30% and you're predicting 30 purse and you'% and -- >> i'll stand up and applaud. >> thank you very much. >> 1998, do you remember where snurp. >> we'll see whether we're applautding at the end of the year. >> if you did have a sell off, your guys should have trouble. so you should be happy -- obama. should you be hap you should be happy that i'm lirt because it's playing in to his whole re-election thing. you know who your guy is. so why would you not know who i'm talking about? >> on today's agenda, we do have a few economic reports. we'll get the case shiller home price index. and both men behind the index have joineded us on squawk in the last week to talk about housing. yesterday, we had professor shiller on and he said this could be a turning point for

housing or then again it might not be. at 10:00, get consumer confidence and the richmond fed survey, as well. and the u.s. equity futures after the big gains yesterday, dow up by 161 points for the third biggest gain of this year. you can see we are looking at arrows in the green across the board. dow up by about 36. also the supreme court, justices are expected to hear arguments focusing on the heart of the case that involves the health care law. hearings began yesterday. today's arguments will be focusing on that provision that requires everyone to carry insurance or pay a penalty. the decision is expected by late june, but this could be the heart of the case. . can you force people to carry insurance and there are those who say, no way, you can't do it, and then there are those who point to auto insurance. >> can you create a market and then regulate it. once we've created it, obviously -- they're talking about whether you can do it. a lot of people said the economy. with what they said yesterday,

they've had very little -- but then again, you go back this past history and these guys will break the stones of both sides equally. the side that they're even tougher on sometimes, they end up siding with. >> i'm going to make a prediction. >> yesterday you said that. there's no way they're rejecting this law. >> i think they'll reject it on this particular issue. >> there there's been a broad commerce ruling since 1938, something with wheat or something. they have given congress much more authority because they're saying basically the framers of the constitution didn't realize that so many things would can along and they give a lot of leeway. >> you're calling 30% on the dow. give me something. >> he's trying to fire up the base before you've even got anything to be fired up about. they're not going to reject it. >> and we'll know this summer. >> here's the problem.

it is a lose/lose situation for the right. because if the conservative judges uphold the law, it will be the law was right all along, even the conservative judges have upheld it. if they don't uphold it and they reject it, it will be they were conservative judges that were put on the court by republicans, we knew that there was a chance that -- will either way, it will be discounted. if they reject it, they'll say it's because bush/gore 2000, citizens united, it will be 5-4 with these on the court put there by george bush and these other republicans. this they don't, it will be that's what they should have done. it's a lose/lose situation about they reject it and it will fire up your base either way. >> i don't have a base. unfortunate unfortunately. >> you seem very solid sitting here. >> it's a good seat i do have

corporate news. tim cook is in china talking with government officials trying to clear up a pile of problems in the firm's biggest growth market. among the biggest issues, apple's contested ipad trademark and treatment of local labor. we've heard lots of stories. and then other tech news, payment technology company on track innovations filing a patent infringement lawsuit against t-mobile this time. you'll be able to pay with a phone. and you know how you can tap your credit card? that involves -- >> i like the phone thing. >> you like that. well, that's coming to a place near you. >> how do you spell it?

>> near as in near. it's near and it's a field. so near field. >> i've heard of muirfield. there's one in ohio, too, where jack's course is. muirfield village, right? >> we should play golf together. i'm so bad. >> i'm bad, too. i am now. it's an age thing. >> you're not that bad. you can actually play and get out there. >> can i h i can hit long hots. aig expects a profit of 5 to $10 billion in the 2008 bailout when all is said and done. do you believe that? what kind of fuzzy math is this? >> it's tough to get there. >> a lot of tax loss? >> a lot of nols. net operating losses. that help get you there p. but i've always thought that the money could ultimately come back.

>> really? >> $5 billion, $10 billion, i don't know. i will always remember the night the deal was made, jamie dimon made a bet with one of his bankers and said for ten bucks and said that they will get their money back. >> ten bucks. >> and jimmy lee took the other side? >> took the other side and said he didn't think so. >> is there a time frame on this? >> i don't think there was a time frame. but ceo -- >> was talking to cramer. said the company now has an awful lot of capacity to buy back stock. he assumes most buy backs will come back from treasury's 70% stake in the company. and former mf global executives will head to capitol hill this week. house financial services committee holding a hearing. according to prepared testimony, the bankrupt firm's general counsel will tell lawmakers that she was not aware of the seriousness of a shortfall in customer accounts until the final hours of the firm.

lori ferber will also say she resisted having an mf employee sign off on a document assuring jpmorgan that fund transfers were proper because the request was too brad. >> they didn't want to sign these documents. what's so amazing about this story is that jpmorgan calls up mf global and says this money you just gave us, you have to tell us where this money came from and you need to promise us that it wasn't customer money. when you get a phone call like that and then the lawyers say we can't actually sign something that's so broad that says this isn't -- because there's something a little -- >> if about somebody outside the firm knew this was going on, how come somebody inside the firm didn't. that's got to raise the question, right? if you know this outside the firm, how can you not know what's going on inside the firm. we'll find out more. in the meantime, britain has reportedly held talks to try and sell part of its stake in royal bank of scotland. bbc says the uk could sell as much as a third through a

multibillion pound deal not emnept at this point, the government currently holding an 82% stack. and bats u.s. market share dipped after its ipo glitch, but the company says it was off its month to date average by less than a percentage point yesterday. a little unclear when or if the company will attempt to go public again. did you hear yesterday the ceo was on "squawk on the street" and jim cramer and david faber really gave him the business. he said we're trying to build confidence in the markets. cramer had no two ways about it. building confidence, are you kidding me? >> they were in the business of undermining it. would you do business with them at all? >> no, but i wouldn't have come on tv yesterday. >> faber even said i hate to pile on on, you've probably had a tough week he said, but you've got it to be kidding me. who is responsible for this.

>> it's a story tell's never live down. >> make sure you can handle it if you're going to run triple -- >> a software glitch. can you write software? >> no, but i'm not out trying to get people to give me money. >> i know a little html. >> but that's not real programming. >> do you remember basic some? i know a little basic. >> when i was watching, i was like, you know, are they -- what kind of people are these that can sit there for -- and what are they writing, a little something equals -- >> html is not real code. >> do i a high performance paschal. or cobalt. >> what about ruby on rails. >> he's coming on today.

marco rubio. is that different? >> we can ask him if he knows how to write it. rio tinto inviting bids for its diamonds business. analysts suggest it could fetch about $2 billion. the company joins rival bhp billiton in backing away from a business that has lost its sparkle and this one's fascinating. hewlett-packard and oracle both seeking pretrial wins in their bitter legal battle over whether oracle can end support for a heavy duty micro processor. it says intel made it clear the chip was nearing the end of its life, but hv argues the company agreed to support would continue an earlier settlement. it always comes back to mark herd. hp is suing oracle calling the sdgs decision anti-customer. if you could see the press

releases, it is classic larry ellison, hp. >> they want to quit providing support because they say the intel chip doesn't have much longer of a life? >> exactly. let's see if i can't pick up the press releases. just the back and forth that happened overnight was classic. >> they hate each other because of the mark herd situation. >> he ramped it up. they hated each other before that. here we go. rather than filing a legal motion, hp has yet again filed a press release that continues its campaign of lies about what's called the eye continue yum road map. intel documents -- it's just a long and con vow looted -- >> so the battle continues. >> it's a fascinating battle. and a little bit of deal news.v >> so the battle continues. >> it's a fascinating battle. and a little bit of deal news.

about $500 million in cash. >> if it was -- it's produce announced lomb. not that i really care. but -- >> do you wear charactontactses? >> i do. i have a bifocal in my left eye. it's really weird. if i look straight, i see far away. if i look close, it tries to take care of some of my age related nearsighted -- far sightedness. but with me, i have one eye this way, that's where y. a lot of my disorientation i can splcan bla- everything is based on age. off camera, i'll explain other things that happen. >> i don't want to know.

>> let's check on markets. i'll ad will i be t what did bernanke say, we'll never it turn off the faucet? >> he said we have all these strong data points, but we don't believe them. so if if you don't believe the numbers that are coming in and you're data dependent, that means you won't raise rates before 2014. two year yields actually fell. so people don't believe this is happening before 2014. >> they're's what i'm worried about. in terms of what happens with in november, this oil board. can you imagine -- let's say the conspiracy they'res theor theorl be out there. it will be, wow, should you have said okay to that keystone thing. you're going to hear that the oil industry has decided to -- >> you know that the keystone

could notten the real reason behind that particular -- >> no, i'm saying that the oil industry itself, you're going to hear that they have decided to not refine as much or put gasoline prices up to try and have some type of say this who the next president -- you'll hear conspiracy theories. >> from the democrats. >> yes. if it goes to five bucks that will hurt the economy, people will be mad about gasoline prices, you'll hear the criticism that we didn't open up enough offshore territory up and -- you see where we are. and it's four bucks now. >> as natural gas prices -- up another 11 cents the last two weeks. but natural gas prices continue to drop. they settled yesterday at 226 and they're down over 25% for the year to date. >> if you were an oil company executive, who would you be

backing? wouldn't it be something you'd like to try to sway if you could is this. >> i get that. i'm not convinced that the leaders of our businesses in america are that cynical. at least i hope not. >> some said people are not hiring on purpose because they're mad about the regulations. >> i think we've had a number of guests who even said -- >> doing it sort of because i'm going to take my ball and go home. >> the idea that anybody's not running their business for the best that they can manage -- >> because they're mad. i'll show you on the first friday of next month. >> i'm not sure what they're trying to show. >> i think they're mad that the anti-business stance for the last 3 1/2 years. but you don't buy into that. >> i buy rhetoric. i don't buy -- >> that's what i mean. you haven't seen new regulations around? >> i have seen a few. >> epa, none of that has

bothered you? >> do you think the nlrb has changed the way -- >> they couldn't do car checks, so you don't even have to tell companies now. two weeks, boom, you can do it. all kinds of thing has executive power has been able to -- >> we did have a guest host who said his company looked at opening a new factor and ended up doing it in china instead of the united states because of the nlrb. >> rhetoric matters, too. even if that's all you grant me. >> i'll give you rhetoric. >> ross westgate is standing by in london. and we saw the big gains tip ov continue overnight in asia. >> yeah, we're not quite at the session highs. we've pulled back from those which we hit about an hour and a half into the morning. you can see on the chart we were

stronger around sort of an hour and a half ago on the dow jones stoxx 600. ftse 100 had gains yesterday of 0.8%. currently just up a quarter of a%. we were up 0.8% earlier. it's been a classic qe play in terms of the gainers because basic resources, one of the top performers today, it's been a big underperformer because of fears of china slow down. banks up cyclical and autos also. oil and gas is the weakest performer right now. in terms of currency markets, it boosted the dollar up to around 1:3377 right on key resistance levels. just pulled back to 13352. good italian auction morning.

yields went up a little bit. euro-dollar yen pretty said didity at the moment.other thing that moved, aussie dollars that been an underperformer because of a leverage play on china. just a level thousand with the u.s. on the day. 10519. but we were 01336. down at two month lows. as far as the bond markets are concerned, just keep your eyes on yields in italy. just over 5%. spain still below the 555 we had on friday. and that's where we stand in europe. back to you. when we come back, we'll talk about a big beat for a home builder. he's a squawk anchorman by day. a father and best selling author by night. now joe and blake are at it again, releasing a new paper

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builder. it's available today. builder. it's available today. we we have nice green arrows across the board. making headlines, revenues also topping street con isn't sus. the company reported a 33%

increase in new orders and improved margins. joe. >> now let's check out the weather. today's national forecast. scott williams, it's like 30 degrees this morning. my coats have been put into moth balls. snow tires are off the car. it would be perfectly city metry cal if we had a big snowstorm. we had one in like late september. are we going to have another one in april? >> joe said it, not me. don't mention the s word. no, it looks like we'll just pi find cold conditions right now and later on this afternoon, temperatures in new york city will be in the low 50s. but we can't rule out the possibility of a snowstorm potentially down the road. but this morning, yeah, it is cold. new york city, philadelphia, washington, d.c., we're looking at frost and freeze advisories, as well, for parts of the ohio river valley and the mid-atlantic. take a look at some of the temperatures here in the 20s in boston, below freezing now new york city and of course we're in

the 30s in washington, d.c. as well as richmond, virginia. zooming in closer morning, 29 degrees in hartford, 33 philadelphia. albany, 24. syracuse 22 glees. so of course typically for the new york city area, our last freeze on averages toward the end of the month, boston early april, and pittsburgh late april. cold, but we will find sunshine. windy conditions as we go hour by hour, and look at hose temperatures by 6:00, upper 40s new york city, low 40s in boston. but with the wind, it's going to feel even colder. so certainly jackets and sweaters. a cool start across parts of the southeast from charlotte to atlanta, but beautiful weather on tap with that sunshine by the afternoon. if you have some travel plans, watching out for some of those airport delays toward the pacific northwest, san francisco, rain and wind. minneapolis, a few sours and storms. and of course we'll watch out for that wind across parts of

the northeast and new england. that could cause some airport delays. so cold area of high pressure is bringing the colder air, so a shock to the system, a reality check really for the northeast and new england. back to you. >> i'd rather have it warm, into the. i've had both and i prefer warm. >> do you want to move to southern california? >> no, i want to move the south carolina weather up here. >> we could do that. >> we are doing that according to a lot of people. thank you, scott. when we come back, we'll get the picture from the pfutures pits. but if it's tuesday, it must be time for trump. the donald joins us at 7:30 eastern on talk business, politics and even tim tebow. [ female announcer ] it's time for the annual shareholders meeting.

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welcome back to "squawk box." i'm joe kernen along with becky quick and andrew ross sorkin. we're approaching 6:30 on the east coast. today the obama administration is expected to propose the first ever standards to cut carbon could dioxide emissions from power

plants. they argue it will increase prices. the proposed rule will not the apply for existing power plants or new ones built within the next year. >> what about nat gas plants? >> will at t they emit it, as well. i guess you could apply the same standards. >> we also have other news. congress -- >> south carolina weather. >> i still think go weather. >> do you want us to go out will? >> we would have to start at 3:00 a.m. and be done by 6:00. you could get a lot of did golf done. congressional leaders holding talks on authority that would overt project shut downs. john boehner and harry reid are discussing how to proceed after boehner postponed a house vote on his proposal for a 90 day

renewal of current law. if no action is taken by week's end, the government would have to stop collecting gasoline taxes entirely and cut off the flow of money to road, bridge and mass transit projects. >> really? >> that's what they say. >> let's talk about some of the legislation going through at this point that would repeal tax breaks for major oil companies. it did pass its first hurdle in the senate yesterday, but it is unlike will to become law. political watchers say that the vote, which was 92-4 in favor of moving ahead with consideration of those oil tax cuts, it reflects political maneuvering in the chamber and not actual support for the measure. i guess nobody wants to be on the side of the oil companies these days as oil prices climb. >> and how to the trading day ahead. john brady joining us from the cme. good morning.

so where is it here? y 1 n q1 on track to be the best quarter in 14 years. are that hold? is joe here going to be right ultimately on the end of the year? >> i think the odds are that joe will be right. if you listened to bernanke yesterday, what he suggested was that qe-3 is not off the table. there are concerns within the labor market, okun's law, the relationship between gdp growth and employment growth and the fed is still at a point in the cycle where the balance of risks are to an economy that slows and thus they are going to make sure that they do not normalize rates, they do not normalize rate policy. anytime in the near future. because they're perfectly happy to see the asset side of the balance sheet continue to glow through stocks. if they can do the same thing in housing, the crisis will truly be in the rear view mirror. >> and when you listen to bernanke speak and you think we're now 24 hours after his

talk, last night, what were people talking about in terms of is there anything in there that felt that was new that is actually changing what people will do today some is. >> will is a sub is an difference argument regarding productive growth and the role declining productivity growth has played in the economy. that addresses the excess supply and capacity in 2008, 2009 and how the dropping of productivity growth has actually aided the shrinking of that excess capacity. the fed seems to be playing in to that argument pretty well. so other than that and will this whole idea of financial repression which is keeping interest rate policy much lower than it should be, ten year notes back at 225 yield, which is very painful given what's going on within the economy. more and more accounts specifically retail are finding themselves in position where they'll chase return by buying

equities at these types of levels rather than in-veing in yields which remain paltry. >> when you get off the set this morning, what are you going to go do? >> go back to my guest and contact my clients and start our trading day. >> not aed bad answ pa bad answ. thanks for joining us. we never ask -- what i really want to know is there like a trade he's going to go make. people talk generally about what they think and -- i figured that they take their earpiece out of their ear and they go down to their desk and make a phone call or -- i want to know what they're going to do. i'm going to be here for the next tree hours. >> what about at 9:00? >> at 9:00, i have some phone calls to make. i have a lunch later today. >> michaels? >> no, probably not. i don't know. i'm not sure where we're having lunch. >> who is we? >> some people.

>> what people? we had lunch. we'll do that again. >> let's -- beck, can we have lunch some. >> i do have plans today, but we can do it another day. why don't we have breakfast. >> we'll see. >> comments, questions, e-mail us. coming up, the health care fight, what a decision could mean from everything to the national deficit to the average american bottom line. and then later, florida senator marco rubio going to talk about the race for the white house, possible vp contender will join us live at 8:30. we got trump, blake, a lot going on. coming up, coming up, you tune into him will every morning. you've watched her visit the set and seen her glow up. now authors joe and blake kernen have a new project to share with you. a new paper back version of

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>> welcome welcome back. a nice shot of the capitol. u.s. equity futures, we have green arrows across the worbeia.

you can see the implied percentage open as we speak. let's take a look at the oil boards. we were talking conspiracy theories earlier in the day. you can look at the spread between wti and brent there. >> 107 even though no one's bombing iran any time soon. with $2 natural gas. umm. plus, haven't you heard about refining? where are we, four bucks. >> different question. >> where will jeeves get squeezed? >> i can't believe that yesterday we had a guest who said $5 is the new $4. i always thought it was $4. >> jeeves says it's going to $5 at least. >> does he care? do you care? >> that's a very complicated question. >> it's very weird to see you with jeeves. in a mini cooper, jeefs is in front and you're -- you have

your driver in that little -- >> we're trying to save -- >> that's what i mean. when you don't take the chopper -- >> i wear a little hat with a propeller and it just goes. >> i think beyond $4.50, you're talk about serious implications for the economy. who is doing the board some. >> i'm still on them. let's look at the ten year. are you going to refi? >> what was amazing yesterday is the two year yield actually fell because of what bernanke was saying. the yield was up a little bit for the ten year, but you did see pulling back on the two year as people think maybe they're not going to raise rates before 2014. >> a guy was trying to sell me a ten year arm. >> why would you do anything but a 30 year fix? how much cheaper is it? >> it's basically a point

cheaper. you can get to the 3s. >> i thought we decided last week with liesman that they were definitely just saying '14 they will do it as soon as they need to. we were so sure that talk is cheap and they can keep saying it until they don't say it. 2012, this key raiey could rais anytime. >> the data has not supported them continuing to be so loose with the money. but now bernanke says he doesn't believe the data, that it's temporary. but i think about if you continue to see those strong numbers coming in, there has to be a point that breaks him. >> i just hope this is not about him. i hope there comes a time where he decides i can take a step back and not be in the paper every day and saving the economy every day and fine tuning everything every day. i'm just going to let this for a year, i'm going to let the economy do what it needs to do. >> and if he said nothing and

did nothing, what do you think would happen? >> i think we can get along with just letting things fall where they -- chips fall where they may. >> bring them back up? >> where the fortunes of the country and the world are not on ben bernanke's shoulders at all times. >> that means he has to raise rates. >> if you had delusions of grandeur, it would be good to be the fed chairman about that. >> you're saying the fed chairman is not somebody who has that much control over it? >> no, i think he is, but i don't want him to just think that he has to -- that the economy can't exist, can't flourish without what he's doing. >> so you would like to see rates go back up. >> i think they need to. don't you? >> i do actually. >> i just don't want him to think that he always has to be in there. there will be no job creation if i don't say things and keep rates low and talk about 2014. >> and not even raising rates,

getting rid of shf tome of the balance sheet. >> 3% on a seven year arm. >> i plan on being in my house for longer than seven years. you're arguing for higher rates but then you're saying -- >> i'm fine with ten year. i used to have a 30. let's go. >> i like 30. let's talk about a key debate thatting place in washington. over health care reform and spending is a big issue and this week the supreme court is tackling the constitutionality of the afford able care act head on. joining us is former omb director june o'neal. professor, thank you very much for joining us this morning. >> pleasure to be here. >> can you talk to us about the aspiring health care costs? >> i was bc ochl cbo director.

>> thank you for correcting us. you can talk to us about the health care costs and what you think needs to happen? >> it's true the costs of health have been spiraling and presumably that was one of the reasons for health reform. however, the particular health reform that passed the congress is not going to do that, it will inflame costs, not reduce costs. so as i guess most people know who look at tv or read the paper, the supreme court is now considering whether it is constitutional the affordable care -- this so-called affordable care act that the administration backs. >> i know you've done a lot of work on the uninsured. what do you think about the constitutionality of it? >> well, the -- i'm not a legal scholar, but in terms of

constitutionality, it does a lot of things that are totally at odds with the way the economy has functioned and our concept of what liberties are. usually -- another impetus for the bill was the fact that we do have a large number of uninsured people that's without health insurance. but theed addage you can lead a horse to water but you can't make him drink, this is you can lead a horse to water and he'll be made to dripping with a man indicate. now, this mandate, one of the odd reasons that the administration has used to uphold the mandate is the part that's really raised the hackles of a lot of people that you either pay and join up or you are faced with a large penalty, is -- nobody has ever done this

with any other type of products saying that you -- >> what about auto insurance. you can't drive a car if you don't -- >> but that's different. with a car, you need automobile insurance because if you hit somebody else. if you were the only one who was ever hit -- but that isn't the case sense the odds are that you might hit somebody else, that is not the case with health insurance. although i think the administration is trying to make it seem that your lack of health insurance is inflicting harm on other people, family because your payments are not -- the people uninsured tender to be younger and healthier than the population as a whole and the bodies are needed in the health insurance pool to make health insurance cheaper for other people. but that seems to me sort of the part of it that really goes against the grain.

and i think that that's one of the reasons that it would not be considered, that it would be unconstitutional. >> okay. professor, thank you have even for your time today. we appreciate it. coming up, another very special guest that i know very well, high daughtmy daughter, b will join us to talk about her newest venture and the launch of our paper back. stay tuned. carfirmation. only hertz gives you a carfirmation. hey, this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the spehertz.

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all right. joining all right. joining us in chairs, she's been here more than a few times, is my daughter blake. blake, great to see you. >> you, too. i see you every day. >> you do. how was getting up. it was tough, right? >> it's tough every day. 6:45 is tough. 3 is -- >> but you're like old habit at that. >> but you never get used to it. >> that's true. >> a year ago we did the hard cover. today the reason you're on is because the paper back is being launched. what i didn't know, this is "washington post" politics. best sellers, number six, water

isaacson's book, he was on yesterday, "steve jobs." number eight is this book, the hard cover. march 26th. i had no idea it was still -- >> when did the book come out? >> last may. >> so it's still selling. >> still selling. now the paperback is coming out. but in the last year -- did you see? >> yeah, this is big news dpup see this yet, blake? >> yes, i did. >> there's an ad in the wall street journal talking about the release of the paperback. blake, what has the last year been like with everything that's come with this? >> well, we went to a lot of places to talk about the book. >> the most exciting place and we're going to show a picture. remember when we were up there? remember the winklevoss triplets? we went and spoke at harvard business school. remember the name of the society we spoke with? >> the --

>> adam smith. >> adam smith society, the guy with the invisible hand. >> then she got to see harvard college and hogwarts, which is where the undergraduate -- did you ever see that? you were an ivy league -- >> i never saw it. >> that was amazing. i mean, look at that. >> then in the last year -- >> they could have filmed it there. >> went to orlando a couple months ago for the u.s. chamber of commerce meeting and she was introduced by the former u.s. secretary of education from the bush administration. she spoke in front 350 people. >> when an english teacher says anything about any paper writes, can she say "i'm a best selling author." >> but she is not someone who is going to rest on her laurels.

one of the things i was mazed at, i just saw your blog. it's wall street for today's teens. to understand -- >> the concepts of the economy. >> i saw your blog on oreos. >> oh, the oreos. >> tell me a little bit about what you learned. >> as i said in my blog, they may not be as high tech as apple's ipad but they have made over $1.5 billion in sales and are very important to many of the people all over the world. >> oreos. >> the green tea oreos in china. >> green tea oreos in china. >> i really want to try one of those. >> i don't know. >> i don't know if i want to try that either. you also saw a great movie this past weekend. >> "the hunger games." it was a great, great movie. >> what was your take on it?

you look at things differently than a lot of kids your age do. what was your take away? >> well, it was a marvel of literature and a fantastic movie. but unlike some the other movies we've seen, it did not have an evil ceo as the villain, it had an ougautocratic government. >> they have to have these fights because there's no free market and none of the disabilities have food. >> and when they tried to rebel against the capital, they got in huge trouble and now every year they have the hunger games where, you know -- >> well, you have found a new admirer of your blog. yesterday i checked it out. i'm going to friend you on facebook. >> i actually am not allowed to have a facebook. i am 12 years old. but have i a blog. >> i will like her on facebook.

>> follow on twitter and like you on facebook. >> you're allowed to have a twitter account but not a facebook account m. >> no, she has a blog. she's on greta tonight. >> we're going to be watching. blake, it's great to see you. >> great to see you, too.

investing in america. investing in america. florida governor rick scott kicks off our special day as a guest host. he's on a mission to create jobs and get america back on track. >> then we're going to take a look at who's hiring. ♪ oh, big old jet airliner >> a brazilian jet maker

believing in america's workers. and a key port taking aim at expanding employment. >> plus, it's trump tuesday. we'll find out where the donald's next investment plays are and more. the second hour of "squawk box" begins right now. ♪ >> good morning, everybody. welcome back to "squawk box" here on cnbc. i'm becky quick along with joe conce kernen and andrew sorkin. >> it is the first time in almost three years profits have dropped in china. the weakness stemmed from petrochemicals, and auto companies.

>> also, home builder lennar reporting first quarter profits. some new orders there jumped by 33% and lennar is also reporting improved profit margins. the futures this morning after yesterday's big gains. can you see right now those dow futures up by about 31 points. this comes after the third biggest day of gains for the dow this year. >> we are focusing on investi investing in america. florida governor rick scott has an opinion or two. thanks for being here. >> nice to be here. >> not all governors have a ceo background. governors, unlike senator, are

ceos more than most people in congress. the buck stops where you are. >> all decisions. >> we had a delaware governor that came in, he happens to be on the our side of the aisle but he's very conscious of balancing budgets, living within means. >> if you want jobs to grow you better have the lowest taxes, less regulation, less litigation. we're going to do it. we're going to make it difficult for everyone else. >> i would say what's good for states is good for the federal government. what you said low taxes, friendly business. but you can't move to a different country but hopefully people who live here aren't moving to a different country. people will not grant you to take that step that what's good for states is good for federal. >> you have to. >> people will move to another

state immediately. >> they'll move their business to another country. >> will they move their business? >> absolutely. how much money is sitting offshore because our taxes are so high? april 1st we'll have the highest corporate taxes in the world. people will pick where they do their business. you would. your customer is not going to pay more. >> the other countries, do they have the effective tax rates? that's what people always say. people who decide to dismiss what you said have already dismissed it. they're saying the effective tax rate -- >> it's not just taxes. it's how difficult it is to pay business. >> what do they pay? they don't pay anywhere near 35%. >> no. it's not just taxes. it's attitude. how difficult is it to do business, what's the regulations like, how hard is it to get permits. you put all that together and people make decisions every day. >> rhetoric, right?

>> no, let me ask you a different question. new york, one of the highest tax distri districts and look at all of businesses. silicon valley, same thing. >> we just picked up two congressional seats in two years. new york lost two. people are moving. it's just how fast they move. i talk to companies almost every day from new york. theies ys states to go after, illinois, new york and connecticut. because, one, the weather is better in florida. that makes it a little bit easier. i call and ask them what the weather's like. the other is customers are not willing to pay for companies in jurisdictions that have higher taxes, higher regulation, permitting cost. does it happen in a day? no. but it happens over a period of time. look at florida and texas, how they've grown as compared to how many congressional seats we've picked up and texas has picked up.

>> clearly the rate matters. i'm not saying it doesn't. but i think there are other factors that clearly get added into the mix. >> absolutely. and it doesn't happen in a day. right now i'm trying my best to recruit as many hedge funds to florida as i can. >> what's your pitch? >> first off i say we have the best beaches in the world, an educated work force, a right to work state. why would you pay 10% of your income to new york when -- think of what you could buy in florida. and plus the cost of living is much lower. first off, your taxes are high. you get paid 10% more. second, it's a nice place to live. we're number one -- we got an award for the number one state for teachers as an example. you care about education for your child, you want to be able to get a job and you want low cost of living. everybody does. >> i'm imagining you going

through these cold calls where you call up hedge fund managers. what's the reaction you get? how often do people say that's something we might consider? >> when i became governor, we were focused on people moving to the state, not recruiting businesses as much. now large and small companies are receptive. it doesn't happen in a day. this morning i have an announcement of a company that's going to open up something in gainesville, 400 jobs. time warner ordered 500 jobs. they picked us to do a shared service. keep calling and solving problems. in business you try to solve your problem. >> part what you do is taking it one step at a time by talking to companies. what are some of the broader moves that you've made in the state that you think is helping you attract business? >> first off, i put in a really great agency head with a pro business attitude. step two is cut the business tax

out for two-thirds of the company paying taxes. there's a 5 1/2% corporate tax and there are companies that don't pay it anymore. i cut the permitting process down to make it way easier to get a permit. and then a lot of it is just go call on people, find out what their problem is. i call on people all the time. nothing happens in a day but it didn't happen in business either. you start the process going, solve their problem. do you want to have a business in new york? no. just to do business you pay tax for that day. >> i wanted you to do the rhetoric thing. you kind of punted on that one. you say the biggest job killer in the country now is obamacare. that's more than rhetoric, believe me. 2014, you will know that. it's more than rhetoric. >> here's the reason why. if you look at every company in this country is competing with somebody probably outside this country. so if you have to pay for health

care and in another country you don't have to, you as a consumer, you don't care. you're going to buy based on price. if it's a similar product or service, you're going to price. so we're putting american companies at a big disadvantage. whether you believe in the bill or not, you believe -- whatever you believe, we're putting american companies at a significant disadvantage. and whatever the fee is at the begin, why would the government able to buy health care cheaper than you can buy it? >> i'm going to tell you what they would say, because you don't need to make a profit. the profit that is necessary for private companies to stay in business, you get rid of that and then you pay for administrative costs and it works beautifully. >> if that was true, then everything would be by government. it's not true. government's not as -- it doesn't react as quickly. you have to go through legislative processes, it's more

bureaucratic. >> you say it should be repealed. >> that's right. >> what do you think the supreme court is going to do? >> i'm hopeful they'll hold the mandate unconstitutional. i think it will get repealed because it's going to kill business. >> what do you think the right answer is? >> i organized a group in 2009 conservatives -- >> that's why i'm asking the question. >> step one, make sure there's unlimited competition. allow people to compete in the marketplace. don't have limit on what people -- make sure -- government should not say what health care you should buy. don't tell us the type of health care. somebody comes and politics you and says you need to cover this. everyone like that, like florida, we have 54 mandates. every mandate raises the cost. there's something i don't want. if you care about preexisting condition -- you buy your life insurance policy. you buy it at 30, you get it keep it the rest of your life as long as you pay your premium.

preexisting condition is irrelevant pu get cancer when you're 50, you have your policy and it wouldn't matter. >> what if you have a preexisting condition when you're 18, 19, 20 years old? >> in that case the government should subsidize it. but don't for a small group of people, don't change the whole system. then finally reward you for doing the right things, not smoking, eating right and exercising. if you did those thing, the usage would drop so much in health care, the issue in health care is not the insurance product. the issue in health care is the usage and the way we created a delivery system. we don't have enough competition. in a lot of states you can't build hospitals. if you had a monopoly, would you keep your prices down? >> no. but you still have all the uninsured people going into hospitals now. that drives the cost of health care up in those hospitals. if you're somebody who walks in the door, you're paying for somebody who walks in the door without health insurance. >> that's an issue of how you

should provide them insurance. the way i believe you should do it is you should subsidize. you don't put them on a government insurance product. >> i saw statistics. if you were to cover every single person in the emergency room, it's one number. you look at what obamacare's actual costs are and it's ten times to cover the uninsured in the emergency room. >> in 2009 president obama had a great opportunity. unfortunately what happened is we went to a big government program. no big government -- look, every government health care program in the world they overpromise. they promise you the world. they run out of money. and then to control usage, they pay people too much. they pay the hospital too little and the doctors too little. so what happens, nobody wants to show up to take care of you. it gets rationed that way. then what they do is they say they have somebody else make the decision on whether you deserve

the health care or not. we're not going to accept that in america. >> did you endorse anyone yet? >> no. >> jeb bush endorsed someone finally. he was a florida guy, a florida governor. >> i got elected to run the state. i got elected to run the state, get the state back to -- >> what are you waiting for? someone new? >> no. i got elected to run the state. >> tack a pick. santorum, romney, gingrich or ron paul or other. >> all of the above. my job is to run the state. my job is not to pick a candidate. i ran for the first time in my life two years ago. i was not the establishment candidate. i won without any endorsement. i'll let the public decide. >> still to come this morning, the director of the port of miami on jobs, the economy and why his port is what he says is a great economic indicator. as we head to break, take a look

at gasoline prices this morning. we're coming right back. up next, investing in america. gold choice. the freedom you can only get from hertz to keep the car you reserved or simply choose another. and it's free. ya know, for whoever you are that day. it's just another way you'll be traveling at the speed of hertz.

. embraer . embraer takes flight in florida, launching a new engineering and technology center in mel bourne, creating about 200 jobs. thank you for coming in this morning. we actually had a little bit of a debate this morning, just now in fact, about why companies decide to do business in different states and not just different states but around the world. you decided to do business in florida. the question then is why? >> actually, our headquarters were founded if 1979, located in ft. lauderdale. that's where i'm based. our history in florida goes back a considerable ways. and we know the state very well. what's halving in bravard county is an initiative we took on a few years ago where we decided to move some of the assembly for the phenom 100 and phenom 300 to the united states. we did a study of about 20 states.

we narrowed -- in terms of trying to develop a site. we narrowed that down to three states and six sites. three of those six sites were in the state of florida. it was an industrial operation. >> who else was on the list? give me the finalists. >> that's propriety information. they were east coast cesen tric and gulf. >> tell us about the process. you said you were down to three different states and three different locations in florida, the top six. what happens? how does it work? what's the process? >> there's actually -- it's a pretty complicated process. you have to evaluate a number of factors and weigh them depending on operating requirements of the project. over the last five years we've done probably seven or eight economic development projects,

expansions, in the united states and different states. and you weigh each one of the factors. >> what other states have gotten your business? >> tennessee, connecticut, arizona, minneapolis, kentucky and of course florida. >> if you were to weight the top reeree issues in your mind when you decide who do a project like this, they are what? >> so obviously the availability of a skilled labor force for us is very important. the type of jobs we create, the type of work that we do lends itself to high tech jobs. also, you know, a pro business climate in the state is very important for us. and also other factors like expedited permitting and things that help us get a quick start. >> is there a state that you thought you'd go into and then you had a conversation with either the governor or somebody else and said this isn't going to work for us? >> no. as a matter of fact most of the detailed work we do is advance work and they don't know who we

are. on with we have a good probability we know that's a place we would go, we would announce ourselves. >> how important are taxes? >> obviously the -- from a business perspective the state of florida is important from a tax perspective because it has a favorable environment there. it's not an overriding factor. it's one of the factors. the three factors i mentioned before, labor. the availability of land for us at airports is important and the room to expand. >> you're investing in america, too. you're a company that's building things right here in our country. what do you get -- what advantages do you get from that and where do you see the country right now in terms of the country and what's happening? >> in the case of the phenom 100 and 300 that we just moved some

of the assembly to brevard county, this brings the process closer to our customers. it allows them to visit the facility where the aircraft is being made. in the case of the 100 and 300 -- for the case of mel bourne itself, we have a customer center where cost merce will come all from all over the world to design the interior, the pain schemes. they come, rent cars, stay in hotels and east in restaurants. it's good for the local economy itself. for the case of florida with the retirement of the space shuttle, there's an abundance of talent there that's available, engineer, assemblers that we have examined and we feel lend themselves very well to the type of work that we want to do there. both from an assembly perspective and now with the new announcement for an engineering and technology center to staff that with the engineers that we need to make that work. >> what do orders look like right now and what does that tell but the strength of the

economy here in the united states? >> in terms of let look at it from a commercial jet perspective, we see opportunities both here in the united states and abroad. on executive jets the market is still recovering here in the united states but, again, opportunities in latin america, asia pacific. and so the sustainment of the assembly lines for us is important and we think the florida solution is one part of that. >> how much damage was done bit fallout from the financial crisis and people looking askance at private jets, executive jets? >> just like all the other manufacturers, we were affected also. but we see the market in the united states being key for us. that's why we're here, that's why we're present and making airplanes here, and we believe in the market and we believe in the recovery of that market. >> and you're picking up market share right now? you're doing well as compared to your competition? >> well, on the commercial jet

side for sure. we're the leader in the market up to 120 seats. on the executive jet side we obviously are right in there with our products. we have modern products. the phenom 100 and 300 are modern. we're coming out with two new executive jets, the legacy 450 and 500. >> your competitor for commercial -- >> bombardier. >> they're competitive for us on the personal jets and executive jets. >> i like the embraer jets. they're easy to get on. when you're on a big jet -- driving out to where you take off takes as long as the flight sometimes. the little ones go right out, take right on. they're great for short haul. i'm constantly on an embraer. >> i'm glad to hear that. >> thanks for coming in. what are you flying back?

>> one of our customers of course, jetblue. >> you can see them on cnbc. >> when we come back, michelle caruso-cabrera in cuba to cover the pope's visit and why u.s. businesses are extremely interested in cuba's potential. and don't forget, 7:30 this morning, donald trump. everything from mitt romney to tim tebow. he'll cover it all. what famous filmmaker was born allen stewart konigsberg? huh! no! who's gonna help cover the holes in their plans? aflac! quack! like medical bills they don't pay for? aflac! or help pay the mortgage? quack! or child care? quack! aflaaac! and everyday expenses? huh?! blurlbrlblrlbr!!!

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now the answer to today's trivia question. what famous filmmaker was born al general stewart konigsberg? the answer -- woody allen. welcome back to "squawk box," everyone. when a flight attendant says turn off your mobile phone,ing nor them at your peril. alec baldwins knows this. now the head of the new york

port authority says it's going to be considering levying hefty fines against those who do not comply. pat foye says his goal here is to cut down on behavior that causes flight delays. and if you're looking for a growing economic segment, you may want to check out your local bars. craft brewers saw an increase in sales last year. the craft brewers had nearly 5.7% u.s. market share last year. >> we have breaking news. john mack, former chairman and ceo of morgan stanley will join kkr as a senior adviser. you're looking at me, joe, as if i'd lost my mind. >> i didn't realize that. >> a little bit of news. he has been running morgan stanley since i want to say 2005, he joined morgan in 2005. james gorman now running the firm. and now john mack looking for his next post in life and this

is the next post. he will be the senior adviser at kkr looking to help them with deals and some other things. so a little bit of interesting news, what's going on there. >> a look at the futures, see what we can expect when the opening bell rings this morning. after a nice day yesterday, futures were indicated a little bit higher this morning, up somewhere around 30 points, 36 now, 35 points. we're going to watch the shares of apollo group today. they best estimates with its latest result but is warning of a slowdown in student enrollment and that erased an initial after-hours gain. you can see what happened late yesterday. as we head to break, tim tebow is excited. 44 times. >> i'm so excited about being a jet. so excited about meeting my teammates and i'm very, very excited. so i was really excited about that. all right, i'm excited. i was excited about it and that would be exciting for me.

i'm excited to be a jet and i'm excited to be here. i'm excited to be a jet. i think the exciting thing is i'm just excited. he was excited and he was excited about working with me and i'm excited about working with him. i'm excited about that opportunity and i'm excited about that. i'm excited about my role here and i'm excited. i'm excited about the opportunity. i'm excited to be a jet. that excites me. they were cheering pretty loud. that was exciting to see. i think he's excited i'm here. i'm excited i have the opportunity to be a jet and i'm exciting to have this opportunity. it's exciting. it's exciting for me to get opportunities to share that. i'm excited to be on a football team and i'm excited to be on this football team. >> this was not sponsored by us. this is someone in the control room. we like tim tebow. >> we're excited. >> we're excited.

very excited. >> thank you all. god bless. >> coming up, linsanity, timsanity, trumpsanity. it's trump tuesday and the donald is ready to rock. from politics to the economy to investing in america. there's nothing donald trump went tackle. he's coming up when "squawk box" returns. ♪ i can do anything ♪ i can do anything today ♪ i can do anything ♪ i can do anything today ♪ i can go anywhere ♪ i can go anywhere today ♪ i can go anywhere ♪ i can go anywhere today ♪ i can be anyone ♪ i can be anyone today ♪ i can be anyone ♪ i can be anyone today

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. welcome back, everybody. all day long we're taking a look at investing in america. one man who has made his fair share of investments in america is donald trump. he joins us for trump tuesday. good morning. >> good morning. >> no better person we could have on on investing america day. tell us a little bit about what you see when you look across america right now. >> first of all, you have an excellent governor in your midst. he's done a fantastic job. a lot of investments in florida, a lot of people are investing as florida. rick is doing great job at governor. we're lucky to have him and you're lucky to have him on your show. we've made investments all over the place. we see things probably getting better. we think it's very, very

fragile. if oil goes up month more, it's going to come to a screeching halt. interest rates a huge advantage the banks aren't loaning much money in terms if you need the money. if you don't need the money, they want to give it to you by the bushel. that doesn't help very much if you think about it. there are lots of opportunities and you can buy lots of things relatively inexpensively in my opinion. >> did you see the commentary or i should say the speech from ben bernanke yesterday? he talked about what they've been seeing in the jobs market. he doesn't really buy into it at this point, doesn't think it anything more than necessarily a temporary bump and that he still sees some real long-term problems with this country, particularly with the jobs market. >> i thought it was pretty negative. i was actually surprised he was so negative just before the election. but it was, in my opinion, a precursor to getting a little bit of more of a stimulus. they really want to put more stimulus into the economy and

i'm sure the republicans are thrilled about that. but i just looked at his speech as a method of putting and injecting more money into the economy in the form of stimulus. >> some people say that this means that those low rates are going to be around at least through 2014 as the fed promised. do you make decisions based on the fact that interest rates will remean low for that long? >> i think they will remain low. they're historically low. what happens to our $15 trillion deficit when we go from 1% and less than 1% up to 4%, 5%, 6%, which is possible. then you're going to see problems. at some point if they don't do something about the deficit, at some point that's going to happen. we'll really have a big problem with interest rates and we have a big problem with fuel. >> but you don't like paul ryan's budget? >> i don't like his timing. i think for him to do that just before the election puts a tremendous negative spin on the republicans. it's fine, come out with the budget and do the budget but you don't do it at this time.

the democrats are sitting back and laughing. they can't believe their luck. so this is not the time to be discussing the kind of things he's discussing. now, the day after the election you start discussing it and you do something about it. >> sort of like missile defense. after you're elected you talk about cutting back on all of our -- no. donald, you may not have seen this. if you go in the "new york times," if you keep turning the pages and turning and turning and turning and turning but finally on page a-14 you'lly what the preside -- you'll see the president was caught on talking on an open mic about after the election i'm going to be a lot more flexible. what if it was a republican caught off mic like that? >> more than anything else he shouldn't have allowed it to happen. he has a mic on and up hear each other speaking. i think perhaps it's just the way business is done.

>> i agree with that. >> maybe we should just stop with all this stuff. whether you like him or not, that's really the way business is done. i think probably the more interesting part was the response from his russian friend. >> tell vladimir. >> gingrich you can always count on for at least his side of things. he goes i wonder how many other countries are waiting to start negotiating in earnest around the american people. so when we can get the american pete o people out of the way. i thought that was a good line. >> if you think about it, what the president says applies to what ryan is doing. ryan's doing everything just before the election and there's some pretty negative things of what he's doing. i'm not saying they shouldn't be done. they're very negative. >> you mean telling the american people the truth about entitlement entitlements, you don't do that before an election? this is the leadership people are always craving where they

say politicians shouldn't be saying things just for political expediency. they should be leading. >> and they'll be talking about it as they discuss their losses into the future. i think it's a very, very dangerous thing. i think it's a very foolish thing to do before the election. now something has to be done. something will be done hopefully at some point. but it's really what obama was saying to the russian. let's discuss it after the election. the republicans have decided brilliantly to put it up before the election and it's going to cost them dearly in my opinion. >> do you like what you saw in simpsons-bowles, donald? >> there's a lot of things that people liked and deficit reduction was very important. the interesting this evening is obama of the one that put them into commission. he's the one that started it and he ran from it as soon as he saw the result. he ran for the hills. now maybe it comes back to a certain extent but certainly there were a lot of things that a lot of people agreed with,

including probably obama, but he doesn't want to discuss it now and i'm not sure i blame him. >> i'm trying to figure out when you get through the election, no matter who win, no matter which way this goes, how do you get to the point where you can have some bipartisan talks, people on both sides of the aisle getting together and really agreeing on things? >> well, the first thing that has to happen is the day after the election this should all start, one day action. so the next election -- one day after the election you have to start because something has to be done. but it certainly shouldn't be started right now. >> but do you think we can get back -- things seem so bitter right now. i know it probably does seem this way every election cycle, but even before we really got into the real running on this time around it seemed like people were kind of unwilling to reach across the aisle. do you think that we can get that back? maybe we ask rick scott that as well. >> the public is not willing to have any tax increases. can you not get elected anywhere in this country by say uruguay

going to raise taxes. any program that says i'm going to raise your taxes to balance the budget still doesn't work. >> so you agree with donald, that you can't talk about this right now? >> first off, they shouldn't being doing it. we should be reducing our taxes. we've got to reduce the size of government -- >> that's right. >> in florida we had to raise the state debt and i walked in with a $4 billion deficit. you've got to do the same at the federal level. you have to figure out what is nice to have but -- you must to haves in if federal government but you got to get rid of the nice to haves. >> you have to cut taxes, you have to cut expenses and do all the cutting. it's got start very soon. it can't be a one-sided deal. the republicans in terms of spending and in terms. what we're talking about and deficit reduction and whether you're talking about medicaid and medicare, which people don't want to mention on the

democratic side but they certainly mention it on the republican side, i just think it's very, very bad timing for the republicans. i think it's frankly very foolish timing. >> if you can't have a one-sided deal, are you willing to concede could you see a way to raise revenue, whether it be by reforming taxes, lowering rates and cutting loopholes? >> becky, i've been in politics all of my business life. i have never seen the level of animosity, the level of hatred, the level of scorn, i've never seen anything like it like we have over the last couple of years. and in all fairness during a good percentage of the bush administration also. i've never seen anything like it. it used to be the democrats and republicans would fight and then go out and have lunch. today they fight and fight and fight and there is no lunch. you know, your question's a very good one. what's going to happen after the

election? hopefully there can be some peace after the election because somebody's going to have make a deal. >> in florida i'm working with the epa, with lisa jackson, with aerk holder to get a deal done with the everglades because there's been lawsuits going on for 20 years. as far as the election, it is so partisan. the public is mad. they're tired of government spending, ear marks, tax increases, fee increases. they're tired of it. anybody that says they're going to support that, they're not going to get elected. if you want to get elected, you don't talk about it this year. >> rick is an example. i was in florida a year ago and i saw rick did something that maybe wasn't politically popular but it was the right thing to do. he ended this ridiculous train system that was going to go from point a to point b. the only problem is you can drive it in your car must faster. it was going to cost billionsle

dollars. you're going to have to raise taxes. he cut it. it wasn't easy to do and now people realize he did the right thing. >> there's a lot of federal larges. people said florida's not getting that federal money. let's spend more. the whole thing was -- >> it was a federal program. >> it's like the bridge to nowhere. >> i told secretary la hood it's your project -- >> he was so mad. because he said how great amtrak was doing. he told us amtrak was making a profit, which was b.s. >> do you follow the train program to vegas? >> if you're going to drive a hundred miles to get on, it i don't understand. >> donald, have you been following that? >> i've heard about it. it's ridiculous. >> let the private sector do it. if they want to build trains, let them do it. >> you know another thing that's really having a negative impact, you go to palm spring, california, you go to different

place, these disgusting, horrible wind mills that are being built all over the country and they are absolutely a disaster from an environmental standpoint. i mean, they're noisy, they're unsightly, they're ruining the environment -- >> the non-ge ones are pretty unsightly. >> i'll tell you what, they're killing thousands and thousands of birds every moment, they're killing birds. i will tell you there's a group that cannot stand them. and it's not in my back yard. whenever you go into a certain area with the wind mills, the people that want them the most, they don't want them, not my back yard. the windmill situation is getting out of control and ruining communities. >> donald, just to switch topics before you go, tv business. i've been reading some news that the reality tv producer mark burnett apparently planning a sort of competitor maybe to "the apprentice" called "the job." what do you know about it? >> i know nothing much.

he mentioned it to me. it's great. we're 12 seasons on "the apprentice," we're still doing great. it's an amazing show. it's just been amazing. mark is somebody that cannot sit still. he told me the other day "i cannot sit still." anything mark does i hope succeeds. >> how about "the benefactor" with mark cuban. >> mark cuban's a good guy. >> oh good! >> he did "the benefactor." >> at the time you weren't that happy. >> we have our moments both ways. but right now we're doing very well together. we like each other. >> the producer it says we have to ask you about tebow. >> okay. >> he should have been in jacksonville. >> well, he had dinner the other night at anyway place, trump national golf club. everybody thought he was really nice. mark sanchez happens to live there and he could not be better. he's a great guy, hard worker, always working out. you hear these rumors about mark

sanchez. he's a hard worker. it's -- >> have you seen cape kate upto in his place -- >> off the record i never saw it but i did see it. i did see lots of beautiful women. i think one of them happened to be kate upton. but i'm saying that off the record, this is exclusive only to cnbc. kate upton is very beautiful. the members like watching her very much. rick, these are little benefits people get when they join my golf club. they get to see kate upton leaving and going. >> donald, you're not talking about doral yet. >> 800 acres in the middle of miami, a great area. miami is booming and the palm beach area is doing very well also. but i've done a lot of deals in miami. i've done them with george perez and michael and gill desser,

richard lefrak, a friend of mine. hopefully people will go to the perry. rick, miami is doing fantastically well and i think doral within two years will be the best resort in the country. >> donald, thank you very much. i did see you tweeted yesterday that the mira logo has been nominated as one of the top 100 buildings. >> and it's on its way to being number one after the people vote so that will be good. >> we will see you back here next week. >> congratulations, donald. >> speaking of architecture, google today, 126th birthday for architecture. the country itself sits on the edge of economic reform. michelle caruso-cabrera is in cuba. hey, michelle. >> hey there, joe.

coming up, we're going to tell you the latest on the pope. man was taken away at the mass last night. we'll tell you what that's about. and we're going to take a look at a lot of the seized properties that castro took back in the 60s. what do those properties look like now? we'll show you when "squawk box" comes right back.

welcome back to cnbc "squawk box." i'm michelle caruso-cabrera live in havana, cuba. pope benedict held his first mass in santiago last night and called on cubans to create a renewed society, a better one more worthy of humanity. you can see the huge crowds that showed up last night in santiago. before the mass a man was taken away. according to witnesses he was shouting anti-communist remarks. he's -- cuba has been communist since the 60s. as part of that process fidel castro began seizing american businesses. at the time more than a billion dollars worth. u.s. law says the u.s. embargo against cuba cannot end until those claims are resolved. we went to look at some of those businesses to see what condition they're in, what state they're in and we stumbled on others as well from other countries. take a look.

this store used to a woolworth, one of six here in cuba. in 1967 the company filed a claim saying they lost $9.5 million worth of property. this long line you see here is for a fresh shipment of eggs that just arrived. and there were banks that filed claims against the castro government as well. this, for example, used to be the havana branch of chase manhattan. you know it now as jp morgue an chase. and a building where they sold insurance. it says fidelity of maryland and national fire insurance. today four families live here. and the royal bank of canada may be thrilled to hear their building is finally going to be restored. supposedly this is going to be the supreme court of cuba. but first they have to fix this. this used to be the massive vault. can you see the massive iron door. not always claims were filed by big corporations. individual investors lost money to.

william poe said he lost more $9 million worth of personal property. he's dead now. we wonder how he'd feel about "midnight in paris" playing in this theater he used to own. >> coca-cola, this is one of their former factories. they're still using to to make beverages. these are sacks of sugar used to sweeten the soda. in the 70s, those claims were valued of a $8.1 billion. now when you add inflation and accumulated interest, experts say they are worth $7 billion outstanding. back to you. >> just 90 miles away from where michelle is, it's the port of miami, the busiest cruise port in the world and the nation's 11th largest container port. joining us is bill johnson. it's good to see you. >> soon to be a busier port, going to be the first port ready for the ships ready in 14 other

than norfolk and new jersey and new york. >> miami will be the first major port coming north from the panama canal at 50 feet, which is the game changer. that's the win. >> it was dredging that got you to that point. >> these gigantic ships, how big are they? >> the largest ships that come to florida today, container ships, carry about 4,000, the jargan in our business is teus. roughly 4,000 containers. at 50 feet of water the port of miami will receive ships carrying 7,000 to 12,000. it's literally more than double the current size, that means greater efficiency and greater economy. >> a game changer. >> how many jobs? >> for florida, 50 feet of water off the port of miami will generate in excess of 30,000 permanent jobs for the state. high paying, an average job exceeds $54, $55,000 a year with

a high school degree. >> there's no way to block this now environmentally, no environmental concerns, are there? no sand bars or anything around that -- >> it's federally authorized. only the u.s. congress can authorize a dredge. it's federally authorized. it's fully funded thanks to governor rick scott. >> when is it all going to happen? >> the u.s. army corps does the works and we're hopeful the work will be under way by this time next year. >> how long does it take? >> it will take two years or less. >> this was a big deal to get the funding. what happened, congress approved the funding and it never came through? >> no, funding had never been approved. as you were talking earlier on your show this morning, things in washington are not quite so easy to work. we had attempted for several years to secure the federal funding, the federal share unsuccessfully, i will add. right after the governor rick scott came into office january a year ago, he made a phone call and came down to visit us in

miami. we spent some time together and walked him through the project and the logic and the bottom line, this is a job-generating endeavor. the governor saw fit to support it and instructed his secretary of transportation to fund it. >> beautiful. >> it's state money. it's 30,000 high paying jobs. >> on top of 180,000 -- >> that's to start. >> we have about 180,000 jobs generated through the port of miami this year alone. >> that's fantastic. >> direct/indirect. >> thanks for coming in. >> thank you, governor. >> we're going to continue this conversation. when we come back, florida senator marco rubio will talk to us about the race for the white house. and then the long horn state meets the sunshine state. texas governor rick perry joins florida governor rick scott to talk economic issues. there he is! the party's arrived. ♪ [ both hiss ]

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stocks surging as fed chairman bernanke emphasizes his commitment to low interest rates. the s&p closing at the highest level in nearly four years but can the bulls find more room to run? >> investing in america. we'll talk growth in the u.s., jobs and politics with florida

senator marco rubio, texas governor rick perry and our guest host, florida governor rick scott. >> and a new initiative to get war veterans back to work. tom brokaw will join us on set. the third hour of "squawk box" starts right now. ♪ welcome back to "squawk box" here on cnbc. first in business worldwide. i'm bill kernen along with becky quick and andrew sorkin. our guest host is florida governor wreck scott. futures up between 30 and 40 points but just up a 11, pulled back a little bit. we had a good session yesterday. back at 13,250. >> in headlines this morning, it is the second day of three days of the hearings on the supreme

court of president obama's health care overhaul. justices are expected to hear arguments today focusing on the provision that requires everyone to carry insurance or pay a penalty. a decision is expected by late june. we'll keep an eye on that. and home builder lennar reporting upbeat fiscal first quarter profits. they earned 8 cents a share. revenue was above analyst forecasts. new orders jumped 33% and lennar reported improving profit margins. keep an eye on walgreens. they are reporting quarterly profits of 78 cents a share. sales also beat forecasts. wall green did report same-store sales drop of 1.5% compared to a year earlier. i would also mention since we mentioned in the last hour the news that john mark joining kkr as a senior adviser. a lot of people are going to keep an eye on that news and what it means to kkr and morgan

stanley. >> stocks are poised to have their best first quarter since 1998 capped by a bullish month of march as well. that might have some investors wondering if it's a little too late to go in on the bull run. joining us is howard ward, chief investment officer of equities and our own kelly evans. >> i just want to point out the market is up over 100% from the march '09 low. just since last october we're up about 29%. it's really been a pretty straight move up since the early october low. so the current price of the s&p is about 12% higher than its 200-day moving average. it's a little extended. we're sort of due for a pullback. i don't know what the catalyst for the pullback is going to be but i wouldn't be surprised if it earnings seasons, which is

almost upon us. some companies are going to miss and i'm sure the market will react. >> i don't want to mischaracterize it. longer term up see the s&p pushing maybe 1,500? >> yes, which would be a multiple of an environment of 2% inflation and 2% interest rates. the keep thing here is this big mispricing of assets between stocks and bonds. this has been the key feature of this bull market for the last couple of years is interest rates are so low relative to stocks. think about this in terms of the ten-year treasury, which right now yields 2 1/4%. it's higher than it yielded back in october we were down about 170. now we're 2 1/4. that's 44 times the coupon. think about a stock. think about paying 44 times earnings for a stock when the earnings were not going to grow and the dividend was fixed at 2%. would you really want to do that? especially with inflation at 2% and possibly poised to move

higher in the years ahead. >> every time we hear bernanke speak, the 2 year yield was down again after bernanke came out and said he was not impressed by what he sees in the labor market. >> today bill dudley is speaking, we'll hear from dallas fed derek fisher. he was among those saying there isn't going to be another round of qe. i wonder if what bernanke isn't trying to do is to get ahead of what a lot of investors see is this pullback coming. what we've seen is after the latest round of stimulus, that's when the economy starts to weaken and the fed has to come back in and try to get everything going again. maybe this time they're saying why wait. it's like the snickers approach. >> i think bernanke realizes that $4 oil is upon us, we're so close. $4 has been a red flag -- >> i'd love $4 oil. >> $4 oil. >> $4 oil?

>> $4 per gallon of kbgas. >> i knew what he meant. >> it's been a red flag for the economy and the market. we need to be cognizant of that. >> yesterday we had guys raising the bar on that. one of the guys who is the convenience store spokesperson. he said now $5 is the tipping point. >> it's true the u.s. can handle higher levels of gas prices in the pass but it's still a problem. you don't really see what it does to the distribution of how people are doing within a country. it falls disproportionately on low income people. that's masked that higher income people get in the market in stocks. >> and the unemployment rate is still 8.3%. a lot of those people will feel that. >> haven't you noticed in one of your gas guzzler -- >> it costs $70. >> people say 5 is the new 4.

>> last night on tmz there was a segment about how brook mueller, they had some celebrity filling up her car and they had a game, how much was it going to cost to fill up her tank? people were guessing $70, $80 and it came up to $98. >> did you say brook muler? >> yeah. >> was that charlie sheen's ex-wife? >> i may be wrong. >> if you can get to charlie sheen somehow. i didn't really care whether it was brook mueller. >> the public hears about gas prices. i was with fifth graders the other day and even they were talking about gas prices. it's having a big impact on consumers. >> i think the guy told us yesterday that consumers will drive five miles just to get 3 cents cheaper gasoline, which -- >> you see people more and more running out of gas and having to be taken to the gas stations because they can't make it, you

know, they're stretching so far they can't make it and the cost of having to repair your car when that happens. >> what does that do to the stock market? could that be the tipping point that -- >> well, i think you're going to see the impact on this on the earnings that are going to be reported in the next few weeks. >> you mean company margins getting squeezed, too? >> yeah. higher cost, combined with currency head winds. three months ago people thought profits would be up about 7%. now the expectation is flat profits. so that's not great. we still got gdp moving forward. as long as we're adding jobs to payrolls, the economy is going to do okay. we seem to have at least for the moment decoupled from europe. that's all great and we hope that continues but there are some red flags. another one, which i'm going to have to repeat it because i mentioned it the last time i was here and it's something that has to be on the bernanke's mind and that's the fiscal drag that will result from the expiration of

the bush tax cuts at the end of this year, it's 3% of gdp, it's $427 billion and you add to that the cuts that were mandated by the deal for the debt ceiling last august and you have a $500 billion drag, fiscal drag, going into next year. >> the fiscal cliff. >> that's right. and i don't hear a deal being made to address what. that's going to be a real hurdle for the economy and stock market and earnings. >> business gross's latest outlook letter, it's fun to read through and cease z what's on his mind at any given point. he's saying mea culpa on the selling treasuries call but pointing fought we're in a world where we can no longer bring forward growth, use a lot of the leverage we saw the last couple decades to inflation financial assets, perhaps rheasets become more attractive, commodities, land, that sort of things. it's a different call than people are making in the market now. but a different way of thinking about how the world is changing

and whether this is one of the reasons why we're seeing such high oil prices. >> thank you very much, kelly and thenank you for coming in. >> what is it to fill the chopper? >> honestly? >> every morning? >> $500 or $600. >> regular? i would put premium. do not cheap out -- >> we sometimes do medium. what's the medium one called? >> honestly if i can get charlie sheen to guest host, are you up for that? >> heck, yeah. just to watch. >> plus blake has blogged about high gas prices. >> i thought you were saying charlie sheen. >> tom brokaw is a legend in the news business. he's going to join us next to talk about a special cnbc and nbc news initiative to get american veterans back to work.

still to come, we'll talk to florida senator marco rubio and texas governor rick perry in the next half hour. "squawk box" will be right back. introducing gold choice. the freedom you can only get from hertz to keep the car you reserved or simply choose another. and it's free. ya know, for whoever you are that day. it's just another way you'll be traveling at the speed of hertz. what do you mean? your grass, man. it's famished! just two springtime feedings with scotts turf builder lawn food

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welcome back to "squawk box" on this tuesday morning. what happens when a soldier returns home from war? many find themselves on the unemployment line in an economy where jobs are already scarce. all this week we're honoring our veterans with a very special initiative called hiring our heros. cnbc and nbc news have teamed up with the chamber of commerce to get our veterans back to work. joining us is tom brokaw. >> when does the legend come on? good to be here. thank you very much. it's an important subject, especially for people in your audience. we've got about a million veterans coming home very shortly because we're drawing down in iraq and afghanistan. they've been coming homesteadily to the toughest economy since the agree depression, as i need not tell you. a lot of them went in when they were 17 or 18, just out of high school or maybe with a ged.

the ones we think about most of all are the trained combat warriors. they learned to kill the bad guys, work in small units. now they're coming back to an american economy that doesn't have a place for them. it's not just unjust, it immoral. they represent less than 1% of the american population. 99% of us have not been asked to even think about these wars if we don't need to. we haven't spent an extra dime out of our own personal accounts to support the wars. we've had tax cuts during all of this going on. so now they're coming back and we have an obligation, seems to me, as a country, whatever your ideology, red state, blue state, whatever, to reintegrate them into a civil society. this has been going on since the greeks isn't people off to war. they've always had a hard time after war, any society, figuring out how to knit each other back together again.

>> is this time around worse than what we've seen with other wars in the united states? >> i think in a way. when the vietnam veterans came home, they were shunned as a class as you know because they fought an unpopular war. but they put their head down and went to school and got reintegrated in an economy that was open to a lot of people. this is a different kind of an economy. the other thing is that everybody was aware of what was going on during vietnam because we still had the draft. now you have only volunteers, and most of them come from working class families, and they come from rural america many instances. they're bewildered when they're coming back. not only that but these are the two longest wars in our history. they don't know whether that car with that family in is it a bomb. they live and work in very difficult cultures in afghanistan and in iraq. so it just seems to me that we have an obligation, the rest of

us, to not just hold up a banner at the airport that says "welcome back, buddy." it's not been part of the debate at all or the dialogue for either party. i wrote an op-ed page piece during the 2010 congressional elections saying what's missing? we're not talking about these wars. we talk a lot about blood and pressure when we go to war but then we put it aside. >> i got out in '74 out of the navy. back in the vietnam, first off no one was helping you. it was an unpopular war. you couldn't wear your uniform off base. in florida we have our national guard we have 20% unemployment when they come back. so we started something similar called hiring florida's heros. have i over 500 companies in the state that have committed to hiring individuals that are coming back from afghanistan and iraq. and it's working but it's hard. >> it is hard. it's very complex. mike mullen, the outgoing

chairman said we didn't prepare for this, we need to think more carefully about it. they also have families back here that have not seen their loved ones for a long time. it's a readjustment for them to get involved. we're going to do a summit here in new york in the first week of may, try to bring in 10 or 12 of the model programs that are working so everyone can learn from each other because there are efforts under way in florida and across the country but we have to make sure there's no redundancy and overlap and what have we learned one from another. one of the big banks, for example, was very earnest at the beginning and kind of got everything fouled up. now they've made a recovery and they figured it out. they took a hot young major, i think he was a major, and everybody wanted to hire him and they put him in a cubic california. these guys grow up on a team. somebody said the other day that a young veteran went in and gave his resumé and the hr officer looked and said you don't have any experience here. he said, well, i took a squad, i

cleaned up a village, i drove off the bad guys, i worked with the elders, we put sanitation districts in and got water back to them and built medical clinics. i think that's some kind of experience. >> we have a package that you put together. let me set it up. last november the returning heros bill made veterans an attractive hire to businesses looking for a tax break but the incentive to hire these men and women could be much greater. their experience and training can be a valuable assets for a company's workforce. take a listen. >> good morning again, everybody. >> when mike wright came out of the nuclear submarine navy in '92, he choujoined the national guard and then got called up to iraq and afghanistan. he's back on the job now as a maintenance coordinator at the indian point nuclear power plant. are you a better man for having served? >> i think i am.

i think i'm a better man and a better employee. >> veteran hiring is a priority for this company. not out of sympathy but as an investment to the bottom line. >> the military really invests in the servicemen and women. it's a competitive advantage to tap into. >> although the military emphasizes teamwork and goal achievement, both critical skills in the business world, veterans face an uphill battle in the job market. 1 million are unemployed, 30% under the age of 24 are jobless. generally what did you think of the young people who were serving under you? >> they're amazing. they're amazing. they are willing to do whatever it takes to accomplish the mission. you wrote a book called "the greatest generation" and i think what we have right now is the next greatest generation. i think the leaders of tomorrow are being forged and have been

forged in that crucible of iraq and afghanistan. >> tom, that's a great piece. >> there are a couple of other things. that's a company that's doing the right thing, enter ji. he had experience before he got called back up again. that's an example of how it can work. i also did a story over the weekend with a young man i've been following since before the war began. he was a sergeant with a squadron in the third division, he came back, couldn't find a job, had some emotional issues as well with his wife. a man who lives out in northwest chicago has an internet marketing business. among other things he buys and sells junker cars and then gets them to the auction houses and rye claims them. he found charles weaver on the internet, drove to wisconsin, knocked on the door and said i'm here to help, hired him. it's been a win-win. sergeant weaver is doing phenomenal job. he's hired two other veterans. that's a small business, one guy

going out and saying i can make this work. and it's that kind of networking we have to think about. the other point is this is not about shoving out civilian prospective workers as well. unemployment is a big issue in this country for everybody, but these veterans bring something special when they come back because of all that they've seen and all that they've been through. at the university of iowa, the president made a deal for returning veterans, they could come to that campus and pay in-state tuition. she got 500 of them. she said she was stunned by how they lifted the campus. they were mature, they were mission oriented, you know, they gave a whole new dimension to the college experience. >> if a ceo is watching this right now or head of a human resources department who is thinking they're in the business of hiring, what should they be doing? >> i think they should get their hr officer or whoever worries about that kind of thing to get online. can you find a lot of information at the pentagon, for

example. they have one colonel in charge of this now and most of all what they have to do is say our door is open and learn from other businesses that are going through this. you have everything from combat warriors coming back to electronic technicians in the navy and air force who have a lot of experience in the modern world of the technology that we talk about. >> tom brokaw, thank you for being here. very good work. and as part of the programming, a quick note for the hiring heros initiative. cnbc will be live on wednesday from the uss intrepid for a massive job fair with employers ready to hire vets. nearly a million vets are unemployed and many more of our military are coming off of active duty. we're asking ceos and business owners to step up and help our heros. if you're interested in more information, e-mail us and we will connect you with the

chamber of commerce. the address is hiringourheros@cnbc.com. tomorrow tom donahue will be our special guest. >> still to come this morning on "squawk box," florida senator marco rubio and texas governor rick perry will join us to talk politic, the economy and investing in america. ♪ why do you whisper, green grass? ♪ ♪ why tell the trees what ain't so? ♪ [ all ] shh! ♪ whispering grass ♪ the trees don't have to know ♪ no, no [ all ] shh! ♪ why tell them all your secrets ♪ ♪ who kissed there long ago? [ all ] shh! [ male announcer ] dow solutions use vibration reduction technology

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coming up, his name is frequently mentioned as a possible vice presidential candidate of mitt romney's ticket. florida senator marco rubio will join us next to talk politics and investing in america. then the lone star economy. we'll talk to texas governor rick perry in just a few minutes. "squawk" is coming back right after this. [ barking ] appears buster's been busy. yeah, scott. i was just about to use... that's a bunch of ground-up paper, lad! scotts ez seed absorbs and holds water better. it's guaranteed to grow grass anywhere, even if you miss a day of watering. [ scott ] seed your lawn. seed it!

welcome back to "squawk box." the property is tackling health care reform this week. many republicans fear the future of medicare is in jeopardy. joining us, florida senator marco rubio. it's great to have you. our guest host, as you know, florida governor rick scott. have you met -- >> good morning, senator. you're doing a great job. >> thank you. likewise. >> take care of the attorney general. >> she'll be here today. sounds like you found a new side gig there. >> this is fun. >> you'd be good here, too, senator. if you leave florida you're probably if d.c. or something.

come up here sometime. before we talk any vp stuff, what do you make of -- you probably followed it closely yesterday. what did you make of the first day out of three for these -- what do you call them, arguments i guess? >> oral arguments. >> do you think the supreme court is the right place to deal with this or should it just be repealed repealed? >> trying to read the spoupreme court is the job and here. i think the argument is they shouldn't be dealing with. it sounds like they're going to move on to the crux at the heart of the argument and whether it is unconstitutional and whether requiring states to expand their medicaid programs is unconstitutional. that's going to be at the heart

of the argument here over the next couple of days and it will be very interesting to watch. >> we're trying to handicap it and nobody knows obviously. i get the feeling that maybe the supreme court would not like to be put in a position like 2000 again on such an issue like this and would rather let us decide it in an election and then repeal it. do you think they might actually rule that the individual mandate is unconstitutional? >> i do. i think there's at least three, maybe even four justices that will go in that direction. we don't know what's going to happen on the legal front. it's difficult to predict how the supreme court will rule on any issue. as i here anecdotally and through research is there are small businesses afraid to hire and expand because they are not certain what the cost impact will be of expanding and what the health care law will mean for them down the road.

>> right. across florida small businesses are scared to death to hire because they know it's going to cost too much. they're worried just about the small penalty now. they're not thinking about, gosh, how can the government buy health care cheaper? how can the government tell us what we should buy? that was never the intention when the constitution -- when we set thup this country, that the federal government would tell us what we should buy. whether we should buy broccoli, whether we should by anything. >> senator, the holy grail for a hundred years, think of senator ted kennedy, that was covering the uninsured. that was the whole idea behind this very con ttentious period getting this done. would it have been better to try to really fix medicare? that's going to be just as difficult to get something done as it was probably to get obamacare through. >> i think we have to do both.

unfortunately we're going to have to do them both at the same time. no one is arguing we don't have a health insurance problem in america. . we absolutely do. i'm not just a repeal person. i'm repeal and replace. i point to the way members of congress get insurance. when you join the congress, they give you a book. it has like 15 companies you get to pick from. how come members of congress get to pick from 15 different companies but if you go work in the private sector you only have the choice of one company? there's a lot of reasons why. the consumer doesn't control their own health care dollars. as an individual if i pay for my own health insurance i don't get the same tax benefit my employer gets, i'm not allowed to buy insurance across state lines, small businesses are not allowed to pool together their employees. these are the reforms i think we should have pursued, instead of this approach which has, quite frankly, has a stifling effect on job creation and the economy. it's scared people from growing

their business are going into business. >> senator, if the supreme court does not do anything to change obamacare and if the senate is back in this position, wa would have to happen on this next election day in order for the senate to be even to take any cha chance at this. >> you have to change majorities. >> how does that happen? >> well you have to have elections. i'm not the best prognosticator of how it going to work out. our committee folks are confident we have multiple opportunities in multiple states where we have a chance to win a majority. if the president is going to veto it, we're not going to have veto-proof majorities in the senate and house to repeal this

law and replace it with something better. i've said to republican over and over again since my campaign, we cannot be just about repeal, we've got to be about repeal but we also have to be about replace. what are we going to replace it with? we cannot ignore there is a health insurance crisis in america that does need to be confronted and solved. >> what would actually save medicare? you doesnn't want to keep exteng the time when it goes bankrupt or whatever. you want to have something there for our seniors and a safety net for when they need it. how can you do something that would be palatable -- i guess you'd have to grandfather -- that's a weird word to use. you have to grandfather everyone who's over 55. >> i have three principles. it can't impact anybody who is in the system now or about to enter it. i think the magic age has been 5

55 years or older. if you've worked your entire life and paid into the system, it's not fair to change it on you. anyone 55 or ordinary, there will be no changes and there shouldn't be. the people who will have to have changes will be people like me, people who have decades to work. you look at the widen-ryan approach that allows future people like me to stay on medicare or take a payment to buy our own medicare. if there's a better idea, now is the time to offer it. what's not an option is doing nothing. anyone in favor of leaving medicare as it is right now is in favor of bankrupting it. >> you've seen a rolls-royce logo. is it true there's like some campaign stuff already out there with rr on it? has there been any spoken or unspoken approaches from the romney campaign for you to be romney rubio? >> i didn't understand what you

meant. >> can you tell us anything at all except i like my current job and i'm not planning on anything else? >> that's exactly what i was going to tell you -- >> you're kidding? i've never heard that one. >> listen, i appreciate it. i didn't get what you were talking about with the rr. >> rr, rolls-royce, romney-rubio. >> i'm not going to be the vice president. >> everyone talks about it. >> he says it ain't me, it rubio. >> i think rob portman would be a great vice president. >> what was that? so you're saying -- if asked you would serve, though, right? >> no, no, i think rob portman would be a great vice president. >> if you use that line, i would certainly consider it, have you said that? >> no. i think we all over the last week have seen what the most powerful job in america is and that's commissioner of the national football league. that's something i'm angling towards one day. >> andrew, can you try --

>> i'd try and say something but we're not going to get anywhere. >> if asked to serve as guest host would you serve? >> that's something i'd absolutely do. >> then you sit through two hours of questions -- >> then i get to ask the questions. >> absolutely. >> thank you. >> coming up, from health care and politics to investing in the lone star state, we're going to talk to texas governor rick perry, if i can remember, next. an investment opportunity you didn't see before. fidelity's next generation ipad app lets you see what's trending around the world, as well as what over a million fidelity customers are trading throughout the day. and advanced charting lets you customize your views and set up your own comparisons. our ipad app can help refine your strategy or even find a new one. i'm velia carboni, and i helped create fidelity's next generation ipad app. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades and explore your next investing idea.

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the job showdown between florida and texas continues as both governors try to incentivize businesses to set up shop in their own states. joining us right now on how they are investing in america is former gop presidential candidate governor rick perry of texas. our guest host today governor rick scott of florida. governor perry, thank you for joining us this morning. >> it's my honor to be with you. good morning, rick. >> good morning. don't try to get any companies i'm after, all right? >> it's perfect to have both of you to talk about what you're doing to try to capture business and create a good business environment. governor perry, we've been talking about this with governor scott. why don't you tell us about what's happening in texas right now and why you think texas is a great place for people to invest. >> let me say it's having governors like rick scott who are competing against you or

against your state that make you get up every morning and put your game face on and come with your best game. and it's that type of competition the tenth amendment allow us to -- or it should, let me put it that way with this federal government it makes it a little more difficult. our state has been one that for the last decade taxes, regulation, legal system and accountable public schools, that's kind of the simple playbook. have as low a tack structure as you can, a regulatory climate that's fair and predictable and a legal system that doesn't allow for oversuing and then government tries to get out of the way the best can you make it and let the private sector do what it does best. over the last year i believe 332,000 net total jobs i should say created in the state of texas. nobody else got close. i tell people without the state of texas creating the jobs that it's been creating, the president's job creation totals

would look pretty pathetic. the bottom line is it's not the president creating jobs, it the states creating jobs. >> governor scott, that sounds like a little bit of trash talk. >> i've let governor perry now noe he's sin too be number two. texas has been number one in job creation. we went from six to three. i'm hoping this year we can beat texas. i'm competing -- almost every big company i'm competing with, they're thinking about texas. one, they work hard. it taxes, regulation and attitude. they go after them and so do i. >> have you done tort reform like texas has? >> absolutely. we have lose or pay. we have this year hi a big bill on auto accident fraud reform and the trial lawyers were absolutely on the other side of that because -- >> you're kidding? >> because there's a lot of

abuse. >> how about a problem is that? >> $1.4 billion a year. in miami until this bill passed, a family making $40,000, they were paying $1,800 for a small amount of personal protection insurance. it's $1.4 billion of absolute fraud. >> rick brings up a really good point about reforming of the legal system. back in 2003 we had a medical malpractice reform bill, tort reform if you will. i think five years later there were 20,000 more physicians practicing medicine in the state of texas than there had been in 2003. and with this beg debate going on about obamacare at the supreme court right now, obviously there's constitutional issues of which florida and texas are both suing to find

that unconstitutional, but one of the other issues that has a huge impact on medical cost is tort reform and allowing the states or i should say allowing the states, again, i'm not for federal tort reform but i'm for state passing reforms to protect doctors and hospitals and nursing homes from frivolous lawsuits. it's made a huge difference in the state of texas and one of the reasons we've been able to drive down insurance costs in my home state. >> governor perry, what's your game plan if the supreme court does not do anything to overturn the health care bill? >> obviously we're in the process right now as we have been for the last year of analyzing what our options are going to be. prior to finding out that this administration misrepresented the cost of this bill, it was going to be a $27 billion price tag over the next ten years for the state of texas. now we find out it's not $900

billion, it costs $1.76 trillion worth of costs. so those numbers are going to escalate. the cost of this bill to the states is going to be absolutely stunning, which was the plan all along is to force insurance companies out of the business of covering people, force the states to raise taxes to just unheard of levels and then we finally get the federal government being that single payor process. >> mississippi is one of the state that is opposed to this new law but they are going ahead with some of the pools that have been set up. they've found a way to go ahead and start implementing some of that. would texas do the same? >> i don't know. on the exchanges, we decided not to go forward on that. fra frankly, we don't believe this program is constitutional, we don't believe it's right and we know it's going to basically bankrupt the states. california will be bankrupt if

obamacare goes into place because of certain parts of that bill that require you to maintain your level of involvement. it is just stunning the cost to the states if obamacare does become the law of the land. >> governor? >> well, i think governor perry would say the same thing, you can't afford it. already medicaid is growing faster -- our state's coming back well, but medicaid's growing faster than our general revenue is growing. with this expansion, you just can't afford it. states are going to have to say can we even afford to be in the medicaid program? would we be better off to just come up with our own program and have no money from the federal government? i think all the states would like to have just a block grant. texas would like a block grant. give us the money, we'll take care of our citizens. if i don't do the right thing or governor perry doesn't, we won't be re-elected. >> that's not how this administration functions, though. you think about all the programs

they tried to push down upon the state, whether it this women's health program right here in the state of texas. they basically say we don't like the way you are overseeing that program, we are going to force you to allow planned parenthood to give these services and the state of texas passed a law back in 2011 that said planned parenthood and/or other affiliates because they're abortion providers are not going to be involved in our medicare program. that is the state's right to decide that. but this administration says, no, here are strings attached, they tried it one employment insurance and school funding and now with health care. they want to run our states and we say no. >> governor perry, let me ask you quickly about the job situation. yesterday we heard from ben bernanke who said we have seen improvement in the jobs market but he doesn't buy that this is anything more than a temporary turn in jobs. he's very worried about some of the long-term structural problems. you've soeen a lot of job growt in texas. is it for real or not?

>> well, it is in the state of texas. i don't know what bernanke is looking at but i've had that problem with him for a long time, from the trying to figure out what bernanke's doing at the fed. >> i remember what -- comes down to texas. think twice about that. remember? >> i think they're so out of touch with reality. printing money is not the answer. we know that. it's having a regulatory climate that's fair and predictable. that's how you give confidence to the private sector. this is not rocket science and bernanke and taking the instructions from this administration obviously it's not working and long term we have to get back to what we know works. looking at texas and the record on job creation, for last seven years, it's worked and worked very well in the state of texas. you want a blueprint for how this country needs to focus, look to florida and texas. >> that's the first thing fisher said, that great fed guy down

there, too. first thing he said, governor. it's the tax environment, the tort reform, the lower regulations. first thing he wanted to talk about. wanted to talk about that first. >> richard fisher is not a hard core right wing republican either. >> a democrat. >> understands how the economy works. >> texas democrat. that's different. all right. governor, thank you very much. look forward to seeing you here. where governor scott's sitting some day, also. >> good to do it. coming up, "investing in america" theme. new york stock exchange for the american stock picks from kra mf america. [ male announcer ] you are a business pro.

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welcome back. let's get down to the new york stock exchange where everybody is actually in one place today. joining us now. hi, guys. >> good morning. >> mr. kramer, you have american stocks to look at? >> barclay's said it. we have more positive research of firms. bank of america. people have come back and

bringing things to be made in america and i think they're looking at -- i'm looking at new corps. they're looking at honeywell doing things well. cooper. just different environment. we're cheap. we're the right place to make it. >> with that, we'll look at leonard today and the outlying. or the bad news of kb last week. >> you don't say kra-merica? >> modesty now? >> i'm thrilled to do it and i thank you. >> investing. >> thank you for saying that. that's a "mad money" term. i think i need to get the paperback edition of your book. >> thank you. that was good one, jim. >> very nice. we'll see you in a few minutes. >> all right. when we come back, we have final thoughts from the guest host today, florida governor scott.

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to get a free quote, call... visit a local office, or go to libertymutual.com today. liberty mutual insurance. responsibility. what's your policy? welcome back. some parting shots of the guest host rick scott, the governor of florida has been with us for two hours. you have a jobs announcement.

>> we are winning. >> you are winning? talking about charlie sheen? >> winning. good miami company doing well today. you saw the numbers. a new jersey company insourcing 400 jobs to gainesville, florida. i.t. outsourcing company insourcing to florida. >> are we losing jobs in new jersey? >> i think they're expanding. >> okay. >> everyone's expanding in florida. time warner. >> why do this in new jersey? >> really started because somebody at the university contacted them about why they should -- we have -- >> university of florida? >> uh-huh. university of florida. we had the right engineers. we have the right employees. the space coast. >> guy to florida for the weather. >> yeah. you come for the beaches and stay for the business. that's the slogan. >> universal theme park. >> that's pretty nice. >> orlando. >> i told you your daughters to go to harry potter