♪ ♪ imus in the morning >> romney a chance to change the conversation? top of the news, the truth about our ambassador's murder and the reality of redistribution. good morning, everyone. secretary of state hillary clinton held a closed door top level meeting. how was our ambassador killed? what happened?

fox quotes the cia, al qaeda planned it and did it. the obama team sticks to its theme, the video sparked it. opportunity for romney? and now, the real face of redistribution, income flat or down in 49 states, but seven of the richest counties and suburbs of d.c. that's where they are, suburbs of d.c., home to government workers. we the people worse off, government living it up. opportunity for romney? one more. nor bad jobs report. opportunity for romney. "varney & company" is about to begin an all-star lineup for you. senator rand paul, dan henninger, arthur brooks. here we go. cial opsission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect.

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detainee was involved. goes against what susan rice, u.s. ambassador to the united nations told fox news sunday. >> what happened initially was that it was a spontaneous reaction to what had just transpired in cairo as a consequence of the video, that people gathered outside the embassy and then it grew very violent. those with extremist ties joined the frey and came with heavy weapons which unfortunately are quite common in post revolutionary libya and that then spun out of control. stuart: all right, again, the question, opportunity for romney? today secretary of state hillary clinton will brief members of congress about the unrest in the middle east and north africa and we'll get our own assessment from ambassador john bolten the top of the next hour and have senator rand paul. he wants to cut off all aid to these countries and he will be joining us as well. go to our facebook page right now. should we be sending aid to libya and egypt?

rand paul says no, what do you say? will mitt romney change the conversation today away from his 47% comment? weigh in, we'll reset the comments on the hour in the next hour. reuters suggesting that facebook's second in command could be headed to washington for a top economic job if president obama wins a second term. any reaction to that in facebook shares pre-market? well, the shares are to the down side slightly after a great run for september. almost 30% for the month of september, but the second in command, the company that's growing and fighting an uphill battle, not good news. stuart: 23. seven of the ten richest counties in america are in the washington d.c. metro area. are you surprised? here is arthur brooks, head of the american enterprise institute. next, we're going to ask him, is this how pre distribution-- redistribution in america looks like today. when he said this. >> let's facilitate some

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>> all right. about a half minute to the opening bell. the start of trading, i've got the number for you in the news background. another poor weak reading on the jobs market. the latest jobless claims

number. 382,000, far too high for this stage of the so-called recovery. that means that layoffs are still very strong and hiring is not strong. so, there's a bad number for you right from the get-go and we're expecting the dow to drop 30, 40 points, maybe more as the trading day starts. also in the news background, china, a stringing of manufacturing sector and all china does, basically, shrinking for the 11th month in a row. that's not good news either. trading is off and running and the opening trend, let's put it like that. the opening trend is down and expecting maybe 30, 40 points off in the first couple minutes of business. now our partners at the wall street journal announce that bank of america plans to cut 16,000 jobs by the end of this year and coming right up. the stock, please, nicole. >> the stock is now 1 1/2% and most of the banks are starting

with down arrows. and the 16,000 jobs that you're noting stuart, it is seen as a cost cutting initiative underway for the company and declining revenues and they're working on eliminating 30,000 jobs under this project called new bab. and 16,000 jobs, not done yet. stuart: right before christmas i might add. and dow industrials down 27. new major headlines that tell the income story in america. first off, the income of the typical u.s. family fell or was flat in 49 of the 50 states last year. according to the wall street journal and then there's this, seven of the ten richest counties in america, located in the d.c. metro area. three of them have a median income above $100,000. that's half the people made more and other half made less than 100,000, is this what the president means by redistribution? and joining the company from

washington is arthur brooks, he runs the american enterprise institute. arthur, welcome back. this, i find this-- >> how are you? >> i'm well. i've got a private sector job. it seems to me that this is the ugly face of redistribution, yet, the people-- we the people are getting poorer, but the people who run the government right there in d.c., they're doing pretty well. >> yeah, you know, i live in that company town in one of those counties that you mentioned and let me tell you, there are a lot of derivative industries not just people who work for government, but people who work for lobbying organizations and they're doing fine and how corporate bureaucracy, sort of stated bureaucracy masquerading as capitalism works, it's based on three large institutions, big government, big corporations and big unions, if that he is what we want, that's what we're getting. my guess is that most americans don't like that so much.

stuart: i don't think they do, but look at the polls. i'm not so sure about that. look, will et-- let me move on. as we've got the big government, big corporations, big unions, we're running up the debt something awful. the other night on letterman the president said he's not concerned about 16 trillion dollars worth of debt. what's your response to that? >> my response to that is that at some point we're going to have to recognize that standard keynesian economics, which has been embraced by this president and this administration, simply isn't working, in point of fact hasn't worked for a long time. the keynesians are never worried about debt, we get more debt and stimulates the economy and borrow from the future, but almost always an exercise in futility. you've talked about this and thought about this a lot and talked about it on the show. it's true. so of course he's not worried about debt. racking up a little bit of debt year after year after year and

we're going to have to pay it back, at least our children will. stuart: it's a shock to me, as someone who emigrated to united states many years ago, it's shocking, the bureaucracy is so thick, so huge, i'm astonished-- >> it's amazing, one of the things that's holding people back. you talk about the fact that the unemployment rah it is not markedly getting better, on the contrary it's getting worse, especially frustrated workers. those who are vulnerable, and something interesting in the past in america, unlike other countries, when people become chronically unemployed in the bottom half of the income distribution when they tend to turn towards our own ideas for creating businesses-- you see an explosion of low income entrepreneurship, after about nine months of the income-- out of the income stream and the employment force. it's not happening this time and

we have to ask ourselves, what's going on. and there is an answer, and the policy uncertainty to be sure, but more to the point, it's harder and harder to get out from behind this bureaucracy, to start a business and that's especially true, if somebody doesn't have a brother-in-law who is a consultant and somebody down the street isn't a lawyer or accountant. and poor people, 20%, can't open up a barbershop or a landscaping business, they would have which would have brought the economy back in past years. stuart: you've got it right, arthur brooks. come and see us again, please. we need your advice. >> i will, thank you, sir. stuart: dow jones industrials, as we expected down roughly, 30, 40 points in the early going. we're five minutes in. down 39. there you have it. staying on the markets, joining the company now is joe quinlan with u.s. trust. joe, always good to see you. >> good to be here. stuart: you usually go straight to the point and so shall i. i want to layout a couple of scenarios and see what happens to the stock market. obama wins a second term. >> the congress, the president

can work with congress, that's a big if, and vice versa. stuart: okay. obama wins a second term. regardless what happens in congress, the kind of administration he would run for another four years, the kind of economy he would keep going for another four more years, good or bad in the stocks? >> i think it could be good. if operations have confidence in the administration, and what they're going to do next. tell me what the president is going to do next, and we'll go from there. the problem is we don't know, don't have any good idea, congress or white house, about the corporate taxes and fiscal cliff. we need a road map. stuart: we know if president obama wins a second term, he would probably try to keep ben bernanke as the fed, who would definitely keep on churning out the money, right? >> well, that's ben's history and he anted up a couple weeks, couple days ago. i do think-- maybe the market, but the markets like that, stuart. back to your point with the former guest, there is going to be a day of rec koninreckoning.

bernanke stays, the markets like it, we could go higher. stuart: and romney wins, go, no hedging? >> no hedging, we get a near term lift in the market of course, republican, lower taxes, greater incentives, but then romney would have to deliver. can he deliver everything he's pledging and the people expects, markets expects. i think a boost in confidence, and business, capital investments, exports, so forth, but got to follow through. stuart: i'm reading between the lines here, you're saying wherever candidate, whichever next president restores confidence to the private sector, that, yes, expansion is coming. whichever guy does that, wins for the markets? >> i think that's right, stuart. as you look at corporations, they're trillions of dollars, 2 trillion or higher and-- i keep hearing this number. >> very large, the earnings for the has four years, and that's the key issue, so, confidence is what drives ceo's. stuart: has it not been deployed, as you say, invested

in new capital equipment. sitting some place and-- >> no, some of it's being deployed and i think a lot more would be deployed if we knew what to do and expect in future demand and what the rules are. >> that's a huge point. talking trillions in private sector stimulus. >> private sector being the key here. and at the capital, we have good growth. stuart: who is more likely to stimulate that confidence and that private sector stimulus? go. >> i would say initially president romney, quote unquote. but if president obama could reach across the aisle, that could be as well. stuart: and-- >> what it remains to be seen may not be used in television journalism. >> i'm not giving all, because it goes back to mr. bernanke, the most important man in washington. stuart: good to see you, sir. president obama made the campaign promise he would not raise your taxes if you make less than $250,000 a year. not one dime.

well, new at ten, new numbers out by the cbo, the congressional budget office that says he broke the promise and has to do with obama care. now, how millions of americans will face new taxes, yes, they will. that's coming up, the top of the hour. as we said earlier, reuters is suggesting that facebook's second in command, cheryl sandberg, could be headed to washington if the president wins a second term. nicole, where did facebook open? >> it's down this morning, down over 1 1/2% and you talk about second in command leaving a company at a crucial time and only went public on may 18th and since then, at $38 a share, they haven't recooped the losses yet. we will see, she has had, obviously, serious treasury back in 1996, 2001-- >> hold on right there. i'm told it's your birthday so we have some stocks to show you in honor of this great day. some of your favorite things,

okay? so, can we just put them up on the screen. what have we got for you. lululemon. look, starbucks, or lululemon, yoga pants people. and the national bank of greece. >> thank you, he wish they were all higher, but, yeah, thank you, i appreciate that. stuart: i'm sorry they're all in the red. we couldn't fix it otherwise, couldn't do it. and 19 again, that's terrific. and nicole, thank you very much indeed. we'll see you shortly. remember, we want to hear from you, send your e-mails right now, varney@foxbusiness.com we read them on the air. and bank of america will cut 16,000 jobs by the end of this year, right before christmas. the stock is down just a little. profit down, and the retailer bed bath & beyond, surprised, but it's down 5 bucks.

the glass maker made more money than expected, it's up 2 bucks. and railroad norfolk and southern, how it looks, disappointing, down goes the stock. aviation company, aar raised profit outlook for the year, that's usually good news, but not this time. down a fraction. >> adobe, the maker of the photo shop, the profit forecast not too bad, disappointing, actually. nonetheless, it's up. the office furniture maker, in one i know, steel case, profit more than doubled, how about that. the stock is up 5%. the dow is down 32. the unemployment rate for iraq and afghanistan veterans is well above the national average. why can't our troops fiend jobs after serving our country? frankly, i can't believe they're highly professional, very qualified veterans can't get a job. we're on that story in a moment. [ male announcer ] at scottrade,

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>> an ipo today and just started trading, it's truly, that's an internet real estate company and the ipo offering price was 17, now look at that, 22.55. 32% higher moments when it started actually trading. to the big board, we're trading, not a big move on a 13,500 index, i'm going to call it a flat open. now this, the opportunities for veterans returning from war is much higher than the national average. wouldn't you think that employers would be lining up to hire the well-trained

responsible veterans? apparently that's not the case. a new website called hero to hire, aims to connect employers and veterans and joining us now a brigadier general, jason evans. general, i honestly, i can't believe, having seen some of the people return highly professional, disciplined, qualified people, i can't believe that employers are not jumping in there to snap them up. tell me, sir. >> well, first of all, thank you for the opportunity. you know, we have answered the president's call to have the military career ready, the aefrm has redesigned its army transition assistance program to ensure that our soldiers are career ready and prepared for life after the army. >> hold on a second, general, they are. you've done a great job. are you telling me that employers are not snapping these people up? because, let me digress for a second. all through the war that we've been through, fox and other news

outlets have had people embedded with our armed forces overseas and they send back reports all the time. we've seen these people who are in the field. i've never seen such a highly qualified bunch in my life, they're disciplined, well-trained, they're fine people and you're telling me that of all the training you've given them. they come back to america and employers are not out there snapping them up. is that really the case, sir? >> i tell you, one of our initiatives, stuart, is to-- we've stood up the army transition outreach office to do just that, to increase the collaboration with those private industries that are interested in hiring our soldiers, and if they're curious about wanting to hire our soldiers, log on to heroes for hire and heroes for hire can do job matching and resume' building and connect our soldiers. we have soldiers that are disciplined, that have great work ethic and work well with teams, they can be led and most

of all, they lead. >> are employers lining up to do this? >> well, we've had a few. in fact, we have a summit going on-- >> not enough? >> well, that's exactly why i'm here. i'm here to make the army's case that we have career-ready soldiers and we will spend-- commanders spend a year preparing the soldiers to be ready and go through the department of labor, and employee work shops, build resume's and earn interview techniques and what we need now is to increase our collaboration with private industry and we want to have soldiers connected with jobs when they leave the army. stuart: we're glad to have you on the show, general. >> i appreciate the opportunity. stuart: good stuff, general. we're on your side, come on, you employers, get out there and get some hiring done. >> appreciate it, sir. stuart: all right, it's that time when we give our gold report. where are we, 1, 765 per ounce,

down just a little. we've been hovering over this. the last two weeks, the u.s. embassies under attack and what has the president been up to david letterman appearance, hollywood fundraisers, a celebrity magazine photo shoot and the president sitting with a pirate ship. and next, charles payne and they'll find this. [ male announcer ] let's say you need to take care of legal matters.

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last friday, the attacks on the middle east. the president was posing for a photo shoots. on tuesday he attended a high prize fund raiser at j. z. cac 40/42 in new york. the campaign have a good sense to cover up the $280,000 goal and champagne power. a bunch of other events he went to. do you think the president -- you think the president of the united states should be doing this when we are under attack in the middle east and the economy is not doing well? >> it is a great idea.

a fantastic thing to do. this is a president who does not have his priorities straight and has not been the entire time. stuart: his priority is reelection and that means going out among the people and -- we have a picture on the screen. not sure whether that was taken yesterday. he tweeted that picture. charles: i and stan wood you are saying. this is not unique behavior. we're talking about a president who had 100 rounds of golf in the last 3 years, fifty million people went on food stamps and nine million dropped out of the job market. [talking over each other] >> prioritized health care over the economy. we are facing the worst economy we have seen in years, decades and he focused on health care instead of jobs. stuart: you don't approve? >> i do not approve this message. stuart: more to come.

president obama's big campaign promise was you make $250,000 or less your taxes will not go up. your taxes are going up under obamacare mandate. how much people will be paying? we have numbers next. senator rand paul, ambassador john bolton on the latest out of the middle east. [ owner ] i need to expand

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stuart: new at 10:00 the president's campaign pledge your taxes won't go up a dime but those making 250 k go up a dime. six million americans can expect a new tax under obamacare. six million, weigh more than first estimated. they will be penalized for not having health insurance according to the nonpartisan congressional budget office and nearly 80% of those americans are in the so-called middle-class. a number of the supreme court upheld obamacare because it ruled this mandate was a tax. more coming up. i want to check the big board. the new 30 year fixed rate loan from freddie mac, 3.49%. keep the stock market picture

right up there because i have a series of snapshots on the economy. $3.49 is the 30-year fixed-rate mortgage rate according to freddie mac. the philly fed just reported on the manufacturing activity in parts of the northeastern areas. it shows a negative, it is a decline a little better than expected but nonetheless still down five months in a row. getting another snapshot as we speak. the index of leading economic indicators. and outlook for the future. how will we be doing in the future? coming up any moment. haven't got it for you yet. the philly fed reading down with fixed-rate little better than expected and the dow came back a lot. we redound 63 and now we are down 51 and the index of leading indicators down just 0.1%. that is a neutral report.

the market seems to like this moderately. we are down 48 points as opposed to 63 earlier. the latest snapshot on the economy. j.c. penney shares are lower. i want to know why. nicole: they are lower. you see the dow because ceo ron johnson has talked about it has been tough to continue to be tough times for the retailer overall and the company does not use promotions and such and the last major shopping event, back-to-school shopping isone. yesterday at 30 to 55 jumped on the whole issue of store within a store like disney within j.c. penney and that type of idea jump to 3255 yesterday only to see a sell-off after his comment. stuart: the ipo today, $17 a share. real-estate company still up.

nicole: it is doing well. over jenna lee 14 to 16 and to 17 and took off 31% to the upside in the real-estate world, real-estate listing. first ipo and a month and a great performer. stuart: happy birthday. thank you very much. more people are going to be hit with a penalty for not getting health insurance. here are the latest numbers from the nonpartisan congressional budget office. six million people will have to pay it in 2016 when it goes into full effect. that is 50% more than the cbo's previous estimate. the average penalty will be $1,200 a year and most of those people who have to pay it will be in america's middle-class. the supreme court calls this a tax even if the president doesn't. >> if your family earns less than $250,000 a year, 1/$4 million a year, you will

not see your taxes increased a single dime. i repeat, not one single dime. stuart: not one single dime. >> except for this. stuart: $1,200 a year. by 2016, six million will pay it. $1,200 a year. >> the mandate itself is somewhat of a tax. this is something you mandated to pay. not only is the penalty a tax cut that you are required to pay for something the entire act is a way to raise what people are paying. stuart: isn't it the irs that is going to check up to see if you have -- charles: an army of irs agents hired. that is outrageous because it focuses on taxes the thirty million people who aren't going to be paying who picks up for them? who picks up for the illegal aliens and indian tribes? twelve million people will get hardship waivers. what is the requirement for

that? you dig deeper into this thing and it is going to be falling on the shoulders of so few people. stuart: twelve million people get a waiver. charles: there will be thirty million without any insurance who don't have to pay the penalty/tax and according to the cbo report a i read through a few times there will be all kinds of waivers, hard ship waivers and things like that. who pays for that? where does that money come from? >> the tax pales in comparison with the destruction of wealth for the middle class that has happened over the past several years so as much as i am concerned arab the broken promise in regards to taxes perfect that the economy is terrible. people are turning money and the fed has destroyed the ability for people to earn any sort of deal on their money. more people putting more of their savings for retirement and having less to spend every single day. the wealth destruction is something that won't catch up because they are not benefiting. charles: more people given up on

the idea of saving for retirement and becoming 47% debate we had earlier in the week. stuart: we have the dour industrial average down 45 points. that is a loss. it came back 18 points following the news that broke at the top of the hour. modestly weak economic numbers, leading indicators and the belief that. we are down 44 points. we are learning the truth about what happened in libya last week. the attack on the u.s. consulate was a terrorist attack with direct links to al qaeda and a former gitmo detainee was involved. fox news confirming this and secretary of state hillary clinton will brief congress and senators on the latest developments in the middle east and north africa. that will be a closed-door meeting. the new information disputes what susan rice, u.s. ambassador to the united nations said on fox news sunday. >> what happened was a spontaneous reaction to what had

just transpired in cairo. as a consequence of the video people gathered outside the embassy and then it grew violent. those with extremist ties joined affray and came with heavy weapons which unfortunately are quite common in post revolutionary libya and that spun out of control. stuart: ambassador john bolton joins us. it doesn't seem like a white house position. it was not going to hold up longer. >> combine with intelligence about the attack on the embassy in libya but that was noted for the release of the mastermind of the original attack on the twin towers in 1993. the confirmation that al qaeda in north africa was involved in the assassination of our ambassador in benghazi is quite significant because it rips a hole in the administration argument that the war on terror is over. it is very much in force as we

can see. stuart: last time mitt romney said anything about this was placed appearance when he was responding to the semi apology the embassy of cairo put out. the response to what mitt romney said was from the media that this -- is this now a new opportunity for mitt romney to get into this issue? >> i think it is. this shows that our commander-in-chief not only is weak and indecisive but fundamentally misunderstands what is going on in the middle east and while people are focused on the economy the potential danger to the united states over the next four years is real. stuart: is it right for a challenger in a presidential election to go after the incumbent president on foreign policy six weeks to the election? >> absolutely. if you go back to 1944 and look at republican criticism of franklin roosevelt's handling of the war until then that is real criticism of a critical foreign policy.

remember the war in vietnam. everybody gets criticized except barack obama. is there a pattern? stuart: when you have new information what is happening right now in pakistan. >> looks like 30,000 demonstrators outside the embassy, pakistani military be personal the presidential guard have been called in to restore order. the police called in to fire shots. for those who remember not just a hostagetaking in tehran but the burning of our embassy in pakistan this is killing. stuart: a soldier was killed in that embassy back when. >> dozens almost suffocated when it burned and they almost couldn't escape. stuart: a parallel 1980-2012? ambassador john bolton on the spot. we appreciate it. since president obama took office the u.s. has given $6.4 billion in aid to egypt. $1.6 billion per year moseley to egypt's military. far less has gone to libya,

$200 million but senator rand paul wants to cut it off and he joins us from washington. welcome to the program. would you just cut it off and say that is it? we have had enough or would you put conditions on it? no more unless you do this? >> i am filibustering everything in washington in order to say that foreign aid shouldn't be contingent on certain restrictions. for example in libya they need to turn over the assassins. they need to say they can and will guard our embassy and protect our embassy from rioters. the same in egypt. we place restrictions on the aid and say you can get your age back in 90 days of the administration submits a report that says you are cooperating and turnover the assassins in libya and securing and protecting both embassies with regard to pakistan, we say you must do those things but you must release dr. shaquille, the doctor helped us get information

that helps us to get usama bin laden. we think pakistan and all these countries that receive our aid if they want to be our allies need to act like allies. stuart: the administration doesn't want this. the administration opposes the position you have taken in a filibuster you are running. what is their argument? >> their argument is we give more money. if pakistan is disrespecting america we give them more and say please don't disrespect to us but they have not raised a finger to try to free dr. afraidy. how did his name become known? who leaked his name and is that rhyme? i think it is a crime that has put him in danger but also endangered our intelligence around the world because who wants to help america and who wants to secretly helped america with information if we know you're going to be left out to dry and he has been tortured for a year and is in prison for the rest of his life. this isn't right and we should be taking a stand to get him

released and tell pakistan no more money unless you release him. stuart: i believe you are holding up legislation of all kinds. you are holding up ambassadorial nominations. you are not letting anything get done until a ruling on what you have to say. >> we have a real chance. there is a significant chance we will get a vote today. yesterday i spoke with democrat leadership and they said they are going to let me have a vote. my own party preventing me having a vote. i have convinced my own party and we have a vote later and business will proceed. until that time i am fighting this battle because when you talk to americans they are furious that we are sending money to countries that don't respect us. stuart: i asked the same question to ambassador bolden. is it widget to get involved in this kind of level in foreign policy in the middle of a crisis in the middle of a presidential

election? is it. it for you guys to do that? >> it is absolutely our responsibility. the founding fathers divided foreign policy. they didn't give it all to the president. in the last century we assumed the president decides all of this and if you're a candidate you can't say anything, our founding fathers said declaration of war was supposed to be the sole prerogative of the legislature. the commander-in-chief was to execute war. the funding and foreign-aid and all these things are ours. we have advocated this and let the president do whatever he wants but the president doesn't seem to have the will to lead on these issues so i think we need to let him know what the american people think about that. stuart: senator and all the personal pleasure to have you with us on the program today. what he said, the american people are really getting upset about sending more money over there. charles: the idea of a more belligerent these countries become the more we send the.

it is an amazing relationship we have whether it is pakistan, muslim clerics in egypt or whoever is in control. >> because everything is in such disarray at home that is what i am hearing over and over from the american public. while we not focused on what is going on here? the best thing we can do for peace overseas is to get our house in order here and show strength here and then we can do that. stuart: different if we have a strong economy. you would think with medicare and the middle east and our two big issues that mitt romney the ahead not only over all but especially in florida. next the latest poll from florida that shows president obama ahead and one of florida's former senators joins us at our studios to explain what romney needs to do to win that crucial swing state.

stuart: some worry about the economy and the market is down a little this thursday morning. dow don't average down 40, we got the latest from the manufacturing sector in the northeast, the philly fed down slightly in september, fifth straight month it has gone down. the latest report on jobless claims 382,000 new people hitting the unemployment lines. too high. the latest freddie mac 30 year mortgage unbelievable, 3.4%.

those of us who started out in america many years ago with a 12% mortgage can hardly believe 349. please look at the price of oil after a steep drop this week. pretty flat. $92 a barrel thereabout but bouncing around. we are back in 90 seconds with former florida senator george. why isn't romney winning 4 and a big?

stuart: i have to do the latest poll from the swing state.

i start in virginia. and this is a fox news poll. and ohio, the lead is 7 points, in florida president obama's lead is five points. why is mitt romney struggling in the state especially in florida? joining us is florida senator george lemieux. i can't understand this. in florida, i am just talking florida governor romney seems to have the edge in the medicare debate. that is the way appears. >> he certainly should. stuart: has the edge with cuban-americans in the hispanic vote and has a swing towards governor romney with the jewish vote because of the events in the middle east so why isn't he in front? >> it is part of the larger national campaign and he needs to focus on the issues floridians and americans care about. stuart: when you blame his

campaign and candidacy. >> always look at the candidate. there are internal stories about campaign strife. i put them aside. team needs to make the case. in a the case at the convention and by picking paul ryan that he was going to focus on the big issues to solve this nation's problems. i want to hear governor romney talking about those issues. in florida we saw a very weak economy. we have unemployment of 8.8% and that doesn't count all the folks who stopped working for work. mortgage foreclosure capital of the country. at one time one in four home foreclosures in the country were in florida and i saw information that in tampa bay and orlando that critical item for corridor where 50% of voters in florida live. foreclosures are up 47% over august of last year. stuart: plenty of stuff to go at. he hasn't gone at it yet. >> what i want governor romney to do and i am not inviting him is to talk about the america he

wants to achieve. give us the vision. the big ideas the campaign doesn't seem to be articulating now. i don't want to see governor romney being the attack dog for that campaign. he doesn't like it and is not good at it and doesn't seem natural. i want him to do what ronald reagan did which is tell us the america we can be again and the america he believes in and how we will get there. he will be comfortable doing that and persuasive. stuart: the three of us on this side of the set looking at you are all thinking same thing. you are implicitly criticizing romney's campaign and the way he is conducting the campaign. >> the most difficult job in the world is running for president. a very difficult job. far be it from me to say i could do it better but my advice from the sideline is this is a man of extraordinary accomplishment. a man we found at the convention is a tremendous human being and a man who believes in the country and had great success in the past in turnaround things that have failed.

i want to hear from him in the closing 50 days. the closing argument of this campaign the america we are going to achieve under a romney presidency and what it is going to mean for americans under that presidency. he does that he win the election. stuart: haven't seen it so far. former senator republican from florida george lemieux. thank you for joining us. you just saw the polls. romney have a lot of ground to make up. is he a good candidate? that is the question we asked. does he need to shake up his staff? that is what we should have been asking. wall street journal's dan henning beer coming. does he agree with democrats strategist doug shoen his said this? >> he has been an dubee negative and not well served. he has to be more cautious and careful in what he says. all romney has done himself. when we got married.

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>> we're going for the system based on three large institution. big government, big corporations and big unions and if that is what we want that is what we are getting and most americans don't like that. stuart: that was arthur brooks in the last hour of rising incomes of the d.c. metro area. everyone else on the downside.

remember 9:20 sharp and that is when we start. to the big board we are still down 50 points and been their most of the day down 47. checked the price of gold still hovering around 1770 level as we speak. i want to get back to nicole petallides because a successful ipo, real-estate company. nicole: doing really well today. one of seven ipos. here is a look at it. it has been up 30% of morning. thirty% to the upside. their real-estate company on the web give all the data and the idea is to bet on the real-estate market improving. that is really good news. stuart: impressive to see an ipo that goes to the upside down day 1 when it is trading. has been a while. nicole: we talked about zillow.

their stock has doubled. we will see. stuart: maybe it is the housing market which is showing signs of life. thank you. back to the presidential race. here is dan henning your of the wall street journal. welcome guest on the program. i want you to give your critique of the candidate mitt romney. is the campaign and message? i wrote a piece on monday about the nature of the campaign and his campaign manager stuart stevens. this is one example that jump out at me that they went through two iterations of that acceptance speech he gave endeavour he delivered it gallops at with the least admired -- admired speech they never measured. at the end of the speech what jumped out was romney said i

have a five point plan to create twelve million jobs. those five points to come 180 words. twelve million jobs and 1 80 words or less. that suggested they were so disorganized they ran out of time at the end and stuck that in. now has fallen seven points in ohio and virginia and florida and you have to sit down and ask are we doing the right thing? what i am suggesting is mitt romney is a guy who is famous for his personal loyalty and he is loyal to his campaign manager and his ideas but there's something larger at stake. we have been talking about this horse race. this is a historic election. barack obama defines it as a competition between his vision and his opposition's vision and is mitt romney presenting the other side's vision? stuart: i see what you are saying and you are not part of the establishment's left of

center media. most people are getting their coverage of this election campaign from the establishment media which is universally in opposition to what romney is saying. they hate his style. they don't like the content. they're going after him. you are not. you are objective. you are not part of the establishment media. i am giving you a compliment. [talking over each other] >> it is not sufficient for mitt romney. they have assumed that the bad economy, the low growth and weak recovery was going to sink barack obama. it is not so they have to explain why obama's policies have contributed to the condition we are in. [talking over each other] stuart: when he went after newt gingrich in the primaries that is when he was winning and how won. >> the message of the campaign. he is letting the media shake the message and you wants to

move to the offense and focus on those points. [talking over each other] stuart: but attack his opponent which would be attacking a sitting president. >> not the media's job to attack barack obama. it is the opponent's job to do that. stuart: why is the media attacking mitt romney? >> he is leading with his chin with statements like 47% and giving an opportunity. charles: should he be attacking barack obama or espousing his game plan? which is more important? >> they are equally important. people need an explanation why obama has failed because they don't feel that right now. they also have to have an explanation why mr. romney's policies will displace the bad ones we have had the three years and create more opportunity. [talking over each other] stuart: he needs a one liner and -- >> needs to stand back and

reconsider whether he is taking this campaign in the right direction and being well advised. stuart: he has 40 days to do it. dan henninger, thank you very much. chicago teachers back on the job but the consensus seems to be the union won the fight. how much power do the unions have? john stossel joins us next and he is not afraid to ask that question. >> tell me how much money i need. right out of high school into college. you know nothing about us here.

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stuart: joining the company is larry levine. explain something to me. ben bernanke is printing of the storm. mario draghi doing the same in europe and the japanese have joined. why is oil down so much? >> there have been some false rumors over the last few days. we are talking about putting out the reserves. that was never a news story. seemed to reflect what happened after the sell-off. peace of mind selling and institutions came in and started the ball rolling but a couple false rumors excelled the downplay or moved to the downside.

stuart: is it possible oil at $91 a barrel that we are in for a global recession? >> a good chance a global recession whether oil is at 91 or 100 is the case and i don't think anybody doubts that but oil is another situation. lack of demand in oil would be another notch on a poor situation. no question about that. stuart: i have oil at $91 a barrel and gold at $7.70 thereabout. looking for real movement and i am sure you are too. you can't make money without movement. correct? >> absolutely. we need volatility. we have seen a little but not enough. stuart: you speculated -- thank you very much indeed. get back to your speculation. chicago teachers strike over and die will say it unions won but the focus has shifted to the chicago teachers pension fund which is running dry according to the new york times.

john stossel is year and showed how much power unions have. >> tell me how much money i need. right out of high school into college the brazilian know nothing about us out here. stuart: spoon fed right out of high school. . is. john stossel. you attended these big union rallies. john: this was not chicago but philadelphia. what was the sense you got out of it a bit and hostility? john: surprisingly little given -- special correspondent kennedy, a guaranteed job and living wage and so on. about employers' right? they put on sirens. there's a sense that without

unions that would be no middle class and no one would get a raise and everyone would be paid down $2 a year. 90% of people get paid more than minimum wage not because the law but the market. they say unions created a middle-class. the eight day work week. in truth henry ford in 1914 created the eight day work week to compete to attract good workers. redoubled workers' pay. the uaw didn't organize until 30 years later. one last example. we protect the workers they say and the union contract does but it kills off jobs. toyota in the past 20 years creates 15,000 jobs not in japan, in the united states. gm at the same time lost 400,000 jobs partly because of the union rules. how does that help workers? sandra: or point i have a friend. one of my best friends. john: was he yelling at me?

charles: not a yeller but growing in the union movement and the thing they talk about is greed. he is making $50 an hour and complaining and -- tune make much money a few years ago. the idea that this bothers me because seems to be the underlying theme of this election that somewhere along the line government may have to step in and decide where to cut off levels for the owners -- agreed levels. how much profits and do you need? we have heard president obama stay this. john: hard to explain how the market regulates. some people in a free society will do better than others but we all win that way. stuart: when your argument is the degree of unionization and the private sector has been shrinking for a couple generations. john: they have to compete. my argument is not winning hearts and minds. it is where they have to compete in those industries, shrink the public-sector unions where they use their monopoly growing and

most americans think without unions workers would suffer. stuart: that is the nature of your show tonight on the fox business network. i admire a man dressed like you with a fox label going into a union rally. i admire you. john: most people were very nice. stuart: when i walk down the street people are nice to you. only occasionally are they not. and i have british accident which is worse. john stossel. we will watch you tonight. more than 1100 -- 11,000 pages of regulation added under president obama. 11,000. four $88 billion is the cost of these. why lawmakers go along with it? may because congress doesn't read the laws that it passes. we are going to run it again. the classic from nancy pelosi.

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for the fifth month in a row. manufacturing contracting a little. jobless claims 382,000. very high for this state of recovery. negative outlook on the news but economics down. look at norfolk saturn down big said will make less money because of lower coal shipments. down goes $5. union pacific also lower today. six million people, americans will be hit with a penalty for not having health insurance according to the nonpartisan cbo. most of them are middle-class people too. president obama said he would never raise taxes on people making $250,000 the year and a supreme court said it is a tax.

stuart: it is the theme on "varney and company," the long list of new rules crippling small business. we call it regulation nation not just because it rhymes but because it is real. since president obama took office 11,327,000 pages have been added to the code of federal regulations. those regulations come with the cost. $488 billion a year according to american action forum. the judge is here. his name is judge andrew napolitano. welcome. there is nothing wrong legally or constitutionally with new federal regulations. judge napolitano: nothing wrong legally because congress has

created these administrative agencies like the epa or federal aviation administration. constitutionally there is dispute whether congress can delegate its core function which is to make what because these regulations once they are promulgated in the federal register which means a bureaucrat has written that and the white house signed off on them once they appear in federal register for 30 days if they are not vetoed by both house of congress they become law. stuart: what you are saying is congress should pass a law which is absolutely full, no rules and regulations to be written separately. it is right there and that is what you vote on. judge napolitano: for constitution says all, i am emphasizing the word all legislative authority hearing granted shall be vested in a congress. justice scalia has argued that means congress cannot give away to some other body legislative authority which is the ability to write law so when the epa

comes up with regulation about how many articles per billion can be harmful or when the faa says if you spill oil on tarmac at an airport you have to clean it up within 30 seconds if congress doesn't beat those those they have the same force of law as if written by congress. stuart: must have been challenged 100,000 times on a constitutional basis. you lost every time. judge napolitano: good question. when congress wrote this administrative procedures act which leaves administrative agencies do this it gave such discretion that the only way the courts can interfere with this rulemaking is when the discretion is abused. that is a high standard for the challenger of the race. stuart: subject of -- [talking over each other] judge napolitano: as you point out congress doesn't read these regulations. if congress doesn't like what the epa is doing -- [talking over each other] judge napolitano: doesn't know

what the epa is doing the too lazy to read regulations. >> if these people are working for us how can they pass something that they haven't read and they can attest they know what is in there. judge napolitano: i love your jeffersonian attitude. they are working for us in our minds, not in their minds. they tell us how to live. >> how do we get the american people to rise up and say enough is enough. they work for us. judge napolitano: people like stuart varney in the senate. [talking over each other] charles: when the supreme court gives the power, this is what the clean air act to create an agency that supersedes congress how do you get around that? the supreme court has created and given the epa super sized power that it overrules congress. judge napolitano: for congress has allowed cp a to do this and

the supreme court declined to interfere. the epa is a great example because under president obama promulgated regulations that showed up in the federal register, senate for 30 days and the house didn't object so they went to the code of federal regulations. charles: can they object? judge napolitano: those very regulations had been rejected by the congress. before they don't have power. congress has no power over their epa. judge napolitano: if they were willing to exercise it. they lack the will and discipline to wonder stand with epa is doing. stuart: out of time. jeffersonian. excellent stuff. [talking over each other] stuart: my take on the president's activities this past week is next. want to try to crack it? yeah, that's the way to do it!

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stuart: pirates day? the bowlen champagne tower? letterman? all in a couple days work for our very social president. here is my take. sedna no it was talk like a pirate they yesterday. i found out when i saw a picture of the president with a pirate. some kind of international joke.

the president joined in. the picture may or may not be old but he joined in pirate day. i didn't know j z's nightclub featured a golden tower of champagne bottles. the president visited the nightclub and i found out. i didn't know the president weighed 180 until he joshed about it with david letterman. apparently this is how you get real with an election a few weeks away. the president campaigned in vegas and pose for the cover of people and interviews with a pimp with a limp. not sure i can get behind this. it just doesn't feel right to me when america is under attack around the world, our ambassador is murdered. at home the tale of economic misery continues. reelection is important to mr. obama but to engage in a series of that best non serious events in a time of crisis is not the way to conduct the presidency. can you imagine what the media would be saying if it were a

republican president? the pin with a limp? hi rick day? there would be a firestorm of yuri. we have to say it again. be a leaks will always let america down.

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the expert strategies feature is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. stuart: rule it. >> what has the president been up to? hollywood fundraisers. a celebrity magazine photo shoot. >> i think that is a fantastic thing to do. stuart: the u.s. has been under attack in the middle east. president obama has had a busy week. >> i do not approve this message, stuart. stuart: okay. we concentrated on the president 's social week during the week of crisis. i maintain, carol, it works. if you want to get the youth vote, that is how you do it.

>> they want the cool guy who is in with the hollywood crowd. that is who americans are voting for. this is just another one of those bad behaviors that we tend to see. stuart: associate with it and that is what you think brings in the votes. >> i would say that they are afraid of turnout. they are definitely, definitely afraid of turnout. stuart: the young people? >> black voters, hispanic voters, they are afraid that these people will not be motivated this time around. it just does not have that same feeling. stuart: interesting stuff. carol, thank you for being with us today. and also charles. connell and dagen, we will turn it over to