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>> a news alert here, we want to bring you up-to-date on north korea. according to state media kim jong-un has told to be ready on attack, and missile flew two stealth bombers over south korea as part of a military exercise and we'll have more on north korea with kt mcfarland in the next hour. around the country, they're sending the president a clear message, approve the keystone pipeline for the benefit of the economy. it's the first time that lieutenant governors have banded together to advocate something national. we happen to have one of them on the show and lt. governor

sanchez, good morning. >> good morning, good to be with you. >> it's good to have more voices out on the situation. and what compelled the lieutenant governors of so many states to band together on this issue? >> well, first, let me say i was very proud to be one of 22 lieutenant governors to be urging the president to approve the pipeline. we understand it's about job creation and working with our governors to provide opportunities for our citizens. i can't think of a better project than the approval of the k k keystone pipeline that would allow 20,000 plus jobs that would put americans back to work. and we're talking about good high paying jobs, welders, electricians, heavy equipment operators and more importantly allows america and north america to be energy independent. and here under new mexico under the the leadership of governor martinez, we're reducing the

corporate income tax and levelling the playing field and creating jobs we think the president ought to follow the lead. charles: some of these you may get a pushback, but i think the one thing that's really clear is that the american public is behind you. do you think because it's a different set of individuals, a different, you know, again, it's a very unique idea, the lieutenant governors of these states, coming through and saying, look, it's economic common sense, they've addressed the environmental issues and this is something that's needed just for america itself? do you think your individual group coming in now will have some extra influence? >> well, we hope so. we believe that we have an opportunity, we have a strong voice. we are at the forefront working with our governors making sure that we're doing everything we can to create opportunity in our states and if you look at the states that are moving forward, it's those governors and lieutenant governors who are leading with common sense regulation that would allow the private sector to continue to grow, reducing taxes, reducing

regulations and common sense values to job creation, so we urge the president to do the same? i mean, it's about energy independence, about dealing with a neighbor to our north who is trusted and somebody who shares our same values and we believe that this is the right thing for america and we think as lieutenant governors we have a say in this. and that's one of the region we're urging the president to approve the keystone pipeline. >> the irony, if you don't build the pipeline it will get delivered by truck or more polluting ways and get shipped to china and virtually no pollution controls. what i need to ask you about for the viewer though, the policy angles here that are underreported by the media. more oil, meaning that saves america more money than the payroll tax cut and strengthen the dollar and approve the deficit and put a lid on inflation. did you address that, and how many republicans and how many democrats were signing, actually signed that letter? >> well, let me just say that of

the 22 lieutenant governors, they were all lieutenant governors who signed that, but you look the at the big picture. over 70% of americans in polling showed that they support the pipeline and of that, a vast majority of democrats so it's not a partisan issue, it's about common sense ideas and it's about something that is shared across the table by all americans hobble this americans who believe it's the right thing to do. this pipeline has been studied more than any other pipeline and we've addressed concerns and you're right the safest way to deliver oil to refineries in the southern part of our countries. it's safe, common sense, we believe it's the right thing for this country. let me remind everybody that america is the the largest consumer of energy in the world, or the largest consumer of petroleum products. if we want to move our economy forward we have to have a strong energy sector and this is the right thing to do. >> absolutely. a strong energy sector means strong security, it means job security and means keeping a lot of dough at home and that's not

a bad idea either. and i want to say thanks for taking the time out this morning and stepping up, because obviously, the clock is ticking and hopefully, i think a lot of people share your sentiment that this will be approved. appreciate it. >> good to be with you, thank you, see you. >> if you want a good idea where the big government will ultimately get you, we know you can just look overseas, for instance, look at france, handouts, exploding spending, so, also, they have high taxes, but that's not enough. what's next? a 75% tax on the rich. we've got a twist on that, that's next. [ male announcer ] you are a business pro.

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>> french president francois hollande is reviving calls for 75% tax on the rich. a few months after it was rejected by the court. hollande is changing up the proposal, instead of taxing individuals directly, he's looking to tax businesses who pay salary over 1 million euros. france's first quarter is shaping up to be the worse and popularity plummeted. and hedge fund poleton was

considering moving for the reek, but puerto rico wants to stake a new claim as a tax haven for the wealthy. travis, you say that governors need to follow this tax haven strategy like puerto rico? >> well, that's right. viva lower taxes and both the previous and the current governor of puerto rico are laying down some pretty attractive tax havens and tax shelter strategies. we're talking about lowering how you would be-- or possibly even not filing a u.s. federal tax return, but still getting the advantages for both security and tax reasons within u.s. territories. and puerto rico is going after what we know here in florida is true. that people will move where the price of work is better off. >> one of the bigger industrials of puerto rico, the drug industry is there in part, great regulations and great tax policy. and no doubt it would work. how would it be implemented? listen, we're got the weather,

there's no doubt about that, but come over, because we saw with john poleton, maybe put it out there, maybe he didn't. the word was out and then rejected quickly. how do they do that with people who move there, actually embarrassed, ala sims or poleton. >> whether paulson goes or not. there's no apology for of getting a place to do business. the trend from new york to connecticut and connecticut to florida and it wouldn't be surprising to find more financial services firms being interested especially when they have major tax advantages on the capital gains or sale of any kind of securities that could often times lower rate, effective tax rates down to near 15%. so, in terms of how does it happen, what's the magic of making puerto rico or south florida move? it's 183. 183 days is what you need to be

a resident there, so, there are other reports that wealthy fund managers have been a part of that move and i expect that there will be more to come. >> and travis, it's liz macdonald here, is puerto rico putting itself in danger on governments around the world zeroing in on puerto rico as a tax haven. and we get it. puerto rico slashed taxes down to zero and that's why you have hedge fund managers headed in there. cyprus is treated as a tax haven and taxing bank deposits there. is this a concern that puerto rico has made itself vulnerable to the tax man globally? >> what they're trying to do is give you advantages for any financial services firm, located within the u.s. jurisdiction for security and tax purposes, but give you also the advantages of being slightly off shore. what we know is there's up to 20 trillion dollars setting off shore, much of the caribbean experience in the past years have not been totally optimized in puerto rico, that's why

you're seeing a shift in how they're promoting their tax incentives probably away from some of the advanced manufacturing and more towards financial service firms, but other firms like microsoft have been in puerto rico for quite some time. charles: and also, travis i guess we should point out it's an american territory and probably be harder for other places to it come. that's something they should probably promote as well. the cayman islands is the cayman islands, but we're protected by the american laws. >> the irs, no, wait, the irs is going after-- the irs could go after them. imf can't and-- >> irs is zeroing in on off shore tax shelters. watch out. charles: travis, we appreciate it. we'll see if other states are following the example. i think some states are in too deep in the welfare, but we'll see. >> thank you. >> another example of the green revolution going bust. a luxury sports car maker, you know the fisker, it's

considering filing for bankruptcy as it continues to look for an investor. and one week in america, saying it's a common practice for the industry, liz. i want to start with you on this. fisker is in trouble? >> yeah, common practice, we're hearing new normals all the time as government supported, right, charles? and let me tell you something, the reason why these companies exist is because of political connections, and the reason why they have political connections is because they've got a lot of political dough headed their way. we don't really-- i mean, as taxpayers, you could see the taxpayer groups getting up there and saying we don't like what's going on with our companies like fisker and zero in on the business practices and they expose themselves to criticism? >> yeah, i mean, it's a sexy car, but without the u.s. taxpayers, probably wouldn't exist. >> it's time to pay up in a couple of weeks, how are they going to do that. >> no bailout for them, i don't think. >> well, cyprus has reopened its bank, speaking of bailouts, if you will. heavy restrictions yesterday after being closed for nearly two weeks, we've been discussing

obviously, going to show you guys, the unravelling of the banks there, it's been a huge topic and here is just what a few cypriots had to say, take a listen. >> generally speaking the economy is likely to get worse as the conditions of the bailouts are rolled into place. a and-- >> is this situation, and people we are-- >> they used us basically as a guinea pig and we don't know what tomorrow will bring with these cuts and these haircut as they're calling them and the levies on people's savings. >> i think it's going to be for, you know, companies who are based here to stay here because the confidence in the banks have now disappeared. >> when you can't have access to your money and it's the second week, how am i supposed to fulfill my business requirements? and what it's done is destroyed a lot of businesses.

>> destroyed a lot of things. coming up at the top of the hour we will have an in depth discussion on the current situation in cyprus with the counsel general of cyprus, she will be here live, you do not want to miss it. right now, it's time to switch gears, now, we never pass up an opportunity to show you this, so roll it. >> but we have to pass the bill so that you can find out what is in it away from the fog of the controversy. >> oh, yeah, that was a serious fog. and the next guest found obamacare to be something of a double-edged sword. on one hand the new health care law helps to generate business, but regulations and costs associated with it are a huge headache. and waiting for the company, he is the ceo of the executive care and you're in the home health care industry, so this must be some sort of economic boon for you. >> to come extent. we are beginning to work with so-called aco's and these are

accountable care organizations, which comprise of hospitals, nurses, rehab centers and other place in the medicare market, to provide care to elderly. where we come in is at the end of, when care ends, our company comes in, because on the medicare scenario, it's episode-driven. once the person is treated and they go home and medicare stops. our company comes in and provides custodial care. people, medication, reminders. and tooking a meal. >> who pays for that. >> it's paid out of pocket most of the time by the consumer. sometimes long-term care insurance kicks in. >> how does obamacare help you then. >> the so-called aco's are looking to make discharges. and under the new rules of obamacare, the aco's get penalized for admissions, 30

days of discharge, if the patient goes back in the hospital and extend diagnosis, they may not get paid to treat the person all over again. >> our job is to keep the patient safe at home so they don't get-- >> do they recommend your company? is that where you're getting the benefit? because basically when someone is discharged from the hospital they say, hey, let's go to the extended care program so you don't end up back here in 30 days. are they pushing the patients straight to you, is that where you're benefitting? >> one of many. there's quite a few companies that provide care that we do. >> right. >> so on a rotation basis, sometimes they give out the referral and sometimes give other company referral and depends on how we perform. >> so we know there's a giant honey pot of money for the medical side of this. hospitals, companies like yours. where is the bad part? where is the double edged sword part? >> the other part, i'm an employer as well. so, the obamacare, the employer

mandate is going to kick us hard because we are a big business in terms of in our industry. we're over 50 employees. so my expectation is that we are going to be paying for obamacare. >> despite the higher business you may get, that may mean fewer employees, more work, longer hours for the employees that you have. lower bottom line for you. when you weigh them both, would it have been better off for the industry and the patients and everybody involved if in health care law was never passed? >> i would say so. home care specifically is very labor intensive. if we don't hire, we can't provide services. so, do we have to stop hiring and stop growing? i don't think so. we're going to have to continue hiring and growing. but at the same time, we'll be penalized. >> what you're saying, we've been reporting this, too, charles and nicole has. under obamacare they're setting up the aco's and they will turn away patients and be readmitted

because of improper care at the get-go, so that's a refinement of what the economy is and that's what your providing is, home patient care, meaning more money has to be spent on it, right. >> correct. >> more money to spend, but your people who work for you won't be able to enjoy that more money because you're going to be squeezed. we've run out of time and i apologize for mangling your name a little bit, but this was important and it's a great revelation from someone who is on both sides of the situation. we appreciate it, thanks. >> thank you very much. >> now, here is the thing, would you actually sell your life away for a quick buck? after the break, a guest who says, yes, people who are actually doing that and now, it's because of the economy. >> while cnbc is on tape we're open for business. ng ] ♪ [ male announcer ] every car we build must make adrenaline pump and pulses quicken. ♪ to help you not just stay alive...

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release the federal budget outline on the 10th. two months late, the president was supposed to be releasing it february 4th. the democrats and republicans passed rival budgets, a donny brook. more and more people are selling their life insurance policies forbe cash right now. a lot of it is because they're scared of the economy and looking for options with more. let's bring in scott page, the lifeline program, scott, welcome to the show. >> good morning, it's a pleasure to be here. >> scott, this is one of these things that when people initially hear it, there's some serious emotions on both sides. some people think that this is just outrageous and that older people should never consider this type of program and others say, wow, this is something of a god send, particularly in a bad economy. help us out with both sides of

the argument. >> yeah, well, i think that those that are considered, don't understand it. life settlements have been around for 25 years and provides a great opportunity to take a life insurance policy that most people view as a liability. they pay the premium every year and never actually believe that they can sell the policy for the cash they need today to help them enjoy the golden years once more. >> okay, but they believe they will pass away at some point? >> the original-- the original intent when you sign up for life insurance and what makes me change that i'm willing to pay an x amount of money to the point i say, it's not worth it, i want to cash it in. >> absolutely, life changes. you know, people buy life insurance for a specific reason. people considering selling their policy today no longer need them or want them. they're face with-- they make sure their children can go to college or prepare for contingency.

now they have to worry about themselves. they're faced with large premium every year and surrender it. it can be eight to ten times more than with the carrier. and it brings with it emotion. everyone needs to face their own mortality and benjamin franklin put it best, there's nothing guaranteed in life, but death and taxes. and the good news-bad news. the good news we're going to live longer the bad news, how to pay for it. seniors have to think of less traditional values, think outside of the box, a settlement or even a reverse mortgage. nicole: nicole petallides here. i have a quick question, when you talk about whether people need it or don't want it. ultimately can you just blame the economy and make this similar to ira's and retirement plans, people are character out. not that they don't need it or want it, they don't have a choice, right. it's almost like pawning your jewelry, dipping into your

retirement fund. and selling your life insurance policy. >> well, actually the demographic of selling policies are leaning toward the wealthy, healthy individuals. people and estate planners, financial planners who are finally recognizing life settlements as an option or looking at the total package and we have a trust here and it's being diminished by life insurance premiums by a life policy that we no longer need. some the characteristics of our clients are people who have been working for a company for years and leave the company and given the life insurance policy. okay, what do i do with it? >> scott, essentially, it sounds like what you're saying is a lot of people are saying, now what, my kids are going to squander my hard work and i might as well squander it, scott, thanks a lot. >> we appreciate it. >> thank you. >> i bet this is good, too, we'll talk again soon. >> it's old america versus new america, old america playing dodgeball in gym class. you remember that? -phow about new america, a ban dodgeball because get this, it's

a human target sport? are you kidding? that's next. ♪

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>> well, in magym classes acro the country, are getting the ax, fearing that dodgeball is leading to bullying, this the wussification of america? >> i love dodgeball, it is wussification of america. and one comment is right. it's the great equalizer, let the downtrodden inflict pain on the bullies. they're using foam balls, but we saw dodgeball being outlawed three or four years ago not just, but other schools. >> a, i love dodgeball and hope my team is good and the second thing wussification of america. two sons i think the first parts

of early years, kindergarten, first grade, everybody gets a trophy at those ages they're small and delicate. once they're to 3rd grade, 4th grade, that's it. trophy for the best, may the best perform erwin. the person who works the hardest. i think when they're small-- >> i had a trick, during the break. >> i want to hear it. >> more athletic. if you already think you're paying too much at the pump, wait for this. the epa announced they have new rules today requiring cleaner gasoline. according to one report, yes, it's going to cost you big time. regulation nation. it's old versus new america, new at 10. that's next. 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.

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charles: well, a national average for a gallon of gasoline now $3.64 a glop. nearly -- a gallon. nearly every american has to pay a small fortune, so what's the government's response if how about this? new regulations by the epa that would require cleaner gasoline. now, the agency says it will make the air cleaner, and it would add only about a penny to the cost ofs gas. however, according to industry insiders, that couldn't be farther from the truth. the api says it'll end up costing about ten cents more a gallon. couple that with the imf's call for a $1.40 tax on gas, and be

ready to open not on the your wallets, but your bank account. welcome to regulation nation. ♪ charles: i want to get straight to the company and the government's answer for high gas prices turns out to be more regulations and higher prices. so, liz, does it really make any sense? when does this stop? >> you know, they're saying the trade-off is less smog and better health for people who live in places like los angeles, but what else is coming is the tailpipe emissions too. in other words, they're trying to make the catalytic converters work better in cars, but, you know, as for the cost estimates right now, don't trust them. charles: oh, no, no cost estimates from the government because they only go higher and higher anyway. >> i'm all for cleaner and better everything. you pay more for organic foods as well. but ultimately, this hits the american consumer a little too hard in the wallet. you know, years ago gas was

$1.8ed. now we're approaching $4. what's next, $10 gasoline? charles: and i've got to tell you, with organic food, people have the choice to buy it or not. >> right, good point. carl charles if i work at wal-mart, i have to pay these higher gas prices. >> yeah. it does hit the poor and the middle class, we know that. that's been the case since the highway trust fund was launched in the '50s. >> and businesses. >> the american lung association is saying what they're trying to do here, it's the equivalent of taking 33 million cars off the road. 33 million cars? that's a lot of cars. charles: it's a lot of cars, guys. it's going to hurt us badly as they've always done. speaking of hurt, cyprus. that's been the story of the week, and through all those discussions we've had one main question: can it happen here? we have to ask, how close are we to something like that happening here in america? >> it's a big story, and you're not going to have the economy return to the way it ever was.

charles: no. >> no time soon. and watch the euro, because that effects all of us. >> it can. and it already is in terms of inflation, in terms of fears of what the government might do if we get a financial crisis in this country. because if things start to get dicey, what are you going to do? you're going to at least withdraw part of your funds and look for weak banks, pull out and spread your deposits to a firm of blanks. >> they're going to keep things going as long as they possibly can until something picks this economy up x obviously, in my opinion, that's going to have to be some kind of bubble. it's something that they're waiting for. >> if countries go broke, your money is not safe, and america is heading towards going broke any way you look at it. so unless that is turned around, that's the ultimate destination. charles: joining us now is counsel general of the relick of sigh -- republic of cyprus. how can governments go through this sort of plan, you know, accept this plan? the government of cyprus, when it's clear that all the citizens are against it?

>> well, first of all, thank you for having me here. as the president stated last week, it was a very difficult decision, but it was the best under the circumstances. and although political parties are behind him -- charles: the people aren't behind him. they can't be behind them. this is the whole thing that i -- the way i saw it was this was a golden opportunity for cyprus to go it alone. yes, it would have been a lot of pain, yes, you would have had problems with defaults, but you're going to have a lot of pain anyway. at least you get a chance to call your own shots, to be your own country and make your own determination. instead of taking rules from germany and the e.u. and the ecb and everyone else who don't seem to have your nation in their best interests. >> well, thank you for asking this because exiting the eurozone was never an option. we're a country that has no heavy industry, we have no big cultural production, and we import everything.

so this was never an option. we also believe in the european union, we still belief in the european integration. we're disappointed. people are disappointed, and their bitter -- they're bitter. but that was -- i read somebody said very well, it was the least best solution. charles: so they all were bad solutions. >> yes. but you know something? the cypriot people, they've shown resilience in the past, in 1974 when turkey invaded cyprus, we lost everything everything. and, you know, service the economic miracle of the '70s and '80s, and we know it's going to be very difficult, but we will work hard. we're resourceful, we're determined, and the most important thing, you know, we're all quited. and in the -- united. in the president and all the politicians, and the people, they know it's going to be difficult, but this is not the first time. charles: go ahead. >> my thought too, also, is a couple of thoughts is how

this -- and thank you so much for being with us, consul general, it's really an honor to have you here. a couple of things. number one, the cypriot people are seeing, obviously, the haircuts rights out of their bank accounts where they think their money is safe. are people going to pull their money out, and then expand it to the eurozone, cyprus gets hurt, the euro drops, are there other european countries really starting to not believe either in maybe they feel betrayed by the eurozone. >> thank you for this question, i'm going to start with the reply to your second one. it seems also some other countries now, they start worrying about this. everybody who has 100,000 euro in the bank, you know, european union, the deposits are insured, but they do worry, and we see more solidarity now tan last week on this issue. now, when it comes to the cypriot people, again, they are

worried. but you know something? you know what happened yesterday? yesterday was the first day that the banks opened after almost two weeks. and, yes, there were some restrictions on the transactions, but do you know what they did? they wanted to withdraw money to send to the children to study abroad. not withdraw money just to put it, you know, under the belled, the way our grandmothers used to do. because we're a family-based society, and we help each other. we gave priority to the elderly that didn't have debit cards to go and get money, and everybody was calm. they're worried, their disappointed, but you know something? we will move forward. charles: i've got to tell you, we've watched this for the last couple of weeks, and earn -- everyone is extraordinarily impressed with how the cypriot people handled this, and we all know you guys are going to make it out of this. you know, me personally, you know, i wish there was a way they could have seized the moment. you know, you've got some great assets there, and i don't want you guys to lose your natural gas and everything else.

unfortunately, we've run out of time, but we would like to have you back soon. thank you very much, appreciate it. >> thank you. charles: you guys have heard about fancy homes, how about baller basements? we're going to go to nicole's house in a minute. [laughter] that's someone's basement, by the way. we have got more to show you, and we're going to tell you how much they cost. be ready to be shocked. that's at 10:25. just a few days after president obama signed a continuing resolution that kept a whole bunch of spending cuts in there, the president, well, he's actually traveling to florida today to promote, get this, spending! yeah, i know, it's a little confusing. peter barnes is with us to help us get the confusion out of the way. peter, okay, the presidentt you know, those continuing resolutions go through, no spending cuts, but now, of course, he's back on this spending cut bandwagon, if you will. >> reporter: new spending. yeah, yeah, yeah. charles, i know you got an a+in political science. [laughter] you know, he's out there being a politician. he's going to be in the port of

miami today to push for new spending on infrastructure. but hasn't been able to get any more money for that since the 2009 stimulus bill, as you'll recall, mainly because of strong opposition by republicans who don't think it worked. and as you said earlier this week, he signed that continuing budget resolution that locks into place that $85 billion in sequester spending cuts. so this looks like the call for additional infrastructure spending is dead on arrival. but when the president releases his budget in a couple weeks from now, he will again propose tens of billions of dollars for infrastructure spending. he will keep pushing his agenda. >> peter, it's e. mac here. you know, there was all in this talk of economic collapse over the $85 billion in sequester cuts. what do you make now of the fact that we're talking about more subsidies for health reform? i mean, how many sequestration cuts are going to need to be put in place to cover the new subsidies for health reform? >> reporter: well, the subsidies, i believe, come from

the new taxes that are can kicking in from obamacare. and so they aren't covered by the sequester spending cuts. but your point is well taken here. have we seen any major impact so far of the sequester spending cuts on the economy? well, not in the recent economic data. but, you know, the critics say that it will hit later this year in some form. charles: yeah. and i've got to tell you, peter, this is where a lot of people think the president overplayed his hand, you know, with the cross country tour with doom and gloom. >> reporter: the sky is falling, yeah. charles: all right. tell you what, we're going to find out -- thanks, peter. fox news contributor monica crowley is here with us. monica, i want your reaction to the president's pushing yet another round of spending, going around the country sort of the way he did with sequestration, and that, obviously, has backfired miserably. now it's on spending, more and more spending. >> this president is all about

growing government, and he's all about spending all the time. from day one, from the first nearly trillion dollar stimulus, charles, this is a man who is constantly pushing government spending as a way to grow government and to grow dependency on government. that first trillion dollar stimulus, only 6% of that money actually went to infrastructure. 6%. if he had been serious all along about directing money to try to stimulate the economy, if he really believed government spending was actually going to do that, then in that first stimulus package he would have directed more money to actually creating infrastructure jobs and working on the infrastructure. charles: right. do you think that's parking lot of the reason this is starting to -- part of the reason this is starting to backfire, people feeling there was a bait and switch in the whole thing? there was a trillion dollars ready to go. >> right. and remember he was sitting with jeffrey immelt, and's making a joke, well, those shovel-ready jobs weren't as shovel ready as we thought they were, and everybody had a good chuckle. we're talking about trillions of dollars of our money being pumped back into the system for

what? charles: and we don't even know where it went. stay right there, monica, because president obama met with sandy hook families and other relatives of the shooting in washington as he continues his push for new gun control laws. i want you to take a listen. >> shame on us if we've forgotten. i haven't forgotten those kids. shame on us, if we've forgotten. charles: republican lawmakers are saying they will filibuster any new restrictions on guns that democrats put forward. we've got senator rubio who said, quote: we should work to reduce tragic acts of violence by addressing violence at its source including untreated momental illness, the lack of adequate information-sharing on mental health issues and the breakdown of the family, end quote. monica, what's your reaction? >> two senators have now said they will filibuster any gun control bill that comes to the floor, because it has a tendency to go beyond the prescribed

things in the bill and really become infringements on the second amendment. but the political problem here for the president and other left-wing supporters of gun control is not the republicans, it's the democrats. you have a lot of democrats coming from red states with big gun cultures and a lot of serious opposition to gun control. charles: right. maybe harry reid might be the biggest obstacle he's got out there. >> you know, do you see anytime in the future a speech that says, monica, shame on you, hollywood, for influencing the american culture with your violent movies? we spend, what, $200 billion a year on advertising, the advertising industry certainly believes media images changes behavior. when do you think that will see anything like that? >> on the 12th of never. [laughter] because that's not going to happen for two reasons. one, that's going after the first amendment, and the far left believes in the sanctity of the first amendment, not so much the second amendment. and secondly, because hollywood gives so much money. they pour so much money -- >> you're saying hollywood is a free speech issue, but what

about the debate about the violence coming out of hollywoodsome. >> they don't want to have that conversation. charles: how could they? hollywood stars tweet anti-nra rhetoric as if they weren't in a movie where they just killed 1200 people. >> and body genocide guards -- charles: it's absolutely ridiculous. >> when you talk about guns, you know, the nra president -- charles: it's called hypocrisy. monica, thank you very much. well, walmart's entering the delivery service. guess what, though? there's a catch. its own customers will probably be the ones making the deliveries, so is something liable to go wrong here if somebody you've never met lives on your street brings your stuff to you? we've got one of the best, arthur aidala, he's next. friday night, buddy.

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♪ charles: facebook is inviting the media to come see our new home on android. speculation about what will come from the event varies from facebook phones to just an updated android app. it's scheduled for next week. amazon, well, they've required a new book tracker called good read. the web site keeps track of books you've read and gives you recommendations for books you might like. the deal should be closed later this year. and prosecutors in colorado at the colorado theater shooting case have just rejected a guilty plea from the suspect, james holmes. holmes tried to plead guilty to avoid the death sentence.

currently, no plea agreement exists. would you ever deliver a product to a stranger's house they delivered online? walmart wants to hook that up together. we've got a guy here who's going to maybe throw cold water on it. arthur aidala, one of the best, he's next. twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfoli find out why 9 out of 10 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.

>> while cnbc is on tape, we're open for business. charles: you probably knew this, but you just can't get away from the tax man, not even on the

internet. the highest court in new york state has ruled that amazon and overstock must, they must collect state taxes for new york state customers. now, this decision goes against the rulings of other courts and could actually set the stage for a showdown in the u.s. supreme court. walmart is looking for a way to help its customers be the middleman. its latest attempt to beat amazon, walmart's going to ask its customers to deliver products to its online shoppers, so it would give customers a discount to cover the cost of gasoline. arthur aidala joins us, arthur, obviously, there's got to be some serious liability angles out there. >> perfect. you hit the nail on the head. in theory, it sounds like a good idea, right? nicole lives in this part of new jersey, and somebody that's online, they have a delivery to bring a new ipad cover in the exact same town, it's five blocks out of her way. obviously, if the doorbell rings and you open it and there's nicole, you're a pretty happy camper. charles: right. >> if you see one of my clients

who's got two robbery convictions and a kidnapping conviction, you're going to be a little bit more nervous about that, let's put it that way. charles: or if nicole opens the door, and it's somebody that kind of scares the heck out of her -- >> yeah. now, here's the liability thing. first of all, let's say that today got that rule about time, right? it can't be that you go and ring somebody's doorbell at 9:00 at night. they're going to have to say you have to make this deliver ri for x time. well, the guy got caught up at the gas station, and the cud threw up, and he's speeding through the light, and there's a little old lady crossing the street, and he hits the lady, and she's seriously injured. who do you think is going to get sued on that one? >> listen, this is only at the brainstorming stage. it came up at a conference, they spitballed about this. >> spitballed? >> well, that's what they said. listen, walmart has been late to the internet game, so they're trueing to think -- trying to think outside the box. what matters here is cargo

insurance, personal liability insurance. there's a lot of start-ups saying, you're unemployed, you help us deliver these packages. but do we know when people come to our door who they are and whether or not they have this insurance? >> the only thing i know for a fact is bouncers in bars in new york -- charles call right. >> there never was a criminal background check until a young woman was abducted and killed. now if you want to be a bouncer in a bar, you have to have a criminal background check by the bar. if they don't do it -- charles: there are definitely a lot of angles to this, but i don't know. walmart somewhat desperate. >> look, insurance saves a lot of problems. charles: i want to switch gears though. we actually had a boxer on the show earlier this week, robert get arrow, he was fantastic. he was on a show last wednesday, take a listen. >> having good trainers on your side that are going to look out for you and managers that are going to look out for your best interests all the time, make sure that you're very well prepared for a fight. charles: now, he's set to fight

floyd mayweather on may 4th, but geterer row was arrested wednesday, the day after we spoke with him, for carrying an unloaded handgun. arthur, do you think the fight will still go on? >> here's what happened. because it's unloaded, tsa the key part of your sentence, he's charged with a much different crime. if it was loaded, he's facing a mandatory minimum two years jail a la plaxico burress. he just won the super bowl. he had the winning catch, and then he goes into a club with a loaded gun, and two years jail. now, if he doesn't get a break, no one's going to get a break. but here robert's -- >> guerrera. the ghost. >> his gun was not loaded, and that makes all the difference. he's charged with a misdemeanor as opposed to the a felony. charles: really? i've got the tell you, all these people around him he said they've got his best interests, it would seem like someone in the camp would have been carrying the gun, and someone would have said, hey, you know

what? it's not a good idea to get on an airplane with a gun, loaded or unloaded. >> who the heck is in his corner, is charles' point. charles: anyway, it should be a good fight. arthur, thanks a lot. >> thank you. charles: it's a growing trend amongst the superwealthy, talking their average basements and turning them into a luxury basement. look at this thing. after the break we're going to bring you some of the most outrageous basements of the rich and famous, and that's one of them. [ male announcer ] how can power conmption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. twe price. invest with confidence.

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>> while cnbc is on tape, we're open for business. charles: high-end basements. that's right, it's a new trend among homeowners. it allows them to expand without losing square foot am on their land. now while also keeping a real modest appearance from the street, so you wouldn't realize what's underneath that house. candace jackson is from "the wall strret journal." the mansion reporter. you always come up with great stuff, but this one had our tongues wagging. the baller's basement. >> exactly. it's the trophy basement, we're calling it. and you're exactly right, it's a way to keep all the kind of wow factor amenities you want at home and all that square footage while keeping a modest appearance from the feet. you can build a 10,000 square foot home, but maybe 3,000 underground. charles: i thought that was a skateboard park, but apparently

that was under somebody's house. >> exactly. that's a really phenomenal basement in the hamptons. it's about 10,000 square feet. charles: you traveled, you went to beverly hills, you mentioned the hamptons. this is a growing phenomenal, we always talk to you about the one upsmanship. tell us about some of the crazy things that you saw. >> some of the things i saw are a full turkish bath in a basement with a pa and an indoor pool. and what's -- charles: what's a turkish -- what is that? >> you don't have one of these, charles? charles: i think about a minute in the bathtub. [laughter] i never signed up if or that. >> it's hand-painted mosaic tile, it's very sophisticated. it's like what you'd see in a four seasons in, you know, istanbul, it's a really fancy home spa. but the idea is these spaces are underground, but they're actually finding ways to get natural light. they're using these tubes to pump in sunlight so it doesn't feel kind of dingy, different than the rest of your house. >> wait a minute, i always thought the basement was the place to keep your kids, keep 'em all in one spot.

growing up we didn't have that great a basement, but is it for that now, or is it turning into the man and woman cave? >> it's actually for the whole family. so you might have a big game room where your kids hang out, but you've also got your wine cellar with a tasting room and a movie theater with stadium seating. charles: whoa, what is that one? is that from space odyssey? >> that's a bowling alley in somebody's house. >> this is like when people talk about their cars, when you talk about basements, you talk about ideas. this is phenomenal. and i, for one, have seen a lot of homes where people are doing these exact things, and everybody's loving it. basketball hoops, people are doing this, and it's great -- the house with the best stuff wins. tsa the house you want to go to. charles: i'm not mad at them, but i am a little bit jealous. candace, you have a great job. keep bringing us this stuff. thanks a lot. >> thank you very much. charles: here's a question for you. do you give your kids an

allowance? after the break, we've got a guest that says it could be the worst thing you can do for your kids. finish [ male announcer ] you are a business pro.

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charles: lift it back to north korea. tensions are rising. this comes a day after u.s. flew to self bombers over korea in an apparent show of force. k.t. mcfarland is with us. nicole: they are running out of food. they cannot feed themselves. they have to import food. they are probably running pretty well. every spring, they provoke a crisis. we give them the food they need to get through the crisis and then the crisis is over. this time it may be different. it feels different. one, you have a new leader.

he is trying to look like a tough guy. he may miss calculate. that is the worry we have. in the normal kind of taunting that the north koreans do, that he may miscalculate and provoke a crisis. he does not want to start a fight he know he will lose. he may make a big mistake. he is new at this. he is trying to look tougher than dad and you could miscalculate. charles: to your point, maybe this kid wants to make a statement. >> the generals are the same generals who are dads and grandpa's house. they all ruled north korea together. when this guy came in, everybody was like, he will be a great

reformer. no he won't. he will try to be tougher. he wants to show these generals how tough he is. this is the most isolated society on the planet. it is called the hermit kingdom. charles: we will probably have to lean on you more about this. it feels like a needle gets closer and closer to something actually very ugly there. our next get is backing a study that says kids that receive unconditional allowances may grow up to be "slackers." a lot of people sort of agree with you. you are saying that there is now some sort of proof on this was work.

>> yes, charles. a few years ago, i was running some nationwide surveys of high school seniors concerned with financial literacy. i asked a question that asked these kids what kind of allowances they had when they were growing up. was it a regular unconditional allowance? was it an allowance which you only got it you got your chores or did you have to basically ask your folks for spending money? the kids who got a regular unconditional allowance, we were just amazed what wound that those kids did worse on the financial literacy question. they were less financially literate. charles: muss an example of the

question. when i hear financial literacy question, i know most americans have a problem with them. >> these are all age type appropriate questions. would you earn more if you had a college degree than a high school degree on average? charles: common sense stuff. nicole petallides would like to ask you a question. nicole: that study sounds legitimate. at the same time, allowance is allowance. it almost feels like if you gave that allowed him they just felt like they got it whether they did a good job or not and you gave them the financial teachings as well, the whole study a be blown up.

if i gave my kids five dollars on friday, but also let you read the lawsuit -- "wall street journal". >> most children do not know enough to teach their children. if you have enough time to spend talking to your child and use the allowance as part of that, you will probably have a very good outcome. the primary reason to give your child an unconditional allowance is because you want to take the time and effort to communicate with kids. that is really where the problem is. charles: we appreciate your time and the study. thank you very much. carlos, the richest man in the world, he got an allowance, but

his father made him keep a ledger on how he spent the money. this thing is hot. a new state that says women are better corporate leaders than men. after the break, i will be surrounded by women. we are opening of the war on this to everyone. ♪ ♪

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do not expect to find it in showrooms anytime soon. it is on sale in europe, but not in the united states. expected to roll out here in 2015. fisker considering filing for bankruptcy. new york yankees third baseman alex rodriguez will make $30 million this season. that is more than the entire houston astros baseball team come by. there is a new report that says women are better leaders than men. do you really believe that? i have three women here who are going to try to convince me. ♪ combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points.

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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 and apply online. creditcards.com. charles: a news alert for you. michael steinberg was arrested today by the fbi and charged with insider trading it is the latest in the campaign to root out insider trading. according to his lawyer, "he did nothing wrong. at all times his trading decisions were based on detailed analysis as well as information that he understood properly obtained through channels that

investors rely on a daily basis." i am surrounded by women. i will not argue on this. julie, does it really make a difference? >> the study claims it makes a difference. i think it depends on the individual. i think women tend to not be as rigid in their thinking. i think the women i'll are more open to exploring other options. >> the rules are that male directors sperm making decisions using rules, regulation and

tradition i tend to agree with julie. i am just saying, i have researched this for each-ten years. i think there are bad women leaders out there. the thing is, women do tend, when you unleash what they can do, they can change whole economies. certainly you can see that in the middle east. charles: i like that point that you brought up. women may be forced to act like men. she took pride in that.

>> you cannot lead from the crowd. she was revolutionary about that. women tend not to get elected into higher office here in the audit states. we know that. overseas, they have the parliamentary. >> i have worked in politics for almost 20 years. women kind of take a back seat a lot. women tend to not go out there and say and the greatest thing since sliced bread. then just kind of barge in. charles: we see those kinds of studies a lot when it comes to investing in the stock market.

women probably have to become better cheerleaders for women, as well. women do not vote for women. >> it is her opinion. it is her view. it is women criticizing her. charles: we have to leave it there. you all are correct. [ laughter ] charles: a 20% cut. you will not believe what senator john mccain witnessed yesterday. he was at the mexican border. that is next. ♪ i want to know exactly what i am investing in. i want 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 choose ishares for the etfs.s ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expense

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charles: we brought you this story yesterday. the border control cutting 20% of its workforce because of budget cuts. john mccain saw somebody scaled the fence and jumped the border. you cannot make this stuff up. >> chuck schumer almost -- chuck schumer also noticed it.

>> cutting defense. are they really cutting it right spots? charles: are they not cutting in the right spots deliver late? >> they have to make those cuts across the board. >> the agency does. within an agency, you can decide. i don't know if you guys are big funnel for sports fans. last night wichita one. they are offering free pizza to all wichita state students if they win. you will be paying more than the pizzas normally cost.

how smart is this? >> will shareholders be happy with this? will it annoyed the customers? charles: it would anoint the hell out of me. my team did not win and i am paying an extra box. >> pay a dollar, yes, i would pay it. i would like to have a choice. charles: they are getting free publicity. why would it pizza hut take that hit? i think it was a good idea until they thought the rest of us could take the burden. you will love this. the highlight reel is coming up next. ♪

charles: here it is.

this week's highlight reel. roll it. you may break one. [ laughter ] you may have to be on disability . he jumps into the hudson. he says it is just about golf. sandra: it is a lot better than "just do it". charles: you can say, just did it. sandra: he took that one quite literally. nicole: someone feed charles. >> i live for dodgeball. i hope my team wins. we are going to be good. stuart: you live for dodgeball and pizza. nicole: i am happy to be here in the studio. the food is good at the new york stock exchange. charles: it was a real crazy

week. you held up really well, nicole. you've taught us something about your people. we were amazed. i asked you the question about molotov cocktails. i thought after two weeks of not having access to your money and then being told you could get access to 300 euros at a time, in new york, it would have been a little bit more, you know -- >> we are a family society. they are big business people. everybody should go to cyprus. you water ski all day and dance all night. charles: i have an idea that there will be some specials to cyprus real soon. what about natural gas? i thought they had a real chance to get out of the euro.

i am thinking japan has no natural resources. i think they missed a great opportunity there. nicole: i will have to talk to some people about that. >> this is the wave of the future. cyprus has to basically change itself out of this. >> i don't know if anyone will make large deposits they are. there is no way, particularly, right now in italy, if i have over 100,000 euros in the bank, are you kidding me? thank you but dagen mcdowell. take it from here.