♪ ♪ imus in the morning ♪ >> good morning, everyone. wednesday, april 3rd, and oh, look at this. the stock market is taking another problem in its stride. the records keep falling and when that opening bell rings in a couple of minutes, there will be no big retreat. what's that problem? just 158,000 private sector jobs last month, not many. wall street is taking that in its stride, may go up a tick at the opening bell. we're going to factor the future moment. pushing people into homes when

they have weak credit. that's what got us in the housing mess in the first place. and then there's a french, they're going back to the tax rate as the prime minister tried to explain away his secret swiss bank account. we've got it all. "varney & company" is about to begin. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer,

one thing that hasn't changed: the offial retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

>> do we have another example of apple losing its cool in listen to this. according to the wall street journal, apple is going to release two new iphones this summer, a smaller cheaper version along with a refreshed iphone that sounds a whole lot like the current model. so, no new flashy product, no cool new phone, a rehash of what we've seen. tim cook has been struggling as apple's chief executive. and what would steve jobs say about cheaper and rehashed iphones? look how apple is expected to open today. up very, very slightly at 431,

but way below the $705 that apple hit six months ago. apple in the corporate headlines. dr. ben carson is taking criticism for comments he made on fox news hannity. first, listen to this. >> marriage is between a man and a woman, it's a well-established, fundamental pillar of society. and no group, be they gays, be they nambla, be they people who believe in bestiality, it doesn't matter what they are, they don't get to change the definition. stuart: he was attacked for that and after the vicious and personal attacks from the left, dr. carson defended himself. >> they want to shut us up completely and that's why the attacks against me have been so vicious, because i represent, you know, a threat to them. stuart: wow, dr. ben carson, he

will join us in a few minutes and asked him if he's maybe overexposed and too much media and what the future holds for him when he retires. and right now, i'm going to focus on money. the opening bell for the stock market minutes away. more all-time highs for the market. the rally is holding. is it time to buy gold? there's a good question for you. find out where the stock market opens next. can your hearing aid do this?

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>> all right. one minute until the opening bell and when that rings we're expecting the dow industrials to go up a fraction, but up nonetheless and that will be at opening trend. i want to move away from stocks and go to gold. i want to bring in scott shella shellady. gold, above 1600 an ounce and has its day come and gone? >> no, if you're worried about the stock market backing up a lot, anytime soon, gold is going to be a good play. and you've see that at 1500 level before we see a rally, i think with the unprecedented fed action, this has it built underneath it. until the stock market shows some signs of cracking we're not going to see the gold market left its head above water. now, the guys behind me will

tell you over the last 25 years we're having to relearn the business the fed's action changes the way the market plays. when the stock market cracks you want to be long gold. stuart: when you print trillions and trillions of dollars things really do change, you've got that right. scott, thank you very much indeed. the dow jones industrial average, the bell is ringing as we speak. we're expecting a flat to higher open this morning. one news item in the background, adp reports 158,000 new private sector jobs last month. that was kind of disappointing. but, maybe that means that ben prints even more money. if you're disappointed on the economy and employment, maybe he keeps on printing more and look at this, the dow industrials are now up 8 points. we're up again this wednesday morning. and we've got an ongoing theme on "varney & company," is apple losing its-- we've he got another example from initial reports. the new iphones that apple is going to roll out this summer doesn't sound that new. they do include a smaller and

cheaper version. and the stock will open around 430. but now, that's a far cry from the $700 per share that apple hit in september. this morning, 431. and let's go to nicole, caterpillar, a dow stock, downgraded by goldman sachs. where is the stock now? >> not good news for caterpillar, and we see the dow jones industrials higher. caterpillar down 1%. we're watching caterpillar, a global and economic indicator. and downgraded today to a neutral from a buy over at goldman sachs. some things that have been plaguing caterpillar recently, the slowdowns in sales. declining back logs, showing chinese economy and of course european debt crisis impacts them negatively as well. >> by the way that drop for caterpillar is costing the dow six points because it's a dow stock. all right, nicole, we're up 7, 9 points now in the early going. look at that, 14,671 as we speak. i'm going to call this a back to

the future moment. the obama administration pushing banks to give home loans to people with weak credit and saying, i'm quoting now, some people are being left out of the housing recovery. and they want the-- the administration wants taxpayer-backed programs to insure home loans against default. let's bring in tanya, and joins us, this is what got us into trouble in the first place, you're selling real estate. i take it do you approve of this weakening of the standards for giving a mortgage? >> absolutely not and once again, this is just rhetoric from the president. you have to understand, and this is really important, that the consumer financial protection bureau has drawn a line in the sand with debt to income ratio, if any lender had more than 5% delinquencies. and one of the bigger things

that made my blood boil, too many young people get left behind. young people 25, 26. they should be taught financial responsibility and have good credit and be able to get these loans. you and i talk all the time, anything he talks about is on the backs of the taxpayer and that's what this is and this is ridiculous, you're right. this exactly what caused the issue from the beginning. stuart: you should try to tell us how you feel about it? we heard it loud and clear, thank you so much tanya. from housing and stocks, by the way the dow is up 11 points very early going this wednesday morning. let's move away from that, i'm going to get into what is almost pure politics, joining us now is dr. ben carson. we appreciate you being with us again in morning, but you know, doctor, i see you everywhere. radio, tv, talk shows, news shows. you're being attacked harshly. do you think, perhaps, that you

are overexposed? >> i do think that and i've already instructed my people we're going to be doing relatively few interviews. stuart: thanks for including "varney & company" the last time for a few weeks, but appreciate you being here. >> i want to know what's your end game? where are you headed? you retire from surgery in june and are you going to go into politics, write books, become a tv pundit? where are you headed? >> there's a lot to do. i've already gotten international trips planned, multiple engagements around this country. trying to do things with education, particularly putting in reading rooms in title 1 schools, kids where they come from homes with no books and libraries, and those are the people who tend to drop out. yes, i will be working on new book, i may have to come back to

one things we've not discussed and that's the state of the economy and president obama's economic policy. do you have something to say about that this morning? >> well, obviously, it's being touted as being good and being and certainly the things that are happening, i'm happy to see. but i think what we need to do is ask ourselves, how does a household run? and when we're ready to buy something new and we don't have enough money for it, what we do we say, well, if we really need

this, then we're not going to do this, but we don't seem to be doing that, we seem to be adding things incremental and asking people for more tax money and i think that's probably not the best way to do things. and you know, that's why i'm so anxious to talk about what's logical and what makes sense. you were talking a little earlier about, you know, educating people and buying houses. you know, when i was growing up, everybody knew, you had home economics, you knew you didn't buy a house that cost more than two and a half times your annual income, that's common knowledge. and those things seem to be being lost. we have to get back to that, to a sense of personal responsibility. and i recognize that sometimes when people talk the way that i do it threatens a certain ideology and you put a target on yourself, and i understand that. but you know, this country is worth fighting for. stuart: and i'm going to pass along some advice from which has been offered to me to give to

you this morning. from a lot of my conservative friends. they want you to retreat from the public eye. you said you're going to do that. and if you want to talk more politics, bone up on the issues of the day and polish your responses. it's advice from other people, what do you say? >> i think that's good insights. because the one thing that i have learned is, don't wade into a complex issue when you don't have time to explain yourself because whatever you say will be taken, dissected and used in ways that are probably not good. stuart: you retire from surgery in june, i believe, is that correct? >> yes, 88 more days. stuart: and you're counting the days. you're not looking-- you're looking forward to retirement, or what? >> well, i think it's a good time to do it. i've done a lot of surgeries and

you know, there are so many other things that i think are important that need to be addressed. so i love medicine, i love the privilege of being able to take care of people and to see good results. but there are other things that are extremely important as well. stuart: dr. ben carson, always a pleasure to be on the program. don't be a complete stranger to us, please, come back soon. >> i will. stuart: doctor, thank you very much indeed. all right, the supreme court ruled the individual mandate in obamacare is a tax and therefore upheld it and now using the same logic, there's a proposal in congress that says if you own a gun you have to have insurance or face a fine, could that be a law? judge napolitano will weigh in in the next hour, good subject. the dow jones industrial average is now up 5 points and i've got 7 early movers for you.

start with here is a question, do you make phone calls within magic, magic jack? the company reported strong sales and this was a-- one of those making money stocks with charles, he picked it on monday, it's up 14% today. got to listen to charles payne, i'm telling you. nova fax respiratory drug trial meets its goal. it's up 6%, we talked a lot about zynga, offering poker and casino style games in britain, that's on-line, that's up 10% this morning, watch out for zynga. verizon says it does not currently have any intention to merge with or buy its partner vodafone. vodafone shares down. another indicator, some economic indicator, goldman sachs cut its rating on caterpillar to neutral from buy, and cat is down, but not by much. 50 cents. tesla motors will partner with wells fargo on a financing product for its electric sports cars and put 10% down apparently

almost like a mortgage for tesla and the stock is down this morning. profit dropped 57% at conagra foods makes chef boyardee, and hunts ketchup. we're the 14,661, but no big retreat thus far after hitting a series of records. time is money, 30 seconds, sorry, 70 seconds worth, we'll be covering for you today. a wind energy chief who says no more federal subsidies for green energy. why is he saying that? you'll find out the top of the show. and we'll talk with a man who cleans up your internet reputation, do you want flattering links? he can arrange it. how much it costs. the outrageous stories of athletes who start charities, raise money and it doesn't go where intended. as for the price of oil this morning, we are back to $96 per

barrel and been there for a few days. have you ever heard of bid coin, digital currency that's gaining popularity and existses only on-line and to tell you the truth i don't get it. why not use regular dollars, the man who is behind bid coin. he's here and join us next. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webins. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottre... ranked "highest in customer loyalty for brokerage and investment companies."

>> how many of you heard of bid coin? the many, i suggest. i'll try to explain it. it's digital currency. here is what happens. you put some of your money, real money on-line and it turns into virtual money which you can use to use on-line. i'm not sure i'm entirely into this, but i know that bitcoin is popular, growing in popularity. and the chief editor of dollar

vigilante and co-founder of bitcoin. let's get to basics here, i've got real green dollars money, and i put it into bitcoin, i have a bitcoin on-line virtual account and you can use that bitcoin money to buy whatever i like on-line. yeah? you're nodding. the big advantage i see is it's anonymous. nobody knows who i am. and therefore, i can buy all kinds of shady things, right? >> you can call them shady or just real things. stuart: drugs? >> yeah, drugs. stuart: guns. >> whatever you like, free market. stuart: anything that's available on-line. >> anywhere. stuart: anything. >> there's many stores accepting bitcoin now, you can buy almost anything with bitcoin. stuart: that's the legitimate side and i'm talking about the shady. you don't mind-- that's the popularity of

bitcoin. >> the popularity, it's decentralized and not controlled by anyone. to me, america really started to die when the federal reserve was founded and really started to die when the gold backing on the dollar. and this with ben bernanke printing and it's destroying the economy. this bitcoin is a voluntary decentralized, anonymous, it can't be shut down, by anyone, people are getting tired of the central banks. stuart: charles payne is with us and i think you're very much in tune with what jeff is saying. charles: i'm watching this, and way beyond buying dirty magazines on the internet and people are saying, this is the new gold, forget about buying gold. if you're afraid of countries printing unlimited amounts of money and bailing out industries, destroying capitalism, this is your only salvation and in fact, to that point now, isn't it. >> i believe that in bitcoin, i

personally hold most of my assets in gold and precious metals. and i don't-- >> you're a hard money guy. you the dollar vigilante. >> talks about the coming collapse of the monetary system i see is coming because of the central banks. stuart: i'm a skeptical kind of guy and i he see you taking my real dollars, establishment dollars, if you like and you take them and then you give me virtual money in return. not a bad deal. >> well, i don't give them to you. i'm actually just transferring it it it from someone else. stuart: but you take real money, hard dollars, green backs, you take them out of the system, don't you? >> no, they get transferred to other people, if someone wants to exchange a bitcoin for a dollar. stuart: where do you get your profit. >> we launched an atm. take money out of your bitcoin account into your dollar, i call

them fake currency. stuart: way to cash out. when i put hard dollars, real dollars into the atm you take your piece and how you make your profit. >> an administration like any other atm. charles: here is the worrisome part. by the way the bitcoin people know the value of them have skyrocketed in the last few weeks, they're more valuable than almost any currency out there, a bitcoin and apparently the notion is the way it's designed you can only have 21 million bitcoins out there. at some point, one could be the equivalent of 1 million fiat dollars you're holding in your pocket right now. that's the hype on this thing right now. people are going for it. it's a little worrisome to me in certain areas. no one knows who the heck invented this thing and you know, i'd like to see it through a real crisis and see how it holds up. stuart: you'll be interested in this, jeff. i'm about to give the gold price

for the day, but jeff from bitcoin and charles payne acting as his sidekick. all good stuff. >> my pleasure. stuart: what is the price of gold this wednesday morning, 1572. down a bit more. 1572. and the 75% tax in france, it's back and now, it's going to hit the country's beloved soccer teams. and it could cost france its best players. not only that, the country's ex-finance minister is in deep trouble for hiding his money in a secret swiss bank account. elizabeth macdonald is on her way in and we've got this on the menu next. ♪

>> france's 75% top tax rate is back and this time, they're going after the country's soccer teams. they are now included in the new tax rate and this new law stipulates that companies not individuals will foot the bill and under the law soccer teams are a business company and therefore the subject of the tax and this could cost the french the top players, could that change socialist minds? he asks. and now, i'm intrigued though

because without making a joke of this, i mean, it now applies to companies, not individuals. and they couldn't make it stick to individuals, mr. depardu left. >> yeah, they're soaking the ri rich and now the soccer players. >> and you were way off sides going after individuals and they rejected his move to soak the rich. and rich individuals, so they, what the president did bent it like beckham and said let's go after companies and soccer players are square off sides with this, and they could be leaving the country and they could wreck job growth in that industry. >> he's going to apply a 75% rate on all profits for any company that makes more than a million dollars, a million euros profit? >> yeah, they're already paying nearly 50% of 500 k euros, already. that's already, that they're paying, so, the forecast players are saying, you know what? we may just leave and the

jobless rate, charles, you say is 10% in france and what they're going to raise is a pittance of the 125 million deficit. less than 1/2 a percent of that. i've got to tell you i would not be shocked if somewhere along the line the guy wakes up his popularity is plummeting, industry is crying and soccer players leave because they make more than a million euro a year. he's in trouble, and the country is in trouble. >> soccer is their achilles heel. how is this for seeing the light. a green energy chief says no more federal subsidies, why he's against it, new at 10, next.

>> wednesday, april 3rd, a wind power guy who says get rid of the green energy subsidies. he doesn't want them. we have a nevada business guy moving business to california from no tax to high tax going against the tide. why is he doing that? of course, the target, a terrific year, shrugged off every problem, it is down just a little so far today. ♪

we've got all the stories coming up for you, but, first, where have we heard this before? the obama administration is pushing banks to give home loans to people with weak credit. they are asking for taxpayer money to ensure some of these home loans against default. liz, isn't this exactly what got us into trouble five years ago? >> yes, sir. the white house is telling the department of justice to say that the doj should say to the banks you'll have no legal backlash if you do relax your standards and give loans to riskier borrows who later default. it's the stuff we saw in the sub prime crisis, the no income, no, job, no problem, get a mortgage attitude. i don't think it works a second time. we've already been there. >> i have to interrupt. a manufacturing reading coming in low, 5 # 4 is the reading. the dow is not -- it's not taking it on the chin, but it is down a little more after that reading, and any comment, charles, ism reading 54.

>> a couple with the adp robert, more anxiety with the friday's job number. >> yeah, 14631. >> reinvest. act is the genesis of the housing crisis, and whatever it is you want to blame, whoever you blame, bottom line is banks were forced to make these loans a long time ago, and the federal government says you can't expand business state to state if you don't make risky loans. they made the loans, an then they held too many on books, and the federal government says fannie mae buys them. they pack camming them up, the backing of fannie mae, the genesis of the crisis. the obama administration is telling banks you will not be prosecuted in the future or we won't take any adverse actions against you, if they default. >> it is taxpayer money to be used. >> taxpayer money is thrown

taking all the risk here. >> we are at risk. >> banks have immunity other than the tongue lashing from the future president or political office, but they will be immune, and people watching the show probably have trouble paying their own mortgage. >> we talk about apple, whether or not it is losing its cool. now, according to the "wall street journal," they will release two new iphones this summer, phones that don't sound that cool. a smaller and cheaper version along with a refreshed iphone, which, actually, sounds a lot like the current model. nicole, who will know, where's the stock? >> the stock is up 1%. you make me laugh with the refreshed model. they have a tea at starbucks called refresh. i want to see what the refreshed model is. that being said, two things to add to the apple story. how about the watch? are they working on that? is that coming? and how about the apple tv? well, topeka has an 888 price

target, which they reiterated today. they reiterated their buy ratings. they believe in apple tv, and they say it's coming out in 2013, so for the people hot on it, they still have a chance. >> their price tact is 888 on apple, which is almost exactly double where app the is right now; is that correct? >> catchy, yep. >> time will tell as they say. on to charles for a second because you make a big deal frequently about you like to buy stocks of companies which you know and which some of the people around you are buying their products. >> right. >> all right. you're big with your son, is your apple buying apple? >> he has an apple phone, i talked about samsung, and everyone in school has not shifted yet, but he's not been rubbed raw about going into the apple store. younger, we couldn't go past toys "r" us, and then as we got older, couldn't go past game stop, and the apple store. we breeze right buy it now, and

he's cool about it. >> how old is he? >> 16. three times, like, back him up. >> what's he do with the hair? >> combing the hair, golly, it's girls. >> showers frequently too; right? >> at least once a week. >> like his father. >> i'm twice a week. let's move on. >> i have two tech winners today. first is zinga, remember them? they are cashing in on online gambling. nicole? >> online game ling, whoo-hoo, roll the dice, analysts on board. zinga, needham launching in a few weeks, a buy rating, a $4 price target so looking good for zinga. >> day traders love it, i'm sure. facebook, they have a big announcement tomorrow. movement in advance of that? >> okay, jpnorgan says buy it this morning. recent weakness in facebook is a

buying opportunity. it was a $38ipo last may, now it's $25.96. buy on the weakness we're seeing. there's the talk about the new phone with htc, will they sell it? that's according to advertising age. that's been in talks as well. we'll follow that. >> all right. big board, now down 42 points following a somewhat disappointing report from adp, 158,000 new private sector jobs last month, and, again, a slightly disappointing reading on manufacturing this morning. hold on a second, charles. i want to ask you this. if you get disappointing news on the economy, that doesn't -- doesn't that make it more likely that ben prints more which should be good for the market? >> yeah, even bulls at this point hope the transition, the rally baton, if you will, transitions from fed printing to an economy that's improving. they want it both ways, but a jobs number at 200,000, have your cake and eat it to. it's just enough, but not strong

enough to take away the punch bowl. at 150 -- numbers like this, i think the market is hit friday. >> will you be with us, friday? >> absolutely. >> do you want to predict now what the jobs number will be? >> less than 200,000. >> less than 200 -- [laughter] all right. congress is now considering a find for gun owners who do not buy liability insurance. does the supreme court's obamacare ruling make this a possibility? judge napiltano joins us at 10:25 on the subject. an airline charging by the pound, could it take you have elsewhere? we are going to be talking about that. treaty subject, but we'll delve into it. hedge fund billionaire, tom sire, pledging to spend the fortune as necessary to make climate change the defining issue of our generation. here's his direct quote, the goal here is not to win. the goal here is to destroy these people.

we want a smashing victory. wait a sec. who is he trying to destroy? >> trying to destroy opponents to his way of thinking op climate change. you know, this is someone to listen to. he's a fund jpnorgan raiser for the white house, had a hankering to replace steven chu as energy secretary. you know, he also is saying no to the keystone pipeline. the thing is here, he's in the -- he's new yorker, went to california, and he's now getting himself involved in the massachusetts race already, and ed marky said, stay out of the massachusetts race. i don't want you there. >> really? >> he's saying, we don't like it. >> wow. >> it's low hanging fruit; right? ed has been in office for three zillion years, a shoe-in. you help get ed re-elected. come on, give me a break. maybe you establish something that way, he's nuts, but he's got a lot of money. >> i love the way you talk. he's a nut, but got a lot of money.

>> he's hard, you know, got a lot of money, doesn't want to buy a newspaper with it, so he'll try to infriewns races. >> you're on a role this morning, aren't you? i shouldn't have ever mentioned your son. bring in the next gels. he is a green energy chief executive officer who says no more government subsidies for his industry, the wind industry, "they produce a product not as efficient or cheap as it might be if we focus less on working the political system on more on research and development." joining us now is patrick, a ceo of the tang energy group. patrick, what a pleasure to have you with us this morning. thanks for joining us. >> thank you for having me, good morning. >> what exactly, what research and development do you want to see? what kind of research? what would help your industry? >> if executives spent time with engineers rather than the accountants and lawyers, actually, develop new products rather than saying -- and you

can understand the reason. there's so much money in subsidyings -- subsidies thats executives spend most of the time thinking about the subsidies and their access to them rather than what engineers may be suggesting as far as innovation. >> if you took away the subsidies, from your company, for example, you just took them away, you don't get money from anybody outside, certainly from the government, could you swim? >> oh, yes, absolutely. when wind is a great idea in windy areas where people need electricity. the result of the policies have been that wind farms have gone to less windy areas and as you go to less windy areas, you have to charge more for every kilowatt hour or unit of electricity that people buy to be able to make a return, to make a competitive return. >> what does the tang energy group make? >> mostly we make blades for wind turbines, but we also

develop wind farms. we make the blades for wind turbines in china and develop wind farms in the u.s.. >> seems to me the two problems with wind energy -- wind's a great idea, you two problems, number one, you can't store it. when the wind really blows and generating a lot of juice, you can't store it. number two, you can't transmit it over the power lines without losing a lot of juice you created in the first place. am i right? >> you're absolutely right. electricity is very difficult to store. we've. working on batteries, americans, people all over the world have been working on electricity storage in batteries for years and years and years. storage happens very well, and in a natural gas pipeline, happens first timely in your car gas tank. it happens very first first -- efficiently with a hydroelectric dam. there's plenty of ways to store

energy first timely. electricity's just not one of them. >> are we close? if we've done all this research over all these years, are we even close? i can't answer that. there's people invested in battery technologies much more than i have, and they make tremendous advances. our better advances have been in reducing the amount of electricity that your iphone needs or that any electrical component needs. there's folks to answer the question betten than i. >> i see your argument, though. if you focused on research and development and had a storage mechanism for electricity, your wind turbine blade business would take off because it's economical to put turbines in areas where there's not that much wind, but when the wind blows, you can store what you produce. i understand your point. >> well, thank you. >> i'm sorry, somebody was in the ear. i missed the comment. repeat that please. >> i said, thank you. >> oh, yeah, you're welcome.

>> storage is -- will always be difficult and wind makes sense in windy areas, a lot of sense in areas where people have a hard time connecting to the grid. if you can't get to other sources of electricity, wind is a really good solution, but, even coal fired plants, gas fired plants produce electricity much more reliably. we have to decide as americans, as people around the world, if we want to sustain an industry, or if we want to sustain communities. you know, sustaining communities is actually much better for our business in the long run. we tend to forget that our rate payers are also taxpayers, and when you wind up sending money through subsidies, you turn the rate payers and taxpayers into double payers for the same product. >> patrick, you a breath of fresh air, forgive the pun, but we appreciate you being with us. come again. >> thank you for having me, thank you. >> three months into president obama's second term, things are not going well. why?

well, it's all about the money. my take on that is next. ♪

♪ >> chief executive officer of jcpenney is not getting a bonus or stock award after a dismal

first year on the job. his new look stores is not working, so he's going back to raising prices to discount. it's back at 14. google announces to release the new version of the nexus7 tablet this summer. sources say the new device has hardware improvements, screen resolution, and thinner design. google's back to 809, down three bucks this morning. jay-z's sports management company signed the first, yankee's second base mapp, robertson cano, expect the a big payday to go to a free agency system next season. money problems plaguing president obama's second term. yes, they are. his second term agenda, i'm going to say is stalled. 34eu take -- my take on that is next. we went out and asked people a simple question:

how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer,

one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ >> break k news, fox news confirms that rutgers university has fired its head basketball coach, mike rice. there was an espn report showing video of him physically abusing his players. apparently, he was veerbly abusing them as well. there's a videotape. you just saw him pushing -- there you go -- pushing one of the players, doesn't go down well. mr. rice has just been fired. time to make money. we always go to charles for ttat, and he's got, what is it? ashland? >> ashland, this is different. it's conservative, a value play, a chemistry -- >> a socialist?

>> they make chemicals, that's good old-fashioned america, it's one of these stocks that if you look near term, it's pulled back recently, but over the last couple years, pure jug not. to be frank, stu, it's a global play. in 2004, they changed the business model where america was 88% of sales, and now it's 53, but they grow all over the world, and the volume yesterday was intriguing. that made me pull the trigger. the chart is ugly. it's not pretty, but this is a $9 is -- $9100 stock. the peaked my interest, buy it as it pulls back opposed to waiting for it to turn around. >> you love countries focused in developing areas. >> with long ten kls. >> we'll follow it. >> absolutely. >> here's a scenario for you. go to google, type in your name, press search, and instantly,

results pop up related to you. got it. the top lists don't payment you in a positive light. at 10:45, a company to change all of that and clean up your online reputation. here's the obvious question in which we'll ask how much does that cost? we will ask. all right. three months into president obama's second term, things are not going well. money is at the heart of the troubles. here's my take. first, obamacare, three set backs. the senate voted overwhelmingly to repeal the tax on medical devices, rules for small business coverage delayed for a year, and there's a revolt in congress over the very popular medicare advantage program. the center piece of the first term appears to be unraveling from within. then the president's agenda for the second term, there's no money to finance the universal preschool initiative. it's not going to happen.

his highly touted infrastructure program is a measly $21 million, and we don't have the money for that. the engine of growth stalled like the economy. dare i bring up the summit of spending cuts known as the sequester? sure i can. the president hates them, but the cuts are in place, and they've not produced the kind of mayhem that the president wanted. yes, he did want to inflight pain because he thought the country would turn on the republicans and blame them. the emperor has no clothes. the sky has not fallen. the cuts will stay in place even know he hates them. now to foreign policy, how about that? the shameful $250 million handed to egypt's muslim brotherhood beating up the christian minority, the tax hikes that would revitalize the economy and pay for social investments. thank helps they are not on the front burner. i could go on because the list of abandoned or failing policies is long.

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>> you know, it's not much of a market decline after all the records.

disappointing number on job creation last month, and a disappointing number on manufacturing, not enough to set the market back significantly, down just 24; however, there is a huge set back for netflix this morning. i think it's down 11 bucks at the moment, and as usual, nicole, we want to know why. >> yeah, it's under pressure here today as you can see. a market that's pretty much flat, and, yet, net jpnorgan d netflix is down 6%. an article on msn money that talked about it and the headline "why microsoft shouldn't consider buying netflix," and talks that it's off the table and not a consideration pushes it back. the other thing surrounding it is the fcc and companies may use social media for announcements if investors are actually alerted. that's interesting development from the fcc and facebook and twitter and the like. >> okay. so maybe microsoft will not buy

netflix as rumored so they are down, and potentially microsoft is up this morning. nicole, thank you very much indeed. congresswoman ma maloney pushesa bill to force gun ordinary persons to pie liability insurance or pay a $10,000 fine. the judge is here. this reminds me of obamacare. >> it does. >> you don't have insurance policy, you get a fine. >> remember the hook on which the court hung the hat to justify it under the constitution. it's not a fine or a punishment, but a tax. the taxing power of the congress in the court's view under the constitution is without limitation. the congress can tax anything it wants. would this be a tax? i don't know how you can characterize this as a tax. this is clearly a punishment. the problem with the government -- for the government when it punishes you is it has to afford you due process meaning a trial, which means you have the right to contest this. the government couldn't possibly

tie up the court system and its prosecutors trying people, putting them on trial for failure to buy the insurance. it's impractical to do it. i'm not talking about the second amendment, just taxing power and mechanics of collecting this. >> supposing they put it on the the irs1040, do you own a gun, and they would know that because of your registration -- >> assuming there's a national federal registration. >> if that happens. they say, all right, what's the name of the insurance company and the number of the policy, and if you don't have it, they could fine you. >> could be, but they have to characterize as a tax and do it and do it through the irs. flip side of this is this is a burden op gun ownership which might not be tolerated under the -- not going to happen. >> it's not going to happen. >> it's also the feds weighing in an area traditionally regulated by the states. i don't like this, but it would

be easier for the state of new jersey, our home state, or state of connecticut to do this under the constitution than it would be for the federal government. >> oh, i see. that is more of a possibility than a federal development? >> yes, yes. >> there's a lot of setbacks at the state level. congresswoman maloney says the government tries to force product liability insurance policy on manufacturers of things like toys or power tools. could there be a push to push liability insurance on -- excuse me -- gun manufacturers? >> yes, but when she says that, what she means is that's coming from the states, and there's really 50 product little laws in the united states of america. it's different in each state. >> again, in our home state, the most antimanufacturer, proconsumer, however how look at it, product little regulations in the country, which forces the manufacturer and the districter of --

distributer of the product that could cause harm to the end user. >> thed why of taxing bullets, fining you for not buying insurance, it's an attack on the second amendment. >> justice o'connor, in an unrelated case has a brilliant essay. in the middle of a judicial opinion on undue burden. at some point, the government's interference with perm liberty is such an undue burden that the constitution should stop it. no line when it happens and judges feel it. honestly, the more burden they put, the more difficult they make it to own a gun, the more violative of the second amendment the behavior becomes. >> wrapping it up, i say the big push towards some kind of gun legislation, gun control, largely failed because the bill, as -- when it comes out of the congress doesn't look like it's going to have that many teeth, no universal background checks, no limits on the size of

magazines. >> i think you're correct, and a political footnote, the president is fighting a losing fight, still fighting, and as we speak, he's in the midwest campaigning for something he knows or ought to know the congress will never give him. >> the votes are not there, are they? >> correct. >> flat out not there. >> correct, democrats are terrified to vote for it because they confront their voters a year and a half from now. >> judge, always good, thank you very much indeed, sir. we hit the theme for months now, people moving from high tax and high regulation states to low tax, low regulation states, but after the break, we'll introduce you to a man who is doing thee exact opposite, picking up and moving his business to california. why would you do that? we'll ask him next. ♪

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[ male announcer ] this is karen and jeremiah. they don't know it yet, but they're gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. >> texas rangers pitcher came as close to pitch a per felgt game as you can without actually pitching one giving up a hit, through the legs no less, with two outs, bottom of the 9th

inning. rangers beat the astros 7-zip, but no perfect game. you can understand him holding his head. owe talked about businesses moving from high tax california to lower tax states like texas or florida. our next guest is doing the exact opposite. he's moving his company to, repeat, to california. it is as why anybody would do such a thing is the ceo of row motive. welcome to the program. are you crazy? >> ha, hi, stu, i don't think so. >> why are you going -- your company at the moment is in nevada, i believe, okay, and you're a startup company, work with robotics. got it. why are you going to california? >> well, so at ro motive, we build smart phone robots, they are robots, so here he is. this guy's name is romo, and they use your iphone or ipod as your brain, and as we grow as

a company over the next three to five years, our success is going to depend on ability to hire the top robotics in the world, and it just so happens ha a large percentage of the people live in the bay area. >> okay. that's understandable, but you have much higher costs in the bay area, and if you're successful, you pay whopping great big taxes. neither of those bother you, i take it? >> so it's a really interesting question. >> yeah. >> in a lot of ways, i think california is one of the friendliest and unfriendliest business environments in the world. you have a combined federal and state capital gains tax of 33%. you have a federal income and state payroll income tax of, in total, between 30% and 40% meaning in general people living in california pay some of the highest taxes in any country anywhere in the world. >> yeah. >> but sensibly, a lot of the

revenue is used on things like parks and education and health care, and i think that those services tend to draw top engineers from all over the world to the bay area, and so ultimately, it is a tradeoff between short term economics and, you know, long term ability to hire the best people in the world. >> i see the point, a good economic case. got that. why not go to austin, texas, a good installed base of high-tech people, and there's no tax there whatsoever of the there's no state income tax, and there's a freer business climate. did you ever think of that? >> yeah, we certainly did. we looked at boston, new york, austin, and san fransisco. the -- i -- the thing that drew us specifically to san fransisco was that, you know, because of what we do, we are specifically interested in people with experience in robotics and people with experience in mobile, and it -- the bay area,

it's just -- it's not a fair comparison. the bay area has so much more scale in terms of those who are in the industry. >> you held up -- let me offer you a commercial break here. what does the robot do? walk around or what does it do? >> sure. so -- so you can plug any iphone or ipod into this robotic base, which is what we manufacture. the robot can learn new things over time because he's connected to wif iring's, uses an app that's free to download. he exhibits a lot of intelligent behaviors, and we allow anybody to create new behaviors for the robots. >> what do you mean "behaviors," what's that? >> you can share them with your friends and control him from any ios device or browser in the world. >> does it move or just take stuff in and show it to you? >> yes, yes, it's -- he -- so i'm not going to move him now. i don't want to scare you, but

you can control him, and he moves around, and he, you know, he's a personality. it's kind of like having a small, cute, iphone creature in the home. >> just can't wait. seriously, it's very interesting. we got it. i hope you come back if you're a big blowout success in the san fransisco area, come back, see us, and you tell us how you feel about spending a lot more than 50% of your income in taxes, okay? just come on back when you are skell, big time. thanks. >> i'd love to, thanks. >> you got it. all right. type your name into google, then press "search," and results pop up that paints you, shall we say, in a negative light. a man who runs a company to fix it. it. here's the question. how much does that cost? at a dry cleaner, we replaced people with a machine. what? customers didn't like it.

so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.

>> zinga is doing well bog of online game ling in britain launching two websites there to allow users to use real money to gamble, not phantoms anymore with zinga, oh, no, zinga plans to bring online gambling to the u.s. as well, up 12 pakistan, a nice -- 12%, nice game. finding nemo's sequel is coming out called "finding dora" coming out september 20th. many of the stars return like

eelen degeneres, and amazon gives mp3 songs from vinyl records you purchase from the site, and they add songs to a site to allow you to stream or down load them on your computer. amazon, though, down, 250, lower as 260. online reputations --

>> listen to this, mcdonald's in massachusetts looking for a cashier, but getting the job is competitive. the position requires that the

candidate have a bachelor's degree and won our two years experience. come on in, nicole. i can't believe this. are we to believe that -- i go to a mcdon's, regular mcdons, buy the burger, give the person the cash, and she or her is a cashier and have a degree to do that; is that right? >> i can't believe it. i don't know where to start. everybody behind every cash register in mcdonald's has a bachelor's degree, i don't think so. wow, look, a job opening in massachusetts if you want one. you need a bachelor's degree. some experience as well. when my children asked me why they have to go college, i'll say that if they would like to be a cashier at mcdonald's, this is one of the reasons. >> that was a tongge in cheek response, and you know it. >> i don't know what you're talking about. [laughter] >> all right. well, the story stands. we don't know anything more about it. you are all shaking heads. not surprised. >> right. >> pictures on it, don't they?

a big mac, and, i mean, you don't have to count money or change anymore. amazing. >> we told the story straight, did we not >> did our duty. all right. did you google your name and see things you wish would disappear? the next guest makes that happen. mike is the president and chief operating officer of reputation changer, and he joins us now. mike k welcome to the program. >> thank you. >> i have to get it straight, i have this problem. i google stuart varney press return or whatever, and up pops a series of things, some negative. you will take me as a client and get rid of the negative; is that correct? >> more broadly is help people take control of the search resultings. you should control all things on the first couple pages, tell your story the way you want them to be told. that's what we help people do. >> how much? >> ranges a lot. we deal with consumers in the low end who have minor problems and not prominent, a few thousands of dollars. >> thousands of dollars?

>> thousands of dollars. >> thousands? >> they can build assets on their open, sign up for monitoring at reputationchanger.com, and do it themselves for free, but in the far end of that, some of our clients are foreign governments, universities, fortune 100 businesses, and those organizations spend tens or hundreds of thousands a month. >> what about little old me? >> our celebrity clients and others of prominence in public and private life, they have an online per sewn that. what we do that is make stronger the ones they want to emphasize. in your case, we take our own network of really authoritative writers who write for fox or huffington post and hire them as free lapsers, make additional content. one mistake -- >> you would construct a pesona for me? >> you already have one, we build it out. there's gaps in your story allowing somebody to buy

stuartvarney.com, and they are squatting on that waiting for you to buy it. >> back to the original question. >> sure. >> how much would you charge me, stuart varn ergs y, to fix my profile? >> we can control the first couple pages, 30,000 to 50,000. >> that's a lot of money. >> i understand, i want to understand this. stuart would pay thirty grand for life or every year? thirty grand every year? >> fixed, and -- >> hang on, 30,000 permanent contact for life. i don't get it. say there's a website that has false information, misquoting he saying this, that, or the other thing. do you send a virus in and accident happen the website, or what exactly is the product? >> unfortunately r there's little you do about dmegtive or out of date information on the sites. ask them to take it down, mostly they won't, there's few laws about what to do with inaccurate information. avoid that.

take control of the reputation, build the assets that say things about youssef mejri want. -- you that you want. >> control the first pages. >> 96% of searches don't go beyond the first few pages. >> thirty grand for life? >> not for life, people will continue to post things about you. you have to keep it fresh. >> wait, wait -- >> i still -- >> i give you 30,000 bucks, how long does it last? >> several months. >> and then? >> then you have control. >> then how much more? a maintenance or we do it for you, and that's 7,000 more. >> wait, wait, several thousand more? >> a month. >> a month? >> yeah. >> are you saying you would have positive stories in the search for stuart shoving negative stories down in the search? you would click on stuart's, page after page, positive stories, is that the service? >> in parts, and there's additional assets, yes, tell your side of the story, and pieces of the search results,

you don't control which means somebody else does. >> interesting. >> i could go on forever. mike, fascinating stuff. come again. >> thank you. >> the woman who earned superinten dent of year hon res no 2009 indicted for an alleged cheating scandal and could face years in prison if convictedded. you'll never believe what she got paid, what her bonus was, what she was looking for, and why she cheated allegedly. wait for that.

>> the fires of outrage, beverly hall, former superintendent of the year indicted for alleged by participating in a massive cheating scandal. over the course of ten years, she made almost $600,000 in bonuses, that doesn't include her normal salary. liz? >> this is likely the nation's largest cheating scandal. she oversaw the cheating. likely, it dates back to 2001. bonuses stretch from 1999 to date. >> what are we doing giving $600,000 worth of bonuses? >> right. she was getting bonuses to rule with iron fist to basically deploy allegedly cheating in the school system, upping student grades to get more federal money and bonus money for herself and

fellow administrators and teachers. >> next, investigation found 115 charities started by athletes were not passing out money they said they were going to pass out. for example, eights years of tax records shows odom has not donated a single cent to cancer despite raising $2.2 million, charles? >> over a million, 1.3 million to two youth basketball programs to travel in the country, have the best uniforms, travel in style, and play in tournaments. set up a youth basketball thing and raise it, but this is despicable stuff. it occurs so much, an outrage, it really is an outrage. >> last one. samoa bases airline fares on the weight and weight of your bags, your weight plus baggage items is what you pay for.

semple as that. liz? >> would it work here? >> no, no, hold on a second. >> go ahead. >> what you got to do is declare weight in advance, and when you go to get your ticket, if you were lying, they weigh you. there's rooming -- room for extreme embarrassment at the weigh-in scales. >> samoa is known to be, you know, as you put out a warrior nation, revel in weight, and we talk about 12 # seaters, i don't know if the tsa could think about trying to pull this off here with the criticisms of them behaving like bouncers at the airport. >> we're out of time, unfortunately. the highlight reel, yes, it is next.

stuart: this is that doctor carlson highlight reel. roll it, please do not represent, you know, a threat to

them. that is not all my bucket list. it threatens a certain ideology. you put a target on yourself. stuart: you think, perhaps, that you are over coast? >> it is worth fighting for. stuart: he thinks it is over exposed. he told his people he won't appear so many times in the media. i thought he took our advice. charles: i am glad he did. i hope he does. i hope they do not beat him up so bad that he does not decide to do things that his heart tells him to do. stuart: thank you very