Skip to main content

tv   Your Money  CNN  October 19, 2013 6:30am-7:01am PDT

6:30 am
the count down to the next crisis is on. two days on the calendar that you will see when "your money" starts. we'll see you back here at the top of the hour. the government is open for business, america can pay it's bills for now. i'm christine romans. >> congratulations washington. >> i want to thank the leadership for coming together. >> you once again narrowly diverted a disaster of your own making. >> holding the u.s. hostage -- >> in exchange for ransom. >> the debt ceiling was raised and the government reopened. in other words what should have occurred from the start. >> this whole shut down has been completely unnecessary. >> the worst case scenario hurt
6:31 am
the american people. >> investors are happy to be back from the brink. the dow climbed 200 points, but before you pop the champagne, remember these dates? add two more to your calendar. january 15 is the day we face another government shut down and february 7th we hit the debt ceiling again. there is no end in sight to washington's short-term thinking. we've seen the bad -- >> i will not negotiate over the full faith and credit of the united states. >> i speak in support of defunding obama care until i'm no longer able to stand. >> we will not shut down the government again, i guarantee it. >> it is really something when progress is just doing your job. gentleman, thanks for joining
6:32 am
me. john this is no way to run the world's largest business. odds of a repeat in january? >> you don't think this is the way to run a business? i was thinking about starting a new school of how not to one a business. you heard senator mccain, the leadership saying we won't do this again. the motivation is the damage to the republican brand. so the budget committee people are starting to talk. they say they're going to work this out. logic tells you they won't do it again, but i will end with this, i have not met logic in washington in quite a long time. >> greg, you say there is a 40% chance of a budget deal. >> yes, i think there is a decent chance not because they want to do the right thing, but every hates the sequester.
6:33 am
i think there is a decent chance that because of this antipathy that we'll get a deal. >> we still had damage and damage that is growing. s&p estimates it cost $24 billion. listen. >> was there a temper tantrum worth $24 billion? i don't think so. >> the president has been pretty pointed in his criticism, but this doesn't sound like the conciliatory tone that washington miekt need to move forward. you can't be blaming, right? and counting winners and losers? >> that is the problem. >> that is why we have had band aid budgeting. every time it ents up with
6:34 am
policy concerns that everybody knows. you had guests on this program for a long time. you put them in a room, say this is the target, everybody knows the policy choices they have to go into a room to make. policy keeps getting trumped by politics. the president is trying to get some gain here. some think and it is possible they could get the house back in 2014. so do you cut an early deal, or do you try to drive the mid-term elections, and the republicans have their own concerns. the tea party is now saying we need to target the republicans that voted yes. so there are profoundly serious policy issues that date back to the clinton administration. >> and you have perm ambitions too. i talked to olympia snow who
6:35 am
called them podium thump iing e beligerants. >> you would to think that the ambitions that could be realized -- the winners in all of this, chris christie or other governors are the adults in the debate. despite all of the dysfunction, there is still two great stories in washington. number one, the federal reserve will stay available. the budget deficit is in free fall. we're going to get final numbers and we'll be down over $400 billion. the deficit continues to fall and most people don't realize it. >> one of the reasons why you had stocks at record highs this
6:36 am
week even though we know this count down is not over. nice to see all of you, thank you. so how do we get from gridlock so grand inspiration? we'll look at "jerry mcguire." can a famous sports agent with a history of negotiating deals, can that be the way to find a way out of the stealemate?
6:37 am
6:38 am
6:39 am
debt ceiling, shut down, gridlock. to get the long term solutions that it deserves, it may need something that no one in dc has thought of yet. we turn to political leaders, ceos. we brought you a former fbi negotiations counsellor.
6:40 am
we even brought in a marriage counsellor. still searching, we turn to lee steinberg for "the score." turn to the man who is credited with inspiring tom cruise's character in "jerry mcguire." >> show me the money. show me the money. >> congratulations, you're still my agent. >> we need a sports agent and attorney like lee steinberg to fix this negotiation. welcome to the program. it sounds like the debate. if you're negotiating on behalf of a player and a stubborn owner, how do you get a deal that works for everybody? >> the critical key is to look at the person representing the other side and understand their value system and priorities and see the world the way they see it. it's the only way to craft a
6:41 am
win-win solution. so that instead of looking at each others needs, the congressional republicans and president obama talk to their own agenda. that is never a way to solve anything. when you take proud men and put them up against a wall, there comes a point at which neither side will ever give in. >> it must be so fascinating to watch all of this from your standpoint, a master negotiator who has been in big deals with these characters before. you wrote a book called "winning with integrity." maybe these guys should read it. >> i'm very disappointed with johnson boehner who once again tries to preserve his role at the expense of the country. >> he is trying to teach america
6:42 am
a lesson. this is a president not trying to do the best that can be done for the american people. >> how can washington sharpen their negotiating skills? >> they need to be able to project a future well before it comes. so the reality is that if i'm dealing with a general manager i might say okay, let's assume that the players now -- the players are angry, everyone is in flames, what position do we take then? and take that before the con flik occurs. and the who concept of blaming each other, there have to be a pair time. they have to know it will come back over again. so no one negotiation loses sight of the long-term.
6:43 am
and they're sitting in a little bubble in which their reality is completely screened off from the reality of people that are out of work. >> and that is what really, really hurt about this. it looked like a very political fight, political winners and losers, and the person people really lost in the end. lee steinberg, nice to meet you, thank you for your perspective on this. billionaire mark cuban is off the hook for insider trading. he has been in hot water with the sec. back in 2004 he said i'm out, he dropped his entire share of it saved him $750,000. a judge found that sale did not break any federal rules. for more stories, put 60 seconds on the clock, it's money time.
6:44 am
hidden cost for the want frys with that economy? low wages and you pay. a new study finds 52% of fast food employee families get government aid. twitter is going to the new york stock exchange. it's a big loss for the nasdaq. apple just hired their only female executive. angela aarons will join next year and be joining nine men. netflix may not be the arch enemy at all. they're in talks with comcast and others to make it available on cable boxes. do china a favor and you could be rewarded with a baear. beijing has 50 pandas an loan. and congratulations to a good
6:45 am
friend of the show, robert shiller who won a noble prize this week. >> way to go, bob. happy for you. the government open for business, but the shame of washington's dysfunction remains. >> i do everything that i'm supposed today do, i get my bills paid, i paid my taxes, and i'm trying to do an improvement for myself only to have them say you can't do that. >> how the shut down held back one connecticut woman, next. ups. soon, the world's most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. multiply that across over a thousand locations, and they'll provide the same benefit to the environment as over 60,000 trees. that's a trend we can all get behind. is what makes us different.
6:46 am
we take the time to get to know you and your unique health needs. then we help create a personalized healthcare experience that works for you. and you. and you. with 50 years of know-how, and a dedicated network of doctors, health coaches, and wellness experts, we're a partner you can rely on -- today, and tomorrow. we're going beyond insurance to become your partner in health. humana. ♪ [ male announcer ] more room in economy plus. more comfort, more of what you need. ♪ that's... built around you friendly. ♪
6:47 am
nthat's why they deserve... aer built aanbrake dance.ndly. get 50% off new brake pads and shoes.
6:48 am
congratulations, congress, you did your job. but in the meantime, $24 billion is gone. that's how much the shutdown yanked out of the government. with that we could pay for the
6:49 am
national cool lunch program for years. pell grants, or fix infrastructure. instead it hurt the economy and a lot of innocent bystanders. >> the government is up and running, but that doesn't mean that all is back to normal. the effects were felt across this country even delaying mortgage refinancing. we met up with one more whose refi was shut down because of washington's dysfunction. >> i feel like i gave my checkbook to toddlers. >> she is trapped, her refinance being canceled makes her another victim of the shut down. >> to me, it is affecting a lot of other things. >> the connecticut nurse and divorced mother of two was scheduled to close on her refinancing last week. a run of the mill transaction
6:50 am
that could save her almost $600 per month according to her mortgage banker. credit history, job stability, equity in the home, you could not ask for a better loan. >> at issue, a routine but furloughs at the tax agency meant no one was there to do so. >> the form's been sent in, and we can't get anybody. there's no one to talk to. >> reporter: that means mary is missing out on cold cash, money she planned to use to fund her masters degree and home improvements. >> unfortunately, with this kind of up-in-the-air, i might have to put those plans on hold. you can see they're difficult to open. i do everything i'm supposed to do. i get my bills paid. i pay my taxes. and all of a sudden i'm trying to do an improvement for myself, only to have them say you can't do that. >> here's somebody that's, you know, through no fault of their
6:51 am
own, because the government shut down, who would have thought can't go forward with their lives. >> reporter: even with the shutdown lifted, the irs is facing a massive backlog. that means a simple social security verification, a process that takes just a few days could take a few weeks. we called the irs, but no word on how long the delays will be. christine? >> all right. another reason why the shutdown is over, but it still matters. allison, thank you. take this can, fill it, fill it with some more money, and kick it right down the road. that was washington this week. get this, another record high. google crossed $1,000 a share. how long can this possibly last? the best in business with the answers to that next. like the last three weekends. asthma doesn't affect my job... you missed the meeting again last week! it doesn't affect my family. your coughing woke me up again. i wish you'd take me to the park. i don't use my rescue inhaler a lot...
6:52 am
depends on what you mean by a lot. coping with asthma isn't controlling it. test your level of control at, then talk to your doctor. there may be more you could do for your asthma.
6:53 am
customer erin swenson ordebut they didn't fit.line customer's not happy, i'm not happy. sales go down, i'm not happy. merch comes back, i'm not happy. use ups. they make returns easy. unhappy customer becomes happy customer. then, repeat customer. easy returns, i'm happy. repeat customers, i'm happy. sales go up, i'm happy. i ordered another pair. i'm happy. (both) i'm happy. i'm happy. happy. happy. happy. happy. happy happy. i love logistics. afghanistan in 2009. on the u.s.s. saratoga in 1982. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation because it offers a superior level of protection and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. you keep the peace.
6:54 am
we calm your congestion and pain. [ man ] thank you. thank you. [ female announcer ] you rally the team. you guys were awesome. [ female announcer ] we give you relief from your cough. you give them a case of the giggles. tylenol cold® helps relieve even your worst cold and flu symptoms, so you can carry on with your day. but for everything we do, we know you do so much more. tylenol cold®. the reaction to the markets is not impressed. it's time to turn now to the best in the business. cnn business news.
6:55 am
maggie lake, richard quest, zane arbor, joining me today. the government is open. there is no shutdown. s&p ended the week, you know, hit record highs for the week. and it's the weekend. what could possibly go wrong, maggie? >> everything, because nothing's changed. for the moment, no. for the moment we're hearing for stock, not much. yesterday, the government opened, but more importantly, the fed is on the sidelines. that's what stock investors care about. with washington still in dysfunction, and it is, and facing the same argument, most people think it will keep the fed's foot on the gas. >> richard, the president of the united states this week, he said that the u.s. is still the safest and most reliable place to invest. listen. >> today, i want our people and our businesses and the rest of the world to know that the full faith and credit of the united states remains unquestioned. >> all right. at the same time, china's official news agency says it extends the fuse on the u.s.
6:56 am
debt bond. richard, can america regain her standing and reputation? >> yes and no. and in the sense that it may have gone, but it's not gone completely. it's still the biggest market in the world. and where does the 600-pound gorilla sit? where it wants to. as long as it's got big, deep, liquid markets, investors will still be coming here. what is lost is credibility. it has created an element of exaspiration and frustration, because as the can has been kicked down the road -- >> or passed in this case, nicely. >> and, you know, the can gets kicked back again. it keeps getting kicked backwards and forwards, and what eventually happens, is people loses their temping. >> all right. here's the can. we have to fill it with cash, because the more we fill it, the more it costs the united states to borrow money. if we have interest rates going
6:57 am
up, zane, the interesting thing, it will cost more for the united states to service the debt we already have. the ratings agencies talking about a warning of a downgrade. we had an actual downgrade in 2011. but americans, i feel like, americans, are they paying attention to downgrades and warnings? >> that's the fundamental question. i think the fact is they didn't downgrade us. if they did, it would ab different discussion. it was a warning. everybody and their grandmother knew we wouldn't default. the effects of the s&p downgrade, they did tank immediately afterward, but have come back with a vengeance. treasures have rallied. rates are lower. it's had no impact on the cost of borrowing. and i've been talking to richard about this. in terms of public perception of ratings agencies, they took a hit in 2008. they took the most toxic mortgage-backed securities and -- [ overlapping speakers ] >> ya, you started with --
6:58 am
you're all trying to turn the tables away from where the discussion lies. and the discussion here is we're in the new game. >> yeah. >> and the new game is in a rising china, an emboldened asia, a europe getting its act together. getting its act together. come on. >> look at -- [ overlapping speakers ] >> no, no, no. >> the manager puts in this week, the single supervisory mechanism, not saying they're going gang busters. >> you said 50%, it's impossible to push the austerity. and the germans have a lot of problems at the end of the day. and a credibility issue, too. >> yes. >> you think credit agencies do matter, they're crucial. >> yes. ratings agencies matter because the market says they matter. >> no, the market tells you if you have to hear from a rating agencies, then you're in trouble. >> but rating agencies are still used for the basis of the
6:59 am
funding decisions. >> times like these, you have to just laugh. figuring out a compromise on the debt ceiling, figuring out the definition of a debt ceiling is stumping a lot of americans, as jimmy kimmel found out. >> do you think the debt ceiling fan should be oscillating? >> yeah, yeah, to a certain extent. >> do you think the republicans allow the obamacare to move forward with the debt -- >> no. >> do you think the ceiling needs to be reupholstered? what would be the right thing to do? >> yeah, i guess so. >> of all of the sequesters in our government, who's your favorite? >> bill cornzin. >> check out jimmy kimmel live, if they want to capture the confusing question of the day. we cover this stuff. we think it's confusing. republicans consider the party of business forever.
7:00 am
but is that party over as a result of a rift within the gop? and coming up at the top of the hour, the facebook mom who posted this, "what's your excuse" picture. she's live to talk about it coming up in the next hour of the cnn newsroom. what's my excuse? two convicted killers on the run after an embarrassing blunder sets them free. >> the inmates were released based on those court orders that we received. >> now, a nationwide manhunt is on to get them back in prison. a 14-year-old teen with autism vanishes in new york. now, the desperate search to bring him home. >> a lot of people feel my pain. a lot of mothers, a lot of families. it can happen to th


info Stream Only

Uploaded by TV Archive on