26 calls, big numbers. >> cvs, watch the multiple on this come up. >> blackrock, above 500. >> i like it and i agree i agree. all day. >> all right good stuff thanks, everybody. thanks for watching as well. "the exchange" begins right now. >> you got that right, judge, welcome everybody. here's what's ahead. from unicorn -- what do you think we ought to call them? they're calling them donkeys why many of silicon valley's biggest darlings did not win over wall street and what the lesson is. plus the tax that could rock wall street, another one, we're breaking down elizabeth warren's latest bombshell proposal buried within the lines of her health care proposal and the recession ghost that was hovering over sentiment seems to be lifting. are we setting up for a year-end rally? we begin with today's markets. who better than don. and i'm a few feet away from

you. >> he is standing right over there right now. let's talk about the markets because we are pulling back again. they have accelerated a little bit to the downside in the wake of some headline that is the u.s./china trade talks may resolve themselves in december the dow industrial is down by 37 points the s&p 500 down by 5. at the highs today, we were up about 8 points we were down four at the lows. just about at those low levels right now as you can see moving to the downside right here one place to look at, over the last month, check out what's been happening with interest rates. the difference between yields on ten year government bonds and two year government bonds, down here was minus five. it's all the way up to about 22. that move higher in interest rates differentials mean the s&p financials were the best-performing sector and then the stocks of the

someday. xerox and hp, xerox could be trying to buy hp both of those stocks up big day. >> weird story $8 billion company going after a $27 billion company. it's weird i don't get it i don't get anything in the world lately, though, right? >> it's all kind of crazy. >> it is thank you, don welcome to "the exchange." uber continuing its recent slide as its ipo lockup expires today. slack and peloton both lower by 20%, lyft and smile club down 40%. what happened? uber's ceo had this to say at

the "new york times" deal book conference >> there has been a fundamental revaluation of revenue growth and the value of profits and the -- in an increasingly uncertain world, right the world around us, everything going on in politics, the global landscape has fundamentally changed over the past two years and i think the appetite for the unknown and high risk in the public markets, it's gone down and that has consequences. >> joining us now, my panel. i think point to a lot of things and i understand now that the metric has moved from, we're growing, our revenue is growing, now people want profits, but i also think there was so much

money sloshing around and they got out of whack. >> it's hard to say that there's been a revaluation when oftentimes in a lot of these unicorns you've seen crossover investors so i think a lot of it is more investor psychology than anything else. it's the fact that, you know, once you stop seeing these things working, people stop giving money to companies that have similar financial profiles as those. >> and everybody -- i'll go to you, dan amazon showed us a way to grow into an $800 billion company without showing profits because whatever they were doing with the money, it made sense but not everyone is an amazon, are they >> they're not and it's been a long time since amazon did that and i think it's hard to argue that the markets now are similar to the markets then, even though that was preinternet boom and bust. but i think leslie is right in the sense that you have this fundamental, you know, kind of revaluation going on and a lot

of psychology and what needs to happen i think is there needs to be some discipline in the preipo phase. >> if soft bank does some of the initial rounds and it's valued at this amount and they do an additional round much higher, they're the oning that are setting these new prices with their own investments. why was the private price ever real, or was it? >> right, and i think you're seeing this all come to fruition, the earnings webcast, who's been driving a lot of these big bets, he was humbled overnight. he said, listen, my judgment might have been off particularly when it comes to uber and we work i think you're seeing the sort of spectrum of so-called tech companies, some more tech than others you heard brian, airbnb's ceo talk about this today, trying to distance themselves from uber saying that they don't need to actually raise money, they've

been profitable for the last few years and you had uber trying to distance itself from we work so what you're seeing are these different sort of tranches emerge and companies trying to distance themselves from other tech companies that perhaps grow too quickly, couldn't sustain growth, couldn't sustain the losses and soft bank has been behind a lot of these companies that sort of -- something as -- transportation as tech, fitness as tech. >> the only way to market to market is the next round and, i don't know, it's not really transparent in terms of what something is worth, i don't think. should we be happy, dan, that maybe we work, that they didn't pass the bag to public shareholders that the smart money were the ones that really sort of got hosed on this thing? >> i think it was a good sign that public investors were willing to be more skeptical than many in the private market

and i think what's probably surprised a lot of us is the effect that we work has had across the rest ofit, you know people weren'tinclined to see that as a -- you think people would be inclined to see that as a one-off because it's an odd real estate company, but it's taken down the sentiment across all of tech. peloton went out that very week with -- and really got -- i think they would have done better if they had gone ahead of time its affected valuations across the board on that. >> a lot of it was we work we're talking serious money there. >> it was, because what else could it be? the markets keep touching record highs every day. you can't blame the market environment. it's clearly the people are looking at these individual cases and saying, you know, i'm going to get out of this space all together >> joe, i just hope that this lasts, though. i think a lot of the vcs we talk to here in san francisco say we work wasn't ours

this company isn't based in san francisco, i didn't have a lot of money behind it notably, benchmark, but not a lot of the other high-profile firms here i think you're still seeing a lot of money looking he says they're still expected to raise a hundred billion. >> thank you speaking of new highs, i'm going to talk to a guy who i don't like being nice to him and giving him a lot of credit trade tensions are boiling yet again, whether this points to investor confidence is a mystery, but my next guest says it's starting to fade. with me chief investment strategist for a couple of years, you really weren't that excited and we had some flat turning around. and then i pay attention to what you said, because you are -- i see really bad people that it doesn't matter, we have them on

again and again. you've been right ch and you were right about this one. you said you're going to start to see europe improve, the recession wasn't going to be real and it was time to get in the market you said this about, how long ago was that to me four, five months? >> at the december and -- >> even longer. >> i've been bullish sense then. >> it's starting to happen, i think. we had 17 guys and gals asked what their price target was. >> one of the things, certainly, that's kept this market going is just fear. it's been outsized really every since last year and it is easing finally a little bit but it's still -- it's still sort of palable. some of the things that have helped here, it seems like we're getting close to some kind of chinese deal i don't know if it will amount to much. it looks like we're going to do

something and i think it really helped that the bond market stopped giving such negative signals, joe, and the yield curve now inversion is gone and yields are turning up all over the globe. that's a pretty good sign of, you know -- >> hold that thought i want to go to rick news alert in the bond market right now. you led into it perfectly. ten year bonds up, rick santelli is tracking the action what's the demand like >> i grade the demand and i gave this one a "b. above average demand let's go through it. 27,000,000,010-year notes, first offering, there will be two notes to follow. the yield at the auction, 1.809 which is basically right at the lows of the one issued that really priced well, the bid to cover 2.49, best since april,

64.5, best sense june. 12.4 on directs was -- dealers take the smallest amounts since june "b" as in boy, the sell-off that pushed rates up was probably the main reason investors really stepped in tomorrow the last leg, 30-year bonds, back to you. >> unless we decide to do a hundred year and i would like to be able to redeem that. let's get back to jim paulson. where -- let's go out a year let's go out two years it's 3,100 or wherever we are on the s&p, is that going to be the low end of a range or we in nosebleed territory and we're like up there in the sta stratosphere. >> i look at valuations as the moldable -- on trailing

earnings, a little over 20 times and that's slightly above average from where we've been since 1990 when we've been in a higher valuation range than we were for the previous 130 years. i don't know if you're overvalued i don't think so and when you look at yields as low as they are and inflation as low as they are, i think it's a tough call next few years because we are at full employment if we start to grow again at a quicker pace, we're going to reaggravate overheat pressures, the same things that gave us trouble in 2018 and that will in a necessitate higher yields. i know productivity was off today, but it's been growing about 1.5% year on year now for the last 10 to 11 quarters which is up significantly from what it did in the first six years of this recovery. if we can get a little

productivity sustained, i think it could last for a while and have higher results out of the stock market if we start to reaccelerate, earnings estimates are going to start to rise on wall street and they're going to start rising from a 1.8% ten-year yield the last time we had that, we had a 3.25%. >> i was going to talk to you about the dollar you're not sure it stays strong. we'll leave it at that, jim. we'll see you again, i'm sure, somewhere. somewhere during the day thanks >> you bet, thanks. here's what else is ahead on "the exchange. >> coming up, on the mark, target is up 65% this year but what analyst says it could

rally another 30% from here. he'll make his case next plus hidden in elizabeth warren's new tax plan for health care is a bombshell for wealthy investors andis amazon looking to get into the fitness business >> announcer: this is the exchange on cnbc when we were looking for a roommate, he wanted someone super quiet. yeah, and he wanted someone to help out with chores.

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welcome back to "the exchange." shares of target are up 67% since january. on pace for their best year ever despite that big move, one analyst says the stock can climb another 34% from here. for many, i'm joined by the man behind that call and here for the questioning, i hope you got your story together, because courtney reagan is here. you got the highest target on the street. >> the bottom line, they've done a good job we do consumer surveys and we did one in 14. and if you look at all the metrics, they're all popping. >> that's why the stock is where -- that's why it's up here >> it's going to keep on trucking the momentum in retail is a big deal and consumers really like it, the economy is doing well. we anticipate the stock -- >> you have smaller stores next

to all the yuppies they have smaller stores and they switch. >> one of the things our surveys showed was that the core target shoppers, are young, millennial person, they didn't have a lot of stores there. they needed to bring the stores to the shoppers. they've done a good job at that. >> i guess that doesn't describe millennials very well. >> i'm a millennial and as we age, we're starting to enjoy things that you enjoy. >> like socialism? >> things like good experiences in stores and providing for our families -- >> that costs money. >> it does, it does. but -- >> it's a job. >> that's true i think target has done a nice job integrating the stores and website. they looked at their stores not as liabilities but as assets they said when they ship from a store, it's 40% less costly,

that the drivup services help them save 90%. if you order online and pick it up or go into the store and get it i think that's actually very compelling they've remodeled stores and they saw sales grow 2 to 4% from doing that all of these things they did where we thought, really, stores, that's the wave of the future, that's really worked and helped grow the online business. >> all of this is going to end up in scott's next research. >> the remodeled stores are, their fantastic. if it was ten years ago and you saw a store like that, you would be like, this is one of the best remodels we've seen. but what we've seen is consumers like to go into the stores, they like to experience the target, if it's fresh and they have the option for omnichannel they've really hit a lot of notes, target, in the team they benefitted from a lot of closures we had toys "r" us last year,

but a lot of other closures and they've upscaled their health and beauty area. >> and baby and toys was up 15% for all of last year they have captured a really big portion of that and to your other point, my sister-in-law has four kids. she does a lot of online shopping but she likes going into the target store and he ends up with more than she intended to buy. whatever they're doing, it worked

they had a good day yesterday no doubt. but face a lot of competition. lot of competition. >> great thank you. courtney thank you. coming up, a closer look at elizabeth warren's latest plan that attacks the rich and the impact it could have on the market this is a doozy. you'll like this one you don't even know what it's worth. plus, rbainb just suffered

another setbackcourtesy of jers jersey city. the "the exchange" is back in two minutes.

welcome back to "the exchange." here are some of the earnings moving this hour shares of ww, formerly weight watchers, sinking after revenue and guidance fell below forecast subscribers also fell a dip quarter over quarter on the flip side, cody shares are soaring. medics company reporting a

profit after a loss in the same period last year also, reaffirmed its full-year guidance and cvs health higher after earnings per share and revenue both beat estimates. company getting a boost from strong results at its aetna health insurance business. speaking of cvs, don't miss the company's ceo tonight on "mad money" at 6:00 p.m. eastern right here on cnbc now, sue herera for a news update. >> good to see you, joe. all right. here's what's happening at this hour roger stone arriving for day two of his trial on charges of lying to krcongress a jury has been seated, setting the stage for opening arguments in a criminal case stemming from robert mueller's probe of russian meddling in the 2016 u.s. elections one man is dead and a sheriff's deputy injured after a shooting in a north carolina hospital a person in the deputy's custody went for his gun inside the medical center this morning

injuring him a police officer then shot and killed the attacker. 1,000 scientists have signed on to a study which says earth is facing a climate emergency. the study says greenhouse gas emissions are rising quickly and governments are not doing enough to slow it down. it was published on tuesday in "the journal of bioscience." and it's that time of year amazon prime free one-day delivery is expanding to millions of new products it will add 10 million trusts, including popular holiday gifts like toys and games and electronics. that is the news update this hour it's great to see you, joe. >> good to see you, too. yep. i always count on you for these little vignettes to get some of the general news in. i do. >> thank you. >> how long has it been? we go way back let's not talk about that. >> we both had a different hair color. let's put it that way. >> i'm not going to comment on that either. here's what i'll say mine is a little bit

see here you can see. here's what else is coming up on "the exchange. ahead, a very surprising new revelation about the new mcdonald's ceo a big defeat for airbnb as it prepares to ipo next year. a match not made in wall street heaven and a proposed tax in elizabet warren's new healthcare plan would have a huge impact on all investors. that's all ahead on rapid fire iu want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪

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on a few stories that should be on your radar. it's time for rapid fire julia boorstin and dom chu that's why i said sue and i go way back i used to bring you stuff from "the wire" that we had to rip off in 1989 and hand it to you as you read the breaking news. >> back when we were friends and we played golf, you got up at 4:00 in the morning to go to emerson. and lay the bag down. >> i did. >> to get us a spot. >> would you do that today

>> if i could play with you? >> sure. >> no. >> i didn't think so. >> you know i would. i love you and i miss you. all right. first topic, got mcdonald's new ceo chris kempczinski has a big new job and that -- what he needs to do is buy some stock because about 7.5 million new problems, the freshly minted ceo doesn't own a single share of mcdonald's he unloaded his roughly 11,000 shares of mcdonald's back in may for about $4.4 million now, he needs to acquire $7.5 million worth of mcdonald's share in order to satisfy the company's rules on executive ownership. that might be a problem here if i had to buy $7.5 million worth of comcast stock could you help me with that? >> 69% of the s&p 500 companies out there require their ceos to own shares in the company equal

to six times their salary. and mcdonald's is one of those companies. so he's got some buying to do here. >> he's either got some buying to do. or there may be a way and i'm not some corporate governance expert, to take his compensation in stock or in options or accrue them in that way but what i thought was funny is when i first found out that -- where he sold it, i thought to myself, wait, that was when mcdonald's was at a record high. that was the record high for the stock. >> it seems like he has some explaining to do why did he sell then it raises the question, what is his long-term confidence in the company? and i mean, one thing i noticed in the company's i cover is if you ever see a sale that is not part of a preplanned selling plan, you always raise a question about that. >> those preplanned things you can always fall back on that, angelo. >> angelo, remember, that's why he was -- i mean, those things are -- and this brings to mind the ceos who would raise fanfare. i bought x number of shares at

this point you know, it's not -- they're not being -- >> i -- i think it's -- you know, if you want -- if you want to do some class warfare, i think it's just amazing that, hey, you got to by $7.5 million. you're a ceo buy it must be nice. >> who had ke-- >> i'm saying you could make the compensation case if they all can afford $10 million worth of the company stock. not all of us. anyway, topic two. love can be a rough business, especially for match groups. that stock falling more than 60% after reporting results. it has recovered some but still down 4%. >> you're doing so well. >> go ahead. >> i don't know. i've never -- >> it's a perspective thing. >> one factor weighing on the stock competition from rivals like -- i call it bumbler.

anyway, bumble and facebook. but it's bumble. it's not bumbler. >> it's bumble. >> it has been hugely successful and the whole idea about bumble is that it puts women in control and lets them be the one to decide whether or not they want to reach out. >> shouldn't they call it zz hawkins or something >> that's so old-fashioned, phil davy hawkins is a -- i mean, this is a more contemporary approach so bumble. >> grandpa. >> also, you have -- >> okay. boomer. >> you also have facebook, which is -- facebook also launched a dating service and the thing about facebook is it hey not have the identity as being a place to go for dating but it has so much scale that even if it gets a tiny percent of the people to sign up and use that service. >> what i think is interesting, you know, iac which owns all of these tinder and match and all that are spinning them out now, why would barry diller be doing that right now if he had faith in these companies

that's his m.o. but why now? >> he still owns a huge chunk of match. this is always been his -- with expedia, angie's list. >> i wish we had more time i really do. >> are we done already >> no because we could talk -- we could go back and -- you know how those two old guys in the muppets? me and you -- we have no idea about this new world people get dates, right? >> on smartphones, yeah. >> on their smartphones. >> what's funny is the last thing we were talking about this was in new jersey. >> we got another topic. >> i hope we have more than that. >> smartphones, they book places to stay. >> oh, that's right. very good. very good. >> topic three voters in jersey city dealing a major blow to airbnb just as the company prepares to go public, city passes measure to impose strict regulations on

short-term rentals owners are now required to acquire a city permit which will cap units and -- for a unit that can be rented if the owner isn't on site. so that's sort of a crimp in this airbnb spent about $4 million opposing the measure and i understand across the river, there's a lot of big time new york hotels. >> there are i mean, there's vested interest on both sides. but this is distinctly as you point out airbnb spent $4 million on this thing and the hotel industry spent $1 million. and what do they get for their money? an 86% majority. >> i'm a landlord. i totally get it i get why people want to cap these things because the amount of stuff by the way, incrementally speaking, i know that brian che chessky, the founder of airbnb was just on but the new flow s w

for airbnb has been pretty much nothing but negative so if you're going up against air bnb -- >> you can still operate it but i think what's interesting here is airbnb knows it has to take major steps to crack down on party houses where there was just that shooting at an airbnb. this is a company that's going to be more successful over the long run if they make sure people renting their apartments out are not trufrustrating and annoying their entire building. >> joe, would you put your house on airbnb? i've been to your house before so i know. >> i've tried to figure out what i'd rather do. have someone staying in my bed or me staying in someone else's skeavy bed and i don't want to do either. i'm sorry, i don't. >> is it sadie hawkins >> it is sadie hawkins that's right

big bob is watching and knows it is sadie all right. topic four costco teaming up with insta cart to test the delivery of prescription drugs to its members, deliveries will be free on orders that cost $35 or more. and the fastest delivery option is one hour. comes as costco is ramping up competition with amazon and walmart, both of which have explored prescription delivery in the past year. >> why do i need my prescription drugs in an hour >> are you kidding i think this is genius have you ever been with a sick kid in a pharmacy? let me tell you, no one wants to wait in a pharmacy with a sick kid. >> maybe if the mood strikes. >> what are you trying to say, joe? >> just ignore the host. okay >> i think anyone that's a parent taking a kid from the pediatrician to the pharmacy i would do this all the time i also like ordering things online i get my groceries from amazon. >> groceries, i get. groceries, i get but a prescription drug, there

are going to be restrictions on that because you're going to have to be at least 18 years or over you're going to have to show i.d. the person delivering it has to be certified to be able to deliver these things we're talking about some major costs in here that are going to be involved. >> wait a second hold on. courtney's got something about tiffany. let's get to courtney. >> hi, joe yes, that's right. so we have some headlines here crossing from reuters citing sources that tiffany's board has said the lvmh offer to acquire the company is too low at $120 a share. reporting the exact price tiffany's would like to see cannot be learned but $120 is too low for them to open the book and let lvmh take a look. you can see shares moved higher and shares right now are sitting above $120 at $125 a share on this news. joe, back over to you. >> okay. courtney, thank you. >> you know, they replay this on twitter. i cannot wait. i just -- i can't wait. >> thank god it's just us.

you do know there's cameras. >> have we done the last topic yet? >> let's do it topic five cnbc's todd hazelton uncovered something as he was testing amazon's new echo bud head phones when paired with the amazon alexa app, he found a fitness profile section that prompted him to say, alexa, start a workout. alexa tracked his workout time, the distance he walked, his speed, and his step count. and apparently, it didn't do any heart rate yet but it seems this is all ready to go. >> what's -- it's keyed up and ready to go. not available to everybody so he kind of stumbled upon it but i'm thinking to myself, wait, i didn't really get surprised by it. i think they're all tracking us, aren't they? my iphone does anything i put on me does. my watch does. already been doing it so long. >> i think it's interesting -- you have growing demand for data

about health you have the apple watch doing that obviously, iphone can track your steps. but i do think there's this question if your ear buds are doing that, what else are they -- are they recording i mean, are they recording and listening? what's going on? >> all the devices in my house are all recording at all times. >> is there full transparency about all the data being collected? that's what i want to know. >> do you have eair buds >> i have the regular iphone ones. >> but you don't have the pods the free-standing ones. >> i have the free-standing ones, dom. why? is that a big shock that i have moved into the future? >> i don't i don't. i think i would lose them. >> i know it's amazing that you do what scares me is when i walk across a grate you know, down in new yo new york city, you can lose those things they fall out very easily, phil. i actually found out there are sweat glands in your ears. did you know there are glands? they fall out and i need to switch them around but the new one -- >> is this a result of climate change

>> sweating. >> do you use the air pods >> you know, i had the air pods and then someone told me that there were -- doctors were looking into potential risks of having like those cellular signal going to your ear so i don't know. i have both. >> the new ones have three different sizes because the one size fits all -- >> they're also noise cancelling, right? >> they're noise cancelling, as well. >> you know what they say? time flies when you're having fun and it goes really slow when you're not. >> you're not having fun >> did i say that? >> no, i don't know. >> thank you >> all right thank you. >> anyway, bill griffeth, dom chu, thank you, julia. we have new numbers on the stunning turnover in the c suite when we return

exchange." the ceo exodus continues reaching a record last month

172 chief executives left their position and their post in october according to a new report by -- and that brings the total for 2019 to 1,332 making it the highest january to october total since the firm began tracking this info in 2002 mcdonald's, under armour, two of the high-profile companies that lost their ceos in just the past two weeks. the report also says that most ceo departures this year were from companies in the government and non-profit sector. telecom was the second highest financial companies came in third. all right. coming up, hidden in elizabeth warren's new wrap of taxes for healthcare is a bomb sll fheor investors. we're going to tell you what it is and how it could impact the 1% and others also in the market that's up next mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson...

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welcome back to "the exchange." elizabeth warren's distaste for the wealthy is not a secret. she keeps finding more ways to tax them -- could be the most painful one for the markets. yet robert frank is here with what she's proposing now tough to implement.

>> yeah. this one gets complicated. let's explain what it is warren plans to raise over 2 trillion a year. now, she's proposing that the annual tax on the appreciation of an asset, even if you don't sell it. so right now, you only pay capital gains tax when you sell an asset but under her tax, if you own 100 shares of apple, which is about 100 in gains this year, your gain would be $10,000 the tax on that right now would be $2,400 if you sold them but under warren's plan, which also increases the capital gains tax rate, you would have to pay a tax of $3,700 on your apple stock even if you didn't sell a single share this year now, warren says this tax would only apply to the top 1% of households and it would exclude retirement counts. but as she says, ultra-millionaires and billionaires won't be able to earn income on giant fortunes year after year without paying a penny in taxes so this is a tax on unrealized

capital gain and by the way, if you have a loss, you can carry that forward into the next year so there is that but can you imagine every single year having to be taxed on your annual gain? >> i mean, all bets are off i guess because we're not talking income at this point we're talking actual assets. >> this is on top of her wealth tax. >> right which is also not -- >> a tax on assets. >> so what if apple goes down the next year? >> yeah. and -- and then you have a loss, which, you know, you can carry forward with the next year. >> yeah, but you don't -- would >> what about businesses, liquid things >> it's unclear whether she's talking about including liquid as eds we don't know that the ron widen plan is just financial assets >> is dino a thing like a rhino? if you know.

if heidi goes for this, the sun may come up on the west coast. it's said in the nicest way, heidi. >> it's nice to see you working in the afternoon okay, real good. you can't. this is not going to work. this is ridiculous >> well, come on >> this is being written by someone who never administered tax. your viewers who see us quite a bit know that i used to be the tax commissioner in north carolina responsible for administering taxes like this, i don't know how it works in real life. the taxable event has always been realizing that capital gains in one way or realizing the loss, and then taxing it at that point this is consistent with a lot of discussion about capital gains i do not disagree with inning

creasing the rate. maybe i wouldn't go to ordinary income, but i definitely think that it is unfair to working people that if you make money on your money, you're taxed at a lower rate, than if you actually go to work every day and work at the factory. i think you have to buy fur indicate her plan. which is you're going to tax it whether you realize the gain or not. that will never fly and it will create incredible hardship for people living on fixed income and savings. >> i'll get back to senator and needle her a little bit. maybe you ought to jump in the ring, simon. you need a modern -- you need someone with just -- you know, some grasp of the real world to run for your party i don't know if you have that yet. >> what do you think >> i think it's a bad idea

but to require people to pay taxes on unrealized capital gaines, not even france does that, greece doesn't do it i assume i sometimes wonder does warren have stock in tax accountant shares or something like that, because the only people who will benefit will be the people who prepare tax returns. this is a complicated nightmare that will be very bad for growth why on earth do we want to increase taxes on investment when every economic theory agrees that's a precondition for higher wages and more jobs >> it's in there, robert but what is the real -- it's funny, people that are supporting senator warren who are capitalists, et cetera, they say, oh. >> you think they are? >> no, some are. you know the kind i'm talking about. they always come up with, oh, that would never pass. she doesn't -- they always come up with ways of saying, i

support it because the stuff she's talking about is never going to happen. >> there's the pivot pipe dream, which is that she's going to pivot. the one part of all of her agenda that clearly can't pass without congress is the tax piece and that's the answer to these taxes. if you look at the wealth tax coupled with this, why would anyone save or invest anything by the time you take the wealth tax, which is either 2% or 6% on top of taxing unrealized capital gains at more than a third, there's nothing left at the end of the year. if you invest anything. >> right >> senator, you go ahead when you walk around cambridge, do you -- do people -- you're way too -- you don't fit in up there, do you? do you go incognito? >> well, no, i try to recalibrate everyone and introduce the real world, which is interesting, but i do want to make a point >> go ahead. >> because of stepped up basis,

a lot of capital gains is never taxed. and that's a whole different issue, i know andrew talks about it, that's one of those equity issues we have a growing and very dangerous wealth disparity in this country i know you guys have been talking a lot about wealth taxes and how this isn't going to work, you need to come up with an alternative for how we're going to make the system more equitable. >> we need to not just cap the successful people. we need to make sure that the money we get from these people does something useful to try to raise up the bottom. >> i don't think you help poor people by punishing rich people. if we want low income people to benefit, why aren't we doing things like sweden and

switzerland and others have done have a private social security system so they can build wealth. all throughout human history, all throughout our history, all throughout the entire world there's a very clear relationship, the bigger the burden of government, the worse it is for ordinary people. i think elizabeth warren's class wash fair is going to be destructive for people she claims to want to help >> you'll have to hold off on your thoughts. they're telling me we have to go is that okay you're all right >> we got to go quickly. coming up, thanks, darn, and thanks robert. kim kardashian, i never knew i would say that weighs in on whether it's time to get rid of the like buttons on social media. the time to choose your medicare coverage... begins october 15th and ends december 7th. so call unitedhealthcare and take advantage of a wide range of plans with a variety of benefits...

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earlier this year, facebook began testing a version of its platform in australia, where the likes and reactions such as hearts and other emojis will be visible to the author of the post itself. kim kardashian had this to say

>> a location more for privacy, but as far as mental health, it's something that, you know, i think taking the likes away and taking the aspect away from it would be beneficial for people i know the instagram team has been having lots of inner conversations with people to get everyone's take on that, they're taking it seriously and that makes me happy >> do you read all your comments >> i do not. but i find myself to be -- >> wow i need a screen shot that does it for the exchange. power lunch starts right now joe, nice to have you in the afternoon with us. welcome, everybody here's what's new at 2:00 on power lunch. uber unlocked. shares hitting a record low. we will hear from an early investor about whether or not he is holding on for the ride plus, there arfe