Additional boost to talk about which well talk about now. Yeah, certainly did. Joining us now to help break down the day is mark travis from Intrepid Capital fun, steve grasso will join us, and Rick Santelli is with us as well. Mark, begin with you. Nice to see you. Glad to be here, scott. This whole day into perspective and what youre thinking about the market, given everything thats out there, syria, taper, you name it. Well, i think that the market has decided maybe syrias not going to happen after all. If it is, it will be kind of a pinprick. And the jobs report on friday, let the air out of the taper bubble . Yeah. Taper talk . And so, you know, youve got a relief rally at this point that, you know, makes us feel better. Im not sure were not just spinning in place, which has been my point of view really since may when rates started to rise. So youre cautious now still . Because an hour ago we had a panel on. They were 100 bullish. Biggest bull market in our lifetime or our careers or something is what rich bernstein said. Lets hope so for all of us. You dont think so, it sounds like . You know, michelle, i think valuation techniques we use at Intrepid Capital funds to kkr or apollo or blackstone. Weve been challenged finding securities that meet our valuation parameters. So, we have a lot of cash at this point. Rick santelli, Interest Rates moved how based on this news of syria . They didnt move a lot. As a matter of fact, i think the most interesting aspect of today is when you look at it in the context of how we traded after fridays number. We saw a good deal of buying after the number was out, which made sense. It was a weak number. But in the last several hours going into the close, they pushed rates up. They took that yield premium out. Who could go home short treasuries . Does that sound like a group of guys worried about syria . To me, i dont know if i could say as our guest did that syrias just going to be a pinprick, its going to be gone. Unintended consequences can be crazy. I think at this point, its just not holding the markets attention. As far as Interest Rates, there may have been one session where it really did pay attention. I think rates continue to look like theyre going up. If i took the name off a tenyear chart since may and showed it to any of your guests as a stock, they would say, oh, my god, thats the most bullish looking chart i have ever seen. Yeah, except its Interest Rates. Yeah, Interest Rates. What is 2. 91, 3 tenyear mean to a guy like you . If you do discounted cash flow, terminal value will be lower. I think this low level of rates is not as significant as maybe at a higher rate. I dont think its insignificant. You know, if you look at the bond indices since may, a lot of them were negative. Is it factoring into the stocks youre buying . Youre a well respected investor. A lot of people follow your stock picks. Again, i think if you look at the less efficient parts of the capital market, its small cap equity and higher debt. Those Asset Classes have done well this decade. If you look at the rest of 20 00, its not trading at low values ebdt. Youve had this artificial rate suppression thats forced everybody first out into the treasury market, then the Corporate Market then they sought equities and driven those prices up. You know, i can go through a litany of things that could happen. I tend to agree with roik syria. Who knows whats going to happen. For us to think theyre going to turn over those chemical weapons, i find that hard to believe. So, if we think back over our investment careers, you know, all sort of things happen. Who would have thought of longterm capital blowing up in late september of 98 . You had three noble Prize Winners and it was 5 billion. Quaint now in terms of the size of hedge funds. Yes. Lets bring in Jeff Kleintop as well. What do you mang of todays rallies . Is this going to stick . Five days in a row now that were up. You have to ask yourself, is this the kick the can september . Im kicking the can on september seems to be bullish on this market, maybe kicking the can on the debt ceiling, later resolution, that might be bullish. What about the taper . Is the fed going to kick the can on the taper . I dont think so. That means well see volatility come back here. I dont think weve seen alltime highs yet for the year but i think it will come with some ups and downs and september will live up to its reputation as a bumpy ride. What do the guys think of what happened in the market today and what it means Going Forward . Just to jeffs point, you had a lot of taper taking a little out of the market. Then syria monopolizing the headlines. Syria, a little relief today. If you look at taper, its still there. Debt ceiling, still there. I think today was a pretty good day to be a seller. Thats what i did with a couple of positions. I dont think we can you know, 1675, 1685, s p cash i think is a pretty good level to be selling stock. I think were due for a little bit of a pullback. We went back above the 50day moving average on the dow today, did we not . I dont follow the dow but i dont disagree. The s p were above that level. The 100day is the big level where we bounced. You know, at this point id rather be a seller because i think theres a whole bunch still coming down the pipe. Steve, a guest on last hour he thought what was moving the markets high other were people were back from vacation. Sell in may, go away. Maybe not a bad idea. They come back, here it is september, now we have some i mean, the jobs report wasnt great, but you see flow. Are there more people back . Theres a healthy amount of people getting back to their desks saying, wow, i missed a rally and a couple of these things because taper was so consensusly sold off in the marketplace. Also syria was as well. So, when people get back to their desks and missed 50 handles to the upside, they want to get back in the marketplace. I want to get one stock pick before we go from mark travis. One that jumps out more than any other is pan American Silver simply for the fact of obviously whats happened to the metals and how volatile theyve been over the last couple of months. Yeah, scott, i think again looking for a discounted dollar the way we look at it, the things that seem to be popping up for us are asset valuation plays. Pan American Silver being one of them. The challenge is, as ive said to some of my analysts, i dont think we would wake up tomorrow and decide were going to mine for silver and gold. What a difficult business. Youre mining in mexico, peru, argentina, they steal your mine in argentina. Again, heres a business whe where with 2 billion market cap, 400 million in cash. Good margins. I like to say, silver is gold on steroids. Its gotten hammered. Down 37 year to date. When did you get in . We owned a lot at 12. We think its worth 19. Now, when that happens, i cant tell you. If it happened tomorrow, it would be great. Good to talk to you. Thanks, guys. Good to see you. Really appreciate it. The first day of trading for the week is in the books. It was a good one. Lets go to dominick with how it all shook out. Michelle, all three major stock indices finished up on the day. All ten sector groups in the s p 500 finished in the green. Leadership came from cyclical stocks. In other words, companies that get the most benefit from an improving economy. Materials led the way, gaining nearly 2 . Cliffs natural resources, mosaic, they paced gain for materials stock. The best best performing sector was technology. It didnt hurt molex shot up over 30 after privately held Coke Industries agreed to buy it for 7. 2 billion in cash. Also yahoo, advanced microdevice, all strong performers as well. The worst performing stocks are those considered more defensive, the ones less sensitive to the ups and downs of the economy. You think naik names like utilities, health care, consumer staple companies. They were positive on the day but each only up half a percent. Overall, very strong start in terms of a day, very strong start for the markets this september. Back over to. You yeah wide breadth. Its been five years but feels longer. A half a decade after the mortgage led to Global Financial calamity. Well take a look at the fate and future of the fha. And apple looks to polish up its product line with a bushel of announcements tomorrow. Will the market like what its going to hear . Well see if the products and stocks will pop. Welcome back. Mortgage mania helped lead to the great economic downfall of 2008. Federal Housing Administration played a key role in the runup and in the aftermath to get things back on track. So, whats its role now . A diana olick has that. Reporter when private investors pulled out of the subprime Mortgage Market during the housing crash, the fha stepped in. The government mortgage insurer went from about a 3 market share during the boom to over 25 market share at one point. Now, as lawmakers try to figure out how to extract government from fannie mae and freddie mac, some are questioning whether the government should be involved in the Mortgage Market at all. They point to the fhas very high delinquency rate. It is falling but at the end of june it was 8. 22 . Seriously delinquent. Compare that to 5. 88 delinquency rate for all loans. Its the one institution that made it through the entire crisis without yet having to take any draw and perhaps may ultimately work its way out of this without having been a failed entity. Reporter dave stevens, now ceo of the Mortgage Bankers association, led the fha during the worst of the housing crisis and says there will always be a role for government mortgage insurer pipts the entryway for firsttime buyers. I think its going to be very difficult to have availability of capital on a large scale for the low down Payment Market that is safe and sustainable on a go forward basis without having the government play a role. Reporter while the fha has not needed a bailout yet, it still could. As the rest of the Mortgage Market deals with new regulations, making mortgages more expensive, the fha could, in fact, start to grow yet again. For more, of course, on the blog realtycheck. Cnbc. Com. The Financial Crisis Inquiry Commission was created in 2009 to investigate the causes and recommend ways to stop it from happening again. Commissions former chairman Phil Angelides kepz his fingers on the pulse of the progress of his groups success and he says it will be largely dependent on how who is the next fed chairman. Joining ining us exclusively f angeles is mr. Angelides. Considering the Consumer Financial protection bureau, dodd frank, five years later still being written, how would you rate the success of whats being done right now to prevent another crisis . Im not very sanguin. Ive been disappointed. If you look at whats happened in wall street, very little if anything has changed. The Credit Rating agencies are pretty much like though were before. Compensation practices really havent changed. The biggest banks are now even bigger so were at greater risk of too big to fail. Across the board, very little change. Of course, dodd frank has been fought at every turn in congress at the regulatory agencies and the courts by the big wall street financial interests. Does it distress you as equally that fannie and freddie exist in nearly the same form, the fha is still around in the same form . You didnt mention those as being distressful to you. I think if you look across a broad band its striking the extent to which there has not been the deep structural reform we need to protect our Financial System and our economy and to make sure our economy can grow again. Theres been almost no political, legal or economic consequence for the wrongdoing on wall street. So, your concern is that people havent been arrested . Well, my concern is theres been no fundamental change. Compensation practices where people got big bonuses no matter how deals turned out in the long term. Those practices are still in place. The dodd frank regulations, many of them have been stymied by a fierce rearguard action by the financial industry that spent hundreds of millions on lobby and campaign contributions. The Credit Rating agencies which performed woefully have not changed. Derivatives market why arent you as angry about fannie and freddie and the fha . First of all, let me say something. They need to be reformed. The truth is, the government had to weight in to stabilize the Mortgage Market because of the recklessness on wall street. Youre talking about afterwards. What about the mere existence . Well, i think some level of federal support for responsible homeownership makes sense. But across the board, i would agree with you, the kind of changes we need in our Financial System have been very slow to come about. Lets steer the conversation, if we could towards whos going to be the next fed chairman. Know you think thats critical to preventing a crisis in the future. Who do you think the best choice would be right now . I think janet yellen would be an excellent choice. Look, i think we want someone at the fed who will be firm and strong and resolute in their oversight of the big mega banks. Thats a primary responsibility of the Federal Reserve. Under Alan Greenspan the Federal Reserve failed woefully, helping lead to this crisis. We want someone who will also take seriously the other mandate of the fed, which is to move up employment. Five years after the crisis, we still have millions of people who are unemployed and been unemployed for the longest period of time since records were kept after world war ii. We do not want somebody as part of the deregulatory movement i knew you were its like you and sheila bair share talking points. She says Larry Summers was part of the deregulatory kabol and youre making the similar, if not exact date . I have a lot of respect for sheila bair. Were of different parties. The fact is Larry Summers did stand in the way of deregulation of derivatives, which would have been the sensible, right thing to do partially after Capital Management blew up. He also shepherded through glass steagall. One thing in glass steagall, it lightened the hand of regulation. Was actually called fed light. I think we need someone whos not been part of the washington wall street access. I think janet yellen is an extraordinarily capable person. I join a whole set of people who believe she would be a fresh perspective, a fresh voice at the fed why do you why arent you equally critical of the fed for having kept money so cheap for so long, which a lot of folks also think happens to be one of the causes of the financial crisis . When everyone seeks yield because money is cheap, desperate to cover inflation, this is what happens. And janet yellen would be considered very dovish and likely to continue that same policy path. I actually operate in the real economy. While i did Public Service for more than two decades. Ive been in the real economy. Ill tell you, things are very fragile out here. We need policy makers who understand that and are doing what they can to buoy the economy. I dont buy the argument that cheap money needs to lead to a crisis. Inexpensive capital can also be a boone to job creation, Enterprise Development if its properly applied. If its used for pure speculation like in the mid2000s disaster will occur. People who are certificates of deposit get desperate. It happens regardless because the money is so cheap. You cant be let me just say, things are very fragile out here. We need a Federal Reserve chair who understands how fragile the economy is and will do what needs to be done, particularly if Congress Wont undertake Larry Summers doesnt understand that . Larry summers doesnt understand that . Let me just say something. If you asked me, which you did, who my choice is, i think for a variety of reasons, including a fresh perspective, i think janet yellen is fresh and new. I think we need to break from the policies of the past that brought so much pain to this country. Shis shes been on the board for years now. What makes her new and fresh . She comes from Larry Summers hasnt been on the board at all. Hes new and fresh. Let me suggest michelle let me suggest something to you. Go take a look at the interview ms. Yellen did with the financial crisis inquiry committee. It showed a real willingness to learn from what happened in the 2000s. I sat in on her interview with Larry Summers and he had a very hard time acknowledging any kind of mistakes, for example, in the decision not to regulate derivatives. Again, i think all in, when you look at monetary policy, when you look at strength of regulation, janet yellen would be the best choice. Thats just my opinion. Larry summers has a problem admitting any mistakes at any time, is miening. Don kohn foregone, although reporting indicates he might be a leading choice. Thank you so much. Thanks for having me. Lets go to dominic chu. Pva, phillip van heusen. They are off their session lows. We should say earnings come in better than analyst estimates. Also sales coming in better than analyst estimates. However, its the guidance that has some invest worries worried. Current quarter profits are forecast to come in below where analysts thought they would on average. Theyre also holding their full year forecast for profits just at aro