. stuart: now we've got a story for you about the taxpayers own auto company. that would be general motors, it says it's halting production of the chevy volt for one month. now, year to date. gm has sold only 10,666 volts, way behind what was hoped for. and general motors denies that slow sales are the reason behind the shutdown. it says it's using the time to retool the plant. look at the pre-market action in general motors. it's going to be down maybe 20 odd cents. to the election, and it's still all about the economy. mary anne marsh is in boston and she joins us, as see often does from there. and always good to have you with us. and i think you know what's coming at you. don't tell me that you believe

our country would be in this mess, the mess that it's in today. if hillary clinton elected in 2008. please don't quibble whether it's a mess or not. now it is, 8% unemployment. 16 trillion dollar debt. 1 1/2% growth. go. >> i think she would have faced p of the same challenges that president obama faced. i do believe that hillary rodham clinton would have done jobs and stimulus with health care reform, but still a tough time getting it through congress. when president clinton passed his economic plan in 1993, it passed with just one vote. one democratic vote, that congresswoman from philadelphia was the deciding vote. she lost her reelection, went on to become the clinton's in-law, but how is passed. and we had a great economy after that. i think she would have had the same challenges and we could have well been in the same situation we're in today. >> and we agree on that. and i want to refer to the

enthusiasm gap for a moment. look, most of my friends colleagues tend to be on the right of the aisle. i understand that, but i don't know anybody who is really showing enthusiasm for four more years with this president. i mean, i just don't see people saying, we must have, we need four more years of this administration. i mean, i just don't see it, do you? >> i think you're starting to see that, certainly at the democratic side amongst women, amongst african-americans, amongst hispanics, and i think on the right, you had a gap a bit until paul ryan got put on the ticket. so, this is what really what everyone needs to understand about the election, it's a base election on both sides and then the only way you win is base, plus a little bit. and so romney putting ryan on-- >> you really think, as things stand right now, do you know that many people who are really saying, it's got to be, we must have, we, the country desperately needs four more

years of barack obama? come on. you don't-- that's not there. >> i think air seeing as nl people -- i think you're seeing as many people on the right loathe obama. i think many people on the left loathe romney-ryan and that's motivating the election and it's more of a base election than a persuasion election at this point. >> let's get back to the mess i think we're in and i think you probably agree. i can give you 20 seconds on what romney ryan plan to do and give you 20 seconds, clean cut exactly what they're going to do. can you give me 20 seconds on exactly what president obama is going to do to get out of the mess. >> no doubt about it. look the at bill clinton's add recently. the clinton plan, investment, tax cuts and deficit cutting all three across the board and that's what you're going to see if and if president obama gets reelected i think he does by a small margin, the economy will turn the corner, he will have the opportunity to implement that plan and i think we'll have the kind of economy that we had

during the second clinton term no doubt about it. stuart: you are a clintonista, you are, aren't you, aren't you? >> you know what, president clinton is the only credible person in the world who turned around an economy and gave us the best economy we've had, plus a surplus, it'd be nice to have that again, i think we will. stuart: president clinton in 2016? >> is she running? i think there's no question she's running. i believe she's absolutely running, we'll see how it goes. >> mary anne, we appreciate your opinion. thanks. >> thanks, stuart. >> the republican listen to "varney & company," they put a large debt clock front and center of the convention hall in tampa and we're talking about that next. plus, should mitt romney put the issues aside and sell himself, great family, sell himself the man, should he? we'll talk about all of that with one of the leading economists in the country, peggy noonen with the wall street journal, so, what does she think after hearing this? >>'s a private person in some

way. >> he doesn't wear his emotions on his sleeve. >> he doesn't. yet his emotions run deep. if you ask him about his dad or wife or some other things, he can get very emotional and tear up a little bit. you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, grow stronger and get back to work.

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wow. it's the honey, it makes it taste so... well, would you look at the time... what's the rush? be happy. be healthy. >> almost ready for trading. the new background is this. a positive report on home prices up about 2 1/2% month over month, june over may. mario draghi, the big central banker is not coming to america this weekend. he was supposed to be here and maybe tell everybody what the big plan is to bail out europe. 's not coming. his workload is too heavy. it makes a difference in some financial circles. the dow opened slightly lower, up abo down about 13 points. and two big tech names, you know them. both of them hitting all time highs yesterday and lauren, we'll start with apple. where is apple this morning? >> apple is retreating from the

all time high of 680 right now. it's down about .23%. nothing major. as you know, they want eight samsung products out of store shelves. stuart: they do indeed. it's a big story, they want the products off the shelves and reinforce their dominance and the stock is open two points lower. and amazon, all time high this morning, where this morning? >> amazon is giving-- >> no, it's up. it's flat basically. >> flat, yeah, up slightly right now. story, switching as we were trying to get that for you, stuart. and looking at the stock, maybe the consumer is healthier than we thought because those are consumer stocks, right. stuart: yes, they are. i mean, that's what a lot of people bought those products in back to school shopping this year. i know for a fact, that one. but neither of them in serious retreat for all time highs, lauren, thank you very much indeed. the dow is now down 19 points, right on target of what was expected. the republican national

convention, it goes into full swing today. and on "varney & company" we've been having an ongoing debate about romney's strategy, what should it be. should he push romney the man with strong family values? should he go directly after president obama on the economy, the issues? peggy noonan from the wall street journal joins us now from tampa. what should it be, peggy, go for projecting romney the man, the family, or the issues? what do you say? >> well, i think governor romney has a number of things he has to do in in speech. one is, as you say, present himself in a new way, in a sort of unveiling, as a human being who has lived a certain number of years of the world and who has a certain history. and so, of course, that history and who he is as a person is very pertinent right now. and americans like to know who their presidents are and like to

get a firmer sense of him. so they expect him to tell them his best story of who he is. and at the same time, of course, people will expect him to be serious about policy in this way, you've heard who i am. i'm going to tell you what it is i think we have to do as a nation. how i think i can do it. and why i think you should follow me in this great endeavor. so, all of these things can easily, not easily, but all of these things can be done in a speech that will probably go about 45 minutes. stuart: the back drop to that speech is going to be two debt clocks, number one, the debt clock that says how much debt we've run you up so far, that's going to be close on 16 trillion. and the other debt clock, the one we're showing our viewers now, is how much debt we have run up since the beginning of the convention. and in other words, the republicans are making a big

deal about debt and the national debt and does that resonate with voters? >> you know what? look. the debt and the deficit are huge problems in america and every american knows it. every american knows we are hemorrhaging money and it makes them feel anxious about the future. because they know, the books aren't right. and so that's not promising for the future. at the same time they all know, some day, they themselves, won't be here, but their kids are going to have to take on this heavy burden and this heavy load, so everybody's concerned about it. and that having been said, stuart, debt and deficit fit into a larger picture. the picture is about how to bring the american economy back, how to bring it back and getting debt and deficit right is part of getting america stable and allowing it to make jobs and expand and be the old america, the old expansive one we all

remember. so, do i think, you know, these are matters of not delicacy, but matters of emphasis and approach. and never be a scold. always have hope. stuart: never be a scold. >> you know, it's not like, don't get up there and start going like this. everybody knows the problems. stuart: that's right. >> fine, talk about it, but fit it into your plan, which is to turn this thing around. stuart: you know, peggy, forgive me for saying it, but you are so reaganesque, i know you worked closely, but that's exactly what he did. he came into office, well, the economy was in terrible shape, but he never scolded people. he simply said, look, it's morning in america, our best days are ahead of us, think positive. that's what he did. you're saying that governor romney has to do precisely the same thing if he wants to take on the reagan mantle? >> it's something that he ought to consider.

i feel great compassion for governor romney right now because everybody on every television show is telling him what he ought to do and how he ought to do it. and at this point, my real advice to him would be turn off the tv, don't be watching it in the hotel room. you don't have to be doing that. all of his people, they have the speech. i'm sure it's good. leave it alone, and go out to lunch. come back, take a look. relax. [laughter] >> i bet he takes that advice, to. the last word on ann romney. would you have advice for her? >> oh, would i advice-- more advice. let me it will you what i think she will do. she has been married to mitt romney for i think 42 years, she lost him better than any other human being on the planet. and she loves him and she supports his quest for the presidency at a time of crisis. and well, she must admire him a

lot. maybe she will come out and tell us stories about why she not only admires him, but he is thoroughly admirable and you should admire him, too. stuart: excellent stuff. peggy noonen, what a pleasure to have you with us so frequently. thank you, peggy, see you soon. >> okay. stuart: 11 key states will decide the presidential election, and scott rasmussen is tracking the swing states every day. we'll have his latest read on the crucial swing state vote that will be new sharp at ten o'clock and according to the wall street journal, new york's attorney general is investigating energy drink companies over the marketing of the-- one of the ingredients in those drinks. pepsi, and monster beverage, they're included in the appropriate. lauren, any impact on those stocks this morning? >> yes, stuart, both stocks, monster beverage as well as pepsi, are down. the four hour energy that's the popular one these days and that's made by a company called living essentials. i can't believe it, i was reading the wall street journal

story, stuart, and a 9 billion dollars market of energy drinks, they're really, really popular right now and the attorney general here in new york wants to know are they good for you? give us more information, what are the ingredients, the essentials in them and we'll follow this one. pepsi just turned. stuart: the startling things, 9 billion dollars a year in energy drinks. the little bottles. five hour energy and they and other products like them 9 billion a year. >> i know people who stock up on these, always have them with them. the little red bottles. i never tried it. stuart: neither have i. >> they're popular. stuart: nor me. i figured it was caffeine. >> it's a b-12, supposed to be give you the energy. >> maybe we should try it. time is money, 30 seconds, what else we're watching for you this tuesday morning, chris christie will speak in prime time at the

convention tonight. before that he had some choice words for california. we'll tell you exactly what he had to say. wasteful government spending isn't limited to the gsa. we'll tell you about lavish conventions for the department of veterans affairs. and i saw 2016, obama's america, saw the movie yesterday afternoon and i have my review coming up and my take, that will be at the end of this program. and what do you think about everything you've seen thus far on "varney & company"? e-mail us, varney@foxbusiness.com. tuesday morning, seven early movers, the fda approved a once a day pill for hiv made by gilead sciences, critics think it's too expensive at more than $28,000 per year and the stock is up a little. and shell wants benefit manager wellpoint to oust the ceo. they want her out and the stock is up, i'm sorry, the stock is down i should say, get it on the

screen if we can. ap reporting that lexmark is is going to cut 1700 jobs and stop making ink jet printers, and lexmark is up a little bit. and better than expected profit at the closing maker, and the company raises outlook again. and they make calvin klein and tommy hilfiger, up 6%, wall street journal reports that boeing is adding a third line to the dreamliner assembly and that's down a little. denny's ink add deal to open ten new restaurants in chile. not much reaction to that. watch maker no varto, up more than xhekted and it's up 17%. movado. and if mitt romney markets himself at the convention, how should he do it. play up the family man angle like the keds did? we'll ask another one of our markets pros next. [ male announcer ] at scottrade,

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>> the stock market shows virtually no change at all. so far in tuesday morning, we are 15 minutes into the trading session. we're down one point and that's on a 13,100 index, i call that no change. check the price of oil. up, but not much. $95 a barrel, a gain of 42 cents. and gas prices up, they just keep going up. another gain overnight and less than 1 cent and we're still at 3.75 for regular, but diesel goes up as well. 4.04 a gallon as we speak. back to the election, here is the question we posed to the wall street journal's peggy noonan. should romney focus on the issues. and laura reece is in atlanta and she knows marketing better than anybody. all right, and the big speech comes up thursday night. and if governor romney is going

to market himself, how should he do it? >> well, he doesn't want to necessari necessarily focus on the family man. he wants to focus not on the government man, but the businessman and the businessman is what we need to bring america around. listen obama is going to talk about moving forward and romney has to say do we want to move forward with more deficits, more taxes, more decline on do we want to reform? i think that's going to be a very, very important word. we need to reform the system and reform with government and we need to rebuild this country to the promises of the founder fathers. stuart: hold on a second, a lot of people don't know mitt romney. i mean, something like 30% of people don't know him, have no connection to the man. surely, he should get out it and introduce himself and his family to america. 's got five sons, a wonderful wife, she's speaking tonight. why not go with the personal side, the man, mitt romney, the

family man. the guy who you want to see on your tv set every day for the next four years as president romney. why not go that way? >> well, it's not so much, you can't say that. he's very uncomfortable talking about himself. we've seen that over the years. what he needs to do is hey, they're going to make a movie and that's going to tell the story and ann tonight she's going to be very important and she's going to sell the family man part of this equation and important speeches from christie from new jersey and he's going to talk about how successful reform happened in other states with republican leadership. mitt romney can't talk about himself. people need to see mitt romney in that speech and i think the advice of noonen, that he needs to relax and needs to deliver it and as his president, people are going to see are people going to like or connect with him. it's not about him talking about him, but allowing people to see him. is he comfortable and confident,

the kind of leader we want to see the country have. stuart: so you've watched him try to speak about himself. you think it doesn't work, really? >> well, no, i think he's just uncomfortable and people have talked about him being somewhat robotic, he's not natural the way that obama is as a speaker, and that's important as a vp pick, ryan is fantastic. he is such a great person and you see him speaking a couple of times and you feel like you know him. he's very relaxed and genuine and brings a very positive, young and energetic presence on the ticket and romney has to go out and do the best he can. the most important thing about romney, well, actually two things, one, he's not obama. and that's going to be the most important selling point. he is not obama. if you want to move forward with obama's plan go vote for him. if you want to reform this country, vote for me. i'm the guy, i know how to run a business and i'm going to bring this country around. he's got to sell that message in

a genuine way. if he can do that he might just have a chance. >> very interesting, we've got all points of view on "varney & company," yours is the latest. very interesting. thank you. >> thank you. stuart: 9:49 almost, time for your gold report. are where are we this morning? we've been hovering around the 1660 level port past week and we're still there. 1667. we're down seven bucks and change per ounce thus far today. next, an outrageous story out of, where else? the formerly golden state of california. a local official falsely accused of drunk driving. wait until you hear why. much more on that story coming up next with lori rothman and political analyst brian from the investment bank kdw. and they're next. [ male announcer ] if you have to take care of legal matters. legalzoom has an easy and affordable option.

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>> boy, have we got a crazy story across california. the acting mayor there has been criticizing the police union and now the union is accused of trying to set him up for a phony drunk driving arrest. someone tipped the local police last week, claiming that the

mayor pro tem was driving drunk, cops went to his home and he passed the sobriety test. the tipster is identified as a former cop. the union is denying any responsibility. and brian, brian gardner, investment banker, welcome to the program. right off the bat. what do you think of that story? >> it has an air of desperation and it has the air of mafia-like tactics and i think it shows how down and dirty, if true, how down and dirty some of these fights are getting and how te desperate. it harkens back to a blizzard, and the snow removal workers not responding right away. the back and forth between public employee unions and governments are going to get tougher and tougher. stuart: lori? >> how dare that politician have the nerve to ask the police union official about the spending tactics, i mean, come on, you don't mess around and charge them with drunk driving, and risk ruining a person's credibility and career, that's

deplorable. stuart: that's the back drop you're talking about. the mayor asked about the police union and spending and its pensions. >> it's a fair question, in any political back drop. stuart: the union thought that's not quite right and then a former cop lays out this fake, totally fake tip on drunk driving. you're right, that could destroy a man. >> and playing dirty, not fair. and that, that police official with the union should be charged with corruption in my view. stuart: strong stuff, lori i. you're from southern california. >> and it's cosa mesa is a beautiful town and cosa mesa about as good as it gets. and this is a shameful story. stuart: and brian, that was a fine first appearance, by the way. stick around for the hour. and this election is about the swing states, now that and new at ten. we're' going to give you the numbers from the latest tracking

poll in the race of those 11 background states and also new at 10, is anyone fact checking president obama's claims about medicare? we have someone who listened to the big speech on the subject this weekend. lots of problems to be found there. we'll cover it next. our live. while energy development comes with some risk, north america's natural gas producers are committed to safely and responsibly providing generations of cleaner-burning energy for our country, drilling thousands of feet below fresh water sources within self-contained well systems. and, using state-of-the-art monitoring technologies, rigorous practices help ensure our operations are safe and clean for our communities and the environment. we're america's natural gas.

♪ >> the candidates know it.

the experts know it and you know it, the election is all about the 11 swing states. and we're about to get the latest poll numbers from the states that will decide the election. that's new at 10. stand by and here he comes any moment. check the big board, the dow is down 32 points and not much on a 13,000 index. here is our tuesday morning company and lori rothman is back and brian gardner is here and lauren simonetti on the floor of the new york stock exchange. lauren, first of all to you. and movado, they make watches and hit a high. and war is the stock and why is it up? >> we should have listened to charles payne yesterday. buy movado, you would be gaining 15% today. and earlier it was up as much as 20% and profits for the watch maker up. 83% and raised the full numbers. they license popular brands

including juicy couture and even tommy hilfiger. stuart: i want to break nlate consumer confidence numbers, later for august, 60.6. that's down from 65. that was the reading in jump. it was expected to get a reading of 66. let's not get too involved in the minuscule numbers here, suffice it to say that that was not a good confident report. not much impact on the market though. we're still down 30, 35 points after that weak confidence report. and let's get back to the rnc. kicking into high gear today. ann romney and governor chris christie, they will take the stage tonight. in fact, all the focus seems to be around other people speaking at the convention and not so much on mitt romney. and here is the question, is romney being overshadowed? rich edson is in tampa, what do you say, rich? >> well, stuart, if you are be overshadowed, i think you're right, you might as well as be overshadowed by people talking nicely about you.

tomorrow, is paul ryan the vice-presidential candidate and romney doesn't speak until thursday and i guess when you see a big headline act, the man you see doesn't come out first. and we'll see governor he will be here to hear people speaking nicely. stuart: and is there some speculation that chris christie is asked to tone it down. the hurricane is going to hit. and maybe some people said maybe he should tone it down. that's not going to happen, do you? >> i think when you're booking chris christie, you're booking him to be fiery. and there's no sense if you're going to ask him to be less chris christie. >> thank you, short and to the point. and he's made his mark blasting california and blasting jerry brown. wait until you hear what he said about the california delegation, we'll play it for you later this hour and we have elizabeth to

react. running for california senate seat against diane feinstein. does california have any roll in the rnc? 10:25 she'll join us, right to the big story, watching what is called tropical storm isaac on the verge of becoming a category 1 hurricane. look how big this thing is. you know, it almosts fills the entire gulf of mexico. here is the latest track of the storm. and president obama will be making a statement about the storm in just a few moments and when he comes out to speak we will take you to him live. gulf oil and gas platforms evacuated in the gulf, and virtually no change actually, but gas prices they begin to go up. and the national average for a gallon of regular at 3.75. and diesel up to 4.04. just for a second. look at the spikes in the gulf cities over the past week. as the hurricane, well, the tropical storm, as it approached, new orleans went up 11 cents a gallon and biloxi 10

cents and mobile 10 cents. tampa 10 cents. it doesn't look like those cities will have cheaper gas anytime soon as the tropical storm barrels through. we got the latest from the scott rasmussen polling on the swing states. and it's 47-44 president obama against mitt romney. and 47-44. that's a 3 point advantage to the president, yesterday, it was a 4 point advantage to the president. and we're going to keep you up-to-date on the swing state tracking poll daily because that's where the election is going to be decided. and oh, i'm waiting for president obama, because he is about to come out and start speaking on the storm. he's going to be a few minutes late. and i want to talk about this, the swing states. i'm laying it on thick here that the swing states decide the election. am i going too far, too strong, brian? >> no, it's been, that's been the the case. stuart: it is? >> that's the case for the last

several election cycles and i think that's the case this time. the only way it's wrong is that sometime in october with the debates, that the electorate just turns off the incumbent and decided goes with the challenger. at that point it goes beyond, but until that happens i think you're right, it's the battle ground states. stuart: i don't believe these. i don't believe these polls entirely. >> especially today. you've got the convention fever going on and i think, look at scott rasmussen's polls after the oon vengs, and you see the parties convention bump, if you will, toward the latter part of the convention and see what happens next week after the dnc and see how it sorts out. stuart: that's a fair point. what i'm getting is the enthusiasm gap. i keep saying it, i don't know many people, i don't know anybody who is jumping up and down saying, we really need four more years of president obama. >> and a change from last time around. stuart: yes, absoluteliwy.

are the president's constituents, the group he's assembled for him and get him to be the president, are we going to see those constituents turnout the same as last yearments no way. >> and the unions, fascinating, or wall street for that matter. stuart: and younger people. >> younger people, they're out of jobs and saddled with a tremendous level of debt and. if you don't think there's a job on the horizon why are you going to support the president going into this. i don't see youth vote turning out nearly the numbers, i think it goes back the historical norm. stuart: got it. president obama used his weekend radio address to defend his plan for medicare reform and here is the president's first play. >> we've extended the life of medicare almost a decade. >> we have extended the life of medicare almost a decade. you know this stuff, what's your

reaction to the president's first statement. >> now the way they've extended the life of medicare, first of all, we're challenging that statement, is by cutting payments to doctors and hospitals so far that eventually 15% and ultimately 40% of us are going to go bankrupt or stop seeing medicare patients. this is not a solution, this is not the way to protect this program. stuart: okay, i'm going to go through the president's statement, one issue by one issue, here is the next one, the next claim by the president, he says the plan will save money. listen to this for a second. >> i propose reforms that will save medicare money by getting rid of wasteful spending in the health care system and reining in insurance companies. reforms that won't touch your guaranteed medicare benefits, not by a single dime. >> all right. grace, you've touched on this already, go into some detail for me. >> what do you say, they are he' not touching medicare benefits? but once again, what they're doing is cutting payments to

doctorsen and hospitals, to a point at that they won't be able to see patients and they're putting the thumb screws in with this independent payment advisory board, then it's going to cut medicare payments even further. i mean, what are doctors going to see, do, when they can't even pay their staff. pay their rent. and it's, by the payments that they're getting for medicare, it's just not going to work and this, this program does nothing, the president's obamacare solutions do nothing to change the free for service program that the great majority of seniors are going be to be on, which is wasteful and we've got to move away to that, to a system that allows more coordinated care through plans that seniors are choosing as they're doing now in medicare advantage, but that's being decimated by obamacare as well. >> okay, number three, here we go. the last solid point made by the president in his address. he continued to attack the

republicans plan listen to this. >> republican in congress have put forward a very different plan. they want to turn medicare into a voucher program. that means instead of being guaranteed medicare, seniors would get a voucher to buy insurance, but it wouldn't keep up with costs, as a result one plan would force seniors to pay an extra 6400 a year for the same berths they get right now and effectively end medicare as we know it. >> and lots of claims in that statement. go for it. >> the way that we're going to end medicare as we know it is for the program to go bankrupt. which is the track that it's on now. and not only because the president is taking 716 billion dollars out of the program, seeing cuts to medicare physicians and hospital statements, but because he's spending that money twice. spending it also to create this massive new entitlement program,

obamacare's exchange subsidies, and doing nothing to make the program more sound and he's completely misrepresenting the ryan plan which does allow seniors, tomorrow's seniors, today's seniors are protected, tomorrow's seniors to be able to pick either traditional medicare or a new plan. stuart: i've got to break away for a second. the president is about to address the nation on the issue of the storm. let's listen in. >> i just got an update from secretary napolitano, administrator fewgate, the head of fema and dr. rick knabb the hurricane center, on preparations underway in the gulf. this storm isn't scheduled to make landfall until later today, but at my direction, fema has been on the ground for over a week, working with state and local officials in areas that could be affected, from puerto

rico and the u.s. virgin islands to florida and more recently louisiana, alabama and mississippi. and yesterday, i approved a disaster declaration for the state of louisiana, so they can get the help that they need right away, particularly around some of the evacuations that are taking place. and right now, we're already have response teams and supplies ready to help communities in the expected path of the storm. as we prepare for isaac to hit, i want to encourage all residents of the gulf coast to listen to your local officials and follow their directions, including if they tell you to evacuate. we're dealing with a big storm and there could be significant flooding and other damage across a large area. now is not the time to tempt fate. now is not the time to dismiss official warnings. you need to take this seriously. and finally, i want to thank everyone who has been working

around the clock to get ready for isaac. the hardest work of course is still ahead and as president i'll continue to make sure that the federal government is doing everything possible to help the american people to prepare for and recover from this dangerous storm. and as we get additional updates from the hurricane center, as well as from fema in terms of activities on the ground, we'll be providing continuous updates both at the local and the national level. thank you. >> so the president was asked questions on the way out there. he did not answer of them. it was a very brief statement about the storm. two points if i may, there is some -- there is some difficulty here in the provision of resources to the state of louisiana. the president says federal resources will be made available through a disaster declaration, the governor of louisiana, bobby

jindal, he says that's not enough. he wants reimbursement for the state's expenses so there's some conflict here about how to deal with this storm in the state of louisiana, between the feds and the state authorities. second point, the president said if you're told to evacuate, evacuate, get out. that's the best thing to do. that was the president just moments ago. any other comments from anybody, lori. >> and the president, just get out. told to evacuate, listen to officials and get out. and governor jindal, i'm impressed how he's handingling it, the katrina experience. and unbelievable how close to that dass sister' might turn out to be the star of the republican party without attending the convention because of what's going on with isaac and the crisis. >> and louisiana it's not just katrina, it's bp as well. >> and all oil platforms. >> and in some ways, it's not just a political issue, it's an economic state budget issue, because the state budget has

been under assault in louisiana more so than in other places in the country and i think he's smart to get out in front of this and ask for additional resources from the federal government. >> and what do the fema coffers loose like now? they have to be somewhat depleted and i feel we haven't discussed fema and investigated that angle. we haven't had a natural disaster by mother nature to be exact in quite a while. stuart: i must say the president resisted the temptation no doubt there suggesting this is not the time to cut back on government spending and services and he resisted that temptation, he did not say it. and the surprise movie hit of the week is "2016" and next, an honest review from someone who's seen it, someone who actually reviews movies for a living. >> obama has a dream, a dream from his father, that the sins of colonialism be set right and america be down size $.

sized.

>> isaac is expected to strengthen to hurricane force today and make landfall maybe tomorrow, hitting new orleans. and tonight, ann romney and chris christie will speak at the republican convention in tampa. and right now the dow industrials pretty quiet thus

far and individual stocks are moving higher. it's earned more than expected not because of the u.s. and not because of europe, but because of emerging markets. a quarter of the catch up sales come from those markets and the stock is up. and lexmark, the printer maker will stop making ink jet printers and cutting 1700 jobs. tough news, but they think it's good for the company. the stock is up 15%. we'll come back in 90 seconds talk about the success of the movie, "2016" obama's america.

# >> my father's pains and my brother's, and their struggle, my birthright. >> obama has a dream, a dream from his father, that the sins of colonialism be set right and america be downsized. >> that's a clip from 2016, a surprise success at the box office. "2016 obama's america", it made 5,799 per screen and that's a lot. i've finally seen it, a pretty good movie, even if it's the most successful documentary of this year, i don't think it's ever going to win an oscar, washington examiner movie critic kelly torrent, i'm right, it's

not going to win an oscar, not like al gore's that won two oscars. >> it's already, just opened and already the top grossing conservative documentary of all time. but, let's face if, that's a little like being the smartest stripper in the club or the most economic literate reporter at the new york times. >> whoa, whoa, very good, kelly. now, you saw it, you saw it? >> yes, i did. stuart: i saw it, i labeled it a conservative polemic, and i think it beats you over the head with a conservative message. >> i agree. at first it starts out not that way. and the director really personalize s it a bit and talk about his story. and at first you think it's about him. and takes a while to get to the

obama stuff. once he gets there, it seems like it's preaching to the converted. but here is something that surprised me. it's doing well in the south and may not be a surprise, but also doing well in colorado which of course is one of the big swing states that we're all looking to this november. >> what was the audience reaction in the theater that you were in. >> to be honest, i'm a film critic and i did not see it in the theater. i'm lucky and got it on the screen, but i talked to friends who did go to see it and the reaction is big. and this movie, whether or not it's good or not and i think i didn't like it as much as you did, but it's very well made, i'll say that, cost 2 1/2 million to make, spending 6 million on marketing and already made their money back and shows there's a real hunger out there for well-made movies from a different perspective. you know, we have seen other conservative documentaries haven't done well. they didn't put the money in and production values in. this is a movie that, really is trying to be a well made movie

not just polemic, reenactsments of obama's younger years and people are flocking even though it's not that great of a film, shows there's a hunger there and great money making opportunity for conservative film makers or even those who aren't, but are interested in offering different perspectives than what the typical documentary had. >> if you went to see the movie and you're not politically aligned, not one side or the other, down the middle. do you think it would change your mind one way or the other? >> you know, that's a very good question and hard for me to answer something like that, since i am so politically, you know, here in the beltway we live and breathe politics, but i think it has a chance to. i agree with you, a bit heavy handed, but when he does-- one thing that's interesting, he quotes a lot from obama's audio book version of dreams of my father.

so you hear a lot of obama's own words and to me, that's really more damning than anything anybody else can say. you know, he's got the guy's own words right there. and i think that he's trying to speak, he's not trying to speak to just those that agree with them because he talks to a lot of people who were supporters of obama in 2008 and why they've changed their mind. and i think he's trying to get to there. now, whether he will, i don't know. and here is an interesting thing, he said he was inspired by michael moore's fahrenheit 911 released just before the 2004 election of course, now, that documentary did not affect the election at all. but, it made 119 million dollars and is the top grossing documentary of all time so michael moore, he may have been a little sad november of 2004, but he was kind of laughing all the way to the bank. stuart: pretty good money for a socialist. yeah, kelly jane torrent, thank you for being with us.

>> thanks, stuart. stuart: by the way my take on the end of this film around 10:55 this morning. and news on gambling, a plan to expand gambling in illinois, including a land based casino in chicago, he's rejected it, it's kind of a slap in the face on rahm emanuel who wanted the casino and the governor said he vetoed the bill because it locked regulatory oversight. and chris christie takes center stage the at the rnc and he's made a splash, and jerry brown. and is there any hope for republicans in california, what would she think of this? >> in california, made a bad choice. by going with an old retread, who let me tell you this, i cannot believe you people jerry brown over meg whitman.

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that was peggy newman in our last hour, giving the romney campaign good advice about going forward. tune in sharp in the morning at 9:20 eastern please, varney & company. chris christie gets his prime-time speaking spot at the republican convention tonight. but before that he had this to say. >> california made a bad choice by going with an old retread who let me tell you this, i cannot believe you people elected jerry brown over meg whitman. jerry brown? jerry brown? i mean he won the new jersey presidential primary over jimmy carter when i was 14 years old. stuart: joining us now is a republican running for the senate in california. elizabeth, welcome to the program. always good to see you. >> hi, stuart. thank you very much for having me on. stuart: now we just had chris christie there lecturing you people, you people from california. you've got a huge delegation at

the tampa convention. >> we do. i believe we have the largest delegation actually. stuart: are you simply there as an example of whatnot to do? >> oh, not me. i'm here as an example of what we need to do. you know, stuart the rest of governor christie's remarks were don't give up on your state california. never quit working. look what we were able to accomplish in new jersey. so i actually think that governor christie's remarks to the california delegation were unbelievably uplifting. and that's what i'm all about. i'm about bringing some change to california and i think we're finally ready. stuart: you're going up against dianne feinstein i believe. that's your opponent in 70 -- 70 days' time. >> yes. stuart: how do you feel chris christie calling the governor of your state an old retread? >> we have been bringing up the same failed policies and

politicians now for almost half a century. dianne feinstein has been in office for almost half a century stuart. it is time for fresh blood, new energy, and certainly a different perspective. stuart: are you going to go out there into this campaign and say look, we're not looking for a federal bailout. what we want is change within california. >> absolutely. stuart: can you get elected on that kind of message, look, we don't want a bailout, we don't want obama's money. can you get elected like that? >> absolutely. governor christie said that's exactly what happened in new jersey. the governor was able to negotiate with the teachers unions and they are now on their way back. we need to do that in california certainly. but from the u.s. senate there's so much i can do to help california to bring businesses back to california, and stuart, californians are waking up, 73% of californians now recognize we

are on the wrong track. since i have last seen you, dianne feinstein has dropped three points. she's polling in the mid 40s with over 20% undecided. californians are looking for an al turn tif -- alternative, they are looking for a new answer. >> is california on the wrong track or the country, which sit? -- which is it? >> california is on the wrong track. we're waking up. stuart: we've been praying for that for a couple of years. we are glad to hear it. >> elizabeth, we wish you well. we thank you. we hope you can join us again before the election. thank you very much ma'am. >> thank you very much. stuart: remember the former head of the gsa jeff neely. now congressman issa is looking into spending at another agency. among the issues this video parody. >> and make no mistake about it,

today you are embarking on a major campaign.

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hour. they close the casinos, you know it is serious. sorry to be a little facetious there. joining the company from chicago is larry levin, with with trading advantage. larry, there was quite a stir this morning when it was announced that the big central banker of europe is not coming to america this weekend at the jackson hole meeting of central bankers. does this mean anything at all? >> well, to me it's another sign unfortunately stuart of the governments out there whether it's the u.s. or the ecb kind of goosing the market, how are they doing that? they are going to announce, certainly talk about qe 3 at this meeting at jackson hole. and draghi is not going to be there. to me it is kind of a trick, if you ask me, to be able to get, you know, kind of two talks of qe and then be able to goose that market up, and i believe that's what they are doing. stuart: is there any doubt in your mind that at some point in the relatively near future mario

draghi will print up a storm of euros and ben bernanke may well do the same with dollars? >> he says the reason he's not going is he has a full schedule. maybe that's what he's doing, maybe he gets the full press fired up. >> excellent stuff, larry levin, we appreciate you being us. i'm sure you all remember former head of gsa, literally became the poster boy for government waste. he was in vegas for a taxpayer when this picture emerged. -- he was in vegas that was taxpayer-funded when this picture emerged. >> and make no mistake about it, today you are embarking on a

major campaign. stuart: joining us now is with the washington examiner, he's the man that brought this to light. welcome to the program. >> good morning, stuart, thanks for having me on. stuart: i've got a suspicion that the general public is getting pretty tired of this kind of thing. and you? >> well, you know, even if it wasn't such a cheesy parody, $52,000 for that film is a bit much, and when you think about $90,000 just for coffee breaks, somebody's not paying attention, not minding the store at the veterans administration. stuart: you know, mark, we got an e-mail a moment ago from an agent orange victim. he does not like the veterans administration paying out this kind of money for that kind of parody. but to a larger point, do you think this kind of wasteful spending, this nonsense, do you think it's more widespread than we imagine? >> oh, absolutely. as a matter of fact, my watchdog team at the washington examiner several weeks ago decided that we would try to figure out

exactly how much the government, not just the veterans administration, spends on these conferences each year. and it's become very clear to us, and we're far from being finished with the analysis yet, but it's pretty clear the government doesn't know how much it spends every year just on these conferences. we found about 425 million dollars across about half of the agencies that we've looked at so far. so it's an incredible amount of money to just come together, drink coffee and watch parody videos and talk about government. stuart: i get the impression that a lot of people, they wouldn't mind spending or paying a bit more in taxes if they thought that it went to help people, directly, veterans, for example, poor people, if you pay more, and you really help people, there's a lot of people who say okay i'm in for that. but when you bring us these examples of this kind of spending, that turns around entire -- i'm not paying another dime for that. >> absolutely.

stuart: that's a strong feeling in america at the moment. >> oh, absolutely. i think that's one of the strongest feelings, and if you look in the cross tabs for poll after poll after poll for many years now, people understand that government is not responsible about how it spends our tax dollars. and it's not unreasonable for people to say to people here in washington, hey, guys, pay attention. we have to work hard for these tax dollars. spend it right. stuart: you know, mark, i think you have made a big impact, in the washington examiner bringing this kind of thing to light. we thank you for bringing to it light on this program. we appreciate it mark. >> my pleasure. stuart: i'm going to pose the same question to you, i get the impression that a lot of people would say okay, i will pay more in taxes if it goes directly to help people in need but not like this. >> certainly, you know, i think there's a constituency out there that agrees with that, but they want the services to be vital, and anything that is frivolous, they get very frustrated, and i hi there's a deep sense of

cynicism that government is only doing vital services and they are not engaging in the frivolous. it begs the question, if they are producing this, what are the man hours going forward? so you have the cost for actually producing, but why is the government employing people to actually do this? obviously the government is overstaffed. if any private entity in this kind of environment were to pay employees to do this kind of thing, shareholders would be up in arms wondering why they weren't get a better turn on their dollar. stuart: isn't that the nature of government, it's incredibly bureaucratic, always has been and will be. you can't strip it down. >> this is the problem with the government as large as it is today and the overspending and the wasteful spending. it just leads to corruption and again wasteful spending, and that's why to your point stua stuart -- taxpayers are outraged >> this is when shareholders stepped in, shareholders being taxpayers in this case stepped in and corrected management.

that's what the election is about. >> apple sues samsung and wins big. does this scare off competitors in other businesses? do the big guys with the big lawyers always win? more on that. ople with a machin. what ? customers didn't like it. so why do banks do it ? hello ? hello ?! if youbank doesn't let you talk to a real perso24/7, you need an ally. hello ? ally bank. no nonsense. just people sense.

stuart: it could make landfall tomorrow hitting new orleans. that will be exactly 7 years to the day after hurricane katrina slammed the city. it could eventually bring some much-needed rain to the midwest. now that is one possible minor bright spot there. look at the price of oil, it's up 70 cents a barrel. drilling platforms of the gulf of mexico has been evacuated. refineries in texas and louisiana shut down. that means less gas on the market in the short-term, could lead to a spike, up a half penny. national average overnight at $3.75. dow industrials are up 10 points, that's it. we are back in 90 seconds, will the apple patent ruling have a chilling effect on smaller businesses? the question is do the big guys with the lawyers always win? no. why? apparently my debit card is. what? i know. don't worry, we have cancelled your old card. great. thank you. in addition to us monitoring your accounts for unusual activity, you could also set up free account alerts. okay.

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stuart: apple's patent victory over samsung could cause a chilling effect in the smart phone industry. now apple is asking the court to block the sale of 8 samsung phones and tablets in the u.s. here's the question, will apple's court victory scare off competition for good? former investment banker carol roth is in chicago. the bigger issue carol is look these are gigantic corporations with thousands, literally thousands of very high-priced lawyers. they can swamp anybody in court, regardless of the merits of this case, the moral of the story seems to be the big guy with the biggest lawyers wins.

>> i don't think so, stuart. you have to remember that apple wasn't always big bad apple. a couple of decades ago they were writing apple's obituary, they were under $3 a share. what the patent does is it protects the little guy. it says if you invest in innovation, if you risk your time and capital, that you will be protected from somebody knocking you off. in this case it happened to be a big guy. but the same thing can apply for the little guy. i think this is a victory for innovation for entrepreneurs and for small business. stuart: does that patent protection extend to the shape of the tablet, i think the court ruled that yes it does? >> i think when you're talking about something that deals with the user interface and the user experience, this is something that was so innovative that they felt that yes, this was something that qualified for a design patent, not every type of design is going to qualify, but if you put your time into something that is so unique and so innovative, you should be

protected on that. stuart: samsung says that ruling is bad news for american consumers. and, you know, you can see the relevance of that comment because that pinch and zoom, the touch-screen, you pinch it, you zoom it out, i mean it is very convenient. now you can't have that on a samsung phone sold in america. that's a negative for the consumer, isn't it? >> if we didn't have the protection to begin with, we didn't have the pinch and zoom feature. we probably wouldn't even have the iphone. we might still be communicating by carrier pigeons or two cans with a string in between. the point is having that protection allowed the pinch and zoom feature to be inno investigative because -- innovative because the company was willing to put the capital to do that. samsung needs to do the next new feature, don't copy, do the next best innovation. that's the heart of the matter. the consumer doesn't have choice for that particular feature but

i bet there will be another great feature soon. stuart: i'm trying really hard with you, carol, but i'm getting nowhere. i'm going to bring in brian. >> i'm siding with carol on this, it is a story of innovation. if it's not technology, it is pharmaceuticals. you want to be able to protect the innovation of the inventor and for pharma companies to go out and find -- instead of copying what's already out there, but to find the new innovation on a new drug, a new treatment, i think that's where policy should be focused, and i think that ruling is consistent with that. stuart: was that your first appearance on varney & company? >> it was. stuart: but not the last. carol, i'm sure we will see you again. try hard to agree with me sometimes. carol roth -- >> i promise, stuart. stuart: it's a deal, see you later, thank you very much. i went to see 2016. i will have my take on the movie

and the crowd that saw it with me. next. release me! you should eat something that's good for you before you go outside. never! it's a new fiber one chewy bar. chocolatey and delicious. mmm. [ male announcer ] new fiber one chewy bars. great taste kids love plus calcium and fiber kids need. legalzoom has an easy and affordable option. you get quality services on your terms, with total customer support, backed by a 100% satisfaction guarantee. so go to legalzoom.com today and see for yourself.

stuart: all right. as promised, i went to see the movie 2016 yesterday. here's my take: it's a little heavy-handed. this is not a subtle movie.

it's a sharp-edged blast targeted right at president obama, who he really is and what he intends to do with america, if he gets a second term. that's what this movie is all about. the premise is this, that barack obama's parents, professors, his adolescent mentor, all of his friends were all extreme leftists. they shaped his world view. so america's current president is at heart an anti-american socialist who wants to diminish america's power and position in the world. that's pretty strong stuff. by the end of a second term, that would be 2016, america would be crippled with debt, deliberately. iran would have a bomb. and the world would see a massive transfer of wealth and power away from the united states. look, there's a degree of stretch here. does the movie present real evidence that a socialist background means a deliberate and secret shift to a socialist future for america engineered by the president himself? it was as i say just a little

heavy-handed. there was applause from the 50 people in the theater with me yesterday when it was all over. most of them applauded. they seemed to like it. i suspect that conservatives will love it. people in the middle will be asking a lot of pointed questions about our president, a lot of food for thought in this movie. the left will hate it. go see it for yourself. one last thought, a movie as provocative as this thrown into the heat of a very hard-fought election will have impact. and it's not a plus for president obama. now, you've not seen it. >> no. stuart: you've heard me talk about it. what do you think? >> right, forget the entertaining value of it, from your description and others, what it presents if it's portending the future, there's a huge argument, i mean, just look at the policies and tax proposals the administration is coming up, it is very concerning. this election is a referendum on what you see, on what you want the role of your government to

be. stuart: sorry we're out of time, brian. highlight reel is next. [ female announcer ] need help keeping your digestive balance?

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stuart: the highlight reel, roll it please. here's the question, is romney being overshadowed? >> you might as well be overshadowed by people who are talking nicely about you. >> governor christie's remarks to the california delegation were unbelievably uplifting. >> who let me tell you this i cannot believe you people elected jerry brown over meg whitman. >> i think when you book christie, you are booking him to be fiery, and there's no sense of asking him to be less of christie. >> she won the new jersey presidential primary over jimmy carter -- he won the new jersey presidential primary over jimmy carter when i was 14 years. stuart: more of that tonight. here's dagen. dagen: i can't wait for that tonight. i hope he is fired up. stuart thank you very much. we are just seconds away from