries, brazil, india and china, 15% of its revenue. that's exactly where -- >> they will be going 5%, 7%, china came in with 7 or 9%. nice job. >> thank you. come to bythenumbers at cnn.com. >> great. under and over tonight, most underand overplayed story of the day. we start with a lovely espn sportscaster victimized by a peephole pervert. he shot hidden video of her walking around naked in the hotel room and put it on the internet and went viral and it was taken down and clicking on them exposes you to a computer
virus i think is nice revenge. i'm sorry, this story is overplayed. to me, the biggest point is this, if this sportscaster had just kept quiet about it, i'm not sure it would have been a story at all. the image is so blurry, you can't tell who it is until she spoke up. maybe my panel mates will disagree. we have monica hessy with the "washington post." i kind of lost the other names here, guys, greg knapp is here a minute. i'm glad griggs here because he's a grenade thrower and david collie. >> in a good way. let's start with the peephole story. monica, am i being too harsh. >> are you being too harsh. >> i agree the story is overplayed. i think the way the internet has censored itself is underplayed. i love the fact clicking on these links lead you to a virus. like a virt sual std.
>> this really could happen to anyone. maybe not anyone but on weight and nobody wants to take photos of me. a lot of ex-s are doing it to each other, boyfriend, girlfriend, i thought that sex tape was safe, now on the internet ruining lives and careers. people have to be careful, she didn't know this was going on, it's awful. >> david, you got anything on this? what's your read. >> any untold story, it should, at least nor a little while, spotlight the complete and utter lack of security at hotels. now, instead of just taking anti-bacterial wipes to a hotel, i'm also going to take a roll of duct tape over the peephole. >> you'll turn into monk. >> i'm not worried about it because i'm not thinking pictures of me naked would have much value. >> speak for yourself, dennis. >> speaking of hewlett-packard scandal and hired people to
track down leaks. now, it's deutsche banc's turn that a board and shareholder were definitely doing that. i think this is definitely underplayed. >> that head of security for a german bank would get carried away with surveillance, spying, to quote claude rains, i'm shocked there's gambling going on in this establishment. there needs to be more vigilance on the part of regulators on this. if these guys end up in the slammer, i think they should, let's face it, they ought to be joined up with guys from aig and shearson and other companies. >> that was always my problem with colleagues at "businessweek," they always said there ought to be a law. greg, there shouldn't be a law
on this. >> i have date of angle. i beat lot of bernie madoff's people would like him to be investigated. sometimes you need a priva private -- to do diligence. if you're doing trading, insider trading blackmail situation, we need to know that if we're on the board or shareholder. they went past that and shared shareholders information, they went past that because that's already against the law. >> this next person, on her my space page calls herself rocket scientist by day and partier by night. she got caught stealing $110,000 with a fake atm card. i call this one underplayed. i'm extremely impressed someone could have had 110,000 fleeced from them and not realized it until later. >> what interested me about this
story is what a hero this woman has become on blogs. people are saying what you are, this guy had 110,000 taken, good for her, shop, baby shop. >> more evidence bloggers are just fools. >> what i like on this one, she told police i had to steal the money because i had too many bills to pay which leads me to believe if president bush and president obama had just give earn stimulus money, it would have been okay. >> david? >> i haven't met too many 25 year-olds i'd entrust with my investment accounts anyway, certainly not one with a my space page where she's dropping the f bomb. it should point out -- >> she's a classy lady. >> when these banks are trusting money to people, here's where they ought to do more investigation on character and other issues. if somebody has a myspace page
like that. hey shouldn't be handling other people's money. >> you go to jpmorgan chase, you don't think about. it was probably a guy who thought she was really fun. >> and maybe likes to party at night. >> i think she should be working for jpmorgan chase and tail. >> all right. thank you very much for being with us, guys. >> a good one. >> next up, california dreaming after montnd months of bitter fighting and threats, the state was about to go under and we have a deal. and because of that deal, we have a one hour special coming up the top of the hour, california in crisis. sue herera is live outside the state capital in sacramento right after this break. so, what's the problem?
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you're guaranteed to love. sacramento, california, a beautiful city, as you can see, but a city in trouble these day, the top of the hour, we have a full hour of california in crisis as governor schwarzenegger and top lawmakers make a deal closing a $26 billion budget gap. sue her are row live on the show tonight. and she, i believe, is a california native. >> reporter: yes, i grew up in california, dennis. thank you very much. we do indeed have a deal and that's why we're live here in sacramento for the special, coming up at the top of the hour. we talked about california in crisis. the deal was struck late yesterday but details emerging
slowly, surely, literally changing minute by minute. lawmakers have agreed to cut the $26 billion shortfall mostly through spending cuts, education hit hard, so will services to the poor and the state will borrow a bit more and may have to sell off stakes like buildings and land. there is a lot going on with this story, all covered for you tonight. 9:00 eastern time, 6:00 pacific time. and former california governor gray davis, you might recall he was recalled in 2003 to make way for arnold schwarzenegger. the state treasurer with us tonight, all coming up in a few minutes, live from sacramento. we're not sure if this is going to pass because of the way the legislation is structured. we'll talk about that and much more, dennis and hope you will join us in a few minutes. >> thanks so much, sue. we are sticking with this
california crunch across america tonight. joining us from california capital, dan weintraub and another californian, tom, and tom walsh from the detroit free pass, talk about a city in trouble and lynn covers politics for the chicago sun times. sacramento b, let's start with you, dan. one thing that strikes me about this, we read headlines for days and days about a crisis and yet it will work out. >> it will work out at least temporarily. no one should think this deal will solve california's problem. at best, it's stopgap measure to wi buy them time to fight another day. you will be hearing about california's economic crisis for months and years to come. >> to fight another day to raise taxes or cuts. >> democrats want to raise taxes and republicans still want to cut. it takes two-thirds majority to pass a budget in california. neither will happen there.
are cuts in this budget but neither as deep as required to get things back online and republicans refuse to raise taxes. >> and from the "l.a. times," how do you think this baby will work itself out. >> you know what most excited californ californians on this budget are 27,000 inmate whose will get a get out of jail early card as they try to reduce prison costs. nobody is happy there. are real cuts in education, but a lot of accounting gimmickry going on, borrowing from local governments, they're planning to delay a june 2010 state worker payche paycheck into the next year. that's not solving the problem, kicking the can down the road. >> they have to either cut taxes or spending or both. you have to adjust one or the other or both of them and they're not doing enough of
either. >> the taxpayer backlash you clearly have in california, the idea you might even consider a flat tax, tom, do you think that could ripple across the nation as prop 13 did, was it 30 years or more ago? >> i have a hard time believing you could get a group of people here to agree on a flat tax or anything when there's talk about calling a constitutional convention that would totally be taken by the special interests, i'm not sure much will change. this state economy is in very bad shape, among states in the country, one of the worse shapes, southern california in terrible shape, real estate still a mess. there's no real sign in three months or four months from now no matter what they do with this budget they're not going to be looking at another hole to plug, more cuts coming, taxes going up, arnold says no. >> to tom wrap, in detroit, you're accustom ed ed to budget crisis. what do you think? >> i was going to say, welcome
to our world. inworld. in michigan, the governor has offered to take some of california's prisoners here. >> for a fee. >> for a fee, of course. >> you take prisoners and send us water? that would be a great trade. >> the criminals are leaving michigan. >> even the criminals. do you think detroit and michigan are finding themselves in a deeper budget crunch? is this going to spill across the nation? >> we've got a huge budget crunch on us in michigan president scale isn't as large of california. it's the same set of circumstances. >> right. lynn sweet, you're in washington for "chicago sun-times." do you think the obamaites and the democrats taken lessons o ut of california and realizing there's a real hatred of tax increases out there? >> i don't think they need california to tell them that. california is special among the states. you're seeing a legacy of this proposition system that they have going back to 1978 with -- >> bingo, bingo. >> -- with proposition 13 which was the mother of propositions.
your california guest could speak more amply to it. the issue of states being in trouble is not a new theme. illinois has a flat tax, by the way, and there's still a call there for increase. remember, that's just a question of how we fairly put a tax increase. you always ask that once you decide you want a tax increase. >> around the horn. a few seconds a piece. dan, what are you guys working on for tomorrow? >> we're trying to find out details we can about this plan and analyze them and help our readers understand them. so far, most of it has been kept under wrap. >> tom, "l.a. times," say something dimpbts. >> one question is as soon as aget a budget of some kind, the stay needs to go to wall street. borrow $10 billion in cash flow financing. what does wall street think about this? what are we going to pay in interest to borrow one year? >> i'm aim trade it's going to be a large increase. lynn sweet, "california in
crisis." >> i work at politicsdaily.com and working on a news feature for country news -- >> tom, detroit free press -- >> we've got ford motor company's earnings coming thursday. the last of the big three that's not on the dole. they're still losing money and burning cash. >> i hope they're losing less. thank you very much, guys. much appreciated. next up, blog you. i found a blogger who likes me. he really, really doesn't dislike me and he's here tonight. a blogger love fest when we come right back. i may give him roses or something. to stay on top of my game after 50,
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i've had many in the blogs fear spew words of hatred about me. not all is lost. yes, i have a blogger on my #ñ side. let's bring him right here in studio. ronado jerena, an executive chef. he has his own blog. "mad money fun." that's where he blogs about long-term stock fix. we have you on, because i noted on friday you wrote almost a live letter to me on your blog the other day, right? >> i wouldn't say love letter. >> you're basically saying, where's the love and why aren't people paying more attention to the show? how often do you write a blog? >> about a weekly. >> a weekly. >> i talk about long-term stock picks. >> do you read other blogs? >> sure, i do.
>> maybe you can give me insight. why are these guys so ticked, mean, angry? >> jealousy. >> jealousy? >> jealousy. dennis, you do a great show. i feel you do a fantastic job. you're upfront, you're real, you do a fantastic job with all that. >> wow -- but, i have to tell you with all due respect, you suck. >> not at all. >> you're an executive chef at a big-brand hotel in the new jersey area. you have a nice little finger on the pulse of the economy. i'm saying the recession is over. what do you think? >> i'm with you. i believe the recession is over. however, i think it's going two a slow recovery. >> it's going to be a slow recovery. the direction in is the right way. instead of heading down spiraling into our death, we're coming back up. thank you so much for being with us. thanks for being a fan. i love you, man. that is all for us tonight. cnbc reports. we're back at 8:00 tomorrow night. i'm dennis neil. thanks for being with us.
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california has it all. sunshine, amazing beaches, rolling mountains, national parks, and now a budget deal. after months of bitter fighting, democrats and republicans in the golden state agree on how to close the $26 billion budget shortfall with cuts, cuts, and more cuts. >> california, obviously like other places in america goes through some terrible times this last year. >> no other state in the nation personifies beauty and grammar like california. deal or no deal, california is still in crisis. >> california has been hit very hard. >> unemployment is at record levels in this, the eighth largest economy in the world.
home foreclosures rocketed. >> of course, there's no time to waste. >> tonight, turning the corner in california. the budget deal is a big step, but it's only the first step. this is a cnbc special report. "california in crisis." ♪ california, california good evening, everyone. i'm sue herera, live at the state capitol building in sacramento, california. a lot has happened here in the last 24 hours. after months of bitter budget fighting. democrats and republicans reached an agreement on closing this state's historic $26 billion shortfall. don't get too excited quite yet. the state legislature and state senate must now approve it before an official deal is in the books. lawmakers we lawmakers were set to start sifting through that plan today or tomorrow. in an interview with nbc news, governor schwarzenegger stressed the importance of bringing jobs back to california and lowering that 11% unemployment
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