>> if you noticed your co-worker is mellow and has the munchies.

nearly 10% of american workers have come to work high. >> a record run for stocks. the fed stands and interest rates start to creep up. joining us right now, financial writer for the washington post and david bianco. thank you both for being here. ela n, one of the big stories had to be the fed anticipating that the fed might end tinkering with her statement. >> i think that would be an exaggeration. the fed has been very cautious in withdrawing its stimulus. they are very worried about rattling recovery and pulling the carpet out from under the people who need the fed support the most. and so they are not going to

move until they actually have to. the considerable time that the fed has said it will wait before raising interest rates is linked to the end of its bond buying program. that one won't end until october. the fed has seven more meetins.s >> i just wonder what investors should do to prepare, if anything. >> one of the things, we see the bond market as having interpreted the action as a little bit of a tightening. within the statement, there is a survey as to what they think interest rates will be over the next years and the expectations went up. we saw a bond yield start rising and that has been continuing over the past couple of months with stronger economic data. we do think we're getting closer to higher rates. i still think that rates will

ri rise. rates are rising with that and no trouble with rates surging. >> who is right? the bond market or stock market or can they both be right? >> there may be a faster rate of increase but not ending as high as folks had thought previously. i think that was also important. it's going to be very slow. it will be patient in the way that it shrinks its balance sheet. that implies a slow and steady approach on the front end as well. >> david, what is your s&p target let's say all the way through 2015. >> we have the s&p ending this year and next year 2150 and

making it to 2300. we are still constructive on stocks. we do think that growth out of earnings is healthy. not robust but healthy. and i'm pointing to sectors that typically have stronger earnings growth. there are a lot of characteristics that make us most confident. >> you're also assuming that the ten year doesn't get above 4% through the end of next year. what happens if they move higher? >> we're assuming that it stays under 3% and under 4% for another few years. that is clearly an uncertain thing. that's where a lot of debate is. how that plays out is in part how the fed hikes short term rates. if the fed hikes rates a little earlier and aggressively, they won't have to go as high as 30 or 40% as they have done in the past. that should help keep long term rates low.

>> one of the things that the fed has been watching is what has been happening around the globe. there has been concerns with china and europe. what do you think happens? does that catch up with to us at some point? >> does the u.s. economy get hurt by any of these other economies or are we strong enough to with stand that? >> right now the u.s. economy is one of the leaders. the concern is if the u.s. economy doesn't grow as fast as we are hoping. >> david dorks you agree with that? >> i agree with the idea that the u.s. economy is strong enough to with stand slow downs and weak growth.

earnings gloet would be okay. not the double digits of the past 20 years. >> david, ela n, thank you both for joining us this week. >> up next we are on the money. he is the man behind some of the biggest technology companies of our time. and yet you may not have ever heard of him. pet peter explains how he strikes start up gold every time. we are left wondering are you tipping for service or out of obligation. we look at the ethics of tipping. take a look at how the stock markets ended the week.

>> the algorithm is the product of the company. >> i know that. what i'm asking about is the company itself. who is it? >> that's peter gregory and hbo's show silicon valley. peter thiel is an icon after investing in facebook, linked in and tesla. he is sharing his insight on innovation and entrepreneurism in a ground breaking book called 0-1. >> thanks for having me on the show. >> you argue that right now we are in a time of technology stagnati

stagnation. >> that is continuing to accelerate over the last 40 years. outside of that there has been a lot less progress in the world of atoms. energy, transportation, biomedical, biotech. these areas have seen much in the last 40 years. much broader progress across the board. >> is that a role for the government or something that comes from the ground up. >> i'm biased to thinking it's more from the ground up. we need to, it often gets driven by charismatic founders who are able to motivate small teams of people, get some investors and hit the ground running with various ventures of this sort. >> you have come up with controversial ideas.

you also make a case for monopolies. you say competition destroys profits and hurts companies and societies as a whole. justify that. >> it's pretty straightforward on the inside. you would much rather be in a monopoly than the fourth online pet food company. for society as a whole, i argue monopolies are good when they create new things. this is actually reflected in intellectual property laws. when you come up with something new you're not create ing ing frome

point of view of a businessman, entrepreneur and founder, you always want to aim for a monopoly. >> why do you think that is a better way of doing things and is this for everybody. >> there is no claim that it's for everybody. we picked 20 people a year which is quite a bit less than everybody. it is my claim that there is not a one size fits all answer. our more talented people go to the same short list of colleges and end up in the same short list of law, investment, consulting, maybe medicine.

i think we should try to encourage a wider variety of things to do. i might still end up going to stanford but i want to ask more hard questions as to why i was doing it. >> we have been talking an awful lot about what happens with alibaba. jack was talking a little bit about who he idolized. to the extent that we are copying these guys we are not really learning from them.

>> peter, i want to thank you so much for being here. >> up next, we are on the money. more people than ever before are working for tips but is this a good thing? how adding 20% to your check is tipping the scales to employers' favor. why you could be paying more for less health care this open enrollment season. can read your handwriting, a wide-screen multimedia center, and a head-up display for enhanced driver focus. all inside a newly redesigned cabin of unrivaled style and comfort. ♪ the all-new c-class. at the very touch point of performance and innovation. ♪

>> to tip or not to tip that is the question this week. philadelphia eagles made headlines for leaving a waiter a 20 cent tip on a 60 $check. marriot is requesting that their guests tip their housekeepers in the united states and canada. is tipping a gratuitous choice to reward a job well done or are corporations relying on your guilt to cover their costs. joining us is writer randy cohen. thanks so much for being here. this is something i struggle with all the time. as a former waitress and bartender i understand how important tips are. but when does the customer have a right to say i won't tip 15 to 20%. >> it degrades the recipient. it makes them reliant on the

whims of someone like me. you have known me for minutes. it makes us feel similar to you, completely bullied. but right now it's the only system we have. and so it's why you have no legal obligation to tip. you have a moral obligation. these are very low paid workers reliant on your 15%. that is part of the cost of going to a restaurant. >> some of them are making two dollars and change an hour. >> it's disgusting. >> what should be happening. >> first of all, fair minimum wage starting with fast food workers. >> they don't even get tips. >> no. how they live is a mystery to me. it's just unforgivable that in a country like ours, people are not paid a living wage when they go to work every day. restaurants can add a service charge. it will take some getting used to but it would free us from that decision or they could raise their prices. >> should you ever leave less than 15%?

10%? >> no. you can't stiff them. that's not social protest. that's just being cheap. >> so maybe you should give extra when someone does a bad job? >> tipping has nothing to do with the quality of service. some people tend to be generous and some people tend to be quite stingy. it does not change based on the type of service you get. that's an illusion. if tipping were a good system, my senator would work for tips. only the lowest paid workers work for tips. why doesn't my doctor demand tips. i'm guessing you don't have a tip jar. viewers will say i love the story she did today. here's a buck. if it were a system, the highest paid members would want to be paid that way. >> mariott is pushing people to

do this. >> once they put the envelopes out it institutionalizes underpaying their workers. >> it keeps expanding. service and restaurants, cab drivers, although i almost never take a cab. i biked over here. >> did you? >> no. >> i thought you were serious. >> i tip my bash rber. it might be nostalgia for when i had hair. or you might not want to stiff anyone working near your face with sharp objects. >> maybe care you take care of your child care workers. >> there is another selection to that. pay them a decent wage. >> every time you ask if you should be tipping for x, y, and z, you can't help but feel cheap for asking. >> that is socially awkward. when you tip a cop who gives you a ticket, they don't like that.

if you tip -- like my surgeon. she did such a great job. if you slip a 20 in her lab coat and say buy yourself something good, she felt insulted. it's a terrible system. >> money is a tricky thing to figure out. randy, thank you for your insights. >> up next, a look at the news ahead and the ins and outs of flexible spending and health savings account. both can save you money but which is better. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.

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>> for more on our show and our guests, you can go to our website and follow us on twitter. here are the stories coming up that may impact your money. on monday, existing home sales figures are out. tuesday is the first day of fall and that means there are less than 100 days until christmas but who's counting. wednesday evening marks the start of a jewish new year. on thursday, durable goods and friday, gross domestic product is due. that is typically a market mover. starting next month many companies will launch their annual open enrollment period where employees can elect benefits for next year. many spend far less time reviewing their options for

health insurance than they do for choosing something like a new car. workplace benefits. we have a discussion about what you should consider. >> it seems very straightforward but know what the deadlines are. know what ten open enrollment starts. it is the only time of the year that you can elect changes in your health insurance. if you don't make changes you will go with what you had last year but what you had may not be exactly the same. you want to know what the deadlines are. >> are there hints that you should give people? >> one of the things that you also want to do you want to make sure you review the benefits. there may be ways to save money there and you also want to make sure that you review your health

care needs. one thing people need to do is figure out am i a high health care user? that is when you decide if y you're in a high deductible plan. a lot of times if you're a non-tobacco user just for filling out the paper work and biome trick screening. and the others that people often get confused about, flexible spending accounts and also health savings accounts and changes with the flexible spending. you can actually now carry over $500 and before it was use it or lose it. that's brand new. you can carry over $500. you can still save more money in a health savings account. you can save $3350 or $6650 for a family. >> i remember with the hsas they changed some of the tax

implications on what you could use the money for. >> you can't use it for as much as you could before. the great thing about an hsa, people get confused. if any company doesn't offer it, can i still open one? you need to be in a high deductible plan but if your company does not have an hsa and you have a high deductible plan you can do it through a bank or broker and then you put that money in tax free. it grows tax deferred. if you use it for taxed medical expenses you take that money out tax free. >> thank you so much. that's the show for today. thank you so much for joining us. we will see you next time.

[ticking] >> when ali allawi took over as iraq's minister of finance in 2005, he was confronted with a gaping hole in the treasury. more than a half a billion dollars that was supposed to equip the new iraqi army had been stolen from the ministry of defense by the very people the u.s. entrusted to run it. >> that's a lot of money. >> it's one of the biggest thefts in history, i think. >> most of the iraqi officials involved, including the former minister of defense, have skipped the country, but we found one of his deputies vacationing in paris. if you went back to baghdad, you'd be arrested. >> uh, no. nobody will arrest me. they will kill me. [ticking]