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tv   Varney Company  FOX Business  August 5, 2013 9:20am-11:01am EDT

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♪ imus in the morning >> good morning, "varney & company" viewers. today is monday, august 5th. i'm charles payne in for stuart. we've got big headlines for you, first up, congress makes the loans and turns out the government took in 51 billion dollars from the loan business in 2013. oh, and that's more than the event exxonmobil, which only made 41 billion in the pre-marketment and then there's this.
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no new net jobs created for americans. and what happened to the summer gig? and 162,000 jobs last month. the vast majority of them are part-time. can we take the war on success. avalanche of new regulations and obama care. more young americans are living at home. are you ready for the new normal under the obama administration? "varney & company" is about to begin. you know throughout history, folks have suffered from frequent heartburn. but getting heartburn and then treating day after day
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>> we've got a terrorist threat update. at least 19 embassies and consulates will remain closed through saturday and that's due to what the state department calls significant and detailed ip tell against of possible terror attacks. and so far clues are pointing to al qaeda. congress is tooting its own horn for passing a bill that will cut the student loans and get this, the low rate only applies to students borrowing
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5,500. or borrowing at 6.4%. and the estimates that the government will generate 51 billion in revenues and these are profits from student loans in 2013 and that's a lot more than exxonmobil. they made the money in the free markets. >> and a lot more than apple and chevron are making and a lot more than the four big banks combined. essentially you're seeing the cbo saying that the student loan money coming into the government. 110 billion by the time the president leaves office. >> the thing, the messages, the narrative that president obama is fighting for kids and forgive their loan. he's made 100 billion since he's been in office and he'll make another 100 billion. 185 billion dollars, to your point, a cash cow for the government. >> it's going to basically open up the white house to criticism. he said let's forgive student
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loan debt. when people say we're creating more boomerang kids staying at home because they can be on your parents' health care insurance until age 26. that's where the trend is lying, charles. >> this is a huge story and we're not going to let it go. you've got to understand the ramifications for it. and the gains for the dow, the question, will it go higher with the earnings season going down and what's the next big item, what's the catalyst? you're going to find out, the opening bell is next. [ male announcer ] these days, a small business can save by sharing. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] space. yes, we're loving thihs communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business.
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[ woman ] can't regret fresh. >> we're less than a minute from the opening bell. and joining us is the company. scott shelldy. they're talking about the dismal jobs report on friday. here is the question for you. what's going to move the markets from here. the catalyst that feels like the summer doldrums set in all of a sudden. >> well, good morning and welcome to purgator why: last week, we were supposed to get figures and a clearer picture where we stood and guess what, it's much more
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cloudy and going forward we're going to continue with the same. the same is that the fed is pushing the inequities, and that's where you can put your money and expect the return. and it's probably going to levitate higher and everybody comes back fresh and ready to go. >> i hear you. as long as we don't crash between now and then i'll take it. the opening bell is going to the point. a record amount of money rotated and 40 million, and a lot of money out of bond funds and maybe the great rotation has begun. we wan the session down here a little bit. 18 points on the dow. speaking of profits, really big profits, and nicole, how do the shares fare? >> the stock is up 1% at 119 bucks and change and this is obviously the deals of the businesses across the board that berkshire hathaway is running and owning to a certain extent and you're seeing them
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doing so well. there's been revenue gains across their businesses and really a great, great move there. and like burlington northern, for example, they're big in railroads and that rose 10%. overall, berkshire hathaway rose 46%. >> also, nicole, i went through the numbers quickly and operating margins, insurance 12 1/2%, railroads, almost 22%. and not having the keystone built helping warren buffett out a lot. thanks a lot. nicole. >> speaking of good news. good news for apple after the united states vetoes an important ban on the iphones and ipads put into place. and show you how apple has fared. >> and really, it's been great news for apple and they want them out of their hair and the worry about patents and the like and what you had was the u.s. trade representative saying listen, of the ban that was put in place, number one,
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affected the competitive that in the in the u.s. and economy and also affected the u.s. consumer and they weren't going to be able to get some of the older iphones and the like, so, that's why they were not hot on this decision, early decision and overturned and the obama administration actually overturning that. charles: and i guess if somebody is skeptical about that-- thank you, nicole, come back soon. market watch wants to know if the emporer has any clothes. are corporate profits growing fast enough to support the higher stock prices? we want to bring in the market watcher keith fitzgerald. what do you say on this? >> well, you know, i think they're on to something and we've seen the financial company's report and they've been primary beneficiaries, and we're going to see the consumer stocks report in the next few
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weeks. markedly lower, and the financial guys turn in so far. >> what about the notion, keith. maybe the so-called great rotation, and the funds coming out of bond funds, because stocks are the only place to go? >> i think there's a lot of data to support that. what i don't see is how the average investor is playing along. i see them making-- the institutions are not falling for the high jinks that potentially brings to the intersection stumbling block. >> or you could say they're doing what they want for them to do. nothing better than a dow 16,000, a green light for a lot of people. >> psychologically it is. and the question of course, are you making intelligent decision or changing the train that left the station and i hope it's not the latter because the individual investors are very
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smart. and this is one of the areas, concentrating on the big decisions can beat wall street at its own game. >> i was a rose colored glasses kind of guy and i was hoping when the bernanke sort of gave the hint they were going to have the market pull back. we've got like a 5% correction, does that mean the next correction could be bigger than most people expect? >> that's always a risk, charles and makes sense that way and because we haven't had a good cleaning, we've needed that since the crisis began and the feds haven't let that happen. every central bank in the world is fighting against that and that's a good thing because we can sustain it longer. >> absolutely. >> and i like buying on dips myself. you're fantastic. we will talk to you again. we've got to bring in the man himself.
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art laffer. how long can we bump along like this. >> talking about the economy at 1%, 2%, and what are the pitfa pitfall? if we grow at this rate we're not vulnerable to a pullback. it depends on whether we'll change our political structure or not. if we keep those in place, they have been in place through the w administration and through obama, it could last for a couple of decades. i don't expect it will. if you remember, johnson, nixon, ford and carter, we have that 16 year period where the market in real terms dropped 75%, where we had no growth, we had just an awful 16-year period coming up to ronald reagan. >> more than half the jobs reported in the first half. were in the part-time jobs. that's partly why median income and households across the country have been declining or dropping, and if the administration and the congress missed the boat here, the u.s.
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economy always restructures itself. we're talking about jobs being created now, mostly in retailers, home health. that pay may be $16 an hour, go ahead. >> you're completely right, lizment there's been a lot of part-time jobs and worse than that, they're involuntary part-time jobs, they're not voluntary. you see the involuntary employment rising. so it's been a weak slow, sluggish performance in the labor market that's making no progress whatsoever. we are in the single worse recovery in the history of the united states following the second worst recession, depression, so, it's a terrible time in the economy and what you need is a little bit of reagan supply economics. >> we're not getting that and that's bringing it back to the initial question. confidence is beginning to slip. we're a nation of part-time jobs and does this create a risk to the economy itself and can we implode on what they call the economic malaise?
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>> yeah, we can. and i don't think we're going to implode. thing we've already imploded and what i worry about are the people we've lost forever. and these people who haven't been employed for six or seven years, after being unemployed for 6 or 7 years, they become unemployed. after being unemployment for a few years, they become hostile and then you have to spend the money to protect yourself against them and we've lost this whole group of people, in our society. that i don't know how we ever bring them back. and you need beginning jobs to get people all the work ethics and the stuff going, and that's just not happening. and especially in our cities. and that's just tragic, as far as i'm-- we need enterprise zones, a flat task and free trade and minimal regulations and get the heck out of the way and let this machine take off on its own and that's not obama and sure as heck wasn't w either. >> i've got to tell you, art. some might say, stuff hair cuts
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like the ones you have-- we'll talk about that. and i love you dearly, you two are a great combination by the way. and you guys are great. and everything you said you were weeking from the heart. we appreciate it. let' get back to the stock market i'm going to try and find you 7 early movers. whole foods has an upgrade this morning and williams the new target 64 the old target 53. and a beatdown, river bed and oppenheimer says we like it as an outperform and canadian solar, a lot of people don't like solar, and they keep getting contracts and they signed a deal to sell five solar plants to sell, and a thousand 40, sounds look an odd number, but that's what j.p. morgan says the new target is. and 22 buys, only 18 buys and everyone is jumping on the band
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wagon. and facebook picks it up. a 46 stock not $38 stock. and tyson, beef and chicken through the roof and a new 52-week high and lloyd's banking, 70% of the earnings out as dividends by 2015 and a lot of people looking for that and it might fit the bill. look at the big board. down 46. a very, very mundane open, not necessarily news driven, but maybe an indifference. we'll get back to that. not too many places left to lineup anymore. which i'm kind of happy about, the cigarette makers are counting on it, and e-cigarette maker joining us next with a billion-- that's right, billion with a b dollar industry. that's next. ♪ (announcer) scottrade knows our clients trade
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>> all right. let's check the big boards. not a lot going on, down 54 points. hanging above 15,600, barely. time for your morning gold report. gold stocks are looking interesting. they're up higher this morning and trying to find out why that's happening. in the meantime, the e-cig industry, r.j. reynolds is getting in on the craze. and the president jumped ship after 18 years with the big tobacco industry to get in on this. when did you sense this was a big deal, i'm going to give up a 18 year career with the big boys to get in on this? >> well, i think i've seen for a long time with cigarettes, it's an incredibly booming
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business and a great proposition for the retailers and the wholesaler and importantly the consumer. >> and all of a sudden, overnight. it felt like this became a gigantic trade. the technology is in a great place and if you compare this to traditional cigarettes, business declining, the growth has been explosive. >> when you see that hockey stick, wow, way off the charts, you're on the leading edge of a huge trend. how big could this get in comparison to another sector? >> the analysts have it in the next three to five years, potentially between 5 to 10 billion and in perspective, 10 billion a year is the same size as the u.s. energy drink business which had its own explosive growth. so if the u.s. cigarette business is 80 billion. in a short period of time. it could be 10 billion. it's tremendous. >> it's tremendous, and also, when you start talking that kind of money, your friends at
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the big tobacco company start to come at you guys. this is where i see it potentially, help me with your potential hurdles, the young companies, the startups. big business coming in and regulations may be coming out of left field. and with starts with the competitive nature of the business. are you worried some of your former friends coming at you? >> no, when they come in, itts going to raise consumer awareness and legitimate the category on a national scale and logic has a lot of advantages and the products, extremely high fault and the margins that we offer the retailers are 40% plus, and the most recent nielsen data. logic's positioned well to have great relationships with the retailers and the wholesalers and that's how you grow a brand. >> how you grow it. they're going to say we want more shelf space and what about on the regulation side?
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some people say there's not much difference. >> they contain some nicotine and some say they're as hazardous as the secondhand smoke and the other things that a traditional cigarette might pose. let's level the regulation against them. >> i'm not a scientist, but it's inherently a different product. as long as they take a signed staged approach and a thoughtful approach which is what they're good at. they'll have a great future recordless what the regulations loor li-- look like. you probably want the exit strategy. some say they need a guy like you to dress it up for a possible sale? >> that's not my objective. my objective is to grow it and put it in every store so every consumer has a chance to smoke logic. charles: wall street, watch out. you've got a new enemy, a good
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looking one, george clooney lashing out. is he biting the hand that actually feeds him? that's next.
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join us at
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>> george clooney slamming hedge funds, and he talks about
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his experiences with hedge funds managers and their lack of accountability. quote, it is a business creating wealth where, when they get bailed out where nobody gets fired. however, this comes with an assault. and clooney's company is headquartered at sony and the hedge fund manager is buying the sony stock and pushing for the can p to move in a different direction. clooney does not like that direction, e-mack, hence the problem there. in my mind clooney would talk about accountability when hollywood churns out terrible movies year after year and they still get $20 million. >> and clooney doesn't mention the subsidies from the government and with their tin cup and more to boost the bottom line or they threaten go to canada and not here in the united states in order to get the tax credits.
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you can't move an oil well, right? you can't move fixed assets, but hollywood is threatening that. and clooney doesn't like that compared to ishiptar and water world. and at the end of the day, i get upset with the hollywood policy i can churn out dud after dud after dud, take top dollar and 400 million in breaks and everyone has a shared sacrifice and still talk about accountability. that part i don't like. i will agree, some of the hedge fund managers think they're masters of the universe and i don't think that he knows more about the-- >> you're right, i agree with everything you just said, but when you have white house down and these other mega flops with sony's quarterly profits are also down, i mean, clooney is saying what about skyfall?
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sony's profits have been in freefall, overpaid executives and do something to fix it and make money. >> that part is 100% true. we're going by the movie scenes. they pay people to stand around with hot chocolate. that's the lower end. the upper end. you wonder what is the accountability and how can they churn out miss after miss, a large corporation that probably traded with shareholders who really have the business and-- >> it's interesting you bring it up. dan is saying spin off that picket. and make it publicly traded so you will have accountability and better profits. >> clooney, if you think you're so hot my man, spin it off and you run it. >> and you mentioned smokehouse, and clooney's unit is at sony and doesn't like that either. charles: unemployment is obviously still high.
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we've got stepped economic gret what is president obama to do about this. a speech to push the economic agenda and we're going to arizona after the break and talk about that, and we could be hours away from finding out alex rodriguez's fate. even if he's banned, he'll still play, collective bargaining. it's a huge story up next and more. [ male announcer ] imagine this cute blob is metamucil.
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spain in for stuart varney and years and we have another hour of "varney and company". president obama continues his economic pitch this week, the latest campaign style event attracted phoenix to bush's efforts on housing and a few thought detroit was the exception think again, we are talking trillions of dollars of debt ended all comes down to public workers' pension. alex rodriguez will still take the field, he can think unions and collective bargaining and youth unemployment, don't worry, you can stay home with mom and dad. all that and more on a fresh hour of "varney and company". let's check the big board. we have been down 56 points. one of our big things today, the question is profits, can they
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keep pace with stock prices. liz: the bulls are seeing corporate earnings have to pick up steam for the market to charge even higher, we are looking on track for 4.7% growth in the second quarter and analysts expect 4.8% profit growth in the third quarter, ten.7 in the fourth. peaceably like we have seen in june, the june swoon the past three summers we see a juice. you can see a solution we are not seeing it yet, the market is up 1% for august. charles: i got to tell you so the audience knows, not manufacturing data from the service part of the economy which is obviously the overwhelming part, 56, the street was looking for 53, a small move in the dow right now but it was a positive number. will quickly wanted to say we have been waiting for the spring swoon, summer swoon and i got to tell you stocks have been given the benefit of the doubt, corporations have been, earnings pickup and so far the of not picked up, they beat the
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estimates but have not grown at a pace that would probably legitimized the rally. liz: we see an aug. one, we could see a sept. one. let's wait and see. charles: profits did triple at a big name you know. tell us about pricey food. nicole: the largest processor came out with great numbers. look at the stock up nearly 4% charles, in some new highs, some new record highs so that is good and also the winners of 50% why did the do so well in the latest quarter, third quarter profit more than tripled, revenue also rose 7%, chicken sales up nearly 11 costanza of the release of the demand for chicken and beef and that made up for the drop in sales. charles: i think i deserve some credit. i am waiting for a call from the ceo of tyson. president obama is on the campaign trail again, this time headed to phoenix, arizona to give a speech on the economy and
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housing. ironically since home ownership has dropped to anything year low. republican from arizona joins us right now from scottsdale. we all know arizona was the hotbed of real estate, shot through the roof when the bottom fell out and you were hit harder than anyone else but what do you think the president will say or do to change what is happening right now? >> one of the great ironies is arizona is back. our housing market has gotten much healthier and something somewhat unique. we were doing a study or office. areas like arizona that didn't have a lot of governmental intervention whether the market was able to work out its bad debts are coming back. parts of the country that had lots of government intervention are still in the doldrums. charles: doesn't speak beyond the housing market when an
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economy looks beyond the housing market it looked like a boom mentality, to your point at without government intervention the state of arizona was able to operate, rebuild jobs, businesses moving down for years and that led to a quicker recovery. >> we have 125,000 migration into arizona and we have to think california for is that. one argument we are trying to make is places like arizona with very eat fish and foreclosure systems and it is a horrible thing to go through but it also helps the market come back much faster and places where we have done foreclosure moratorium sandlots of government intervention you watch their recovery and it is much slower than the places like arizona. charles: glad you brought that up. the narrative in the midst of the meltdown was that
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republicans didn't want to do anything. the president says i will do something but if we are being honest sometimes some of this intervention slows the inevitable, makes it longer, more painful and could even make it worse at times and rather than letting the free markets do what they have to do and a lot of pain in a short period of time. >> you nail the end of the president really care about housing we would have a much more honest discussion about community reinvestment and does it create such levels of market distortion that in our attempts to help people we reach into parts of our neighborhood and literally forced loans on folks that really are never going to have the ability to pay them back and by creating markets for that type of debt to end of creating cascades of bad things for all of us. charles: i don't think you'll get a rihanna discussion on the community reinvestment act. i hate to say it but i don't think so. before, you bell wants to go
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back to friday's jobs report, we have a gdp of 2%, a job did that seems to be overwhelmingly driven by a part-time jobs and some say this is the new normal. is very anything that can be done in washington to change this? can you do anything other than gridlock to fix this? >> the president would have to stand up and be honest about the effect obamacare is having on the economy and a lot of the other regulatory policies that i believe are studying real economic growth, and job society and a lot of that is government policy. charles: not because of government policy but gets back to washington d.c. and feels like nothing has gotten done at all and the ideologies are so pervasive, it is harsh rhetoric from both sides of the aisle and what happens is some leadership
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steps up and says we got to get something done, got to get the public to believe in us again. >> one of the stories that has been underreported is in the house we have been doing our work. we put out everything from bills on immigration to economic growth to dealing with some of the crazy regulatory environment out there and we are looking for a partner and the democrat side in the u.s. said it. charles: that has been underreported but i am glad you put it up. the president visiting last week, feels like maybe he is starting to go after the red space out there and the speech he gave recently sounded like he could drive a wedge through your party, there's a lot of political infighting, could that be possible? could your guys be vulnerable? >> can i give you a different theory? the president's campaign style
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activities have more to do with distraction than to create a political wedge. when you call them fix candles or things to avoid dealing with this reality, what has this president done over and over? this may be the nineteenth time the president has pivoted back to the economy and jobs and in many ways it is done as a distraction from his own record. charles: a basketball plan was a kevin mchale got into this. >> maybe able different, that type of have that. charles: it is a tough thing and we have to report it every day and we need you to continue to battle. i appreciate your time this morning, appreciate it. the you. looks like the new york times watches "varney and company". the left-leaning paper just publishing a story on cutting workers' hours because of
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obamacare. we brought you this story because of one person liz macdonald. liz: the time to say unions don't like a cadillac tax in obamacare and the new york times reporting this cadillac tax will hurt our benefits for collective bargaining. it is doing away with the need for unions and obamacare, you need certain types of coverage would you need unions for? the other story line is ci and towns, and we may put you on part-time basis and essentially that will hurt a lot of gym teachers, coaches, cafeteria workers and city workers and public works and parts and recreation in city jail, this is a leading edge of the trend. charles: union workers thought they would be exempt but they are not. the big headline from friday was the jobs report. there are two surveys, an
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establishment that house survey which found no new jobs are created for people age 16 to 19, democrats depend on the use vote. of the democrats get young people back to work will the use abandoned them this next election season ticket democratic strategist joins us now. i got to tell you this is astonishing, july, where is the summer jobs for these kids? >> put it in context, 16 to 19 makes of 3% of the work force and 24-year-old sector had a big part of the percentage growth but you are not wrong. there is a significant difficult job market for young people but the reason young people are sticking with the president and voting for him as opposed to republicans is he is presenting a vision for how to put them back to work and invest in them and programs that help them as opposed to republicans whose vision just seems to be cut for
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millionaires and billionaires which is not inspirational to young people. charles: i will agree the president is fantastic articulating a message for young people but here is the problem. to a large degree he has fooled the republicans. when mitt romney says president obama will forgive your student loans i thought that was the wrong tactic. it would be better to say president obama will make $51 billion off of students who are going to graduate with diplomas into a job market where there are no jobs, he is crushing you, not helping you so i think the president presents a vision but the reality is here is the thing, in reality what is programs going to help young people? >> one example. republicans for the 40th time of tried to reveal obamacare and obamacare lets you stay on your health care plan until 26 and allows them cheaper individual -- liz: i understand what you are saying but what charles is saying is the president makes
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empty promises a we are going to wipe out your student loan debt and gets the younger kids's vote but at the same time creating a whole class of boomerang kids, you and stay on your parents' insurance until age 26, you can have your baby boomer parents pay more than half your daily living expenses, pugh put out a study almost a third of the cash flow going to the boomerang kids who are living at home comes from their parents, but in a lot of pressure on the parent. >> no question nancy that is why you need to invest in jobs for young people and you need a balanced program that doesn't just cut government and that taxes but also invests in tech jobs and education jobs which young people need. charles: i find it to be interesting because i don't think you do people favored by saying go live in your parents' basement for the next three years, many skills you have developed deteriorated, never get the wherewithal to hit the bridge and look for job, never learned to be independent, are you doing them a favor or making
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it worse? >> note 23-year-old 424-year-old wants to be living in their parents' basement. they have it tough, no question that have a tough economy they are facing. what they want to support, not just a part of it saying no over and over again and it is reflected in their support for the president versus support for republicans. charles: 20 one million people living at home is a record and you are right, the president wins the battle with rhetoric but i don't know why young kids don't look around and say this is not for me. >> the real programs too. charles: one of my favorite topics, watches. downgrade the stock, what is going on with that? nicole: we are taking a look at stock to the downside for fossil down nearly 4% today as barkleys is looking closely at its quarterly report due out this week, barkley's downgraded fossil to underweight and of the report saying their checks indicated sales of fossil products have grown, watches and
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the light and other accessories and such. obviously they face competition with google trend search and so it is not good news for what we are seeing for the broader weakness and that is why they cut their price target $15 to $100 now. charles: not good news and i love my watch. i have a question for you. which debt ridden cities shaping up to be the next detour and could and entire state be the next detroit? the answer for you next. [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built onn ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises?
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charles: news alert, homes in louisiana evacuated after a train derailment spilled flammable and corrosive chemicals 60 miles west of baton rouge. louisiana governor bobby jindal says authorities are investigating the crash and determining the extent of the damage. another headache for detroit and it might have to wait until after halloween to see if it is allowed to file for bankruptcy but guess what, america, detroit's distress may be on your doorstep soon. our next guest says you combine other states and city tensions you would get on number, see that on your screen? $4.6 trillion? joining us is matthew from the
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commonwealth foundation. it is interesting because we do look and say it for the detroit. i don't think people realize they are sitting on something very similar. >> this is something that is going to happen in cities and states all across america. what we see in detroit is a precursor for the fiscal calamities that are going to occur because of unsustainable pensions and unaffordable health care costs. these have added up and we will have to pay for it one way or the other. liz: we are talking about is pensions, what we haven't talked about are the health benefits owed to government workers. i think the american people, the viewers think of themselves we are and are breaking point with property taxes and we won't pay for necessities have to merge with each of the. we are seeing that in california where cities are merging to take care of the cost of urban sprawl which is too expensive and doesn't work. >> these costs of course are not
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going away no matter how you restructure its things and you're absolutely right. when it comes to health care costs the unfunded liability for new york city is over $88 billion on health care costs. their pension cost is $70 billion. these are things the taxpayers' and going to pay. you add that up, that is the $4.6 trillion, over $60,000 for an average family of 4. these are the things that are breaking banks and will compel higher taxes or significant cuts in government services and layoffs. charles: you mentioned york city and a lot of other cities. we talk about it as if it is brand new but warning signs are going off for a decade yet city after city, municipality after municipality, they continue down this path of generous pensions, a lavish retirement benefits, how does that change? how do you change the structure of that? how do we put a stop to this?
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>> you are absolutely right. this has been going on a long time, you have government union bosses with the political collaborators that have negotiated these benefits assuming the taxpayers could always pay for more. they reached that breaking point and that models simply doesn't work today. the way we describe this, we have the hole in your boat filling up with water. the first step you have to take is plugged that hole and get to bailing out the water just like the private -- liz: here is the fix. existing workers into 401(k)s and future workers in 401(k)s and say we will put -- contractually have to pay as the money but you can change the structure of the pension account into a 401(k). >> absolutely. in our state in pennsylvania governor corbett has proposed such changes and government unions will fight every step of the way because they want to maintain those benefits that the
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taxpayers can afford and don't have themselves. before this next year will be a real -- around the country, states, municipalities, we will need your help with this ticking time bomb, appreciate it. congress go on summer recess but not before hammering out a deal that gives lawmakers and their staffers and exemption on obamacare. >> let's pass the bill so you can find out what is in it away from the fog of the controversy. you know throughout history,
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charles: take a look at the big board. the isdn service report better than expected. we are not rallying but it puts the stop on a free fall. we have a new high for steve madeleine. goldman sachs says they want you to buy the stock now so where are the shares? >> a abraded from neutral with steve that in doing so well at 3.1% moving into a new 52 week high. we have to work all the shoeread here -- retailers together but this is a hot one. charles: at an all-time high they started a big shoe revolution a few years ago. you have a pair of them? >> i am wearing a pair of boots
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right now. i think it is a great company with a nice variety. they are not too sexist. charles: young, fresh, hip, hot, all that stuff. our next guest has a too. congratulations to lawmakers, getting a last minute exemption from obamacare. it will require them to ditch their cushy health plans and participate in health care exchange that everyone else is supposed to participate in with -- joining the company with your shoes. this is amazing. the people out there that cobbled this stuff together and say we know what is best for you, america but we are not going to. >> not good enough for congress. we don't want that. are you kidding me, these are democrats who push this through. you know what we get? the ford pinto which is not good, pintos blowup and that is happening because nobody wants obamacare, it is very unpopular and cadillac health plan, we
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outpace 75% of it. this is outrageous. liz: taxpayers subsidize 75% of the congressional plan. charles: it is an amazing plan. y daddy of the mall, no joke. you spend a lot of time. are they that arrogant? really think the public is stupid, we will called together what is best for is them, the prevailing wisdom in d.c.? >> they are out for months so try to push this through and doesn't have the -- the people will go what the heck is going on? so terrible. these democrats are pushing through and rammed it through and they are saying obamacare i great and what america wants and then they agreed they would take it but now they are backtracking. that is wrong. talk about bill way entitlements. are we in a class system -- liz: worried workers will leave for better paying jobs.
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charles: the private sector too. >> why should these d.c. staffers be treated better than staffers or employees in arizona, indiana? it is not right. they don't have the benefits either so why should they in d.c.? why people on the beltway have this entitlement that no one else in america has. liz: the question is the white house has been buckling, they pushed off for years the employer mandate. will they buckled on this under pressure from -- you just gave a pass you guys in congress. what about us who fall between the cracks and can't get the subsidies? could the white house are giving out freebies to more people? >> maybe. the reason they pushed that is the employer mandate to get to the democrats are worried because everyone hates obamacare and we are going to lose our seat so that is going on but if you're talking about really pushing it and trying to give out more goodies i don't think they want to give out a plan. they have seven course fancy
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dinner and we get bologna and the red dot. that is what our health care is about. liz: what is a red hot is? >> you don't know what redtop is? >> they have caviar and champagne. charles: back to your point. liz: hope you're getting covered. charles: unions don't get a break how can anyone else expect a break? >> the thing is a lot of people fall through the cracks and won't get those subsidies and health exchange because they are above the 138% one but whatever it is defining poverty at, if it is 139 you scream and say congress is getting the plan so what about us? >> exactly. the middle class gets heard once again. it is on their shoulders. they won't about the plan. they will pipe to keep it and it is unfair and their staffers too and wives and spouses and kids and staffers kids. it is wrong and they get it for life. if you are congresswoman
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negative for life. charles: started by saying congress since we are stupid. maybe we are because the question never comes. liz: make some said the president said of we can keep the plan they will -- >> you can say you got to pay for what it is. bit sweat, we are not. liz: will they get pushed -- charles: won't get pushed into anything, they will keep their duties and get it to where they are. he essentially no jobs are created for young americans. summer job thing drying up. a record amount of 20 somethings living with their parents and will they ever turn on obama? that is the big question for obama and the democrats. we have a guy with the answers next. [ male announcer ] imagine this cute blob is metamucil.
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>> okay. 362,000 jobs created last month and zero, zero of the jobs were for teenagers. what happened? jason mattera joins us now. i don't get it my man. i don't see what the president has done for the kids, they love him, worship him and they've gotten zero jobs in july. what happened? >> absolutely nothing. they're getting for this fealty to barack obama. you still have legions of obama
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zombies who vote for him. when we found out that 22 million young adults are forced to live with mommy and daddy, at some point, you've got to think on a practical level, charles, that that 20-- especially for the fellas out there. that 27-year-old guy, it can't be good. and it's probably cramping your dating life and eyeing the honey at the gym. come over to my mommy's house and i'll cook you a romantic dinner on the george foreman grill in the ait i can -- attic. will they make a turn against barack obama? i think in the 2006 election, you're not going to have that cultic figure or the celebrity attraction to whoever the candidate is. maybe the republicans have an opening, but my goodness. barack obama has given nothing to young people who have showed nothing, but die-hard feelty and allegiance for this candidate.
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>> here is the thing though, jason, got to tell you, obama has spiked up the republicans, too, republicans are saying that something he's done for them is goodment in other words, when mihm says that being able to stay in your parent's basement until you're 27 is a gift, he is helping the president articulate something that's not a gift, it's a curse. >> surely, it is, it's delaying adult hood. if you're not moving out of your parents's rooo and not paying rent, not buying a home. not having kids right away. it's delaying the maturation process overall and it's not good for the country and we have a debate in the country about student loan rates and whether they're going to be 6.8 or 3.9. tuition is sky high, too, so you have students who are graduating from college, they're in a large amount of debt. they don't have full-time work to pay it off. their part-time employment is barely chipping at their student loan and they're con
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signed to mommy and daddy's att attic. and the amount of young people making an amount of impact on our economy, we want to increase the minimum wage and sure, make it more expensive for people to hire and that's going to help. >> i think we have a new tv show in the making, wayne's world meets the golden girls. and that's what the future of america is. charles: i've got to tell you, jason, all i can tell you, though, i think that maybe young people are a little different. i can't watch an r-rated movie in front of my mother, but it seems like these kids they'll have a date and bring them back to the house and i live with mommy and daddy, that's the only way i could afford the car. the dynamic of being young, upwardly mobile and proud of it disappeared. >> the potential woman lives with mommy and daddy as well and maybe there's a commonalty there and, but it is a problem when you're -- when you're trying to enter the work force.
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and listen, it may make be fine at first and don't have any bills. as you're getting up there in age and close to 30, heck, you even have 31 year olds, 16% of them living at home and it's not good for their self-esteem. not good for the work ethic and not good not just for the economy of america, but the ethos of america. >> i agree a thousand percent. and this is a tough story and should be a critical story and we're glad you're pounding away on it. it's a big time american economic story and not a good one. >> i have hope, hope in the future, don't worry, charles. >> keep hope alive. >> this guy might, alex rodriguez is facing a ban today. it would cost him millions of dollars, but this may be-- doesn't mean it's not going to take the field. and the question, will that ever recover? that's next. bjorn earns unlimited rewas for his small business
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. >> the bottle between cbs and time warner cable continues. cbs wants time warner to pay them more money and time warner cable are not having any of it. negotiations have stalled and cbs station are blacked out for a time and in new york, los angeles and several other major markets since friday afternoon. the obama administration rejecting an international trade commission order that effectively banned some of the
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apple products in the united states and itc saying they violated patents held by samsung electronics and losing 1 billion, nearly a billion dollars in market value as a result. it's a bogus burger time in england. volunteers test taste in london, the burger grown in cattle stem cells. and the faith of yankees slugger alex rodriguez. [ male announcer ] how do you get your boue?
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>> new high for facebook. nicole, what's going on? >> a new high for facebook. everybody started writing facebook off when it was 17 and change. look at it now. it's traded as high as 2923, it's pasted the ipo price and you know, there's so much now. and it broke through the threshold, right, the stigma. and you have employees money in the game and they get stock options and probably working hard. and the mobile ad revenue has been on the rise and there are now going to be game publishers, too, to name a few things going well for facebook and obviously the shareholders are happy about this. >> the people that held on are happy and piper jaffray says so they're jumping on the band wagon. we can get a word from alex rodriguez. considering that the yankee slugger is going to be suspended all the way through 2014 for his alleged use of
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performance enhancing drugs. the dle agency joins the company now. one of my company growing up with the defiant ones. and in this one it's defiant one. a-rod going down swinging. >> no pun intended. charles: is he taking the right tact on this thing. should he cut a deal with the baseball league and say i'll sit out the year and take my shame, it seems like the consequences are the same and the public relations aspect is worse. >> first of all, assuming he's not punished under the cba, but there's a caveat there. during the course of the appeal he still gets to play games and gets a paycheck. if he were out of the cba he would not get to play and not draw a paycheck. it's critical once we hear the announcement and how it's
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constructed. if you're talking about the second part of that question, you're not talking about the traditional process with major league baseball. we're talking about the court of public opinion and we've seen the last couple of years, with those comments. that can be incredibly damning. tigers, lance armstrong and ryan braun. >> he did take his medicine and maybe there's some advantages for him to do that now because he has a new contract. but this can't be about money for a-rod. what do you think he's fighting for? >> i think a couple of answers. number one the obvious, it is about money. alex rodriguez still has nearly 100 million dollars remaining on his exist contract. it's important to point out. he has 40 million waiting for him as deferred compensation from a prior rangers contract so he's got 40 million coming down the road, as well as astounding nine figures remaining on theyankees. and if he were to be put out of
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the game, in quotetations, essentially nearly 40 million dollars. so, it's a lot of money and-- >> that's what i meant though, with respect to the idea of trying to play during an appeals process. and hey, i mean, it feels like no matter what happens, he's going to miss at least 1 1/2 seasons. wouldn't it be smarter. you talk about tiger woods and he won the fifth tournament and he's starting to get back into the public's good graces and a-rod takes the field and people are going to boo the heck out of him. i don't see where he wins, but not taking the hard medicine now. >> i understand what you're saying, but here is what i'd point out. tiger didn't have a lot of people standing up and cheering when he walked to the tee box. and that's the context of damage and image repair, right? now i would distinguish tiger from lance, from a-rod, being that lance at that point was already retired. he didn't have the opportunity to come back and get on the bike and show what he could do
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athletically and put the past transgressions behind them. tiger has 0s -- ostensibly more years ahead of him. a-rod is close to the end of his career, his hips, his bat slowing up and fielding, see how the hip holds together. the ditchfference, he's still o the field and has an opportunity to play. charles: i think it's going to back fire pr wise. you're the expert. and across the world, the u.s. embassies are closed, because of a terror threat and the nsa snooping powers. how does the judge feel about that? he's next.
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>> at least 19 embassies and consulates will remain closed until next week due to what the state department calls significant and detailed intelligence recording terror attacks and so far to al qaeda. we've got to ask you. does judge napitano agree with the nsa snoops? >> charles, i love you, but you've gotten from one point to another without us looking at
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the dots in between. first of all, the nsa's behavior by law is limited to the united states and the cia's behavior by law is precluded from the united states. so if these threats came from the arabian peninsula and were directed at u.s. assets there, more likely than not it's generated by the cia. >> the cia and the nsa has boundaries? >> yes. >> and how can they listen to a phone call in yemen? >> ahey. how can they mislead the congress, how can they spy on americans without any evidence? they can because they have the ability to do so. and when the nsa was asked by congressman mike rogers, do you have the ability to listen to phone calls or read e-mails, the answer was, no, we don't have the authority. he didn't answer with respect to ability. charles: ability. the overall gist now, a very aggressi aggressive intelligence
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community on steroids, in this case maybe saved american lives. are you okay with that? >> first of all, we don't know what the threat was and we don't know if it's materialized. we know it's happened when the administration's spying apparatus from across the political spectrum. >>, but the security officials did testify, they have 50 terrorist plots here in the united states. these are the same who lied to congress about what they were doing during the secret briefings that they gave members of congress. and worked for general clapper who said no under oath. we're not collecting mea data. >> the times broke the story maybe they're under pressure to share their information bout the dea and fbi. do you have a problem? >> i have a problem. the constitution has a problem. the one saving grace about nsa, it doesn't shoot people and doesn't prosecute people, it just passes information on. if the nsa has information,
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they can't prosecute you, but if the nsa is looking for two people conspiring to commit terrorism. and they inadvertently come upon two people conspiring to rob a bank, can they pass that on to the fbi? absolutely, positively not under the fourth amendment. >> but they are? >> they could be. >> but they are and that will lead us to east germany, when the prosecutorial parts of the government or the military parts of the government have all of our secrets. the linchpin of the fourth amendment is suspicion. if the government has that suspicion and they-- >> essentially judge what you're saying, it's something of a coincidence with the public opinion shifting a little on how we handle intelligence gathering that maybe those 50-some odd things came up, maybe this came up. maybe it wasn't a big deal. maybe it's being made a bigger deal to sort of justify the existence of the program in the first place. >> the same government that has not sold the truth about benghazi, same administration
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that did not tell the truth about the irs, expects us to believe it's telling the truth about this. how about this? last week, more than 100 democrats in the house of representatives. more than half, voted to shut down the nsa spying, do you think the president is worried about it? i would think so. charles: i want you to stay right there, i'm not going to let you go. move over hillary, governor christie is gaining some ground. that's next. s... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of data for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey, can i borrow your boat this weekend? no. [ male announcer ] share more. save more. at&t mobile share for business. ♪ at&t mobile share for business. (announcer) at scottrade, our cexactly how they want.t
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folks have suffered from frequent heartburn. but getting heartburn and en treatiting day after day is a thing of the past. block the acid with prilosec otc, and don't get heartburn in the first place. [ male announcer ] one pill each morning. 24 hours. zero heartburn. charles: the election is three years with the voters are picking their hottest the dealer to this political figure in the country, chris christie actually tops the list with a 53.1 average followed by hillary clinton and senator elizabeth warren respectively. what do you make of that? liz: are going to call the hillary clinton race already? what we see is coming up with senator ted grues and marco
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rubio's experience, a deep ice age, nancy pelosi, harry reid, mitch mcconnell and john boehner. it is bipartisan. charles: elizabeth warren climbing. chris christie at the top of the list. we talked a lot last week about the feud, war of words. >> chris christie represents a different vision of the government from mrs. clinton. no surprise that those who are reacting to the malaise we are in now, the economic malaise, security malays, the police state malaise, everything going on in the country that is upsetting people on the more conservative side are naturally going to gravitate to the person they feel will get the most votes and right now that is chris christie. charles: interesting to hear you say that. sees it is the exact opposite of hillary clinton. judge napolitano: there are more
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precise opposite us, i happen to think he and secretary clinton, by the most recent title, would agree on a lot of things but i do think that he can present the image of lot of republicans have been looking for. conservative, putting a fire on the people's belly expanding states that republicans don't usually win. charles: here's the dilemma. he might do that in a general election but can he make it to the general election when the primary process they're looking for more hard core candidates in the republican party? mets be honest. call chris christie a republican in name only, a lot of his republican critics, that is the dilemma. liz: conservatives don't like to be chris christie on in our with obama after hurricanes and the taking government money to help, he is a pragmatist as governor of new jersey of your home state, can the conservatives overcome their negative feelings
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about chris christie? judge napolitano: this is chris christie's biggest selling point to the conservatives. i am your best bet and i am clearly better than hillary but a lot of the voters in republican primaries are more ideological and want something more than i am your best bet. very popular, probably get the election in new jersey by huge landslide, 65% to 70% which will kickstart -- charles: include democratic voters, young voters, the kind of people you need to win a national election. judge napolitano: some other arguments for chris christie. mitt romney did not take messages of which he was the governor, michigan where he was born, new hampshire where he lived, chris christie will probably take in a jersey which is the guinea for the democrats. charles: you had a good weekend. see you guys later. did you have a good weekend? dagen: of course i did.
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settings myself. nascar racing and suntaning is always great. charles: connell mcshane is at the ranch. dagen: thank you. we will pay them to keep out there. good morning.% american embassies in the middle east and africa closed through saturday. whatever threat and what it means to you and the market. a $1 billion hair cut for samsung, a market value, the president's decision to veto an import ban on some apple products. quickly becoming the justin bieber of college football, johnny mandel under investigation for getting paid to sign memorabilia, raising the question yet again should these kids get paid to play college sports? famed designer joseph abboud reunited with his namesake plan and his plan to create jobs in this country. that and more on this


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