in the morning hours, down about 150 points. then we actually went positive before going negative once again. the nasdaq gave up about 36 points, better than 1% on the nasdaq. and the s&p down 1%, with a decline of 16 points. joining us is michael from sylvans capital management, and mike will be joining us. bill will join us shortly. thank you very much for joining us. >> hi, maria. >> michael, let me kick this off with you. you talk about the dangers of rising interest rates. what is the danger of rising interest rates on stock prices? >> you know, i think it makes a big difference if the interest rates are slowing because we're tapering fed purchase or if we're actually raising interest rates. there's something to be said for slowing and tapering some of the purchases. that would indicate the economy is doing better. the fed feels a little bit better versus the full-on, i'm going to put my foot on the brakes and raise interest rates. we think we're a long ways off from raising interest rates. in the short term, some tapering would be a positive thing. we'll go with the bad news is good news theory. >> yeah, but, mike, every time we have an anticipation of tapering, it sells off. >> it hasn't been a straightforward story of the economy improving so, therefore, we fear tapering. the unsettled global markets are finally being imported into the u.s. stock market, which has been this big performer, a big area of stability. i feel like we're between dominant stories. it's no longer stocks are cheap relative to very expensive corporate bonds. with rates rising, it changes the equation. just the instability of the equity markets, it's feeling like it's just sort of generally unsettled and volatility is higher, therefore risk appetites go down. >> yeah, jack, let me bring you. chief investment officer, joining us, and, jack, you made the comment earlier, yes, rising rates represent a potential headwind for the market. the bottom line is there's an enormous valuation differential between stocks and bonds right now. and you really want to find value in the stock market. how come? >> yeah, i think through the lens of bonds, stocks still look very cheap. i mean, virtually every other measure of equities, they seem full value at best case. so i think that, you know, given that i think long-term interest rates or intermediate-term interest rates should be closer to 320 and not 220, my view is that i think the stock market can withstand one full percentage point rise in the 10-year and still hold up reasonably well. >> and, jack, you know, it's interesting, the correlation between the u.s. and japan right now. of course, japan at its best was up 80% on prime minister abe's policies, but has there been a change in sentiment there, and should the u.s. be worried about the correlation between the u.s. and japan? >> yeah, i think u.s. investors are looking at japan as kind of a little test of the extreme kay of quantitative easing and what could potentially happen. i think japanese investors are now looking for more policy changes, more substantial changes, long-term shifts, to accompany these monetary shifts to gain that credibility. i still think that the quantitative easing programs in japan worked, but now they need to follow through with some more substantive reforms. >> and i guess, rick santelli, that's what set the market down this morning, because we didn't see much change from the prime minister in japan overnight. so that really set the tone in the morning hours for the u.s. >> yeah, you know, i think stimulus from central banks is the drug, and deleveraging is the withdrawal process. and i think that even though interest rates are a huge part of that, i don't really think it's center stage. and i continue to say that show me where ben bernanke has said, okay, i will start a taper and here's what it will look like. this is the fodder of economists and surveys and stories and sourced reporters. i want to see the beef! so i'm not buying into it until i do, although there's an asterisk. he'll have to taper on mortgages. he's doing more harm than he is good. >> well, let me ask you, kenny, as you settled out at the end of the day here, what did you see? what do you think caused that final leg of selling at the end of the day today, and what do you think about tomorrow morning? how does it set us up for the open tomorrow? >> i think the market is technically a little brokered. we rallied back sharply on really, what, nothing really new. i think the market's going to test 1,600 again. it needs to do that. it broke through 1,635 which a lot of technicians thought would be a level of support. it pierced through it. it tried to rally and failed at the end. so i think we're setting up for a retest of 1,600 whether it's tomorrow or the next day. it will find support there. i think there are buyers at that level. i wouldn't be at all superconcerned about it. i think today -- this morning's weaken was credited to the widespread weakness across europe in light of the two-day german high-court hearing over the legitimacy of the ecb bank bond buying program. >> i want to pick up on rick's point, if i could. >> yes, please, go ahead. >> where rick talked about the quantitative easing is really the drug. i agree. i think what the fed wants to do is keep that drug going into this system. they're focusing on the economy, and they're realizing they're creating bubbles. so what they have to do is keep that drug flowing, but talk the markets down. so you're not going to hear anything substantive from the fed, just a lot of rumors, what i call the federal open-mouth policy. and what they want to do is keep the stock market at bay. they want to keep the housing market at bay. and use this drug to try to revitalize the economy and try to do that as long as possible. >> yeah, but, jack, you've just described the three-car monte, and we're the people it's aimed at. >> absolutely. but the thing is, as investor, we have to stay in. and then, you know, figure out how they want to play it. but i just don't think there's a -- the linkage between quantitative easing and 6.5% unemployment is there. i think that -- >> i'm with you. >> -- they'll eventually have to give up before they get to that 6.5% unemployment rate. >> which -- >> i agree. and i think what they've got doing, what the fed has done, they have everyone else talking about this tapering, ben bernanke has said nothing. all of the officials and fed presidents are talking about it, taking the market down, take some fluff out of it, so when we talk about tapering, which will be a long process, they're not just shutting the spigot off tomorrow, is the market will have some of the fluff out of it. >> and that should benefit stocks over time. >> yeah, the anticipation is doing the work for us. the anticipation and the selling happens now. >> it sounds good, but there's no way to say that's the case. it could get twice as nasty. it could get twice as good. there's no way to say. it's just -- you know, we're talking heads in this regard. >> yeah, but if the market really starts to unload, you know the fed's not going to walk away. they'll ramp it back up. >> i don't know no such thing! i think the fed's behind the curve with the market! the market is tightening the rope right now! >> right, right. michael, what would you be doing in terms of putting money to work? you have to make decisions regardless of what's happening around you. as a portfolio manager, what do you want to do? >> it makes me happy that we're not traders, because i have no idea what you would do in the short-term basis. it's clear to their point, we're seeing the talk of tightening. we're seeing the talk of the easing of the program. we're not seeing any action. so what you do is you stay with the fundamentals. you stay with the companies that are taking market share, that are getting pricing power, and that can beat investor expectations. the growth companies have a portfolio full of them. if it's not gen worth financial, it's dr horton or gilead. there's stocks, opportunities in every sector, places that are taking market share and outgrowing their peers. you stay the course. that's the key. >> all right. we'll leave it there, everybody. thank you very much for the insights. we'll see you soon, guys. thank you. meanwhile, police are continuing to clash with protesters in turkey right now. mary thompson on the very latest details coming out of istanbul. mary? >> the government is saying the police will remain in the city's taksim square until it is cleared on the orders of the prime minister. police began firing tear gas at thousands today, attempting to clear the square where the protesters have gathered for the last ten days. this morning, it took a violent turn with protesters in return tossing fireworks and rocks at police. the prime minister does plan to meet with the protesters who take issue with what they say is this heavy-handed government. some fear it's taking a hard turn to the right, toward religious conservativism. again, police plan to stay in that square until it is cleared. back to you. >> all right, mary, thank you so much. meanwhile, facebook's first-ever shareholder meeting under way in san francisco. what's the pulse of facebook investors as the stock remains stuck in the mud? what do they want to hear from mark zuckerberg? we'll hear from them after the break. and overdraft fees. consumers pay billions to the banks. but is it unfair to let you overdraw your account for a fee? the government is asking the question. we'll talk to two experts to find out how the bank account and the financial services industry could be impacted by changing regulations. then, is wealth just a matter of luck? you won't believe what some multimillion airs have to say on the matter. that and a lot more coming up on "closing bell." [ male announcer ] with wells fargo advisors envision planning process, it's easy to follow the progress you're making toward all your financial goals. a quick glance, and you can see if you're on track. when the conversation turns to knowing where you stand, turn to us. wells fargo advisors. welcome back. wild swings on wall street today. the dow jones industrials rebounding from an early 153-point sell-off, only to fall back again. josh lipton, what's with the market volatility all of a sudden? the vix is back. >> that's right. you may have to get used to it, we're in for a bumpy summer, according to some pros. they say volatility will be the name of the game. miller saying the market needs to adjust to a new paradigm. central bank is insinuating that monetary policy are not unlimited, volatility all but assured. ryan of schafers investment research agrees, saying volatility is definitely coming back, points back that so far in june, six of seven trading days have seen 100-point intraday moves on the dow. a tech next saying until it's taken out of the russell 2000, broken to the downside, he finds it tough to be extremely bullish or bearish here. if you agree with the call, we should be ready to buckle our seat belts, how do you invest in this market? ryan bellski thinks the short-term picture is cloudy. he says focus on higher-quality areas with consistent to improving operating performance, reasonable valuations and strong on cash flow generations. some ideas that fit the criteria according to him and his team, aetna, cisco, gap, mattel, pepsico and disney. back to you. >> thank you so much. josh lipton. facebook investors are gathering today in san francisco for the company's first-ever shareholder meeting. facebook's stock has certainly been under pressure this month, down almost 10%. now at $24.03. are investors getting impatient with zuckerberg and the stock price? we're joined with larry and chris. good to see you guys. thank you for joining us. >> thank you. >> thank you. >> i guess the question is, we know the stock is weighed down from the ipo. as a shareholder, what do you want to hear from this meeting? what do you think it will take to move the needle in terms of getting the stock price back up? chris? >> oh, i'm sorry, go. >> larry, go ahead. you can take it. >> maria, what i want to see, i want to hear bold talk about the company. quarter-over-quarter, up 39%, mobil, $6 billion business now, so i want to hear swagger and talk about how good they're doing. it's all public relations right now. if you look at the growth they have, the stock should be way up from where it is. and that's the problem. >> what do you think, chris? where are you on that? >> i'm actually with him. i'm at the point that whereas a stockholder myself, i'm holding. i'm long-term bullish on facebook because i'm dealing with cognitive dissonance, i'm excited to see the announcements about the smaller businesses and advertising dollars that will be spent on facebook. i want to hear more announcements about that, how they're going to make it a smooth transition from mid to small-sized businesses, to spend more dollars within the facebook ecosystem. previously, it was way too complicated. they were pandering to the fortune 500, which is fantastic, but they need to talk to the longtail. they need to talk to businesses making money on facebook and spending money on facebook, and specifically within the mobile ecosystem. they're still dealing with bumps in the road with mobile. >> are you holding onto your shares at this point, chris? how do you feel the stock is so well below its ipo price? >> i do take issue at times with some of the pr issues. i see they have a pr problem. they're still not addressing the privacy issues head-on. i don't think that zuckerberg is potentially the person that should be dealing with analysts, that should be dealing with the press on headward. i think that cheryl sandberg should continue to take more of the helm in that regard. if he were to step down, i wouldn't be so upset about that. but i am still holding, because i am, as i said earlier, long-term bullish on facebook, because i'm seeing what it can do on behalf of my clients at silverback. >> what do you think -- what do you think about that, larry? >> absolutely. i'm long term as well, as an investment, not a trade. what's going to make me jump back in now and buy more shares is i want to see some bold acquisition moves, maria. if we look at it, they could get into a content play like a netflix. that would be beautiful. how about twitter? make a big defensive move and get twitter off the table. so there's some big, bold moves that they could make and even possibly get into more into the mobile space. but they're just not doing it. so once i can see the acquisitions, which is what they went into the ipo for, i'll feel much more bullish on it. but long term, very bullish. it's the whole ecosystem. if you don't believe in the facebook ecosystem, you don't believe in the whole tech ecosystem, because everything flows into it. >> what do you think was behind this underperformance? technology has been underperforming as a group. what's been going on? >> i think it's obvious, right? if you look at the executives, we've seen aggressive selling happening. when you have a cto, the coo, and the cfo selling their stock for a publicly traded company, that's going to make investors skittish. so again, i'm dealing with this cognitive dissonance, and when we're working with our clients, google included, it outperforms the advertising perspective. google can't offer a specific demographic. you can't target somebody down to what, you know, what their likes are, what their wants, their needs, all of the different content they're offering up to facebook. and the information is the value there within the advertising. there's no other platform like it, no other platform comes close. there's all these opportunities that they still have yet to address, and we're hoping that perhaps this is what we'll hear during the shareholder meeting. >> i agree -- >> go ahead, chris. >> yeah, i agree. the whole idea with getting in on facebook was it's a $48 billion market cap right now. google is $238 billion market cap. i truly believe that long-term it can surpass the market cap of google, and that's why you want to be in facebook. but they need to get out there and talk about how good they're doing and not hide behind everything. they need to get out, say it, and just let the street believe in social media, which is what they're doing. >> what's your take on the acquisition of tumblr? how does that impact things? >> i think tumblr was a very bad move by yahoo! and i think facebook will gain by tumblr. i think a lot of the customer also go to instagram. if we look at what happened, google takes over waze, what that was was a defensive move. so that's why once again, i want to see facebook get out there and make some moves. maybe make a defensive move like twitter. maybe get into some of the other companies like zynga for the ecommerce or get into netflix. make a bold move and show us where they're going. >> all right. that's the one portion where i do disagree. i think the yahoo! acquisition of tumblr was a smart move because of the demographic of tumblr, so it helped to diversify what yahoo! was doing, and i want to say facebook made a great acquisition with instagram. i thought that was a bold move, and they're understanding the image sharing, and the manner in which we share information, via imagery, is definitively changing, and facebook is leading that charge. >> all right, guys, thank you very much. we'll see you soon. up next, are consumers getting hoodwinked? banks raked in billions from higher and higher overdraft fees. if customers want that kind of security, how much should it cost? later, traitor or hero? it depends on who you ask as the government prepares charges against self-proclaimed surveillance leaker, and an online petition for a presidential pardon is pulling in thousands of signatures. stay with us. scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. 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we'll help you get there. welcome back. so when a product has the word protection in it, but it starts to have the look and feel of a rip-off, that gets the government's attention. and a report by the consumer financial protection bureau indicates several problems with the hefty fees that banks charge for overdraft protection. kayla dashy now on the story. over to you. >> reporter: bank overdrafts are steep and often compounding, so little wonder why someone who overdraws their account would opt for the protection. bottom line, when you go into the red, the bank will charge you or freeze your account before closing it. an investigation provided stark figures. the average overdrafter spends $225 in annual fees and someone who opts into the protection programs could spend $900 more in fees, compared to someone who doesn't overdraw. how do the fees get that high? on the face of it, overdrawing is expensive. major national banks will charge you $35 for trying to buy something when you don't have money in your account. all told, producing some $32 billion in annual revenues for the banks. this is 60% of all checking account fees. for consumers, it's a sore subject. lori, an investment banker, called the fees, ridiculous, and one said, if you do it once in a blue moon, they shouldn't charge you a massive whack. jeff said, people make mistakes, this is just another way the banks stick it to the consumer. that was our straw poll from times square earlier. it a would appear the cfpb is not done. the results of the investigation inconclusive, maria. i think at this point, people are waiting to see if new regulatory orders are issued. >> thank you, kayla. the patchwork of regulations regarding bank fees may be the biggest challenge when it comes to addressing this situation. susan wine stock, director of the safe checking in the electronic age says a bank's complex and often unique overdraft policy can be confusing. but richard hunt, with the consumer bankers association, says people have options, including being responsible and not use overdraft protection. both join me here in washington. look, i understand we want to be protected and the banks have a right to charge for that. but how much? how much is the right to charge? this is an enormous amount of money. >> this is a product the consumer wants. they have to opt in. if they don't want to be charged for an overdraft, do not accept the product. so 80% of our banks' membership do not want overdraft, but 20% do. and we provide a service to make sure their bills are paid on time, so when they go to the grocery store, get gas for the car, they have to make sure their bill will be paid. this gives them a service. we don't charge them without providing a service. >> yeah, susan, that's all true. >> the problem is that what our research shows is that actually 54% of consumers who had kroefr drafts in the last year, the survey we did, they didn't think they had actually opted in. but yet they overdrafted. so what it says is, there's a ton of confusion out there about this product, and whether or not they actually have opted in or not. so there needs to be much more clarity in this marketplace, so the consumers actually understand the options for overdraft. >> what, the fine print over here, richard? come on, how do we know if we're in or not? >> you have to sign. i'm looking at a disclosure by capital one. very simple, easy to read. you have to check off, sign it, whether i want to go in or out. if you are not in, and you are charged, you go to the bank and say, i made mistake. that's the beauty of so many banks. you have many to choose from. we want to make sure we get it right with our customer. we know with so much competition, they can go to another bank. >> listen to the key quote from the cfpb report. overdraft, nonsufficient fund fees accounted for 61% of total consumer deposit account services in 2011 among the banks in the report. 61%. that's a hefty amount. >> yeah, maria, people choose to have this option. you may not have an appreciation for this, but some people cannot pay all their bills. they need some protection from their bank to make sure their bills are paid. so they opt in to get this protection. overdraft protection is not for everyone. unfortunately, there's a segment of society that needs this protection. here's what i'm afraid of. if they go too far and bans this product, where is that consumer going to go? they'll go to the unregulated market which will be more expensive and more risky. it is the last thing we want people to do. >> what if the bank says, look, you're risky, we're not even going to have you -- you know, be in this bank. we can't accept your business. >> there are banks that don't allow you to overdraft an atm and debit point of sale. that's great. consumers need to be able to make an informed choice. there needs clear disclosures, to understand what they're getting and make the choice. there are options for overdraft. you cannot opt in. you can get overdraft transfer, and the cfpbe looked at it, and it sounds like a lot of people realize that option is out there for them. >> so maybe the onus is on you to educate everybody in terms of what they need to be doing, because this is a service and the banks ought to be paid for it, right? >> we want to make sure consumers know what they're getting into. it's interesting the report found that people who had opened a new account were more likely to have opted in since the new rules went into effect. so does that mean that the bank is putting pieces of paper in front of the consumer and having them sign, not understanding what they're getting into? >> well, that's walking on thin ice, richard, if that's the case. >> that is not the case. we only believe 20% of our customers have opted in. the smaller institution, the more likelihood they'll increase the participation. this is a washington, d.c., small community banks and larger banks all agree on the same side. this is a great product demanded by our consumers. >> let me ask you, though, about clarifying it. ensuring that the customer understands what they're buying into. >> sure. >> ensuring they understand what they're paying for. do you think it needs to be clearer? >> we've been working with pew on this and other disclosures, as well. we want to make sure it's as full and transparent as possible for all 7,000 banks. we represent 60 of the retail banks, the vast majority have a clear and transparent manner. unfortunately, we've had to cut down a lot of trees in this country to comply with the rules and regulations set forth by regulators. >> the regulations get higher and higher. >> we've proposed a disclosure box for banks that lay out key terms, fees, and conditions for consumers. and a number of the banks in the cba have actually adopted our box. we'd like them to require all the banks to have it. so just the way you shop for a can of soup and look at the sodium content, you can pick the one that works for you. >> you agree this is a service, we need more clarification. but this should be paid for? is it too expensive? >> it is too expensive. we don't think the price for overdraft is reasonable, and we'd like to see it based on what it costs the bank to provide the service. >> look, we know, richard, litigation costs are up. regulatory costs are up. the banks don't know what the heck is around the corner in terms of a new regulator, all around the world. >> right. >> are they trying to suck as much money out of the consumer on overdraft fees because they see what's happening down the road to them with regulation and litigation? >> we are not. we have to make sure the customer's happy, with the relationship with the bank. look, look what happened over the last couple of years, the durbin amendment, you have dodd-frank, and now this. i hope -- i hope we don't become a utility, but there are some people in this town who would like to see a bank become a utility. that is the absolute worst thing that could happen. we have 7,000 banks, highly competitive market. you can pick and choose from every bank across the street. >> why, what's wrong with being a utility? >> no. >> maybe i want to know my money is safe the way i know my lights are on. >> your money is safe today, period, in any bank protected by the fdic. we think it's good you don't have a one size fits all banking system. you can pick and choose what you want. >> so long as it's transparent. >> absolutely. completely agree with that. >> all right. good to have you on the program. >> thank you very much. >> thank you very much for the important insights. up next, somewhere, somehow, george orwell is feeling very satisfied tonight. the national security agency surveillance leaks still fresh. is it any wonder that sales of orwell's classic novel "nineteen eighty-four" are surging 37% this week on amazon.com? coming up, hear the debate over the nsa leaker snowden. and news corp. getting ready to fire a salvo owned by disney. what will that do to your cable bill? stick around. before global opportunities were part of their investment strategy... before they funded scholarships to the schools that gave them scholarships... before they planned for their parents' future needs and their son's future... they chose a partner to help manage their wealth, one whose insights, solutions and approach have been relied on for over 200 years. that's the value of trusted connections. that's u.s. trust. ♪ [ roars ] ♪ [ roars ] ♪ [ roars ] ♪ [ roars ] ♪ [ male announcer ] universal studios summer of survival. ♪ the government is still looking for snowden, after he admitted to leaking top secret details about the nsa. >> it's astonishing, maria. the level of fallout is amazing, all throughout town. we're seeing, first of all, an aclu lawsuit against the government saying this dragnet that they say the nsa has put in place on american citizens is violating the constitution. also, we're seeing that booz allen has now officially announced that it has fired edward snowden. they say they fired him yesterday. they said he was an employee there for less than three months and he was paid a salary rate of $122,000, which seems a little bit to contradict the number he gave in an interview, saying he was paid $200,000 by booz allen. also today, we're seeing the white house respond. the white house continuing to refuse to comment on snowden personally. in fact, jay carney going out of his way really not to even use the name, edward snowden, in a briefing today. and we're seeing this response from google. if you can put up the full screen. google sending a request here to the u.s. government asking to be allowed to reveal its national security requests from the u.s. intelligence community, saying google's numbers would clearly show that our compliance with these requests fall far short of the claims being made. google has nothing to hide. so the companies here, maria, want to be unfettered. they want to be able to talk a little bit more about what they're being asked to do by the intelligence community, and they're saying to the u.s. government, let us talk about this, because we're arguing that it won't be as bad as people think it is once we're able to actually reveal the numbers. as of now, they can't reveal them. we'll see what holder say, the attorney general, when he sees the letter. >> that makes a lot of sense. stay right here. we want to bring in our next guest. many are asking if snowden is a hero or traitor. a "washington post" poll says 56% of us believe it is acceptable for the government to secretly track our phone calls. on the other hand, amazon says sales of "nineteen eighty-four" the iconic novel about big brother watching our every move shot up 7,000% this week. let's look at what our guests think. joining me is jeremy and also bob gorley, bob a naval intelligence officer, and with the defense intelligence agency. he is now a ctovision.com. good to see you guys. bob, you've been very critical of snowden. let me kick us off with that. tell us why. >> well, for a lot of reasons. number one, our constitution has developed, you know, over the years. we've all learned the constitution spells out exactly who's in charge of these kinds of things. article 2, section 2 says someone is in charge. there's a office, the president is charged with protecting secrets, national defense, and for being the center of all executive power in the nation. so he's the guy we elect to make these kinds of decisions. nobody elected snowden. the constitution also sets up a judiciary, which has rolls in this kind of thing, and also sets up the legislative branch, which passes laws. we have a mechanism, and the mechanism is not anybody who's narcissistic and decides they want to sabotage a program, gets to sabotage a program. that's not the way it's supposed to work. >> steven, you're obviously supportive of whistle-blowers. but did snowden break the law? >> the first amendment guarantees freedom of speech. the first decision giving freedom of speech to federal employee whistle-blowers and government whistle-blowers said they had a right to contact the news media, that that was protected speech. the first amendment trumps. it requires a balancing act. what we don't see in national security is any balance. the executive can classify -- if they sell a hammer for 500 bucks, classified secret. if a whistle-blower tries to complain about fraud or perjury, put him in jail. there's no balance. there's no equity. there's no fairness. but the first amendment protects every federal employee, protects all americans, and it gives them a right, and that right is not given up by the -- >> the administration's response, they've been very, very careful. you saw jay carney today, again, for the second day in a row going out of his way not to say, a, whether they even know where edward snowden is at this point, and, b, whether the administration is going to go after him, going to prosecute him. remember, we had a big scandal of the administration going after reporters for their sources on the issue of classified leaks. this will be a huge test for the administration, how they respond, what they decide to do, as much political as it is legal. >> you asked the question, did he break the law. it's clear. we want to bring him into the court, let the court give the final answer. frankly, he did. he broke the law. >> what about steven's point, the first amendment? >> it's extremely important. you have the freedom of speech. but you also have to follow the law. so you follow the law. you break the law, you pay the price. you do the crime, you do the time. >> first amendment trumps a specific law. >> it doesn't trump article 2. [ overlapping speakers ] >> -- what the white house is suggesting. >> well, the point is, it's called a balance. you need a balance. you can't have the executive just classifying every $500 hammer, every scandal as secret. you can't do it. >> right. >> and on the other hand, you can't have whistle-blowers with no rights. they try to pass a law for national security whistle-blowers, and it got stripped out of the whistle-blower protection enhancement act. they have no rights. >> steven is making all good points. >> he is. i have to support him when it comes to balance. so look at the constitution. you set the balance by having three equal branches of government. all three were involved in this particular instance. it's a very legal thing going on, and this particular person decided to break the law. >> shouldn't we all be nervous about this as americans that we are looking at privacy and freedoms being taken away? >> i think it's very american to wonder and to fear government. i do myself. i had relatives who were in t the -- the short end of the stick during the whiskey rebellion, for example. 1794. the president rode the army through pennsylvania. we should all be nervous. on the other hand, this particular program has so much oversight. >> yeah. >> it's really being done well. and if you want -- >> is it? >> yes. >> i think we just proved it's not being done well, actually. >> look what was released by the director of national intelligence on the website. >> real quick. >> that's the rub. the american people have the right to hear from the whistle-blower. if the program isn't as pretty as the government propaganda claim it is, how do they learn this? if all of these programs are classified as secret, and the first amendment was very clear, it's the people's right to freedom of speech. >> we have to go to istanbul. very good points. thank you. great reporting, as always, rich, thank you. the violence in turkey is continuing. we want to take you there now, because richard engel is there live and has the latest on the ground. richard? >> reporter: well, you'll have to excuse the gas mask, but there is still so much of it in the air right now, it's almost impossible to stay outside here in taksim square. the police are firing tear gas. the water cannons have mostly pulled back. and there are only really the hard-core demonstrators who are left here. they are staying in the park, the park that sparked this protest, although it is no longer about a park anymore. they are still here. they are spending the night. they are spending the night -- i don't know how they are possibly getting any kind of rest, because most of the protesters don't have any kind of gas masks. some of them are using painter's masks or putting vinegar and lemon juice in handkerchiefs and holding them over their noses. the question now, as it approaches midnight in istanbul, is what will happen tomorrow? will the big crowds come out again? will there be yet another day of clashes here in the center of the city? and based on all of what we've seen tonight and the government's very harsh crackdown, it seems quite likely that tomorrow there'll be more tear gas and more violence here in the commercial capital of turkey. >> all right, richard, stay safe. thank you very much. we'll check back with you tomorrow, then, richard engel live tonight in istanbul. the battle lines in the sports tv world have been drawn, and they could be expensive. after decades of dominating the sports television scene, disney profit center, espn, is facing new competition that's sending sports rights soaring. and the leprechaun, the four-leaf clover, whatever your charm, if you're rich, is it because you're lucky? the story is next. ♪ [ engine revs ] ♪ [ male announcer ] just when you thought you had experienced performance, a new ride comes along and changes everything. ♪ the 2013 lexus gs, with a dynamically tuned suspension and adjustable drive modes. because the ultimate expression of power is control. this is the pursuit of perfection. 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[ static warbles ] since aflac is helping with his expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪ you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape. ♪ [ male announcer ] see what's happening behind the scenes at aflac.com. welcome back. espn for decades, those four letters, represented tv sports dominance. but the times could be changing and it could prove costly to media conglomerates and consumers. julie is at the annual convention across town in washington. over to you, julia. >> reporter: thank you so much, maria. sports is the rare kind of content that people really must watch in realtime, which is why licensing costs are on the rise. but espn chief john skipper says his company is not passing along the cost to consumers. >> we think they're rising at a rate that's reasonable, given that in the current environment live sports are the only thing you have to consume live, and that has great value for our distributor partners and great value for advertisers. >> reporter: adding to espn's costs, new competition. news corp.'s fox sports one, which is law enforcementiunchinn homes in august, while comcast invests more in its rights. they don't expect it to eat into the espn market share, but moffett does blame additional competition for driving up content costs and destabilizing the system, potentially forcing some people to cut the cord. >> the distributors just don't have the pricing power to be able to put through those kinds of price increases to the end user. so inevitably, they're seeing either the subscribers leave the system, because the price is too high, or margins compress because they can't take enough price. >> reporter: cable distributors are continuing to pay espn and its rivals, fox sports one and nbs sports. the question, maria, is when the content becomes so costly for them, that its value backfires. back over to you. >> all right, julia, thank you so much. so what could turn these markets around tomorrow? wall street's top money pros will give you a leg up on wednesday's action ahead after this short break. and a new study of multimillion airs finds it's not hard work filling their coffers. wait until you hear what else keeps them on top. [ ice freezing ] [ wind howling ] [ engine revving ] ♪ [ electricity crackling ] [ engine revving ] [ electricity crackling ] ♪ how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. >> welcome back. a new study of millionaires reveals some surprising things about what it takes to build furnaces these days. wealth editor robert frank with the story. >> thanks maria. most of the wealthy believe they make their own luck largely through hard work. it all depends on how you made your millions. a new study asked multimillionaires about the factors that made them rich. hard work, followed by education, smart investing, being frugal and taking risks. only half credited luck. entrepreneurs felt far more lucky. 79 percent credited luck but corporate executives said hard work and education. succeed is as an entrepreneur depends more on timing than education. the group said those with big r biggery goes are less likely to admit that luck makes a difference. maybe they were lottery winners. >> will we see a turn around on the market tomorrow. what else do we need to keep an eye on. joining me is susan fullton, scott kimball from the management team at tch and kristen francis from web bush. >> well, rumor has it tomorrow is going to be pretty boring. however, there are some things we know that mean that it shouldn't be boring for you. the dow is up 15% since the first of the year. interest rates are very pressured to move upward. so you really should be taking risk out of your portfolio. my suggests would be that you -- if you have a stock going up more than 25% since the first of the year take some of it off the table. if you have bonds paying an zob tant interest rate -- >> thanks so much. scott you're up. >> i can tell you that the bmtch, what we're doing is take advantage of some of the pressure we've seen on interest rates to find higher yielding bonds. specifically with interest rates up 50 to 60 base points in certain areas look at the treasury auction, see some money flowing back into the bond market. >> we'll be watching that. kristen you're up. >> thank maria. we'll be watching the entertainment software stocks tomorrow with the e 3 video game conference in full swing here in los angeles. microsoft announced pricing for the x box 1, $499. it has restrictions around game transfer and always on requirement. so we think it gives sony a distinct advantage. also analyst briefing in the morning is on the best ideas website. we think we'll see rebound in packaged goods software. >> we'll leave it there. thanks everybody. we appreciate your time. rising interest rates equal lower stocks, right in maybe but not all. hear what jp morgan said next. 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[ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ >> finally today my observation on everybody seeing so afraid of higher interest rates. this market has been trading tick for tick on the move in the ten year yield which has been rising. seems every time it moves up stocks sell off. this of course is lifrked to what ben bernanke is doing or not toog. in fact, higher rates could be a positive for some groups including the rate sensitive banks. jb morgan ceo delivering the keynote speech over lunch at the morgan stanley financial services conference. for every move higher in points his bank will make an additional 2 billion dollars. he told the crowded room that he's taking steps to protect the firm from a rapidly raising environment just in case things aren't contained when the feds start to move. he said no major acquisitions are in the foreseeable future. the company will submit to the government on capital requirements known as the see car in september. he hopes to get the ruling on that in october. he also mentioned that litigation costs will remain, quote, lumpy, meaning that this is the new normal for the banks. litigation costs are here to say. when he was asked about the london whale trading debacle he got animated. >> bad strategy, badly monitored, badly controlled, embarrassing, terrible, sorry, i can give you the ugly details. badly report means reporting wasn't right. the control, we should have had more limits in there. the risk property and a whole bunch of stuff, we came full circle. that's what we did. >> so having survived a shareholder vote to strip him of dual roles as careman and ceo he's taking like an executive ready for the future, whatever that new normal may be. before we look at wall street it was another ugly one. this market was following rates and following what happens in japan. the market was down in the triple digits off the worst levels we had been down 152 at the worst. that will do it for closing bell. thanks for joining me. stay with cnbc. fast money begins right now and have a good night. >> live from the nasdaq market site in new york city i'm melissa lee. let's get straight to the big story. global turmoil, the japan ease stock plummeting.