retailers and industrials. abercrombie and fitch, rebound. >> man with a plan. maria picks up the second hour of "the bell" right now. >> it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome to "closing bell." i'm maria bartiromo on the floor of the noynew york stock exchan. for the seventh monday in a a row the dow closes lower. federal reserve chairman ben bernanke's testimony to congress tomorrow and house blue chip earnings out this week. we have it covered. the senate banking committee is on the verge of launching a pro probe. we will weigh in on the fiscal cliff right here on the "closing bell." take a look at how we are settling out tonight on with

wall street. the dow industrials down 48, 49 points here. you had technology under pressure. volume light today. under 600 millions shares trade order the new york stock exchange. typical for a summer monday here. financials were mixed. by the end of the day, much of the rally at the open actually was given back. the s&p 500 three points. effort to go positive late in the day. close but no cigar. nasdaq down 11.5. 29 breaking news on yahoo right now. andrew sorkin is on the phone with the news. andrew, what can you tell us? >> we have some very, very big news. we have a new ceo for yahoo and i won't wait to give it to you. marissa mayer of google. you know her well. she's the head of that your local and location business for many, many years. was in charge of their search business and famous homepage.

she's now going to be the ceo of yahoo. this is very big news. we expected in part many people anticipated -- levinson who had been the interim ceo following the ousting of scott thompson would be the ceo. but marissa mayer is going to be the ceo. she literally resigned from google in the past hour. making phone calls to executive privilege -- executives there. i spoke with marissa earlier today. and she said that she had been speaking with yahoo about this for about the past month. she said it was actually an easy decision to make. she has been working at google the past 13 years and yet said this wag something she always wanted to do. as you know she joined the board of walmart about two months ago. this is part of that extension, if you will. a huge move for yahoo today. one of the leading women in the

technology field will be up there with meg whitman and others. cheryl sandberg. but it is -- it is big maas this afternoon. >> wow. very bug news. let's talk more about it. she was really the protector of the brand at yahoo. you no, i thought it was interesting that the brand that opening page when you go to -- go to google, she was the protector of the brand of google. when you go to -- very plain, very simple and straightforward. tell us about her skill set, what she brings to the table for yahoo. >> brings a couple of things. first is the attention of detail. also she came into engineer and was the 20th employee at google. she has a serious experience and a reputation in the valley when you talk about iconic figures in the valley and when you think about the struggles yahoo had to attract tough talent, the idea within the board is that she's going to be able to bring the new life, new blood, into yahoo, a company which many people have had lot of questions about.

and so a lot of this is going to be about the user feel, experience. i talked to david filo earlier today. one of the co-founders of yahoo and he said what they have lacked sorely so much is this idea of really addressing the user experience and that's what she's all about. she's also going to bring relationships with people no only in tech field but with madison avenue and more broadly and so it is -- when you think about where yahoo is today, there is going to be -- could be a deep pinch. >> thank you very much. let's get more reaction from john ford. he is in san francisco with reaction to the yahoo news. marissa mier will be the new ceo beginning tomorrow. what can you tell us? >> it is a bug surprise. lot of people expected ross levinson to get the job. there's the unusual outpouring of support from other ceos, including, for instance, jeff weiner, saying publicly that he

thought that ross should be given the job. clearly the board here going in a direction different from expected. a couple of things to point out about marissa mayer. first of all, she did -- she was one of the people that listened to engineers' ideas coming in and vetted them for google. so that's a key experience that yahoo is going to need as far as being able to decide which products actually see the light of day. the other hand, as far as cutting bark, as far as focusing a huge work force on doing various -- various new things that don't involve -- don't involve sort of newer products that are -- that are off the cuff, rather -- she doesn't necessarily have that experience. more to being a ceo than just engineering piece. inning to see what the reaction is now. >> all right, john. thank you so much. more on this developing story later on. meanwhile, it is seven out of eight for wall street. seven downers, that is.

for the dow. seventh monday in a row of losses for the market. investors in a wait and see mode ahead of ben bernanke's speech tomorrow as well as a flurry of reports due out this week. coca-cola, intel, goldman sachs. microsoft. general electric. all coming out this week. rick santelli. thank you so much for joining us. >> good to be here. >> i guess, dan, let me kick it off with you here. when you look at that time market and what's driving it, europe or earnings. in week we have a whole flood of earnings coming out. is that what will dictate your position in capital? >> i think from a big picture, certainly more macro driven. you have to look atture open and domestic issues. politics playing a role. tax cuts, all kinds of things going on in d.c. but, you know, if you want to drill down a little deeper, earnings have been causing very sector moves and stock specific

moves. threeist announcements. >> leo, do you think estimates still have to come down? this has been a trend obviously. earnings estimates coming down. where are we in that process? are we done? lot more to come? how much is price flood the market? >> yeah. not so much for the quarter. i think that a lot of the practice-announcements got us to sort of a realistic place for the quarter. our expectations very modest earnings growth and that's what the mark set looking for. i think for the year, as a whole, we need to see some earnings estimates come down for the fourth quarter. consistent with economic growth expectations coming down today. we saw the imf lower their forecast and had the weak retail sales numbers many of you talked about earlier. i do think that earnings expectations may have to many down a bit for the fourth quarter. >> yeah. you know, rick santelli, you got all of this in terms of the global slowdown. and earnings that we are learning about now. how corporate -- have done it in the last three months. have you the fiscal cliff issue looming out there. we will talk to richard shelby

coming up we are not going to get an agreement on this before the election. what's that going to mean for all of us? hanging in the balance. waiting for our leadership to make some decisions here. >> i think that more of the same. i once again will reference last couple of years. i think that both sides of the aisle agreeing to tax cuts even though they are getting much less punch for their buck because of the inconsistency of the overlay poll sieve all tax code. it will continue to be the driver as up pointed out. it is more than that. when you have mr. shelby on, i certainly hope you ask him, you know, how mr. againstlgenzler, of this information was known to central bankers, most likely it appears that ben bernanke and u.k. officials, how could they then proceed with t.a.r.p., without doing due diligence to issues would do? if you think you should be upset about jamie dimon and cord may

have connected to taxpayers, what about $865 billion worth of not -- if had knew this, they didn't protect this, did they? as far as tomorrow, mr. bernanke, you had a litany of facts at the end of last hour. still writing dodd/frank, who would hire? at the federal reserve notion they could fix this to the list, they can't. >> you haven't added mf global to the list. put that on the list as well. let me ask you, dan about investing second half of the year. what do you want to be exposed to in the environment? >> very carefully. i'm not sure there is much of a leg in the -- market for the rest of the year. in spite of how earnings go, you are going to have winners and losers. it is not going to be enough to get us out of the range. >> give me an answer here. come on. you are killing me. >> software and services. >> give me a high five. thank you so much. gentlemen, we appreciate it. we are back in a moment.

>> senator banking committee head richard shelby talks to maria about the government's move to unravel the rate fixing scandal. along with his take on the approaching fiscal cliff. plus, normalizing relations. states emerging from the economic downturn having to make the tough choice of cutting taxes or restoring services. what is ultimately better for the health of their economies? and seizing an opportunity. some cities grabbing distressed properties from banks under eminent domain to bring relief to property owners under water. will this do more harm than good in the long run? and the point of contention. >> hank greenberg's accounting was fraudulent. house company -- >> come on. you can't say fraudulent. there's no indictment. you can't just throw around the word fraud! >> here -- >> more fallout from elliott pitser's appearance. there's more to this story. find out what it is right here on "closing bell." in every way, shape, and form.

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welcome back. congress joins a global investigation into the potential manipulation of keep lending rates globally. lawmakers are widening their focus to include u.s. regulators who may have known about the problem as early as 2007 when the financial crisis started.

treasury secretary timothy good night mother and ben bernanke will appear before the senate banking committee this month for regularly scheduled hearings and the likely face questions about the rate issue. mr. geithner flagged the issue while he was the head of the new york fed. but he did not appear to follow up. senator richard shell sbi the ranking republican on that panel and joins us now for exclusive interview. senator good to have you on the program. >> thank you, maria. >> did tim geithner do enough? >> absolutely not. he's got -- got started but then he stopped. he stopped when he should have been walking to the next level. he should have been investigating what was going on. he had information that something was amiss. but he didn't do more. >> what would you have liked to see him do? what will you be focused on when these guys testify in front of your committee? >> first, we have got to get to the bottom of all of it. in other words, see exactly what he did. we have seen some -- information. you know, about the banks and

saying something is wrong. he forwarded that to the bank of england. but nothing really happened in the meantime. there are hundreds of trillions of dollars worth of loans predicated on libor every day. so you have to have trust, you have to have integrity in the banking system. lot of that is lacking today which is sad. we have got to restore trust and this is a start. we should talk care of. >> let's talk about this rate rigging scandal. how widespread could this get? what's your take on how this plays out. >> we don't know. we know what has been going on in the uk as far as parliament is concerned. where barclays was involved. paid a huge fine. but we don't know if there's criminal activity there. we see where the justice department is involved. beginning to get involved in this. it is probably going to take not one hearing, would hearings. lot of hearings, to get to this. this is complex. but it is important. important to the whole banking

system as we know. >> it what about the whole banking system? get your level of confidence here in the banking system, particularly the wake of the rate scandal. we are still writing the rules of dodd/frank as we speak. should people know the system has become stronger or not? >> well, i can tell you there is not a lot of trust in the banking system. it should be. because we used to have that trust. we have got to earn it. we've got to work it back. we have got to be more transparent. there is a lot of greed out there. it is obvious. there are a lot of bailouts which people resent. now there is manipulation and evidence of manipulation of some of the currency rates which adds fuel to the fire. >> senator, let's face it. you are the ranking republican on this senate banking committee. i mean, are you missing all of this? day in and day out? why more scandals? every time we turn around how will we get confidence back if people don't trust the policeman at the -- you know, in charge. >> well, the policeman has to be

diligent. if you refer to the regulators as policemen which they are, of the banking system, financial thing, they have got to be involved. they can't just have some information something is going wrong and quit and kick it down the road and hope it never comes up again. they have to be diligent. we are going -- we have to vin teg pretty above everything in our banking system. we used to have it. we need to get there glen let me ask you this. i'm going to switch gears to the fiscal cliff. are you willing to sit there and not come to an agreement before the election or before year end with your colleagues on the other side to actually make sure that our lives, american lives are not hanging in the balance? you have tax cuts expiring and spending programs expiring. this fiscal cliff is going to send the economy plummeting. what are you going to do about it? >> maria, i'm willing to more than meet the democrats halfway on -- meaningful complex,

comprehensive tax reform. that's not what they want. they are making political points, they think. i hope it won't work out in the fall. but we need comprehensive overall tax reform. we don't need to go out and -- one group against the other. >> they don't even want to -- you know, the -- the democrats say that they are not going to do it if it means not raising taxes. are you going to raise taxes for the rich? >> we are not going to raise taxes on anybody, i hope. we do need tax because will are a lot of people paying nothing and n this country and getting by. but we -- what i'm about is lowering the rates of people's taxes. including anybody that works. >> get rid of the loopholes. >> absolutely. >> final question here. are -- what does your gut tell you? >> i believe it will be after the election. and might even be into the -- new year. but i believe we will have a resolution. lot of it will be dependent what happens in the election. >> wow.

give me a break. 2013. we will see what happens to everybody waiting important this and counting on their job after the election, what they are going to be forced to get fired, i guess. >> well, i hope nobody gets fired. i hope we -- >> spending programs are going away. not brain surgery. spending programs are going away. right n. >> well, lot much spending programs that need to go away. but we need to mauck sure that america is not destroyed in the meantime. >> senator good to have you on the program. thanks for weighing in on these important issues. we appreciate always your candor. senator richard shelby. if you are successful did you do it? or did the government do it for you? president obama making controversial statements on the subject. should states that are feeling better about their budgets cut taxes or restore services? we will toss around both sides of that issue coming up. man, i'm glad aflac pays cash.

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ye yah yahoo. >> brian, thank you so much. if you work harder than most others, maybe are a little smarter than your competition, you can take credit for your success. right? president obama doesn't seem to think so. robert frank is looking at some revealing comments about the president made while on the campaign trail. >> america prides itself on its self-made wealth. people that came up with an idea, worked really hard and made their own luck. in a speech on saturday president obama said the wealthy owe their good fortunes to the government. >> somebody helped to create this unbelievable american system that we have that allowed you to thrive. somebody invested roads and bridges. if you have a business, that -- you didn't build that. somebody else made that happen. the internet didn't get invented on its own. government research created the internet so all of the companies could make money off of the internet. >> the president's speech is all part of his effort to frame the

debate over wealth in america. if the wealthy owe part of their success to the government they also owe the government more money and more texases. it is also a comment on hi opponent mitt romney. romney camp already said that these comments are insulting to job creators. >> you know, it is interesting he would say that. what he is saying if you work really hard and then you achieve some success, got a little luck along the way as well, it is not necessarily due to any of that. but due to somebody helping you. probably somebody in government. >> yeah. says that macro environment that we give americans today, legal system, infrastructure, that's what forms the foundation of wealth. so, therefore the wealthy owe the government in return for their foundation. >> i find this troubling, actually. robert, stay right there. are hard working people, smart people p. a dime a dozen? should they credit the government or themselves to their success? tony joins the conversation of hamilton place strategies and former aide to president bush

ii. he thinks the president is missing the points here. keith boykin, former clinton white house aide says the president makes an important point. both join me now along with our own robert frank. you agree with the president, make the case. >> well, what the president is saying that nobody really makes it on his or her own. we immediate help. we need help from parents and family members. he mentioned teachers and need help from teachers. we need help from our neighbors who help to contribute the environment. and our country, we have a great system in our country. have democracy and capitalism which is -- which is all part of what the president is talking about. >> if that's the case, how come everybody is not super successful? >> everybody gets help -- if everybody gets help how come we are all not on the same plate? >> i think you are confusing opportunity with results. the president never said that everybody was going to be successful. he is a very successful person him self. he is an extraordinary individual as are you, maria, as is tony. the point is that even successful people, extraordinary

people, still benefit from the help of others. from that your paints and teachers and from government. and from our country and our society. that's not a debatable point, i think. >> if i was -- the environment, you know, having that opportunity to do it in america is -- important. you hear the president talk about, you know, you think he is talking about, you know, like on this barn raising or something. the community gets together to, you know, help entrepreneurs create business. i think of guys like, you know, kevin plank who started under armour. maxed out his credit cards and on his last dime and house was mortgaged and he gets a little bit of the business. people out there helping -- let's go help kevin plank take on nike. right? he goes out there -- risk taker. he was creative and is the one that made it happen. everybody who so-called helped him, he paid them. >> no doubt that people -- people like that make a difference in and are able to do something on that irown. did it usn't change the fact

people are able to get the advantages they have because they live in the greatest country on earth. and because they have family and friends and others who had them to get to where they are. nobody like you, tony, got to be as smart as you are without some sort of teacher who helped you out. people that went to the best schools in the country were able to go there because their parents and family helped them get to those schools. it wasn't all of their own. that's not debatable. >> i understand what you are saying but i take issue with someone working incredibly hard, entertaining success and n this world and somebody else saying it is not because you did it. it is not because, you know, you are smart and have the skill set and you worked hard. it is member -- somebody gave it to you. that's what i have a problem with it. what have you been hearing from the entrepreneurs you have spoken to about their take on this issue? >> i have spoken to hundreds of wealthy people over the years. to create a large amount of wealth, you need an incredible combination of the right product, right idea, right time and right market. ask and the right economy with the right personnel connections. i think it oversimplifies wealth

to politicize it like this and say well, it is all the government or it is not the government at all. i think it is not that kind of a choice. it is more complicate. >> he didn't say it was the government. didn't say it was not the government. >> didn't say the either things. >> you said it right the first time. you said it is a combination of different factors. that's a very simple point. >> didn't say that. >> what a topic. come back to this, gentlemen. this is really something. thanks very much. we will talk to you soon and con this interesting conversation. at a crossroads, should states emerging from the economic slowdown with budget surpluses cut taxes or restore services? this is the hot button issue. mortgage seizures helping underwater homeowners. more of my conversation with eliot spitzer. all these charges you throw away so cavalier, it just -- there's

no evidence to support that. >> maria, look, i hate to say this to you. deal with pacts and reality not what greenberg's machine wants you to believe. i'm barack oba ma and i approve this message. [romney singing]: oh beautiful, for spacious skies, for amber waves of grain, for purple mountains majesty, above the fruited plain, america, america, god shed his grace on thee,

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cut taxes or restore services and add government

jobs? that's the simple question so many u.s. states are facing right now. as they emerge from the depths long downturn. which one will spur economic growth first? cutting taxes is the better opposite. david cooper of the economic policy institute says that simply does not make good economic sense. both join me now to make their case. good to have you on the program. thanks for joining us. ted, let me kick this off with you. you say states should cut taxes and keep money in the private sector. >> yes. given the choice between more spending and cutting taxes the state should cut taxes. i recognize that taxes are just one factor out of many when it comes to influencing economic growth. but having been a -- budget policy guy in the state, in the state that's considered to be relatively well managed, i have seen how the sausage is made. i have seen the waste on a daily basis. i have seen the money goes tout door based on wins and desires of special interests and being in state government is like being on the set of zombie land.

so keep the money in the private sector. idea you will help the private sector by continuing to suck the life out of it just doesn't make any sense and as we are seeing with the economy still sluggish, it didn't work at the national level and it isn't going to work at the state level either where does the money come from? david, you disagree and say it makes more economic sense to restore services and jobs. >> it does. >> are you sure you are going to be restoring jobs when you restore services? >> well, i mean, you have to design policy that -- you have to be smart about how you make the policy decisions. the fact of the matter is that -- you know, when you cut taxes, you are sending money back that might not necessarily get spent in local and state economies. when you restore government services, that government spend sing directly spent, directly increases demand and local and state economies and we can see the effects of this and we know that, you know, we know multipliers, economic multipliers on state spend sing much higher than tax cuts. for the simple reason people can

save a portion of the tax cuts. not only that, in the last -- since the recession we lost over 650,000 state and local jobs. you know. those are jobs that -- impact the private sector as well because for every state and local public sector job that's lost, that's lost, we assume -- we -- estimate that .6 private sector jobs are lost as well. loss of demand and spending resources and materials for those workers. >> there is a reverse multiplier. fact of the matter is there is no free lunch and no tinkering with math equations can change that fact. when you take money out of the private sector, run it through the bureaucracy and i through the state politicians and then allocate that money according to some political whim or desire, you have a loss. it is a net loss to the economy. >> i understand. but -- you no, when you are taking -- when you are taking that money from high income earners, when you are -- when you are taking it from people less likely to spend it and directly injecting it into state and local economies, that's going to have a larger effect

and sum reply giving money back to people who already are earning a lot. i mean, all these state and local government workers are -- that lost their jobs, are we going to look at them and say we have the resources to give you your job back? instead we are going the take those resources and give to it people that still have jobs and are still earning more income. that doesn't make sense in the short term. >> what do the state and local authorities producing? what are they producing of value? you have to understand everything a state and local employee does because of money that's being taken -- >> provide education. >> opposite -- >> provide safety. >> our education system is a joke. look at the money we spent on the edge indication system. more and more decades go on and what are our children learning? no doubt we need to reform our edge case system. the idea we can simply take money away from education and it is going to help news the long run, it is just false. i mean -- >> you know government doesn't create jobs. business creates jobs. the question is they are sitting on almost $4 trillion in cash on balance sheets.

what are we going to do? how do we create an environment they are going on spend that money by creating jobs? >> we need to invest that money wisely in programs that will create jobs. infrastructure investments. we have a huge backlog of infrastructure needs throughout the country that state and local governments can generate jobs through spending on an infrastructure. states -- >> get the private sector involved. >> absolutely. >> look at the state of indiana where this leased a toll road. get a ton of money up front. look at a state like california that wants to raise taxes. just because they cal indicated $8 billion for a boondoggle high-speed rail system. that's the opposite of what you want to do. so when you call it an investment it is really politicians playing with other people's money. let's face it. >> we can -- >> we can all cherry pick examples of things that may good-bye or bad. we have to ask ourself what's best important the economy in the long run. do we really think that larger classroom sizes and fewer police

officers on the street is the best thing to strengthen our state economies? i mean, i don't think so. >> we have fewer -- >> right path to create jobs. we are trying to get to the right path to create jobs. making an environment that's more favorable for business that creates jobs, that's what we ought to do. right? >> sure. businesses also -- >> spending money and keeping the markets afraid of a $15 trillion debt, then maybe we have a problem. >> certainly -- you know, if you look at states that talking about cutting their income taxes now that they finally have filled their budget shortfalls, i mean, even a state like kansasing talking about this, you had 55 republican state legislative members saying that this was than -- a bad idea. simply because you know, they have been battling revenue shortfall it is last four years. finally they make up the difference and now they are going to cut the mechanism by which they finally -- >> here is a news flash. republicans love to spend other people's money, too. i worked for a republican governor. i worked for two republican senators. republicans love spending other

people's money. the fact republicans are against it means nothing. >> we know that this is a topic that's not such an easy one. this is what's going on across the country. by the way, across the world. come back soon and we will continue this discussion. thanks very much for weighing in on this important insight. thank you. seizing underwater mortgages is a new idea aimed at throwing a lifeline to struggling homeowners. get this. would they do it under eminent domain? stay with us on that story. a tidal wave of earnings economic reports and congressional testimony with fed chairman ben bernanke. i'm freaking out man.

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one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com. welcome back. yahoo naming google executive marissa mier as its new ceo. the appointment, who was one of the first public faces of google is considered a surprising coup for yahoo which struggled in reese end years to attract top teem as it tries to compete with the likes of google and facebook. she will be yahoo's fifth ceo in the past year. the most recent ross levinson who many assumed would get the job after julhu hulu's ceo bowe earlier this. she joins a short list of silicon family leaders.

including meg whitman and the head of ibm. we often hear about the new and improved fixes for the housing market. try this one on for size. some cities are discussing a plan to seize underwater mortgages and remarkably they would do interest under eminem domain. here is how it works. the city seizes the mortgage, pays it off at what they deem is current fair value, then helps structure a new loan with the lower principal for the owner. cornell's bob hock it who came up with the concept says it is the right fix. but tim ryan says it is a bad idea and make getting a new loan even higher. seizing mortgages under eminent domain, really? >> yes. we think it is a very good idea actually. reason is fairly simple. it is actually men to be a market friendly solution to a problem. current impediment actually obstructing the markets, doing what they usually do best. which is to reprise assets in light of changed circumstances on the ground. but there is a certain group of mortgage loans that the markets can't do that with right now.

and this oweses enly to securitization contracts that were entered into during those heady bubble years when people thought that residential real estate prices could only go up. so those contracts in some cases are preventing loan modifications or sales of underperforming underwater loans. eminent domain meant simply in order to be able to enable th e those. >> you think this is going to affect lending. >> we -- you know, our view is we think this is one of the worst ideas that has come up since '08 and will have a very negative impact. win of the largest if i canned income markets in world which is the conforming or tba mortgage market. this is a very bad idea. it is -- highly likely that it is unconstitutional on many

grounds. we talk more about that if you like. >> why would you say it is unconstitutional? >> tomorrow we will go into this in a lot more detail. we have retained walter delinger, former sol its the general of the united states. we have their opinion. very prominent l.a. law firm. the this is one of four or five grounds highly likely to be unconstitutional. for sure, it will just be litigated for an enormous amount of time. >> you think -- >> great -- >> makes it tougher. >> well, we -- we run -- the tba market. we make a decision who is in the tba mark and who is not. the industry does. i can tell you this is -- a serious question whether these resecuritized loans would be tba eligible. >> i guess two things. as far as the legalities are concerned, this is quite unassailable legally speaking. no doubt whatever about that. it is entirely constitutional firm. entirely legally firm. what that means, of course, is the question is whether it is

wise policy. no question but that municipalities can do that. the question is whether they ought to. there is a bit of misunderstanding out there as to what we are doing. we are only looking at loans whose expected values can be raised by exercise of this particular authority. that's to say these are mortgage loans that currently cannot be written down simply owing to particular contract -- but woulder otherwise be written down because it is in the interest of the investors themselves to do so. >> we will be watching the development here. we have news tomorrow that will be focusing on. thank you for your time tonight. we appreciate it. we will take a quick injection of fast money. starts in just a few minutes. melissa lee with a preview. >> hi there. top of the hour, we are talking about the cold collapse of the legendary investor. why he says the industry now may be in a secular decline. we have the latest procter &

gamble. why one analyst out there says that ackman's may not the midas touch needed for the stock. we will look ahead to intel earnings. tradelers give thank you trade ahead of the big report. all that and much more at the top of the hour. >> heavy lineup of earnings and economic reports. rip out of the gate tomorrow morning. we will be all over it tonight. reserve chief ben bernanke speaking about the economy on capitol hill. three of wall street's top strategists will join me telling us how their view. ll beyond investment advice and research analysis. it includes proprietary offerings like our eldercare program, which helps provide for those who came before you. and our financial empowerment program, which helps prepare those who come next. resources like these have made us the number-one trust company. that's why generations of families have come to us to help build their own legacies.

welcome back. breaking news during the show tonight. google executive marissa meyer has been named the new ceo of yahoo. starts tomorrow. >> she's just tweeted out i'm incredibly excited to start my new role at yahoo tomorrow. i have to tell you, i don't know what the yahoo board was thinking. you know, as i tweeted out myself, i said, this is a wonderful opportunity for her but this is also a remarkable

challenge for someone that has no real leadership experience. and this is something kind of interesting because yahoo tried people leadership experience and it has to work. so now he says in the press release, design and product execution. this is not exactly what yahoo! needs. in spite of some of the troubles he has. i don't know what they're signalling. this is a very big task for somebody. >> she has been protecting the google brand since she got there. she has obviously been a senior person within technology. >> by the way, she start ed the

experience. >> but he could say no. >> there is that, too. all the things you said were correct. as in all the complexity and trouble and you have got something greater. and i think you can see it in the stock's reaction after market. it's not going through the roof. there will be some trepidation and you know, i just think we will see how it goes tomorrow. >> we will be watching that. 3w thank you very much. joining now, gfi and rick field. 30 seconds on the clock. what do you focus on tomorrow? >> it's all going to be about

earnings. we have 90 of the s&p 500 reporting earnings this week. we will be focused on cocaike c in the morning. try to get a sense of the guidance. as they are going to focus more on the u.s. economy and hopefully put more of the retail sales. they are seeing the same thing. and then we will move over to china. get a sense if there is any more stimulus coming from that government. >> off the clock. all right. we will be watching that. thank you so much. john? 30 seconds on the clock. what do you want to focus on? go for it. >> tonight we will be watching oil. obviously there is a skirmish in the persian gulf. we saw oil spike today. obviously some disappointment over the weekend. we will see if that rebounds, if they make comments on that.

tomorrow they have the zew survey. and after that, obviously we have coke, goldman sachs and after that we have bernanke at 10. >> there's the clock. all right. what did you do? get a goatee while you're traveling? >> on the boat you don't shave. >> that's called summertime. thank you so much. appreciate your time. looking good. a lot of heat generated. former new york attorney general. i hope you were with me. my observations next. stick around. >> he is the one who began as a federal judge. fraudulent reinsurance contracts. >> but no charge? but all of these charges are been dropped? you are not answering that. go am go am and win fifty thousand dollars.

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for purple mountains majesty, above the fruited plain, america, america, god shed his grace on thee, and crowned thy good, with brotherhood... >> welcome back. and finally today. attacks on former aig attacks.

six out of the eight chargers that the office initially brought years ago had been dropped and the remaining two are technical in nature. i think it is irresponsible for them to keep saying pubically that greenburg committed fraud. i also made the point that there seems to be a person of animosity driving this and his tactics are inappropriate. he said he heard spitzer going after greenburg. as a result of that interview we were told that the law firm that he made threats. i asked spitzer about that on friday. we are told that you placed a call to hank greenburg's lawyers. because your firm is in bed with someone like hank you will have to bear the consequences.

i have a gunpointed at you and everybody in the firm. >> are you saying you did not say it or did you say it? did you say i have a bazooka at your head? >> well, mr. spitzer did dodge the question and did eeverything but answer if he made such a threat. i asked it twice. if these are the kind of threats that he makes now after his stunning fall from grace. you have to ask yourself what kind of threat or heavy handed threats did he use if he did have a bazooka? this is not about defending greenburg or discrediting spitzer at all but it's about power in america. this show will point it out.

that assure you. it was a down day. the dow jones industrial average averaged down about 150 points today. numbers on friday and city out in gold gave up about three points. finally today you want to take a moment to remember martin gates who predicted the.com crash three years before it happened. they spent nearly four decades. founding a research department and later creating the investment management which he chaired. he has been on i guess many times. he was a frequent. he died at the age of 79 fol rowing a short