melissa: it is our 100th episode of "money". i'm melissa francis in georgous dana point, california the we're live for td ameritrade's annual investor conference and here's what is "money" tonight of the president obama unveils a new detailed plan to bring the economy back to life. might be a little too late. can mitt romney one up him two weeks to go? fred thompson next thome. td ameritrade's president and ceo. he will tell me which candidate will be better for you and your money. facebook at a crossroads. will mark zuckerberg convince investors that they climbed out of their post-ipo ditch?

third quarter earnings call is starting. we're on it. we'll bring you every detail. gouging calfornians at the gas pump. stringent environmental regulations could be costing drivers big bucks here in the golden state. california governor gray davis is here with his take in a fox business exclusive. even when they say it's not it is always about money melissa: first, take a look at the day's market headlines. the bulls in full retreat. a wave of poor earnings reports trigger ad widespread selloff. the dow dove 243 points, its worse loss since june. all 10 s&p 500 sectors closed in negative territory. the nasdaq fell below 3,000 for the first time since august 6th. not good. they missed third quarter independent estimates and lowered full

year outlook. dupont announced a restructuring plan that would lay off 1500 employees. yahoo! was one of the market's few bright spots. its shares lept 5%. yahoo! was stablized with higher revenue. >> here is my plan for the next four years, education and training a national priority. boostings american-made energy. reducing the deficits responsibly by cutting where we can and asking the wealthy to pay a little more. and ending the war in afghanistan, so we can donation building here at home. melissa: well he has got 14 days left and president obama is hoping that plan will help him lock in another four years but a new td ameritrade poll shows 40% of the investors think a romney victory would have the most positive effect on their portfolio. just 31% think another obama term would be better for their money. joining me for more is td ameritrade president and ceo fred thompson.

thank you for having us and joining us on the show. a beautiful day here. >> beautiful day in southern california. congratulations on your 100th show. melissa: a great day here but not so much in the market. is inside talking about it? what are they talk telling you? >> they're not talking about it as much they are ras. they manage long term money for their clients. they're a little less long concerned about today. the markets are clearly fragile and only take as little bit of news or surprise to move the markets like we saw today. melissa: why are they so fragile? is it high frequently trading? is it facebook's initial ipo? is it all the things we point to in the market or do you feel there is bigger driver? >> i think it is about the u.s. economy, the world economy, what is going on europe and spain but also about corporate earnings. i think we're seeing seizing of corporate earnings where it mixed. people are talking about outlook statements and i saw

a statistic today, 90% of them are guiding down here. that, i think that is what is weighing on the market as we have a difficult economy but good corporate earnings seems to be pulling back. melissa: is that surprising to? we were already for this corporate earnings season not to be great and now here it comes in. is it worse than expected? did investors maybe think companies were sandbag and coming in here and beat and turns out it was as bad as we thought? >> i think people have been expecting corporate earnings to pull back for a while. melissa: yeah. >> seems like every quarter when we start to have the earnings releases they actually beat it and find a way to beat it. this is the first time we've seen a few companies basically, more companies start to talk about the future is looking a little tougher right now. melissa: what would restore confidence? we talked about this earlier today. you said certainty. that seems like an easy thing to point out. everyone is saying certainty. certainty of higher taxes? that will not help. there are certain kinds of certainty that aren't better. >> i think that's true but i

think the misery of certainty is better than the misery of uncertainty. melissa: really? okay. >> a lot of times in the market what really causes problems in the market is uncertainty and when you have certainty, people know how to adjust. i agree, you could have certainty that can be bad. there is no question about that. what is clearly driving people today as we renew the investor survey is all about the u.s. economy. about the federal deficit. it is about europe. it is about the middle east and about china and india, those types of places. but the most, in the u.s., it is about the u.s. economy and the fiscal deficit. melissa: yeah. you were talking about the survey you put together. 5.7 million active accounts that you see. what are people, how are they reacting to that uncertainty? are they keeping money set in one place. are they keeping bets but they're safer ones? >> we're continuing to see the way their invest sentiment and what they're actually doing. melissa: oh really?

>> more active investors are participating in the market, in the ways that they do. they go in and out. but the long-term investor and ra are definitely more conservative stance. a fair bit move money on the sidelines a lot of money in risk-free assets. they're taking a fairly conservative stance based on the unprecedented uncertainty. melissa: you said that it is all about the economy and the president put forward his 20 page plan i think on the economy, the main points being education and training, clean energy, and raising taxes on the wealthy. these were salient points he put forward today to try to convince people he has a plan to attack the next four years. what do you think about that? >> i think that is an interesting, you know, release today. we're two weeks away from the election. but when i, only got a glance chance to glance at it. when i glanced at it has been repackaged in tighter form to hopefully help people understand where he is coming from. melissa: what do you think

would help the economy grow right now? it is a very base being question people have been grappling with the last four years. >> i have my own view. i would say there are two or three things. we need to get the election behind us and hopefully the fiscal cliff behind us. there is definitely a bit of a overhang and talk about the fiscal cliff and we'll get beyond that. the second thing, we need to get washington working again. and i think, --. melissa: washington working. okay. usually that has a bad connotation for me. i don't want them doing anything but you say dealing with the fiscal cliff is what you mean i bet? >> dealing with the fiscal cliff. >> okay. >> more importantly starting to align fiscal policy with monetary policy. some people say, no, you need to cut back spending. i don't think you can cut back spending in the short term. the key to have short term fiscal stimulus. how you do that that is important. and then the long term credible deficit reduction plan. along the lines of simpson-bowles i don't think is too far off.

if you have both of those and align monetary policy and fiscal policy i think the u.s. economy will start to come. the last thing, get rid of the last piece of uncertainty on the regulatory side. i don't think that is on the average business. but definitely on the financial services sector. melissa: fred, thanks so much for your time. we appreciate it. as promised facebook third quarter earnings just released. conference call is underway. fox business's sandra smith has the breaking details. sandra. >> hey there, melissa. i'm just on the call listening to mark zuckerberg who got on the call minute and a half two minutes ago, some of the first word out of his mouth is talking about the mobil opportunities for facebook. he said he believes mobil opportunities is the most misunderstood aspect of facebook. he says mobile is larger opportunity than most people look at shares surging in after-hours trading. they're up eight to 9% after it released third quarter earnings which beat analyst

forecasts at 12 cents a share. analyst were looking for 11 cents. revenues came in at 1.26 billion. that beat analyst forecast for earnings of 1.22 billion. a beat on the top and bottom line but key, guys, what was key in this earnings release how they're taking advantage of all those mobile users. facebook in this report said 14% of the its advertising revenue came from mobile devices in the third quarter. and you will remember that going back to the beginning of the year none of their advertising revenues came from their mobile platform. so this was a big improvement. their monthly active users up 26% to over 1 billion people. mobile monthly users up 61%. so pretty much an improvement across the board, guys. so the stock is up. mark zuckerberg is on the call right now, speaking about the next three years. the strategy at the company, but melissa, remember, this is a company that has lost half of its value since going public in may. so he has got a lot of explaining to do.

but right now seems to be working with that stock getting nice boost. back to you. melissa: sandra, thanks so much for the report. to put all this into perspective we turn to paul meeks, senior tech analyst. thanks so much for coming back. >> sure. melissa: let me ask your reaction to facebook. investors likeewhat they heard. mobile revenue up 14%. advertising revenue was 0% of their revenue at the beginning of the year. investors like this and what do you think? >> well the stock has been depressed recently so i think it was due for a snap back. headline numbers, revenues and eps slightly better than expected. i'm not convinced longer term because year-to-date we still on gaap basis have a loss for the company, also burning cash. when you think about it, 14% of their ad revenues are mobile, that's a good thing but the problem is, google has mobile ad revenues that are 1 times higher, yet google trades at -- 13.

valuation level half of facebook. melissa: does it have the potential growth down the road? facebook is company coming into its own? >> going forward i think facebook will grow more quickly i think google, in the mobile ad revenue space, which is key for both companies going forward i don't think is growing that slowly so google is the better buy. melissa: you have been apple investor but don't like facebook. what would take to change your mind? what price would it take. >> if you price facebook as google valuation parity for mobile revenues you get a stock $14.25 a share. down from 20. melissa: that is specific answer to my question. 14.25. that this thing is fair value. >> 14.25. melissa: the call going on right now what would you ask mark zuckerberg about? >> i want to know there is vague talk about what we do to monetize mobile users.

i want to see if there is real business model down the road and if there is what kind of value should i afford that? i don't think anybody right now can make the call. melissa: the flipside, we were talking earlier in the day when apple was releasing news on ipad mini, i don't want to let you go without asking you about that. it is 7 1/2 inch i think it was we were looking for, 499. what do you think about that announcement? does it make you feel about your better about innestment in apple? would you add to it here? >> i wouldn't add to it yet. our average cost on the stock is $8.25. the announcement today, they announced two ipad minis. one at 499 and one at 359. one at 499 fully functioning, connected to all major cellular networks. 359, vis-a-vis, kindle fire at 159. i still think you get better value. amazon wants to sell digital content. they don't care about profitability in the hardware. melissa: no because they're not making one. paul, thanks for coming on. we appreciate it.

charlie gasparino has breaking news on the exit of citi ceo vikram pandit. >> we should say this is from the great reporting of cheryl casone. sec is conducting what is known as informal probe into the circumstances surrounding pandit's exit earlier in the month. they're looking at essentially disclosures. you remember how crazy, how weird that was disclosed. they had board meeting that night. excuse me they had conference call that day on earnings. after the bell they reached their agreement or disagreement. they basically forced him out. the next day it was announced that he left and citigroup at that point said his departure was voluntary. as you know we at the fox business network and other networks first reported that vikram pandit was ousted. that he was told by the board, chairman. board, michael o'neill, they lost confidence in him and wanted him out. they did that after the bell that monday. that is not the story that mr. o'neill and that citigroup officials have been telling people. they went on a conference call the following day and

said he left on his own accord. what we have right now is what is known as a formal investigation into the facts and circumstances and exactly how this guy left the company and why. it is a pretty interesting story. as i said, when he left, that whole thing about leaving that monday, after the conference call announcing earnings, that shocked the market. shares actually went up initially which will tell you something about vikram pandit's reign over at citigroup. but the sec is looking at the disclosures, if they were proper and did citigroup come clean to the market and tell the market the truth about why he left. was it really his decision or was he ousted? i'm telling you that our sources at firm mr. o'neill that day right after the market closed at about the 4:02, after the conference call for third quarter earnings went to vikram pandit and i'm paraphrasing but along these lines, we lost confidence in you. question, why didn't they announce it during the conference call? by the way if they loved

confidence and prodded him to submit his resignation, why are they telling wall street that it was all vikram pandit's idea to leave? that is something is the sec is concerned about, giving those types of statements to the market what we understand thanks to cheryl's good reporting this is informal probe into the facts and circumstances surrounding his departure. back to you. melissa: good stuff, charlie. i know you will stay on top of it. thanks so much. californians getting crushed at the gas pump. can environmental regulations be scaled back to give some badly-needed relief? former governor gray davis is here next in a fox business, exclusive. m.o. "money" coming up. ♪

♪ . melissa: turning to energy now, california is known to be eco-friendly but the state's environmental regulations could be what is driving gas prices so high. with an average price of 4 heroin $40 a gallon, can

california has the most expensive gas in the u.s. behind just hawaii, which is series of island by the way. hard to get gas there. joining me in fox business exclusive, former california governor gray davis and the former communications director of the california republican party. welcome to you both, gentlemen. let me start with you. high gas prices taking a toll. we saw with refineries shut down and shifting to the winter blend with dirty filthy, gas to get cars running around here. do you think that environmental regulations taking a toll on california drivers. >> melissa, you're looking at this. melissa: everybody is in their house hiding because they can't drive their car? >> that is one theory. let me give you another. because i came to california several, couple decades before you. melissa: yeah. >> and the air was like orange. i mean we have, mountains trap all the pollution. so for many, many years we made a bargain which we'll pay more for gas in order to

clean up the air, defense of cancer and all problems with lung disease and contaminants. melissa: i hate to give him this point. i grew up in the valley. i hate to tell people. a lot of it was covered in smog. a lot is gone now. does he have a fair point on environmental cleanup and is it worth the price? >> we all admit we need a clean california environment as possible but the fact that the regulations continue to stop people out there who want to provide research and developments that will give us some added resources, the fact that we haven't built a new refinery here in what almost 30 years now. the population has doubled since then. we've gone from 18 to roughly 36 million californians. melissa: yeah. >> i think we can find a way to environmentally be it clean, be it safe and find a way to extract some of the oil that we know is out there, some of the other natural resources through fracking, natural gas. i think there is solution out there for us because we have the smartest people in

the world in california that can figure this out so it keeps the environment pristine. melissa: yeah. >> provides resources california drivers need. melissa: i sometimes worry california take as good idea and takes it to the excess beyond what we need. we saw that with the gas price rise recently. but prop 30, also gives me pause. it is increasing taxes on those earning more than $250,000 or more. increasing sales tax by a quarter of a cent for four years. analysts think it will bring 6 billion annually. those are juss the highlights. you tax the things you want to discourage. do you want to discourage sales tax gas consumption, that is people working. seems like a crazy time to do something like this. are you voting for prop 30. >> i am. i'm not thrilled about doing it but let me tell you why. when we came here, there was a golden state and new gold rush here. people built universities and roads. they brought wear from the north. we're living in a desthe where we are right now. melissa: sure. >> that is all paid for with

money by our parents and grandparents. we have to pass on the next opportunity to the next generation. melissa: by taxing? >> do you want to make a donation? melissa: i think it stalls the economy. all you passed on to your children is slower economy by raising taxes. i think you've got to usher in businesses, give them -- >> governor arnold schwarzenegger had a temporary tax increase. governor wilson had a temporary tax increase. this is temporary tax increase. the idea is just to be a bridge until the economy fully recovers. melissa: mark, when you line up all the temporaries it feels permanent. >> just one thing after another. there is all sorts of hidden fees and taxes and sorts of things. governor davis is, right to sell operate the fact that he came here, was able to be successful but for every one person like governor davis here we have 2,000 per week, high wage income earners leaving the state of california amount lot of it has to do with highest taxes not just from sales tax but also from an income tax standpoint. >> i just say, california is like the 7th largest economy in the world. actually when i was governor, not to brag it was the 5th.

we're doing something right here. --. melissa: shrinking went from 5 to 7. >> what can i say. look it, i mean there is no state in america anywhere near as prosperous and anywhere near as productive. we're largest state. we have benefits and burdens of that. i think jerry brown has done a good job. he came in, unemployment rate was 12.5%. now 10.2%. we're in the moving right direction. >> jerry brown knows it is in trouble he brought out the dog. you roll it around. look like the governor's cute little yorkie. i forgot i can't afford higher taxes. >> he didn't just raise taxes. bring out the big guns. melissa: gentlemen, thanks for coming on. this climate makes for such a polite discussion, no matter what. time now for today's fuel gauge report where we break down the biggest headlines affecting the energy industry and their impact on economy. oil prices getting slammed

in today's selloff, sliding to three-month low. crude settled down 2%. $86.67 a barrel. iran threatening to cease all oil exports if the u.s. and europe imposes tighter sane shuns. the warning come from iran's oil minister who also claims iran can financially survived without oil revenues. iran's exports have fallen 60% over the past year. if iran get as nuclear weapon, gas costs in the u.s. will spike $130 billion a year. that is according to new report by the bipartisan policy center. a nuclear armed iran would send oil prices up by 50% within three years. iraq is asking the white house to intervene in a dispute with exxonmobil relations between exxon and the iraqi government have frayed. exxon signed an exploration deal despite protests from iraq's central government. the bulls get mauled,

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i'll he more awkward conversations than i'm equipped for because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown. but it's for them, so i've found a way. who matters most to you sa the most about you. massmutual is owned by our policyholders so they matter most to us. massmual. we'll help you get there. ♪ . melissa: brutal day on wall street. the dow losing 243 points after more disappointing earnings reports. european markets tumbling as well. wee assembled a all-star panel of money managers from coast to coast to tell investors what they should be doing to protect their money now. richard brown, jmba financial advisors in

minneapolis. lee is president of united assets strategies from new york and jeffrey powell, director of polaris asset management from san francisco. thanks for all three of you joining us today. was it nerve-wracking to be inside and market tanking and you're in a seminar talking to other investors rather than managing things? did that make you swift? >> we do things more in advance rather than reacting to markets. we were already doing things several weeks ago in preparation for the uncertainty of the presidential elections how much it affects the markets and what we're expecting to go on next year. melissa: really? you were getting defensive for the election as opposed to, a lot of people thinking this quarter earnings were not going to be so great and they wanted to get defensive ahead of that. that didn't make you as nerve rather than the election. >> both. people don't like uncertainty. the more the election comes closer together i think the more uncertainty going on within the markets. the more you will see days like today in the market. melissa: lee, is there a selloff going on right now? you think it is more than a

couple day event? >> we did expect quarterly earnings for corporations that disappointed or perceived to disappoint could represent a brutal treatment of that stock, and if the fundamentals were still good we were ready to buy. and due to electronics i was able to keep in touch with the office today. found out we did fill on two orders we were patiently waiting for a pullback. melissa: nice. >> we saw it as somewhat of an opportunity. >> saw it as opportunity rather than everyone else got fearful you went in waiting for people things to buy for a while. >> that is true. ear i'm not being cavalier but we're preparing for the as well on the downside. melissa: richard, where did you come down? >> we know twice a year we'll have some correction. we've been in correction and or begining of one. it is an opportunity. our job is to be calm and understand what the markets give us and give the opportunity for the clients to get in when we think is right. we take advantage of the opportunity but it is tough

for clients. melissa: the flipside of that when you listen to a lot of the warnings we heard today from people like 3m, sound like there may be more of a global slowdown is just beginning. it is another leg down. do you think that is possibly true and does that make you more nervous about the market? >> absolutely. when you have our own economy barely breathing on its own and europe where it is it a huge concern. melissa: lee, does it seem like things could be getting worse, taking a leg down economically around the world? >> yes, of course that could be happening. we do see though that there's a lot oo cash that needs to be put to work. and although things could be falling apart in europe or getting worse in europe, we still see we need to produce some sort of real return on our clients money. melissa: real return but obviously always the question, how you do that. richard, do you think that the global economy right now is getting better, or is getting worse? >> well, i don't see signs of it getting better. i think, if you take a look at europe and what is going

on there, it is hard to watch. i think though the united states, if, the companies that have done well, you know, they have tighten the reins. they have been able to have good numbers for a while. now we have to get orders. tough do sales. if you do that i think companies will end up making more money and that will be good for their stock. so we're in a tough time right now. we have elections coming up. we've got a lot of things going on and, as we talked about the market does not like uncertainty. melissa: i will ask all of you, how are you positioning yourself in light of the conversation we just had? >> our most risky clients are sitting above 50% stock. the rest is in bonds and cash. we're fairly defensive already. melissa: what kind of stocks do you like in this kind of environment? we'll tending to go more towards dividend paying companies right now. obviously the tax cut issue. that could change your tack very quickly. a more defensive, more cushion with companies paying dividends. melissa: would you buy other stocks or would it cause you to select away from equities?

>> what we do if we continue to see sluggish growth or even slowing down more we would take more of our stocks off the table and go into bonds and most likely try to shift into areas of strength as we saw that happening. again, the potential, tax treatment of dividend next year, if you look last two times you had dividend increases or taxes on dividend increase growth companies severely outperformed for dividend pay years lee, you said you're looking for bargains. >> the idea we have got an election coming. we've got potential for increased taxes maybes us have caution as to protect certain profits and to minimize risk to the downside. that we would be sellers if this was to, erode quickly but has to look as if it is going to stay eroding on a quick basis. i don't see that happening right now. it needs to stay in it to produce positive returns for clients. i don't see that will change in the next couple weeks. melissa: richard? >> i would agree. the market, there will be

opportunity out there. we have to be willing to capture that opportunity. our clients are concerned. is their portfolio going to produce what they need to live on? we need to be mindful of that and we can't be too defensive. we have to understand we have to look where we're at right now and prepare ourselves for the worst if it comes. melissa: be prepared, be smart. that's the bottom line what you're all saying. thanks so much for joining us. we appreciate your advice. both candidates brawling in boca last night but did either land a blow to win the hearts of undecided voters? bill kristol of "the weekly standard" joins me. that is coming up next. "piles of money" coming up on the other side of this break. ♪ [ male announcer ] you are a business pro.

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>> governor, when it comes po our foreign policy you seem to want to import the foreign policies of the 1980s just like the social policies of the 1950s and

the economic policies of the 1920s. >> i couldn't agree more about going forward but i don't want to go back to the policies of the last four years. the policies of the last four years has seen incomes in america decline every year for middle income families, now down $4300 during your term. melissa: round three is over. both president obama and governor mitt romney duked it out in the final debate last night. we have got 14 days to go, and may the best man win. bill kristol, editor of "the weekly standard" and fox news contributor. did you watch every minute last night? >> i did but baseball game. no tension in the cardinals because they didn't put up much of a fight. melissa: they seemed to turn back to the economy? do you think that worked with voters? do voters want to hear about foreign policy? are they engaged in that? >> i think they want to be sure especially of the challenger, mitt romney that he is up to be commander-in-chief. the incumbent has been president four for years,

people don't like his policies. especially a governor, challenger, not involved much in foreign policy issues he has to prove he is comfortable enough, knowledgeable enough, seems sober and tough enough to be commander-in-chief. melissa: a lot of the polls afterwards said they thought president obama won. what do you think about that. >> i don't really agree. he may have won on points and scored a couple more zingers on obama than but if you look strategically, romney had to do what he needed to do. he reassured swing voters he is up to be president, leading the country on foreign policy and up to commander-in-chief over the next four years. that was his key to ask. he pulled himself back from mixing it up with obama few times. melissa: he did. he did. >> people do or don't like obama's foreign policies he will not change their minds in 90 minutes. he had to prove something to them. melissa: we pulled some clips. let's get your reaction on the other side. >> i think governor romney

has not spent enough time looking for how our military works. that we have fewer ships than 1916. governors we have fewer horses or bayonets. nature of the military changed. we have aircraft carriers where planes land on them. ships go underwater, nuclear submarines. the question is not, a game of battleship where we're counting ships. it is what are our keepabilities. melissa: i don't know, what do you think? does that kind of snarkiness play well? sound like something a tv commentator would say, taking a shot at someone else. i don't know how presidential it was? >> i agree telling people, conservatives disappointed that romney didn't have more quippes of his own, this isn't me and juan williams sitting next to each other on "fox news sunday". this is the president of the united states. for a sitting president to make a crack like that? what was he saying diptly? more than 2/3 of voice sells in the navy are not aircraft carriers and submarines we

have amphibious assault vessels and vessels doing important things around the world. obama think seems to think they're like horses and bayonets. i don't think that will play people, what attitude it reflects. in virginia where i live, a awful lot of people involved with the navy one way or the other, shipyards and the like. i don't think that really helped him. melissa: bill, thanks for coming on. we appreciate it. apple launches its ipad mini with nerds everywhere just swooning. how can top competitors like amazon and microsoft mount a counter offensive? details coming up next. at the end of the day it is all about apple and money. ♪ all energy development comes with some risk,

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♪ . melissa: i don't think so. a big day for apple lovers. five new products unveiled, three computers, three i pads, including the highly anticipated ipad mini. all of this a month after the launch of the iphone 5

which apple brags is the fastest selling phone in history. here with the lowdown on all things apple is larry from dinah link communications. larry, thanks for joining us% and what do you think of all the announcements today? >> i think the announcements were great. we saw apple is getting into the market they were not in, 24% of the 7 inch tablets is what it is right now and apple is not in that. what we saw today was all about content. if you read between the lines you saw about the ebooks and the i-book, coming into play here now, with colleges and universities. so the whole idea is getting people now into the apple ecosystem. and that's why they came out with the ipad mini. melissa: what do you think of the price point on the ipad mini? a lot of people were looking for it to get more competitive. i understand the kindle fire is so cheap, maybe they weren't going to reach quite to that price point but at this point they're not even close. do they need to make it more

affordable? >> at first i thought it would be lower. talking about 329 at the start compared to 199. may go down even further with amazon. but i don't think they had to do that. the whole idea is apple touts themselves as a better product. the market shows that people like it better. so the whole idea, once again, is to get people into apple with a content play. i really believe people will pay the 329 over the 199 to get into that ecosystem. and you know, everybody else is a loss leader where they're making money just on the content. i don't know if apple will make 32% profit on this device like the other devices, but, it is the about the content play here that we saw today. melissa: are they cannibalizing any of their own users at this point? how many ipads do ou need? we have a bunch of in our house. you know, it seems like maybe they need to come up with a whole new product line. they have done that before. it has been incredibly

successful. do they need to put something new in the pipeline at this point? >> the whole idea is, if you normally look what apple is doing, hey, they will cannibalize everything they're doing but they are not. they continue to get people to go out and buy their new devices, so the numbers shows, they have more cash reserves than the u.s. treasury for a reason. people are not cannibalizing. they're going ahead and buying new products. they're showing up normally what happens in a scenario like this. melissa: stocks been getting slammed lately is it a buy? >> i think it might be, it might be a buy but, the whole thing with apple is, it is more institutional buying going on right now because it is taking a lot, taking a lot of hits up and down based upon earnings, based upon new products. so you could look at it as, i totally believe apple will be over an $800 stock within a 1-year period, there is no doubt about that but could it go down a little bit more? we'll see. but what usually happens when earnings come out, people take profits.

you're seeing a lot of profit-taking right now. that is where the volatility is coming in. melissa: okay. larry, thanks so much for coming on the show. >> thank you for having me. melissa: here is the question of the day, are you going to buy the new ipad mini? we want to hear what you think. like us on facebook.co facebook.com/melissafrancisfox or follow me on twitter at melissaafrancis. will he stay or will he go. ben bernanke reportedly hinting at his future at the fed how the election may determine the outcome coming up next. you can never have too much money. ♪ . 4g lte is the fastest.

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news? >> a lot of speculation, mitt romney has made no secret he is not a big fan of bernanke. i think whatever happens, however, because we're in such a precarious period of time with monetary policy, it is unlikely we'll see draft exchange even if mitt romney puts in 7s in 71s ie of his preference. i would think that market would assume that anyone who came in would have a little bit of a tighter fit than ben bern can key, the market would correct itself and tighten up. >> you would think that anyone coming in would be a bit more hawkish. you might see repricing in terms of federal reserve saying they would not raise rates until

2015, you might see pricing coming in. i think that first order of any new fed chairman would to be establish that we're not going to have drastic change. you don't than volatility creeping into the market. what would be the material impact on the economy do you think as a change in fed policy? at this time it thinks it is having an impact on stocks. a lot of loose money out there. >> it is hard to now counter factual, people will throw numbers in terms of the amount of jobs that would have been lost, bottom line is we went through a financial crisis, a huge deleveraging cycle, they looked to japan who made a number of errors in terms of not doing qe fast enough, bernanke was probably the right 57 at this point -- person at this point in the cycle.

i think the. we're close to the despregz. >> i'm not sure we needed to continue it so long, going forward, what do you think that the economy looks like you to, with worries we're flipping into a global slowdown. >> i would not say slips into a global slowdown, data shows it is here. very low 3%, which is slow. you would want to in 37 to 4% range for average growth rate. we're on the low side, u.s. does not have a lot of margin to play with. not a lot of margin on the down side. thank you so much we apec