tv Varney Company FOX Business September 27, 2013 9:20am-11:01am EDT
♪ >> ♪ imus in the morning >> yes, the government shutdown looks more likely and yes, the market does not like it, but the big headline of the day is, bailout. detroit, it's started. good morning, everyone. federal officials are in detroit now. they came bearing gifts. hundreds of millions of dollars with more to come. the white house is going around the congress and delivering the money by executive action. they call it aid. we call it a bailout.
and now to the shutdown. looks more likely. investigators anxious ahead of the monday night deadline. stocks will open lower. how is this for a truly golden parachute. 55 million bucks will go to the outgoing blackberry chief. he's been there less than two years. the friday edition of "varney & company" is about to begin. ♪ [ male announcer ] now, taking care of things at home is just a tap away. ♪ introducing at&t digital life...
>> president obama not concerned about the effects that obama care will have on jobs. listen to what he said yesterday. >> they said this would be a disaster in terms of jobs. there's no widespread evidence that says the affordable care act is hurting jobs. stuart: oh, liz macdonald is here with the evidence that the president should have been reading. what have you got. >> federal reserve, richmond, chicago, dallas, all reporting that health reform is having an impact on jobs. these are companies, local companies that report back to the federal reserve districts across the country.
and also seeing companies like dana holding, auto manufacturer, medical device companies laying off workers, we're also seeing schools across the country in places like pennsylvania, california, texas, new jersey, either cutting or busting down to part-time status. also, cities in california, indiana, kansas, texas, michigan, also either cutting jobs or busting it down to part-time status. we're hiring more enforcers in the irs and hhs at the same time when we have schools, cities and companies laying off or cutting down to part-time status. stuart: our latest tally is 313 employers have changed the structure of their work force, cutting hours or staffing levels because of obama care. the president is flat-out wrong, but that's-- i think the evidence is there. all right, the markets, they are about to open and they're going to open lower, thanks to shutdown fears. apart from that issue, we've got some big names that are in the news. we're following them for you. nike, blackberry, ford,
microsoft, all of them in the news and all of them moving of the first though, i want to bring you this. just take a look. the end of an era in the bronx. the best relief pitcher of all time, mariano rivera, a tearful goodbye for the best that we will ever see. >> and part of the core four, everybody, standing and applauding in this ballpark. the yankees have come out of their dugout and in an extended hug between andy pettitte and mariano rivero who is so overcome.
stuart: tough to figure out what music we should play but we call it the shakedown and jpmorgan. what is going on with that? possible reason for this shakedown. we will bring it to you in a moment. we are going to chicago where tres knippa is here. we are looking at a lower opening for stocks again. is it all about a potential shutdown? is that it? >> we could only be so lucky. the congress got shutdown in the midterm elections of 2010 and that is when the economic
recovery actually started. and watch the unemployment rate about 2%. stuart: suppose we should on the government for an extended time, wide sections of it, you don't think the market will go down? >> bad news for you. an agreement is not going to happen. why not make the deadline? 9:30 in new york time, let's make the deadline 10:00? they will capitulate and come up with some agreement and kick the ball and move the goalposts down the road so let's stop the political nonsense, make the deadline 30 minutes from now because the result will be the same. stuart: interesting prediction from tres knippa in chicago. the dow is lower as we expect, down 36 points below 15-3. individual companies in the news, strong profits, nike is a
dow component and nicole petallides avenue high. nicole: a great day, 6.3%, 74. and adding to the dow jones industrial, and other retailers, to criticize the numbers as well. likely all three. stuart: a much bigger selloff if not for nike because we are down 45 as of now. ford's cheese alan mulally reportedly leading candidate for microsoft's ceo position. i own microsoft stock. here's a look at the stock price, microsoft and ford, where are we at the opening? microsoft is up, ford down a little. alan mulally has quite a resume with boeing and ford and whenever you see him on this program and elsewhere this man smiles. contrast that with steve ballmer
who is more known for i am going to college outburst. that was in dancing around the stage at a developer's conference. i will ask both our company members, joe and liz, alan mulally, microsoft, good fit? >> a lot of potential he has taken through some rough periods. there's a lot of potential especially with microsoft needing a live physically and having happy spirits, right now he is telling them i am focused on ford. stuart: he has got to. liz: the ceo of boeing may want to return to the seattle area because microsoft is in redmond so he has a hole in that area. big sprawling company, microsoft three times the size of ford, needs to articulate a vision for the sprawling company. alan mulally can do and has a lot of turnaround expertise. stuart: john is with us with the bermuda backdrop with him today. if alan mulally goes to
microsoft does microsoft stock go up? >> i think so. what liz is talking about is spot on. they need a vision. they went through all the turbulent crisis, didn't take government money and a lot has to do with the vision of alan mulally. microsoft right now has $76 billion in cash and that is only about three months of operating cash for these guys. they make acquisitions out there. he can articulate a vision to me, exactly what microsoft needs. stuart: i want to break away from markets and go on to what we are calling the lead story of the day. $440 million, how much the white house is expected to send in, quote, aid to detroit. we are calling in a bailout. today fed officials will meet with state and local people in detroit to discuss how they can save the city. i got a question for you. if you pump more money in aren't you giving it to the same people
who created the mess in the first place? liz: yes and they are giving the money in a back door bailout way in the form of grants and loans, things like public safety, i am not sure what d.c. can advise to give better advice than what between knows what its problems are. john mayfield brought up stocks of foreign aid to places like egypt and we have our cities here but detroit has been a problem in the making for ford for decades so why throw more money at a problem when they need to fix themselves? stuart: politics surely. you got to bail them out. solitary democrat, got to bail them out in some way. john wakefield's still with us. did you once say don't give it to egypt, give it to detroit. giving it to detroit will help? >> i had two bad choices. i would not give it to egypt. i call it a coup, call it what it is. no more foreign aid to places
like that. i would give it to egypt. i am not forgiving debt. these guys screwed up the city, the state, the municipalities. they are the ones, more money will be more money going down the drain. president obama said he would not let detroit go bankrupt. they went bankrupt. you with talking about the auto industry, people referred to the municipality. this is a political football for the democratic party. they do not need to see detroit go bankrupt. stuart: i want to get back to another story concerning a corporation. i am talking blackberry, the ceo stands to receive an extraordinary golden parachute, $55 million when the company is forced out and it will be brought out. the stock is up on that. >> stock is higher. they came out with their numbers over the last 24 hours, reported that loss, $1 billion.
they talk about revenue drop and warned about things going forward. there are new models they are going to address. and for example they do have $4.7 billion bid. stuart: that is right, thank you. liz: market cap was $82 billion for blackberry in 2008. charlie brady senior and i ran the numbers. when this ceo took over, now cut in half. the market is saying in a book value of the company is basically the market selling blackberry, you are worth half of what you're reporting in the plant property equipment on the balance sheet and what the book value was, that is really bad for the company. stuart: john wayfield is with us, $55 million to a guy who lost, i think he was hired in the first place eighteen months ago. he was hired not just to try to turn around a company but to
sell it if he couldn't. he succeeded in that. >> he succeeded in finding a fairfax if you want -- if you want to call that success may be that is the definition of success given he got $55 million on the out set looks like giving the captain of the titanic a bonus for hitting the iceberg in a hurry. this will go down as one of the biggest tech bursts of all time, a great company that completely missed the smart phone. they are so far behind the curve this is heading to the graveyard. stuart: one more, and j.c. penney will sell eighty-four million shares, they want to raise $1 billion and build a cash reserve, selling new stock, fresh stock, you standing in line to buy it? >> i hate to be bearish. i think microsoft has potential out there but this is going away of the dinosaur. $932 million in stock offering they are putting out there is a
last gasp polk. they have really fallen behind the curve. i don't see them catching up. stuart: mike mcdonald's answer to burger king healthier, burger king can out with satisfied healthy version of french fries. mcdonald's is offering the salad option on value meal. i you jumping on the bandwagon of healthy fast food and buying those stocks? >> yes i am. it will take awhile to go out, 85% of the market will be in this by 2020. this is the wave of a future, $0.99 burgers at burger king and mcdonald's got into was an absolute value for the property margin, this is the wave of the future and microsoft, mcdonald's has done wonderful things getting ahead of the curve including refurbishing most of their outlets with healthier menu.
stuart: what do you say about this? >> millennials for perez and chipotle and it can only be a way forward for future parents that a going to be buying mcdonald's for their children with potential long-term customers and it doesn't sell. that is the problem. and it doesn't sell. implement and put it into the happy meal. they do all right. stuart: it is an option. >> apples are currently in all happy meals right now so when they first offered it as an option it actually didn't sell very well. it is an interesting take and another reading, when mcdonald's added cucumbers it messed up the supply chain, a great story on that so all these new melons and things are certainly something to watch. stuart: are you a millennial? >> i don't know. am i? stuart: i won't ask how old lady is. good enough. we are calling this a shakedown,
shakedown of jpmorgan. eric holder reportedly wants $11 billion from jamie dimon in a mortgage settlement going back five years and today the wall street journal agrees with our description of this as a shakedown. listen to this. this is from an editorial in today's paper. keep in mind that this is one bank that did not need taxpayer assistance in 2008 for since. this partly explains how much jamie dimon is the obama administration's favorite wall street target. melissa: what is going on is, quote, and chair. what we want to watch here, $7 billion possibly in cash is the number to look at because $4 billion in mortgage relief the administration could say we have more mortgage relief for you borrowers, that would be a victory for the administration. that is the headline they want. stuart: president obama says there is no evidence that his health-care law has hurt jobs. is he right? we will deal with it next.
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stuart: we have not seen much movement in the price of gold but we have a $12 per ounce rally at $13.36 is your price. no doubt people love their pets and spend money on them. look at pet smart cashing in boosting its dividend by 18% and it is going to buy back half a billion dollars worth of stock. the stock is up 9% this year up a little bit more this morning. look at number liquidators' down today after the fed's rate at
headquarters, they are suspected of using illegally imported would. a lot more on this one coming up. earlier i saw liquidators' down sharply and now they say it is unchanged. let's go to the president. obamacare and jobs. he said yesterday, quote, there is no widespread evidence that the affordable care act is hurting jobs. congressman mike burgess, republican from texas joining us now is a doctor live on capitol hill. first of all, as a doctor, what is obamacare going to do to you as a doctor in the medical profession? >> the regulatory control over the physician's practice is something that i don't think anyone has anticipated and doctor practice is actually ready for that. sections like 1319 of the health-care law where the secretary of health and human services has vastly regulatory authority over doctors' practices under the guise of regulating quality but that is a
world in which most of us have never existed before. stuart: is that regulating how you treat patients and what treatment you give them? >> exactly. of back door way of government regulation. again this is something that hasn't been on the radar screen. we are talking about the other negative aspect of the affordable care act but that is one yet to be determined. a lot of doctors are talk to are not concerned about it. stuart: you are an adamant opponent of obamacare. address the jobs issue. yesterday the president said there is no evidence is bad for jobs in america. what do you say to that? >> i would ask the president to put his money where his mouth is. if he believes that to be true why not delay implementation of the affordable care act until the unemployment rate is perhaps under 6% nationally. the fact of the matter is health economists like john goodman in dallas who have written on this issue had to point out the fact
that you tax employment, subsidized unemployment what do you think you will get out of that equation and i ask you this, when at any time as the confusion of vast amounts of federal dollars ever meant a price of something has come down like housing or student loans or had to get the picture. stuart: i'd take your point. are you in that block of republicans which says obamacare no way know how, right down to the wire you will say defund this and get rid of it now? are you in that block of republicans in the house? >> that is the vote ito last friday and the bill that is pending over the senate. i would like very much for them to take up the house bill and send it to the white house and let the president deal with whether or not to sign it. the fact of the matters we will stay on capitol hill until we get this job done. none of us wants to shut the government down. we are fully funding the government in the bill we passed last week except we withhold money from the implementation of
the affordable care act. not the first time the house has tried to rein in the executive branch by withholding funding. it happened at the end of the vietnam war if you recall, and it happened in 1985 which prevented the cia from operating in nicaragua causing problems for president reagan later down blind but limiting amendment on an authorization bill. stuart: we hear you. dr. michael burgess, r-texas, join us, see you soon. next, detroit bailout, and the politics of one party rule. my take on that next. ♪
stuart: the next big thing in tax, google glass, x box 1, samsung smart watch, the picks of our tech roundtable yesterday. today, a whole new student geeks headed by clayton morris. his favorite pick for the next big thing, that is my favorite, check it out in the next hour. this time yesterday we brought
you the story of gross corruption, the looting of detroit. today and update and judgment. here is my take on backdoor bailouts and 1-party rule. first the bailout, federal officials in before today bringing hundreds of millions of dollars in aid. $24 million to repair buses, $100 million for transit improvements. list goes on. $441 million now total according to the wall street journal, much more to come. they are not calling it a bailout but a bailout it is and it is being done through executive action, not by the will of the people through congress. bottom line you are paying for a cropped and bankrupt city and i will be called heartless for pointing this out but let me point out a larger lesson. 1-party rule corrects. that is what detroit has had since the 1960s. one party rule for 50 years. there is no republican party in detroit.
it has been all democrats all the time. no political competition at all. that breeds corruption, that brings decline. detroit, one democrat regime after another literally gave the money away to buy votes. $2 billion looted from the pension fund and given away so voters could buy christmas presents. will deflate change course politically? not a prayer. instead this city will bake for help. the obama administration will oblige. $400 million on its way. more to come. the bailout process has begun. welcome to obama's bailout handout nation.
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stuart: friday, september, it 27th, the shutdown looms and markets are down and we also have this for you. the feds raid lumber liquidators, whose boss hosted the president in his own home. biting the hand that feeds you maybe? democrat calls for obama phone crackdown. recovering welfare addict star parker on that. san jose wants a minor change to pensions and units fight it. bankrupt detroit, gets a back door bailout. a total waste of your money he asks. we've got a fresh bunch of geeks for you, hot from the chat rooms to tell you about the next big thing.
stuart: all right, look at this, everybody. it is friday morning and the stock market is down 84 points on the dow. there is a possible shutdown of the government looming early next week. by the way, this drop would be well into triple digits were it not for nike which israeliing today and nike is a new dow stock just added. come on in rich edson in washington. a shutdown, more likely today than it was yesterday. give me the latest. >> that's right, stuart. the senate will vote later today on a bill that extends government funding until about the middle of november. that bill likely passes the senate this afternoon. then it comes over here to the house where, yep, back to you. stuart: okay. so say no more. as things stand right now, without getting too much into the weeds the likelihood of a shutdown is up. it will be a big weekend. we cam back monday morning and we find out. that is basically where we are, is that right, rich? >> that's right, stuart.
we don't know in the house what will happen this afternoon let alone over weekend. a lot going on right now. stuart: rich, glad you're covering it, not me. i just stay on the markets. let's get to the white house targeting businesses and free enterprise. the feds raided lumber liquidators headquarters orover suspected use of illegally imported wood just like with gibson guitars, remember? but the ceo of lumber liquidators hosted the fund-raiser for the president at his own house. you couple that with eric holder saking down jpmorgan or trying to for $11 billion what have we got? charles, i say a war on business. even a war on your own fund-raisers. >> these are guys, the guy sat here right, sullivan. stuart: tom sullivan. >> i love the president. i like him on social issues. i put a lot of money behind him of just had him in my house. telling you each of these business guys fail, okay, the economic stuff is shaky but the
social stuff is bad, they will have their own personal night of the long knives. in other words, wake up in the middle. night, doors crashing, glass breaking, the government taking what you worked hard for. getting a take of it today. stock was halted but down 12 bucks. you have to do it. the president has to do this to fund his great utopian society. he needs every nickel out there. he has to do this. he has to eat friends and foe alike. stuart: should point out on the screen. lumber liquidators stock is on hold. halted. >> before halted it was down 12 bucks. stuart: it was. you got $11 billion they're trying to screw out of jpmorgan. you should read the editorial in "wall street journal." headed, robbery at jpmorgan. >> it is robbery. things like robo-signing, that is dumb, bad business, lacy business,. how does someone pay the mortgage for two years become the victim? all of sudden they become the one who was shortchanged in this and bank is evil one.
they might have been sloppy. might have been stupid, but they have turned this whole thing on its ear. stuart: look at this, "the wall street journal" says that jpmorgan has got to have a total of 15,000 people just in hits compliance and risk management department. that's an additional $5 billion a year. >> that does not get lent to americans who want to start a business, build a new home, that is money that is wasting. dodd-frank, by the way, only 40% of the complete. this will be story not just of big banks but regular businesses with five employees, the 6th win will have to be a compliance officer. stuart: it's a political winner, isn't it? go after wall street, call them rotten villains and you win politically. why is bill de blasio going to be the next mayor of new york city, why? he is going after wall street. he hates those bankers. i will calm down and go to nicole and look at solar stocks which incredibly are rallying again. >> indeed.
all right. we have have a couple ipos. you hear some shouting here. we're watching solar stocks careful. deutsche bank upgrading both of them to buys. this is incentives in asia and china particular. those incentives for the sector have helped them dramatically. the curb pollution and like. these companies with international branding and relationships over in china are due to just do well. you're seeing the stocks jumping today. new highs. year-to-date, treena solar up 200% -- trina. yin bring green, they're saying buy. yingli. stuart: yingli, nicole that was your pick. >> there is lot of pressure, looks like the according to the solar industry. the is has big tariff against chinese solar. more and more senators jumped on the bandwagon saying it's a stupid thingthere is lot of optn
the industry it will get struck down. it would be guy began tick for chinese solar players. stuart: dow industrials are down 10points. i heard a cheer in the background for nicole on the floor of the exchange. i don't think it had anything to do with the dow. >> it was for nicole. stuart: maybe. state and local officials will meet in detroit. they are discussing what can be done to save that city. here is that idea of a helping hand. $440 million. that is what we call a bailout. that is not assistance. that is not aid. that's a bailout. let's bring in a former advisor to the city of detroit. you know what you're talking about, when detroit comes around. i'm calling this a bailout, back door bailout. is it? >> well i got to tell you, stuart, back in the 1930s we used to have americans would stand in bread lines in american cities. today we have the american cities standing in a bread line in front of the white house and really is, just a terrible, turn
of events where these cities just can't make a go of it anymore. they stick out their hand to washington, d.c. stuart: you know what you're talking about in detroit because you know the city. i'm told that there they are offering $24 million to detroit, the feds putting in $24 million to fix the buses. another $120 million to make improvements in rapid transit. a couple of, tens of millions of dollars to mosque down buildings. is that what the money is going to? is it? >> somebody a little more famous once said, let's not hand out fish. let's teach people how to fish. that is exactly the situation in detroit. it is almost laughable, that a group of people in washington, d.c., that have been overspending by trillions of dollars for decades are now going out handing out more money. in detroit there will be some people going to prison. in washington, d.c. we reelect these people for overspending money that the american taxpayer does not have. stuart: they wanted a bailout.
they were asking for a bailout. i want to, for a second, mark, listen to councilmember joanne watson, speaking in the detroit city council chamberses last december. listen to this. >> our people in overwhelming way supported re-election of this president and there ought to be a clear quid pro quo and you ought to exercise leadership on that. of course not just that, but why not? stuart: okay. they will get $400 million this time. we hear there is more to come. but the president is not going to congress to ask for the money. he is using executive authority, going around the congress to steer the money from various, various ways to get to detroit. again, i say it's a bailout, flat-out. >> that is exactly what it is. there is no question that's the case. we watched general motors stick out their hand and ask the president for money. he did it. now we're watching the city of detroit do it. i was actually in the room when
the councilwoman made those comments and purpose murder in the room is, absolutely. let's go ask for a bailout from washington, d.c. the problem is, washington, d.c. doesn't have the money either. they are trillions of dollars in debt. we have got to recognize the american taxpayer needs higher performing government, not more expensive government. stuart: well-said, mark. i think we have to call a bailout is a bailout when we see it. mark thank you very much indeed of. detroit is the not the only city with financial trouble. san jose, california has nearly $3 billion in unfunded pension liabilities. that is 1/5 of the budget there going towards pension payments. san jose's mayor, chuck reed joins the company. your honor, thank you very much for being with us. i know you're trying to make a change for new hires from the city. you want them to be on a different pension plan, a bit like a 401(k). existing employees keep the pension plan they have got but i understand it the union is
fighting, the unions, plural, they are fighting that relatively small change for new hires in the future. have i got this right? >> the unions have filed numerous lawsuits, seven lawsuits in probably seven or eight administrative actions to stop us from doing anything with regard to pension reform. we do have a new plan for new employees but we're also requiring our current employees to pay more for the benefits that they have and giving them option to choose lower-cost plan, public sector and unions are opposed to that. they're fighting all the way. stuart: if they win, they win in court and you can not make the changes that you proposed what happens to city finances? >> oh, it is pretty simple. we'll go back to cutsing services and raising taxes in order to pay for skyrocketing benefits. we're trying to avoid the detroit model, take care of our own problems. controlling cost is key part of that. we took what some people think are drastic measures to make modest changes in pension and
health care benefits but nevertheless they're being fought all the way. stuart: you say skyrocketing benefits. can you give me some idea what you're talking about here? >> in san jose the cost for retirement benefits 10 years ago was $73 million. this year, $277 million. it is 20% of our general fund budget this year is going to pay for retirement costs. we're not alone. many other cities in california face the same kind of skyrocketing costs. and cities across the countty as well but we're out front, trying to take care of that. trying to avoid the detroit result. stuart: can you avoid the detroit result? if you can't make changes and you're forced to make cut after cut after cut but the pension benefits keep on exploding like, is it detroit-style bankruptcy in your future, in san jose, california? >> well what happens is, you cut services, you cut services, you cut services. get into what is called service delivery insolvency.
you can pay the bills but can't afford to provide services. when something bad happens the bankruptcy is only option. we like to avoid getting to the circumstances. that is why we're struggling to change the pension benefits. stuart: thanks very much, your honor. thanks for joining us on this very important issue. thank you, sir. appreciate it. i will go back to nicole, nike, almost said the nikkei, as in the japanese index there. nike, an all-time high. where is it? >> yeah. all-time high today. don't forget it is a dow component now. it is up about 5% at the moment. all-time high again for the 26th time this year. 75.25. and they did well with athletic gear in particular. sportswear but athletic gear really set them off to the upside. basketball and running categories did particularly well. stuart: i think that, without nike, the dow already down 100 points. it would be down more like 125
if it wasn't for nike. i think that is accurate statistically. nicole, tell me about electronic arts. it is going to stop putting out college football video games because of a slew of lawsuits. what is the stock down? >> the stock is to the downside. athletes over at rutgers, arizona state, also west virginia, their images were used in the games. so now, electronic arts will not publish the ncaa football series, 2014 because they're being sued by these players. did you ever have that problem, people use your image without asking you, stuart varney. stuart: it has actually happened. not recently but it did happen. i was falsely placed into a come americaal on late-night television. long time ago. a long time ago. >> interesting. more to follow later. stuart: especially when you see yourself on television. nicole, thank you. the obama phone program, rife with fraud, got it. now a democrat trying to crack down. coming up next a former welfare
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stuart: big company, big name, very much in decline, jcpenney. it is going to sell 84 million shares, try to build a new cash reserve. market doesn't like it, down 8%. look at lumber liquidators. it is now trading. it is says it is complying with the feds. remember, please the feds raided the company, raided the headquarters. there are questions about its use of supposedly illegally imported wood. that's interesting because tom sullivan, the guy who runs the company, he held a fund-raiser for president obama in his own home. now he is raided. charles, get me out of this. let's talk, green dot corporation. you make money with that? another green energy boondoggle? charles: it is prepaid credit cards. stuart: sorry. charles: it does remind me back in the name you put a dot-com on back of your name you throw
green you get a little bit of a boost. this company, sort of a way is indictment on this country, that so many people need the prepaid cards. hard to get them through regular banks or anything. they are revolutionizing, seem my, sort of seedy industry. get the cards. load them up with checks and bank accounts and direct deposit. 60,000 locations. big deal in wal-mart. raised guidance. they have go bank, a bank account strictly online. open it up on the phone, bank account and manage it online. i think it will be very successful. they're promoting it big-time on "project runway." it was high as 59 bucks in january of 2011. stuart: i bet margins on prepaid credit cards are nice and thick? charles: they're absolutely huge. digress wall street of the russell simmons comes down, get's a hero's welcome. my man, why are they cheering you. you charge people on debit card to use their own money.
talk about free passes all the time. this company is -- stuart: something to do with green dot? charles: no, he has a business similar. stuart: similar business. fat margins. charles: fat margins. stuart: democrat senator claire mccaskill calling for criminal charges to be filed on people that defraud the obama phone program. i think there are six million of those phones out there at a cost of $2 billion a year. by the way you pay that money, a little bit of a tax, fee, rather, added on to every phone bill. come on in star parker, admitted former welfare cheat and president of cure. congratulations on shaking the addiction to welfare. congratulations on cure. tell me about the obama phone program. first of all, i'm intrigued that a democrat senator wants to really rein this thing in and reform it. that is surprise number one. i want you to tell me, how corrupt is it? >> you have to be a little bit suspicious after democrat
senator, wondering why she is trying to do bait and switch, she is going after the business, not people expanding the program because she is part of the problem. i'm so glad that you're looking at this story because what has happened here is exactly what happens in washington, d.c. they start out with maybe, a good intention and then it just grows beyond repair and we can't seem to get rid of it. this is a dinosaur program. it is called obama phone today. this is dinosaur program when phones came on the scene like horse and buggy, we thought perhaps everybody should have access. the phone companies couldn't lay lines. so let's help them. over time it expanded out to know. now just two billion in the lifeline and fraud that senator mccaskill pretends she is going after. this is $9 billion in a program that is a dinosaur that is just government subsidy. it tripled under barack obama but it doubled under bush. bush is the one that added this cell phone aspect to the lifeline. stuart: hold on a second. the left says, poor people need
a cell phone so they can apply for jobs and basically be a part of society. is there some value there, no? >> well, no, that is the fraud part of it. no, the service itself that was first started was not the phone. it was to allow people to get access to 911 or emergency services. no, these companies that do business with the government decide then, well let's give them free phones so they will be able to have that access. and that is what gets out of control. this is a challenge for us. we need to get rid of the entire program. stuart: if senator mccaskill is going after businesses which are running this free phone thing, who do you want to go after? the people who actually got the phones? >> congressional leaders that keep this madness going, taking that $9 billion and just won't make the program go away. when you look at it, anytime you have this type of partnership, you are going to have fraud. when you have public and private working together because the public thinks this is a good idea and they pass these fees on
to the business you will have fraud. look what happened in the food stamp business, we're finding a lost fraud. in medicaid we're finding a lot of fraud. that is what is hopping here. they have a service people who basically don't have home phones anymore, they have cell phones. so the companies they're in business with are looking for ways just to make money. stuart: it is called buying votes with our money. >> yes it is. stuart: that is my opinion. >> you're absolutely right. stuart: star parker, congratulations on your entire life. great to see you. >> i appreciate that. i'm reformed. i'm no longer cheating welfare. in fact i'm trying to dismantle it. stuart: yes, you are. keep it going, girl. thank you very much, star, we appreciate you being with us. it is friday morning, the weekend is in sight. i can see it coming. that means one thing. are you ready for some football? doesn't have the ring to it when i say it, does it? brian kilmeade is next. we make the nfl picks after this. will i beat him again?
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and kill me and i go head to head with our picks. ken brian gay redeemed himself after losing to me last week. brian is with us and we start with your three picks, go. >> first off, i can redeem myself. i believe in the even if stuart varney doesn't. cincinnati i believe will take the plus 4 and the cleveland browns, tennessee is a better team against the jets, the jet's turn the ball over too much, zero turnovers for the titans, indianapolis was so impressive last week that look for them to cover against the hapless jacksonville jaguars who in ~ tim tebow have no jews in the franchise but i love the people. tell me what is going to happen. >> you look like your scrunched of the bunker, eagle in a bunker to predict football teams. all three of your picks were easy picks. that is pathetic quite frankly that you should go so easy.
let me get to my picks. i don't know why everybody is laughing. >> i can't believe you mocking of the quality of my picks. this is the best game in the world, the most popular, every game has some in cheek. stuart: let me tell everybody my picks. the washington redskins. i.t. and nick the mistaken calling them the red sox. that was my fault. the washington redskins will beat the oakland raiders. the dallas cowboys will beat the san diego chargers and the new york giants will beat the kansas city chiefs. do you have any comment? >> i hope you are right about the giants. i am be called by their lack of success al anemic the apply a week ago. i lost picking them to win, always very wrong. you're going to go back and i hope you are right, the rest of those picks i will salute you on
the quality of those elections. i will prove myself a better man although you are the more sophisticated man and there's a big difference between us, we know we can't go alone. you are "varney and company". together we know we can't do it alone but i like that whoever is in your studio likes me better than you. stuart: takes a village. before i let you got want to ask about robinson cano, plays baseball for the yankees and wants $300 million for ten years. is he worth it? will get it? >> the answer is nobody is worth $300 million except neil cavuto and i don't think robinson cano, if the yankees are on a budget you can't put it onto a second baseman as good as he is and i would like to see him hustled down first base. is that possible for $30 million a year? stuart: we will see you monday and we will see who won this
week's contests. what can we say, $305 million over ten years. charles: there is the big narrative to the phony war on income inequality. we know these athletes and movie actors get a free pass. anyone making $30 million a year should be a villain in all this but this points to the biggest problem the left has which is getting young people, particular the black and hispanic to buy into the notion to crawl into the lower middle class with president obama saying every single time, in 1959 on broadway, they came out, and a black family in the general and they wanted to climb into the lower middle class. in 1959, that was a huge dream. in 2013 it is not. people dream bigger, they should dream bigger because this is
america. jasey, is one of his agents in this thing. he does luxury rat. and not climbing into the lower middle class. that is why this is a problem. charles: this is a big problem for the left. there are growing fears of a shutdown let next week, that is moving the market down. new iphones, google glass, where rebel gadgets, the future of technology, what will be the next big thing. we have day 2 of geeks of the round table, gadgets that could
and another new high, the intraday high was $75 a share. that was earlier and nike is a doubt stock. we are bringing back our round table. joining the company, clinton morris. and social rate our ceo michael cheese. i want to know what is the next big game changing technology? i will start with you. what is it? >> without a doubt levels of computing. stuart: the watch? smart watch from samsung? that kind of thing. >> truly it is about things i can learn about smart stocks, smart shirts. stuart: when you are telling me that is a smart shirts and in
japan, some workers are asked to where the smart shirt that will be monitored by employers? is that accurate? >> no. the smart shirt, in employee settings, smart shirts for runners that contract their sweat and hard for aid and vitals and the technology that adapts to the technology. stuart: it tells somebody about you and your blood pressure? that kind of thing? >> imagine stocks that can pickup with you are running the wrong way and can correct you? stuart: i would notify was running in the wrong direction. >> but would you know if you were running and putting more pressure on your knees then you should be? your running style? stuart: that was very interesting. let's go to you. what is the next big thing. >> the next big thing is already here.
only a few people's hands but it is definitely google glass. when you look into the way people use the iphone and android technology today, using it for everything from e-mail to news to applications and looking down on all of your hand, imagine all you can walk around in your daily life and have the information popping up on the screen in front of you. it will fundamentally change the way people work with these devices and bring about a new way and multiple new ways of using this technology and application. stuart: you think masses of people will be walking around with something like google glass? >> i think right now google glass is a first-generation technology but we will see rapid advancement with this type of technology over the next couple years where the form factor becomes more minimalist pecan is a huge advantage of using this technology is going to bring it
means dream. let me give you example. stuart: i got to move on. i will get back to you i can but i have limited time. the next big thing. >> i don't disagree. i will say i think the battle for the living room. the family gathers up, it is still a cluster. whatever company can write a check and figure out how to make a living room experience with the stuff i have on netflix, the movies i have, the n.f.l. live streaming over the internet make it one uniform experience with you don't have eight boxes attach to your television, where you don't have one cable company holding the barter for this or direct tv access for the nfl, of the don't have direct tv, it is an absolute mess. the living room with a beer and, not running around with mobile devices is still a cluster. stuart: the x box 1 brings it together or apple tv whenever it comes. >> using the tivo romney as a
great solution to search through all those things, still another box, still not there, can't get access to other things on another box so the x box 1 is the nice solution, the play station is a nice solution but not the. stuart: i have wearable computing technology, control of the living room and you are talking about google glass. you say you have a practical application for this? >> let me give you two practical applications. jenna and you are driving or walking somewhere in the direction. you see that map floating in front of you. let me give you another example, technology we are developing, imagine walking into a room and right in front of you before you look around the room your google glass is telling you who else is in the room, how you are connected to them and where you are so you must know there are ten people you know, five of your co-workers three people from college, friends of friends and you can walk up to them, get real-time information when the of the 2 and interact with them.
this will be revolutionary technology and google glass is the right sector for it so this technology will fundamentally be the next big wave of destruction. stuart: we hear you. one last one for you, the operating system, the new one for apple, there are reports is making people sick. >> the media loves to jump, it is making -- an epidemic. it is not. there are some reports that the parallax view whether shifting of applications and underlying layer behind the transitions are making people sick and so forth so all you have to do is turn it off. you can turn off but of those settings. stuart: it is not the prelude to lawsuits but it was a big deal. >> a very proud of it so it is a feature that might not make people happy. stuart: let me wrap up our fresh batch of beaks. thank you very much, clayton, thanks very much.
i am very sorry to call you at the. is that an insult? >> not at all. proudly geek. stuart: great stuff. we appreciate it. finally, finally the government of california has his priorities straight. he is not going to do fracking or cut taxes. he has signed an anti paparrazzi bill into law. what is next? we will be back. thank you orville and wilbur... ...amelia... neil and buzz: 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...
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win with our fans. stuart: this is an interesting talk to a business brief. water has been discovered in full oil on mars. dirt samples revealed two pints of liquid water per cubic foot. not freely accessible but bound to minerals, the curiosity rover has been on mars since august of last year. mcdonald's taking the hit from working's fries. mcdonald's stands to let customers choose from fruit, salad and a side dish instead of real fries. part of its commitment, mcdonald's also agreed to advertise milk, water and juice, stock is down. no connection. electronic arts all in college football video game series and lawsuits raised against the
n.c.a.a.. it wants compensation because their images have been used. imogen lloyd webber is next. so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger.
bjorn earns unlimited rewas for his small business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? stuart: how far down is it? nicole: it is off of the lows of the day. list point was ninety-eight dollars and $0.50 a share so it was down 12%, 13%. right now it is down 8%. they are cooperating. we are talking u.s. homeland
security, immigration and customs enforcement, u.s. fish and wildlife service's. they are in there, checking out everything on lumber liquidators which imports certain woods and materials. stuart: we have tom sullivan back on the show. he invited president obama to his house for a fund-raiser. nicole: was it scheduled before this? stuart: we just booked it, just put him on. we want to get him back. he opens up his house to the president for fund raiser and now has been rated. what will he said monday morning. thanks very much. she fought for and now as it. callie belly -- halley barry celebrating the new paparrazzi law which protect kids of celebrities in california. our next guest is all for. imogen lloyd webber, a political commentator, you like this. >> i do. i have an opinion on this. you don't choose to be the child of a celebrity.
these paparrazzi especially in california have been saying the most horrific things to these children to get them to cry, take a picture and sell the picture. stuart: does this law make the paparrazzi stare certain distance from the children or stop them talking to the children? how do you stop them having contact? >> we will see when it is implemented. it is very first amendment. they didn't want to cross the first amendment. not about taking the photographs, they are not allowed to harass. interestingly in the u.k. they are a lot stricter which means celebrities at home in london for so many years but you can't print a picture of a child. you pixilated the image and so forth. i think overseas, to protect this, a great country but at the same time you do need to protect children. stuart: i am with you on this one. one quick one for you. the nfl, the national football league.
>> it is not football. stuart: the nfl is going to play a game in london this weekend, sunday, steelers versus the vikings in wembley stadium. >> that is where football is played. is played with feet. stuart: are you going? >> back to london. anyone in london will be going because it is what we are having. stuart: why do you think -- charles: same difference. in rugby the guys are close to each other and don't run 80 yards and then crashed into each other. any nfl all player would be a star in rugby. having said that you should watch it. stuart: you are president of america. the not trash football. a mistake he should not make a. >> is illogical, it is not played with feet, is played with hands. every other country in america. stuart: some more disagreement coming up, series disagreement,
global warming is real. humans are behind it, so says the united nations. we will discuss this in a moment. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. folks have suffered from frequent heartburn. butetting heartburn and then treating day after day is thing of the past.
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charles making money with the current al gore. make this good because imogen lloyd webber is dying to go with global warming. charles: the parent company, stock is at a 52 week high, no one is paying attention, doing extraordinarily well. they have new products. i can't pronounce the name of any of them. and retail store. the company is coming on strong. 2012 was a bad year for them. she skin was high, your economy in the high, a huge break out, stock to go to thes. stuart: charles -- charles: don't have a pick. stuart: climate changes, quote, extremely likely man made. that is according to a new report from the united nations. imogen lloyd webber still with us regrettably. you are a brit, all europeans are believers in this area are
with them. warner: imogen lloyd webber in this part of a case 900 scientists looked at 9,000 reports and decided there was a 95% chance from those reports that climate change was man-made. so yes, i think we can now say climate change is man-made, what we going to do about it is the next question. stuart: how about the extra icecap, a million square miles over lead to early fall period? what about that? >> i was a climate change scientist, nasa says climate change is real, i trust nasa on this one. 9,000 scientists are the experts. stuart: everything is climate change. it is weather, isn't it? >> the weather is a problem to the american economy. 65 -- stuart: sandy was a direct result?
>> we will see those weather events because of climate change, yes. charles: i am glad -- we never have great musical four seasons. these to college seasons, summer, spring, fall. when we talk about these disasters people of building where they never bill before so that gigantic storm that hit galveston, most deadly storm in american history. if there was a metropolises there it would be the most significant storm in history and we would be talking about global change 50 years. i think it is a scam by the u.n. to steal money from rich nations and redistribute it to someone else. stuart: he is right. >> no he is not. he is not a scientist either to my knowledge. charles: i do know four seasons. charles: from the beginning -- >> it has speeded up. it before earthquakes killed a million people in china. stuart: what you mean it is speeding up? >> nine of the hottest years in history happened -- stuart: in the last 15 years the plan that has not warmed, 15
years. all the scientists you quoted are trying to figure out why, what has gone wrong with their predictions. >> 95% chance climate changes man-made. i believe in scientists, not economists. stuart: we are out of time. my left ear drum is pierced because of this. it was a pleasure. >> i suppose too. stuart: you going to stay in america and conflict this nonsense on us? >> extraordinary benefit. stuart: thanks for coming. >> thanks for having me. stuart: stick around. before it bailout, 1-party rule, your take on that is next.
thank you orville and wilbur... ...amelia... neil and buzz: 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.
paying for corrupt bankrupt city of. here is what you had to say. eric says michigan does not do reward d 4 decades of failed policy and financial mismanagement bailing them out rewards their economically disastrous behavior. sandra says i am sick of bailing out the losers. when do hard-working stiffs get a bailout? good question. and gee says when are we the people going to say enough is enough and stand up against this tyranny? strong words. what do you say? charles: i like the idea someone use the word losers. this stuff makes them even more 47% functionally illiterate adults, that is the population of detroit. giving them money is sort of like giving me an ikea furniture set without instructions. you are only making the problem worse and until we get to the idea that tough love is true love instead of handouts we are going to be in this in coal. stuart: we are in agreement. monday we got an exclusive
interview with co-founder tom sullivan coming back. you are not going to want to miss this one. dagen mcdowell is here. is yours. dagen: there have been issues that i read about. i can't wait for that, have a great weekend. the senate set to vote in the next hour. but then what? the president's health-care law, looking to keep the government running. step down as commissioner for america's past time. is this the second act? we are not making this up. federal reserve chief ben bernanke, and ready to give up these for salad? mcdonald's will soon let you choose between fries or greens in the value meal? same price. is there ever a line you are standing in where you don't see somebody playing that game? the makers of candy crush are looking to crush it and go public. th
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