what the obama administration calls a recovery? certainly not one of the best ones we've had. never fear because entitlements, well, they're here. in fact, 2.4 million americans on disability and a third of them claim back pain is the reason. so, here is our disability fraud investigator and what he had to say, that he does, actually, this is one of the great things he does to catch people who may not be telling the truth. >> and so we know evvry couple of days, somebody's going to move theer car, what we'll do. take a heavy garbage can, put it in front of their car in the morning and see if they come out of the house to move the can to move the car. charles: you get it on videotape. >> catch it on videotape. stuart: there's no back pain if you're moving a garbage can. charles: that's ingenious, do we need hundreds if not thousands of guys like that putting garbage cans in front of people's cars? with so many people gaming the system is there anything to do to stop it?

let's ask congressman mike kelly on the oversight committee. you must be grappling with the same issue. it's obvious there's massive abuse within the system. >> the program was designed to help those vulnerable and couldn't back to work. the medical advances in technology would lead most of us to believe you getting hurt and getting better should be quicker and people returning to work. maybe we've made it to easy to stay on disability. maybe we've made it so easy to stay there we've taken out the incentive to go back to work. >> we've got veterans returning from iraq and afghanistan, you know, with missing legs and they go out and look for jobs and find jobs and now, so, but what do we do? because it's really unrealistic that we have an army of guys putting, planting garbage cans in front of cars and things like that. what do you think the solution would be to-- it's not abuse because it's not inexpensive it's costing the american taxpayer a lot of

money. >> a lot of the dollars the administration is going into investigation. you have to question, is it a so-s societal problem, you want to be a part of a group of people who get up and go to work and making the country better? this has become a way of life and not a way to get through a difficult time, but a way of life. there is there's something wrong with this model. we have to do the investigation to keep people honest, but goes in the hearts of every individual. they know when they can go back to work. you feel pain differently than i feel pain, but you've got to get back up and get back in the game. >> along that note, listen, i guess we came through a long presidential campaign and one of the narratives, at least i interpreted in, if you're down on your luck, it's not your fault, even if you dropped out

of high school, even if you wake up and hit the bong every morning, it's not your fault, a guy in wall street washed away your opportunity. and feel no shame, take advantage of every program, and feel no shame take as long as you want until feel you can enter society. >> and you feel knocked down from time to time, but the problem when you don't want to get back up, when you don't want to become part of the solution or part of the problem, that's where the problem lies. we're looking at cultural changes that's hard for a lot of us to understand. what made america great was their work ethic, their ability to look beyond and look to the future and say i can be part of that. we need to get back to that. we need to enforce the laws, help those who are vulnerable and we have to encourage those on the sidelines to get back in the the game and do you that by a message. the president has a great roll and he could be leading that message and he has to lead that

message. charles: i've been saying that for a long time and i'm dismayed, the tough life angle hasn't been applied. same thing, food stamps a record amount of money and record amount of people on it. people don't come off the programs. i did some work and live in california make 44, 45 grand a year, you don't want a raise, you don't want to earn the child tax credit and any of the stuff to make the transition from poverty into the middle class, there's a portion there you might net-net lose money although we have to make people understand you're on the track to true success. how does that get out if you're not in control of the bully pulpit. >> if you tried out to make the team, if you're not good enough you might get cut. a lot of examples people got cut and people come back and being great.

michael jordan being one we recognize. whenever you make it the incentive you don't have to excel. i don't want anybody to feel bad about themselves. you don't have to stay where you are. >> representative kelly everyone should know you're not speaking rhetoric. you were off scholarships on notre dame playing football. now about getting knocked down and back up. >> charles, thanks for what you're saying. charles: the great tax debate is racing on. a good friend of this show is leading the debate and a point that red states in the lead attracting people from high tax blue states. and that's economics 101 and the opening bell next. [ shapiro ] at legalzoom, you can take care of virtually

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i wa to know exactly how much i'm paying. i want to use the same stuff the big guys use. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. >> we're about a minute away from the opening bell. joining the company now from chicago, scott shellady, and scott, you know, i know that you would never caught 4/10 of a percent real growth. it was better than expected though, huh? >> well, i mean, it's hard to get worse than expected. we've driven the expectations down so low. like they call the stock market, it's a brussel sprouts recovery, and it's going up and if you don't like it and it's good for you, that remind me of brussel sprouts and that's what we've

got going on here. we've driven to such a level that anything not negative will be viewed as positive and we're going higher. don't forget this, 7.7 unemployment and we don't have a housing market and a lot of people think we do, but it's corporations driving the prices up now. and lastly, i still don't think that of we've got anywhere near the recovery we like because the 10-year still at 1.83. >> as were you saying that the bell began to ring here. indications have been all over the place right now, but the dow is up 5 points on the opening tick and here is the question for you. the stock market used to serve as something of a harbinger of things to come. in other words, the stock market would do well because it knew the economy was getting better. could we go from a brussels sprouts economy to something like a chocolate cake economy, something that everybody likes in the market is justified? >> well, not anytime soon because the reason why we've got the qe and the government so much in our back pockets here,

we don't have true signs of growth and the united states way of kicking the can down the road is called qe. until we get the true growth. the punch bowl is not taken away from the party. we print until next year, i don't see any growth coming forever. charles: some would say the kwe is the chocolate cake, but not good for you. and blackberry, a stock we cover. nicole, it was all over the board and now-- >> right now we're seeing that blackberry is up about 5 1/2%. this tax on to what we've even over the last six months or so, up over 108% in the last six months and we continue to see it on the move and the quarterly profit came in, announced better than expected results for this and they have the touch screen devices and the orders for the 10, and 6 million smart phones

in the latest quarter which ended in march. charles: we know tomorrow the market is closed so we'll hit you a few more times ahead of the three-day weekend. two more big names you need to know. reuters reporting that wal-mart may get customers to deliver packages to on-line buyers. inviting people to rent out space in the vehicle and offer a discount on the customer's shopping bill that would effectively cover the cost of their gas. ingenious, we'll se where it goes. and feeling the heat from subway. you know about the chicken mcwrap hand switch. it's been called the subway buster by an ad agency magazine, and younger customers will choose the new mcdonald's wrap and not go to subway. my 16-year-old son likes subway. and to nicole, game stop is in the news, how are the shares.

nicole: the shares are-- i tell you that my son is when are we going to get that. and today is 2% and they've trimmed costs, slightly lower revenue and we'll continue to watch this. now what you have to watch today. pinnacle foods, here it is, they brought the cupcakes and the like and a new jersey-based company, birdseye and also duncan hines and $20 a share, there's a big crowd forming at the post itself which you can take a look at at the same time. it's one to watch. not open yet for this one, but obviously, and no, wait a second. it gets better, we have the ceo in the next hour on "varney & company" and charles payne will be talking to the ceo so it's a big crowd, not open yet, but obviously yummy with the cupcakes. >> save me a couple of the cupcakes, like you pointed out we'll be talking with the ceo,

they're going public. the tax debate is heated up again. there are states that people are leaving because the taxes are simply too high and pile on regulations and then they're fleeing to states like these in florida, tennessee, texas, where there are lower taxes and fewer regulations and the man who is behind bringing the debate to the spotlight, art laffer, you're saying that this is reagan nommics, 110. >> we had prop 13, and guam the northern mayor mariners, and it's going to do it again. and we have a huge battle going on among the states and i think the reagan ones are going to beat the obama ones. charles: it's amazing you talk about this.

because it's been going on for a long time, but it's somewhat stealthy, but you start to look back at census data and it's pretty clear. people with great skills and innovation are leaving and businesses are leaving and the numbers are too hard to refute and yet, there are so many people out there that say art lauffer is wrong. >> missing good economics. if you have two locations, a and b. if you raise taxes in a, people are going to move. and i don't know why the people think that state income taxes don't matter. one obvious example, what if you have 100% tax on all income, do you think everyone would stay in that state? duh. i mean, obviously they matter. only question how much do they matter? i'm finding they matter a lot. charles: they do matter a lot and there's absolutely no doubt about this and now, on top of it all, these states that are

actually embracing reaganomics 101 are becoming pretty nervy about it, if you will. and texas is actually wooing people in california, governor doing ads on the radio. >> sure. charles: at some point you would think maybe the high tax states would get the point or the message because they're losing this battle big time. >> they yell at each other, two, three term governors in the united states, jerry brown and rick perry. rick perry did a tour of california and they had that sparring match. i don't know why jerry brown didn't do what he did in the first two terms, which he was one of the big s tax cutting pro-growth governors in the nation and now he's one of the worst. it's sad, but rick perry has got it all over. charles: what do you think is going to happen, this trend. do you think it's going to continue. the big industrial cities that ruled this country for the last let's say 100 years. we've seen what happened in detroit being a pure manufacturing town, but even the new yorks of the world, the illinoises of the world, the californias of the world, are

they going to continue to lose people, and continue to lose money? >> wyes, they are, unfortunatel california has a lot more before people go bankrupt. california is a wonderful, wonderful state nothing to do with the government, mind you, but a wonderful state. and that government is using the power of the state to talk money from people for no good reason. yes, it will last until the money runs out. i think what thatcher said that social luc socialism is wonderful until you run out of other people's money to spend. charles: you used the word steal a moment ago, but i prefer confiscation. for people watching the show and somewhat taken aback, what do you mean? >> i meant confiscation. it's enforced that they have the law behind them because they make the law and then take your money. it's inappropriate, it's wrong.

it's immoral and doesn't do any good either. it just pays for all sorts of bloated salaries and political campaigns and all of that stuff. and unfortunately, it's really just really sad that they do that. and you know, we have experiences, charles, here 11 states in the last 60 years have introduced a progressive income tax. in other words, they were zero income tax states before and now have income taxes, normal states. every single one of those 11 states has declined as a share of the u.s. economy, every single one of them some of them by a lot, new jersey, michigan-- >> a mass exodus out of those states. listen, you created economics 101 and once again proven to have been an amazing plan, but a simple plan. we've got to let you go. >> thank you, charles. >> appreciate it every time you come on show. >> my pleasure, thank you. >> as the economy slowly improves you would think that people are getting off welfare and good stamps. turns out that's not the case. in fact, america will continue to be a handout nation and

that's our big story, new at 10. you've got to be on for that. right now, i've got the pleasure of sharing seven early movers and by the way, there are some good things going on with individual companies, a lot of represented here. ryder, and steeple nicholas, they say a new wave of replacement activity say it's going to go on for two more yea and ryanair, at 24 bucks they like it. and l and g, pointing the able on for a long time. a young woman who works here told me she bought it up, 100%. happy about that, but there are takeover rumors there. greenbriar you've got to watch. announced 350 new rail cars. later in the show making money with charles, i think another rail play i think will be a grand slam. and winnebago beat by 8 cents

and the growth margin exploded. it's up, but shocking, great news. and upped at jeffries, the target. this is a manly target, by the way. 100 from 65, that's incredible, you never hear anybody on wall street up a target like that. finally, therapeutic, great news on the new drug to help testosterone. we hope for relatively flat and we're' edging up there, not big, again, ahead of a three-day weekend and a lot of people watching and waiting, but we are to the plus side. well, as you know, time is money, so, in 30 seconds, here are three big names we have for you in the next hour. how about this one, and steve forbes is going to join us at the top of the hour and thinks what's happening in cyprus, can happen here. he's going to make his case. plus, john stossel says the government is going way too far with environmental regulations and he jumped into the hudson river to prove it. and grover norquist, he's taking

a victory lap after president obama signed a budget with no tax increases. i want to check on the price of gas. look at crude oil, rather, up 2 cents, 96.60. another unintended consequence of obamacare and this time it means that you might have a tough time actually finding a qualified doctor for the next few years. dr. segal has been all over it. first we've got to do it, nancy pelosi. but we have to pass the bill so that you can find out what is in it away from the fog of the controver controversy. clients are always learning more

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>> all right. checking the big boardsment we were up 20 when we went to break and now we're unchanged. something is bugging the market and i'm not sure what it is. and we're unchanged for the moment. now, get ready for more advice from your nurse. that's right, according to a new study. 60% of doctors say they may retire early within the next two years because of obamacare. that's 60% so, i guess nancy was right about this. >> but we have to pass the bill so that you can find out what is in it away from the fog of the controver controversy. >> i guess the suggestion was we're going to open up a box of crackerjacks and it's going be to be more, bring in dr. marc siegel, you were all over this, but now that the numbers are coming in, they're shocking and 60%, a mind-boggling number. >> 67% said they considered the

affordable care act a threat to medicine and jeopardizing the future. charles: what does that mean? >> it means that they think that the climate we're practicing in is getting more and more unhealthy or unhappy for doctors and therefore, patients. why would that be? if you pay people less for what they've been trained to do after they put all of these years into training and ask them to keep the same expenses, obviously, it puts a lot more pressure on people. you know, doctors are being compelled to see more and more patients and less and less time and be paid less for it. that's really the main issue. i don't know if that 60% figure, charles, is accurate. i don't believe that 60% are going to retire the next few years. charles: but they could be considering it, really. >> it's an expression of discontent. you know, they may say i wish i could retire, but i can't. so i'm unhappy, but do you want your doctor to be unhappy? a lot of changes made are not things that favor doctors, even the idea of going away from fee for service, that sounds great. you know, instead of being paid for delivering the service, you're going to be paid for

quality of care. but why shouldn't a doctor be paid for the actual service they deliver. lawyers are. >> everybody is. charles: you sell candy you pay for -- you pay for effort. a guy goes 0 for 3 and paid in the baseball game. here is the thing-- >> we're only going to pay you if the quality of the show is as good as stuart. charles: and that's why i have to get a second job. and here is the thing, how does it impact us, the patients? if indeed, a the lot of doctors act on this discontent they talk about in this piece, what's the impact on us? >> the first thing, a lot of of the same doctors are going to stop working with insurance. they're going to say can i do a concierge practice, can i be cash only? >> what happens to me, the patient? how badly -- how much degradation in the quality of health care services i'm already receiving? >> you hinted at it in the the leadup. you're going to see more nurses and nurse practitioners, that

can be preventive services and it's not the same as the doctor you're used to. your waiting times are going up, not going to see the specialist you're used to and get your care from the major medical centers. >> we appreciate you staying on it. this is something to nancy's point. something new every week and we'll need your help on it. >> one thing for sure, she knows where her health care is coming from. >> something tells me she can afford it. thanks a lot. as you can see on the screen here, pinnacle foods began trading, it's up 11% now, this is a company that makes bird's eye food. duncan hines and hungry man. my top three food categories. the ceo is going to join us, can't wait for that one. now it's time for your morning gold report. and clinging around the 1600 area and won't break out, and 1599, down 8 bucks for the moment. well, this is bound to cost more debate over gender in the work place, there's a new study that says that women make better corporate leaders than men.

something tells me, i don't know, it's a hunch, it's a hunch that sandra smith and liz mcdonald are going to be fired up about it. and they're coming up next. ♪ this is for the girls, about all of you girls ♪ ♪

>> okay, so, who makes a better corporate leader, women or men? well, according to a new study, 600 board directors, women do, because while they're likely to be more fair when decisions are made about competing interests, when competing interests are at stake, i'm not sure what i just read by liz, women are better corporate leaders? >> now why? because they're better listeners. what did you say, charles? >> who? >> what was -- and they're fairer, if you don't like it, tough. no, i'm kidding. yeah, i mean, credit suisse is saying that share prices improved when one woman is on the board. their new studies coming out from leads university that makes stuart's head explode if he were here, yeah, the return on equity for certain companies they have women on board, and european union are talking about having a

quota for having the certain number of women on board by 2020, right? so maybe four out of ten would have to be women. i don't know about that. >> and women should get themselves on, a place on the board of a company based on their own merits, but what we have learned from these studies is that women should be more aggressive in getting those positions because they're very good once they're get there. good decision makers and calm under pressure and don't stress out like men do in tense situations? >> what? >> maybe liz and i are exception to that rule, but there aren't many studies that-- yourself. ind of contradicting you're saying they're so great at everything, but their fault they're not on the board of directors. we're multi-taskers. >> and men, it's a concrete ceiling, you know, but women tend to rock the boat more. charles: they have the essentials except the jackhammers to get through. >> yeah, because of guys like you. >> what? >> i hold a lot of people back. thanks a lot.

listen, guys, we know the economy is slowly recovering, you would think though, as this happens that people would be getting off of government handouts on back on their own two feet. that's not the case and people on food stamps are at a record level and turning into a handout nation. it's a big story new at 10.

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>> in is a chicago school of politics. foot stamps designed to help people in disstress to ensure nobody starves in the country. nobody disputed the need for food stamps. when yo have long term urn employment, people father and mother bag -- fall back on backstops. they are not wants to help states cracking down on fraud and things like that. there's a bit of cynicism in here. again, when the economy improves, you think that the -- these safety net programs would wall back, but that's note the case. >> steve, anybody listening thinks we're talking about two different things here. we talk about the dow hitting record high after record high, but talk about confidence being destroyed, food stamp

participation up 70%, and here we're hitting highs in the stock market. what do you think of the disconnect there? >> companies, and, remember, averages are large companies, not tiny, unincorporated business. we're not where we were in real terms 14 years ago. it's looic the 70s treading water, occasional ups and terrific downs. we're essentially treading water. if see this with japanese companies, economies terrible, but balance sheets in excellent shape with the cash, very strong so you may buy equity, but not the economy. >> that's right. getting back to what's going on in cypress, it is a scary, bad precedence to take savings. i don't agree with this. i don't like it. what happened with food stamps, and this ties in, you got a creeky entitlement structure that you have to deal with is

that the government purposely allowedded people who were within means to go on food stamps before they became destitute to stop them from dropping into the poverty ranks. what do you think of that move? >> well, again, it's a combination of a politics as well as the safety net, and the key thing is once we get to the economy moving and in a few years, one thing about the economm is eventually it comes back, is can it be scaled back. >> when the economy comes back, people hooked to the point where they are entrenched in entitlements and don't participate, you have done more harm than good. steve forks, as usual, thank you very much. >> thank you, charles. we asked steve forbes is what happened in cypress could happen here? we'll ask grover norquist next. no new taxes from president obama, he joins the company at 10:35. the affordable care agent, well,

or let's call it obamacare, was supposed to make health care cheaper, even the health team and services secretary, coot lean sibelius says, that's not true, and i quote, these folks move into a fully ensured product for the first time so there's a higher cost associated with them moving into the market. joining us now is congressman michael burgess. congressman, the question is at this juncture, are we stuck with obamacare? >> you know, good question charles. i don't think so because not of anything necessarily conservatives in the house of representatives are going to do, but because the administration itself is really starting to fray around the edges on this thing, and let's be clear. they started this -- i think steve said it best, the chicago school of politics applied a

safety net program, crafting the affordable care act, but where were the governors when it was crafted? why were they not in the room or part of the discussion? here's arguably the exec at -- executives with the greatest foot print in the country, and they were never included in the program. hide the ball before the election, we tell you after the election. the governors found out after the election, were horrified, and were not going to participate. the cost is going up. the preparation at hhs is nowhere near where it should have been at this point. remember, six months time, people are supposedded to be able to go online and sign up for benefits. i don't think they can do it. >> here's the thing, representative burgess. you talk about these governors, and more and more governors who would in the be involved in this or set up exchanges say, okay, we will. it's really hard to tell constituents, we're not going to

take what appears to be free money from washington, d.c. to help set up health insurance exchanges. it's a political tact by the administration that seems to be working, and once states have exchanges, maybe that's with we cross rubicon and there's no turning back. >> i'll point out texas has not taken the bait. >> i know they haven't. >> two situations here. the exchange is 26 states are not going to set up exchanges, and that's a big deal meaning of the federal government under statute has to run exchanges, and, again, they are not prepared for that task. the other side is the medicaid expansion, and you hear a lot of headlines, someone's in or out, and governor comes on board, but the state legislature says no dice. remember with the medicaid expansion, there is no -- this was something created by the supreme court. they separated existing medicaid from the medicaid expansion under the affordable care act, and the governors are under no

time constraint to make the decision. i think they are wise to hold back and see what really -- the senator for medicare is willing to bring. >> i agree with you. could be the last stand on this thing, and the window of opportunity is when people see the health care situation decrease over the next couple years. that could be the one to reverse things. if the governors stand strong, it could be the last line of defense. representative burgess, appreciate you taking the time this morning. talk to you again real soon. well, the next bubble to burst could be student loans so next, we've got a college student that tells us why, and it has something toot with what -- to do with what kids are majoring in. ♪ [ male announcer ] how can power conmption in china,

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>> a judge approved the americaner of the u.s. airways, and expected to close, and shares of u.s. shares up 35 cents now. walmartments products to you faster with customers delivering them. walmart gives customers a discount to cover the ost of gas, latest competitiveness to ballet amazon. no surprise here, the new york

yankees, the most valuable team inter 16th year in a row. the team worth an estimated 2.3 billion, the average baseball team worth 23% more than last year. everyone's partying thanks to tv rights. just coming out of the cloud of the dust from the housing bubble because the student loan bubble the next to go? a kid says maybe and he'll tell you why, that's coming up. [ kitt ] you know what's impressive?

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>> well, the student loan bubble could be about to burst. banks wrote off $3 billion in student loan diset in january and february alone, up 36% from last yearment joining us is charlie kirk. you know, people point to different reasons it's happening, and, obviously, it's easy to get a loan that why not take it, and there's hims the loans will be forgiven. you say that a lot of kids are just picking the wrong majors? >> right. well, too many go to college first of all. i have friends in college who want to be a mechanic or plumber, but they study eastern medieval history without reciprocating value. i think we look at the bubble now, similar to what happened in the housing bubble. right now, a new report was released that 35%, up 35% from last year banks are writing off student loans. it's similar to what happened in 2008, and we see a similar trent. >> but do you blame the kids? i mean, if i'm 18 years old,

this medieval thing is exciting to me, or do you say -- does the school have any responsibility to say, hey, letting you know, if you want to study sociology, 23% of kids are studying that, but unemployment rate is 50%. is there smm responsibility for the schools to say maybe, you have to know you may not get a gig, a hobby, but not a job. >> right. there's two parts. there's a cultural perspective and the governmental, and both of contributing to the problem. the culture around it, when you're in high school, your counselors and teachers say you have to go to college to be successful and get a four year degree. the colleges want students in the university, but they try to make it seem that, you know, you have a sociology degree, you can compete. that's not the reality. the reality is that if you get a degree studying littleture, something that might not be competitive, you won't find a job. they have to know truth going in, and there's nothing wrong with a two year degree or

getting skills to succeed. >> i hear what you're saying. liz mcdonald here. i get what you're saying. look at this stat, seven out of the top ten nonprofits in the country are universities, sitting on billions, if not over a trail dollars worth of assets. to charles' point, should they offer like trade school trade school degrees in electrical engineering or things that are useful like in finland and sweden. is it the colleges' fault? should they offer those programs? >> i think there's fault on both sides, and i think it always comes down to the individual. you look at the colleges raking in record profits, not necessarily profits, but they are raking in money, new student and enrollment. they dent have to change. look at the individual for the student, and, also, the parents and teachers that push their kid to get a four-year degree. there was a study released in colorado that when people get a two-year degree or professional

degree, they earn more in ten years than somebody with a four year liberal arts degree. if you are an electrical engineer or plumber, that's admiral profession that reciprocates in value in 10 20 years. no matter what happens, we need cars fixeded, lek -- electricians, and there's going to be a shortage in 20 years. >> the federal government provided loans to a point where they ran up the price of tuition so much so far that you can't afford it anymore? you get out of college and on a mounting debt. is it -- is there any blame amongst your peers placed on the federal government? >> unfortunately, they don't blame the federal government and there should be. they subsidize the problem encouraging kids to get degrees they should not. you look at the loan industry that president obamaments to expand, wanting loans and grants, and that sounds good like a great idea to a young person especially. the peers said we need more loans and grants. is that investments in things to

reciprocate value or creating more kids to go home and live with their parents? we have to ask ourselves this, and out of young people, they think it's good we get grants and loans, but the good intention will not necessarily translate into public policy. >> also, charlie, there's a hint, just a hint that maybe a lot of loans are going to be forgiven. i want to bring up one thing, a degree in literature is helpful if you happen to be on jeopardy. keep that in mind. i always wish i had that when that category comes up. thank you very much, we appreciate. >> thank you for having me. >> countless epa regulations on the books, laws from everything from drain cleaners to car emissions. well john stossel is not a fan of the big government. why jumping into the hudson river? he'll explain it after this. >> even here within sight of the empire state building, a short distance of millions of people flushing, i'm willing to do

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>> time for a check of the market getting traction after being sideways the first hour of trading, up 33 points, big board back at 1450, and, nicole,

though, the stock all over the place, blackberry. what's going op? >> watching it all over the place, particularly in premarket. right now, up two and a quarter percent at 14 89. they had a run, up 108% with the quarterly numbers, first quarter revenue missed, posted a surprise profit. we'll watch what happens, lost 3 million subscribers, and it's about the z10 and what happens in the next quarter going forward for blackberry. it could be key. we know they have the million orders, but we'll see how popular it is. so far, goldman sachs and citigroup did not like it. >> a lot going on there. i also heard you hit the basketball court recently for charity. >> i did, right here at the new york stock exchange. we have the members hand cap children's fund, and i was warming up and shot ten foul shots. i got in six, charles. >> wow. >> so i don't know if 60% is

going to advance me to the next round. again, it's for the children, but i, you know, nobody likes to lose. >> tell you what -- >> i'd like to advance. >> i got word up in the control room that dwight howard in los angeles wants to talk to you later about your tech week. >> we'll see. i'll let you know how it goes. >> good job. >> thanks. >> john stossel is an athlete, but not a fan of big government. what's an example of the overbearing gofort education? the epa. does he think regulation is a good thing, and why in god's name is this guy jumping into the hudson river? [laughter] >> even here within sight of the empire state building, a short distance of millions of people flushing. i'm willing to do this. all right, so, john is here, and, john, you jumped boo the river, and despite the glow, you laved to talk about it. why? >> because this is one reason to

have government. the founders didn't think about this, and our beloved free market won't care for pollution. my smoke goes to your lung. my sewage goes to your drinking water. we needed government to set some rules, and here's a case where they did a wonderful thing. i jumped in to point out life has gotten better. the hudson's cleaner. we forget that when i was young, you couldn't open windows in the city because there was so much soot in the air. there was black garbage coming in. now you can. the irony is though they were spending $700 million when they imlished all of that. they set some rules. they funded some sewage treatment plants. now they spend ten billion. the job's done. stick it fork in it. it's done. >> government jobs are never done. >> no, they always spend more. >> fixing 48th street for the last 20 years. it's a slap happy job, never done. >> our mayor wants to ban the foam containers, which, of

course, means you'll use paper, and i double cup because -- >> double cup that, but jumped into the hudson. okay, confused on that. i would not jump in the hudson and use a single cup for that, but there's a point then. the main point is that you say these -- there's good things from government regulations at times, but don't they go too far and all go too far, becoming giant bureaucratic monsters and just consume money and punch out new rules, and at some point, i think we hit an inflexion point where bad out does the good. >>s and that's the point of the show. we're long past that. yes, it was good. now it's absurd, just another government money suck giving money subsidies to rich movie stars to buy hundred thousand dollar electric cars. they are out of control like most the government. >> did you submerge your head in the water too? >> the hudson is fine. it's recommendedded for pregnant

women. [laughter] >> you're going for a marathon swim with liz. she's jumped in. how many vaccines? >> nothing in particular. >> already have 20 shots? >> we swam around the city before there was sewage treatment, and now there's treatment, and it's very -- it's clean enough. >> it's not something i would do, but you lived to talk about it, and your show is going to be great because this is a big debate. how far should agencies go, and i'm sure somewhere the judge is watching us, oh, get out, get at him. a lot of people don't like what you are saying, but it's a great point, and we'll watch the show tonight. thanks, john. grover will join the company after the break, and here's the thing, is he ready to take a victory lap on the budget? that's next. ♪ [ indistinct shouting ]

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time, six tellers inside took care of the line, in about 30 minutes. there is a sense of optimism that at least things are open, moving along, but, still, a v r very deep sense of anger. >> feared with this bloody situation. are we a civilized people or communists coming from congress? that's ow the european friends, behaving again. this -- people -- >> and that's the regimeceps that we've gotten here, charles. folks are angry about this. they have capital controls left on them the next seven days up until the government telling them they can only withdraw 300 euros a day. people worried # about putting

money in banks and want to ttke more out. back to you. >> a sad situation, but they are handling it well. thank you, appreciate it. grover norquist. you heard rich talking about cypress, and are you worried about taxes on our savingsing thes here -- accounts here in america? >> always be married. advocates of ever growing government are on the lookout for new ways to tax, new things to tax, and new ways to get their hands on assets, and as long as the obama administration, the democrats keep planning on spending a trillion dollars more than they take in, they are always -- whether it's a vat or higher income taxes or more business taxes or going after people's 401(k)s and iras in argentina, discussed by some in the left in america, yes, we should be concerned. i think the republican house will stop it for the next two

years, but we should be on the lookout. >> all right. it's liz here, grover. getting back to the tax on 401(k) savingsing thes, -- savings accounts, the brookings institute testified about it and an academic talked about taxes 401(k)s getting at the honey pot. there's a backlash against that. will it come up again, and how many congresses going forward? >> it'll keep coming back about forever because the appetite for the people who want to spend other people's money knows no bounds. i mean, the drive to get government to take control of health care which dumb my -- culminated in obamacare dates back to 1948. they kept coming and coming, and people thought they won the argument, and it kept showing up, so we're going to fight this argument for 50 years against going after your 401(k) and trying to appropriate or

exproposeuate resources. >> speaking of fighting the fight, you have more than anyone else, and last week, president obama signed a new budget, continuing resolution, whatever you want to call it, but either way, it was all cuts, no taxes, and are you taking the victory lap on that at all? >> well, i think the republicans did exactly the right thing going back to 2011, no tax increases. we have to have two and a half trillion in spending reductions from obama's plan, and they are holding to that agreement. obama tried to renegotiate it at least three time, each time republicans said no, so from now until october, it's all cuts, no tax increase, and that should continue moving forward. >> grover, where's the next major battle going to be? will it be, you know, resumption of the sequester or will it be the continuing resolution? where's the next major battlefield in this going to be?

>> well, there's efforts to try to talk the republicans into negotiating on taxes, but the president has no leverage. in january, he made 85% of the bush tax cuts permanent so there's no more automatic tax increases as tax cuts lapse, so now the only way to raise taxes is to get the republican house to vote for them. that is not happening. we're going to have the continuing resolution which takes us through to october, and then the caps come in, the legal caps on raising taxes. there's going to be a fight on the debt ceiling because republicans might insist on more spending restraint because obama's going to have to come back and ask for a higher debt ceiling because obama and the democrats in the senate have just kept spending. >> so that debt ceiling debate, the last time around, i think, maybe the conventional wisdom was that the republicans lost that battle, you know, giving us

sequestering, but i think the aftermath of that, how do they get around it this time? you know, do they say, listen, we had sequestering, the world didn't fall apart, the economy's getting better. is that the tact to use or say, listen, folks, you are taxed more and more. this is what we warned against. >> no, no, republicans won the fight in 201 # 1. you want a debt ceiling increase? cut spending two and a half trillion -- >> sorry, i don't mean that part, but the public relations aspect of it. >> yeah. well, yes, the establishment press tells you what a bad idea it is to have a budget idea without a tax increase. that's true, a given. they always will. we go back to the american people saying our job is to protect you from their tax increases and from their overspending. that's -- you never get to win that fight. you manage it, and you fight it every single day as long as the left keeps demanding more of

other people's lives and income. >> without a doubt, you must feel so much better now than you did a couple months ago. the president's approval rating has been falling like a rock in large part because a lot of people who were promised they wouldn't get a tax hike got a tax hike, the payroll tax hike, and people say, to your point, that maybe, you know, it's not all about taxing, but we need to find ways to cut spending. you must be feeling a lot better now than just too long ago. >> taxpayers are safer than they used to be. the president made it clear he just doesn't want to tax the rich, but tax everybody, and that he has no interest in any budget reform, any entitlement reform, and the good news is the ryan budget plan reforms entitlements, reforms welfare along the lines of 1996, and does tax reform that doesn't increase taxes. that budget balances the budget in the next decade without raising taxes. there is a model for success.

the republican house has passed it. we now need to have a senate and president willing to accept, yes, for an answer. >> since the battle goes on forever, another 50 years, you look robust. you'll be front and center. thanks, appreciate it. >> thank you. >> the ims has an answer to our dependence on fossil fuels? a global gas tax, oh, and you won't believe how much it costs you. that's next. ♪

>> s&p 500 passed the all time closing high, and we'll follow it closely for you. now, let's look at gas prices helding study over nine, dropping a tick, and national average is 3.64 for a gallon of regular. next, the price of oil, trading up eight cents, 99.6 # 6. the time gdp released this morning. quarter where everybody was to shop for halloween, christmas, and other holidays. now to the housing market, the latest freed from freddie mack, 3.75%, a nudge from last week. former south african president, machine dell la admitted to the hospital for occurring lung infection. was in the hospital in november for the same issue. the president inflicting maximuo

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>> not breaking october confetti, but the s&p 500 above the all-time closing high and market gaining a little momentum. now, we saw momentum lost because the streak is over m that's right. the nba last night, the miami heat lost to the chicago bulls, 101-97 ending the heats' 27-game win streak. miami's impressive streak finished six weeks shy of the 33 win streak record.

i saw the game. it was fantastic. nicole, the fda approves a drug for ms, doing work there. how's the shares? >> they have. research and development working through the stock up #4%, an annual high, a finding by the fda approving oral ms drugs, and, obviously, for multiple sclerosis, expected to top $3 billion by the year 2017. it's expectedded to also to be launched within a gain of the s&p 500, and you noted, an all-time high today catching the closing high back in 2007. obviously, good news for the big bulls out there who hopes margs continues to the upside. >> good news for those with ms. the company is amazing. thank you, nicole. i got a company called american rail care, making railroad cars. listen, this one, you can't look back, but forwards. steve forbes talked about america getting better.

we will, and as we get better, the demand for cars will be phenomenal, particularly, two areas, tanks and cover hopper rails. this is where the company axels. the stock has been phenomenal. it's going up. execution is phenomenal. the streak continues to raise their guidance for this year and next year, and it's one to look at, arii, american rail. the imf calls the governments around the world, all of them, including, by the way, the united states, to impose a higher tax on gas so that this discourages us from using fossil fuels. bringing in peter barnes, exactly how much do they want to charge? >> in the u.s., charles, a dollar-40 a gallon. a dollar forty. >> on top of what we pay? >> that's right. higher taxes in industrial countries to reduce carbon emissions, fix other problems out there, but this would be a

tripling of gasoline taxes here in the u.s. sending the price of a gallon of gas north of five bucks a gallon. yesterday in a speech, the second in command said, quote, the time has come for subsidy reform and carbon taxation, and, charles, as you imagine, contributics blast saying a tax increase of that magnitude would hurt economic growth and unfairly hurt lower income people who have to buy gas. >> yeah, i know, they never think about that. what was the dude's name with the quote? >> david lipman, american number two. >> i bet he hopped on a private jet to get back home. we appreciate it. >> you bet. >> all right, more "varney ande. company" next. cottrade's smart i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time.

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>> bird's eye, you know the names, i'm not the only one eating this stuff, but now buy the stock. pinnacle foods traded on the new york stock exchange tailed, and we have the ceo joining us now. bob, congratulations on yipo. >> thank you so much, and thank you for having me on this morning. >> thank you for all the delicious treats you sold to us over the years. i wonder if you will have exercise products because, you know, you got to balance what i'm eatingment i'm helping you out a lot. >> you're missing, though, that the single largest bran is

bird's eye, the ultimate health brand. we do everything. it's in moderationment. >> you have grown through a strategy, beginning as vlasic food, known for the pickle, and you made acquisitions. is that why you are public? planning on using currency to continue with the strategy? >> you're right. this business has been built over time organically and through a series of acquisitions to get the great port portfolioe have today. the biggest milestone in our history was 2007 when blockstone acquired this portfolio, and we then acquired bird's eye foods, and from the very beginning, their intention was to build a better company that we could take public, and so we're ready right now, and we've got an organic growth story that allows us to deliver great total shareholder return out of what's a slow growth environment. mna is an upside, but we don't

control it. >> i don't have a lot of time, but i want to ask, one of my themes why the great and large american companies do well. you talked about organic growth. you're talking about global growth here? >> i'm not. we are a north american focused company. it's ad goo point -- it's a good point because the top line growth has been tough; but what we do is improve the market mix to add value added products and have a good focus on running a lean company, and what it tells me, it's a really good discipline that allows you to deliver great shareholder return in a charged growth environment. >> so far, the street is happy with it, a very successful ipo. congratulations. i'll chip into the bottom line often. see you soon, bob. >> all right, thank you. >> more maximum payne after this. iday night, buddy. you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards

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♪ charles: the president plan to

maximize pain heads to our border. homeland security will cut 4000 employees. it just does not have to be this way. >> why should we, you know, spare the change somewhere else? come on, this looks pretty obvious. there is somewhere else we could not. >> we need border security desperate in this country. charles: it is maximum pain. then again, how is going? dagen: also.