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tv   Varney Company  FOX Business  July 29, 2013 9:20am-11:01am EDT

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♪ imus in the morning ♪ >> income inequality. class warfare. the decline of the middle class. good monday morning, everyone. oh, it's high summer. the beach is calling, but listen to this, the news of the day. four out of five adults will be in or close to poverty, jobless or welfare or low income. that's the decline of the middle class, it's happening. the president still says tax the
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rich because income inequality. that's what's tearing us apart. now, that's class warfare. and fast good workers will go on strike for a $15 per hour living wage. that's how the left combat thes income inequality and "varney & company" is about to begin. we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 freerades when you open an account.
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>> hi, everybody, did you see this? and they headed to the beach. the pope talking about bringing the messages to the masses and getting young people involved. they talked about the dignity of work and earning your own bread talking directly to young people. interesting. look at this, please, insecurity growing, four out of five adults will struggle with poverty, be joblessness or reliance on welfare in their lifetimes. the president is talking more taxing the rich and income
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inequality and the answer to the growing insecurity. with that as a news back drop. we're getting the latest reading on growth in the second quarter and right now the prediction is for real weakness, 1% growth april through june, hopeless. and friday is a big july jobs report. only 175,000 jobs expected. on income inequality, if we don't do anything, unemployment will not go down as fast as it should. and income inequality will continue to rise. he says the republicans are getting in the way. for the wall street journal's peggy noonan says we're not listening to the president anymore, roll that tape. >> certainly, every two term president gets to a point where the american people stop listening, stop leaning forward. hungrily for information. i think this president got there earlier than most presidents.
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>> to sum it up this monday morning, inequality and security growing. and the president's spending policies peggy noonan says we're tuning him out. corporate world. one name is up big, charles recommended it on friday, we'll tell you which one. first to this, a gunman made off with an estimated 50 million bucks worth of jewelry from the continental hotel in cannes, france. it blocked to the israeli billionaire and were on display in an exhibition. and big heist targeting the ritzy hot spot this week. weekdays are for rising to the challenge.
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republicans and tuning him out. we don't have a lot of of faith in what he's doing and tuning him out. stuart: i'm thinking 1, 1 1/2% growth when we get the number, that's pretty weak? are you square with that, 1, 1 1/2%? >> i've got no problem with that number, we'll get more qe. and we're not going to see higher markets. with the trader down here, you want to be long when you get a weak number and sounds like we will. >> larry levin, thanks very much indeed. it's monday morning and the opening bell has rung and trading has begun. a slight down side bias and we're off 13 points right now. still at 15-5. >> first out of the box, saks, the luxury retailer getting bought and they're thinking almost 3 billion in cash and saks going up because they are being bought. and remember, please, saks was making money pick on friday.
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if you watched him, you'd be making money now. and amazon, shares on friday and the company is going to announce it's going to hire 7,000 workers in 13 states. and keep spending its money on expansion. and nicole, the stock is still going up or what? >> that's right, all for consumer demand. right? it's up about 1/4 of 1%, as you noted hitting record highs today. and it's about $313. so we're watching that. so, 5,000 of those jobs will be in the u.s. fulfillment centers and the other 2000 will be customer service network. and all in all. it's basically saying, hey, we need more help. because we have so much demand. that's very interesting, nicole. and shah gilani is with us. plows everything back. do you like the stock? >> no, 110 p.e. no profits, no future, in terms of what they're doing, which is
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the market share. i don't see where the money is coming from, nothing is passed along with shareholders. they've had a nice ride and personally, right here. 110 p.e. price, 110 times earnings, way out of whack you say? >> way out of whack. it's been a nice ride and i have not been in it, but here, no, % it's been up 32% in the last 52 weeks and the s&p is up 22%, so this has a beta of 64. no reason it should be as high as it is. it's got to come down. stuart: all i understand is you don't like it. and another dreamliner headline coming from boeing, united airlines found a pinched wire in an emergency beacon in one of the 787. the stock is down? . nicole: the stock is down for the component. all the headlines, obviously this, a pinched wire you don't want to get on a plane hearing that. what they're doing, being proactive and checking the
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planes up to 1200 jets in the next ten days, and they are, obviously, working fast and furious. >> oh, come on, nicole. i'd jump on a dreamliner at the drop of the hat if i had the chance, pinched wire. >> if you got on the dreamliner with a pinched wire. i don't know if you'd get on the carnival cruises and i think you offered to pick us up in a toyota when the mats were getting stuck, right? you're an adventurer, stuart. stuart: okay, i'm not a nervous flyer or driver or anything else. stay there, i've got shah with me, boeing, you don't like it. >> i'm not a nervous flyer, but nervous about the stock. we're short of the capital forecast, p and 110 the new high and it's back out and we'll be fine and take the small losses. some ways to come down and heck of a run. >> it's monday morning and the high summer and you've got a suntan, but down on a monday
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morning? >> no, i had some great picks. >> and all right, you've got great picks, let's hear it. give me a pick, number one. >> i start off with sea drill. >> 8.4. >> 8.4%. >> if i buy it at 41, they're going to pay me 8.4%. >> yes he. stuart: year after year after year, that dividend is secure? >> i think it's secure. a huge company, 66 rigs in all different areas of the marketplace and most contracts are long-term and the dividend is secure and they can easily manage the debt load. and if it's above 100 they're going to see more activity. >> i've got your list of likes and the next one down is western union. >> it's sort of unloved and forgotten, but it's a terrific buy here, it's got, about 9.5 billion dollar market cap and 5 1/2 billion inrevenues.
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about 24% operating margin, a terrific company to own. below 3% dividend yield, also. >> 40 years ago as a newly minted immigrant, i sent money through western union. we've got two picks out of you and two pans, we'll take that for a monday morning. shah gilani. let's get back to the big story, peggy noonan saying we've tuned the president out earlier than most second term presidents. when you investor do you tune out the president. i want to ask shah gilani. do you tune out the president and care what his policies are. >> initially i did, but now i tune him out. where he's deliverable, he hasn't done anything that i can see makes a difference. >> we're listening. >> fast food workers in seven cities are going to try and stage a walkout today and protesting wages too low he to live on.
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those cities are new york, chicago, detroit, detroit, milwaukee, st. louis, kansas city, flint, michigan. this strike, that's what it is. it involves workers from mcdonald's, wendy's, k.f.c. and victoria's secret are going to work out. calling for wages $15 more than double new york's current minimum wage which is 7.25. more coming up. to capital hill, the president's travelling around the country making campaign speeches, pointing the finger at washington for not getting anything done and we have coneman mark meadows with us. ad he's with us. congressman, the president wants to spend 60 billion for pr pre-school. 50 billion for infrastructure. we would see if the president got his way and spent that
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money. >> the private sector creates jobs, not government. government spending is never the one that's going to be the catalyst to do this. we need to get rid of regulations and reduce taxes, have real tax reform to allow the private sector to create the jobs that we have a history of allowing it to do. >> you're not going to get it are you? basically we're in campaign mode for 2014. and i can't see anything really getting done, so, i don't think the system's going to change at all, do you? >> well, we're putting forth a number of the issues this week, and it's stop abuse in government. you'll find a number of initiatives. one of those is the reins act. rolling back the registration on the private sector to make sure to allow businesses to create jobs. you're right, he's in the campaign mode and spending 700 million of hard working taxpayers dollars to go out and convince us of a plan for obamacare that supposedly was going to sell itself.
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now, he's going to be in campaign mode again. >> i think our viewers are very interested in the stock market. they see the stock market going up to record highs, in part, that's the result of total gridlock in washington. absolutely nothing can get done. and i think the market essentially agrees with you. we're not going to do anything significant. nothing's really going to change before the elections next year, is it? it's not going to happen. >> well, i can tell you that it's very frustrating. as a business guy, i know what main street really needs and that is some certainty, tax reform. i've talked to the chairman and he's intent on getting real tax reform so that we can unleash the power of the private sector, but it's frustrating because what you find is really a double standard. a lot of people talk about jobs, but when it comes to really doing something about it, we don't. the keystone pipeline is a prime example. it will create jobs and the president continues to say we're
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not going to do it. >> let's leave it at the status quo for the next year and a half and the market loves it. >> thank you, sir, thanks for being with us. >> it's good to be with you, stuart, thanks. >> okay. the battles in the 2016 elections are underway and it's not just republicans versus democrats. two leading voices at the g.o.p., libertarians, that will be senator rand paul, and governor chris christie, governor of new jersey, they're going at it. what does judge andrew napolitano say, he's a libertarian, he joins us at 10:17. and how are we going this monday morning, we're down 15526. and anthony weiner, eliot spitzer. san diego mayor bob fill ner, all of them suspects, involved in sex scandals. are the suspects really the party for women. and after the break, a conservative tells us why women should turn their back on the democrats. and oh, did you miss this over
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the weekend? >> i don't quite understand how you would feel you would have the moral authority as the head administrator in this city to oversee employees when your standard of contact is so much lower than the standard of conduct that's expected. >> are you not voting for me? >> i certainly understand that, but i want to let-- i want to let her people make the decision for themselves. >> i understand that, but you didn't answer the question. >> listen, you basically stated that's your position. my position-- >> my question to you? >> let me just answer the question, let me just answer the question. ♪ (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart tex i can quickly
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>> the loss is narrowing, down
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only 19 points. 1535 on monday morning. where is the price of gold. 330, up 8 bucks as we speak. a couple of big deals to tell you about. ad giants omnico, they've agreed to form the biggest ad agency in the world. and get this, they're going to have the two leaders of those two companies share power for two and a half years. good luck. and drug maker perrigo is buying its rival elan for 8 billion. a big merger this monday. look at facebook, that's moving today. up 2.8%, very close to $35 a share. i'll get you the news on that in a moment. eliot spitzer, anthony weiner and san diego's mayor, all of them democrats and supposedly the party of women and caught up in some kind of a sex scandal. and a political prospector joins us from miami. i thought it was republicans who had a war on women, but now you
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have the three prominent democrats all of whom have had endanglements with women and there, they're not backing down, not stepping away. what's going on here? >> hi, stuart, yeah, what an indictment on the democratic party. the party of women. you know, no amount of free contraception, no pro woman policy or platform can make up for what we see. this is pure miss mysagony. where are they calling on them. and they're not calling on them out of the party. but she called anthony wean ear disgrace. >> a disgrace. stuart: but she didn't say step down. and same with the mayor of san diego. >> exactly. stuart: what about this, you
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said mysoganey, that's hatred of women? >> it's pure disrespect. we should have the democratic women calling on the men to resign and they're not. we're not hearing an all-out cry for eliot spitzer to step out and wean tower step out. but it's hypocrisy, stuart. that's what we're seeing and it's despicable and they are the anti-women party and you look at the he three men and all you need to see. >> strong stuff. are you in miami right now? >> i am in miami and it's not nice right now as you can see. but i'm down here. stuart: i want to bring up the latest gallup poll, 43% of youngsters, and that's 18-29 year olds. 43%, that's all. had a full-time job last month and that's compared to 47% who had a full-time job, same age
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group the year before. what's this going to do for the young people who supposedly back president obama full-time? >> absolutely. this is such a problem, stuart. we see countries that have long-term use unemployment, decay and decline over time. you know, people in my generation are delaying life decisions, having families and getting married and the first job and skills in the long-term. it's going to hurt us, not just now, 16.1% employment. down the road ten years from now, we're delaying the life decisions and it's sad. it is. and that's why the med term elections are crucial. and we've got to put in place, pro growth policies and jobs for my generation. >> come back and see us soon, because i want to stay in touch with young people. are they going to vote left in the next elections a year and a half from now, it's a very big question and we want you to answer it for us. thanks for joining us. and the rain will stop soon and you can get to the beach soon, i
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promise you. now, everybody, i was going to give you my take on president obama's most recent plans to revitalize the economy. i was going to do that. the damage it's doing to the middle class. instead, i've got something completely different for you. back in a moment. ♪
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>> hey, look at apple. up 1%. and gaining after reporting big iphone sales last week. now, look at starbucks. a different story, pulling back a little today. and its profits were up a quarter. 25% up last week, down just 1% this week. and, yeah, he is the man you hate to love. his name is mark lanier, trial lawyer supreme. he's here for the whole hour. every time we talk about a stock we're going to ask if he's ever sued the company. he's sued them all, good luck. if you miss the judge, he's back and we're getting to it now that he is here. rand paul versus chris christie, the libertarians are splitting the republican party. it's all the judge's fault and
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he's here at 10:15 this morning. >> i was going to offer you an opinion on president obama's spending plans. i was going to talk about the damage that the president's policies are doing to the middle class, but then i read peggy noonan's wall street journal column how we're tuning out the president, i agree with her, we're indeed agreeing with obama fatigue. we can't have you tuning out "varney & company," can we? several developments from amazon recently, set it apart from the rest of the week. and it lost money. its stock zoomed and has announced the hiring of 7,000 new people, in other words, amazon is doing the exact opposite of the other big names, like apple. and president obama, he's got nothing to do with it. so, i hope you stay glued. think about it. amazon grows by plowing money back, all the money it makes, plowing is back in the business
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and spends the money it takes in and then some. spending big on warehouses to speed up the delivery time. what it wants is for you to order up an item in the morning on foxbusiness.com and have it delivered in the afternoon and that's spending big on kindle and the cloud, not sure what it means, but i'm told it's the way of the future. while apple, microsoft and others are accumulating huge cash reserves, amazon is spending cash as fast as it comes in and for investors, it's working. on the day amazon announced its loss the stock went straight up to a new record high and working for the company. who else has pr like amazon and it's working for america, who else in the tech world is hiring so many americans. dare i say it? amazon is growing from the middle out just like president obama wants for all of america. for which he cannot produce because he's all about bottom up. see? did it.
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i managed to give you my take that has know to do with the president because i don't want you to tune in, but, i've managed to get him in to prove that i remain skeptical of his policies. amazon, doing it right. the president, not. [ babies crying ] surprise -- your house was built on an anent burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. it's hard to describe, because you have a numbness, but yet you have the pain like thousands of needles sticking in your foot. it was progressively getting worse, and at tt point i knew i had to do something. once i started taking the lyrica the pain started subsiding.
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>> monday, july 29th, here comes august and the second hour. look at this. senator mike lee leads the charge to defund obamacare. would he shut the government down to do it?
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here's here. $15 for a fast food worker? if they get it, the ipad will do their job. after detroit, michigan's next bankrupt cities, the man with the bankruptcy map is here. so is the lawyer you hate to love. our own judge who has been away, back, and fellow libertarians are splitting the republican party. even if you're on vacation, you can't miss this. ♪ all right. 30 minutes into the trading session, down all of 22 points. it's not a big deal. let's get straight to sachs. charles, this was his pick friday amp, take a bow. >> me and lori. give her half the credit. >> lori and i happen --
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>> the queen's english. >> be the grammar police of the day. >> absolutely. >> they are acquired, and that's why it's up? >> right. >> you didn't see it coming? >> i talked about that friday. it's been in the rumor mill friday. i hope there's another offer. 30-day window for another bill. i have two takeovers today, butt other i didn't do on the show. >> mark, you ever sue sachs? >> never. >> can't believe it. >> i slipped and fell on a dress? what do you do? >> a high end dress, a high end retailer. >> that's true. a clean bill from me so far. >> nicole, a loser today is barnes & noble. what's going on? >> the shares down 3.5% for barnes & noble, struggling, doing well year to date, but, today, it needs more time, they say, to deliver audited financial statements to the lenders, and because of some periods they had to redo
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restatements over the years over time, so now they are just not up to par with it and need more time. >> all right. we hear that. >> how about mark, you sue barnes & noble? >> 30% fee from a paper cut is not enough money for it, so, no, i never had barnes & noble either. >> drive them out of business now if you sue now. >> not a lot to sue. >> get a lot of books though. >> i do like books. >> a controversial plan to save money in detroit, push retirees, too young to qualify for medicare off city run health care plans and on to obamacare. american taxpayers left holding the tab for bankrupt detroit. back door bailout, maybe? senator mike lee is here. senator, welcome to the program. what do you think about that? that idea of a back door bailout for detroit by pushing the retirees' health care cost on to obamacare.
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>> one of the many reasons why it's dangerous to do anything to nationalize the health care system. look, we've got a broad diversity of needs throughout the country as far as health care is concerned, and anything we can do that is going to create a back door whereby a city like detroit can get bailed out through the federal government through this kind of manipulation is bad for americans. the fact is that this law is bad, this law by the president's admission is not ready to be implemented. the president promised to implement it selectively, letting big business off the hook, but simultaneously telling individuals they have to comply or face punishments under the law, and we need to not fund it as a result. >> you're leading the charge to defund obamacare, that's what you want to do? you sponsored that legislation, but would you defund the government? would you shut the government down in order to defund obamacare? >> we all know that the government's going to be funded
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at the end of the day, and so the question is whether the government gets funded with obamacare or without, and i'm saying we ought to fund the government, but not obamacare. that's what i'm pushing for. that's what we can achieve if we decide, we, as a country, want that. once we're outside the beltway, we discoveredded this law and this effort is not controversial. this law is dispized, and americans wants to stop obamacare by any means we can, and that's what we intend to do. >> handicap it for us, how the vote would go, can you separate the two? shutting down obamacare and the government? can you separate the two? can you do that? number two, what do you think of the chances are of flat out defunding obamacare? >> yeah, well, first of all, you can separate the two, and i think we should separate the two because there's no reason why we can't fund the government but not obamacare. the only reason would be if most of the members of the house and most of the members of the senate insist on funding
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obamacare. as far as handicapping our likelihood of getting to that, it's too early to tell. that's why we are starting early, starting the effort in july when the government doesn't run out of money until the end of september. the american people are with us on this, the american people are speaking out, and as they speak out, i think we'll see more members of the house and senate joining with us in the effort. i'm not going to hand cap it at this point because it's too far out. >> i need your comment, if i may, sir, on the irs scandal. listen to jack on fox news sunday. >> jack, toke clear, there's 1600 lawyers in the office, and there was no suggestion it went to the one political person in the office, no evidence of it, there's been no evidence of it. >> well, wait a minute, have you asked him? >> chris, i'm leading the investigation to the proper people who investigations. i don't think it's appropriate for me to do the investigations.
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somebody in the -- >> if somebody in the treasury department asked what was known about this -- >> chris, there's no evidence. >> okay, senator. we've been told this is a phoney scandal. your take on that, please? >> well, look, it's not a phoney scandal. if you want to say it's a phoney scandal, asks those targeted, singled out for unfair treatment from the irs. this is not phoney, i assure you of that. whether or not there is evidence of what chris wallace was asking jack lew about remains to be seen, but the fact that he is insists there's not evidence might result from the fact they have not asked the right questions. weehave to continue to ask the questions, this scandal is not phoney, and we got to get to the bottom of it. putting this much power in the hands of a few irs agents, power to determine whether an individual or entity is able to operate, is able to survive, that's a problem, and that's
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going to be abused from time to time for partisan-political purposes, and we have to get to the bottom of it. we have to look at why we vested so much power and discretion in irs agents. >> yes, sir. senator mike lee, republican, utah, thank you very much for joining us. we appreciate it. thank you. >> thank you. >> back to nicole. boeing stock was down, where is it now? >> weighing on the dow jones industrials, one one-half of 1%, this is as they found a pinched wire. we've been, obviously, following the story about the honeywell emergency beacon locaters, and how boeing has now ordered that all the planes be check, 1100, 1200 planes be checked in the area. the british investigators found the fire traced to an area that housed those unites. they are being precautious. >> 105 right now. nicole, thank you very much, indeed. mark leneer is here. have you sued boeing?
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>> i believe we have a winner. >> have you sued boeing. [laughter] >> yeah, i handle a number of cases. >> somebody in tush lance? oh, i'm anxious about flying, i need $10 million. >> no, flying into the face of the mountain killing everybody on board. >> i drnt mean to make a joke, i know. >> you had no clue what i was going to say. >> i did not. >> boeing makes good airplanes, but sometimes things do not go right. >> you maintain you represent the interest of the people when they are in conflict with the interest of business. is that your position? >> yes. i represent the interest of business in conflict against business. i'm a private district attorney out there making people be responsible. responsibility r' us. >> what do you say to that? >> don't say anything. >> charles agrees with me. >> a lot of district attorneys out there shouldn't make that kind of money.
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[laughter] >> very good. well done, charles. well put. >> fast food workers staging a protest to detest what they call too low wages to live on. they are going to try to strike or walk out in new york, chicago, detroit, milwaukee, st. louis, kansas city, and flint, michigan. workers from mcdonald's, burger king, wendy's, kfc, my sigh's, and some victoria's secret people proposing to walk out. there's an ad run in response to the strike pointing out that if employees get their $15 per hour they are looking for, the next employee of the month might be an ipad. rick burrman from the employment policy institute joining us now. rick, spell it out. what do you mean? if you get 15 bucks an hour, in comes the ipad to do it for nothing? go. >> you got to understand that the technology is racing ahead
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of some of these demands, and businesses are probably looking for ways -- i shouldn't say "probably," but there are computer-based applications right now that will show restaurant operators how they can get the customer to order by ipad and pay by ipad, and the $15 an hour, many -- i won't say majority, be many fast food restaurants are out of business. the business model just does not support those kinds of wages, and if people are feeling that they are not paid adequately, they got to find a job someplace elsewhere the business model pays higher wages because people are willing to pay higher prices. >> now, rick, their argument is, and these walk outs are taking place in some of the most troubled cities in america, their argument is the way to get the cities out of trouble is to pay higher wages in the cities so you raise everybody up, you raise the level of demand, and you stimulate some expansion of business in those cities. what's wrong with the argument?
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>> well, the argument suggests that customers will pay whatever it is you are going to charge them, and if that were the case, businesses not told to pay the wage, would raise prices right now. in fact, businesses compete on price because that's where customers are. you have to remember, mcdonalds was the company that taught people to clean up after themselves, taught people to drinks, and all of these are labor saving devices because people traded service for price. if you raise -- if you raise wages at 15 bucks an hour, you're basically doubling the wages of the fast food employees and, quite frankly, labor is one of the biggest cost items, so they just can't afford to do this. >> rick, we hear you. thank you very much, indeed. i got ace attorney mark leneer with me. you screwed up your face in the report. what's wrong? >> an ipad is not going to cook your cheese burger or fry your french fries, but will it
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take the place oo the person at the register in maybe once currency is all artificial, but an ipad's not going to take your cash and count out your change and do those types of things as well. >> but technology will decrease the number of workers required in a mcdonalds or burger king. >> that happens as soon as the ipad is anal to do that, -- able to do that, it'll happen and workers will transition out, but never takes the place of the cook. >> were you in the lawsuit that sued mcdonalds for the hot coffee? >> i was not. >> any other lawsuit against mcdonalds? >> yes, i have, and i represented mcdonalds in cases. >> playing both sides of the fence? >> yes, i have. >> do you really? >> yes. >> what do you think of $15 an hour? >> ridiculous. listen, it's a low skill job. >> if they do get it, then what? >> well, they do get it, there's fewer people back there making burgers. instead of four people on a
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quarter grill, there's three. i mean, it's -- >> and i don't fuss that point. i do think it will raise unemployment, but i don't think it's as bad as rick says. >> i don't fuss that point? >> that's texas. >> oh. senator rand paul and governor christie, two leading voices in the libertarian arena. they are not libertarians, but opposite sides of the fence going at it, of course. setting up a fight for 20 # 16? all rise, the libertarian judge is next. ♪ sky
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>> waitresses fired for gaining weight. that's what happened to a group of cocktail servers. they sued atlantic city's casino alleging weight disgrim nation. they lost. the judge said these women understood the job's guidelines accepting the positions, and the guidelines were fair. your reaction? >> the judge is right. >> what? >> absolutely he's right.
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obesity is not a protected class in america. the law is not set up to protect women of that job occupation who karat ahead of time living up to the stashedz. if not, you're fired. >> if you took the case, would you have won? >> i would not have taken the case. >> really? >> no. >> because you couldn't win? >> because the law's not there. >> if being sexy is a job qualification, they have to stay that way. >> thank you, judge. >> words of wisdom. not bad at all. it really is merchant monday with two big deals to talk about. agreeing to get together to form the biggest ad agency in the world, that's a $35 billion merger. the drug maker buying their rival elan, paying more than $8 billion. the acquirer way down on that one. now this. ha-ha are libertarians causing a
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split? yes. giving entree to power in 2016? why yes. judge, you're -- >> i'd be responsible for this? >> i'm getting to it, okay? >> your addiction to principle, your inability to compromise in any way, shape, or form is giving entree to the collective vieses to seize power in the united states of america. it is your fault. you're a libertarian. >> if by "principle," you mean freedom and my addiction to freedom is stirring the pot, i plead guilty to that. obviously, i didn't cause this, but, look, let's take a big view of this. this is an age-old problem with the republican party. when we were young, it was barry goldwater against nelson rockefeller. is it a more conservative or a might be liberal republican party. >> true. >> twenty years later, reagan against george hw bush, and 30 years later, it's paul against
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christie. >> right. >> is the republican party going to be a big government party, its version of big government, or more faithful to the principles of the prep -- prep sigh of the individual. >> mark -- >> did i describe that without showing bias one way or the other. >> no, you did not, clearly bias one way or the other. mark, the republican party is a big tent. >> both sides come together and stand for something. what's nice, is you need a level of compromisement understand let's fight within it, but at the end of the day, what reagan said, we're republicans. >> this is where i disagree with both of you and agree with the british system. >> what? >> if the parties were based on principles, if a conservative party always stood for small government and a democratic party always stood for big government, more or less, more or less like great britain, we
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only have to draw people that agree with us. last week there was a minor piece of legislation, from sweeping data on everyone saying, you know, if you want data on somebody, tell the court who it is, why you want it, and sign the search warrant. that had more democrats voting for it than republicans. >> interesting. >> only lost in the house by 11 votes, these are assaulting them. >> those are based on principles of freedom. >> now you got to ask a question, who can win? okay. >> winning is important if you want to keep the collectivists out. i don't know about you, but rand paul cannot win. love the guy, but cannot win. >> well, the flip side of that is you can't get on the ballot unless you have the nomination. you might argue one of them
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can't win and the other can't get the nomination. >> yeah. i'll argue that. >> that's a problem that republicans had for too long. >> they are going to tear each other apart in the process. >> what's the difference between a republican version of big government and a democratic version of big government? >> all right. not much. >> not much. >> okay. do you think rand paul wins as a republican nominee? he would win the presidency? >> it would be a difficult job for him to do so, but nothing's impossible. >> right. do you think that christie could win if he's the nominee of the republicans? >> we. >> you do? >> yes, i do. i do. >> this is politics we're talking about, so you go with the guy who can win to get rid of the four eight years of collectivism. >> go with the person who is going to vindicate your values. if i knew what george bush was going to do in eight years, i wouldn't have. >> you go with who can win, and you? >> absolutely. you focus on only one issue. if the republican party's not a big issue, issues of immigration, issues of not just
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the economy and government, but social issues and all the rest of the stuff, the republican party that focuses so narrowly on the libertarian issue and will not compromise at all on that, -- >> no use having a republican president if he doesn't stand for anything. >> he's just plain right, and some am i. charles, stay out. >> okay. >> judge, that was good. i think it was a draw. >> did i bring you closer to my at all? >> i don't know. i just want to win. i just want to win. >> what do you want to win? >> lower taxes. that's what i want. >> taxes in new jersey where we live have not gone down. >> if we have to drop the break, we will. christie, the governor of new jersey, saved us from a tax on the super rich. >> yes. >> saved us from it. >> didn't lower taxes, but saved them from going up. >> thank you. >> is that what you want? taxes where they are or somebody who really believes in small government? >> i want to win, thank you,
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judge. >> so do i. >> okay. there's a place for you up and coming young athletes to go to get more training to up your game. online coaching. we have the man who started the website. he's next and the dow's down 30. ♪ ♪ the boys us double miles from their capital one venture card to fly home for the big family reunion. you must be garth's father? hello. mother. mother! traveling is easy with the venture card because you can fly any airline anytime. two words. double miles! this guy can act. wanna play dodge rock?
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stuart: i do urge you to stay with us for another half hour. we have snap chat coming up. the dow is down 36. let's go to the call. nicole: it is getting creamed. down 9.25%. it is based out of kansas. this is basically a 28-$30
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stock. they initiated coverage. how badly they expect to underperform, in a massive way. stuart: we have heard all of these things about apple going to 1200. that is really cutting it off at the knees, analyst point of view. you have recommended this one before. charles: yes. they signed a deal with teamsters.
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i am praying that it is a good number. i think this could be a $150 stock. stuart: it is a 3d printing company. charles: it has all bases covered. a minimum of 31%. we will know in the morning. we will see this whole space tomorrow morning. stuart: have you ever heard of 3d printing? >> heard of them, never sued them. [ laughter ] stuart: you have a child doing well in sports. get them some personal training. where do you go? how about coach up.com.
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we have the founder and ceo. it seems to mm that you get all of these top-flight athletes together and then you put them on the net through your website and to encourage young people to hook up with them for extra training. have i got that right? >> something like that. it is not only the next lebron james, we try to provide a great service for everyone. stuart: a lot of people who will use this service are the parents of youngsters who show some promise in sports. you are catering to wealthy parents.
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>> there certainly are some wealthy parents who want to give their child an edge. we have coaches starting as low as $30 hour. stuart: is that one on one or do you do this coaching over the net in some way? >> one on one or small group sessions. the sessions have been in person, in small groups or individually. stuart: thank you for joining us. any comment, charles?
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>> these kids are traveling all over the country to these camps. stuart: it is an investment. charles: it is a huge investment stuart: do we object to it? i don't. >> they do a good service. stuart: middle class in decline. one problem, it is not working. his only response is claiming republicans. >> every two-time president gets to a point where the american people stop listening.
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stop leaning forward hungrily for information. i think this president got there earlier than most presidents. ♪ [ male announcer ] these days, a small business can save by sharing.
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stuart: snap chat, it is a photo messaging app. the best part about it is that
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unlike other photos, these do not last forever. they disappeared. sounds like something anthony wiener could use. >> you have a photo of what happened, even though the e-mail message disappears. it makes for opportunities of blackmail as well as reporting to the sec. stuart: never thought of that. >> you can set the timing on it. stuart: the receiver does not want to have it disappear immediately. the sender wanted to disappear.
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>> be careful with snap chat. stuart: the middle class in decline. all the while, he is blaming the gop for the nation's problem. >> the recovery has posted a number of good signs. we certainly are not there yet. there are things that are going well. what is not going well is congress. when you have the drain all stocked up, you go to the source. it is the hair. the hair is the republicans,
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congress. we are not dealing with the real issues. stuart: you cannot do this. we have had this president for 4.5 years. for two of those years, he ran congress. throughout the 4.5 years, middle america has flied out lost. their wages and incomes are less. they are in the client. the president blames the republicans. if the president went through congress, his desire to spend $50 billion for infrastructure got 9 billion for infrastructure banks, do you think we would have real growth? >> we would be better off.
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we need to invest in education. charles: the income equality gap always makes me go crazy. look it up. i am talking on a state-by-state basis. it has only gotten worse, not better. >> stuart, you have to remember that the middle class would have fallen through the trapdoor if it were not for the obama policies. we prevented that.
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if the house republicans are intent -- stuart: president obama things that you lose this inequality by taxing the rich. i say you lose inequality by creating economic growth out four, five, 6%. let me make a suggestion, if our president was intent on leadership instead of just the blame game, then we may have a shot at something. all he does right now is collated here in the sink or whatever you may perceive. >> it does start at the top.
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stuart: i am sorry. we are out of time. detroit is not the only city that may end up going bust. after the break, a list of the other michigan cities on the brink. ♪
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♪ stuart: global energy
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consumption expected to rise by more than half by the year 2040. fossil fuels report, they are expecting to keep up much of the energy supply. the government says the largest bank will lose 47% of their savings. detroit garage sale may be more literal than you think. the emergency manager says the city is open to public, private partner ships. next, detroit tried to dig itself out of bankruptcy. who else? ♪
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♪ stuart: look at amazon stock, please. plowing the profits back into the business. expanding. charles, what do you say? charles: i like the stock. every time it takes a hit, you buy it. stuart: forget about suing them, do you like the company? >> i wish our country had this mentality of plowing back in and
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building it from the middle out. stuart: take it from here, if it from there. it has been just over a week since detroit filed bankruptcy. what about school districts? pontiac, highland park and taylor. patrick o'keefe is with us. he has a map which drew this up. we just mentioned the top three cities. we mentioned they are on the brink. how close are they to joe's going right over the cliff? >> in the case of flint, they have had and emergency manager there for quite some time.
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stuart: you have a map of the state of michigan which looks out likely bankruptcies and that troubled these cities are in. it will happen. they are the most likely to go bankrupt and they will go bankrupt. can you say that? >> i can at this time. i think depending on how the city of detroit goes, it will either encourage or discourage other cities from taking that then you. stuart: how about school districts? we invented the top three that are in the worst shape.
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>> new metrics, it has demonstrated quite convincingly that the school districts are in much worse shape. you have two dynamics that are really going against school districts in the state of michigan. one is a declining population. the other is the climbing property values. the school districts have been late to the party. stuart: i have to have your judgment here. at the end of the day, do you think we will have more declaring bankruptcy in michigan? >> to the extent that bankruptcy is a good venue and they cannot do it on their own by bringing the parties to the table, that is true. bankruptcy is a failed negotiation.
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stuart: our viewers do not care. they want to know bankrupt yes or no. your answer was a tentative yes; correct? >> yes. stuart: thank you very much, indeed. the dow is down. the dow is at 15,500. would you have expected that? and add that advocates the legalization of weed, marijuana. they are calling it the new beer. we have a response to this after the break. >> it is not linked to violence or reckless behavior. marijuana, less harmful than alcohol and it is time to treatt it that way. ♪ r money do more. (ann) to help me plan my next move,
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i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies."
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stuart: marijuana, the new beer? listen to this. >> less toxic and it does not cause hangovers. it is not linked to violence or reckless behavior.
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marijuana, less harmful than alcohol and it is time to treat it that way. stuart: the ad was on a billboard monitor. your comment? >> i will refrain from saying nascar has gone to pot. this is absolutely reprehensible. i think it is a health hazard. i think there will be lawsuits about it. stuart: you will lead the attack on the marijuana industry. >> i will. i will donate anything i get out of it to public health. it is a huge mistake. it is a huge mistake. stuart: charles. charles: i always felt that way because i have seen where marijuana leads in my own life. the only problem is the people
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who are in prison for selling weed. >> it will be legalized. stuart: it will be you legalized. it will therefore be advertised and you do not like it. charles: i do not like the use of it. i do not think it is an innocent drug. it is a gateway drug. stuart: you heard my take last hour. now it is time for your take in just two minutes from now. ♪ to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button?
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stuart: during my take in the last hour i told you that amazon is growing the company from the middle out. that is something obama says he wants to do from america, but he is not doing that. >> he spends lots of money. paul says he is off bottom-up. good one, stuart. in other words, obama has his
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head in the sand. >> do not put them in prison, fine them. i do not want to hire people if they are smoking pot because of the way it will affect their job performance. stuart: would you keep it illegal? >> absolutely. that is a no-brainer to be. it is a gateway drug, as charles said. it is so much more than that. if we will pay for everyone's health care, it is stupid. stuart: you think it is detrimental to someone's health. >> absolutely. i could prove it in court today. stuart: thank you very much for being on the show. connell, it is yours.
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connell: thank you very much. move on from these phony scandals. that is what jack lew wants to do. the deadline is 5:00 p.m. this evening for time warner customers. is cbs joe's going away? this is a big media story today. pain in the workplace. did you know that hundreds of billions of dollars reportedly is lost every year and productivity in healthcare costs? the good news is, there is something we can do about it. those stories and more right here on markets now. ♪ connell: all right. the dow is down 32 this

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