tv Varney Company FOX Business April 24, 2013 9:20am-11:00am EDT
>> who do you blame? your plane is delayed, your stock goes down and where do you point the finger? good morning, everyone, plenty of victims, but culprits. who do you blame for apple's stock losing all of its bounce and then some? tim cook? by the way, apple is back well below 400. the white house blames congress for airport delays and jay carney diverting the heat that the president is getting from angry travelers. and the hacking crash last what, 200 billion dollars, who do you blame. hackers, twitter, computers? either way, are you more confident in wall street? enough with the questions, i will tell you this, stocks will go up yet again ten minutes from now. "varney & company" is about to
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>> all right. the your flight is delayed ap you're sitting in the airport and you are angry. the white house wants to channel that anger away from the president. the white house is blaming congress. listen to jay carney yesterday. >> we made it clear that there would be these kinds of negatives effects if congress failed to take reasonable action. >> congress, congress, congress. all right, here is what we reported yesterday. it contradicts carney. we said president obama passed up the opportunity to allow flexibility and he said, no, we're not going to target the cut to nonessential areas. we said, the pain is deliberate and you're feeling it the at the airport. maximum pain that the president could have avoided, now, he blames congress. and here is more maximum pain for you. meals on wheels, that program feeds elderly people. 200 seniors in california will not get their meals now. blame the sequester.
maximum pain, harry reid saw it coming. >> meals on wheels has a waiting list the first time in 16 years. it's going to effect meal and wheel programs all over the country and they've cut the size of meals they're serving the elderly to save money. >> he's in congress and he's blaming the cuts. here is another example, it's a small one, but it counts. nasa canceling an open house event at the jet propulsion lab in california. attracts 30,000 visitors, canceled. most are kids. sorry, blame the cuts, blame congress. that's that story. apple, that's going to be the stock of the day at least from the start, look at it go down big. it reported a drop in profit, its first of a decade. 392 right now. let's see what it does when it opens. where does that leave tim cook? no specifics from him as far as new products are concerned and the stocks clearly taking a beating and apple did raise its dividend.
obviously, it's going to watch that all morning for you. >> all right, next, the opening bell and the question, where were you at 1:05 p.m. yesterday. when the market dropped 150 points in three or four minutes because the twitter account was hacked? do you put your trust in computerized wall street trading. everybody has different investment objectives, ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.
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♪ in a new york minutes ♪ >> everything changed, everything changed in a couple of minutes on wall street and here is scott shellady from chicago. i don't want to be silly, where were you at 1:07 p.m. eastern time. do you remember what you were doing? >> i absolutely do. because my phone board lit up like a christmas tree and all the customers asking what the heck is going on. within a minute or two, we figure it out. now what? it doesn't send a good message, does it? it looks like las vegas on steroids and i don't like it at all. nobody does. stuart: i don't know what you can do about it, scott, frankly. we can ask an expert in a second. i don't know what you can do about it, do you? >> i think ultimately the market has it take care of itself. and we're going to have to see he how it plays out and stop giving them money the only thing
we can do. >> in ten seconds we've got a 5.7% drop in durable goods orders in march. does that make a difference in the way you trade, scott? >> no, we're going to have to go with the flow and the fed printing money and that's a negative feeling going forward and that's more capital in the system and these stocks are slowly, but surely going higher. >> you can tell, the crowd roars behind scott there and the trading session has begun. horr here we go. the opening trend is up higher again. up 152 yesterday and now we're looking towards maybe what, a 20 point. maybe, look at this. we're going to be up maybe 30 points in a couple of minutes' time. we're down 7 now, but watch out, this thing is going to go higher. i want to get to apple and reported its first drop in profit in a decade late yesterday. and the stock is going to be down and nicole, how much? >> right, it's down over 3% this morning, what's interesting, they announced the buyback after the bell yesterday and which that buyback announcement,
right, is bringing that value to the shareholders and to the dividends and we saw the stock jumping late yesterday. it's at 4.28 at one point. we did see it jumping and to sell off again this morning. stuart: by the way, the dow has opened, 16, 20 points lower and i suspect there's one or maybe two dow stocks which are accounting for much of that loss and we're going to check for that one. at the moment right there at 14-7. a couple more names you know, taco bell, k.f.c., pizza hut. yum! brands, they reported a sharp drop in sales. the stock is up and overall profits are better than expected. that's a nice gain for yum. 6% higher. now look at boeing, profit up 20% in a quarter. and for all of those problems with the dreamliner batteries and lower costs, drop in sales and the first priority is to resume dreamliner deliveries.
91 on boeing. please do not forget netflix, stock of the day yesterday. a big jump. a lot of new people signing up. nicole, netflix, please? >> all right. it's not doing much of anything today. i mean, yesterday, you saw it booming on the news of the subscribers in the great quarter and today fractional. stuart: thanks, nicole, now we're on the upside. 13 points higher after two minutes' worth of business. let's talk about the flash crash caused by a fake tweet sent after the associated press twitter account was hacked. twitter is working on a two-step security solution. here is what happened. the tweet said there was an explosion at the white house, computers, programed to read news bulletins, saw the words explosion, white house, they are keyed to read that words and triggered instant selling and i think the dow is 147 points down
in a couple of minutes. and chris desi is with us, the ceo that knows what he's talking about with social media. i've got to tell you, i found that ridiculous, it's exasperating. >> as exasperating and disconcerting and frankly, you mentioned the algorithms are attached to the activity and content on twitter and i think it's a huge mistake. we're learning a big lesson, the past few weeks of social media is a coming of age. a few years ago it seemed like a tinker toy. and the boston bombing and the flash crash, what we're learning is social media is much more powerful than perhaps previously indicated. i've been quoted as saying, it's a little out there, but i said social media is much more of a spiritual awakening than technological. it's viceral, instantaneous. there's no filter, people are not cure rating the content of postings and we shouldn't have
algorithms listening to this content and potentially sway market. stuart: it's the algorithm is the problem. we're misinterpreting a fake tweet and lose 150 billion dollars. what can you do that, change the algorithm. >> you can certainly change the algorithm, i don't think that the algorithm should be attached to twitter at all. i think you're getting free k y frequency, but until twitter implements simple two-factor security setup that facebook has two-factor security. stuart: is it twitter or the associated press? >> perhaps a little bit of both. you can't tell a computer-driven program and say, uh-uh, ignore the associated press, ignore news, you can't do that. >> can't do that and this is why we need to have stop gaps in place and who has the stop gaps?
>> on both ends. it's twitter on one end and anybody making a major trading based on the algorithm and the reason they're doing it is because they realize that twitter indicates sentiment, right? you can see if people are skittish, see if people are happy, if people are upset and there are statistics and certain times of day and points during the the week where people are-- certain words are posted more often. happy things, and wow, this is great and wonderful and as the markets dip and people tweeting different content. that's where it gets wonky. >> so you say the computer driven programs operated by the big investment firms, take them off. don't relate them to twitter? you're saying that. >> i think it's-- it needs to be examined. it definitely needs to be examined, because it's so viceral and it's so gutteral and things are happening in an instant. if something, god forbid there is he' another terrorist attack and god forbid tweets posting negative commentary and perhaps it's near a major financial sector, do we really want that
to immediately effect what's happening within the stock market? we don't want that. >>, but it will. >> it will. >> we need to address that. there's no retreat. and i said i was exasperated and you've got to live with this, you can't get rid of social media as a force in the financial market, you can't do that. >> whether you like it or not. social media is happening to you, to me, it's a cultural shift not just technological. this is why i go big and say this is more of a spiritual awakening, us connecting as human beings, whether it be facebook, instagram, whatever it is, connecting on a different level via technology and need to be paid very, very close attention to. stuart: there are still people like me, for example, who say i'm not so sure i like it. >> i'm not sure i like it. >> not sure i'm going to invest in that stock and might leave it to the big guys. chris, i'm out of time, but this is a fascinating subject. it really is, come back and see us again soon.
>> thank you for having me, appreciate it. stuart: big deals on capitol hill today on three very big issues. and air delays, keystone pipeline, obamacare, lots of questions raided with each of those issues and we're on this. you could be seeing some fireworks from d.c., we're going to cover it top of the hour. that's what's coming up. back to nicole, what is going on with whirlpool? that's got something to do with the 5% drop in durable goods orders? >> that's right, we're right on target and whirlpool is doing okay. whirlpool came out with numbers that beat the street and they're countering the global demain that's waning. on the other hand, that's the whirlpool story, but it's down 5 1/2%, why? because the u.s. durable goods number down 5.7% and durable goods is things that are meant to last years, if they fall on your foot, they hurt like a washing machine, right? that's what a durable good is. and it really just shows you the economy and what the durable
goods numbers tells you is that we're seeing slower growth. >> by the way, nicole, whirlpool is one of charles' stocks that he liked, okay, and now it's down big, but he tells us, i heard in my ear, he says he likes it and it's is going to justify his position later in the program. nicole: good. stuart: thanks, nicole, see you later. we want to hear from you always, send your e-mails now, firstname.lastname@example.org. and it's time for those 7 early movers. what's moving in a market that shows the dow up 16? we'll start with toyota. it's still the world's number one in global vehicle sales, that was january through march. that quarter, toyota still number one, moving up again. $113 per share for toyota and life sciences makes heart valves and the company lowered the sales outlook. i wonder if it's got anything to do with a medical device tax. i don't know, i'm speculating
here and the stock is down big time. more money coming in and higher profit at procter & gamble. and it's down 4 pergs, something is going on i don't know about. 78 on p&g. and smaller than expected loss at sprint nextel. virtually flat and ford on track to meet the price target this year pretty flat. better than expected profits at eli lilly. and it's better than expected profits, but it's down, not much. 1% though. disappointing profit in the furniture maker ethan allen. look at that. down it goes. 8% lower. back to the big board. we're expecting 20, maybe 30 points up. didn't get it. 11 points higher. and now we've got it. at&t, that's the big loser. down 4% it's a dow stock and that's why the dow u-dow is not up the 20, 30 points we thought it was going to be. we rollebsp you'scksn qkay(3 c1 & check the other
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>> it there is ooh-- a reason that there are two stocks losing ground and put them together and account for a 46% loss for the dow. at&t losing subscribers and the profit picture was not that good and down it goes. it was a $2 loss and that hurts the dow and look at procter & gamble the profits aren't bad, but the outlook, 4% loss and put them together 46 point decline for the dow. if it were not for those two, you would have a gain as it was supposed to be. okay. a twitter account hacked, that triggers an algorithm that is
meant to catch key words, obama, white house, and yesterday's crash in just minutes. and this does not restore trust in wall street, does it? and dr. keith ablow joins us, and truth and-- >> you try to. stuart: you know what happened and i'm saying this this is -- this represents the decline of trust, not just in social media, but in wall street as well. and i know you're going to agree with me. >> well, yes and listen, i'd he be loathe to put america on the couch and say, you're being paranoid. no, you're being realistic because you can't trust a system that seems to be a liability upon a lie. i'm not sure the markets aren't cut free anyhow from reality. you see the markets surging despite bad data regarding printing money and the rest. >> you're saying that social media does not deal in objective truth. >> correct. so what you're saying, basically
you saw a lie taint the market for a short time and then it rebounded. that could be reassuring to people, but what you really see and the reason that people are going to be dismayed by this and saying, well, i don't know if
i can trust anything is how easy it is for fibs and fiction to invade the market. that's the headline here. the market responds to fibs and fiction. now, this one was a short-lived one, but i believe there can be much longer-lived ones and if the market is that sensitive to tweets. all tweets are lies. and twitter itself is a lie and facebook is a lie and it's invading our whole culture. but you cannot just walk away from it. you can't eradicate social media from modern society. it's become a very strong and integral part of our society and indeed suffering. you can't walk away from it, you can't say, oh, no, totally ignore you, you're no part of this. >> no, that's right. i think the lesson to be taken here, there are truths like
earnings and solid dividends from companies and you better pay attention and not be a trader in the markets because imagine if the twitter barrage had been more after epidemic, rather than a single sneeze. you could literally unleash a day of
devastation on the market. >> yes, you do. >> and it can be some looney tune over at mit doing it for fun. >> okay. >> right? and that's how vulnerable our markets are. >> so put me on the couch, if you were a-- >> this has been my dream for a long time. stuart: no, no. i'm on the couch, i'm an investor. you're looking inside my head. what advice do you have for me as an investor on your couch? >> so, my advice would be number one, would be find an investment advisor who is sage and who does not respond to tidal waves or receding tides. and see them for what they might be. always goes to the fundamentals, don't look for the home run,
they're too vulnerable. secondly, it might be interesting if somebody started a fun that was based on taking advantage of fiction. so, if you can see through and say, i don't buy it, it's a twitter thing, it's a facebook thing, i'm buying despite the fact that they're lying. buying when they're lying could be a-- >> it's a terrific headline. we could start that together and retire in a week. >> always original. >> yeah, i try to be. >> we appreciate it. >> put that out on twitter. 9:49. here is your gold report. we're up and that's no lie, you love gold. >> i love gold. and there you have it. president obama is all in when it comes to subsidizing green energy. he's ignoring warning signs that that struggling fiscar auto company. this is how they do business.
impact on boeing stock. it was up already this morning. up about 2 or $3 and now we're up $3 at 91. and reuters says that ethiopian airlines will be the first to restart 787 dreamliner starting saturday. boeing is up. and how many times have we said su subsidies are no match for the pre market and we're learning that the obama administration knew about fisker a full year before it froze the company loan. charles: this is beyond picking winners and losers, it's about honesty, trust, wasting the public's money. discarding our opinions and free market and saying we know better and then not being honest enough to admit you're failures and sometimes barack obama thinks being president means never having to say i'm sorry, a mea culpa, things happen, it's a terrorist bombing, a failed industry, it doesn't mean you're
a bad president, you can't control everything, and don't waste our money on it. stuart: fisker is done. charles: 400 million of our dollars into it and even when they told the public otherwise. >> and make a green energy program that's picture perfect and it's not and the news reports are out that the company was approached by a government official to take this loan and they're pushing tax-free money on to failing companies. >> they've got the money pushing out there, please take it, all right. and the blame game shifts to capitol hill in our next hour. three big issues being addressed in congress, air delays, obamacare, and the keystone pipeline, we're following all for you. plus, you think an internet tax is a bad idea? an insolvent state tried one as a way to raise money and failed miserably. all of that in our new hour of "varney & company" which is next. ♪
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for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. stuart: wednesday, april 24. we have for you fireworks in d.c. obamacare, airport delays, legislation. an opening, maybe, for lower tax rates and deceptions. that is called tax reform. would you believe this? a harvard academic who supports
fracking. yes, incredible. you will meet him. he is on this show. a new hour of varney & company begins now. ♪ stuart: there are potentially big news developments taking place on capitol hill at this very moment. rich edson and peter barnes standing by. first to you, rich. well they reverse the furloughs? rich: not anytime soon, stuart. the law requires them to cut certain accounts by certain amounts. this is the only way it can be done by furloughing one day every two weeks.
the way the administration has structured this, it increases the pain that travelers are feeling. stuart: thank you. next to peter barnes. moving forward without the president's approval. how is that possible? peter: that is right. the northern route approval act says that no presidential permission is required to get the keystone pipeline built. however, there is a small catch, stuart. it says that the president actually has to sign this bill. [ laughter ] peter: it is just a little hurdle. this is the 13th till they have done like this. however, there is a strategy. if they attach it to something that the president must sign,
something like an ncrease to the debt ceiling later this summer, they may have a chance. stuart: peter, great stuff. now, we have health and human services secretary. she is on capitol hill today testifying. this is really all about the implementation of obamacare and the money for it. liz: yes. there will be a higher cost that consumers will have to pay through health reform. the gop jumped on her for that. the preventative health care budget is getting drained to help support the state's health care exchanges. there is discretion without the government and white house can use money. stuart: that may come up today in congress. charles: or trying to make it work among other things.
the whole thing .28 grand plan. hits keep coming. liz: she is under fire from the left. senator tom harkin. he is saying do not take those provided on preventative care money. stuart: good stuff. check the big board, please. virtually flat. a couple of dow stocks costing us a lot of gain for the dow. about 40 points. procter and gamble down three. that is a 4% loss. add those together and you are taking 40 points out of the dow industrials. the stock at the moment is
apple. nicole: first of all, a couple of things. as i noted yesterday, when the numbers first came out, we solve this stock of apple jump. it had that knee-jerk reaction. it has been in favor, out of favor. the iphone sales beat the street. they issued a buy back up to $60 million. it is not unheard of. stuart: okay. what they do not have is a future product that we know about that will grab everybody's attention. let's bring in mark on this. he is the editor and chief of laptop magazine. he watches apple very closely. >> i think on the earnings call yesterday, tim cook said we have some great products in store for fall and next year. we read between the lines all
the time. we will not be a new iphone during the summer. the samsung galaxy for launches soon. stuart: you think that all he has is an upgraded iphone for the fall. that is all? >> for the five. he left open the door for a larger screen iphone. analysts keep asking that question. stuart: it would not come until next year? >> he did not say. charles: that is sort of a copout. the public loves these bigger screens and you are losing our good chair. >> exactly. i don't think it is just about the screen quality. stuart: you have to keep me straight and narrow here.
let's go from apple and switch to samsung. the galaxy as for, you talked about it. you reviewed it as of today. how they caught up with the iphone? >> some of the features have surpassed iphone. you can choose the camera which is sharper than the iphone5, but you can use the front and back camera at the same time. there are so many clever features built into this. stuart: a higher-quality picture than them with the iphone. >> yes. in terms of what is available.
the cost will vary by carrier. the sprint carriers go by 249. stuart: i am lost here. charles: it is not necessarily an elephant in the room, but you testified things. >> he is really good when it comes to operations and numbers and getting components. liz: there is no other steve jobs out there. can apple boost the stock by getting that deal with china? >> lower-cost. charles: that is not what excites people.
stuart: ubs, swiss bank, they have just cut their price target on apple. it was 560, now they are looking at 500. apple, right now, is around 402. >> i do think it seems like it has been beaten down. short term, a lot of people will be disappointed. if you are thinking long term, i am more excited about down the line. we are all waiting for an apple television which may not be until next year. if you are in it for the long-haul, i think you should be patient. stuart: the apple television. give me fox business and it will
work? >> and i carved, you couud sit in your driveway and go to a drive-in movie without leaving your house. stuart: we are talking about whirlpool. nicole: they came out with decent numbers. the durable goods numbers that came out are atrocious. we are seeing a slowing economy, a cooling economy. the global growth story. this is why you are starting to see the durable goods number came in week. stuart: there is somebody around this table who refuses at this moment to make eye contact. he just will not look me in the
eye. his name is charles payne. charles: it is pulling back from all-time highs today. this is what i like. i know you think the rest of the world -- during the quarter, and latin america, they issued a new wine cellar product. thirty-one models goes into this. it has two different temperatures and different compartments for different kinds of wine. stuart: it will boost. charles: it is just a story. if someone can afford to buy a wine cellar, the company is not doing so bad.
[ laughter ] stuart: senator rand paul. he has done what i am going to call a reversal. >> if someone comes into a liquor store with a weapon and $50 in cash, i do not care who killed him. stuart: is that a reversal? judge andrew napolitano will join us later this hour. what did the senator say to the judge? find out when the judge joins us a little bit later. moving forward with an internet sales tax? here is what the illinois state treasurer told us earlier this week. >> it is not just the idea of the revenue that comes in. it is really an abundance, fairness issue.
it is for the property owners, the land owners. this really gets down to a fairness issue. stuart: that was dan rutherford on this program on monday. this sales tax is a fairness issue. our next guest disagrees. >> anybody who tries to pitch this new tax as a fairness tax is not telling the truth. it is a money grab. it is a money grab by states like new york, illinois and california. it is another obama tax on the middle-class. it is another tax on entrepreneurs. it is a job killer. stuart: the state of illinois is one of the most insolvent states in the nation. you are desperate for money.
you do not think and internet sales tax would help on the money side? >> i think this is a great example of looking at where the u.s. economy is headed just by looking at illinois. the state government said it would raise $150 million. we checked after three months and all he raised was re- million dollars. a huge failure. the reason why is because online retailers left the state. they went to places that are more friendly. the small guys, the entrepreneurs had to shut down. we had a job killer. we did not raise the money. stuart: you think that the senators representing the state of illinois will push forward?
>> this is just another money grab. they will talk about fairness. it is just a money grab. that is all it is. stuart: i am with you, sir. thank you very much, as usual, for joining us. conservatives running the ultra liberal west coast newspaper. it is not too good to be true. the coco brothers buying the l.a. times. can you imagine that? i will tell you why in a moment. ♪
♪ stuart: apple stocks all over the place. up, down, actually, it was down and then up. we are down six dollars. apple reported a drop in profits. it does not have any brand-new products on the horizon. not good. down goes apple this morning. kfc sales were reduced in china. twitter now reportedly testing a two-step solution that would reduce the risk of hacking and twitter accounts. incremental rollouts are expected soon.
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that is a stretch. sequester cuts. charles: it also underscores the idea that private industry has created all of these products. stuart: he is saying a 2% cut will cost us a cure for parkinson's, cancer and aids. unbelievable. democrat senator will not run for reelection next year. i say that is good news because he will champion tax reform. lower rates, fewer deductions.
♪ stuart: if you want to scare the newsroom of a big city newspaper, you tell them that conservatives will run their shop. that is what happened to the l.a. times when it was reported that the cocoa brothers made by the l.a. times. here is my take. buy it, boys. buy it. run it. take back what has been lost. i am gung ho in favor. first, the current editorial policy is far left. that has got to change. california has been ruined by those policies. los angeles is specially needs
and editorial shift. it is the home to hollywood. it is the power base, along with san francisco, for democrats who have thrown the entire state behind and antibusiness venture that has affected us all. if they ran the l.a. times, they could put some backbone into governor brown and push him towards racking for the oil wells. i know this brings a chill, but it brings joy to my heart. i got my start in television and california. it was the golden state. it could be that again if california drills. i come up for one, want them to buy the l.a. times. do it. please. help california become again the golden state. ♪ n a second.
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report. they easily beat analysts estimates. the profit up 20%. it is adding 22 positive dow points. a positive story here for boeing today. stuart: reuters says that ethiopia airlines will be the first airline to bring back the dreamliner into service on saturday. it is, by the way, adding 24.2 the dow. we have ignored the decline in whirlpool. charles recommended it earlier this year. instead, we will make money with another company that charles recommended. it is lumbar liquidator. charles: i featured on this network at $53.
it is pretty simple. stuart: did you come on this program -- charles: i told people to buy this stock. the reason why is pretty obvious. we have been watching these existing home sales. existing supply went from 3 million to less than 2 million. the gross margins with to over 40%. the guidance is well above wall street. they will open 35 new stores. this is a two-three your story. the market gets hit one day, this stock pulls back, you have to buy it. stuart: they make the hardwood floors. charles: one guy comes up with an idea and it is absolutely phenomenal. stuart: i sell lumber and timber from tree farm. it goes into hardwood floors.
senator rand paul made headlines earlier this year. the senator, maybe he has changed his mind. here he is talking about drones with neil cavuto. >> if someone comes into a liquor store with a weapon and $50 in cash, i do not care if they drone kills him or a police kills him. stuart: is that a reversal? judge andrew napolitano is here. you talk to senator rand paul this morning. >> he called me because he was concerned about the misunderstanding that exploded overnight on the blogs and the website. the take that deal did on midnight.
the answer is an unequivocal no. the filibuster feels like targeted assassinations about the president picking and choosing who to kill in the u.s. or elsewhere who have not received due process of law. they have not been charged or convicted of a crime. that is the essence of the filibuster. yesterday, when he used the cliff that you just rant and set coming out of a liquor store with a gun and 50 bucks, he probably should have said coming out of a liquor store shooting and with 50 bucks, if someone is using a deadly weapon on police or the civilians, though police can use a deadly weapon and which to repel that person. the senators concerned has been
killing without due process. having said all that, there is a real value issue here. do we want drones all over the place. some of them will be the size of mosquitoes. my opinion, you need a warrant for that. without a warrant, police will use them to look at you in your bedroom or half -- hot tub. stuart: wasn't there a question whether you needed a warrant if you are flying in a helicopter looking for marijuana. >> the answer to that is a little subtle. for marijuana, yes, you do need a warrant. if you are the government looking for marijuana on the varney estates, you do not need a search warrant. if there was a business that the government regularly regulated, it would not need a search
warrant. stuart: talking about a guy coming out of a liquor store. that is different. what you need is some kind of authority to shoot him with a drone. >> if he is shooting at the police, you do not need any additional authority. if he is shooting at a cop, bad cop could chew back. the question is, do we want society filled with flying pieces of plastic that can watch us and kill? it will only happen if the government prevented. stuart: i think the argument over gun control should be argument over rome control. >> is that governed do not have the authority to own drones,
then how can the government own drones? private individuals will have drones to shoot down the government drones in their backyard. do we really want a society in which that happens? i would argue one step beyond the senator and say we need or than just a consensus, we need a judicial authorization. stuart: we have run over time. judge, it was good. thank you very much, indeed, sir. maybe it is possible. we will do a tax reform in a moment. ♪ copd makes it hard to breathe...
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and that's a great thing. but even though we're living longer, one thing that hasn't changed: e official retirement age. ♪ the questi is how do you make sure you have the money you need to enjoy all of these years. ♪ >> most headlines are focused on the hours in airports across the nation, across the economic effects of the delays should not be minimized, but the sequester could cost the country and human kind a cure for aids, parkinson's disease, or cancer. stuart: i got to emphasize what senator reid just said. that the sequester cuts could cost us a cure for cancer, parkinson's, and aids, i believe he threw in there.
a republican from kansas, you heard what senator reid just had to say. i'd like your reaction, please, sir. >> good morning, stewart, the first i heard that quote. what a load of crazy. what really puts risk to finding the solution to that is the affordable care act. talk about taxes on medical devices and driving innovation out of the health care market space, i don't think there's anything that equals that, but we heard this on sequester before. we heard the threats. we heard the outrageous and bombastic things to follow from what is the mosted mooest -- modest dereduction in spending we purred through, and this is another in the long line of the comments. >> well, thank you, i didn't mean to spring that on you, but he literally just said it, got the tape minutes ago. i wanted your reaction. we appreciate that, thank you very much, sir. moving op to tax reform. senator baucus will not stand for relix devoting the next 18 months in the senate, a powerful
guy, chairman of the senate finance committee, pushing for tax reform, lower rates, fewer deductions. that's terrific. a shot of tax reform. your comment on that? >> well, i hope that's true. i wish him a happy and enjoyable life, created the affordable care act, but i hope he works hard on tax reform. if we get rid of the special interest deductions, those buried in the tax code, we'll have higher economic growth, more job, and a tax code that is simper and fairer for everyone in america. >> you are critical of senator baucus even though he said the other week the implementation of obamacare was a train wreck, his words. you're critical of the senator. >> well, senator baucus is the one who is largely responsible for the american people suffering under the affordable care agent right now. i mean, we're months from implementation. it really is a 0 # --
2014-15 program, and the outrageousness of senator baucus sitting in fro of the former governor saying, hey, i just noticed the affordable care agent is a train wreck is deeply disturbing. this is a gentleman who twisted arms, hand r handed money to certain senators for things in the states so the affordable care act would have enough votes, and for him to suddenly realize if he was just dropped in from another planet that the affordable care agent is a train wreck is just a little too much to take. >> representative, republican, kansas, appreciate you being with us today, sir, and responding quickly to mr. reid's statement. appreciate it, sir. thank you. >> thank you. >> you're not going to believe this. ha-ha, a harvard academic says fracking is good for the environment. yeah, from harvard. he'll make his case next.
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♪ >> i think we're establishing a new normal for gas prices. not much movement overnight. a gallon of regular at $3.51. that, by the way, down 15 cents for the mounted, but plateauing there, 3.50, the new normal. price of oil at 90 a barrel. maybe the decline has ended. dismal, durable goods number, down 5 fpt 7% in march, biggest drop in seven months.
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>> governor jerry brown sounds like he's strongly considering going after the state's huge oil reserve, and california radio host, larry elder, says he thinks the governor will go ahead and frack. listen to this. >> we're talking about 500,000 jobs to be created in the next two years, and we're talking about a state that running annual deficits of $20 billion. imagine what they can do with all this money. they won't have to go back on the welfare state or have the cuts they are having. >> interesting. joining us is jeff, the harvard professor who says fracking is good for the environment. welcome to the program. good to see you back again. >> thank you, good to be with you. >> 30 seconds on why fracking are good for the environment? >> there's qualifications, of course, but u.s. emissions of co2, carbon dioxide, are down
12% relative to the pam in 2007. this is unanticipated. we department sign the protocol. europe did. what's the reason for that? well, the fall from 2007 to 2009, you could say that's because of the recession, but it's still declining, and recession ended in june 2009. we've been growing since then, much more rapidly than europe, and yet, grown house gases fall, and europe's turned around after 2009. the reason is because of shale gas, which has been a natural gas recovered via what's called fracking, use of natural gas in power generation up 37% in the u.s., and it comes at the expense of coal. that's a fact. it crowded out coal. half the greenhouse gas of coal. >> we're not used to this. you're a harvard professor. >> i know. >> we think you'll be way out on the left opposing fossil fuel of
any kind at any time. what you say is if you replace coal and oil, to some degree with natural gas, you will, in fact, bring emissions, co2 emissions down. that's why you support frack, and i think that's the argument in the nutshell, is it? >> yes. first, there's a lot of conservatives at harvard. >> no, there's not, come on, professor, i don't want to get into an ideological argument, but you can't tell me there's any conservative at any elite university in the united states of america outside of the engineering department. >> in the economics department at harvard, the ma crow economic is reagan and bush are with us, majority of the macroeconomists are republicans advised republican presidents. i'm not one of them. you're right about that. [laughter] >> you're honest, that's great. hold on a second, do you think that fracking is dangerous to the environment in sense of polluting ground water supplies, for example? >> there are risks, no question.
some fears environmentalists have are grounded in reality, fear of earthquakes things. these are not -- these are not totally wrong, and they do call for appropriate regulation, it's not zero regulation, but the right answer is not extremes, somewhere n between compleen banning like france has done and zero regulation. i'm saying that even if regulators screw up and a western state lets them run wild and a fracker is irresponsible, you know, probably something will happen that's bad, but compare that to what would happen when there's, you know, the deepwater horizon disaster in the gulf of mexico. what happens with coal mining accidents all the time and fukushima with nuclear power. in my view, the overall risks, while they are there, they are no greater and probably less
than certainly coal, which is the relevant rival. >> well, jeffrey, harvard professor, come on this program any time you like. seriously, we appreciate your very objective judgments here in a very contentious and important area. professor, thank you very much. >> happy to do it. >> thank you. completely different subject. listen. florida could be one of the first states in the country to overall the alimony system, no more lifetime alimony. i tell you, this is a big change. we'll consider it in a moment. ♪ this is america.
>> charles recommends broadcom. >> they reported last night, i've done it on the show before, the numbers good. you know what, they were okay. this is still a broader, in pun intended, play on tablet smart phones, key positioning by the company, good numbers, and the stock was under pressure. >> what do they do? >> chips, communication chips. tablets, smart phones.
>> recommended them a couple weeks ago, months ago, whatever it was. >> up a buck op it. >> that's it? >> yeah. >> new legislation in florida could end lifetime alimony payments. florida lawmakers passed legislation last week that sits on governor rick scott's desk restricting alimony payments for longer than half the term of the marriage and lets 5 judge adjust existing contracts. all right, liz. some people call it anti-woman, but, you know, women pay alimony to a guy in the divorce situation if they were the breadwinner in the couple; right? >> you is a that with roseann barr. they had an alimony fight. judges in texas, kansas, and, you know, montana can restrict alimony. i personally feel it's up fair to a lot of men out there to pay for the duration of, you know, throughout their lifetime of the woman, and they also go after
the ex's spouses money making it difficult to retire putting pressure on social security too. >> marry the for 20 years, divorce, one of the parties only gets alimony for ten years, that's the florida law. charles, what gets me is it's retroactive. a judge can go back into an existing divorce contract and readjust. that's a big deal. >> you think people move to florida now, wait until this goes through. i want to piggy-back from liz. the way the current system is set up hurts kids a lot. a guy gets behind in alimony, can't go to the house, afraid to see the ex, doesn't see the kids. there's issues with this. the way it's set up know, social engineering is designed to keep people married, and it backfires miserably once they don't work out. that's a human impact, i can't qualify how much it means economically, but i know there's
a lot of guys out there. >> this is separate from the child support this issue. >> you don't pay alimony, you don't go to the house because you don't want to be yelled at, don't see the kids, it creates a problem. >> the old idea that marriage was the foundation of america. >> right. >> watch out, dangerous ground. >> i agree with the idea. people look at the direction we're going on in in the country. they think it's old-fashioned. i don't, but a lot do. >> there is no highlight reel today, but there is one sound bite to replay. it's called the bite of the day. you'll hear it next.
could also cost the country and human kind a cure for aids, parkinson's disease, or cancer. >> that was the leaders of the united states senate saying a 2% cut in spending means no cure for cancer or parkinson's. liz? >> senator harry reid, a piece of what the senator already said, in other words, the seven soldiers killed in the training exercise in his home state, blamed that, too, on the sequester cuts. >> extraordinary, the leader of the united states senate, majority leader of the united states senate, and he is saying that if you cut 2% of the budget, might cost us a cure for cancer. that is extraordinary. >> dispickble considering who he is and what he means to the country, it's a lie, and pushing forward an idea that all these things that happen in lives, cure requester aids, parkinson's, and aids came from government. you know, it's perpetuating the idea that the free market has not played a role in those areas. he's getting a three-for with
the comment that's outrageous. >> and dismissive about the time spent with air travelers stuck on tarmacs across the country; right? he's dismissive about that too. >> i think the problem for him is that that's not enough. in other words, still, they hope that the public relations needle moves, and people are experiencing delays like they normally cernes delays. that's not enough to create outrage. how do you throw an outrage bomb in there to get the public on your side? go all the way and say this is going to kill people. >> it's test praition. i think they are losing the pr battle. >> yeah. >> the president said the sky is falling because of the sequester cuts. it is not. harry reid trumpedded that with no cure for cancer because of sequester cuts. you lose. you lose the argument. >> said two cents on the dollar; right? >> sorry to cut it off, but thank you, charles, liz, time's up. dagen and connell it is yours. dagen: thank you very much. connell: talking today about the twitter flash cra