spdr s&p medals and mines, the sim many this is xme. >> interest day and interesting couple days ahead with the fed meeting and press conference tomorrow and we'll wait to see what amazon does, with a possible new product announcement. we'll see you tomorrow. "street signs" begins right now. >> has something just happened in the economy that should change the way you invest? hi, everybody. welcome to "street signs." the piece of news day that surprised many and what to do about it. what philip k. howard says is the real problem with health care, and here's a hint. it has nothing to do with medicine or the president's plan. one company getting a harsh lesson in social media and geography. we are joined by melissa lee today. >> and the animal kingdom. harsh lesson.

>> you could say they stuck their neck out. that's a tease if i ever heard one. green arrows across the board. we have the nasdaq higher about i about half a pers, the s&p up a quarter percent. xle, even though we're seeing brent moving higher, we are seeing the xle back off the 52-week high, seeing a reprieve, and the xlf finances having a pretty strong day up about 1%. it is, of course, broilen cpi that got the markets really reacting. >> it is, and you must have read the scripts, because the cpi is what we're going to talk about now. in fact we're going to talk about the "im"meaning inflation. has it finally arrived. steve, do you think it's finally arrived? >> i think there's something to worry about here, brian. it's been so low for so long. i think there's two things to look at. 0.4%, market looking for 0.2.

on the headline, core 0.3, looking for 0.2, but it's the persistent. if you look at a chart over the past several months, several months in a row with a low rise. and that's where we are. that's the fed's target. so the persistence is one area of it. another area of it is the idea that it's been fairly broad-based, airline fares were up, utilities were up, gasoline, prescription drugs, and whole range of services that things people buy. >> you see what happened there, though? i teased at the top of the show, the one thing you need to watch. that, my friend, is inflation, steve teased with two things. >> and it happened in five seconds. >> by the way, the fed starts their meeting today. tomorrow we obviously get the press conference and the decision. does this data alone change the fed's thinking? >> i think it will be part of the discussion. i think the fed needs to see what happens next in terms of inflation, in terms of price rise. there's an inflationary aspect

to this, because wages have been tag nan. that's one aspect that keeps people from spending more, all of a sudden their wages don't keep up with inflation, so that tends to be a drag. yesterday the fed hasn't explained to the world what happens once it hits its targets. is 2% sort of a break point? >> we're still below that target, for now. >> on the p pc. >> which is what the fed really looks at. >> you're correct, melissa. what is there to be worried at at this point? we know what's expected on the street, and correct me if i'm wrong, the fed will not change what it's doing with the bond-buying program. >> it's not. >> and it's not going to change its stats on rates, so what is so concerning to you? >> this is incredible mind meld between the markets and the fed. the outlook for interest rates has been very confide essant. it has trusted the fed, and trusted the fed's outlook. what if that gets torn asunder,

essentially, where markets become unhinged in terms of the fed outlook. that's my concern. i think yellen has to finesse this tomorrow and it's well worth watching. >> completely left-field question, knowing what you know about the fed board members, are they talking iraq right now? >> are they talking oil and the rise? >> is this on their mind? >> almost certainly there will be a report about international developments at the fed meeting. they will discuss iraq, and melissa is correct, the oil impact is one of the things that will be the biggest one that's followed. however, i would point out -- i'm pretty sure the fed is going to think about it this way. oil imports are down about 30% from their peak. so you would think that what happens overseas in some of the more volatile areas has less of an impact on the u.s. economy than perhaps on oil prices. there were guys remarks it's not up $10 or $20. certainly it's up high, but not

as much as it would have been in other times. >> and we have been higher. >> so maybe less of an impact this time. i think it's something the fed will watch. >> steve, thank you. steve liesman. >> if inflation is here, should it change the way you invest? let's bring in bob and mike. bob, i'm going to start with you. steve outlined the areas in the cpi report. is that a high to work at where to invest? >> i think steve's right. it's broadening. that's the point i would make as well. we're going to look back at the end of this year and say inflation is still low, but we made a low. so that probably means there are a few less bonds in my portfolio, and more stocks. 2% inflation is fantastic news for the stock market. and, of course, when we get to

mid single digits, that's a problem. this is the sweet spot for stocks. >> so sweet spot, bob, what sectors, then? >> so i think the cyclical areas look more interesting. the first quarter this year, gdp minus 1, inflation one. gnome nat growth at zero. back there are, inflation will be closer to two, nominal growth there for almost five. i want to own some technology stocks. i want to own some deeper cyclicals in the financial acres capital one, fort motor, a dow chemical. i don't want to ig no the defensive stocks. i'll give you three there as well, engine, wellpoint and mckesson. >> very nice. michael cuggino. i know the last the last time i look at your permanent portfolio, you have heavy into

gold. are you buying more gold or gold-related stocks on this news? >> no, we're comfortable with our gold and commodity weighting actually in our portfolio. i think it's important to discuss. there's a big difference between runaway inflation or inflation that will be different for the economy -- to have a negative impact and gradually rising inflation, and gradually rising interest rates for that matter. gradually rising interest rates are a positive, and they're indicative of a growing and increasingly healthy economy, so i think it's a positive sign, but, you know, again it's going up, the direction is going up, so inflation bears watching. volatility of interest rates bears watching. i don't think they're an immediate concern. >> we're not saying that inflation is a concern. what we're saying is if we continue this pace and the fed doesn't do anything, we could heat up to the point where it's not healthy anymore, we know what that also does to bonds. do you agree with bob that you've got to buy stocks here, because this is going to eat bonds? >> we would advocate a more

diversified strategy. i agree with a lot of bob's sectors in the stock market, and we would not get away from stocks. i would probably gradually add them as well. i wouldn't get rid of bonds, though i would say short and higher quality on the impact that if interest rates get volatile, you want to get in that sector, the bond market for safety. i would advocate some insurance in the portfolio, like precious metals, like real estate, like gold, to guard against an inflation surprise. so i would be more diversified. >> bob, quickly. i'm wondering if the think the sweet spot for stocks could be endangered shorter term because of the spike that we could see in summer gas prices? >> great question. remember arab spring oil prices went up $20, $25, and it did slow down consumer spending, consumer sentiment, stocks gave some up. it depends on how much. if it's just what we have seen so far, i think we'll be fine and this would water down over

time. if we have another double-digit number the dollars, then it will create problems, no question about it. the gas pump is hij for consumer spending and sentiment. >> they both like stocks, gentlemen, we appreciate it, take care. >> thanks. >> thank you. and be sure to catch a special edition, because we have a huge guest. janet yellen, melissa. >> c'mon. it's her news conference. fed decision, i'm sexing it up a bit here. one of the these meetings, i know nothing has happened for a while. at one of these meetings, the fed will change its tune. they may change rates at some point in our lifetime, and that's why you have to tune into all of them. i admit it's been a grind on the fed, because they haven't done anything for so long, but at some point they will, right? >> keep asking people out enough, maybe they'll say yes. wanna go out? as terrorists continue to close in on bag dat, the gnarl

jo, if one of the big ones falls. plus delta gets a much needed geography lesson after team usa's awesome win over ghana. that story from "street signs" rurnsz. returns. ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event,

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for the three-year high for the yield on the three-year note and that it may be indicative of the federal reserve or people betting the fed may move sooner on interest rates than we think. if you followed that, it kind of went to our point, the two-year dollar is down against -- >> at its highest since -- all right. >> the sexy part of that is people might be moving in anticipation of the federal reserve. >> exactly. the violence in iraq intensifies as armed militants move closer to baghdad. michelle caruso-cabrera is live in northern iraq with the latest. michelle? >> hey there, melissa. in fact, the violence has reached baghdad. seven people are dead in a car bombing in baghdad in a market that's frequented by iraqi shiites. remember the islamic rebels are from the sunni sect. more than anything, they said

they didn't fear the rebels arriving, because it's so well fortified. more than anything they feared car bombs that would come from rebels that had infiltrated the city. indeed we have seen one of those today. still, the majority of the fighting is taking place further north. they're struggling to cope with an influx, the 35 beds in the city's only trauma center in erbil are full. we counted roughly 2,000 refugees in that area. they continue to come from areas that having occupied by the rebels. the u.n. high commission on refugees believes that there are several hundred thousands iraqis displayed due to the violence. not all of them end up in a refugee camp, but certainly those who are most desperate end up in desperate situation.

big news out of kurdistan as well. the semiautonomous region which very much wants to sell its own oil in complete defiance, the oil minister today announced they are loading up a third tanker of oil. this is the third one in three weeks, in theory, in torte defiance of the prime minister. so farther they haven't gotten any buyers of this oil, because there's concern that it's going to be completely loaded with legal disputes, but if they discount it enough and if buyers get desperate enough, they just might sell it. they are very much testing the situation right now, and their possibility of mower autonomy in the kurdistan region. guys, back to you. >> michelle, thank you for staying up late for us, and please be safe. we'll see you soon. we'll talk more about oil. iraq produces about 3.4 million barrels a day. just one field, the giant kirkuk field produces about 1 million

barrels of that joins us, the president and ceo chris faulkner. iraq becoming more vital to the global oil picture. >> sure. >> but if one of or more of they fields falls or is cut off, would we here in the united states feel any impact? >> well, keep in mind that the production from iraq -- saudi arabia's elastic production can't even make up for the production from iraq if iraq was to fall. also keep in mind most of these assets are in the south in basra, right? we're talking about 3 million barrels a day. they were targeting 4 million dares this year, so it's kind of a sad situation. we could see impact if the vileants continues we could see $10 or more added to the price of brent and wti will follow. >> we've already seen some reaction in wti, though, chris. what's your anticipates in terms of how the consumer will feel? >> gasoline could move by 20

cents if we actually see more violence happen. the reality is headlines, geopolitical concerns, that's what's driving the price of oil. it's also about china buildings a petroleum reserve. it's about security concerns in nigeria. libyan oil is not existent, is all those things are creating tailwinds. look, iraq is another piece of the story, if you will. >> can you foresee a scenario in which wti remains relatively muted and that spread continues to widen, in that as you mentioned wti doesn't take it's cues off what's going on in iraq, it's more brent and when wti hits a certainly level, the obama administration might be inclined to tap the spr. >>. >> president president has threatened to tap it. we've seen prices at 52-week highs, above $100 for most of the past year, if not more.

so i think what's driving this is headlines, and i think you also have to realize the u.s. oil production has surging. we should see prices coming down and they have not because of these concerns out of the middle east, and they have all just connected together, creating a very interesting environment. >> chris, this is what we talked to book pickens about. we know it's hard forible la and everything to be -- but do you think this unrest will ac18th rate as much as we can the reemergesens of production? >> i would hope so. it's definitely going to draw attention back to this country. coming right up on saudi arabia's production, so i definitely think it will draw attention back. i hope that happens in the very near term, for sure. >> chris, thank you, chris faulkner. >> thank you very much. >> what is the best bets for

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there it is! what about that? it's john brooks! it's john brooks! >> does exactly what you're taught to do every single time. >> again and again and again and again. that was team usa's john brooks with the winning goal over ghana. huge win. so after the game, delta air lines sent out this tweet -- nice got. nice sentiment. if you're on the radio, it's a picture of the statue of liberty with a 2 for the two goals on the left, and on the right is ghana with a 1, and a picture of a giraffe. the problem is ghana is a tropical nation, and no giraffes are anywhere near ghana. delta apologized, of course. twitter atti had a heyday with it. i mean, there's probably a zoo

in ghana with a giraffe. >> and we don't even know that. >> we're not even sure of that. >> yeah, yeah. that's just idiotic. big news, by the way. uber-backed josh limiten, what do you have on uber? >> reporter: yes, sully, in sacramento today, state legislators are vote okay a series of regulations that really impact these car-hailing app.s, uber, lift, sidecar. what they decided just now, one commission, is that these car services should have to provide insurance, regardless of whether the app. is on or off. now, uber and lift and others had said they should only have to provide insurance when there's a passenger in the car. this committee decided otherwise. now this is just a first step. this now moving to the insurance economy and the senate where it's going to be voted on, but certainly a big headline for the services. the committee has other

regulation they'll be debating, including whether there should be more vigorous background checks for the drivers, whether their cars should have to have permit identification cars. we'll keep you updated on the votes as they come in and get you guys' headlines as they cross. josh lipton, thank you. there's a bright spot, permits on single-family homes rising at the fastest pace since september. if new homes are coming to the market, which home building stock should you be in? let's bring in bob wheatenhall. bob, i'm going to start with you since you're on set. i want to go to your building product stocks. this is interesting. you put a note out saying the renovation trait is still alive and that's the way you like to play it. >> we did put out a note, and we think there's a lot of headwinds on repair and remodel. we think commercial construction

activity will come in well below expectations. so overall, we do like certain stocks. we'll lied to bike our favor names and slightly lower entry ponce. in terms of the products, i was a bit confused. some are significantly low, and some have had the soft results, names lining consequence innocent building products. down like 25%. it's a gypsum play, pgt, for instance, last earnings missed eps and retches. >> yeah, absolutely. those are two small-cap names that we actually really like. the stories are impact. we would be buyers. we also names like mohawk rate management, stocks trading at 132. a great time to get it. another name, best in class

prayer fortune brand, summer high quality. we love the story. note near-term catalyst. there are softer headwinds. long term, we really like these names. >> do you have a single favorite stock? >> absolutely. we like pulty. it's all about the baby boomers, a hughes massive demographic trend. lots of leverage in the business, leverage on the top line, and leverage from free cash flow. we like that name a lot. >> all right. what do you think about bob's call -- what do you think about bob in general? >> bob's too nice a guy to go after. we love him. the carpet makers like mohawk, you agree with those calls? maybe the accessory plays are small -- >> i don't know if smarter is the right way to think about it.

the way we tend to think about it is they tend to be less beta on the down side, so a safer way to play, i think we'll see starts rebound. i don't think you'll see much growth in '14, but certainly the building products names are a way to do that. we like mohawk a lot. >> we've got to leave it there, guys, thanks for your time. >> thanks. all right. get this, folks, we are about to hear a case for insider trading. one guest says you've got to legalize it. i know you're thinks it's crazy. >> but first four upgrades and one spicy downgrade to tell you about. "street talk" is next. chocolate.

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time now no street talk, our daily rundown of stock news and views downgraded to an underperform, as they come out with the dom thing which you can odd the pizza on your phone. >> they got a pizza. >> it didn't go so well yesterday. so they're kurting the rating based on the free cash flow. they lowered their target to 68 bucks. the stock right now at 70.99. stock number two. let's start with or bits. >> there you go. all right. or bit, ow, appropriate, right? up 34.8%. ubs things it has a long

runway -- get it -- they like the introduction of a new loyalty program. >> so they think you should check in to the stoke. >> they do. sees upward earnings revisions, believes this year and next year's estimates are simply too low. the target has increased to $90 from 79. the stock's at 78. basically they had, hey, we've got to go up. the stock, 15% more up side, seen on expedia. a couple online travel. are you going to talk about that on the show -- what's it called? >> "fast money", 5:00 eastern. easy chip. >> upgraded to a strong buy. >> the stock is at 25.70, again, melissa, they had to raise it up. >> or they were late to the game. >> or they were late to the

game, is what i like to call it. >> yes, this was, however, a $46 stock about a year ago. so the stock is tanked. so they're coming out -- have you ever talked about this name? i have never heard of it. >> no. >> there you go. >> from street talk to talking numbers. let's talk coke cola. interesting today, because today investor david winter sited coke could be taken private? our own becky quick picked up the phone, called warren buffett, who said no chance that coca-cola will ever go private. look at that spike in the stock, only to come back down when becky got buffett on the phone. andrew, the fight aside, really between now winters and buffett. should our viewers take a chance on coke stock at this price? >> i don't think so, brian. the stock doesn't do much for me. it's been an underperformer for a couple years. there's not a lot of growth.

the bigger problem in my opinion is that it's pretty expensive. quite a significant premium to the overall market for no growth. so don't know what the catalyst would be to get this stock going. it pays a good dividend, about 3% dividend yield, so you would be paid to wait. >> i'm sorry, andrew. 3% is not so hot. >> no, it's really not. >> not when the stock is down. >> and you're paying upward, too. i don't know why you pay above-market multiple for a 3% yield. >> richard, what does the stock say? >> we know coca-cola is the bluest of the blue chip. even buffett himself will tell you successful investing is all about the entry point. to that point, i think we can do better. i'll show you how, after a 15% decline last summer into early fall, the stock settles, bounded by that double bottom around 37 on the low end and key

resistance up around 41. as you can see, once again, melissa, if we fail there today on this rumor, if you want to call it that about a potential takeover. that's a key ceiling, you see that area of consolidation, that congestion there, that's an overhang on the stock. i don't want to buy into that. when we pull back longer term, we can see some of the is concerns that andrew alluded to. we do break below that five-year trend line. in addition, we flirted with ha 150-week moving arches. that's your critical support there. i think you can be a better buyer, if you do like the stock down around that level, but any break below 38, you want to be a seller, so i'm not particularly excited into that key resistance. once again, this is not open table. i don't think we're going to see coca-cola disappear from the dow any time soon. >> thanks, guys. two bears on coke. you probably know david winters. i'm known him for a long time.

he's not a guy that rattles things up. very good guy, if you're watching, call in now, david, because for him to say that the company could go private at $180 billion. >> it's kind of ridiculous. >> or incredibly interesting. >> why interesting? because you think -- >> becausi an $180 billion company. >> it's almost impossible. >> almost doesn't mean impossible. you can't spell impossible without imp. i don't know why i agree to do this show with you, i mean, honestly. >> check this out. an israeli company called finer jill is tested an electric car that can go 1100 cars on a single charge. it uses an aluminum battery, nearly four times than the tesla gets. >> amazing technology. elon musk will be on

"closing bell." he's cnbc's top disruptor beautiful spacex. we're going to talk about solarcity today and tesla, where new jersey may be reversing course. >> and new york as well. they may be able to sell their cars directly. there will be a lot to talk about, as there always is when elon musk is on. he's always good copy for us. so join us right here on "closing bell." we'll be talking -- >> join us as 3:00, because mr. bill griffeth is back. do i see stubble from the vacation? >> it's all gone. >> i want to ask him about a picture of a television in some bar that was made in like 1977. >> i think much earlier than that. it was a dive bar in san francisco. i'm glad you asked, brian. just talk among yourselves. we'll be do in a minute.

it was a black-and-white tv up on top of the bar shelf, and we watched the basketball game. it was great fun. >> he's hanging out in dive bars? the bill griffeth? >> hard to imagine. >> where did he park his tesla. we'll see you at 3:00. elon musk, also the chairman of similarcity, it's up today because of plans to buy silvio. solarcity installs solar panels. let's bring in herb greenberg. you follow solar city. what's your take on this deal? >> i take it's sort of a deal that came at the right time. it's almost like they're changing. -- this is a company that installs solar panels and then finances them, and then dr itch this thing red flagged. >> why is this out of nowhere? isn't this exactly what tesla did with the giga factory? manufacturing a battery,

manufacturing the panels, making sure you have the right supply for the product demand that you sigh in the future. >> melissa, currently there's tremendous supply. supply is not the problem pride now. you could argue they're taking the story saying we need this years from now, but i want to point something out. the reason it remains red flagged for me is because you have the base business. remember, what they're talking about is years down the road, two years down the road, plus if they get there, they've got to get financing, they have to figure a lot out. in the meantime you have a business that's ongoing. >> it's hard for me to agree with herb, but i'm going to agree with you. you would know more about it than i do. they're going from a relatively asset-like model, they have trucks, labor, right, some financing, but an asset light model into an asset heavier model by taking on the production side. we know what historically -- it may mott be the case here, but

historically what does that mean for margins, right? they shrink i realize what does it mean for capital. what have we learned? we learned you don't bet gets elon musk. he's able to take these dreams and grand visions and execute upon them. when it comes to solar city, the stock hug wallows for a while. he's been silent on solar city. he hasn't been a big talker, suddenly today when they have their earnings call, he opens the call, he closes the call. for those who look at the accounting edge of things, i will say one other thing. with this announcement, i would argue they have taken something they call the useful life of their solar panels, which they stretch over 30 years, they've currently told you the current panels are obsolete, because elon musk says he will get some though look better, so you have something where there will be change this is a complex company, therein it why it remains red flagged. >> i think he said ceos and maybe politicians like to take

credit when things are good and send that are lieutenants out when not so good. >> amazing! >> don't yet at herb. we want to hold people legally responsible for the work they do, especially doctors. have we gone too far? wait until you hear how hard it is for some doctors to work at all. that's coming up. tdd#: 1-800-345-2550 there are trading opportunities tdd#: 1-800-345-2550 just waiting to be found. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 bring what inspires you tdd#: 1-800-345-2550 out there... in here. tdd#: 1-800-345-2550 out there, tdd#: 1-800-345-2550 there are stocks on the move. tdd#: 1-800-345-2550 in here, streetsmart edge has tdd#: 1-800-345-2550 chart pattern recognition tdd#: 1-800-345-2550 which shows you which ones are bullish or bearish. tdd#: 1-800-345-2550 now, earn 300 commission-free online trades. tdd#: 1-800-345-2550 call 1-888-648-6021 tdd#: 1-800-345-2550 or go to schwab.com/trading to learn how. tdd#: 1-800-345-2550 our trading specialists can tdd#: 1-800-345-2550 help you set up your platform. tdd#: 1-800-345-2550 because when your tools look the way you want tdd#: 1-800-345-2550 and work the way you think, you can trade at your best.

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time for our hard money segment. today let's really get physical. we're talking cattle, live cattle prices moving steadily higher. up 8% year to date. have you look at cattle over the past five years? up about 80%. >> it's crazy. think about the ground beef prices, the steak prices going higher. it's a problem. >> many of the fast-food chains, assigned from mcdonald's, unfortunately, have done pretty well. i knew cats was up -- we've got to "moo" on. >> we are moving on here. we all think doctors should

be held responsible, but medical malpractice costs are soars. our next guest says that's a dang you to the american health and the economy. we should know that philip is the author of "the rule of nobody." i think most would agree that we are a litigious society and there are people who sue more than others, and bring up up basically the backlog for the legal system, but in terms of your solution, you think there should be separate courts, separate judges specifically for medical cases. how would that work? >> well, it's important for justice to be reliable. if doctors do things wrong they should be accountable for the damages they cause, but the current system of justice doesn't veal liablely do that. the cases go jury by jury. sometimes the doctors are found liable when nothing they should have done could have avoiceses

the harm. the result of that is not the unfairness, but the epidemic that costs our society a hundred billion. everybody feels it. you go to the doctor. you can see them calculating, gee, you know, i better order an extra test, because if maybe in the offchance something is wrong, i might get sued. so you waste all this money. >> in terms of specially trained judges, though, we have sort of a model like this in the securities industry with arbitration, except they're not judges per se. when you say trained judges, are they judges doctors? because when -- would that instill a bias in them towards the doctor in the case, as opposed to the patient? how do we train the judges to make sure they are trained, but yet don't have these biases. >> well in this proposal developed, the judges judges would be lawyers, but they would

have access to neutral medical experts and render written rulings that are subject to appeal. so -- so there would be safeguards to make sure that decisions were rendered in accord with accepted medical practice. that's the whole point to have a court that's actually reliable for plaintiffs injured by mistakes, but also that doctors can trust when they're sued to distinguish good care from bad care. it's not a waste of $100 billion, it's actually worse care. there's lots of studies that doctors are so defensive, they go through the day with a little lawyer on their shoulder. they no longer speak up and no longer actually do the right thing. >> and maybe you do a billion tests when you have like a splinter when they have to. but here's my question, philip. we've heard a lot about the president's health care plan. we even talked about things like

banning soda to try to bring do you obesity rates. how come we're not talking more about that? we don't hear a people from washington, or at least not loudly. >> it's really -- before the affordable care act was enacted, amendments were proposed by democrats as well as republicans to put in pilot projects for special hiss courts. it was supported by the doctors, by republican leader, as well as by president obama, but at the end of the day, the trial lawyers apparently own the democratic party, and they had the provision for pilot projects changed, so that it basically barred pilot projects unless there was a jury at the end of the day, which mend it would that by reliable or predictable.

philip, thank you. philip howard. >> read his book "the rule of nobody" one of the best books i've read in a long, long time. sometimes i had to stop reading, because i got to angry. there it is. it sounds sketchy. should we legalize insider trading. what say you? >> i don't know. we'll debate that, that's next. when you run a business, you can't settle for slow.

that's why i always choose the fastest intern. the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would.

switch to comcast business internet and get the fastest wifi included. comcast business. built for business. our very own andrew ross sorkin out with a big story today citing a report that says about a quarter of all public company deals since 1996 may have involved some kind of insider tradinging. that got people thinking if we should just legalize merchandiser trading. let's bring in carol roth and andrew stoltman. carol, you're out there. people will say you're insane. how can you possibly legalize insider trading? it's a crime. >> you have to get past the headline and look at the common sense. you cannot have a crime where there is no victim. somebody who goeses in to make a trade is not better or worse off because -- >> they said people that don't get that price were the victims.

they lost money. >> this is the way the market works. we want the most information come in as possible. the people who benefit from asymmetric information are the big guys. it benefit it is the little guys to is more people putting information into the market with smooth out volatility. it would be better for the average investor to have insider trading legal. >> let's think about a scenario in which insider trading might create victims. say a board member has information about an earnings warning, passes it into an investor and they sold the stock before it plummets and all the retail investors are stuck holding the bag. >> if you make a decision to sell stock you don't know what's happening on the other side. whether the person has information or not doesn't impact you. >> should we legalize insider trading? >> no. i'm sorry. that's the dumbest thing i have ever heard of. the same people who argue this position don't believe in evolution and think the world is

flat. they are absolutely, positively our victims in an insider trading scam. just because it's difficult to identify who they are, it doesn't mean they haven't been victimized. >> do you believe -- >> it's people who paid -- >> i don't think the world is flat. here is the thing. you're taking the argument of insider trading today from when it's illegal and put it in the context of when it would be legalized. that doesn't make sense. we want people incentivized to bring information to market as quickly as possible. if you did, you wouldn't have huge opportunities. >> what's the incentive? >> all those arguments have been rejected by congress, judges. >> oh, rejected by congress! >> i want to understand this. carol, what is the incentive for an insider to bring information to the public before they actually use the information themselveses? >> right now it is the profit. obviously profit margins are

squeezed the more people are doing it. to find n whether it's based on your own research or another way you have to have incentive to do that. >> the problem is the people who get the information are hedge fund managers like rotman and steven cohen. >> right now in the context of it being illegal. >> very few people at the direct expense of retail investors. >> absolutely not. >> that's a problem. >> the more you incentivize people to seek the information means the markinformation comes market more quickly. >> the retail person can't get that. the hedge fund managers do. >> take an example of a garage sale -- >> we have to go. we're getting yelled at. we'd love to continue to discussion. >> we'll bring you back to continue. carol, it's an unpopular position and you are defending it well. don't fall off the edge of the world on the way home. >> i will try not to. >> we're going to dance on the floor, inside the house that the

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the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. its's the house that thighmaster built. robert frank takes us inside. >> welcome to my home. >> for most people buying a house takes a love time and consideration. not alan. he said he and his bought it 30 years ago on a whim. >> suzanne and i woke up one

morning. she said, let's go to palm springs and buy a house. that's not our style. so i stared at her and said, okay. >> the suzanne he woke up with is suzanne somers. they have been married since 1977, the same year she became a superstar on "three's company." alan said he knew he would pay too much once suzanne saw the home's unique curb appeal. there was no curb, but there is a cool cable car that brings you up to the house. >> how cool is that? that house can be yours for $14.5 million, by the way. 16,000 square feet, 73 acres. it's nice. >> worth every inch, i'm sure. >> what was it like? did you meet suzanne? >> no. >> we met her last year. she was nice. >> they're business partners. he's as much a part of the

empire. >> they're smart. >> it's all from thighmaster, not tv. she is the infomercial queen. almost none of it is from tv. she had a bad contract deal. she got nothing from the show. all infomercials. >> robert, thank you. eye opening. >> thigh opening. >> let's move on. thanks for watching street signs. see you on "fast money" at 5:00. >> eastern time. take care. welcome, everybody, to a special edition of the closing bell. i'm kelly evans at the new york stock exchange. welcome back. >> thank you. i'm not the reason are it's a special edition. we have a full plate today. so many different great guests coming your way and a market that in the meantime is watching and waiting. watching what happens, of course, next in iraq, and waiting on the fed tomorrow. the fed's meeting today and