>> i've been harsh on california. the governor there, jerry brown, said the deficit disappearedment thanks to spending and taxing cuts. this predicts rosie predictions about economic growth in the future and how much will be saved by spending cuts. i say it's a little early to celebrate. by the way, governor brown has some spending increases built into his budget. look at this, 2.7 billion extra for k through 12 education and 450 million dollars extra for school, energy efficiency projects. steve malanga is here, the expert on state finances. i'm saying that, yeah, i've been harsh on california in the past, the formerly golden state. i say you've got to look more deeply at this budget it ain't as good as it looks and you say what?

>> a couple of things, first of all, california has been essentially borrowing to increase its spending and they have about 23 billion dollars of debt that they have to pay back. it includes-- >> hold on, i've got to interrupt. they got 23 billion dollars. more debt than that, this is just budget deficit. stuart: this is fresh borrowing to cover the 26 billion deficit in the past and that 23 billion has to be repaid, but is not included in this budget. >> well, yes, actually it is included in the budget. in other words, a lot of the money from the tax increase and tax revenues currently are actually going to basically pay back borrowing against previous budgets. so and then the the second thing that's happening is california is not really reforming its spending, so, projections are that a big part of the tax increase is actually going to the fact that they have pension debt. they've done nothing substantial with the pensions and i'll give you within example. one of the former board members

of calsters, david crane, the california entrepreneur basically said that about half the money that's going to schools with the the new tax increases is going to wind up in the pension fund because c calsters is on what some people say the path to insolvency. and-- >> so i'm looking at this from a distance and i'm seeing an upbeat presentation by the governor, excuse me, as if no more budget deficits, we're out of trouble. we got rid of the bubble deficits and come from 26 billion dollars down and might be in the black in the near future. without going into detail, is he right? is it legitimate for that governor, that state to be upbeat about finances. >> compared to two, three years ago, you could be upbeat, a modest recovery. is it in the future-- >> not by any means, if you balance your budget and borrow

money continuing to spend without reform, you've essentially created a higher level that you have to meet and so, you know, they haven't restrained their spending in any way and the revenues got to race to meet that. >> but they're conservative, isn't that a spending cut? >> they're cutting services because pensions and medicaid spending and growth and things like that are taking money away from that so they've cut it here, but had to put it there and this is still growing so it doesn't make it-- the pension situation is horrifying, again, it's the same situation as illinois. in 2011, illinois raised taxes by 7 billion dollars. two-thirds of that money has disappeared into the pension. two-thirds of the money. why does illinois still have budget problems even after they raised taxes and declared victory, they didn't reform their spending. and california faces the same of problems especially with the

teachers pension. stuart: it's not about me, but i've said for years, the formerly golden state, pejorative like that, the formerly golden state and i've hinted some point in the future, california may need help from the federal government. have i been right? >> well, i would say the formerly golden state in so far as they're not clear as far as california's economic performance. and lagging more than a decade and unemployment has been higher in the nation for quite a long time and they have persistent budget problems and nothing about the pension system and the cost of repaying the pension system and absent tremendous run-up in the stock market and you see california cities going bankrupt and talk of more cities going bankrupt. this is all what's actually going on now. stuart: i've been right? >> certainly. and the other thing about the businesses, which remains a problem in california. what you're talking about and w glad you agree with me. thank you very much, sir.

friday morning, take a look at this, two men carrying ar-15 style rifles in portland, oregon. police question the the men after several calls were made by 911. both carry gun permits and concealed to carry permits. they're not charged with any crimes, it's legal to carry openly a rifle in oregon. in the next hour, the author of the original 1994 assault weapons ban and we're going to ask him. do you stop mass killings by banning assault rifles? take a look at this, a rare snowstorm in jerusalem. snow is so rare, it creates a national holiday. shut everything down and people absolutely loved it. snow in jerusalem, a deep freeze in china and in europe, but a very warm year in america, and the green is demanding a carbon tax to prevent global warming.

yes, the climate question is still with us, ladies and gentlemen. kirsten powers and carol is joining us, and the question, climate is always changing, isn't it? ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market.

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>> as we get ready for the the start of trading this friday morning, remember, please, that the standard & poor's 500 index, which is a very broad indicator of the stock market, it's about 90 points away, 90 points from its all-time high. just bear that in mind. the stock prices are doing quite well despite the economic back drop. the dow industrials will open above 13,400. if we get a modest rally we will approach 13,500 today. pretty high level considering what's going on with fiscal cliff and the debt ceiling cliff and all the rest of it. be and we have opened slightly lower. 13,460 is where we are. right now, as of this moment, f.a.a. is announcing an investigation into the manufacturing process of the boeing dreamliner, plus, its battery, its electronics. and we have news for you, two more incidents overnight, but the plane, the 787, the

dreamliner, they will stay in service. where did of boeing stock open, bearing in mind, a pr problem more than anything else. >> down to 75 and change. right now 75.75. and the question for boeing, are these growing pains with a new plane or structurally manufacturing defects and are people going to be scared to take a 787 dreamliner because it's more than a nightmare. stuart: well said, lauren. that's the pr side. if you look at physical side, if f.a.a. thought there was a threat to safety and health of passengers they would have have taken them out of the air, but i agree with you, pr, and boeing was buck and a half. >> 1.7% lower. stuart: we'll check back later. thanks very much. call it the smartphone effect perhaps. according to tech industry,

tracker idc, pc sales dropped during the holiday season, first time in five years, the drop was 6% as compared to the same period previously last year. a look at the shares of dell, down 30% since last january. down a little bit this morning, 11 bucks on bell. hewlett-packard, well, that's had ups and downs for all kinds of reasons, down 40% in the past year, up 30 cents as of this morning. let's move on to apple. the u.s. is the apple's number one market. tim cook doesn't think that's always the case. china would be number one market. he didn't say exactly when. he was interviewed by china's state-run news agency. he didn't mention a cheap iphone for the market. look at apple right now, please. 11 locations in china and hong kong and one day, tim cook says, apple's major market will be china. down 4 bucks, 519 on apple this

morning. vice-president joe biden meets with the video games industry, free speech. and yesterday he met with the n.r.a., but the gun rights group says the primary focus of the meeting was restricting guns, quoting now, we were disappointed with how little this meeting had to do with keeping our children safe and how much it had to do with an agenda to attack the second amendment. >> the n.r.a. reported it's gained more than 100,000 new members since the sandy hook shooting less than a month ago. joining us now is kirsten powers from the daily beast and carol roth, radio show host. start with you, kirsten. i think that the president will use an executive order to ram through restrictions on assault weapons, high capacity magazines and universal background checks, i think he'll do it and win on this one. what say you? >> well, they certainly have talks about doing that, but remains to be seen. i'm the not going to be so certain that's what he's going

to do. i do want to comment on those, the things that the n.r.a. has been saying. i'm not sure what they expect the vice-president to talk to them about. they're the n.r.a. so it seems like he would speak to them about guns. it doesn't mean that he's not looking at other aspects of this, as you mentioned's meeting with the video game industry and hollywood people and hopefully a mental health component to this, but for the n.r.a. to come out and say all he did was focus on guns. when you're meeting with the national rifle association what you're talking about is guns. stuart: that's a fair point. i'm the not taking sides. carol, i'm saying that public opinion is running against the n.r.a. whether it's another story, but that the public is running against them. that's why the president will win on this, what do you say. >> when it comes to the public there's obviously a bifurcation in the court of public opinion. people who are very pro second

amendment and take the "shall not be infringed" part of the bill of rights very seriously and people who are acting emotionally toward these horrible tragedies and let's find a solution and focusing very much on the method as much as the madness. so, i do think that there is a very good chance here, stuart, that president obama will use this as a opportunity to politicize the solution, however, i do not believe that that solution will actually solve the problem at hand. and that's my concern for this. stuart: okay. i've got to move on because it's a great debate to have and it's very poignant at this moment, obviously. but i want to bring up the subject of treasury secretary designate, nominee, that would be, jack lew, a lot of fanfare and applause and most likely gets confirmed, that's an opinion. i say, let's start with you, carol, on this one, i say it makes absolutely no difference to president obama's economic

policy. which is tax the rich, do not cut spending and ignore the debt. first to you, carol. >> i think that's right. obviously, jack lew has been president obama's right-hand man and one of the reasons put out for his nomination is that he understands the mechanics of budgets. however, if we look back at the budgets over the past, whether it be four years, decade or even further, there hasn't been a balanced budget, so whether he understands the mechanics or not, it's still not solving our problems. as treasury secretary, he's sitting over the irs and the national debt unless we get some meaningful change here, which i do not anticipate, i feel like this nomination's not going to make a whole lot of difference. stuart: carol, i'm very glad you agree with me and sure that kirsten will agree with me. there will no change policy. tax the rich some more, forget about spending cuts and ignore the the debt. you know i'm right, kirsten, don't you? >> you're probably right. i hope you're wrong. i hope you're wrong. i don't want that end up being

what's happening. the truth is-- >> hold on, i really apologize for interrupting like this. you think i'm wrong. >> yeah. stuart: do you really think that nancy pelosi and the president are going to back off on their threat to tax the rich even more? and we don't want any touching of social security, medicare and medicaid. >> you're definitely right about the taxes going up and i'm hopeful you're wrong about the fact he's not going to address debt and spending and i think i'm just going to hold out hope that they are going to, you know, actually do something on that. in terms of whether jacks lew changes anything, you're right the president makes the policy. now, sometimes you can have a treasury secretary that can have an influence like if you have a robert ruben kind of person who had a heavy influence on bill clinton and got him to see how important reducing the deficit was. but obama seems to choose people who are just going to execute, not actually make policy. stuart: okay.

dream on kirsten, dream on. i've got to break in for a second. news just in from the news conference for the f.a.a. secretary ray lahood has been holding. >> we believe this is a safe aircraft, talking about the 787 dreamliner, of course referring to the boeing dreamliner, saying look, it's safe. this is what the f.a.a. is saying at the news conference, announcing the review of the dreamliner and that's the conference held right now. boeing stock is down a buck and a half on that. now this: snow in jerusalem, lowest temperature there in decades. lowest temperature in china in three decades. however, the u.s. saw its warmest year on record last year and we've got the greenies fired up about a carbon tax against global warming. listen to this. >> in europe and asia right now we are looking at an arc of severe cold. china and korea have a winter like in the early 1950's when the pacific first flipped into

its cold cycle got very, very cold in china and korea first. they're having a brutal winter over there. stuart: carol, and kirsten, real fast with this. you heard conflicting opinions here, brutal cold, china, europe, warm in america, here comes the carbon tax, kirsten, you know i'm right. >> i don't think -- well, i don't know that actually it's going to happen. environmental groups are definitely going to put pressure on the president. i don't think a carbon tax for global warming, but. stuart: nice try. >>. [laughter] i think they're going to use this global warming argument, an issue for a carbon tax and bad for coal, it's going to be bad for fracking and i have to say being here in chicago i'm loving global warming about 50 degrees right here in chicago. stuart: now, ladies and gentlemen, it's always fun listening to reformed investment banker carol roth and someone defending the leftest president

from the center of the democrat party, kirsten powers. what a joy it is this friday, ladies. thank you, appreciate it. i've got breaking news from the senate. jay rockefeller, says he will not seek reelection. he's a five-term senator, he's not going to seek a 6th term. let's get moving with the seven early movers. indian software company infosys sees more money coming in after posting stronger than expected quarterly profit. the stock is up nicely. look at that, about 18%. and the construction company kbr lowered the profit outlook, down goes the stock. ubs cuts j.c. penney and the analysts say it's a sell, not a neutral. down a buck, j.c. penney. retailer lowered fourth quarter and four year profit guidance and the stock is up. itunes, amazon is going to offer free digital versions of

purchased cd's and amazon holding close to it's all-time highs. >> and best bouy. and travel on-line now days american express the stock is up 45 cents. the dow is down 18. we are an overly medicated society and now the feds want to make it tougher for you to get vicodin. we've got a lightning medical round with dr. siegel next and bring up the flu shot debate all over again. why is it that every year, just for the past four, five, six years we're told, oh, you really ought to get a flu shot. i've never heard of that before. >> you should have a flu shot, stuart. if i thought i could talk you into it, i would have brought one with me and given it to you on the show. now, i want to read this, socialism is a philosophy of failure the creed of ignorance and the gospel of ending, it's

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use promo code: gethelp. plus get this document shredder free-- but only if you act right now. call the number on your screen now! >> several medical stories to talk to you about. doc marc siegel is with us. first story, the fda is considering tighter restrictions on vicodin, the most prescribed in the united states. and the fda wants it classified as a narcotic. do you think we should? >> i'm not a fan of the fda as now, in this case, vicodin, hydrocodone, responsible for hospital and era visits every year. stuart: a pain killer. >> the drugs in in group more

overdose and deaths than heroin and combined. and i give a prescription for somebody for six months, i don't have controls over it. by making it schedule two, more like oxycontin i have a month limitation and that's what i want. >> but it does work, doesn't it? . if i've got a toothache, i've got pain, vicodin works, doesn't it? >> the number one prescribed drug in the country. stuart: it works. but it's addictive. i want to know when i'm using it for acute pain not chronic pain. stuart: you agree with the fda on this one. >> no argument. stuart: a new reform, americans are nor unhealthy during their lives and we die younger than people in other wealthy countries and the gap apparently is worse over time. >> that's a statistic and americans have an unhealthy life style. we're too sedentary, don't eat

right and don't exercise enough. and an income distribution. in europe everyone is middle class and drive the same bmw. and in the united states, very poor, very rich and a big variance. stuart: do you want me to go to that awfully boring-- >> where you live? you still have a house there? >> i do not. let's not forget that we spend more on health and we get less for it and it's your fault. >> it's not my fault. if you're sick suddenly, heart attack, suddenly not feeling well, get to an emergency room, this country is the place for it. we're not so good on chronic illness. stuart: drink, drugs, income distribution, why we live unhealthy lives. >> agree with you. stuart: the flu shot, i'm not going to have one. >> you're losing the hallway discussions with other anchors, they're getting talked into it and you're still occupying na--

>> just because you gave megyn kelly a shot on the air life. >> did a lot of good. stuart: good ratings. >> i wouldn't get the same ratings, but to give you a flu shot. you're in great health. what about the people around you? and. stuart: you're giving me a guilt trip, all it is. >> very important that people get flu shots, the healthy to protect the unhealthy. stuart: can't shut him up once he starts, i'm not going to get the shot. >> a good match this year with the flu. stuart: i have the last word. no shot-- >> i'm not giving up. stuart: time for the gold report. we're down 20 bucks, that's a big loss, 1658 for the price of one ounce of gold as of right now. work hard, get ahead. that's the american way, right? but according to a new report we're getting more and more unhappy, why? because hard work won't get you

what it used to get you, so they say. charles payne, gerri willis. we know that charles is fired up about this one, he's bounding into the studio, lots of energy. charles: like my version of bounce? >> "varney & company" continues. ♪ ooh, ooh, ooh don't worry ♪ [ male announcer ] where do you turn for legal matters?

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>> the u.s. slips in the rankings of the happy countries in the world. we're now number 12. i'm quoting directly knew, due to a decline in citizen's perception that working hard gets you ahead. gerri and charles is here. that's directly contrairery to the american dream. i came over here thinking that, you work hard and climb, and it makes you happy. and this report says no, that doesn't work anymore. that's nonsense. >> are you kidding me? working is what provides you with a sense of self-worth. it gets you motivated in the morning, going in the morning. i don't know where this comes from. stuart: no, i think they're flat-out wrong. charles: i don't know if they're saying that working doesn't get you ahead, but the perception.

i love this report and going through it all weekend long and all of these categories, social changes and personal freedoms and essentially what it is an indictment on america, we don't trust each other? >> no, it's an indictment of the obama administration's view of america and the america this administration has created. >> it's definitely a role in it as well of course, but by the same token, at the top of the the list the scandanavian countries or european countries that president obama would like us to emulate and things that rank high there are the acceptance of other people, diversity, those kind of things. stuart: diversity in norway? >> i know. stuart: are you kidding me. charles: they ranked number one with diversity, we're like number 14 in diversity. looking at the list, ireland more diverse, sweden is more diverse. so, it's kind of a faulty report, but the gist of it is true. more americans are losing faith in what made america great. stuart: i'll give you that, but norway diverse?

>> i agree. stuart: new the at 10 we talk to the man who helped write the last assault weapons ban. will any new legislation really stop another mass shooting and what about assault weapons that are currently owned? what are we going to do with them if they ban future sales. and the governor of louisiana bobby jindal calling for no more state income taxes, he's positioning himself maybe for a presidential run? that's what he's calling for. we'll deal with it next.

stuart: new at 10:00 louisiana governor bobby jindal proposes no more state income taxes. eliminate them for people and corporations. make the state more business friendly. can use a presidential run? we are talking about that. video gamemakers join the gun control conversation at the white house. is an assault weapons ban inevitable? possibly by executive order? we have one of the riders of the assault weapons law with us momentarily. it is friday morning. the check the big board, 20 points off. the entire drag on the dow is made up by boeing. they have trouble with the dreamliner. that is dragging the dow down. put the pictures up again. gerri willis is with us, charles

payne and lauren simonetti on the floor of the stock exchange. for spot want to go to the gun debate. vice president joe biden says he is working on a list of recommendations for the president focusing on launching a universal background check restricting high-capacity magazines and allowing federal agencies to do more research on gun violence. he also says the president may bypass congress to get something done on gun-control. he is talking about using an executive order. this as the nra reported gained 100,000 new members since the sandy hook shooting which was less than a month ago. adam eyesgrow is assistant to senator dianne feinstein and helped write the 1994 assault weapons ban. welcome to the program, good to have you in the debate. would you tell me that if we renew this assault weapons ban, even make it more drastic, a real ban on assault weapons

going forward do you think that would stop future master -- massacres? >> by itself no. americans -- i am one of them -- are in love with quick fixes, we are in love with magic wands and there i say we are in love with silver bullets. no single public policy proposal is going to get at the problem to the degree that in the wake of sandy hook we have to and that is why the president is right to call for comprehensive proposals that have everything on the table. stuart: using an assault weapons ban would start pointing as in the right direction that america should go in? >> is a key component of a comprehensive set of what we hope will be solutions to very complicated problems. stuart: the next question, if you ban assault weapons in the future that doesn't do anything about the assault weapons which are in circulation right now. there must be millions of them. we cannot go out and take those

guns of of people. >> theoretically you can. let me be clear, that is not something i would propose. it is completely inconsistent with what i wrote in the newspaper to the effect that we have to have the participation of gun owners in this debate. but when you look at the experience of a 1994 assault weapons and even the research that could be done given the restraints on research the president and vice president trying to lift you find interesting data to be effective, these guns are harder to find, more expensive or use less in the kind of crimes and particularly in crimes the police face every day, bank robberies etc.. stuart: there is some perspective required here. i am told last year only 3.5% of the murders committed an america with a rifle used, more people died by hammer as a defensive weapon, more people were beaten to death with fists than with

rifles. maybe we should get some perspective into the long gun debate here. >> perspective in any debate is a valuable thing but let me put it this way. when the assault weapons ban was first written and as new ones are proposed we will hear some of the same criticisms we heard the first time around when we talk about what exactly is an awful weapon, what features if you will comprise those weapons. they are cosmetic. stuart: can i break in? that is the key point. how do you define what is an assault weapon? can you define it clearly for me now? >> the way the law did it and is likely going forward is a semiautomatic weapon capable of accepting or has integrated into it a magazine or potentially a fixed high-capacity magazine that also contains one or more of certain kinds of features like a forward handgrip for example and that is what i was alluding to. on the one hand you can say that

is cosmetic. on the other hand it is hard to spray fire a gun the way many shooters of these critics school incidents do without something like that so this needs to be studied and looked at carefully without the rhetoric getting in the way. stuart: i would say i think public opinion is probably on your side and i think the president will win this one because the public opinion has been changed by this shooting. my last question, it seems to me very likely that the president will use an executive order to get around congress and satisfy the public demand to do something and do something now. the legislative process would take a very long time, i suspect, and there will be an impetus for the president to get around congress and do it faster. would you approve of that? >> i will defer to real constitutional scholars and say it is not necessary. the original assault weapons ban passed in november of '93, passed the house in may of 1994

and signed into law as part of the crime bill in august of '94. we can take that amount of time to have a thorough public policy process. there was a recording made of the 911 calls at sandy hook and one of the people on the scene, first responders eventually said call for everything. we don't want to be in those circumstances again and that is what we need to do now. stuart: we wanted to have a good debate on this issue and i am sure we will in the future but you have contributed to it mightily and we appreciate it. any comments? charles: we are missing an amazing opportunity to talk about real issues here. there is not even going to be a ban on assault weapons. secondly, the culture where one person, i'm not talking sickos, the ones that get the headlines every day when you pick up the paper, two kids shot each other in the bronx over a pair of sneakers. that is a culture permeating in our society. and look at a rap record that

gets 1 million views on youtube that talk about that violence and we are not discussing that at all. stuart: these proposals would make no difference to the gun violence in our inner cities, none whatever. >> and executive orders wrong way to go. this issue is so important to gun owners, so important to americans, you have to have a real debate, you have to have our elected representatives, all of them, not one of them. obama is president but he is not the king and he is not czar and this should not be handled by an executive order. stuart: well said. charles: i hope the car works. stuart: we are talking last hour, really big pr trouble for the boeing 787 dreamliner. this morning the faa launched a special review of that plane's manufacturing process and other aspect of the plane. following several incidents with the lithium ion batteries and wiring. rich edson joins us from

washington. i am characterizing this at the moment as a pr problem for boeing because the 787s are still going to fly which implies no safety risk for its passengers. >> this aircraft has gotten plenty of press, years behind schedule, subject to a fight with the national labor relations board and most recently battery packs catching on fire in boston. is not a positive image for people who may be squeamish about flying both e.f. a says the aircraft is safe and will continue to fly. ray lahood has no reservations about taking a flight and boeing says every new commercial airplane rollout has the shoes and you will continue to work and out with regulators. stuart: this is the most important new jet in a generation at least. that is why this particular series of incidents bear investigation, so much prominence. am i right? it is the most important new plane in a generation? >> absolutely. it has been 20 years since there

has been a new career for rollout like this, a generation as you point out and all -- callie fishing to was and how much longer routes could fly and how much fuel that would save has been bogged down by delays and labor fights throughout the way and this is the latest. stuart: many thanks indeed. i want to go to lauren simonetti on the floor of the exchange and what boeing stock is doing. >> investors don't like these issues, 2.3% now. started the week at 77-69 if they give you an idea what it has been like for boeing and because of the decline is a member of the dow 30 making up just about half of the decline at 25 points. stuart: thank you very much. let's get to our new at 10:00 score. louisiana governor bobby jindal proposing an end to the state income tax to make the tax code more friendly to business. i think it is a wonderful idea

but i have to think in the back of my mind this man is setting up a run for the presidency. do you think? sandra: states like louisiana, oklahoma are competing with texas who have state income-tax and is bringing in companies, employers by the droves, they have an overall low tax base. it is smart politics but at the end of the day, practical. stuart: i shouldn't be so cynical, making a run for the presidency. it is good business. you want to compete in the southern united states of america why not get rid of your income-tax and bring people in? sandra: it is 12% of you at the local income-tax, calif. -- stuart: 50.3 in california. charles: proper 30. i think it is a great idea. not just even keep it to one geographic location. i am one of these people who believe the more money businesses and individuals get to keep that they have earned

the more the overall economy will prosper. stuart: what a radical difference, liana and taxes versus california and new york. who is doing well and to not? charles: income inequality that liberals always talk about is actually higher in these high tax states. it proved that higher taxes don't make it better. makes it worse. charles: stuart: we love you. i have a big story today. california governor jerry brown says he has balanced the budget. he says for the first time in years california has no budget deficit and it is all thanks to tax increases and spending cuts. you are buying this or are we going to put governor brown back on fantasy island? gerri: fantasy island my friend. problem is pension debts. we are not even talking about it. stuart: that is not included. gerri: if you are a family of

four and you make $50,000 and you say i am paying my bills, i paid my heat bill and my electricity bill and paid for by phone but my house is worth $1 million and my monthly not on my mortgage is whatever it is, $5,000. that is california. they don't have the money to pay their bills. stuart: steve malanga told us this morning that of all the extra money they propose to spend on education in california half of it will go to the teachers' pension fund the. is not going to kids in schools at all. charles: kind of political -- you would think it would be over. i spent a lot of time in california in the last three months. even rodeo drive, you go around the corner, i can't believe how many empty storefronts there are. the place is bad, really bad. that are nice spots, silicon valley doing well, hollywood doing well. either mega rich or very poor. gerri: gimmick and stake outs.

stuart: imus and newport beach doing very well. is it time to pay college athletes, the n.c.a.a. just took a step to do just that. do you support it? sports agent eugene lee is next.

stuart: ford stock hitting a 52 week after announcing it would

hire 2,000 white-collar salaried employees this year. this would be the most salaried workers the company has hired a decade on top of the new cars the company plans to introduce. ford is jumping $14 a share. bad news for you, toys r us sulfuric place than the year before. same-store sales down 2%. a weak holiday sales on the lack of demand for video games among other things. the company also says hurricane sandy plate rolling wheat sales. best buy reported weak holiday sales as well. numbers out show same-store sales were flat, flat is better than expected. next, should college athletes -- college sports agents with an agent. the real thing next. what are you doing?

nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my...

this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clients in today. [ male announcer ] save on ground shipping at fedex office. stuart: in new push in college sports to cover costs beyond tuition, books and fees for n.c.a.a. athletes. on top of their full ride scholarship, how about a stipend? that is the proposal? nfl agent eugene lee joins us as he often does to comment on football and occasionally sports too. welcome back. this is a proposal and it will be a stipend. i don't know how much better is a limited stipend like spending money. you approve? >> i approve 100%. the student athletes, a lot of which come from lower-income

background are generating huge revenue for schools, the estimated payout from a title game on monday which included my alma mater was $44 million to $48 million between notre dame and alabama. stuart: it would be split between notre dame and crimson tide alabama? they won. they split that money and you are saying there's such huge amounts of money involved at least some of its should go to the players in the form of a form of pay. you approve of this? >> i do. stuart: is a limited thing, it is a stipend. doesn't amount to a couple million-a-year. >> spending money. the argument goes the demand of being a student athlete in a high revenue generating sport like football or basketball you don't have time with practices, school work, travel to away games you can't have a part-time job. stuart: why should an athlete who is generating millions of dollars of revenue for your

employer, why should they have to scratch around for spending money? that is the argument. >> that is why a peripheral benefit of the stipend is you limit the -- and chris kirk is, agents and boosters who prey on student athletes from lower-income backgrounds by offering inducements and gifts, by offering athletes stipends, you are really limiting the influence of unscrupulous characters. sandra: there is a moral issue. you cover the practicality of it but there's something obscene about athletes from lower income families, they may be african-americans, who are working their keisters off for millions of dollars, over the last seven years the budget at a single school at one of these conferences, $80.4 million, it doubled over eight years and these kids get nothing. stuart: i agree with you and i'm sure you gene does as well but

we have the issue of the stipend. sandra: pay them a salary. stuart: do you approve of full salaries for these guys? millions of dollars for college athletes? >> i do not. i think you're going to run into a slippery slope argument. if you paid these individuals based on their performance on the field how you differentiate? pay higher profile player less -- more than a lower player? star quarterback more than the offensive linemen? that is a slippery slope. stuart: if eugene lee had his druthers how much would you pay college athletes, football players? >> where they can enjoy the full -- stuart: don't give me that. 50 grand? 100 grand? 24,000? >> i would pay them $2,000 a month. stuart: that is not much with a college budget. sandra: kids deserve real salaries. doing the heavy lift. stuart: and not participating in the big money available to college football.

>> you are going to run into an issue with sports across the board. this has been discussed too. do you pay more to higher revenue generating sports than football and basketball or do you pay less to sports like volleyball, golf? stuart: the man hears as head of a stipend, maybe pay $2,000 a month in the form of a salary but don't pay the really big bucks. you used to play football. what is your opinion? >> you got to pay more the 2 grand. stuart: 3? charles: i am not sure what the numbers. u got to pay more than 2 grand because they are vulnerable to one scrupulous people you talked about. that is not enough and still doesn't reflect gerri willis's argument. chris cotter was here he would say getting the 50,000 or 1 hour -- $1,000 education you have to add to the equation too. they countered this. i always believed they should be paid something. stuart: why not let the market work? why not a colleges bid for players? i will give you $10 million a year if you want to be my

quarterback. charles: they have supreme programs and you go through these programs that have a chance of going to a top draft when you get drafted by the pros essentially it is the bidding process without the money but there are these boosters behind the scenes who dole out big time. >> full scholarships to not cover the cost of college nowadays. meals are not included, clothes. stuart: you got to -- you won't go as far as a full market oriented salary. >> you make it even across the board. remove the slippery slope. stuart: i would love to hear what our viewers think of this. i am a total outsider to college sports. i know markets. chime in on facebook or varney@foxbusiness.com. should we let the market work? should we offer competitive salaries to college athletes, yes or no. not bad. thank you very much. your players doing well. glad to hear it. california back in the black. jerry brown celebrating.

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charles: your losing holly discussions with other rankers and you are still occupying that ivory tower. stuart: because you gave megan kelly a shark on the air live -- >> they la public good. stuart: dr. siegel is convinced i am making the wrong decision by not caving and having a flu shot. you can watch more connell:. we start at 9:20 sharp. j.c. penney loser, why? >> the s&p 500 down 5%. the reason is no sales anymore, not quite working. they had a cat from mutual to sell, also giving them a price target of 13. just pointing that out. stock is at 18 right now so that is considerably lower. stuart: it is indeed. thanks very much.

take a look at this piece of american history. paul revere, the man who yelled the british are coming at the start of the american revolution is his teapot going up for sale. find out how much a piece of americanday is worth. we will show you a 10:45 this morning. for years i have been referring to california as the formerly golden state. i said they are looking for a bailout from the democrat friends in washington but thursday governor brown said the opposite, no deficit for the third time in years. he blocked those who called california failed state, people like me. here's my take. governor brown deserves credit for writing a very rough storm. his state has come back from a $26 billion deficit but hold on the second. has it truly come back and at

what price? first governor brown is conveniently leaving out california's massive pension debt from his state budget and leaving out the repayment of some of the special borrowing he has done in recent years. he has also received a tax windfall for wealthy people catching in profits last month and the uses very optimistic projections on economic growth and very optimistic projections on the savings from service cuts. there's a lot of smoke and a few mirrors here. sorry to deflate the optimism. and then look at what has happened to the state. the price it has paid. massive unemployment, an exodus of the middle-class and chronic degradation of government services. all of that the governor brown could submit to the demand of union and pay their lavish pensions. the brown policy was way offs and cuts for the young so state worker retirees could get their money. overall california has paid a

heavy price for the financial progress governor brown is claiming. it is legitimate to say the former legal and state and what happens in the future? of tax revenues disappoint and grow stores what happens? throwing pension debt and california may have told out the begging bowl to washington. i was right.

stuart: let's get back to the gun debate. an executive order to do something on guns still very much on the table. attorney jenkins is with us. welcome to the show. this is your first time. an executive order. first of all, the president could bypass congress to get something done, have gone controlled by executive order. constitutionally, you are the lawyer. can he do that? >> he absolutely candid presidents all the way back to george washington had used the executive order to implement laws. president truman used and is exceed of order to desegregate the military when congress refused to act. in this case not only can he do it but there's a supreme court case, 2008, district of columbia versus supreme court held that

laws that impose reasonable gun violence our constitutional. it depends on what could be in the executive order. we don't know yet. if it's something reasonable requiring a federal data base and federal agency to share information for people who are mentally ill. stuart: that is legitimate. he can do this. >> will there be a lawsuit, checks and balances? people will go, they will sue but that litigation will be tied up for years. stuart: he could impose the executive order and it would be in place even though it is appealed in the court. >> depending on what he proposes. stuart: he can do it. next question. should he do it? >> i don't know what choice the president thinks he has. depending on what he proposes can he pass legislation in the house? i don't know if that is possible. a lot of people are saying he is going to circumvent the

legislative process. stuart: should he? >> he may not have the choice. stuart: is your opinion? >> depends on what he proposes. right now the public is not ready to see restrictions on certain types of weapons, and are ready for the president to say you cannot alone as semiautomatic weapon. that would create a huge amount of back lashed and people are not ready for that but as a former prosecutor rider don't think people should have certain guns. stuart: suppose the president said by executive order a one everybody to have a background check? you think you should do that? >> absolutely. common sense. stuart: earlier gerri willis is here, gerri willis was saying, don't want to paraphrase your argument but you said this is such an important issue which should be discussed. gerri: this is contentious and americans feel strongly about the issue of guns and gun control and what we should do. a dubee elected person, the president deciding how to handle

this issue. should be all the elected representatives. stuart: you should not be clamping down on free expression of democratic rights. >> i am not doing that. in the wake of what we see happening recently especially at sandy hook people want something to be done and they want to see an immediate reaction. [talking over each other] gerri: why you say americans are not ready for it and people want it? let us decide. >> they want action now. i think with congress the way it is now we are not seeing people working together in washington to bring about the change we need. so i think the president taking certain action, it may be a positive step in the right direction. this is just one aspect of it. so many areas need to be addressed to gun violence. stuart: for what it is worth i think faith is right in the sense the president will issue and rejected a border -- executive order because there's public demand to do something. whether it is the right thing is

another thing entirely but the president to do something and you could not put this through congress with illegitimacy. >> the right thing is -- stuart: we have charles here. charles: you keep saying that the president is going to be forced to do this because congress won't work with him. what you are really saying is congress won't bowed down to him. congress represent their constituents and they are representing people who are our saying there are certain lines we want to draw. i don't understand the president should issue executive orders if these other guys don't bend down to him. is that the definition of compromise? >> let's go back to president truman. when he issued the executive order to desegregate the military. look at the number of people opposed to that. do you think the president bowed down back and? to stand for what he believed was right and look at what happened, right thing happened. charles: the right thing now is to say to all these people out there, three hundred million

guns are owned, i am going to take away these rights from you? this is why people are afraid. [talking over each other] stuart: he is not taking away their rights. [talking over each other] charles: let me explain what i am saying. the reason people are afraid is he is not going to come out the gate and say we will repeal the second amendment but there will be a series of steps that ultimately did that and if it begins with executive orders that make people even more afraid. >> i hope people don't feel that way. it depends on what is being proposed. if it is something that is reasonable we can all agree at this point that the mass killings in this country, guns are now the weapon of choice. we can agree this is an issue that needs to be addressed. i am not saying takeaway people's guns. the issue is not to take away their guns and law, but certain things we can do common-sense things that we should -- [talking over each other] gerri: even as gun sales are up.

[talking over each other] >> those things are directly related to each other? i don't know their research is out there. stuart: to sum it up you think the president should issue an executive order which for example would make everybody have a background check, universal background checks? are in favor of that. >> yes i am. stuart: you are not. gerri: universal checks is a different question. stuart: the question is executive order. gerri: no. charles: the focus on guns is so misguided and so -- [talking over each other] charles: i hate the we using -- i am telling you we should be talking about behavior, he is afraid of it, politically incorrect and doesn't want to hurt anybody's feelings who voted for him. registration thing, that is okay. stuart: we have got -- gerri: not executive orders. don't do it that way.

stuart: that is the last word. thank you for joining us. auld good stuff. we appreciate it. here it is again. we will play the harp music. a piece of american history. american patriot paul revere's teapot going for sale. that is why we have got it on the show. how much would be selling for? we will tell you next. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade.

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stuart: two more incidents overnight sparked the and a a to launch an investigation how the dreamliner is manufactured and its batteries and electronics. several incidents this past week and there was a news conference earlier today when the faa said it believes the 787 is safe and the planes will keep flying but boeing stock is a problem. down $2. merck saying it will remove its cholesterol drug after regulators in europe ruled the marketing of the drug should be suspended. merck is telling doctors to stop prescribing it. merck stock not affected. facebook shares on an upswing, keeps on going. morsi the company announced it would announce a surprise at an event next week. it is very much a mystery.

facebook is up $31.66 and the british coming. paul revere's teapot on sale next. ♪ reach one customer at a time? ♪ or help doctors turn billions of bytes of shared information... ♪ into a fifth anniversary of remission? ♪ whatever your business challenge, dell has the technology and services to help you solve it.

maybe you want to incorporate a business. orrotect your family with a will or living trust. and you'd like the help of an attorney. at legalzoom a legal plan attorney is available in most states with every personalized document to answer questions. get started at legalzoom.com today. and now you're protected. stuart: netflix is moving higher again. why is it moving up and where is it? >> it is up 3%. based on the news the news is a federal appeals court has ruled today it that netflix got an unfair advantage from the way the postal service processes its dvds and it is above $100 right

now. stuart: we will take that. thank you very much. did it again. >> they were matching today. stuart: i should get -- okay. thank you very much. time for a great segment we run frequently on the so-called old money. today we have some history for you. not sure i should be joining in this particular historical event but here it is. a teapot made by the silversmith -- made by -- made by -- i didn't know that. let's introduce here with us gina sloan of christie's. paul revere, the man himself made that teapot. it wasn't made for him. >> he had a shot before the revolution, went on his famous ride in 1775 but after that he actually fought in the revolution for five years and he made this virtually the year he

got back from the war and made it himself with his hammer but doubled its output. stuart: our viewers cannot see the exquisite detail. that is as close as we can get but ladies and gentlemen, i am going to say the primitive tools available at the time, that is exquisite, that is terrific. >> they didn't have sheet silver or factories. was made with a hammer. stuart: the expected british buyer? >> never. you have to really care about american history. stuart: would you sell it to an englishman if he were to big? yes you would. >> i am required to. stuart: he said the british coming, watch out. here they come. >> he was in the tea party. stuart: how much with his teapot made for him, go? >> i expect it to break record at $150,000. stuart: for a revere teapot?

how many did he produce? >> 40. but there are only four and others of this beautiful model. the bowl with the cylinder, it is typical revere. almost like a signature. you would recognize that as his. this is a beauty. stuart: the wood and handle. >> so you don't burn your hand. stuart: replaced by the original? >> there never original. stuart: there goes the value. >> i disagree. stuart: did you say 250 dr. oz and the addition to $50,000? >> i expect to sell it beyond that range. stuart: fantastic. you have a couple other items. >> i thought would bring some granny names. paul revere and the nineteenth century tiffany's. they burst on to the scene. stuart: this is an inkwell. >> this is an inkwell. a piece of art is an inkwell.

it is very creative. this is why we know the name tiffany today. they came on the world fair in the nineteenth century. stuart: did a man named tiffany make it? >> the firm was tiffany at the time and had a succession of presidents. edward moore was the design director in this period. great genius. stuart: this is an inkwell and it will sell for? >> around $75,000 and enameleding is special about it. stuart: i don't see any enameled. >> you see the colors? in the islamic paste. you see some colored hair. stuart: the final object, not finger, object. rocking on the set. how much? >> that is part of a three peace peace, japanese, really put tiffany on the map in the 1880s. this one with its taut and sugar and cream together will be $150,000.

stuart: what is japanese about that? >> the technique of the colored metal, the naturalistic design, the middle tumor with this laws, the sugar in side. charming object. japan had just opened to the west when this was a. this would have been radical design, contemporary art. stuart: you are selling this a litmus the silver because you are head of silver. >> definitely solid silver. stuart: $100,000 for the entire set. the inkwell is roughly $60,000 to $90,000 and paul revere's handmade teapot made by himself, one of only 40 known to survive, 2 ended thousand dollars. >> that is correct. stuart: when is the oxygen? >> january 24th, next weekend. stuart: william byers out of london? >> for tiffany of this stature absolutely we have foreign buyers. stuart: the english will be there. >> an english pop like this work

about $2,000. stuart: that is english? you really ruined it. you want to come back on this program? gina sloan, really appreciate it. good luck. thank you. president obama addresses to all-important questions surrounding his treasury secretary nominee about the question about the man and his signature. we will deal with it next. tdd#: 1-800-345-2550 when i'm trading, i'm so into it, tdd#: 1-800-345-2550 hours can go by before i realize tdd#: 1-800-345-2550 that i haven't even looked away from my screen.

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stuart: we were going to tell you about jack lew at signature but we did that yesterday so let's move on to this. the ridge can't be too worried about the economy does rolls-royce sold more cars than ever. 3500 in 2012. doesn't sound like a lot of cars but the cheapest is $272,000, therefore big revenues, big sales. why are you burying your head for this story? charles: i love it. these are so beautiful. stuart: when you got one yet? charles: not yet. gerri: you know what i could do with $272,000? stuart: it is a german car. it is made in england but you told me this during the break. rolls-royce is owned by bmw. look at that beautiful machine. doesn't that say i am rich and

powerful and successful? i am casting a long shadow. charles: it really does. rolls-royce dealer across the street from my high school used to cut class and my friend would smoke. i would go straight to the rolls-royce dealer. stuart: you are a good american. charles: a nail salon. what the heck? stuart: with immigrants running ability highlight reel is next.

stuart: friday morning. the highlight reel. it is a great debate to have and it is very poignant at this moment. obviously. >> it is so important to gun owners and americans. let's find a solution. charles: there will not be a ban on assault weapons. they become harder to find and much more expensive.