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tv   Varney Company  FOX Business  March 8, 2013 9:20am-11:00am EST

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they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade.
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>> jobless rates down. 7.7%. new jobs created, 236,000. let's bring in austan goolsbee, he knows a few things about the economy. job creation and the unemployment rate. austan, welcome back, good to
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see you, sir. >> thanks for having me back. stuart: i've characterized the job creation part of the report as solid. we've got all the numbers. will you give us a characterization, too? >> i agree with you. i think solid is the right description. you know, it's not overwhelmingly good, but it's definitely a positive. now, right before the break, it sounded like you were saying that the sequester cuts caused this. i think if you look, that this is a february-- too place before the sequester cuts and i think the magical cuts start working before they take place. stuart: you've expressed on "varney & company" if you cut government spending you improve the economy, you don't waste the economy. and i agree with you. those cuts hadn't started. the jobs numbers start going down, i think people are going to start saying these cuts are having the kind of austerity effects they're having this europe. stuart: okay, well, that's a separate argument and we'll get to it.
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i'm sure we'll get to it next month, austan and i look forward to it. let me give you some of my perspective. there are still today 3 million fewer jobs than there were in 2007. so i'm saying, look, we're recovering, but ever so gradually and it's nowhere near good enough yet. your comments. >> i somewhat concur with that. now, you want to be a little careful because you know the population has aged some gradually, but if you're going to compare four or five years ago, the number of employed people is influenced by how many people retire, but i think at the weakest part of the job market which you have highlighted in the past is the labor force participation, that there have been a lot of people who dropped out of the labor force. and though you saw some significant job additions today, you also saw some more people drop out of the labor force. so, i think that's the weak part.
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i think the strongest part is that you're seeing fairly robust job growth for how modest the overall growth rate has been. you know, if the economy is growing 2 1/2%, that's okay, but not great. and to be able to add 200 plus thousand jobs a month when growth is in that moderate kind of range, i think that's a positive. stuart: and here is what really not angers, but grates on many of our viewers, we've spent a ton of money and in the last four years we've laid out the government's money, stimulus programs and increases in government spending and we haven't got mmch for it. we've still got an unemployment rate well above 7 1/2% and we've acquired a massive debt. a lot of people are telling me, look, it's not been worth it. we've spent a lot of money and we haven't gotten value for money in terms of economic growth and unemployment.
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how do you answer that one? >> well, you know, the first thing i'd say is the main thing that, at the end of the bush administration and the beginning of the obama administration that everyone was trying to do, is prevent the next great depression, which we were teetering on the edge of and we did not have a depression. people should just take a step back and recognize what an important commishment that was. as regards to stimulus and the bang for the buck of the stimulus money, remember, the stimulus money is now gone from the economy, that was a temporary phenomenon, that it went up in '09 and 10 and started coming down in 11 and 12 virtually gone and 2013 that's not-- >> look, we can argue all day long about did the stimulus work, and how did it it do? we've got a ton of debt and slow growth and the economy. i've got charles payne with me,
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he's going to get into this. >> are we at the point, would you suspect the administration is confident enough and the american economy the way it's built, to step away and let it gain some momentum right now at this point. there's no more stimulus, no more intervention, take the training wheels off and let's see where the baby can go. >> well, guys, get the last congressional budget report. and shows that over the last 12 months, the government spending is shrinking at the fastest rate in 50 years. that's exactly what's happening. because all of that stimulus is phasing off, so its contribution is negative to growth. it's not even zero. so, the shrinking of government is taking place. stuart, what you failed to mention and what we must remember is that every time you have a down turn, the deficit explodes. it's before obama came into office the congressional budget office was forecasting the deficit would be well over a trillion dollars just based on the economic condition.
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we've got to think about fiscal-- >> i just go back to 2009 when president obama first came in, he was forecasting an unemployment rate that we're' way down there at 6%, that we would have a deficit of a half trillion dollars. it's just -- and a growth rate, by the way over 4 1/2%. it just hasn't happened. we can argue all day long about why it didn't happen, but it didn't happen. >> you're taking the fork made at the end of 2008. stuart: 30 seconds. >> and everybody knows it wasn't just the obama administration that was mistaken in the forecast. all the private sector forecasts were far too optimistic at that time. stuart: you know what it's like, i'm sorry, i hate to cut you off, but look, a hard break, got to go. come and see us next month. thanks very much. three days in a row, three records for the dow and all the indicators are that we will open higher again today. and you can watch it live happening here on the opening
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bell. about three minutes away.
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>> i've got 20 seconds until the opening bell. i want more commentary on this jobs report. so let's bring in scott in chicago. 236,000 new jobs, do you think
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that the private sector is finally off to the races? >> no, it's good news, but we definitely can't take the training wheels off yet. that shows the resilience of american corporations and the consumer. that's post fiscal cliff and it's pre-sequester. it's a pretty good number for that, but we're nowhere near being able to take the training wheels off. >> i'm sorry we're so short, scott. we love you, but the opening bell, it's ringing. we are starting to trade and we're going to go up right from the get-go everybody. we're up 24 points now and expecting a gain of 70, maybe 80 points in the first couple of minutes of trading and may well take us to the 14,400 level. let's break it down. i want your attention, day traders, this is for you, you love it, watch it move. pandora, good profits. the money is pouring in and the chief executive joe kennedy is announcing he's stepping down after nearly ten years on the the job. it is a web-based radio service, where is pandora? look at that, everybody, 23% higher. read it and weep, charles.
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you didn't recommend it. pandora up 24% and counting. let's get to nicole. i know you're on facebook because they redesigned the news feed and investors apparently like it. tell me. >> and read it and weep, poor charles payne. let's have a look here, and facebook, we talk about they're doing the whole new look and dividing several tabs, photo tabs, music tabs, but the stock is 28.30, where it isn't is the ipo price of $38, but okay. stuart: well, it went up yesterday and i thought that people liked the new design. and now, this morning, it's down about the same amount. i want to move on to google. cutting 1200 jobs from the motorola mobility division. tell me where google is now. >> google is slightly higher. and 14,400 i saw we were at 14,399. and google, obviously, has been hitting all-time record highs, but cutting on the motorola
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division and we're seeing it-- >> we're bee lo 14,400. there you go, 14,405. you know, you have to call it like a horse race this week. you know, it's it up, it's down, it's up-- three days in a record a record. and we're at 14-4, who would have thunk. and regulators released details of the battery fire on the 787 dreamliners, and didn't reveal what caused the fire in the the first place. look the at it now, the dreamliner remains grounded, but boeing stock, again, it's up $81 now on boeing. 62 cents higher as we speak. mcdonald's, sales coming in, well, better than expected, but still down, i think, in the u.s., same store down 3%, but the stock is up, nicole? >> well, a couple of things factored in here and we're seeing the stock up 1 1/2% for this dow component, mcdonald's.
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the global sales did fall 1.5%, less than feared and they also factored in extra for the way they did the comps. europe was still not so great. but the dollar menu is back in the united states and that bodes well for them and the famous mcrib, which i have never had, but clearly, i need to, because they moved the date up on that and that helped their numbers a little bit as well. very popular. >> i'm a dollar menu fan and everybody knows it and it's the best value in fast food in the united states of america. in my personal opinion, okay? that's it. thank you, nicole, the dow is up 9, 14408, it's a horse race, everybody. let's not forget oil and gas, however. check out oil $91 a barrel not much movement. average for gal. down at 3.71, it was down a fraction overnight. listen to this for a second, i've the got a new report from citi that says that current consumption levels, at current consumption levels, we will exhaust our current oil reserves
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worldwide by 2039. and 37 trillion dollars needs to be invested in energy between now and 2035 to affect its growth, especially in emerging economies. hold on a second, that seems incredible to me. out of oil by 2039? juss so happens that we have a man here who knows what he's talking about. bjorn lundberg, the environmentalist that we love is is here. >> that's bizarre, we've been running out of oil by 2010 when they came out and said we have ten more years of oil and 40 years, every years and maybe 50 years now, we'll keep having lots of oil because technology finds more as we use up the-- >> hundreds of billions of barrels of oil in northern california alone if you frack the shale. the new technology. stuart: we have he got a frack. stay there, bjorn.
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the state department says that oil from canada that would head south on the keystone pipeline, it would contribute 0.01% of global emissions, in other words, virtually nothing, however, actress and activist daryl hannah, she was on our show this week, she didn't want to hear about the state department report. listen to this. >> the state department says that those tar sands contribute 0.01% of global emissions. >> take the paper crumble it up and throw it away. stuart: you always say. >> not always say it. stuart: your position, you would say it's a lie. >> that's not true. stuart: are tle lying. >>? this case, yes. stuart: oh, a lie. bjo bjorn, you're still here. you're a reasonable environmentalist, i think we're dealing with irrational people opposing the pipeline, what say you? >> a lot of people are saying we should cut down, i use the term fossil fuels and i understand that argument. i think in the long run, that's the way to go, but trying to cut
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off the consumption by saying we don't want this pipeline, it's not like the oil is not going out. if anything, canada will probably ship it to british columbia. so fundamentally, this oil is going to get out. this oil can help our recovery now, it can help the economic growth now. what you have to do is not tell people, you can't have the oil, but you have to make the alternatives better if you want to get people off the dollar mcdonald's menu, you've got to offer them better choices, and healthier foods that are cheap and wonderful. stuart: well, ms. hannah and her friends think you're in the paying of the oil company only saying this because oil rules money. there is there's a conspiracy theory. >> i'm not paid by pill or anything else. the reality we'll see more and more oil used especially in the third world. and there are people who don't have access to the oil and
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energy reserves and they want a bridge and a car and everything else. stuart: what are we going to do about it? they're going to use more fossil fuels. how do you persuade them not to. >> we're not going to do it by saying would you please step back into poverty. and the only way green energies so cheap and effective everyone wants to buy it. stuart: they're nowhere near it. >> nowhere close. we shouldn't be putting up money putting up solar panels and wind turbines 1.0 until we make them more efficient. unless we spend money on research and development to get to 2.0 and 3.0 and eventually get, it might not be solar panels or wind turbines, but there are lots and lots of ideas and some of them so cheap they'll eventually switch over. >> the other guys say as long as there's fossil fuel and relatively cheap we'll use it and not get to solar and wind and hydro, and it's the reverse
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of your argument. >> well, no, no, they're saying as long as we don't find cheaper and smarter green energy, we won't switch and that's absolutely true. but they want to make fossil fuels that-- >> they want them. >> never going to work. we've tried in the rich world and not done it. of course they're not going to do this in china and india, so the reality is, we've got to realize like everything else, technology will save the day. stuart: around the table, five seconds each. are we going to build the pipeline, yes or no. >> yes. stuart: monica? yes, we are. charles. charles: yes. stuart: you knounanimous. i almost called you bjorn borg. >> everybody does it. stuart: the pain from this has to be public. and can selling the tours of the white house saving 18,000 bucks
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a week. however, behind the scenes the president could be cutting more. wait until you hear how much the taxpayer has to shell out on the chief of staff for the president's dog. i'm not joking. you'll hear more at the top of the hour. now, seven early movers this friday morning, the market's up again, where are the movers. the web music service pandora and stepping down and the market loves it, up 22%. and disappointing forecast for the head phone maker, candy is down big. and motorola cutting jobs, 10% of the work force and the phone maker tries to return to profitability. google down a fraction. and facebook gives the news feed a new look and it's down. billionaire investor carl icahn demanding that dell pay out 15 billion in special dividends. no impact on the stock at 14. blackberry has the new touch screen mobile device on store shelves in more than 20 countries. the chief says it's gaining
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traction. it's at $13 a share. and now, mcdonald's, i love the dollar menu. and global sales establish the restaurant's better than expected. but it's still-- and it's up, 98.72 on mcdonald's. the big board, we're up 61 points. new high on the dow and never been as high as this, 14,389. time is money, here we go, 60 seconds worth of three examples of how people are spending their money. first, rare and expensive wines. we will have the bottles here in the studio. is this an investment or do people actually spend thousands of dollars on a glass of wine and pop it open? do they? we're going to ask at 10:35. next, single people living in style. wait until you see the high end of bachelor and bachelorette pads, our mansion reporter from the journal found. she's here at 10:45. and finally, pot as in marijuana, one company wants to put 30 marijuana vending machines in one city and it's not even in colorado.
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>> all right. we just got the paper from the white house from the jobs report. quoting directly. while more work remains to be done today's report provides evidence that the recovery is gaining traction. the economy added private sector jobs for three straight years total 3.65 million jobs added over that period. a direct quote from the the white house added just moments ago. to the big board, yes, we're higher. the rally is losing a little bit of steam it had earlier we're the 48, 14,378. charles is going to make money
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with, wait for it, drum roll, 3-d systems. charles: and hearing about the 3-d printing thing and more exciting than any cell phone technology, anything going on in the world. the most exciting thing. stuart: 3-d printing. charles: printing. you can actually print. well, you saw the james bond movie, when they blew up his car, those were actually printed out of a 3-d printer those cars. they were to scale, but you could do almost anything with this. and eventually what we're talking about take layers of a material, let's say clay, and you print anything you want. they're talking about in the future being able to print an airplane, a 747 printed out. stuart: it prints out a model. >> it prints out the actual thing because they're using the material. they have so many materials, you can use wax, nylon, plastic, rubber metal, and i played this stock and made tons of money and pulled back, but gets ahead of itself. it's a volatile stock, but
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they've got an amazing market, business model. razors and blades. they sell the printers and then the materials and everyone uses it. they do business with 3m, ibm, all of them. amazing. stuart: can we put the chart up again of 3-d systems. what's the ticker. charles: ddd. stuart: ddd, okay, and there you have the chart. and you come down recently, but-- >> come down recently, a good chance to buy and the caveat it's extraordinarily volatile and by the way, one thing they think they can use biomaterial in print out a heart or a liver, further down the road. stuart: a tad over the horizon, i'd say. secretary of state john kerry, he committed 250 million dollars of u.s. taxpayer money, aid, to the muslim brotherhood in egypt. and an outspoken critic joins us. and something else happened in
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egypt as secretary of state kerry was giving that 250 million. tell me about it. >> well, thanks for having me back, stuart and you know, before our very eyes we're seeing evolving through this supremacist ideology of islamism, the same thing that happened in saudi arabia, the committee for promotion of virtue and not vice. this is creating a committee for a year and a press conference in cairo. the brotherhood disavows themselves, but didn't criticize and the imam who came back from the u.s., when he came back from the u.s. he vowed his lifetime struggle to destroy israel and creates this committee that's sort of the morality police in egypt, the vigilante police to prevent sort of wrongdoing. stuart: i remember in iran, i think they're called the moral police guys the besiegy. i think that's correct, they
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operate in iran and flog women for showing an ankle or something like that. is it possible that american taxpayer money will be diverted in some way to pay for a new moral police force in egypt? >> well, even if it's not diverted. when you're helping an ideology that's supremacist they will use our money for some things and use their money to destroy the religious freedom of their own citizens. this is why when you help a government that's rotten at its core and i was there three weeks ago, stuart, and met with deputy of morsi and religious freedom, takes you ten minutes to know they're supremacist and deal with con spspiratorial matters. no mistaking that their view of the world is different than ours and you can't put lipstick on the pig. this is not an ally. we're dumping and wasting money. we should save it for our own country or use it to help the
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liberals in the region that, by the way, right now, are putting up cartoons of senator kerry saying he's sort after honorary member of the brotherhood. stuart: all right, always a pleasure to have you on and by the way, your views are very much in sync with many of our viewers, and that's a fact. thank you. >> and time for the gold report. where are we, down about 6 bucks this morning. and turns out ravens quarterback joe flacco might not be actually the highest paid player in the nfl after all. you guess tthe tax man is knocking on his door. find out how much his fair share is going to pay? what is his fair share? you'll find out in a moment. ♪
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>> you know, you think about the hard work in your life and get to a point where i'm at now and half of your pay is being taken away and that's he when you've got to walk out and hope and believe it's going for the right cause. stuart: that was st. louis running back steven jackson talking about the government
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taking half of his earnings in taxes. that reality is about to affect ravens quarterback joe flacco, signed a deal highest paid player in the nfl, he can expect the government to take 51% of his earnings. so, monica, he's not really the highest paid guy when it comes to take-home pay. >> not effectively. drew brees, making a little less, quarterback for the new orleans saints, more take home pay because he lives in louisiana and bobby jindal low tax policies and pro growth policies. stuart: ten seconds, charles. charles: i wonder, i bet they must have negotiated this in the deal and this is tough for businesses. this really -- this speaks obviously to flacco, but what about businesses stuck there that have to pay more to retain good talent because the state is taking all the money. it's backwards and it hurts. stuart: i understand they only paid him more because they knew he was going to lose a lot in taxes and factored into the contract. >> and if the business was in maryland he'd have to do the
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same thing. stuart: more proof of president obama wanting to inflict maximum pain from the sequester cuts right on the american people. no more white house tours. yet, chief of staff for his dog stays on the payroll. wait till you hear the salary. you won't believe it and others. they're not being cut. new at 10. ♪ the one with the wagly tail ♪ ♪ how much is that doggy in the window ♪
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stuart: this really caught my attention. the chief of staff to the president dog makes $100,000 a year. that is from charlie cook. sounds like a joke. it is not. $277,000 a year for the white house this three calligraphers. $100,000 for the executive chef. $700 a year for the first family's health care costs. i cannot believe that. that one hawaiian vacation, $4 million. again, those numbers are from charlie cook. white house tours cost $18,000 a week. he canceled just one golf trip. no, paying for the public may be seen and felt.
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the president political maneuvering became apparent. make the cuts hurt and blame the republicans. we can now see that policy for what it is. ridiculous. ♪ ♪ stuart: check the big board. half-hour into the trading session this half-hour. following three records in a row. we were well above 14400. we are now back to 14340. nicole: we saw strength in the u.s. there is still weakness for customer traffic in europe and japan. they did see a u.s. recovery. they had been boosting the dollar menu advertising. they shifted that.
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obviously, they have done well here in the states. the numbers, the prior year, it actually included leap year. that messed up the numbers to a certain extent. when you take them out, they actually did okay. stuart: messing around with the leap year, you have a better rapport. look at the big board for a second. we now have a gain of nine points. wholesale sales are down. does that account for this? charles: into a friday, over a weekend, a lot of smart guys cashing out. stuart: i am glad you have a reason for it. please, take a look at this headline. turning on the charm, obama tries to and gridlock. that is the washington post headline read monica, i say that
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the public now sees this armageddon threat as ridiculous. the president backtracks and turns on the charm to try to get a deal. >> yes. the president now has a huge sequester gap. we got some good job numbers that looks like maybe the economy may be on the march towards some sort of recovery. maybe. it is all wishful thinking. it would be nice if the president changed his tune. i actually think that what is happening here is a setup. i i think the president is bringing in the republicans, especially from the senate, so he can say i tried. i tried the bipartisan move. i tried reaching out to republicans. i was negotiating in good faith.
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i was talking to them about cutting spending and retitle the form and they would not meet me halfway. stuart: you do not think he means that? >> there is no incentive for him. ideological, politically even economically to do any of this. his idea of a transformation of america is to create a european style socialist state. he is not about to change his tune. stuart: any comment, charles. charles: the president has never shown any sort of willingness to compromise. he will give you what the compromises and he will check the box yes or no. are you serious that you will fall for this? i do not know. maybe a few of them will. we will see.
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stuart: later this hour we will take this discussion a bit further. monica crowley said the president is trying to take the economy down. she will make her case later this morning. 60 million wanted to 33 billion to pat wanted. clayton morris is here. he is our tech guru. >> this report comes from digit times. there is one area where it is usually accurate. what i say is, and it seems to be keeping with rumors i have been hearing, april new ipods.
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you caught current level model of ipod. therefore, april has a large new display. i think this is really interesting. they are not cutting orders right now for the small ipad. that it's probably april, we are likely to see new larger screen ipads. stuart: we spend so much time on apple because it is so dominant in technology. it has come down from 700 to 430. it is not necessarily a huge negative. it could be if they are bringing on a new one. >> we areealready seeing case leaks out of china. it may be the same sort of design as this ipad.
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stuart: i have to jump on facebook. they had this new newsfeed. i am sure you have seen it. >> i think it is great for consumers. they get to see larger photos of their friends kids right in their newsfeed. if you are into music and you want to listen to a feed, you get it all right on the screen. however, if both good for tumors. i think facebook yours are doing it because advertisers are bad because you are getting hit with advertiser garbage. you may be happier because you are seeing bigger pictures of your friends. stuart: pictures or music coming up on the screen, how do you
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expect everybody to just know how to do it. >> they are not expecting you to do it. they are doing it for you. it is the redesign of bigger is better. that is what they think. you scared me for a second when you said you're going to to jump on facebook. stuart: google going after amazon. suggesting trying to move toward same-day delivery. what do you make of that? >> that is the holy grail of retail. if i cannot leave the house and never have to go to a best buy ever again to pick up a charger or this kind of device, you see this massive snow outside right now, if i could get amazon with their hopes that are based all over the country, same with google, that i can order a new google phone and have it ordered and delivered that afternoon so
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i don't have to do with some college kid that does not know what he is talking about -- stuart: but you have to pay for it. surely, they will not give free same shipping same-day. >> think about all the services they give away for free. they want you to be on the internet. they give away gmail for free. if they can figure out a way to get you on the internet so you are guzzling up more advertising dollars, that is good for google. stuart: i am smiling out monica. i cannot see what is wrong with that, quite frankly. >> i think there is probably a huge market for this. stuart: i think amazon backed off and said they could not quite manage it. >> they are trying to. you have to do it in areas where amazon has distribution hubs. my wife would love this. stuart: michael crowley, you
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would not order shoes. >> i have actually ordered shoes for same-day delivery. stuart: have you? >> see. >> yes, i have. when you have a big event. >> you get a box of shoes delivered to you, you can send them back free shipping. no big deal. stuart: you are kidding me. have you ever heard of this, charles? charles: absolutely. same-day or not, almost every day i walk home i trip over a package. my wife does not need it to be same-day. stuart: thank you. have you seen the president plan
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to save medicare? my take on it is next and it is not pretty. however, first, charles will have another stock to make you money. that will be right after this. charles: i am already in it. i am making people tons of money for the last several years. ♪ [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ]'ll bust your brain box. ♪ all onhinkorswim
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big move for pandora. it is cheap. now at 67 million monthly listeners. pandora stock is up 19%. we just spoke about facebook. a revamped news feed. google cutting 1200 jobs for its motorola division. google stock not taking a hit because of that. it is only down six dollars. check out the dow. we talked 14400 at the oath. it is down a bit. the pullback is due to profit taking. my take on the president's so-called plan to save medicare. ♪
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stuart: i cannot believe this. this is a name from the distant past. charles says he is going to make money with gap stores. >> fall into the gap. stuart: when all they sold was levi's, i remember that while. charles: it has made a huge reversal. a nice comeback. they open in 2008 many stores. the trends on sales have been absolutely amazing.
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overall, though momentum that they have from last year is still there. i think you get back to 37 as your key resistance point. you will like this. they have the new jimi hendrix limited edition shirts out. i know you may want to run out and get one of those. >> stuart will be first in line. stuart: this is a trading stock. charles: buy and hold. stuart: march 8. write it down. the president says he will tackle medicare. he has put out a plan to save $400 billion over ten years. here is my take. the plan is laughable. first of all, the care is committed to paying out money it does not have. $400 billion will save medicare? now look at some of the details. how does the president save $400 billion?
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one third of it will come from other health savings. that is a series of initiatives. mother -- no further details. it reminds me of cutting waste and fraud. i have been hearing that from government for 40 years. let's move on. the president will say 140 billion with price controls on drug companies. great. it kind of reminds me of hugo chavez. and then there is the $30 billion saved by cutting money to doctors and hospitals. while doctors keep treating medicare patients? do you think? finally, there is this, the president will encourage efficient care after a hospital stay. that will save an undisclosed amount. that is the magic wand theory. okay.
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enough. that is the president plan to save money at an entitlement that is rapidly going insolvent. to repeat, the plan is laughable. ♪ >> meet bill and melissa. like many, they built their financial house on stocks, bonds, and insurance... and then saw it blow away with the first winds of economic change. when mary lost her husband, she invested in real estate. but when the housing bubble burst... so did her financial future. robert and rachel discovered the security, safety, and stability of american bullion, the name you can trust for 401(k) rollovers and i.r.a. transfers. unlike other gold companies, american bullion handles all the paperwork for you, hassle-free and 100% tax-free. call 1-800-gold-ira now and speak with one of our gold experts to see how simple working with american bulln
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stuart: you just heard my take on the president plan to fix the care. i am not buying it.
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i called it laughable. monica, what you have to add? >> there is nothing to suggest that he is serious in any way. stuart: he will not reform it. he simply will not do it. >> nor does he have any desire to reform medicare and medicaid. look, this president has been president for four years. if you were really serious about seeing the problems and crises, which are very real and as you point out they are growing broke really fast, he would have taken it on in the first term. especially when he had huge democratic majority in the first two years. he has no desire to do it. he knows he has to do something. it is a path of lies. stuart: strong words. wise is a strong -- lie is a
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strong word. >> mequon he says anything, do not believe him. he does not mean it. stuart: i mean change the way the structure works when i say reform. charles: i do not trust any of it either. encouraging people to take better care of themselves after they have had, you know-- stuart: the expression was encourage efficient care after a hospital stay. that is different from being told get out and exercise. charles: if you do not do the first, getting out there and exercising, what makes you think anyone will do the second part? i have to be honest with you, it is really shocking how much
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little influence he has on his constituents to change their behaviors. we talk about redistribution and wealth. i can't go out and eat mcdonald every day because the taxpayer will pay for any kind of surgery i need later on. stuart: he will not open it up from 66 to 70. i think we should do that down the road. charles: to save it. not to heard it. stuart: if you really want to say this thing and not the europe, you really have to reformat. >> he is ideologically intransigent. stuart: do not get me started. >> i have gotten you started. stuart: let's take a break and go to the big board. we are still in record territory.
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14,336. a bounce off where we started in the morning. i am afraid to say you have a big loser. nicole: they are going to do an expansion internationally. the stock is down. when you think of school candy you think of a lot of accessories and the like. i know my kids love their headphones. they have the miami heat and l.a. lakers on them. down 21%. obviously, giving this kind of cautionary forecast is not good news today. stuart: charles, would you buy it? charles: i have been looking at them for a month. i would not buy it. stuart: i will pick on illinois. government worker pensions bankrupting illinois. no surprise there. we have a state lawmaker says he has the answer to this.
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he is joining us now. welcome to the program. i want to make sure i have this right. you propose that all state workers will immediately shift into a 401(k) plan. all of them. now. that is your proposal; correct? >> that is right. it would freeze what they currently have earned and then going forward they would move into a 401(k) just like workers have done in the private sector there. stuart: we hear a lot about this from other states. everybody. everybody works for the state. >> right. that is correct. in illinois, as you know, our unfunded liability is in excess of $100 billion. we have to really make bold reforms. i told you earlier, just a few minutes ago, talking about the
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bold reforms that would have to happen in washington. we need to do that right here in washington. stuart: let me be honest, i do not think you have a prayer of seeing this happen. you will be opposed vigorously fight every union guy in your state. >> i have been sitting on the house committee for the past two years. there is no dow i have colleagues very much afraid. these pension systems will run dry. that is why this proposal is so important. stuart: we have seen it before. it will happen again. they want a bailout. >> they may be the case. i hope it does not happen. most of my colleagues, even the ones on the other side of the aisle, they recognize that would be terrible fiscal policy.
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we created this mess here in illinois. we have the ability to fix it. we should not punish other states because of our fiscal mismanagement. stuart: give us some odds on this. >> i know the constituents i talked to, they understand it. it is very simple. if they work in the private sector, most likely if they had a defined benefit plan, they have now been rolled over in a contribution plan. even my colleagues recognize that we as a government, we have to get out of the defined benefit system. we cannot fulfill these promises we have made for decades into the future. stuart: i just want to caution,
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if probably will not happen tomorrow. >> if i could just add one quick thing, there are a lot of proposals on the table, but this one goes so far this. it would save roughly $46 billion. it is something that has to happen. stuart: okay. we hear you. yes, sir. i for one am cheering you on. thank you very much, sir. appreciate it. >> thank you, stuart. stuart: if you did not know by now, it is friday. maybe a glass of wine. these wattles will set you back thousands of dollars. are they for drinking or investing? we will discuss it and show you next. the local
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♪ stuart: the paperback edition of monica crowley's new york times best-seller is out this week. a brand new post-election press. monica, let's get serious year because no smiling matter, you say in the book, you believe that president obama is deliberately hurting the economy. now, that is a very sharp edged charged. >> just look at the past week or so with a sequester. they put out a memo saying, make
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sure that the most painful cuts happen. cancelling the white house to work. they made sure that the high-profile, painful things that would reverberate among the public were happening. that is one small example of the bigger thing that we are experiencing in this country. arbor, four years ago, the president spoke out the fundamental transformation of the nation. we now have four years of its as to what he meant by that. he meant remaking america, taking it away from being a self-sufficient society based on individual freedom and free market economics and turning it into a european-style socialistic welfare state. that meant attacking the forming -- four main pillars of u.s. capitalism. industrial base to a health care sector, energy sector, and financial sector to say you say a tax been deliberately. >> direct. stuart: he said he knows we're going broken does not care. he wants to go broke. that is shar-peis. you have to go that far. >> consider the record.
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this of the trillion dollar deficits. $6 trillion in a record for years to the national of debt and he continues without any restraint whatsoever. this is all deliberate. when i hear people say he is incompetents, and he knows exactly what he's doing. this is about remaking the nation, remaking america into a more socialist model. stuart: i would love to come to you, but there is no time. that will work. one more thing to buy what you to add something to our interview and conversation in our last hour. we have just given egypt's $250 million. who will have a out and start this moral police. what's yet to that? >> a whole section in the book on obama's foreign-policy were itouch about this. alas weaker so a small headline that get no attention, the muslim brotherhood close the last operating synagogue
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in egypt. the jewish committee -- community will be nonexistent along with the christian. stuart: is headed down. >> correct. all of these minority religious groups will be driven from each of the way there being driven. stuart: if i were to find out -- >> giving them a quarter of a jillion dollars. stuart: a vow want to find out how i really feel about this i guess i'd better read the book. cheaper than the hardback? >> really cheap. stuart: thanks. want to take you to the big board because the market is coming back above the bed more. down to a six. game, number 35-point gain. i'm going to change the subject entirely. would you pay a couple of thousand dollars for a bottle of wine? today we are looking a vintage wine that is up for auction. joining the company, the head of
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wine sales in new york. first of all, you have a bottle of red wine sitting next to me. i am told that the six bottles of this wind, this vintage are going to be up for auction and that they will sell for between nine and $13,000 for the six. >> correct. stuart: usa -- tasted this stuff. >> i have. i did not mean ted downgraded quite like that. stuart: you think it is that special. >> absolutely. this is a great wine that is rare, small production. then make somewhere around 25,000 bottles per year giver take which is not a lot for civilian production. stuart: someone who can pay nine to $13 that would be $2,000 plus per bop, are the investing are they going to drink it? >> both. ultimately people will drink this. now or when they think in five years or ten years, approaching its peak.
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stuart: you don't buy six balls as an investment. and not going to sew it back at a higher price later on. >> a very liquid investment. stuart: very funny. have you used that line before? now, want to show our viewers what is called a large bottle. that is how many? >> for regular bottles of wine. stuart: it looks like champagne to me. >> absolutely. stuart: how much? 1600-2000 per lot. >> only 500 bucks for eight bottles worth. and that's cheap. >> but a bargain. the great story. it was initially ordered by the czar alexander the second that he was paranoid about the people around him so he ordered a clear glass bottle that he could see through. stuart: that is not one of those bottles. >> no, it's not. stuart: champagne does not age. >> it does, absolutely. the potential to age.
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stuart: i'm not going to put you to the test. i can't. however, i do want to ask you, are you absolutely confident that if i gave you add class of two different wines you could pick up the difference. >> i would like to think so. there are two different grapes. stuart: you could do it, definitely. >> absolutely. stuart: could you tell the vintage of the burgundy? >> not the year, but i could definitely tell the decade or how old is. stuart: could you tell the vineyard or the region? >> obviously the region, but the vineyard? >> that necessarily the region, but the difference between that growing and the primary, which is the classification. stuart: you could definitely tell the difference there. >> i would like to think so. stuart: have you ever been tripped up totally? >> always. stuart: we appreciate you being with us and good luck with the auction. let us know what you get. it is the return of the bachelor pad. this is not your average
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1-bedroom apartment, certainly not. we are talking 5000-8000 square feet homes that are selling for millions of dollars. all kinds of stores. the "wall street journal".
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♪ stuart: i would call it a solid number. it was the headline. 236,000 new jobs created. unplug the great, i'm going to call that the sub headline was
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down. the result of 130,000 people jumping out of the naval force. a mixed bag. gas prices down again. the national average down to 371. check the price. it bounced back up. the relaunch is set for miller lite bottles. announcing this morning that the new bottle will have broad shoulders and a narrow waist so it stands up better in bars. but john brennan is elected cna of the white house this morning. ♪ she's still the one for you -
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stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. ♪ stuart: american wealth is back. the market rally in the increase in home prices finally allowing americans to regain the $16 trillion worth of wealth that they lost during the great recession. any comment on that, american wealth back? >> that's what ben bernanke is trying to do. the question, is the engine of love back. your house goes down and then it comes back. the stock market goes up. people's real income are going up. that kind of stuff is where people ultimately feel, the wealth effect. that can be pleading. stuart: never real return to wealth. >> declined out of a crater. there is no wealth generation. stuart: the underlying engine.
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>> not of economic growth. still grinding. still -- you know, it's not zooming. stuart: and going to check up on one of your recent recommendations. what is the first one? >> i want to step build a few of them. tepic. exploded today. traders took profits. they're probably getting 41. a big, giant move. this week we have taken profits from 36-5056 another one where you have done well. >> done well. alerting to take profits. we're going to be. att, the patent, that is still shaky. i will lower rate. get hit a little bit yesterday. and just now, my favorite, absolute favorite stock is in a recession because the ceo sold a million dollars. stuart: that chart. >> the guys to make the liquid
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natural gas tough for everything. so -- stuart: running down the list. you did well. >> gigantic landslide just today. stuart: true religion. >> really nice, but we are still in it. and then the grand slam. up huge from holding it. stuart: act g. >> getting waxed a little bit on that one. stuart: you were warned. luxury homes designed for one maybe the latest trend. obviously singles. we are talking higher-end bachelor and bachelor pads with kendis jackson, the mansion reporter from the "wall street journal". the trend story. >> yes. stuart: you're telling me that wealthy embezzlers and bachelorettes, what is the correct term for a single female >> dissing the lady, bachelorette. stuart: is that it is? >> you want to be correct these days. stuart: the trend is toward
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bigger and more expensive. >> that's right. stuart: how big. >> in some cases what you would think of as a large family estate size town just for one person. i came across one example of a single guy who bought a place in the miami area six bedrooms, 6,000 square feet which he converted into a one bedroom for himself. stuart: how many thousands? >> 6,000. stuart: he made that into a bachelor pad. >> one giants -- stuart: i can't go along with that. that's the conversion. 6,000 per ft. how much? >> that place, i believe, sold for something around 10 million to my really big place. stuart: an explosion in a number of youngsters on marry in their 20's, 30's, '40's, or whenever it is. >> what is happening is people are waiting longer to get married and people are divorcing and a higher rate as well, so there's is the second singlehood . if by that time they have a lot of money again put together an amazing house just themselves.
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stuart: when i think of a bachelor pad at think of an apartment in new york city. >> like a beer cooler in the bear rug. stuart: i do not. >> resale value on these properties. this guy comes in and gets a six bedroom apartment which converts to a one-bedroom, does the value of that property then diminish because he now has this huge, armas one-bedroom? >> that's what i thought was the most interesting thing. the resale value for these has actually been fairly strong. in some cases these single design and to be so specific to their lifestyle, you do need to make some adjustments to resell them, but there are a lot of singles looking for these types of places. stuart: can i look on the screen for the second, what is that? obviously a bachelor pad. can you identify it? out the name of the honor, but where is that? >> that is, i believe, and the los angeles area.
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this is actually an interesting one. the two twins, and they both built bachelor pads in the ritz carlton downtown l.a., mirror images of each other, a different design styles. stuart: identical twins. >> i don't think they're identical. stuart: there they are. >> a building designed in jersey so that it was built and designed to rotate so that everyone of view of manhattan but yet to be single to live there. anything going on? entire buildings? >> developers are responding. they're adding more amenities than singles like. adding places to socialize and kind of thing of rooms. stuart: exactly. >> i have not seen one that is just for singles because there are so high-and they would not want to limit it that way, but they're writing things that would appeal stuart: this is all ammunition for the left. the left is going to look at this and say, see, those rich people can afford to pay more in taxes. 6,000 square feet for a bachelor pad. you know what you're doing.
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you may well be back next week. thank you very much. one california councilman thinks he has the answer to save the struggling postal service. no surprise, it's about more taxes. you will not believe what they're going after. ♪ investor. yeah, i'm a serious investor
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stuart: listen to this one. a city councilman in berkeley, california suggesting taxing e-mails could help fund the postal service. he brought up the idea in response to the city council's efforts to halt the saturday downtown post office. attacks on e-mail. you have to have a comment. >> i will be so broke. i am still one of those zero school mazu's says messages by e-mail on set text. of course they're looking for a higher tax number-one to solve the discrepancy. number two, that tax to cover the post office shortfall. it is ridiculous. stuart: i want to get to this one. >> it dovetails perfectly with the retraining of america. messages and a bottle. >> %. stuart: the company in san diego wants to install marijuana vending machines and 30 dispensaries. it would not be as easy as putting some cash and the machine and getting that we popping out. the lead box system would require medical marijuana patients to swipe a prepaid card and use their fingerprints to
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get the mets. the machine is armor coded, weighs 800 pounds to keep the thieves away. by the way, publicly traded. check the stock. it's up 3 percent today teeseven -- stuart: are you buying? >> it went up a thousand percent. one day a couple of months ago when all this stuff started getting approvals. qaeda know. listen. if you want to smoke it, smoke it. >> an interesting political angle. as the libertarian point of view. the justice department under eric holder, they are arguing that the state should not have the right. stuart: says they are. >> the federal government could ultimately trump all of that. >> california and colorado. stuart: at a time wonder what made the highlight reel. you will find that if you stay with us because it's next. ♪ friday night, buddy.
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