tv Varney Company FOX Business March 11, 2013 9:20am-11:00am EDT
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imus: warner, nobody voted for me. i own the dallas cowboys. we're all over at the-- . [laughter] >> maybe that's why, jerry. [laughter] >> we were celebrating. you know, deirdre gets mad -- i did that in the car. connell: oh, god. imus: driving to crockett, texas and she gets mad because she said sounds like a pervert. >> like he when you were dating. imus: that's what jerry jones-- she doesn't know what jerry jones sounds like or cares, that's what he sounds like. she says don't do it in the car. and i looked over, and i said you've got a real noise-- >> that's it. bernie: she had a flashback. warner: so long, jerry. imus: and anyway, well, on the fox business network, we've got ole "varney & company" coming up and on the radio frank rich. here is elizabeth cook.
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♪ ♪ imus in the morning ♪ >> you're going to like this. we're starting a new week and in ten minutes stocks look set to go up some more. good monday morning, everyone, yes, the early indications are that you will at least hold onto the big gains you made last week. armageddon hasn't hit. d.c. is at least exchanging ideas. the jobs report was encouraging. and ben appears willing to keep printing money. and don't forget profits at near
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record levels. add it all up, it is not a recipe for a big selloff, even though we're coming up on a series of all-time highs for the dow. i say this is a pretty good way to start the week. yeah. "varney & company" is about to begin. ♪ [ 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. ♪ from td ameritrade. all stations come over to mithis is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one.
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>> hi, good monday morning, everyone. question, is president obama really sincere in his effort to strike a grand bargain before the march 27th deadline? will he shift his position really? after sharing meals with the republicans last week the charm offensive continues. three more meetings this week on the hill. now, congressman paul ryan, he was among those who met with barack obama last week. he's hoping that the president is being sincere. >> we have very good exchange, but the proof will be in the coming weeks as to whether or not it's a real sincere outreach to find common ground. stuart: that's the question, is he sincere or shift his position? in the interview ryan pitched
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his budget plan and balance the budget in ten years, but includes a repeal of obamacare, that's at best highly unlikely, is it not? in a couple of minutes, a senator will join us, one of the republicans that met with president obama last week. does he think the president is sincere about making a deal? will he shift his idea on the key issues? 9:33 this morning. now this, another hit to apple's coolness? samsung will unveil its new galaxy 4 this week and there's a lot of buzz surrounding a possible new feature. it's called samsung eye scroll. and would sense your eye movement to scroll through the screen. remember when apple's announcement got this kind of buzz? well, now it's samsung's galaxy. more on the eye scroll, by the way in the next hour. dr. marc siegel, would you believe some on the production team believes it's bad for your eyes?
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this rally is going to continue. we've got a lot of smiles around the studio this morning. let's bring in the managing director at brandywine global. he manages personally 4 billion dollars. and does this rally today, not long-term, are we stiil going up? >> we're headed up the next several years, i believe. the u.s. economy has three things working for it. natural gas, and oil production trading creating jobs and competitive manufacturing and the housing pickup, all sorts of knock on effects. >> you haven't mentioned ben, you haven't mentioned president obama, nothing. this is just energy-based and you see us taking off? >> we're optimistic about the private sector, whether it comes from jobs, whether it be manufacturing like i said, and we have the strongest financial system in the world. so we're really optimistic about that. stuart: patrick, stay right there for a second and we're going to ask more questions. you see this continuing. thank you, patrick. >> now 30 seconds to the opening bell, in the news back from the government numbers out this
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morning. but there has been, i'm not going to say movements, but there are opening statements on both sides in the budget debate. you may have heard paul ryan earlier, he's got his position, and the democrats staked out their position and so wide apart they are talking, maybe that's a positive for the stock market. we'll see. the dow industrials now open for business. we've opened ever so slightly lower, but look at the level where the dow is. almost 14,400. that's where we are, so there's no big selloff this morning, at least not so far, following a-- well, i think it was four straight records last week. so, smile, everybody, you're not out of the money at this point. you're still going a little higher. right, let's look at the big tech story that we're watching for you all week long. it's samsung's new smart phone called the galaxy 4. unveiled on thursday, a lot of buzz around it. energy on something called the samsung eye scroll. that's a possible new feature on the phone. it would make it so your eye
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movement, as your eye moves, it would move the screen, okay? now, that's interesting, is it not? so one company that's keeping a close eye on that announcement of course is apple. it's down this morning, 428 on apple. you remember when apple used to get the same kind of buzz that now goes to samsung and this iphone, and this i-scroll 4? the company's been steadily losing the market share to samsung and apple is trading at 428. i want to bring in nicole for a second. am i going overboard on this thing? it seems to me that the eye scroll is very interesting new feature and it's gotten samsung's buzz. go. nicole: it certainly has. and something completely new brings buzz and interest. if you're trying to spy on someone's phone. let's say i'm trying to look at the phone does it scroll with my eye or just your eye? that's my first question. and the analysts are on board
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and continue to cut apple just talking about, you know, the lack of the iphone sales and the like. stuart: okay, 428 this morning on apple. thanks, nicole. we're down 11 points in the dow industrials, down 13, that's not a selloff by any means. of course we'll get retail steals numbers this week and could tell us if the positive jobs report from friday is for real or not. nicole, you're looking at dick's sporting goods. i'm not sure that's a big indicator, but it's way down. why? >> it's way down and they missed the numbers and did not estimate the demands properly. just moments ago this particular area was very crowded this is where dick's trades and it was packed and you can see it's down, 7, 8%, not a good quarter for them and they state that they misjudged the demand for cold weather merchandise due to mild temperatures in the season. big picture, you didn't sell enough stuff. stuart: how about that? all right, nicole. now we've been talking a lot about the president and whether he is sincere about his outreach
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to republicans. is he really going to shift his position to get a grand deal? joining us now is senator john hoven republican from north dakota. senator, you had dinner with president obama last week. can you give us a sense whether you think -- i'm not suggesting he was insincere. but do you think he's prepared to shift his position on the key issues? >> good morning, stuart. good to be with you. well, we'll see. i mean, we'll see what he does over the next months. if he stays engaged with congress, then i think there's a chance we can get the kind of big deal we need. if he goes back touring the country, saying, oh, no, congress is the problem not him, then it probably is not going to happen. stuart: do you think he's prepared to give any ground on entitlement reform? and i use that expression deliberately because entitlement reform is changing the structure of medicare, not just tinkering
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around the edges. >> he has to if we want to get the reform he needs. and there's room to do it. we look at the cbo scoring and being creative and coming up with ideas, but it's going to take that to get something done. stuart: but i need your sense of this. do you believe that the president is willing to do real medicare reform? yes or no? >> well, maybe. i hope so. here is the thing, stuart, we're going into the budget process. house as you saw congressman ryan put forward a budget, the senate will pass a budget, but the democrats in a senate will pass a budget, 51 votes, they don't have tax increases, it's going to be hard to reconcile those budgets and you have the debt ceiling limit which comes in may 1. that creates a lot of pressure to get a deal to address these reforms. so i hope so, but we'll have to see. stuart: in my opinion, may i express an opinion? we've got crisis fatigue.
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our audience is fed up with this and i don't think we're going to see any serious movement by friday of this week. i think we're going to be in exactly the same position. will you say where you stand on this? >> on friday what i hope we see by friday is that the senate has moved forward with a continuing resolution that includes flexibility, a number of appropriations bills that we're putting together, i'm on the appropriations committee working with democrats in a bipartisan way to make the sequester reductions, but make them in a more thoughtful way so we minimize the impacts. that would be a strong sign of bipartisanship and i hope that continues into the budget work, and to get the kind of reforms that we're talking about. stuart: are you hopeful, yes or no? >> yes. stuart: oh, all right. all right. well, we were waiting for it. . [laughter] that's john hoeven of north dakota. >> thanks, stuart.
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stuart: a look at the hedge fund names considering leaving new york for puerto rico. john paulson reportedly looking to take advantage of a puerto rican law that lets new residents pay no local or federal taxes on capital gains w that loophole, he would lower his tax bill by about 9 1/2 is that billion? is that for real? 9 1/2 billion dollars? sounds like a lot of of money to me and we'll check that number for you. new york has one of the highest state income taxes in the country. our next guest let's bring in. you've seen him. managing director and portfolio manager at brandywine global. you've already said that you think this market rally is going to continue. your company manages 42 billion dollars. that's where you're putting your money where your mouth is. >> right. stuart: so tell me which-- give me stocks you think are going straight up. >> i don't know about straight up, but when we look over the next three years at the financial sector in particular and a lot of investors have been
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scared of takes a long time after the crisis of 2007-2009 to get back into it. our largest position is j.p. morgan. stuart: you like that of all the financial stocks that's the one you like. going up. it's now at 50 bucks a share. >> exactly. stuart: give me a target. >> we think j.p. morgan more than $7 a share. so, the way i look at it, but a 10 p e.on that, small fund by any imagination, that's 40% and we think there's probably more in longer term. another one we like metlife as we look at life insurers, both the banks and life insurers will benefit from rates rising and i think that's going to happen the next several years and they'll make more money both are wealth management companies and very large positions in our portfolio. stuart: you mentioned earlier that part of this rally is based on energy. natural gas, we've got a lot of natural gas, we've got oil. americans, jobs, et cetera, et cetera. >> right. stuart: you like bp. >> we do like bp. we like bp because of several things, one, it's a cheap stock.
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we tend to like stocks that have been hated in the past. if you've been spilling oil in the gulf of mexico, you hate it. the investors think about the bad things and headlines that the stocks get too cheap. stuart: didn't bp have to sell off a lot of of assets? >> they had to sell off a fair number of assets, but i tell you, bp has one of the best balance sheets in all of the the oil industry. incredibly robust cash flows so we look at it and the other thing we like, natural gas is very cheap, which is great for consumers, it's great for manufacturers, it's great for jobs coming back on shore, but it's not good for producers. whereas oil, you look at the gas pump, as everybody knows, very high. bp is more skewed towards oil than any other major energy companies. that's one of the things we like, aside the fact is very cheap. stuart: and you think these companies will grow into the
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future. >> thanks for having me. stuart: according to the wall street journal, millions of u.s. companies are taking money they make overseas and keeping that money overseas, off shore accounts and make no mistake, president obama wants to go after those profits. my take coming up after the top of the hour and big money. we start with citigroup, it has been upgraded to a buy. this stock is trading at slightly lower. disney's new remake of the wizard of oz made 80 million dollars at the box office this weekend, despite some bad reviews. that stock is up just a fraction. disney near all-time highs of course. there were unexpected side effects in a study for merck's new drug. and goldman sachs upgraded by j.p. morgan. goldman sachs is down. and genworth stock could double.
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they're up. a new stroke prevention device from boston scientific showed mixed results in a new study, that stock is down just 13 cents. not much movement there. foot locker getting out and cut this morning, it's down just a fraction. our early movers not moving that much and so true of the overall market, look at this. the dow industrials opening 18 points lower, in other words, last week's big gains holding this monday morning. time is money. we've got three big name stories that we're calling out on the next hour, number one, greenies love to tout electric cars being good for the environment. president obama pushing to have a million of them on the road by 2015, but bjorn lomberg, frequent "varney & company" guest, says making electric cars leaves a bigger carbon footprint than the fuel powered all the tifls. mo do you think that college is worth the price? here is where your money is
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going, six-figure, sometimes seven-figure outgoing pay for professors. where it costs $60,000 a year, we have an nyu professor outspoken critic of this practice and he'll be with us at 10:25. a real estate developer buys a new york city landmark to turn it into condos. did he get a sweetheart deal from the city to profit for the rich perhaps because he's an obama supporter? we'll ask don peebles. the price of oil, we're down about 65 cents. one company looking to cash in on the business of medical marijuana, with pot vending machines. could this even be a big business in places where recreational use is realized? like colorado? could other prescription drugs be dispensed in this way? and the company who makes those machines joins us next. ♪ announcer: where can an investor
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>> my guest this morning is the chief executive officer of med box. his company is planning to set up 30 medical marijuana vending machines, pot vending machines in the city of san diego. here is bruce bedrick. welcome to the program. i want to go through the mechanics, first of all, if you get the pot machines in san diego, i walk up there. if i've got a prescription, do i feed the prescription into the machine and then pay and out comes my weed. is that how it works? >> no, it's nothing of the sort. but first of all, thank you very much for inviting me on the show. stuart. let me take a moment and just clarify so you have a better understanding of how this process works. first and foremost, med box is a
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traditional health care company. we've-- >> hold on a second, bruce, i'm sorry i've got a limited time. >> got it. stuart: how do i get the weed out of the machine in san diego. >> you don't. stuart: if i've got a prescription. how do i do it? >> you don't. this technology that we have sits behind the counter as is a tool for pharmacy staff. so if you were a patient, you come to the store. our technology is the safest most secure most legally compliant way to store inventory control and dispense medication. stuart: so the machine is not outside, it's not standing outside. >> no, no it is not. no it is not. stuart: okay, but what i'm taking away from this is, you've got a vending machine of sorts which could be used for other pharmaceutical products in the same way, right. >> yes, that's correct. we have a tremendous value proposition for traditional pharmacy and traditional health care. the technology and the patents we have for automated for
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prescription pharmaceuticals should impact everyone certainly on this continent with the way they acquire their medication from a retail settings from cvs and walgreen's, doctors, large employers, military, prisons. make it more safer more secure, certainly more cost effective and convenient to get the medication. >> if i walk into the pharmacy and they've got my records on the book and know that i'm entitled to get marijuana. what do i do. give them my fingerprint and they go behind the counter, and open it up and give me the weed, is that how it works? >> to some degree. i'll clarify for you. you have to go through a security door into what they call the dispensing room where you will be able to evaluate the medicine that you want, whether it's the actual medicine herb or if it's an infused product. once you choose what it is, in
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our particular locations or our client's locations you apply your fingerprint to make sure it's you to avoid and protect from fraud and then, once you make that choice fingerprint goes down, slide your card, the staff worker or the employee presses a button, the machine dispenses the packaged, pre-packaged medicine and handed over to the patient. stuart: okay. i think we've got the idea. i'm sure you can apply this to other pharmaceutical products as well and that's why you're-- >> that's correct. stuart: very well indeed. bruce from medbox, thank you for joining us, we appreciate it. >> thank you. stuart: 9:49 eastern monday morning, where is the price of gold this morning, any closer to 1600? not much. up 70 cents at 1577. gamblers they'll bet on anything and the selection of a new pope is no exception. the conclave starts tomorrow to choose the pope, but the money is flowing. sandra smith is here next.
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thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
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angelo cardinal from italy favorite 2-1. and peter turkson of ghana, 4-1. italian and brazilian number three and four, sandra? wait, wait, is it legit to place a bet on the next pope? >> certainly. stuart: yes? >> do i agree with it? it's legit, it's legal. and the odds aren't very good right now and the pay back wouldn't be good with 2-1 odds on the italian. stuart: 115 cardinals to choose from the conclave. >> there you go, and timothy dolan, everybody is expecting highly in new york, his odds 20-1 right now so, i think it's going to be more of a surprise than anything. stuart: that's for sure. if this is-- if they're heating up in vegas. stuart: you can also bet on the age of the incoming pope and country of origin of the incoming pope and where he will
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make his first foreign visit and who will be the first pope to resign again after benedict. >> if they resign every 600 years, who is going to collect on that bet. i think it's legit if you want to bet or not. the last one was a surprise definitely, i think, to sandra's point and the italians are saying, listen, we want to bring it back, we had a german and a polish pope and the archbishop of milan has been a powerful figure within the church so i think it's probably him right now. stuart: you went to england, you walk down any high street, main street, you walk down it and there will be a betting shop and in that betting shop, you can bet on anything, absolutely anything. the weather, the next day, the next pope. >> i hate to see how the places look, when they have the off track betting parlors in new york, and they smell bad and people look bad and back door
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entrance. stuart: good question. not been in years. all right. the buzz around the new samsung galaxy, the buzz is that the technology allows you to scroll using only your eyes. that's interesting, but is it bad for you? a big debate about that in our monday morning editorial meeting. is it bad for your eyes if you're scrolling up the convenient with your eyes, of course a technological element as well. we will have dr. marc siegel on the health effects in just a moment. and health care premiums for young people, about to skyrocket because of obamacare and the numbers for you new at 10 and use that as a reason to play this again. >> but we have to pass the bill so that you can find out what is in it. away from the fog of the controversy. ♪ [ female announcer ] from meeting customer needs... to meeting patient needs... ♪ wireless is limitless.
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stuart: the amount of corporate money parked overseas keeps going up. and it is staying overseas, because if it's brought back here, it is taxed at the highest rate in developed world. the "wall street journal" has the new numbers. it checked 60 -- 60 big corporations. they have a total of 166 billion dollars parked outside of america and that number is rising fast. the left is going to jump on this. they will say this is our money. it was made by american companies and it should be brought back here and taxed and so we all benefit. many investors want it brought back home too. you own a piece of a company that has billions overseas, and
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you want a bigger dividend. bring it back. pay it out. the answer to this conundrum would surely be a tax holiday. if a 35% rate were dropped or sharply reduced, perhaps a trillion or two might resurface in america. but a lower corporate tax rate from the obama administration, what are the chances of that? slim. and none. stuart: look at this everybody. this is the big board after half hour's worth of business on a monday morning. it follows a whopping week of huge gains for the dow. we're only down 2 points. i'm going to call that dead flat, on a monday after a big rally. up until today, we had record levels on the dow, four straight days. is that because ben is printing a lot of money? that would be my position and a lot of other people's too. or is it because of corporate profits going through the roof?
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charles is here to argue one side of the equation. he says it's profits. make your case. charles: i'm going to use a case study, a company called avery dennis, we see them everywhere, like the bar codes, everything that's stamped, they are a big part of the industry. since 04 to 11, their u.s. revenue has gone from 2.5 billion to 7 billion. stock at all-time high. latin america from 200 billion to almost 500 billion. these corporations are still making a lot of money, they are not making it from america. stuart: i've got to recap here. i didn't catch that? this is avery dennison. they make bar codes. charles: all kinds of things associated with commerce. stuart: your telling me that their profits have gone up -- revenue, the amount of money they are taking in, gone up from what? charles: gone up significantly year over year, but the source
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of that revenue has changed dramatically. 04, they did 2.5 billion in america. 2011 they did 1.7 billion in america. their revenues in america have gone down. their revenues everywhere else have gone straight up. charles: skyrocketed. hence the bottom line has skyrocketed. you can translate that example to corporate america generally making whopping great big profits overseas and that's why their stock has gone up so much. charles: their profits are legit therefore the stock move is legit. unfortunately it is hard for the average american to connect the dots because the avery dennison they see is the one that went from 2.5 to 1.7 billion. that's the one we see when we look out of our window, but that's a different part of the story that's not articulated often. stuart: would you accept that ben printing money is another part of this rally? charles: i would say about 10, no more than 15 percent. as we see valuations get higher, maybe 18, 20 percent p-e ratios,
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dow around 15,000. then we're talking about money printing. i think most of the money ben is printing has gone to the u.s. government. deficit is up a trillion every single year. stuart: you make a good case. sandra: i will ask you what you think the second they start talking about raising interest rates. charles: i'm going to do a special with dagen and connell, i did all the work, you guys will be shocked what happened in the last two rallies when the fed started raising rates. stuart: you aren't going to reveal it to our varney & company viewers? charles: i would offer the report for free if they go to my website. charles: wstreet.com.ebsite? it is my march newsletter. it's shocking what's happened in the last two rallies. stuart: all right, charles. we accept your explanation. let's go to nicole. bed bath beyond, know it well, what are they doing? nicole: let's take a look here at bed, bath & beyond. this is where stuart likes to go around with his cart and pick up all his necessities and spends a
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lot of money, stuart. no, what we're looking at is barron's is reporting it could rise 25% over the next year. you like bed, bath & beyond, don't you? stuart: i do. i think it is a great store. i like the definition of product, very very good. move on to blackberry, please. is this a winner as well? nicole: this is a finally moment. finally, yes, it is a winner. the stock is a big winner. finally now because at&t is going to launch the blackberry 10 for $199.99. presales begin on march 12th. finally we get the real date and you can get your hands on the blackberry 10 finally, which is long awaited. the analysts were so critical that they had the original announcement, and the launch of the actual product was so far out, it was weeks and weeks later. they've lost some momentum a little bit. stuart: yes, they have. nicole thanks a lot. dow still down a fraction. interesting after four straight records last week. let's get back to the story on
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corporate profits. new numbers from the "wall street journal" show 60, they picked out 60 big corporations. they found they have a total of 166 billion dollars parked overseas. money that's over there. it's growing over there. it is not coming back here. sandra, what do you make of this? sandra: why would they bring the money back here? it's not that -- it's not that these companies are anti-american or they don't want to house their cash here in the united states. it's that it's become such a business unfriendly environment. who is to say hey these are american companies, they should be keeping their cash at home. as charles pointed out, a lot of the dow 30 companies, over half of their revenues are derived from outside of the united states, and that's why they are thriving. stuart: the left will say that they have a responsibility to bring back that money. they are american companies, bring it back here and put americans to work and quit putting foreigners to work. sandra: they are not american companies. they are international conglomerates who derive in many cases more than half their revenues outside of this country. stuart: so the left has no point
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to be made here. sandra: no. stuart: american companies have no responsibility to bring the money back home. that's what you say? sandra: if they want the cash to be brought home and jobs created here, we need to create a tax friendly, business friendly environment in the united states for which these companies want to stay and want to put those dollars to work. charles: that number you cited was just for last year. the number is 1.9 trillion. stuart: overall. charles: 1.9 trillion. if they went to that 5% tax rate, i would suspect corporate america would bring back at least 4 or 500 billion dollars. here's the thing, they would probably use 100 billion for dividends and buybacks. and the rest of it could go into capital improvement projects and employment. that would be a 400 billion dollars stimulus to our economy that would cost no one watching this show a nickel. the left would be upset, though. they don't want any to go to buybacks or dividends. stuart: it was done in 04, tax holiday, 310 billion came back to the united states. the left hated it because it
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went to pay more dividends and for stock buybacks. it did not employ more people. they hated it. charles: look at when that began. look when the great jobs boom started. some people say it was a coincidence, but they started around the same time. stuart: samsung galaxy, the speculation this is a new feature, it supposedly lets you scroll through different pages just using your eyes, the motion of your eyeballs shifts what's on your screen. there's no official details yet. but this got us thinking. could that eye stroll technology be bad for you? i don't believe we're actually going to do this, but we are, dr. marc siegel is here. please, please, do not tell me that scrolling a computer screen with your eyes is bad for your eyes, you aren't going to tell me that, are you? >> here's what i'm going to tell you. the company that makes this is
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called tobii, and i predict that it is going to do well with this technology. stuart: yes. >> but i also did a report last week about how lazy we're becoming. the number one reason it's bad for you, stuart, i mean we found out we're doing a lot less housework, and we're busy in front of the computer screen. the only calories we're burning are using that mouse. and then here we are using only our eyes? i mean -- stuart: that's not an argument against new technology. it is not. >> well, the other issue is you're getting it which is we're increasing -- we have retina friendly screens but we're actually increasing the amount of light that we're seeing, and i'm not really happy about using the eyes. you are going to get eyestrain. stuart: does it ruin your eyes? >> no. stuart: it does not? >> but you're going to get eyestrain. stuart: eyestrain? what is eyestrain? sandra: somebody with perfect vision over here. stuart: time out. i'm 64 years old, full
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disclosure here. i'm 64. i do not wear glasses. don't wear contacts. and i can read the stocks tables. beat that. i've been looking at screens -- my entire life i look at screens. >> that's because your father, mother, before you probably had perfect vision. stuart: blind as bats. >> you shouldn't be prejudiced with people like us. charles and i are offended here. all kidding aside, i don't think we should keep going in the direction of using technology to replace activity. your point is right, 2 calories, but right is it that we're always finding ways to make it easier for ourselves instead of getting back to the old days of exercising? stuart: human progress. sandra: people should have the choice of whether or not they want to exercise more or less and scroll with their eyeballs. but the unintended consequences of a computer screen reading my
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eyeballs is what i'm worrying about. they are already saying staring at these screens is hurting my eyes. now it is reading my eyes? there's got to be something negative to that. stuart: you will find it. >> i think the negativity to it has do with all this intensity of light that we're absorbing all the time. sandra: sure. >> that's the issue. the screens are too bright. stuart: samsung has generated buzz with this extraordinarily new technology. i'm all in favor of it. they replaced apple. apple used to have the buzz. they don't. the stock is down. go for samsung. >> it will win. it is going to take over. stuart: of course it with. sandra: are you going to blink twice for like a double click? >> how would you know if you are trying to send a message to somebody? stuart: really, i will be batting my eyes on the screen. [laughter] stuart: might work. doctor, that was good. thank you very much. a jury says johnson & johnson has to pay more than 8 million dollars to a patient with a defective hip implant.
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and with 10,000 similar suited filed against j&j, this ruling could just be the beginning. here's the question, is this just another example of how lawyers are ruining the medical business? do products get better with all these lawsuits or do costs just go up? the judge is going to answer those questions, 10:35 this morning. we have a report from the house committee on energy and commerce. it says healthcare premiums for young people could triple over the next year. this story was brought to us by our next guest. that sounds incredible to me, obama care will rise full force next year and you are telling me if you want health insurance for a young person, the premium will triple -- will triple. go. >> right. i'm still wondering why we call it an affordable care act. we know the young people will see increase in their healthcare premiums. previous studies have shown they
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will see increase of 45%. this new report shows young people will see an increase of 145% to 203%. to put this into perspective, let's take obama's hometown of chicago, young people on average pay $756 for their premiums right now. they are going to see this skyrocket to about $2,300. i don't know what average young person can say they can afford to pay $1600 more on their healthcare insurance. stuart: they are not going to pay it. they are going to say 200 0 bucks? -- 2,000 bucks? i'm not paying that. i can't afford it. i'm going on medicaid. >> this will incentivize them to pay the fine rather than pay more on their health insurance. the reason why we're seeing this increase is because under the obama care legislation, young people are mandated to pay more on their healthcare premiums to subsidize the healthcare premiums of older people, either
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nearing retirement or people who are already in retirement, to bring their healthcare premiums down to kind of equalize the healthcare premiums in both younger americans and older americans. stuart: you certainly got our attention. a tripling in the premium there, that caught everybody i think off-guard. >> exactly, why are we calling this the affordable care act? who is it affordable for? i don't see how any average middle class family or an average young person will be able to afford $1600 more especially in this economy. stuart: okay. i've got to go. that's a very interesting number. thanks for bringing it to us. we appreciate it. >> thanks for having me. stuart: if you think you're doing the environment a favor by purchasing an electric car, think again. it turns out the battery powered cars are just as bad for the environment as your average sedan, even worse. my take is on that next. if you didn't tune in at 9:20, you missed the senator answering the question is president obama sincere in reaching out to
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republicans? >> if he stays engaged with congress then i think there's a chance we get the kind of big deal we need. if he goes back touring the country saying oh no congress is the problem not him, then it probably isn't going to happen. but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. all your imptant legal matters in just minutes.
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protect youramily... and launch your dreams. at legalzoom.com we put the law on your side. stuart: gas prices down about a nickel over the past week, a bit more than that actually. a national average for a gallon of regular is now $3.69. the price of oil, about $91 per barrel. that's where we are this
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morning. we have amazon, another battle there. this time for domain names. rival retailers and publishers are opposing amazon to control certain web domains. amazon stock is down a little, still close to its high. baseball season right around the corner. but dick's sporting goods down big after a drop in exercise and cold weather equipment last quarter. the stock is down 6%. take a look at the big board. at the start of a new week, we are dead flat i'm calling it, after a huge week last week. coming up next, stay right there please, charles who has a good track record is going to make us some money. it's monday.
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and with responsive, dedicated support, we help you shine every day of the week. stuart: krispy kreme, krispy kreme donuts -- donuts, chhrles says you are going to make money investing in, not eating them. [laughter] charles: you have a lot of fun eating them. krispy kreme doughnuts, are you familiar with the stock? stuart: of course i am. charles: high ipo, went straight to the moon, then a gigantic accounting scandal. listen, they were living too good. that's recently. the stock is up a lot. i have mentioned it once on these segments. this used to be a $50 stock and it is on the cusp of another breakout thhough 15. opened first store in india and opening in taiwan.
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stuart: you buy the stock on the basis of foreign profits? charles: i think they will make money domestically too. there's a lot of room for growth these guys domestically too. their international stuff is growing. it is not an international story. stuart: isn't the donut market saturated? there's dunkin donuts everywhere these days. you don't think it's saturated? charles: not really. krispy kreme and dunkin actually had an unofficial truce for a long time. i think krispy kreme broke the truce, but now it is a free-for-all. they will be in the same markets together. you rarely see them together right now. unofficial truce. i think you will see them in more markets. there is a lot of room for growth. the red flag i'm worried about a little bit, there's been a lot of insider selling. the insiders sold a lot of stock, not necessarily good, but besides that, i think from the valuations and everything else, you know -- sandra: i think it is the krispy kreme oreo donut. have you seen this? charles: i saw it on the website. stuart: do you remember back in
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the day when krispy kreme was first coming out? we used to invite the ceo on the show all the time. you know why? because he would bring four, five, six dozen donuts every single time so we always invited him. charles: you have to admit. they are addictive. those are the most addictive donuts in the world. stuart: no, i cannot eat a donut first thing in the morning. it would drive me crazy. sandra: salmon and asparagus for breakfast. [laughter] stuart: yeah, look at me. don't. all right. the climate issue, you know, you can't win, not even those environmentally oh so wonderful electric cars, no, you can't win. here's my take, it turns out the electric car is not so environmentally pure after all. making them puts out far more carbon than making a standard gasoline powered vehicle. every time you change the battery or charge the battery,
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it's another outpouring of carbon. in fact, making, making an electric car puts as much carbon into the atmosphere as driving a gasoline-powered car for 80,000 miles. before you get behind the wheel, you are a polluter. all right. now, the big picture for a second. america did not sign the kyoto treaty about 20 years ago. environmentalists said we're not doing our part in the fight against global warming. america has cut its emissions more than the europeans. how? by fracking for natural gas and using it in power plants. some european countries have banned fracking. you really can't win. no matter what you do, you will offend the environmentalists. this is because of the basic premise of the environmental argument, that human activity is the cause of the coming climate disaster. if you buy that, you are buying into a doomsday outlook. you, humans, you are the
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problem. i'm not buying it. i want growth. i want to go and get the resources we have beneath our own turf, and i'm going to buy a gas-powered car because that's what i want, and it is my money. bottom line to this my take, just leave me alone. >> announcer: you never know when, but thieves can steal your identity and turn your life
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stuart: nicole, all the buzz about samsung's new phone this week can't be good for apple, i presume. what's going on with apple? nicole: good news for the competitor, bad news for apple today. you can see it is down 1.1%. that coupled with another slew of downgrades and price target cuts from the analysts. we have so much betting on samsung these days. you were noting the new eye-moving screen, follows your own eye movement. that is something else. stuart: i wish americans could invest freely in samsung the way we can invest freely in sony, for example, which is a japanese company, or freely in apple. i want to do a story on this because i don't believe we can invest freely in samsung. i think that's a form of protectionism. we will get into this. nicole: good point. stuart: thank you very much. new york university paid huge sums to some of its professors and faculty after they left the school. they said these parting gifts
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were part of a severance package but those rewards of these huge sums, left voluntarily still got the money. jack lew, treasury department, former executive vice president of nyu, left in 06, they gave him $685,000 as a parting gift. a psychiatrist who was an executive of the nyu medical center, founder of nyu's child study center, he got a million bucks when he left for a rival organization. joining us now is andrew ross, he's professor at nyu. he's a critic of these payouts. tell us, professor, what's wrong? this is a private university, they can do as they will with their money can they not, what's wrong with that >> it is a private university but also nonprofit entity and educational institution. and while these kinds of practices are fairly common and some people justify them on wall street, they are not appropriate in an educational institution,
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especially if you look at how the other employee ranks are compensated and especially if you consider -- nationally and at nyu right now, our students are graduating with a debt burden which is astronomical. stuart: so you would redistribute this wealth, so to speak, and give it more to the existing faculty, lower down the totem pole and also give it to students, would you, redistribute those assets? >> certainly, that would be a beginning. what we're calling for, however, is more transparency, more fiscal transparency in the educational institution. private universities are almost unique in this country for being able to keep their books closed, and we think also that's quite inappropriate, especially since students and their families really do have a right at this point to know how the university is allocating their tuition. stuart: that's a fair point.
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paying what about 60,000 bucks a year at nyu, way up there in terms of tuition costs and all the rest of it. if i'm paying $60,000, i want to know who is getting that money, where it's going, and i do want transparency. i think you are right on that point. >> exactly. stuart: how far would you go? would you ban any of these payments to people leaving the faculty? how about you, for example? you have a name, if you were to leave, wouldn't you like a nice chunk of money? wouldn't you? come on, professor. i've got you. >> no one would be thinking am i getting the lump sum payments for leaving in -- for leaving nyu? i can assure you of that. stuart: after this, wouldn't they give you a lump sum payment to get out? >> quite possibly. i have students who are falling asleep in classroom -- not -- some of them fall asleep because i'm a boring teacher, but most of them are falling asleep because they are working two or three jobs just to pay the bills. and for them to look at these multimillion dollars salaries,
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multimillion dollars home purchases on behalf of administrators, multimillion -- lump sum cash payments. they are not severance payments. these are payments that were made to employees who were voluntarily leaving. they find this obscene and unfathomab unfathomable. stuart: two extraordinary words, unseen and unfathomable? what's going to be the reaction when you go back to work? >> most of my colleagues feel the same way. this week actually there's a vote of no confidence being conducted on the president. stuart: interesting. keep us posted. >> thank you. stuart: a jury says johnson & johnson has to pay out 8 million dollars with a patient with an artificial hip because of negligence. the ruling could just be the
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(testimonial section) did you know, 94% of people who use lyric would recommend lyric to a friend or loved one. can your hearing aid do all this? lyric can. to learn more about lyric's advanced technology, call or visit trylyric.com for a risk--free 30--day trial offer. you'll also get a free informational dvd and brochure. why wait? hear today what a little lyric can do for you. get the hearing aid that can. lyric from phonak. lyric can. stuart: is this an example of the legal system? a jury in los angeles ordered johnson & johnson to pay 8.3 million dollars in damages to a patient over a defective hip.
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the jury said johnson & johnson was negligent. they were negligent in the design of the hip. judge napolitano is here. by the way, there are 10,000 more lawsuits of exactly the same nature coming. okay? >> well, that wouldn't surprise me, because you know that these manufacturers of medical devices are prime targets for plaintiffs' lawyers, and once they hit in one of them, that sometimes causes the manufacturer to settle many others that they wouldn't ordinarily settle in order to avoid the cost of the lawsuit. stuart: this kind of thing drives me crazy. >> and rightly so. stuart: do you really think that a jury is in the position to decide whether the design of an artificial hip was good or bad? >> well, that gets back to american history. because the constitution guarantees a jury trial. so here's how it works, the plaintiffs' lawyers bring in experts, designers and physicians and they give their opinion as to why this thing was
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improperly designed. the manufacturer brings in its experts, and they give their opinion as to why it was improperly designed. and a lay jury is supposed to decide which expert they believe. that's been the system in america. stuart: not working? >> it results in places like california and new jersey our home state having notorious biases towards plaintiffs. the jurors are biassed towards the plaintiff. the law is biassed towards the plaintiff. the ar articulation of the law by the judge is biassed towards the plaintiffs. who pays for this? everybody. the insurance premium goes up. the cost of doing business goes up, goes up for everybody all over the country even though plaintiffs are hitting so to speak with this 8 million dollars verdict in places like southern california and new jersey. stuart: there's every incentive for the lawyers to sue because they will get 30% plus expenses.
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>> yes. you are being modest when you say 30%. in some states it is more. in some states it is whatever the lawyers can negotiate for, like in new york. in new jersey there's a cap on what the lawyers can earn, the more they earn the lower the percentage goes. stuart: why isn't real tort reform -- why is that not part of obama care? because if you want to get the cost of medical services down, you get rid of the lawyers. >> one of the reasons tort reform is not part of obama care is because the tort system in america is not a national system. it's 50 state systems, 51, if you count the district of columbia, it is different in every state, not regulated by the feds, regulated by legislature and the courts. let me tell you where they have their influence, in the state legislatur legislatures. that's why in texas it is no longer plaintiffs state because the trial lawyers lost influence there and the laws have swung over towards more centered equilibrium.
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in in places like new jersey and california, trial lawyers have inordinate influence. stuart: people in texas will still have to pay much higher prices for artificial hip. >> yes, because that's a national market, exactly. they may save themselves local expense but they don't save themselves on the cost of purchasing a nationally produced product. stuart: this is an example of the american legal system run riot and it needs control? >> i don't know if i would say run riot. it is an example of this happening in localities. this would not happen in other parts of the country the way it's happened in los angeles or new jersey, yes. i would agree with you that the consequences of this are not thought through, by the judges and the jurors, a even the legislatures that permit it to happen. they themselves are paying for it without realizing it. stuart: some poor person who has been injured by this will limp into court, look absolutely terrible in front of the jury, and the case is lost. >> well some injuries are
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serious and legitimate injuries. stuart: of course they are. i'm not suggesting they are not. >> these people are entitled to compensation. stuart: a defective design, a jury is equipped to make that decision? i don't believe this. >> we decided in this country 230 years ago it is better to have juries decide than judges. i'm smiling because i know you don't want to get into the decisions that happened 230 years ago and what propelled those decisions. you don't want to go there, stuart. stuart: you always go back to that. you always go back to that. [laughter] stuart: you always accuse me of not understanding -- >> no, i don't accuse you of that. i'm suggesting you may not want to get into the historical impulses for those -- charles: judge on that note there's been a lot of talk of professional juries and people who would understand the design, professionals, not attached to anyone, who could actually make a more intelligent decision on cases like this. >> that would require an amendment to the u.s. constitution and in some states
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the state constitution. in our home state of new jersey, it is the state constitution that guarantees a jury as well as the federal constitution. stuart: aren't lawyers investigated by their own? >> yes. stuart: why aren't doctors and drug companies invested by their own? >> well, in a sense they are, because sometimes the court can appoint a doctor to advise the court and the jury as to what the -- how the medicine actually played out because when an expert is hired by the plaintiff, that expert is going to say what the plaintiff is paying the doctor to say. and when an expert is hired by the defense, that expert is going to say what the defense has paid them to say, and the jury has to decide who they believe. it is almost a swearing match between expert witnesses, which expert witnesses presented the most attractive, most credible case, that's what it comes down. stuart: we all pay for this. >> no dispute that we all pay for it. and no dispute that the jurors
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are not permitted to take that into account, that we all pay for it. new jersey can't even use the word insurance policy in the courtroom. stuart: really? >> yes. i'm not trying to ruin your morning, stuart. i'm trying to enlighten your viewers on how this really comes down. stuart: all right, judge, that was pretty good. i will say that. >> pleasure guys. stuart: the dow is down a near one point, that's it, monday morning after the big rallies last week. coming up next, real estate entrepreneurs, making a multimillion dollars deal in new york city, here's the question, we will pose it to him, did he get a sweetheart deal from mayor bloomberg for this? he's an obama supporter. ♪ [ 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.
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[ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. stuart: keeping a close eye on apple's stock, samsung gets ready to launch its new galaxy this week. a lot of buzz about samsung and the new technology it may be introducing. apple is down. one way left for new yorkers to get their 20 ounce sugary drinks. the ban on large sodas goes into effect tomorrow. that means one day left to go out and get the big one. starbucks is sidestepping the ban, though, saying there is enough milk in their 20 ounce drinks to keep them on the menu. 115 cardinals holding their final meeting in vatican city today. they will gather tomorrow under a code of silence to elect a new
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today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. stuart: let us briefly note that the dow just turned positive, up 1 point. okay? but it is positive. charles has got a follow up on a recommendation he made a couple of weeks ago. he still likes las vegas sands. why? charles: i still like it. first of all, it's been underperforming for a while here, and one of the reasons is
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there's some scuttlebutt, there was an article in the new york times about them somehow being in violation of the foreign corrupt practices -- stuart: yeah. charles: the company is saying listen if there was a bookkeeping entry mistake, even a single one that would violate it, that's what they may have found, not bribery, i think the street is starting to come around to the feeling that you know what if that is the case, this is a stock that's underperformed despite amazing earnings and this has a lot of room to the upside. stuart: gone from 46, 47, is the low back in late february, all the way up to 53 now. charles: it's made a huge move already, but i think it has more. stuart: thank you very much, charles. don peebles, frequent guest on this program, announced his first real estate deal with and in new york city. the peebles corporation will pay 160 million dollars for 346 broadway. don peebles joining us now. i want to publicly apologize. i may be pejorative about this deal and i did not mean to do
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that, i posed the question is it a sweetheart deal? i'm sorry if i said that. i don't mean to offend. tell me why i'm so totally wrong. >> the one year competition, the public private rfp process where there were numerous bidders, dozens and dozens and bidders, so they negotiated with all the bidders for about almost a year from april of last year to february of -- to march of this year really when we signed. stuart: okay. >> a lengthy process. stuart: you're paying 160 million dollars for this property in new york city. what's the significance? your first big deal in new york city and you are a big guy in the real estate business. what's the significant thing? >> landmark building, original headquarters for new york life insurance company, iconic historic building that we're fully restoring. stuart: beautiful building. >> thank you. we are also donating 15,000 square feet of space for community arts, making available 15,000 -- stuart: are you going to turn it
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into condominiums? >> yes, and possibly hospitality. stuart: very high end stuff. >> going to create a lot of jobs, a lot of jobs. stuart: it is not a problem, but you are a big obama supporter, aren't you? >> i have been a very strong supporter -- stuart: the president has been bashing the rich and now you're going to house the rich and make money out of the rich, aren't you? >> by the way, the president is not bashing the rich, but he's certainly talking about making us all pay more in taxes. but i'm not bashing anyone. stuart: you wouldn't -- >> no, president obama is president obama and speaks for himself and his administration. and i speak for myself and my business. and so we are looking to create a lot of jobs, hundreds of jobs for new yorkers and create more housing downtown which is needed and more long-term jobs. we're really excited about that. charles: is this a play on the area thinking the freedom tower is going to be ready real soon? that should spark amazing life there. or is it a play on the overall economy?
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>> both, freedom tower is going to bring more life there. there's a tremendous demand for new housing. if you look just in this weekend's newspapers, the new york times, for example, big stories about will this bubble that's going on in miami and new york city and other gateway cities globally continue or slow down? and the consensus is it will continue. so we see that there. and we see also the demand for historic buildings, and not necessarily those that are kind of the cookie cutter glass towers. stuart: what astonishes a lot of us is there are certain world capitols, london, certainly new york, maybe even singapore, world capitols, financial leaders, where high end real estate is going through the roof, regardless of the state of the underlying economy. you're part of that. >> look, i think that again the faucet was turned off for quite a while during this last recession, and so now there's inventories are lowest they have ever been in the gateway cities, say, again, new york, washington, d.c., miami, london,
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and so -- and other places, so now there's going to be more construction. going to see much more of that. which is good for the economy. stuart: all right. you paid the money. you got the deal. congratulations, don peebles. appreciate it. >> thank you. stuart: does how long you live depend on how much you make? according to a new study, the answer could be yes. we'll deal with that next. it's monday.
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stuart: research from the university of washington shows that the more money you have, the longer you will live. now, that could be bad for social security reform, i suspect. because if the rich are the ones who are living longer, then raising the retirement age would tend to benefit them and hurt poorer people, who theoretically die younger. what do you make of this, charles? charles: you know, you can obviously see the argument, but this lends a lot of credibility to the idea of -- listen -- even more so making private accounts, putting it somewhere besides where it is not just getting 1%, but a sort of kind of personal account that could be passed on, if you die at 50 you get it or die at 80, you get it. stuart: that was george bush's
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idea. charles: it was. the crazy thing is it derailed his whole second term. sandra: something has to be done, right? and i think that -- charles: if you live to be 65, there's over 90% chance you live to be 85 in this country. if you hit the big 65, you will live a lot longer. stuart: the left say ifs you raise the -- the left says if you raise the retirement page to say 70 then you are favoring the rich because they live longer and you should not do that, you've got to some way compensate poorer people for this discrepancy in longevity. charles: they are being compensated all along the line. how about we just lower it to 45? stuart: you will hear this longevity rate frequently when we're discussing social security reform. charles: it is part of the fairness doctrine. stuart: fairness, that's the
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