welcome back it "power lunch." i'm bertha coombs. rough difor 3-d systems. and stratasys limited. there is a third company offering shares for 14 to $15 a share. not sure when it will happen but take a look. investors worried there are too many in the mark pept back to you. >> absolutely. thank you are very much. let's look at the market. we paired our losses. down about 20 point. right now the dow is down only four point on the trading session. s&p is almost unchangeed. down more than 1 3/4 point on the day. the nasdaq is still positive.

up almost 6 points on the trading session. ty, transportation session is down about 4 points on the session and a number of traders are watching that closely. they would like to see a positive close. >> they certainly would. i think one of the interesting things is nassim taleb saying he was in stocks. but he was it stocks because he hated bonds. specifically government bonds so much right now. that will do it for this hour of "power." sue, see you when you get back home. >> you got it. "street signs" starts now. have a great afternoon. >> somebody called judge rhineholt. today we will party like it is 1989. since the year the mullet was in style, new money is rolling in. but is all this new interest one big reason to be nervous? gop seems to only talk about spending cuts while democrats seem to only talk about higher taxes. no one is talking about growth.

nobody but us, that is. our special series "grow up" begins today. plus, the one stock that nobody seems to understand, but that keeps going up. we have dug out five stocks that have just killed it since the last market peak. the names you probably never heard of until today, that is, mandy. >> that is, indeed. hello, everybody. so many awesome stats it choose from. let me try. today, the magic number is 8. s&p 500 is breaking eight sessions of begins. that the longest in eight years and jumped nearly 8% over the last four weeks. through friday of the 147 s&p companies that reported earnings, 68% had descent che expectations. and this is what you cannot be. the best of the stock market since the mullet of '89. >> that is my college freshman year picture which i tweeted out this morning in honor of 1989. listen, if someone is going to

humiliate you, humiliate yourself first. look at that, and yes, a pledge pin on my lapel. wow, that stinks. >> unbeatable. let's get to bob. let's get to rick. never seen anything quite as scary as that. but we have seen record inflows -- >> i have. >> i'm sure you have. you have the hair, man. you have the hair. >> you add sweet stache, didn't you, bob? >> i'm a little older than you. my hair was longer. but i like the flip. that's cool there. >> that was natural. el natural, my friend. spectacular. >> and i like the way the hair flows right over the forehead. very nice there. >> i wanted to ask you, because we are seeing record equity inflowes this month, right? i guess everybody is trying to work out. is it seeing near term top or more reason to be optimistic stocks? >> good heavens. we have three weeks of inflows

into stock mutual funds. i think there is something like $14 billion and stock mutual funds the last three weeks. that's probably the best inflee fl in/* funds since 2008. so just compare it. 14 billion goes in in three weeks and in the last four years, $400 billion has come out. i think it is early to call it -- by the way, we had this happen before, mandy. remember in 2011, we started with nice inflows. just like we saw now, first four months, something like 50, $55 billion that came in. you know what happened at the end of the year? we ended up with a hundred billion in outflows. it is early to call it a top. i think an encouraging trend and at'sould be willing to say about it right now. >> we will take encouraging, won't we? thank you, bob. >> rick santelli, the yield is creeping higher and higher, doesn't it on the ten-year? we have big events culminating in the mother of all data,

payroll. so i guess, no big bets either way? >> yes. you know, and we have the fed meeting. we have european employment. all of this will be important. but follow the money. always a simple rule. you always end up with the right answer this morning. charles bittermann. and if we have the bar chart, the month of january, 55 billion record amount of inflows in etfs and mfs on the equity side. that's you will you a need to know except one other thing. the last time that we were close to this, the record we usurp is february of 2000. many of these big months you see on that bar graph were followed by reversals and equities. is it happening this time? it is different it time. the fed, ecb, so much liquidity out there. but all we can get is three db minute test of 2%. it is the explosion on equities and maybe a little erosion on fixed income but money is still

flowing in. >> as they say, it is always different this time. rick, good to have you back, by the way. rick and bob, thank you. >> dow and s&p all time closing highs on october 9, 2007. we may hit new benchmarks but it is different today than just six years ago. kayla tousche tellinging us how different. >> probably better for the projectry on the market right now. the market is still cheap relative to earnings. dow is 17 times earnings in '07. 13 times earnings right now and earnings growth for its part is expected to increase going forward. everyone is talking about it today. while it does matter that we have record flows into equity mutual funds and etfs for the month of january, probably more important to look the at fact that in the last year we had 200 billion in out flows from stocks. three state weeks of inflows. that is showing that sentiment

toward stocks is improving. third, market projectry as i show in '07 is much different. ten-year, yielding near 5%. gold was 743 bucks an ounce. coming off a five-year stock rally then. here is where we are now. multiyear upswing which is what people are saying. 1.95% on ten-year. gold more than doubled where it was before. >> the number that sticks out to me the most, kayla, is the unemployment figure. 3% of the working population are millions of people add be productivity to the economy, spending their paychecks. amazing we are back to this level. >> and it is interesting to think about in september 2007, that is when hiring started to slow in that month. that was basically when we were hitting the highs on october 9 is when the september data came

out. that month we only added 110,000 jobs that started to taper from there. that's why people are so concerned that was a top. on squawk box this morning, seeing 2800 for the s&p and 18 to 20,000 for the dow within four years. everyone thinks this is the beginning of a long-term upswing because of those fundamentals. >> some of the leaders back then are some laggers. there is a completely different story between what they were leading back then and now. >> at the time in '07, home depot was in the process after multibillion dollar deal to spin offity supply unit. that hit a snag with the credit crisis. that stock got hammered, the tale of two trajectories. now home depot is one of the winners. caterpillar up 34% in ten months leading up to that rally. it is actually down 10%. >> well talk more about caterpillar in a second. >> i don't think anyone could have predicted from one month

later how low the lows were. >> moving out from under the mattress and into the market, does it mean we are on top? cnbc contributors, i've got in my hand, a mar val ef technology. i will bring up a 15-year chart of the s&p 500 because i want it highlight one number. a number from 2000 and a number from 2007 and that number is 1500. we hit it twice. we failed miserableably both times. and my friends, dan, as you me, we are there again. will it be a triple top collapse after we hit this number? >> i don't think so. and let's not forget one of the tenant in the industry and the past performance is not

predictive of future returns. i don't know because we failed in 2008 or close to that in 2000, that this is somehow indicative of a market top we can't get through. each market cycle is different and this cycle is different and there is further upside. >> what in particular is different, dan? why do we have the potential to move higher? >> for starters, most predictive of asset returns are valuations. and to the extent that we believe forward equity returns, or expected earnings, then the mark set not particularly unattractive here. it is not screamingly attractive but not unattractive here and more than anything that's going to help determine future performance. >> jeannie, you think we have more room to go, and then what? >> so i do think we have more room to go. i think you know, technicals aren't screaming over sold yet. i do think that actually, market correlations sector correlations

and those are starting it break down. that very positive. for equities and that tends to be a trend that last for a very long time. but you know, i think that the challenge here is that if you think that -- i agree with what was said earlier with regard to the fact that a lot of money came off -- was out of equities for so long. so the fact that we've had big inflows really doesn't mean that we've actually seen the cash come off the side lines. we've had very little cash net come off the side lines. there's a lot more that could be deployed to equity. that could be positive. >> gina, i hear you. but there are two ways to look at inflows. regardless to outflows, right? one, people are realizing that stocks can keep going higher and they put money out from literal lit bank. because bond funds get money too. so the bond money comes from some place other than the bond market and this will drive the market higher for weeks and months to come. or we can take the view and say mom and pop tend it time it wrong. if they are getting in wrong now, that may be a top.

>> it wasn't just mom and pop. actually a lot of the market was underweight equity last year because they were overestimating risks, us included. i underestimating -- or rather overestimating the risks, i think now everybody is underestimating the risks. >> can i jump in for a quick second here? this is a debate i had this morning with one of the traders at btig. let's be clear here. as brian noted, x amount of dollars have come out of equity fund over the last couple of years this is something we debated on this show for some time now. i don't understand why money coming back into the market now somehow inherently means that equity prices must go higher and lower. there is very little correlation we have seen the last couple of years. i don't know why we are ascri ascribing correlation to something predicted in the past.

>> how come the market has gone straight up -- >> gina last word. >> good question. >> you want to know what will cause the market to go anywhere, it's called earnings. if you sell stuff, you will make money. if you can't, you will lose money. that the challenge here. that the question is this recovery strong enough to get sales up? sales were weak last year. >> and a lot of expectations but they are beating very low expectations. thank you to all of you. thank you for joining us on screens. in the meantime, caterpillar, as we mentioned a moment ago, came out with result earlier on. kind of mixed but the stock is trading higher. is it all about their inventory reduction? let's bring in senior research analyst at barclays. i will hazard a guess here that one of the reasons it is higher is because things are getting better. starting 2013 in better shape and global economy is improving. >> i think that's right. i think they mention that orders were starting to pick up toward

the end of the year. both in their construction and mining business. but i also think, as you said before, expectations are very low for a lot of names in my group, particularly caterpillar. so then being able to reduce an inventory while meeting low expectations and talking about a little bit of improvement toward the end of the quarter are all positives. >> andy, why should anybody buy caterpillar? >> well, first of all, again as you mentioned, the bell weather in my space. i think they have great barriers for their businesses. and i think we are starting to see a pick-up in emerging market. we have all seen better data out of china. we do predict a better 2013 than '12. plus i think cat has a great construction rebound. we expect them to continue to improve. i think all those things were weaker in 2012 and will be strongener 2013. >> i guess more to my point, andy, is sell your space rather than caterpillar. as people get back into the

market, they may look for master growth, sort of risk on type trades. people may view caterpillar as a slow growth name. sell the space. >> okay, so the space. i think that the way to sell the space is very simple. 2013 is sort of already in expectations as being a slow growth flattest revenue environment. but as we go into 2014, you can see strong housing starts. can you see an improving emerging market business for all of my companies. and with that, you get margin leverage. so first of all, my companies have been doing pretty well with margins. you put increasing sales growth from just the better business environment with already good margins and you get superior growth. and it is a cyclical space and i think people want cyclical stocks. >> and it has underperformed down about 13%. thank you, andy. >> thank you.

>> couple of ones for you. "grow up" takes off with the one big thing that can power the economy. plus the one stock nobody seems to understand. but that keeps going higher. >> but first, ibored. the one thing that apple is not doing and maybe needs to do, and now. ♪ let's go. ♪

♪ ♪ [ male announcer ] introducing the all-new cadillac xts... another big night on the town, eh? ...and the return of life lived large. ♪

yeah, take a look at apple. really been a tough run. especially after earnings on wednesday. wall street worrying the age of the iphone may be coming to an end. now the stock trading nearly flat over the year. even the hottest fads eventually fade out, right? bling becomes blah. can the same thing happen to a stock? a stock like apple. managing directly jeffreys and john abel, reuters media file column nest. peter, do you believe in apple fatigue? >> no, we don't. we think that the real issue here is that apple is going through an earnings transition and we have the maturing of the market and with new models the stock will become more active and could see a lost activity, in fact. >> does that shoot them in the foot, john? the fact that they come out with new product, which in many cases are incremental as opposed to ground breaking.

we have just come out with iphone 5 an now we are talking about iphone 6 and people are holding off. >> we have had about a year of consolidation here with product, iphone 5, ipad mini, which is catch-up. i don't know if smart investors look at that and say, i'm bored. i thought the issue last year was, cashing in on a terrific run-up on the stock. i really don't know. margins may be under pressure because they are can balancizing themselves and tim cook says that fine. because if someone has to do it, we will do it. and berkshire hathaway is up 10. take that warren buffett. >> yeah, and i don't mean to beat the drum here but surely for this to keep going higher, we need more ground breaking than an iphone 6. >> i agree. i think we need to see an itv.

we need a new way it interabt with our devices. and this can happen right now. we argue that's what we need to see and that what we believe will come thissier to reignite interest in the stock. >> you know, it is easier to have the stock in the 1990s was dell. right? the personal compute wears hot. dude, you're getting a dell. is there a risk that apple is the new dell? >> no. i think it is a very different situation here. dell add model that was really predicated on driving the cost out of industry and being the lowest cost producer. innovation wasn't really present. if you look at apple, they are innovative five times. first apple 2, mac, iphone, ipod and ipad. and if we get an i-tv, that is six times. so really, unprecedented in history. i think investors, frankly, are

resetting expectations. >> do you think apple has, in terms of the products, coolness, newness, or is that given to samsung, which apparently people want more of? >> no, i think with people, it is on the street and it is still selling well. oversees markets will do terrific. if anything, i think the comparison, worst case comparison is apple's the new microsoft, which is settling into a mature phase where they will be printing money but not thought of as cool as they were. nothing lasts forever. but there has to be things that apple has up its sleeve. it just does. >> with all due respect to my abell cohost, get it here -- john, settle this once and for all. mandy, i'm sorry, you like to talk about samsung, people want bigger screens and samsung is selling more than apple. so you assume samsung is bet are

or more desirable. well, samsung is selling than apple because it is cheaper. more accessible to everybody. >> and in markets like asia. i will give you that. >> yeah. >> okay, show off. >> i think samsung is doing particularly well. how much of that is built on the success created and invented by the iphone, that another debate. >> peter, sorry, time is running out. peter, does apple have a true competitor? >> yes. they their number one and truest competitor is google. android. how the two match-up. the functionality and devices in the eco system. that the game. do you believe apple can go ahead it head against google. >> and aronically, fact oid, apple lost in terms of value, is the total value of google. >> which is 7,000 lycosis.

>> it is. and a million apples. herb on the street, is back. herb greenburg is here. and he is going to talk about the big move in herbalife. >> that would be herbalife, i think to you. plus, grow up america. all week long, this is a very special thing, we are going to take a look at ways to grow our economy. we will kick off with a really controversial method to get us growing. and you have to stick around to find out what it is. [ coughs ] [ angry gibberish ] [ justin ] mulligan sir. mulligan. take a mulligan. i took something for my sinuses, but i still have this cough. [ male announcer ] truth is, a lot of sinus products don't treat cough. they don't? [ male announcer ] nope, but alka seltzer plus severe sinus does it treats your worst sinus symptoms, plus that annoying cough. [ angry gibberish ] [ fake coughs ] sorry that was my fault sir.

[ male announcer ] alka seltzer plus severe sinus. [ breathes deeply ] ♪ oh, what a relief it is! [ male announcer ] try alka seltzer plus severe sinus day and night for complete relief from your worst sinus symptoms. ♪ [ male announcer ] every car we build must make adrenaline pump and pulses quicken. ♪ to help you not just to stay alive... but feel alive. the new c class is no exception. it's a mercedes-benz through and through. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. for exceptional offers (announcer) at scottrade, our cexactly how they want.t with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me.

i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine. executor of efficiency. you can spot an amateur from a mile away... while going shoeless and metal-free in seconds. and you...rent from national. because only national lets you choose any car in the aisle...and go. you can even take a full-size or above, and still pay the mid-size price. now this...will work. [ male announcer ] just like you, business pro. just like you. go national. go like a pro.

oil also hitting a big benchmark today. on pace for the best traek of four years. >> we are above $96 a barrel right now for the wti contract. when you look at weekly gains we've seen in terms of weekly winning streaks this is on pace to have the longest run since august of 2004. so it has really been a strong showing for oil over the last month and a half or so. what is could ntributing to the gains is more bullish sentiment in the market in terms of long positions and futures and options we see, the longest run six months straight. we have seen it since 2006.

all of this very bullish for price answers what has made traders bullish is we have seen improved economic data. goods report coming out today and other economic data to support the fact that economy is improving and add it that the geo-political. they have not gone away. we are continuing to watch what happened in egypt, syria and north korea. so keep your eye on perhaps a hundred dollars a barrel. that's what some traders are saying. back to you. >> sharon, thank you very much. well, it is a big day here on "street signs," because after a long and unexplained absence, herb on the street is officially back and you begin with a big one, my friend. >> that's right. we are talking about herbalife and the entire multilevel marketing industry. they are all under pressure after the federal trade commission and several states alleged that a private kentucky multilevel marketer is one of the most -- has operated one of

the most elaborate pyramid schemes? north america. like many multilevel marketers, they sell a number of services. the business model appears to be more about paying money on recruiting rather than selling. rather than selling product. with most of its distributors losing money. when asked at a press conference about herbalife, steve baker who runs the midwest office said simply he couldn't discuss herbalife. but what he did say without mentioning any company in particular, was something along the lines that no matter how long a company has been in business or how big it is, way more people appear to be losing money than making money. now some of my observations after looking at fortune high-tech among its big rewards are bmws. much like another multilevel market be we have mentioned here

called visalis. fortune's high-tech website was filled with smiling faces and success stories and like many multilevel marketers, it has been highly charitable. and its board of advisors includes a former kentucky attorney general. they are greeted with this message today. we are confident our side of the story will be heard. we are defending ourselves vigorously. we expect to be vendcated. guys, what i think is important here is the fdc is moving on this one company. now does it open up sort of clear the desk so to speak so it can go after -- >> you think? >> i think that i believe that-knowing nothing, i think if the ftc knows nothing, and all of the scrutiny, i expect to see

outright investigation, i think they will announce an investigation. i think the industry needs to be scrutinized. but i think you all know i think that. >> it absolutely does. welcome back. resurrected bigger or better than ever. >> when you spend ten months looking at one thing, something toss what give. >> you know something about it. >> what is tomorrow. >> harley-davidson. >> and the day after that. and day after that. >> tomorrow is another day. this is live tv. next, photo company and pineapple of street talk. plus, the most misunderstood stock. >> yeah. and grab a pen and paper. whatever those items are. we have ten stock gems -- actually nine -- best under the radar stocks since the 2007 market high. that's coming up. cnbc real tame exchange market snapshot is sponsored by interactive brokers.

[ male announcer ] this is joe woods' first day of work. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. to compete on the global stage. what we need are people prepared for the careers of our new economy. by 2025 we could have 20 million jobs without enough college graduates to fill them. that's why at devry university, we're teaming up with companies like cisco to help make sure everyone is ready with the know-how we need

for a new tomorrow. [ male announcer ] make sure america's ready. make sure you're ready. at devry.edu/knowhow. ♪ ♪ [ male announcer ] some day, your life will flash before your eyes. make it worth watching. introducing the 2013 lexus ls. an entirely new pursuit.

that time of day we like to call street talk. we have done the digging and hard work. let's get trans ocean first up on the board with a nice gain there. >> yeah, a carl icahn alert. an smackdown hedge fund on cnbc. he urges the company to declare $4 share dividend. mandy, what else is he going to say? it is overvalued? it is undervalued. bp agreed to pay $1.4 billion in fines but it is well, well, well, offity high of a couple years ago. >> we have a lot of energy space stories today. and hess is coming out next. >> a new jersey based company, getting out of the terminal business and investors like the news. 20 storage terminals. get out of the refining business. that trees up a billion dollars in capital they will use for

other part of their oil and gas business. elliott international, which made news for nearly starting a war with argentina, true story, filing to buy more shares of hess valued at about $800 million. management frustrated. this was an $80 stock a year and half ago. >> falling on the other side of the trade. let's take a look. >> down 7% p goldman downgrading to sell. lower steel price. there is no sign of turn around. a electrical steel side of the business. >> down by 58%. this is a wow. going from ouch to wow. xerox. >> xerox is not a name we talk about a lot. >> yeah. >> really not. raising their rating to outperform market perform. they are citing growth in services business as well as improved margins. xerox folks, why we haven't talked about it. been a dog the last couple of years.

$17 stock in mid 2007. what that price? >> 18 bucks and 19 cents. >> that's about half of 17. >> every d.og has its day. >> and today is xerox. barons saying the stock could be doublity price in september. we are going way back. selling their packet through asian operations. through a company owned by 7-eleven. investors didn't care. now barons comes out and said, hey, remember the deal. stock is up 9%. but barons boost. there you go. >> barron's boost. >> what if we told you about a company that sales tripled in four years. stock went up even during the great recession. stock is up more than 600% in six years. but just two little things, folks. profit margins in low single

digits andity's trading at more than 3,000 times earnings. that stock exist answers it's amazon.com. jason helfstein from oppenheimer. >> you have to look at people who own the stock are clearly focused on revenuees. revenue potential and number of customers they are generating p. that's what they are focused on and over time what is this company's ability to generate a margin which in turn would generate some type of valuation that would support dcf. but clearly the focus point is on revenue growth. we track a number of factors such as number of customers. we think the idea of gross profit per customer. now you have the web services, which is a new leg of growth for the company. >> i'm wondering whether this is a very expensive bet, in your words, on the death of bricks and mortar.

rocky? you there? okay, jason? is this from the death of bricks and mortar. >> this is typically not the investor of best buy or circuit city or barnes & noble but from the consumer standpoint they are looking at where consumers shops. clearly going on-line. as far as the amount of money, you still are barely breaking 10% of retail sales. so if you think about the amount of time people spend on line -- >> and if rocky was here, jason, would he slather all over amazon's model and say what a great company he thought it was, and it is. >> he was going to be here. >> yes, he was. and it is a great company. but here is a thing to your point, jason. about $5 billion in annual revenue and about 2 billion

in -- that is miserable. no there is no margin. do they ever get pricing power? >> i don't think it is about pricing power. what we are seeing now with this sifting more to a marketplace. if you think about the original ebay, right? ebay was a business where they don't take inventory risks. they are a marketplace putting together buyers and sellers. amazon is a retailer using an on-line distribution channel. as they are increasing percent of mix toward a third party that makes them to be the back after platform company which has higher margins. think what i investors are looking at each quarter they give them an update, what percent of the business is coming from third party. that keeps going up. they continue to grow the new number of can customers by 24, 25% year over year each quarter. you are seeing gross profits improving then you layer on top the awf which i will say people who sit in my seat of the

consumerant net analyst. we don't have, i say, a terribly specific long-term view on aws but a business growing faster than the retail business at higher margins. >> got it. thank you so much for voining us today. >> sure. >> up next on "street signs," we are telling d.c. to grow up. stop dickering over taxes, whatever. the senate taking up our first idea as we speak. to the first of a week-long series this week. >> you will want to grab a pencil for this one. we are rattling off a list of stealth stock studs since the 2007 high. [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. if you believe in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors

who think like you do: face time and think time make a difference. join us. [ male announcer ] at edward jones, it's how we make sense of investing.

is is [ male announcer ] where do you turn for legal matters? at legalzoom, we've created a better place to handle your legal needs. maybe you have questions about incorporating a business you'd like to start. or questions about protecting your family with a will or living trust. and you'd like to find the right attorney to help guide you along, answer any questions and offer advice. with an "a" rating from the better business bureau legalzoom helps you get

personalized and affordable legal protection. in most states, a legal plan attorney is available with every personalized document to answer any questions. get started at legalzoom.com today. and now you're protected. . coming up on the closing bell. toyota over general motors. which will drive your stock up higher in toyota or gm? plus, are they finally starting to hibernate and is that a good thing for the market? and is marisa meyers turn around strategy working at yahoo? we will have the instant analysis of the latest earnings. but first, more "street signs."

and just like soldier boy, we will crank out numbers for you now. just lean to the left three times as we go through this. you know the big names of sorts, the last peak of 2007. apple, amazon, you know those names. but what about the names you don't know? here are the best performing mid cap stocks since the 2007 market high. polaris up 270%. oh, herb, green mountain up 400%. new market booming and single best mid cap over five years, regeneron pharmaceuticals up 885%. mandy, because the people just called in now, we will show them, i think, top four s&p 500 companies over that time. first callers. there you go. ross. perigo. they are soaring.

those names you do know. netflix. watch a mandy or rent a movie about a place you with like to go. those are the names ak look at those returns. >> incredible. a bit of controversy brewing in the art world. it is making front page news of the new york times. to you can't drink 20 ounce sodas before you get written up. seems like multimill kron dollar art deals come with little scrutiny. but here with the hard money, very okay and very instructive. as someone who used to be in the art world, i would like to see that. >> more than $64 billion traded in art last year. 8 billion alone of that in new york. hence regulators in new york tough to regulate that market. chandelier bidding and lack of prices and galleries.

but what real caught my eye and what i have been talking about and writing about for years is third party guarantee. we have a chart here telling you how it works. essentially sotheby's or christie's says we will sell it for $10 million. they find a financer or collector to pay that $10 million. but in exchange for that they get a percentage of the up side, 50, even 80% of the upside and they get to bid on it that. here you are, in the auction room, picasso on the easel. you could bid against someone who gets a percentage on the upside against the price. in addition that person has information about what the minimum or guarantee of that bid will be. people are saying this is an unfair advantage. i don't want to be a part of that. the auction house says it is

fair and there is a note in the catalog. this is pieces for the auction word but a lot of people are refusing to enter this market when there is a third party guarantee. because it is just not fair. >> yet there aren't a whole lot of other alternatives in the investment art world. >> that's it. thank you. >> if your interest is piqued, do not miss the report tonight. don't miss some of the most expensive reports in new york city. the "secret lives of the super rich mega-homes." here tonight. >> i'm sure those homes have some art in them. the natural segue. slathered with climps everywhere. all over the place. >> can't have too many. >> we will bring you to "grow up" economy and maybe the --

>> i didn't know there was a dark side. could this good news be a bad thing for housing? [ wind howls ] [ dog barks ] ♪ ♪ [ male announcer ] something powerful is coming. ♪ see it on february 3rd. ♪ there. i said it. they don't have pictures of my kids. they don't have my yoga mat.

and still, i feel at home. could it be the flat screen tv? the not so mini fridge? ♪ the different free dinner almost every weeknight? or maybe, it's all of the above. and all the rest. am i home? nope. but it almost feels that way. homewood suites by hilton. be at home.

all this week we're sending

a strong message to d.c. to grow up. not only act like responsible adults but bring ideas to actually grow the economy rather than just talk about either tax hikes over here, hello democrats. or only spending cuts over here, hello gop. this may be the perfect launching point because right now a bipartisan group of senators is putting forth a bill to tackle immigration reform which could be an economic growth story as well. let's bring in president of immigration works usa. tamar, 11 million new taxpayers overnight could be a gigantic jolt to the economy. >> they're not just taxpayers. they're workers. they're already working here and are paying some taxes. this will get them fully on the tax rolls. even more important than that for the future of the economy, this will give us the workers we need the the future. both high skilled workers like scientists and low skilled

workers that will help grow the economy. >> i would really like to know how you overcome zen phobia. the idea that immigrants come here and steal our jobs. i mean, i always felt the fact of the matter is they're often doing the jobs the locals don't ef want to do. but how do we get over that? >> obviously people are wary of this, but when -- people do -- for example, many americans now realize that they're not raising their kids to be farm workers. many americans realize that they're not raising their kids to be home health aides. home health aid is the fastest growing job in america right now. americans realize that's not what they're raising kids to be. the fact of the matter is, most americans are in the middle of the education spectrum. we've mostly graduated from high school, but we don't have the ph.d.s, we don't have enough ph.d.s and high-end scientists. and immigrants fill niches at the bottom and top that create

jobs for americans. >> that's what's amazing tamar. you look at what we do in america and i hate to say it because i love this country, but we're stupid. we bring people from all over to go to stanford or cornell or whatever and then they go home and start businesses there. >> that's stupid, yes. it's not that americans are lazy. >> foreign born individuals are more likely to start a company in america than native-born individuals. >> but it's not that there's anything wrong with american workers. the problem is we're just not educated enough yet. and every country in the world is competing for these high-end scientists. no country in the world has enough of them. so you're right. we do need to keep the ones we educate here. more americans have to go to engineering school and get science ph.d.s. that would be a good thing and that's happening. but right now we need americans -- we need the foreign workers on the low end and on the high end. >> real quick.

i mean, just going back to very basics here. is it even possible for low level workers to come here easily? don't we need to overhaul the legal process to let people with little or no skills to come here and do the jobs like picking apples in an orchard. >> right now there's a farm -- there's a temporary worker program for farm workers and for seasonal workers like at resorts. but there's no program if you want to work in a kitchen year round or if you want to work in a food processing plant or be a home health care aide. we need a program for people like that. that's the key piece missing now. we need a smoother path for high skilled workers but also need one for the low skilled americans. they create jobs for americans. if i can't open a restaurant because i can't high enough busboys but can hire foreign workers, i can open. then someone will build a store next and trickle up, trickle down. >> perfectly.

tamar jacoby, thank you. appreciate it. >> thank you. >> we want to hear from you as well, folks. tweet us your best ideas. grow the economy. d.c. so focussed on raising taxes or just cut spending. grow the economy. d.c., i think you're out of ideas is what it is. >> what it feels like. >> we're going to our smart viewers. >> tweet us. sure the market is hopped up but could the good news be a bad thing for housing? let's bring in diana olick. where's the bad lining? there's silver lining in this. >> confidence is coming back in the economy then confidence translates into growth. they just think that home prices are still going to fall or there's going to be another downturn. that's still good. but the problem is as the economy gets better as we move away from financial crisis and interest rates start to rise,

that's going to take away so much of the housing power. so much has been fueled by the low interest rates. so when the government takes those away you'll see raising prices. >> prohibit enough to squelch the housing recovery. >> there's been refinancing out there. and there have been serial refinancers. every time it goes down a bit more, people will go in again just to get that. but it's the type credit. first time home buyers are between 40% and 50% out there. right now they're running at 30%. we need them back in the market. we need to see people come out from underwater. those folks are stuck in places they can't sell and they can't buy. and we have to remember that so much of this market has been driven by investors on the low end.

banks are still holding on to a lot of distressed properties. when are they going to put them out there? if they see prices up then suddenly put them back out on the market, that pushes prices down again. we really have to watch this recove recovery. even robert shiller sads he's not sure we're in total recovery. >> i thought what happened to the hopium. thank you for joining us. and next we are going to foam party like it's 1996 and that is spoken from experience.

♪ [ male announcer ] don't just reject convention. drown it out. introducing the all-new 2013 lexus ls f sport. an entirely new pursuit. introducing the all-new 2013 lexus ls f sport. all stations come over to mission a no go call. go. this is for real this time. we are on step seven point two one two. we have entered our two minute hold. cabin venting has been inhibited. copy that. sys two, verify and lock.