tv Varney Company FOX Business July 16, 2013 9:20am-11:01am EDT
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reid, said from the some of the unions. unless you have a fix it will shatter our health benefits, but destroy the 40-hour work week that is the backbone of the american middle class. stuart: take notice, when the unions turn their backs on you, you know the tide is changing. clearly obamacare is unravelling at a pace that must alarm the president and democrats. in our next hour, charles has startling numbers how obamacare is affecting hiring and profits. it's not good. now this, reaction to the george zimmerman acquittal. a violent protest in los angeles, and the lapd dechairing it an unlawful assembly and a dozen people arrested. and the judge joins us with more on the doj push for new federal charges again zimmerman. the question, is eric holder undermining the rule of law. next, we put the focus on your
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invincible as a way to describe boeing, despite high profile problems with the dreamliner. the stock is up this year. teflon boeing in just a couple of minutes, but right now we are what, a minute from the opening bell. in chicago, tres knippa is standing by and i'm reading rex, a economist of some note saying in the latest quarter, april through june, the economy may have contracted. what do you make of that? >> well, there are a lot of things that are providing a significant head way to gdp growth. the story in europe continues to get worse not better, but we're not told about that because everybody is trying to get angela merkel he elected in the elections coming up. and the story in china continues to be a shell game and maybe not the economic miracle we thought. and domestically i think that obamacare gets in the way of gdp
growth and secondly i'll go out on a limb and say that the republicans are greetly blowing the immigration story. if somebody is willing to do more work for less money we should be sending them a bus ticket not sending them home. you grow gdp by increasing productivity and bring them here. stuart: wait a second, that roar behind you is the crowd looking at the stock market opening higher. they love this. they love it. because they think ben's going to keep on printing, and that's what's going on here, tres, we'll get back to you later. last word? >> of course he's going to keep printing, stuart, we know that. stuart: you've said it many times and we appreciate that. thanks. the dow industrials are opening close to 15,500 as we speak. yesterday's all new high was 15,484. here we go, 15,490 right now. right out of the box we've got
apple talking about a new technology that would allow to skip over tv ads. i don't know, nicole, this sounds an awful lot like the good old-fashioned dvr to me. >> it's down 1/3 of 1%. what's interesting about the concept. apple is almost willing to foot the bill of the ads costs that would be lost saying, listen, we'll pay you not to put ads. basically what they're saying, but there's going to be stores and business that is we know. we don't need your money. stuart: it's not going over like a blockbuster, apple's been stuck there at 425. two names that everybody knows, goldman sachs. the profits have doubled. today, nearly 2 billion dollars in 13 weeks, that's not bad. it's a big beat and the stock is dead flat and unchanged at 163. then we have coca-cola, they blame a slow economy and it says it sold less in north america.
i don't know whether that's good news or bad for north america, but the stock is down in the early going. >> coke is a dow stock so that's dragging the dow down a little bit. here is another dow stock, johnson & johnson raised its outlook for the the year and i'm guessing that the stock is up, nicole? >> new high. 91.31. a new high for johnson & johnson, strong sales of prescription drugs and the medical devices that set off the anemic growth of the consumer products, but it's the drugs, the drugs and the medical devices that saved the day. >> oh, it's the drugs and the medical devices, well said, nicole, nice inflection of the voice there. and the names, i want to bring in market watcher shah gilani. i want to bring in yahoo! this is the one year anniversary of mar marissa mayer at the helm. it's up 70%. do you like it?
>> i think it's fairly fully priced and maybe high at 24 because they had the alibaba component. if that goes public. there have been rumors overnight that goldman and credit suisse and that may give a pop. she's done a terrific pr job for the stock, but company-wise i'm not impressed. they've made 17 acquisitions and none are really making money and the greater yahoo! it's going to be lengthsy and their ad sales are slipping. >> i'm laughing because yahoo! is one of the stocks we put on death watch and we played the organ movie and said woch out, this thing is a dog. along comes marissa mayer. >> it reminds me of aol. >> boeing, we call it teflon boeing, that's up 35% this
calendar year, do you like it? >> i think it's fully priced. a lot are fully priced. boeing has the black swan out there. i don't know if it's the dreamliner or the problems we saw in heathrow manifesting throughout the fleet or something else, but-- >> the doubt in your mind about the technical viability of the dreamliner, you don't know for sure whether it's going to be a real problem and you're staying clear of the thing? >> i recommended that we're shorted right in here. we're going to have a 10% loss and walk away. but i think there's probably more to come out of the story. >> he well, they say it's not a battery. it may be the transmitter that created this fire as it was standing on the tarmac in london. >> those are so integrated and complex that the battery may have had additional problems pushing am perrage into the
honeywell components. stuart: you're standing by your short. you think it's going down. >> yes. stuart: and goldman sachs, huge profits in three months. >> again, fully priced here. a good half of their profitability came from trading. so they're in the trading game and never left the trading game and they're not a bank, they're a bank holding company which became part of the crisis. you word the word investment bank, a lot of wells fargo, jp morning, othe morn have trading, a goldman is a powerhouse when it comes to trading. stuart: and yahoo!-- do you own them. >> no, i have fallen in love with microsoft. stuart: wait, drop the brake, we
want to talk about this. you like them. >> i've liked them as long as you liked them. i wasn't a big fan and didn't think they were going anywhere, but now that i see, yes, i like it. stuart: no need to disclose, everybody knows i own this thing. do you? >> i don't, i missed the boat. stuart: shah gilani, thank you very much indeed, sir. the longer you wait to fill up that gas tank, the more you're going to pay. the spike in gas prices is in place. here it is, 3.63 is the national average for regular. california the only member of the lower 48 in the $4 club and the average in california for regular is 4.01. a moment ago we were quoting rex nutting's research on the possibility of the economy contracting in the second quarter. would you-- a contraction would that surprise a harvard economics professor? here is jeffrey frankel, sir, professor, i thought we were going to get -- we were going to get, 2, 2 1/2% growth in the
april through june quarter and now we hear contraction. what do you make of that? >> i'd be surprised if we had contraction in the second quarter, but the economy appears to have slowed. the first quarter was 1.8%, which is not good enough and the last quarter of last year was also disappointing and a slowdown relative to the preceding year. i see no reason why it's happening in the second quarter will be negative. but the impression that the economy is not as strong as we like-- >> because of sequester cuts in government spending and tax increases that took effect january 1st. is that what's going on here? >> i think it is the expiration of the payroll tax holiday in january and a quest sequester o spending. if you look at gdp, who's expanding and who is contracting. the government is contracting and we're losing net exports.
to produce stuff and sell it, somebody has to buy it, either the consumer for consumption. the government through government spending on goods and services or foreigners and the last two have been contracting. in that sense it's surprising we have any growth at all. >> where are we going here? you've listed the factors, why we've got pretty much a dead flat economy, where are we going in the future? any source of real growth for america? >> well, i mean, we could take some encouragement from the fact that this performance is better than our trading partners. all the major industrialized countries are either in contraction or countries back in recession or growing slowly more than we are. i suppose that's why net exports aren't doing well. the federal reserve seems to be a little more optimistic than some of us. and they seem to think that maybe growth will go back above
2%. stuart: you know, we're not used to this. we're use today harvard economics professors talking about redistribution not growth. so let me ask you this, if we went out there and exploited america's energy reserve, the stuff that's hours and we went after it and pumped for oil and fracked for gas and tax reform, lower rates, fewer deduction, you could get we to 5% growth? >> 5% growth as a steady thing? no, i don't think so. the fracking revolution is already happening and it's a positive. it's a bright spot in the overall picture. i don't think we have to like, you know, subsidize it or throw away all environmental, you know, caution at all. i think just proceeding with what we've got and safeguards against some ecologically disasters. we're doing fine and the price of natural gas has gone down enough that i don't think that, you know, that's putting a limit
on it. i don't think any further government encouragement would be warranted. on tax reform, well designed tax reform and solving the long-term fiscal problem, not the short-term fiscal problem there isn't any. the long-term fiscal problems and entitlement problems, i think that would given couragement to in the long-term. >> yeah, that's what we're waiting for, growth, give us growth, professor. why aren't there more like you in harvard. professor jeffrey frankel, harvard. thank you for joining us, sir, thank you. >> my pleasure. >> it's another day, and we have another consequence of obamacare, and this time it doesn't even have to do with getting medical treatment. no, no, you won't believe how much the obama administration is spending on advertising the new law and it's your money they're using. that will be new at 10:00 at the top of the coming lauerment to the big board down 11 points i thought we were going up in the early going. it's pretty much flat. down 10, 15,472.
some say even though it's early in his second term, president obama's closer and closer to becoming a lame duck. we're told even young voters are abandoning him. i don't believe that, but we are on the story. we'll deal with it next. ♪ (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody.
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128990. i have two stocks for you. netflix, the share price hitting a 52 week high. netflix at 261. is the loser of the day coca-cola shares dropping big, weighing on the dow, people not drinking as much soda in north america and that stock is down 3%. now according to a new poll president obama won 61% of the youth vote in 2012, got it. that number has dropped a lot since then. 46% of young people approved of his job performance as of now. political prospects, the editor thereof, joins us in new york. 61-48%. why is the president losing support among young? >> millennial were told a bill of goods, told the be the most transparent administration ever were, what a joke, they told he wouud bring back the economy, reduce the debt. none of that has happened. the debt is skyrocketing, no
jobs, 16.1% unemployment among people in my generation, the height of any group since world war ii. connell: do young people really care first and foremost about economic financial issues, didn't they vote for president obama in overwhelming numbers? >> they did but when they're out a college classroom and living in their parents' basement trying to find a job the realization sets in that they don't have a job and this man president obama promised to get them that job. they care about sociallissues but there is a libertarian bend to my generation. they care about the social issues but also care about free-market, care about transparency. we saw them coalesce around someone like ron paul. there is a libertarian bench and we are seeing that now that there are no jobs that they were promised. don: has the spying issue gone to young people? >> absolutely. you can see the turn of the disapproval of obama came around the scandal, the irs scandal, the nsa scandal, they rallied around ed snowden, many in my generation call him a hero.
not mean that many do. i definitely think that was a definitive turning point in their disapproval of president obama. stuart: we will sit find out of senator harry reid presses the button on the nuclear option, in gauging senate rules to make sure the president's appointees serve on the labor relations board and the consumer financial protection board. how would it go down among young people if he plays the nuclear option? >> i think they will like this change. you brought up in the break they want president obama, gave him the right to lead and want him to lead and went his appointees to be there. this reeks of hypocrisy and i tell my generation can realize that considering democrats have 30 cloture votes when president bush was in power sell but to many of his nominees and dollars that screaming about this rule and they themselves used in a legitimate fashion. stuart: election the 15 months away. do you think the democrats will world onto a significant
majority of the young people of the vote? >> interesting question. republicans have a real opportunity here but the trouble with democrats does not equal pleasure with republicans. republicans need to solicit their vote and do it in a likable fashion. stuart: political prospects, thanks for being with us in new york today. my take on the sequester. in the efficient government spending and helping our veterans, up next.
stuart: another winner for you called expedia. the online travel company upgrades it and up goes the spot 1.4%. a new judge, reality show character collecting disability, rustling people to the ground on tv, an update on the story, a small victory. judge andrew napolitano here with the latest moves by eric holder to bring charges against george zimmerman. why is he going after the irs as
aggressively? the high cost of raising children causing the birth rate to come down? all that and more in the next hour. four months into the sequester cuts the sky has not fallen. the dire warnings did not pan out. the wasteful spending continues. i bring a small example. my take a veterans affairs department and their call centers. two of them were set up in october in 2011. in their first year they average 2.5 calls, per operator day. contractor projected a big increase in calling volume. and a 24-7 operation. the call in rates dropped to 4.8, and that is not an efficient operation. and this is not a lot of money.
it is typical of how government works. politics rules, not efficiency. and the problem of veterans coming and from iraq and afghanistan and finding no work, politicians demanded action. for a money at it, do something. and jets of being taken care of. very few are being held is not important politically. in politics, you are spending someone else's money and waste is irrelevant. think of it. how could anyone cut the program like this? any politician who suggested dropping these call centers would be demigod to death. and this well-intentioned but while the inefficient spending in example of how america is going down the wrong track. this is an all government all-time presidency and is not working. we have not returned to robust
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it is an ad campaign. and the justice department is advertising for dirt on george zimmerman. the judge is here on that. the cost of raising children going double what. is that why the birth rate is down? the professor with the numbers is here? a rare victory in the pension wars, the vigorous and active reality show,'s disability payments gone. our 2 begins now. there is the air raid siren, the nuclear showdown about to commence on capitol hill. senator reid expected to change a rule that would allow president obama's nominees to go through with a 51 vote. this is expected to happen in the next couple of hours, that could be a problem before the deadline. if there are any fireworks you will see them right here. check the big board, pretty much dead flat down 11 points, we do
have a report from wrecks and nothing that the economy may be shrinking in the second quarter of the year, april through june. charles is with us, the market's going up despite the shrinkage. you know what i am going to say. that is because ben bernanke will keep on printings of the stock market keeps going up. charles: how big is the economy? $14 trillion? $15 trillion? there are a lot of companies that can make profits and a $15 trillion economy and those of the company's people should want to be co owner of war part-owner of. there is such emotion about i think we talk about the market liked the movie final destination. seems like every day we are waiting for climactic crash and credits to come up, that is not the way it wursts, up find great companies and don't be deterred by the naysayers. don: did you hear the judge from when i suggested a weak economy would make the -- keep printing? judge napolitano: keeps getting
weaker as the value of the dollar goes down. don: the stock market is going up. >> they don't care of their money is for real productivity or printed dollars. stuart: netflix of 52 week high. tell me about it. >> as netflix continues to be up all the shows it has for subscribers and the like the stock is 2%, if a new high for netflix. orange is the new black, doing very well, you have barkley's and everybody jumping on board and loving it. stuart: it is known $2.60 in change. thank you very much. attorney general eric holder air aggressively pursuing a civil case against george zimmerman even asking civil-rights groups for any information on george zimmerman -- sean powered
zimmerman they can provide. judge andrew napolitano is here. judge napolitano: it would be a criminal case. in order for the justice department to pursue a criminal case against george zimmerman it would have to reject the report of its own fbi. fbi agents investigated and interviews, looking at records, documents, going back to his youth, his days as a child as well as people who knew him, live with him and worked with him today and concluded he is not a racist and this was not a racist event. the jury made the same conclusion. stuart: they said not guilty. charles: racism played no part in the trial in florida, this wasn't a trial about race or racism and that would be the distinction, the reason he was
prosecuted. judge napolitano: the politics of race is large. charles: as far as the jury is concerned there was not to take race into account. judge napolitano: they are told the judge a case on the merits. i don't think you can say race had nothing to do with it. stuart: can you bring race into it? judge napolitano: here's why the federal government must bring it into a. murder is not a federal crime unless animated by race. without getting into the reasons for that, the fourteenth amendment and some unique legislation and case law, in order for the federal government to prosecute him it would have to show he killed trayvon martin because he was a different race. stuart: they are advertising for derek on george zimmerman. i maintain that undermines the rule of law because the law has spoken in this case. judge napolitano: -- charles: i didn't watch one second of the file.
didn't want to watch it but from what i understand this particular trial was not based on race. in other words race never came up, it was never a part of the charge. judge napolitano: the reason there was a trial is because of the different raises. if they both had been black or white we never would have heard. charles: maybe that is the federal government's are given. because there is a difference in race maybe they should try it based on race. you just echo what eric holder is thinking. judge napolitano: what i am saying is they first have to convince themselves they can prove this case, then they have to convince a grand jury he pulled the trigger not in fear of his life but because he hated black people. no evidence to support that came from the trial. charles: if they thought zimmerman profiled trayvon martin because he was black but later on got into a scuffle and
he defended his life because he feared for his life are those things connected? can someone be, quote, guilty of profiling but still be innocent of self-defense? judge napolitano: yes. it can be two separate events under the law, even if zimmermann inappropriately commenced the contract which he probably did, the fact that he was in fear of his life justified is using of deadly force as trayvon martin. stuart: attention to the zimmerman case, the doj is pursuing as merriman case the treasury department's inspector general says the irs did indeed target political candidates and donors even handing out audits in two cases. eric holder has declined to prosecute those cases so here you have the doj pursuing mr. zimmerman. you think this is legit care about but pursuing zimmerman but
not pursuing the politicization of the irs. judge napolitano: the late great political, enter for a vote would new york times william safire, a friend of our boss used to refer to the justice department as the department of political justice because they were frequently doing what they think their supporters want them to do and that is that very dangerous basis upon which to decide who to prosecute. the same justice department that did not prosecute black panthers who with clubs and bats in their hands were intimidating white voters from voting in philadelphia in 2010. if that isn't violating the law based on racial hatred i don't know what is. charles: how do we get them to do these things? how does the public get them to be even-handed and fair because this irs thing, a lot of things are starting to recede to the background extraordinarily important to every american, the economy, irs. judge napolitano: if you want to wade into the irish congress will grant somebody immunity. it has to pick a person who knows most about this and grant immunity and immunity can be in
voluntarily. once it is granted the recipients of it does not have a fifth amendment right any longer. charles: no one can force eric holder's hand. judge napolitano: except the president. he can be embarrassed into doing something if an immunized insider reveals what truly happened. they have immunity. stuart: the united states of america. judge napolitano: and i don't care. cares about my great grandchild. stuart: i will get taxed by my great wave. judge napolitano: a deeply loved her. stuart: coca-cola big loser, one reason we are down today because coke is the dow's stock. nicole: coca-cola down 2.7%, this is a dow component, negative dow points worth noting, they did see sales volume grow 1% so that overall
shipping will come. now there is a feeling amazon is a reliable retailer they know when it is going to come and when you order will come in and their credit cards are safe and with these new features kindle and everything is working to their benefit. stuart: that is propelling amazon to be a huge behemoths even though it reinvest its profit into the company. that is what it does. and wall street loves it. blackberry. we put them on death watch. it went straight up and they came out with a new guy in charge and down and has come $9 as we speak. and we put it back and deathwatch? >> you took off? i don't know what you were thinking. you should have left it there. i would say blackberry is not doing so hot. it will be a real feat if they come back. charles: could they get a premium? stuart: you will think will be taken under that and you agree with that.
put them back on deathwatch. apple, they have this i watch. >> still not official but everyone says they are working on it. a lot of companies are getting this technology. google, amazon is rumored to do a little bit so it is definitely a big deal that if apple gets in there suddenly your phone, ipad, your watch and they phone your entire life, everything you are wearing becomes part of that so is a big deal. stuart: is microsoft getting into wearable? >> watches and stuff like google glass. stuart: microsoft is doing that? >> everyone is exploring this, nothing is official, nothing announced yet. pretty much every tech company looking into it to see if it is a viable way to make money. stuart: amazon solid above 300, blackberry put it on deathwatch, apple not sure about the watch. >> will do ok but hard to say.
stuart: mike woods of you just love it, don't you? i own it. charles: browbeating witness. stuart: corrupting the jury. thanks very much. surprise surprise the cost of health care going up mostly because of obamacare. after the break startling numbers that could put another nail in the coffin of the president's signature law and queue up nancy pelosi. >> we have to pass the bill so that you confined out what is in it. away from the fog of mccaw trustee.
in the london biggest winner of the s&p is health care. look at it. straight up, up 4% on health care. would like to know the reason for it that. google coming off of an all-time high yesterday, google down $31. not much of a pull back for a stock and $900 a share. some shocking news on obamacare from the new york federal reserve. near the 87% of all employers
surveyed say their health care costs would increase significantly in the event of obamacare. you got these numbers. what do you have? charles: empire state survey came out yesterday. these are actual businesspeople saying 87%, health care will increase. 50% up substantially. here's the scary point, eleven% plan to outsource as a consequence next year. outsource -- stuart: to china. charles: wherever there is no health care restriction. 6.5% plan to file people or refrain from hiring. 5.4% will ship full time to part time. you add that up and that is 20%,
manufacturing businesses. stuart: obamacare raises the cost of health care and employers saying directly they will outsource, they will fire, they will change the work's structure because of obamacare. that is a very big deal. charles: this is just now. imagine as it rolls on. this is a huge thing, empire state survey beneath the surface and the biggest news from the whole thing. stuart: that was buried, paid attention to the empire state manufacturing. charles: a supplemental survey as used to roll down. it is scary stuff and you can't find a business owner that would refuse this. stuart: is this what you read until 1:00 in the morning? i get e-mails from this guy at 2:00 a.m. and he is still up. here's another startling obamacare number, $1 billion,
that is how much will be spent on ads for obamacare, half of that already spends and the rest in a few months and all that advertising and the media can't put the pieces together. the media research center, want to talk about the privacy issue with obamacare. is the media making of a link between the personal information to the irs and the intrusions of obamacare? >> not even slightly. three years since the data grab for obamacare was supposed to save $81 billion a year and now they end up costing money, not saving as a dime. we are in the midst of a huge data scandal in the nsa, data everywhere. the meow have not connected the dots about that or warned us about the dangers of the electronic medical records at
all. stuart: two items. i have to reporttto the irs where i am getting my health insurance from and how much i am paying. got to do that to the irs. secondly i have got to get my personal medical history to my doctor who then put on line. it goes electronic. my doctor is being encouraged to do just that. there you have obamacare with the possibility to get hold of my personal information and you are saying the establishment media is not making that connection or raising a fuss. >> abc, cbs and nbc are skipping that entirely and data breaches happen all the time. whether it is farrah fawcett britney spears or just this last weekend's, kim kardashian had
data breach. what happens is the doctor, the nurse, the mad tax, the receptionist, anyone who accesses these around the country, celebrities are being targeted. according to one study, 94% of the firms have a breaches, talking about every single one. 500 major data breaches for twenty-one million records, that is a big deal. stuart: has any establishment media outlets raise the possibility the irs would dip into the personal records of politically active people for use politically when they are not supposed to. watch out, here is the danger. >> none that i have seen. the reality here is there is very little talk at all about the electronic data records, libertarian voices out there that are focused on it.
the media are glossing over it. electronic data in other contexts are dangerous. it was nbc that had a great line talking about dangers of storing things on your own computer. the one way to protect yourself from -- not have this data on this computer. the government is not paying attention. we have a dead flat market down three points on the dow industrials right now, close to 15-5 a few minutes ago. we are now 15480. cost of raising a child going up hundreds of thousands of dollars. is that causing the birth rate to go down? the birth rate is going down. we will deal with it next.
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>> his stock is up 4%. and in the same sort of business, a surprise topic, and admissions that ultimately could be affected related type things so you are seeing health care is up 4%. stuart: as obamacare comes to pieces, health care companies like tennis go -- i am sure it is the relationship of sorts. thank you very much. charles, you have got a casino to play for us. charles: there's a big takeover today called shufflemaster and bally stock is up which means the street likes the deal. multimedia is in the same space. much better company in terms of growth, they beat the street by 39%, 43%, 5%, 63%, earnings estimates for this fiscal year
and next fiscal year going through the roof, the company rose 5%, it is growing 25% vs. 15% for shuffle master. of 4 masters told too she. of anything happened they could get a 40% premium. even as it is going now i love the way the stock looks. stuart: am g a m making gaming machines. they makes slot machines, the equipment you gamble with. charles: the same stock. they're not as into the same specific -- don't think they did the shuffle machines, shuffle master, they do a lot of gaming stuff you see in any major casino. stuart: the birthrate has hit a new low, the cost of raising children continues to go straight up. here are the numbers, the average cost reached $235,000 and that is holy birth through 17. that is the big number. for more on this, the university
of massachusetts. professor, this is a very big number. do you think it is the primary reason why the birth rate has gone down? >> certainly there are a lot of contributions to the birth rate and while the number has risen dramatically over the past 50 years the birthrate hasn't shrunk as dramatically. one is the other contribution is average increase in the age of marriage, and as more and more jobs require higher and higher levels of education, people will marry later and have children later which decreases the birth rate. stuart: but money is a factor in having children and how many children you have. is it a primary factor do you think? >> money is certainly an important factor, no doubt about that. decades there has been a link between the birth rate and the level of the economy.
when times are bad people have fewer children. when times are good people have more. stuart: $235,000 from birth to 17, that does not take you through college, just high school basically. what is the biggest component of that enormous number? >> there are several components, cost of food, shelter and clothing. one of the things that is interesting is individuals and different amounts of money on children based on their income so that individuals who are high income families who are high incomes and about twice as much as families who are low income and that difference is comprised primarily of things like discretionary spending on things like education so there are not whole lot of low-income families that can afford tuition. stuart: you are assuming people
actually do go in for these fashionable things, the best pair of sneakers you can get or car at the age of 16, making the assumption that parents are prepared to put this out, put out this money and that they should. are they? >> i don't know if anyone is making the assumption they should. these data are based on an annual study that the usda does and a survey people asking how much they do spend on their children so the cost is the actual spending and not what people choose not to spend. it is a reflection what they're doing. stuart: by the way i could see of fiddling with that your peace. you wear an earpiece often, you start hearing voices. it is our real problem. thank you very much for joining us. we appreciate you being here, thank you. >> you are very welcome.
stuart: a rare victory over the unions, pensions and disability abuse. after the break we bring you the man who brought justice to a new jersey system, a cop who was gaming the system. at a dry cleaner, we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello?
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why wait? >> interesting breaking news from the senate floor. sounds like reid is backing off the nuclear optionment senator reid said he thinks, quote, we can find a way forward that is good for everybody. the first votes scheduled in the next hour. remember, senator reid was in the position of pushing the nuclear button. that would be the president's nominees for the national labor relations board and for the consumer protection board would be accepted on a 51 vote in the senate, not the 60 or 67 that a filibuster requires to become. maybe they are backing away from the nuclear option. sure looks like it. big deal. take a look, please, at this picture. governor christie, a photo on facebook visiting cape cod over the week. he's the one on the left of your
screen looking like he's losing weight after the lap band surgery, perhaps getting into presidential form. looking good. you remember joe? he is a disabled new jersey cop turned reality star. he was claiming disability while he was seen tackling men on his show. well, he's taken a hard hit as pension was pulled. we have the reporter who first brought us the story. mark, welcome to the show. >> glad to be here. >> let's get this straight. the guy claims disability, goes on a reality tv show, former cop, wrestles a guy to the ground, looks fit, hearty, gets a pension, and now you uncovered the story, and his pension stopped. simp as that? >> well, nothing is always that simple as you well know. >> i knew it.
>> the immediate news is here he was declaredded fit to go back to work, stopped the pension immediately. he was getting nearly $70,000 a year tax free. >> that's been pulled? >> that's been pull. >> all right. >> well, that's the -- i don't know if the checks stopped yet, you that's the action taken yesterday. >> now what? >> well, what happens next will be interesting. he can appeal, and depending on how the appeal goes, number one, his old police department could be forced to hire him back, and when he left the department, he was under indictment with suspicious circumstances, or, depending on how a judge or court rules, the state would be back on the hook for his disability pension even though they've deemed him not to be disabled. >> $70,000 a year tax free? >> tax free. >> federal and state tax free? >> to the best of my knowledge. >> takes home five thousand
bucks a month. that could be changed if he appeals? >> there's going to be all sorts -- bound to go to court. in many cases, administrative law judges in new jersey will rule in favor of somebody like that. it's hard to say. it goes on a case by case by says. >> surely not in this case. how would you possibly rule he was, indeed, disabled when he's doing that? >> we're talking about new jersey hire, too. be honest. >> my home state, by the way. what was he doing? what -- on what basis did he claim disability in the first place? physical disability? what? >> the disability was on two occasions he hurt his leg, or he claims he hurt his leg whim while making arrest. >> you can't wrestle guys to the ground and claim you're disabled. >> it's not smart. >> it's not. is this common? >> i don't know. i mean, sometimes it's like we catch the dumb ones, the ones
that would do something like that. >> and the smart guys get away with it. >> admittedly, they know how to game the person. every person there knows how to game the system, ratchet up your retirement hours, stay on disability. everyone knows the game. >> that's true. every once in awhile they get caught. >> the game has not changed? >> no, this doesn't change the game. it means somebody was caught. that might be a deterrent for those in the future, but understand in new jersey you got an 80 billion dollar system with no one looking at fraud. >> thank you for joining us, mark, come back, and tell us how it ultimately transpires. >> one last thing, newjerseywatchdog.org, that's you. >> yes. >> thank you, >> my pleasure. >> sounds crazy spending tens of thousands of dollars on an
in any other state that recognize that law. greek workers are staging an antiausterity strike against the government's plans to place 25,000 workers in a special labor reserve which could be layoffs. the spike is affecting flights into and out of the country again. mcdonald's announced they are bringing going foe vietnam next year. the son-in-law of the prime minister in vietnam will run the operation. spending thousands of dollars to update an apartment you don't even i don't know. why would you do it? some people do. we'll deal with it next.
>> check the share price of goldman sachs, profit nearly doubled, making close on 2 billion in the last quarter, 13 qeeks, an upgrade, down a half point. citigroup upgraded. they are up on that news. now here's charles. he's going to say he says he'll make money for us in china. go. >> china runs the equivalent of twitter in china, a company, and an 18% stake, and market cap for the company is 3.8 billion. that's a huge, huge bode of confidence suggesting the stock is worth 1 00% more than it's trading now.
transitioning to a mobile centric basis. it's been phenomenal. >> this is china's twitter? >> right. >> publicly traded? there's a market value put on it? >> china owns it. baba paid in 18%, giving him 3.3 million, an 18% partner in this. there was a big deal overnight with the acquisition of 2 billion in acquisition. maybe he buys the whole thing. we'll see. certainly suggesting the stock is worth a hundred percent more now. >> twitter is not public in the united states. >> right. >> but the chinese version is? >> right. >> you can buy into it as an ordinary investor? >> absolutely. >> it's a good idea? >> absolutely. >> tell us how it works. >> i will. >> here's a question, upgrading your rental. that's what some people are doing in their luxury apartments spending tens of thousands of dollars on a temporary rental. they don't own it, but live there and prepared to put money into it. rapid realty ceo is joining us
on the very subject. i introduced to you what we're talking about luxury apartments. people with lots of money puts in tens of thousands into something they don't own. you say if you come down the food chain, people do it for, what, a thousand dollar a month armet? >> on all levels. a thousand dollar a month apartment, they spent 6,000 renovating it. >> why? >> quality of life. they spend $10,000 on a dress used for one day. >> why not buy the place and put money into what is yours and you value -- you benefit from the increase in value? >> i think there's so much uncertainty in the real estate economy right now that, for them, it's not worth it, just a standard of living. >> you see this happening often? >> all the time. >> all the time? >> all the time. it drives landlords crazy. >> why? >> because sometimes renovations exceed the security deposit left and the owner's left to undo. >> wait a minute. are we talking about putting in a partition in the bedroom so you got two bedrooms, that enhances the value of the
apartment, but it also, you sublet the second bedroom, is that what you talk about? that's not a capital improvement that, you know, like a new bathroom or something. >> sure. if goes beyond that. starts with the sub division of the wall and into wall papers and moldings, and once you're in it, in the thick of things, they keep going. >> what do you say? >> new york centric. only in new york where people spend a million dollars for a bedroom can someone conceivably rent and shell out money for this. >> i think in new york, there are advantages in other states as well. we have stabilization laws where the landlord renews the lease. >> those are not the people doing this stuff. these are people with a lot of money, coming in, renting at any costs, and wanting it to feel good to them. they don't care. they don't care. they have that much cash. >> that's important, though. if you have rent stabilization laws, cannot be kicked out or rent raised, it does make sense to improve the property. >> those people are not as wealthy, generally.
>> right. >> it's the wealthy people, i think. tell me if i'm wrong. >> the same person who spends $25,000 on a weekend get away, you know. >> they have to impress. >> that's right. the varney crowd. >> no, no, i knew you were going to say that. would you do it? if you rented an apartment, would you do it? >> i don't allow it in the buildings i own, but i would if i had a good deal on a rental. >> charles? >> paint it, that's it. >> i'm with you. >> thank you. >> forbes lists the world's most valuable sports teams. the nfl, major league baseball do not make the top three. find out which sports generate the most money in a moment. (announcer) at 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.
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>> coming up on lou dobbs at seven eastern, janet's resignation leaving a gaping hole in the obama cabinet. former homeland security secretary, governor tom ridge on what it means for border security and for the country tonight at seven eastern. ♪ and now this. forbes just announcing the world's most valuable sports team, get this, the top three are soccer teams.
here they are. royale madrid at 3.3 million -- billion, billion, thank you, glad you're paying attention. soccer no le manchester united, number two, at 3.1 billion. barcelona coming in at number three at 3 #-- sorry, at 2.6 billion dollars. what was number four? yes, an american team, baseball team, the yankees, 2.3 billion, okay? don't say anything. >> i was going to say 3 #.3 million, you'd buy the team. [laughter] >> madrid for 3.3? yes, sir, i would. it's all star week for major league baseball, and harvey starting, but not even the local fans recognize him. here's harvey from jimmy fallon's show last night. >> since i was little, yep, mets fan all the way. >> who is your favorite player? >> oh, dude, harvey, man.
>> serious? if he was here, what advice? >> just keep being awesome. i'm pretty sure that's it. >> we appreciate it. >> yeah, man, thanks a lot. >> absolutely. >> wait -- [laughter] >> ha-ha, that was good, you know? >> that was good. i wouldn't have recognized him either. i think -- this maybe one player i would recognize, that's sad. although, i've never been a huge baseball fan. >> when you walk down the street in new york city, a lot of people recognize you. >> tourists do. >> yeah. >> from the heartland, new yorkers don't, which might be good. >> it's always annoyed me when i walk the street with you, nobody knows me. they all know charles payne, and it really annoys me. >> mentioning the british guy. >> well, if i'm standing there.
>> oh, let me tell you, costco, in there the other day, and a couple comes by, all excited, we talk, and they say varney shops here? no, the prices are too high. they fell on the floor laughing. >> good job, charles. watch out president obama, even the left is coming after you. wages dropping nearly 3% since he took office. we'll deal with that next. any last requests mr. baldwin? you mind grabbing my phone and opening the capital one purchase eraser? i need to redeem some venture miles before my demise. okay. it's easy to erase any recent travel expense i want. just pick that flight right there. mmm hmmm. give it a few taps, and...it's taken care of. this is pretty easy, and i see it works on hotels too. you bet. now if you like that, press the red buon on top. ♪ how did he not see that coming? what's in your wallet?
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$10.511421, after inflation wages are down. jared bernstein runs this group. he was part of the white house. stuart: vice president biden's chief economist. charles: he certainly had a lot to do with selling it. any sort of left group stepped out of bounds to complain about this stuff, they were beaten down tremendously. if this resonates at all, it will be interesting to see how bad they are beaten down. people have complained before. all people who are extreme left.
they go out and say they do not conclude the president is. stuart: you know what they want, they want tax the rest. they never learned the lesson. if you want to raise everybody's boat, you encourage private enterprise. you encourage growth in the entire economy. i will show you wages that really do go up. charles: it is amazing. stuart: they will never learn. charles: all those enlightened thinkers. [ laughter ] stuart: we will stop it right there. charles, thank you very much. dagen, it is yours. dagen: okay. connell and i do not care.
we do care about this. harry reid nuclear auction. threatening to try to break republicans bb pulling up the filibuster. bernanke in question. elon musk, the innovator, he now wants you to get from los angeles to new york and 45 minutes. how in the heck is that going to happen? and the brutal heat wave. little relief in sight. all that and much coming up on this hour of markets now. ♪ connell: markets now. nuclear options, earnings report and baseball this hour.