. . hi, everyone. welcome to "on the money." i'm becky quick. riding the roller coaster of the stock market. why volatility is back. what the violent swings mean and what you do about them. tax day has come and govern. but is corporate america paying its fair share? fixing a broken system and how it could impact you. and are you a giver or a taker? the personality traits that could take you to the top of the business world. why who you are is as important as what you do. "on the money" starts right now.

>> announcer: this is america's number one financial news program "on the money." now, becky quick. here is a look at what's making news as we head into a new week "on the mon." if you have vertigo, the stock market wasn't the place for you. on tuesday the nasdaq had its biggest one-day turnaround since 2009, falling nearly 2% during the session finishing positive. the dow and s&p weren't quite as dra mat il, the markets rose all and fell on momentum stocks an by the end of the week earninging gsz started to matter. the markets were mixed on thursday of the holiday shortened week. a busy week for earnings. citi beasting expectations as did bank of america, goldman sachs and morgan stanley. yahoo! and intel came in ahead, ibm met and google missed. a strong retail sales number for march, rising by more than 1%,s the biggest gain since september of 2012 and ahead of expectation. retail sales is always an

important number becauseco consumers make up more than two-thirds of the u.s. economy. housing starts jumped nearly 3% in march, driven by single family home sales. improved weather helped push the number, but it was slightly weaker than what economists had forecast. janet yellin speaks, a volatile weeks for the market and it is earning season so what does it all mean for your money? jiening us, assistant editor and columnist at "financial times" and chief u.s. economist at morgan stanley. folks, thank you for being here. vincent, i want to talk to you about the markets. we are looking at hundreds of point sping swings during the dow, multiple percentage points for the nasdaq. is this good or bad? >> whenever market participants think the direction of policy will be changing, they bring it forward in time and expect it to be sharper than is really consistent with sustaining economic expansion.

>> so this is the moment in time we're we're in get used to it. >> get used to the volatility. >> you heard janet yellin speak this week, her first speech since becoming fed chair. she said interest rates would continue to be low for a long time. the market took that as good news. was there any real new news here? >> well, it was a speech really designed to reassure. and i would argue it was aimed at the american people as much as the investment community because she went out of her way to show that she really cares about unemployment. the key take-aways were, firstly, that she does not expect an imminent further typing of monetary policy. she mentioned they would carry on with the taper, but there was a strong sense that she's not that concerned about inflation. she wants to provide support to the economy. and the second key take-away was that she really is not in the camp of people who think the rise in employment, the fact that unemployment is coming down, is going to put any upward pressure on prices soon.

>> we can imagine that the fed is there for a long time, the market maybe this week started to lock at this like goldy locks, we can have our cake and eat it too. there is information that it's data -- >> janet yellin was painfully even ha evened. she wanted to convey the message lower for longer. she's had an easy entry to the job in the since that the payrolls data haven't been so strong to worry people nor so weak to worry us. >> so your point is she's still untested to this point. haven't seen any significant hardships to get through. >> in our economic forecast we think last quarter was tracking at 1% annual rate and we'll be closer to 3.5%s in the second quarter. when we start getting those monthly numbers consistent with 3.5% expansion in the economy and the headlines start with the 2 or 3 on nonfirm payrolls that

will be associated with testing of the fed. >> jillian, let's talk about earnings season. i've been pleasantly surprised, not everybody but a lot of the companies have been coming in with numbers that are better than expected. what do you think is happening here? >> well, it's very interesting indeed because as far as earnings are concerned you're basically looking at the same big question that you're looking at about the real economy, which is how much can you blame on the weather. certainly going into the earning season people were pretty cautious about what was going to happen. you had a lot of forecasts for a decline in earnings. and people pointing out that actually the fact you've had stocks trading near record highs was really out of whack with what was likely to happen inside the companies. in reality, we have had some disappointments. google, for example, has underlined the risks that continue to stock the tech sector where investors have gotten ahead of themselves. but the cool picture from the earnings season so far is that it's not quite as bad as people had feared. >> vincent, how would you grade the earnings season overall so far. >> not as bad as people had

feared. >> "b"? >> a solid "b." you've got to remember when you're talking about the s&p, you're not talking about just the u.s. economy but the world at large. and what we're seeing is consistent with a tepid cyclical expansion in the u.s. economy and the roast of the world hanging in it there. >> what's going on with the ten year note? i've been shocked to see it trading at 2.6% even at that level limit almost falling below this week. >> you're not the only one shocked. >> is this worries about our economy? is this worries about other economies and people are running here as a flight to safety. >> being the best house on a bad block has certain advantages. the u.s. treasury security ask the safe haven asset and the world is a risky place. >> jillian, one of the risks that's been hanging around is the situation in ukraine. while that's been out there for several weeks, things have definitely gotten more pointed. is there a risk that this spills over into the markets as well?

>> well, there actually is a risk. it's already spilling over into the markets. as vince points out, if you go back two, three years ago, eye merging markets were guard as the holy grable, the parts of the world where the growth was coming from. that has changed dramatically in the last year. partly because the signs of the fed is tighting policy has creating a pull-back for many emerging markets but also because things like ukraine have reminded everyone that emerging markets have political risk. people like to forget that until recently. certainly that poinl t point is coming back, which is one reason people are going to the safe haven of u.s. treasuries. >> vince, the u.s. stock market, do you think there's more potential for upside surprise or downside risk? >> earnings solid gross coming back and the fed is going to be accommodated for a very long time. >> that sounds good. at least maybe. >> constructive. >> wile take that. vincent, julian, thank you. we'll talk to you again soon.

up next, "on the money," big business, even bigger tax breaks. we'll look at how much corporate america is paying. and later, are you just too nice to succeed? the answer may surprise you. we're looking into the give and take of your personality and getting ahead on the job. right now, though, as we head to a break, take a look at how the stock market ended the week.

tax season has just ended but legislation to extend certain corporate tax breaks will be considered by congress in the coming weeks. with so many tax loopholes are corporations really paying their fair share? joining me with huz his study is yus. what did you find in this study? >> we found something interesting indeed on the

overall tax basis, the s&p 100 companies are paying their fair share. it was very interesting, however, that when it comes to how much they pay on an international basis it's on average 30% lower than what it is in the u.s. and technology companies in particular specialize in it that on average being at 8% lower than what they pay in the u.s. >> that's a big of a concern because when you start breaking things down and realizing that corporations pay more here, it does start worrying you about what happens down the road, if we drive corporations away, if we lose jobs because we're charging more here than in other jurisdictions. what do you do about that? >> that's exactly right. the other concern is that large corporations like apple and microsoft have the amount of resources that they have to figure out all the different tasks, schemes is just disproportionate to small businesses which is crucial for

growing our economy. and small businesses cannot afford to take advantage of all of these tax advantages or move operations or intellectual property overseas and do all of this complex schemes. so i think also the other thing that is important to know here is it puts small companies in this country at a disadvantage relative to large ones. >> what is it in terms of what corporations are paying on average versus what individuals are paying on average here in the united states? >> so that is interesting. we found actually that the s&p 100 companies when it comes to their federal tax rate is 14% higher than what it is for the top 3% of taxpayers, which actually surprised us. i would think that corporations would find more loopholes and so on. but when it comes to federal tax rate, they are actually paying more than the wealthiest taxpayers on an individual basis. >> that is interesting and good to know. owe disyus, thank you for joining us. >> thank you for having me.

>> if major companies are paying more than overseas, what changes should be addressed in the tax code? what should be paying more? should it be taxpayers, corporations? joining me with what they think should be done to the tax code is senator on budget and policies senior fellow jared burn steen and allen villar. allen and jared, thank you for being here. jared, you heard what owe disyuss had to say. what do you think needs to happen? >> i think where you ended is precisely the direction we need to go. you mentioned something very important, becky, which is job creation here in the united states which of course hasn't been exactly stellar. at the same time, we've seen soaring corporate profitability, particularly driven by the very multinationals he was talking about. so i think where i would intervene first would be in this area of international taxation where the tax code really does, as owe disyus' findings suggest, incentivize production overseas

to the competitive disadvantage of domestic firms here. that's a really rich area of tax reform. >> what are you suggesting, lowering corporate rates for people here so we're more competitive? >> sure. so let me be precise. what i would suggest is ending the deferral of foreign based earnings that is instead of allowing these firms to get away with keeping their earnings outside of the u.s. tax base, basically forever, there are a number of proposals afoot to end that deferral and put them on a more equal footing with companies here. if you want to lower the rate and broaden the base, i'm all for that. that would be a good idea as well in terms of taking the rate down. but i do think most importantly end the ability of multinational firms to get all kinds of tax breaks that don't benefit necessary tidomestic firms, deferral being the biggest one. >> i have to disagree with jared on the point of deferral. the point jared doesn't mention is the u.s. tax system only

taxes overseas earnings of u.s. chartered companies. and what jared is proposing is that we need to beef up the taxation of those u.s. chartered companies on their foreign earnings in the hope that they'll invest at home instead of abroad. but the problem is that investments can also be done through foreign charter companies. those would remain completely tax free as long as they're investing abroad. >> if you want to make it a much more fair system, particularly for small businesses who can't afford to have legions of accountants who are looking through things, isn't the solution to come up with a asim mrer, broader more realistic tax form that doesn't allow a lot of the loopholes to begin with, maybe lower the rates but make it more difficult to take the crazy loopholes? >> i for one totally agree with that. one of the ways to do that would be to just have a minimum tax on foreign earnings, boom. that's the end of it. at the same time right close the loopholes broaden the base. >> what do you think? >> again, the mix tax is just

going to apply to u.s. companies whether it's based on their charter or something else. the real solution i think is more far reaching. we have to stop trying to collect the tax at the corporate level and instead doing at the shareholder level. what you could do eric toter and i have written about this, tax manner shareholders of publicly traded companies on their dividends and capital gains at ordinary income rates. to make this work you would need to tax the capital it gains as they accrue. you would pay tax if your stock goes up in value even if you don't sole it. >> that's a hard pill to swallow. you're taxing paper gains. >> you're taxing unrealized gains. >> but those are real parts of your wealth. >> look, i totally -- >> until the stock market crashes like we saw in 2008. >> then you deduct your losses. >> that's assuming you have enough income to deduct losses off down the road. >> look, i think allen would agree that even though -- that's the kind of great idea that

minds like allen think of and i like it a lot. i think he would agree that that is so far out of the realm of possibility compared to some of the other ideas that have a little bit more currency right now, some of these loophole closures, broaden the base. and perhaps even a minimum tax on foreign earnings. the president has proposed that. i think there are some members of congress who might be open to that. it just seems like your idea as pristine as it is is kind of outside the realm of possibility. >> i have to say the devil is always in the details in all of these plans. any way you reach it you're going to be raising taxes for somebody, and that's always the sticking point. >> the alternative though if you don't do something like this is you're just tinkerring with a system that's undmentally flawed. >> gentlemen, you have great ideas. sorry we weren't able to solve this massive problem in the last six or seven minutes. but thank you very much for joining us. >> thank you. >> thank you. up next, we are on the money. do playground politics determine your career? who you are at work may be

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. looking for the secret to success? it may depend more on who you are than what you do. adam grant is a professor at the university of pennsylvania wharton school, also the author of "give and take." it's just out in paperback. looking at the science of personalities and getting ahead. adam, thank you for being here.

>> thanks for having me. >> you had a piece in last weekend's "new york times" that has a lot of people talking about how to raise a moral child. first of all, you're a real scientist and a researcher who came up with these things but you did a lot of it by watching your kids. >> i always wanted to be a psychologist who didn't screw up my kids. i've been trying to read the evidence and learn what works to teaching values. >> what's your idea on how to raise a moral child? >> one mistake that a lot of parents make is just praising good behavior. they think that when your child shares a toy or does something nice is reinforce the action and say that as was a good thing to do. but if you do that, you fail to teach notions of character. the evidence suggests that you need to say, not that was a nice thing to do but you're a nice person. then it becomes part of their identity. >> you such a wonderful boy to share, not that was nice to share. >> right. then the next time the opportunity presents itself, that starts to go, gosh, i guess i'm helpful, maybe i should do that. >> but it's the opposite when

you're criticizing they've done that's selfish? >> that's right. so when bad behavior occurs, criticism is supposed to focus on the action, not the person. >> i understand that. you also take it a step further. you say these ways that we're raising our children right now really has some serious impacts on their long-term success. >> it does. children who develop strong values associated with helping others end up experiencing extreme helpful outcomes. they become the worst or best performers. >> how do you make sure it's the best and into the tnot the wors? >> a lot of people who want to help others sacrifice themselves, drop everything to help people all the time, which is a recipe for disaster. >> that's where you come up with the idea you're a giver, a taker or a matcher. what are those and how do you figure out which you are. >> well, the takers are the people who always try to get as much as possible from others. they never want to give anything back. very good at hogging the interesting work and basically then getting all the credit at the end of the day. >> i know some of those. >> we've all encountered a few.

on the other end, givers enjoy helping others with no strings attached. >> it seems to me that the matcher is maybe somebody who is the best off. you're going to be a giver and a taker but you want some equality in terms of where that comes down. >> that's what most assume. matching is the most common style. i'll do something for you if you do something for me. but matching actually turns out to be too much of a play it safe mentality. matchers end up creating a krksal krks transactional impression. i didn't care about you, i was just helping to get your help. >> you want to have a balance but more than a matcher, someone doing good for the right reasons but also watching out for others? >> the data suggests that the most productive engineers, the best medical stew students and best salespeople are the ones who give freely without giving attached. >> do you have examples of ceos who are in these giving sort of positions? >> i think one of the best examples is the president of cinema and kat cole. she worked two jobs all through

high school to support her family and ended up dropping out of college because she was so bu busy helping out at her restaurant. >> at hooter's, right? she was picking up extra shifts. >> right. but when she was volunteering to help, she's doing a cook's job, doing the manager job. she's the only person doing the only job in the restaurant, which means she gets sent out of the country to open internationally. giverers actually learn more, develop more expertise and knowledge because she get to solve other people's problem. >> adam, fascinating. thank you for joining us today. >> thank you for having me. up next "on the money," a look at the news ahead. and looking for a real estate steele steal in the bankruptcy of detroit? the prices are low but the expectations aren't. we'll be right back. [ male announcer ] prilosec otc is the number one doctor recommended frequent heartburn medicine for 8 straight years.

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. for more on our show and on our guests go to otm.cnbc.com and follow us on twitter. here are the stories coming up that may move the markets and impact your money this week. more earnings, netflix, comcast, microsoft, facebook and apple and mcdonald's reporting on monday, the 118th boston marathon will be run. on tuesday, existing home sales for the month of march are out. also on tuesday vice president joe biden travels to ukraine to meet with government leaders there. on wednesday new home sales for the month of march. thursday an advanced report from

durable goods orders and on thursday 22-time olympic medalist michael phelps, 22 medals, he'll be competing in his first meet since retiring in 2012. finally, looking for a good fixer-upper in the motor city? get this. detroit is going to be aucti auctioning off some of the 16,000 abandoned houses that it the city has acquired in an attempt to boost declining neighborhoods. hoping bids will be just $1,000, but this is no speculative deal. owners are expected to rehab the homes and live on site within six months of closing. bidding is open to michigan residents only. that's the show for today. i'm becky quick. thank you so much for joining me. keep it here, we're "on the money." have a great weekend, and i'll see you next week. 0 it moves! do you feel it? it can happen with every denture. these movements may irritate your gums. but you don't have to bear with it.

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>> narrator: this is an "american greed" special presentation -- "madoff behind bars." >> what do you have to say to the public, to your investors? >> narrator: bernard madoff masterminds the biggest ponzi scheme in american history. >> are you sorry for what you did? >> i would say he is the charles manson of the investment world. >> narrator: once living in the lap of luxury, now this is what he calls home. but bernie madoff isn't going away quietly. >> bernie, in a loud voice, said, "[bleep] my victims." >> narrator: what is life really like for bernie madoff behind bars? >> every time i saw him, he had a smile on his face, you know?