♪ ♪ imus the in the morning ♪ >> good morning, everyone. he couldn't turn it around. ron johnson tried to make j.c. penney into jack penny, he failed, the stock is down. and champagne in the streets, celebrating the passing of margaret thatcher, shameful. >> and how about this, the white house says we're going to cap your retirement savings. you work, you save, but we know how much you need. and here comes grover norquist,

why is louisiana dropping its tax cut plan? "varney & company" about to begin.

♪ >> they're playing the music, so dare we put j.c. penney on death watch after the company gives ron johnson the boot? in his year and a half on the job, the man who invented apples operation, tried to recreate the brand. he failed. they're going to bring in a former chief and keep things going. look at the stock price, it's going down big and we played the organ music, i'm not sure we should have, but we did. and louisiana's governor bobby jindal backing down after intense criticism. and grover norquist is with us, i say it's a big hit to your cause. what do you say?

>> actually what governor jindal's done has written a plan to abolish the income tax plan and, said to the legislature, here is my plan, what is your plan, let's work. he said he's not wedded to his particular plan, but committed to abolishing the state income tax as are the governors of kansas, and the legislative leadership in north carolina. this movement is moving forward. i think you'll see the income tax gone this year in louisiana. stuart: okay, well, we'll talk more about that in a second. stay right there, grover norquist. now, one of the biggest names on wall street, or they i should say, have a message for ben bernanke, stop printing money. 1 i doubt that ben is listening, but we'll have penny's opening stock price when that opening bell rings. look at this. they are celebrating the death of margaret thatcher in the street. i say that's absolutely

disgusting. we'll have a former thatcher speech writer on all of these haters celebrating her death. here we go. my mantra?

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♪ raining pennies from heaven ♪ >> he's pennies, we'll watch. and larry, we've got a big name, flatrock, that's now urging ben to stop printing money. let me ask you this, supposing he did hint that he's going to stop printing money. how far down would this market go? >> i think it would go down quite a bit. might see a correction between 5 and 10% because that's what's holding this market up. >> you don't think he's going to listen even to black rock. he's the not going to quit printing. >> black rock is not the first or last and he's not going to stop. i said before it's my opinion the government is waiting for some bubble to take the market up. they're not going to stop. stuart: that's interesting, you create a bubble and pop it when you've established the bubble,

good planning. i'm afraid we're out of time. thank you very much. our government, right? and thank you for joining us larry levin. the dow opens in literally seconds. and we are an expecting a flat market. oil, gold and stocks pretty flat and might see a teenie tiny upside bias when the market gets going, but i think it looks dead flat. please remember, we're opening up around 14,613. in other words, we're what, 300 points and big change away from 15,000. and let's get straight to nicole. j.c. penney, where did it open? tell me. >> so we're seeing j.c. penney to the down side this morning and of course, ron johnson is the one we've been focusing on for the last year or so, right? and the stock has been down over 50% during that time and right now we're seeing the stock around 6 1/2% lower. he's been ousted and shareholders are fed up. and the stock has been tanking and his techniques he came in

and suppose today provide value all the time. low prices all the time, didn't work. and finally, enough is enough and everybody basically said, get out. we're done. stuart: thanks so much, nicole, quickly to herbal life. the battle between billionaires to take control. what is-- it's halted, why is that? >> right, we saw halted for news pending so we'll continue to follow that one, but obviously a busy one we've been following. whether it's a ponzi scheme or on it, not on it. we'll follow herbalife, a key name we've been following. stuart: thanks, nicole. dow is up 14 in the early going. and less money coming in at alcoa, and not a bad start to the earnings season. stock's unchanged. bar clays, that's the latest to lower the forecast for caterpillar and goldman did it, and vma, but caterpillar is up

ten cents. and going after retirement accounts, he wants to cap them. this sends a rotten message to young savers, i know you'll agree with me. >> well, i do. this administration has not focused on reining in spendingment all they do is come up with new ideas to raise taxes so they don't have to reform government. that's why what we focus on is saying no, no, no, to any tax increase and the ideas get more goofy and more destructive and the idea of taxing people-- capping people's retirement because obama thinks you've got too much money that you've saved, i thought that we would have wanted people to save more money for their own retirement. stuart: hold on a second. i've got richard, sir richard branson sitting here right next to me. a surprise guest, i don't want to cut you short, grover, but

ask you one last question. >> sure. stuart: do you think that the tax increases in president obama's proposal will see their light of day? do you think? >> they will not be passed. the republican house will not allow any tax increase to pass and we will get spending restraint after we get over the last two years. i apologize for cutting grover norquist short because i've got sir richard branson walking in, surprise, surprise, the man walked in on me. grover, thank you very much indeed. and sir richard welcome to the program. i'd like to ask you a comment on margaret thatcher and i'm going to preface that. you saw people drinking in the streets and celebrating her death. i say that's flat-out disgusting and disgraceful. do you have a comment? >> i would agree with you. i think if anyone dies, whether you disagree with their views or agree with their views, you don't behave in that kind of manner. stuart: you are the very successful man who runs virgin, the airline. a highly successful airline and

a very competitive business. i put it to you, you wouldn't be sitting here today with the success that you've enjoyed without margaret thatcher turning britain and its economy around, would you? >> i wouldn't be sitting here at all without margaret thatcher. it was her that decided shouldn't be a state-run monopoly and should be privatized and there should be competition and forced the rights of virgin atlantic to fly from heathrow. so, i think for a whole fiscal policy, we were extremely grateful. stuart: do you see anybody else like margaret thatcher in british politics rising now or in american politics coming on strong? >> i think there's nobody quite like margaret thatcher willing to make unpopular decisions to get things done. and she was willing to make extremely unpopular decisions to get her policy through.

and at the time, you know, there are a number of people who felt uncomfortable with her decisions in retrospect, most of the decisions are correct. stuart: can't let you go without talking about your position as top of the tree amongst-- not american carriers, but airlines doing business in the united states. you're number one, are you not, in terms of customer satisfaction, i think that's true. >> yeah, virgin america came tops and if i may say, united came bottom. stuart: what do you have against-- >> the reason i say that we're finally, after five years of battle got slots out of newark to los angeles and san francisco which we will start competing with today. stuart: didn't they drop the price from newark to l.a. and san francisco to keep you out or to hurt you? >> not only that, but at enormous expense to themselves, they used the old carrier tactics of doubling the amount of frequencies that they'll fly. it will cost them around $130 to

150 million dollars a year to try to stop us getting established there, but i can assure you, we will-- we're there to stay and i think with the customers enjoying flying virgin america we'll be around for a time to come. stuart: before you go, i can't help, but remind you of a bet, seven years ago. >> the tape? >> and the bet was that the polar ice caps would not melt. i said they would not melt and you said they would. they have not melted. you owe me a free trip to space. >> well, let's go to the arctic and check, how is it that boats can go through the arctic and he they couldn't five years ago? maybe-- okay. stuart: is that a good thing or a bad thing? >> i think in the short-term, you know, for a quick-- for the short-term it's a positive thing.

and i think in the long-term for the world it could be a bad thing. and so, you know, what we mustn't do is damage business in trying to get on top of the global warming issues. what we need to do is use scientist, technicians to become inve inventive and come up with alternative energy sources. stuart: are we in agreement? >> yes, i think man can, we've got the brains ato do it and in america, gas, i'll be unpopular by some people saying it, gas is so much cleaner for the world than coal and i think that is going to be here. stuart: this is incredible not only have you put in a good word for margaret thatcher and i wasn't expecting that. you put in a good word for virgin, i was expecting that. we've come to an employment on global warming and you want it frack in the united states.

this, sir, is fantastic. >> responsible fracking. i mean, i think if it's-- it's a long way down and i think the negatives of it and the positives outweigh the negatives by a long way. stuart: you're right, yet again. sir richard branson. thank you very much. >> thank you. stuart: great stuff. thank you. i want to go back to nicole because i've got to check j.c. penney stock one more time. down about a buck at the open. >> i know you always say it's so telling when the stock jumps when the ceo is ousted and so let's see what it's going right now. it's down 6 1/2%, which is very interesting here. obviously, concerns about the transition, how will j.c. penney now survive. they've rehired the old ceo to come in. ron johnson came in from apple. you know, prior to apple he was very well-regarded in the retail industry from target. and he tried to come in and say we have no coupons, no deals, low prices all the time and didn't bother to test that strategy. it didn't work, it failed

miserably and when you look at the number, bleeding, sales dropping quarter after quarter and finally enough is enough. the one strategy that the ceo coming back in likes, is the shop within the shop and see if that helps j.c. penney in the quarters to come. stuart: i think it's down because of the mess he left. all right, nicole, thank you. dow is up 20 in first nine minutes of business. and i've got 7 early movers, j.c. penney not the only company with a change at the top. the security software, sourcefire, and new chief, remember what charles payne says about leadership changes. star surgical makes implantable lenses and an upbeat forecast, nicely higher. up a buck on a $6 share. and alcoa, dead flat there. plastics maker shulman lowered the outlook, bad news for the stock, down nearly 9, 9 1/2%.

gm warned it could shift operations from south korea due to rising tension with the north. no change for gm. 27. and microsoft, and chips in xbox. amd is flat down 5 cents. let' not forget about microsoft, i own that stock, some of it. nicely higher, thank you, up 27 cents. and 29, that's retirement territory. and up 25 points for the dow as of now. time is money, 6-- no, 30 seconds on what else we're watching for you, shorter. j.c. penney stock of the day and when charles joins us, death watch or buy this thing low. which? and the irs may be monitoring your social media accounts. what neve to say about the tax and twitter. and i have have my take on the appalling, disgusting

celebrations from them cheering lady thatcher's death this morning. one of lady thatcher's former speech writers will 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 webinars. 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) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." all stations come over to mithis is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one.

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>> all right. it's a dead flat opening, but please look at the level. the dow is at 14,619. while most of us were mourning the death of margaret thatcher, the left actually celebrated. just look at this video. i don't want to show this much, but look at it again. they're drinking, celebrating in the streets of britain and over here, a top host after liberal news program said thatcher was and i'm quoting directly, incredibly divisive, brutal and not that effective. let's bring in john o'sullivan, a special advisor and speech writer to margaret thatcher. welcome to the program. i have to ask you, perhaps the most famous quote from lady thatcher was this one, the trouble with socialism is that sooner or later you run out of

other people's money. i've quoted that on this program countless time. did you write it, john? >> alas, no. i think that was mrs. thatcher herself, actually plus ronnie miller tweaking it a bit and ronnie miller was a play write on the west end and use today work on her speeches, good friend. did you write the one, what the left wants is the poor to be poorer so long as the rich was poorer, too? >> she actually gave that extemporary in response to a question and comments. it wasn't scripted. generally speaking, by the way, no one wrote speeches for mrs. thatcher. they wrote speeches with mrs. thatcher. she was involved at every stage. you can't claim authorship, i'd like to. stuart: i think you should. over here, we've got this gentleman, martin bashir works for a very liberal network, he's calling mrs. thatcher a racist

and more to the point, he says that she was not that effective. now, i totally disagree with that. how on earth could the man say she was not that effective? go. >> well, i think it's absurd and let me say, by the way, that obviously, she wasn't a racist. in fact, one of the least prejudiced people i've ever met in my life and she was well-known for having a cabinet full of what you might call nontraditional tories. and you may remember miller said my cabinet is full of atonas, and hers was full of as stonions. and you remember the winter of discontent? ten years later britain was the fourth largest economy in the world. it's absurd to say that. it's an enormous success. stuart: i believe she rescued my home country. i live in america, and did for 40 years and my home country is great britain and i think she rescued us, flat-out from socialism and she incurred the

wrath of the left because she went directly at them. there was no pulling back, there was no soft-touch language with this lady she went at them. last word to you. >> yes, you're right. by the way, i don't think she wouldn't mind the attacks on her by the left. their mothers should be ashamed, but i remember an occasion just after she left office, outside a hall and a lot of people were chanting thatcher, thatcher, thatcher, fascist, fascist, out, out, out and turned to my league robert harrison and said, oh, doesn't it make you feel nostalgic? >> that's great. i'm so glad you could be with us to share that today. a lot of us here are angry about what the left is doing in britain, but you set us straight, john o'sullivan and we appreciate it. thank you, sir. >> thank you very much indeed. stuart: it's time for the gold report. where are we when the dow is dead flat and so is oil. and not much change for gold.

up four bucks at 1676.576. everybody knows how i feel about tattoos. if you have a tattoo you're out of the will at varney household. what has me fired up about the head coach, rick pitino? what's to be fired up. and charles payne is here, his reactions to tattoo and rick pitino and louisville in a moment. ♪

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>> i don't like tattoos, don't want my kids to have tattoos. donald trump doesn't like his five or six kids to have tattoos. we're with you. see? long time "varney & company" viewers know i detest tattoos and now we have this. rick pitino coach of the winning louisville cardinals says he's going to get one after last night. >> well, the 12, 13 games ago all of these guys, if they say hello, they get a tattoo. they said if you win the national championship, coach, are you getting a tattoo and i said, hell, yes, i'm getting a tattoo. >> you know what i think? let's bring in charles and see what his reaction is, charles. charles: i'm not a tattoo guy either. i don't like them, but something

that everyone's getting these days and he made a promise to the players. question, what should he get? one of the players on the team suggested a tramp stamp. now what those are. stuart: no, no idea, what. charles: the thing there above the buttocks, the tramp stamp. i don't think he'll get that, but one of the best players on the team suggested that. i think he should get kw for kevin ware with the louisville logo. stuart: you would approve? >> no, he made a promise to the kids. i wouldn't get it. i'd apply something else to savor the moment. if you're a ten i'm about an eight dehe testing tattoos. stuart: did you watch until the end, i to goed back and forth. stuart: between what. game and-- >> a movie called "separation", it was good. stuart: at midnight last night charles payne was watching an an iranian movie and you're going to take money tips from-- >> in iran i saw them driving

fords and looking the things in the house, they're buying products out there around the world. stuart: it was a sociological experience? >> that and it was a pretty story. stuart: you sounded off on tattoos, but killed yourself with the movie. next, charles will give his take on j.c. penney, death watch or buy low? we will have his answer on penny's and another green energy fail? millions of taxpayer dollars to a solar company that's gone belly up again. and the social security disability explosion in america. nearly 9 million collecting it, why? we have a man who has an explanation and it might be one that you don't much like. new at 10. ♪

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stuart: another company down, another green energy you helped with $10 million. the disability explosion. what's driving the system to bankruptcy? mood disorders, back pain, fraud? we'll investigate. canada's tar sands oil. left says it's too dirty to use. we'll have a full report. a new hour of "varney and company" starts now. ♪ stuart: jcpenney the story of the day. ron johnson out, tried to

reinvent the brand. failed. night and day difference in the success in creating apple. jcpenney brings back a former chief to replace him. nicole, i know the stock's down, dare we put it on death watch? >> when you look at jcpenney, and i get notes from viewers, ron johnson said i was so wrong. i didn't test my idea of saying no promotions, no coupons, low prices all the time, and that didn't work. he tried to reinstitute it where it was empathetic for a brief moment saying he said it didn't work and tried something in. viewers say don't be empathetic. people were frustrated with him, stock down over, you know, 60% in the last year so now the old ceo is coming back. one of the traders say it was

good for akman, bad for icahn. that was the news we've before waiting for. not seeing it open yet. stuart: thank you, nicole. charles, do you buy jcpenney at this low? jump in, buy low, or put it on death watch? >> it's not dead yet. it was an unmitigated disaster orchestrated by one man. november 2000, it was a $9.60, and then it went up eight fold so it has rebounded before. it's artery, but i don't think dead. i think it can be revived. stuart: an analyst of jcpenney, brian, you call it an unmitigated disaster. a run down as to why it's bad. >> caller: well, look, i mean, thanks for having me on, but i'm no ron john fan by any means,

but you don't fire the guy now. fire him six months ago when pricing strategies started failing or were failing or fire him in another six months when the results of the new shops will be in. stuart: okay, should have fired him six months ago or six months in the future, but not now, and that it is the firing now that is the unmitigated disaster, is that the point? >> caller: i think so. i think that mike in there as the new ceo is a disaster. stuart: why? i've had lunch with the guy a couple times, why a disaster? >> caller: well, i mean, look at the numbers. i look at what stock did last night when it was announced that ron johnson was out, stock was up, and then once everybody found out it was mike ullman came back, stocks back down 20%. stuart: are you putting jcpenney on death watch with other people here? >> caller: i'm not putting it

on death watch, but there's no reason why it can't drop another $3-$4. stuart: real fast, is there a real estate play with jcpenney? >> caller: there is a plaa, but it's not a realize play until it's down to $7 a share. stuart: all right. we here you. brine, timely appearance there, appreciate it, sir. thank you. >> caller: thank you. stuart: dead flat day, tuesday morning, down two, that's it. margaret thatcher, barely dead a day, and that's not stopping the left from attacking her legacy. look at this, openly celebrating her death in the streets of london. jovial drinking in the open, cheers of hatred. that's flat out disgusting. get my take on that, 10:52 this morning. there are nearly nine million people collecting disability benefits, a record, but our next guest says there is a partial

explanation for this. joining us now is a professor at the university of chicago. professor, what's the partial explanation for this explosion in disability? >> well, i think there's several things going on that mean it's the alarmist reports coming out that are overstated. one is, of course, we've been in the deep recession. the second is that we've raised the social security retirement age. the third is that we have more women who qualify for disability because women have been in the work force, and, also, baby boomers are aging, more enter into the peak years of needing disability. stuart: anything to do with the 15% of claimants who claim mood disorder, unprovable, of course, and what about the 29% who got a muse muscular skeletal problem, nope -- known as back pain.

does that have anything to do with it? >> are you picking up a shovel or a trash can to put in a garbage truck? if you talk to people suffering from the disorders you describe, it's true that some of them are difficult to identify in the same way a cancer zigs, but the problems are real, and if you live in west virginia and you're a coal miner -- stuart: i understand that. the british had a study, cost $70 million, combed the records of everybody collecting their version of disability, and they found that if they imposed a standard test, are you able to work, yes or no, 50% of those claiming disability, i mean, 5 # 5% said, yes, they were, they could have worked. that's skiving to the degree of fraud in america creating the explosion. >> that's a laxed british system

to an american system with many of the checks that the british system is now trying to impose. you have to understand that 60% of people who apply for disability benefits ii the united states are denied, and many, many people with the disorders you just described are deemed not eligible for benefits, and look at the people who are rejected, most of the people are either not working or earning very low wages. the idea that people are sort of sneaking out of the work force by picking up the benefits is really exaggerated. of course, there's a level of fraud in the program or level of people who are receiving benefits that perhaps they shouldn't be, and one of the things we can do is beef up that continuing disability review process. you know, the social security agency asked for more money from congress to do more careful reviews, and they have not gotten all the money they need. i think we can do it, but i think to describe this as a rampant issue of fraud is really stereotyping some of the most vulnerable people in america.

stuart: i'm not blaming the victim, just trying to find reasons for the explosion, extra three million people in the obama years. i have charles payne with me with a question. >> okay. >> three things you talked about, the recession, supposedly over for two years, women in the work force, and the hardest hit areas, construction and manufacturing, and men, and older people coming into the work force rather than leaving it. isn't this a problem when academia and politicians refuse to admit, listen, something's wrong, this program will be bustment you referred to people who deserve it. there's going to be a lot of people a couple years from now who can't access the problem because of a lot of people who are lying. should we address that? >> well, i think you've just given a laundry list of things that are either overstated or exaggerated. how many ace -- ace -- disabled people have you talked to in five years?

i -- >> we can't even have a conversation. you assume i've spoken with no one who is disabled. i'm not talking about legitimate people disable. there's something wrong. there's an explosion in this. look at the data, look at the charts. i know people who are abusing this. i personally know a lot of people who are not disabled who are collecting a check, and they are proud of it, and this is something that's got to stop. >> i think -- please let me talk. there's no need to scream at me here. it seems to me that there's no question that the program can be tightened in particular ways, but, you know, many of the growth in rolls we're seeing now were predicted in 1994 by those who worked in the social security administration. it's true that, you know, construction in some industries that employ men are hard hit, the social security run the numbers and rising nurls of women who are now eligible for the benefits because women are in the work force is a big part

of the story. that's what the numbers say. stuart: numbers say they are going bust, run out of money in 2016, that's three years away. we have to do something, haven't we? >> yeah, i think we do. by the way, that was -- that was completely predicted in 1994 that in 2016 we'd need to make adjustments. i think the fact we need to have accounting adjustments has nothing to do with recent news. we knew that many years ago. we knew that 2016 was going to be the time. you know, i think we have to support the program. you know, there's a lot of disable people in america, and -- stuart: none of us -- nobody is suggesting that we end the program, but we got to do something about 15% of people who got a mood disorder. come on. do something about that. the british study -- >> i think it may be there's particular -- maybe -- well, first of all, i think that we're in a very tough economy, and if you're a person who is

suffering, mood disorders are not something to slough off. if you're a person suffering from major depression, bipolar disorder or a number of things putting you on the program, you have a problem. in an economy without the jobs for low skilled workers, those are the last hired and first fired people. stuart: look, i'm sorry, i'm talking all over you. i apologize, professor, i do, but i'm out of time with the hard break. >> okay. stuart: come back again because we appreciate it. a good subject. >> thank you. stuart: a new subject by the accountability office finding, big surprise, huge amounts of government waste and redundancy. too many programs doing the exact same thing. here's peter barnes, gone through it, got three examples of this. number one, green energy, spell it out. >> 23 different government agencies doing more than hundreds of renewable energy

products, stuart, in wind p power alone. there are 80 wind programs backed by -- run by 35 offices in eight agencies, estimated cost $5 billion a year. stuart: i call that redundant. next, what's this about cat fish >> >> yes, there are three government offices that inspect cat fish, the agriculture department, the office of cat fish inspection, and the food and drug administration inspects cat fish, and the national marine fishery service inspects cat fish as well. the gao thinks that could be maybe slim down too one cat fish inspection program. stuart: be careful, be careful. number three, military uniforms. >> that's right. gao says the pentagon is wasting at least 82 million because all the different services are producing all of their different uniforms, and there's not very

much coordination. also, just in storing them, they waste money. it's recommended changes in that area as well. stuart: but if we just cut the budget 2% with the sequester ergs oh, man, catastrophe and armageddon. let's reek armageddon on cat fish. i know it's sarcasm and low form of whit, but couldn't resist. peter, thank you. >> thank you, sir. stuart: glad he didn't respond to that, he's good. the tax man watching facebook and twitter. if there's a red flag on the tax return, turns out, your social media profiles are fair game. they look at them and check. all rise, you know who is next, the judge.

stuart: interesting announcement from ford, focus was thee best selling car, more than o million sold, beating out the toyota second year in a row. stocks at the $12 mark. 60,000 apps removed from google's app store in february to improve the quality of the selection. this fuels speculation there's a new version of the app store soon. google still well below 800. sorry, now this from california. bars there close at # a.m., -- 2 a.m., but one wants to go until four. the proposal said opening up

late would create more service, jobs, and revenue. the law allows each to set their own time, not setting statewide law. the irs watching your status updates and tweets. why? because if you raised a red flag with the irs. what's the judge going to say? we know a place where tossing and turning have where sleepless nights yield to restful sleep, and lunesta eszopiclone can help you get there, like it has foso many people before. do not take lunesta if you are allergic to anything in it.

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what's the stock? >> radiant. we talked about it two weeks ago, up 5% or 6% since then. the march numbers, new insurance policies written with 4.43 billion, write insurance on mortgages -- sorry, 3.6. deling sighs are down, and before that, it was substantially higher. this stock making the move through 11 as a huge technical breakout with room to the upside, possibly 13-14 dollars. stuart: they fix your credit? >> no, insurance on mortgages, and with the fha overloaded, the insurance rates have gone through the roof creating opportunities for the private sectors, the two companies left as long as they don't default. stuart: that's the play, isn't it? >> that is the play. stuart: numbers did down, good for the stock. radian. we'll check it. >> call your brokers.

don: there's a $250 million taxpayer grant and goes through bankruptcy, lays off more than half the workers, and now those former workers, guess what, they filed suit. fisker didn't give them enough time to warn of the layoffs. the trial lawyer will be here at 10:35. would he take that case? i don't know about mark, but he's going to be with us shortly. 10:35. now, this, the irs might be watching you on facebook and twitter. according to reports, the irs is collecting information from social media accounts if there is already a red flag op your tax form. all rise, the judge is here. okay. can you -- what's a red flag? >> well, it is probably some public statement on your facebook page, your public facebook page, not the one you dedicate to a particular individual, inconsistent with something you told the irs. if you claim deduction on your income tax return, but the

lifestyle you lead manifested in social media is inconsistent, that's a red flag causing the irk rs to dig deeper. the facebook page and social media is public. the government does not need a search warrant to look. i can go to your facebook page, you to mine, the government can come to mine and yours. if there's information on that that raises a red flag in the mind of an investigator, that doesn't make sense what was said in the income tax statements, they dig deeper. no surprise they do this, and offensive as it has miranda mor, because what you type becomes public, it's available to the government to look at. stuart: i want to recap so everybody understands what's going on here. i send in my tax return to the irs. they look at it. i claimed deduction or i claimed a limited amount of income. the -- the irs -- maybe it's a

computer, flags it, says, wait a minute, it doesn't look right, therefore, a human being will look at my facebook page or look at the twitter fee. >> yes. let's say you took a trip you characterized as a business trip, and you deducted the cost of the trip from your income, perfectly legitimate if true, and the irs looked at the facebook page and saw you dancing with a grass skirt in a hat and drinking whatever, and they -- this doesn't look like a business trip, look how he looks in the grass skirt, what business is he doing? a silly example. stuart: unfortunate picture of me, but -- >> the grass skirt made me think of it. admit, though, judge, they had success with gangs and different things like that, making criminal arrests. >> hard to defend the government in this investigator preference,

but we're not talking about the government looking at private, one-to-one e-mails. we're talking about the government looking at what you post for the public to look at. of course the government can look at that. stuart: if i e-mail you, that is private; right? >> yeah. stuart: especially my own personal e-mails. that's totally private as a letter, for example. >> yes, but if you take that e-mail own post it on stuartvarney.com or your facebook page or tweet it to everybody in the world, that's not private. stuart: okay. >> it's public, you removed the privacy, and anybody, irs agent or mrs. vrarney or anybody in between. stuart: giving the irs the legitimacy to look at what i made public. >> what do you want me to do of the pictures of you in the grass skirt? >> destroy them? stuart: once you put something on the internet, there's there

forever, can't take it back. you can try, but can't do it; correct? >> correct. >> in a grass skirt? not at the palate, that's for sure. stuart: that was awful. >> you knew who i was talking about. stuart: yes. >> did the cat fish get inspected, sir? stuart: there's only one thing to which i'm allergic, you know what it is? cat fish. >> do they have that in great britain? >> i don't think so -- well, maybe, when they ran out of cod, they replaced that with rock salmon, which i believe is cat fish. >> that doesn't sound advertising. stuart: judge, thank you very much. >> for your help, physical and financial. stuart: immigration reform hits the senate this week we are told, and if all the immigrants gain legal status, all is covered by obamacare, all get social security benefits, would they not. it's a financial program.

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stuart: i think the stock price of jcpenney has kept ongoing down, so, nicole, where are we? >> well, how about now a new annual low again here for jcpenney. it's below $14. it's down over 12% at $13.92 a

share. as i speak, each tick down ward is a new annual low for jcpenney. as we talk about the fact, right, ousting ron johnson as the ceo. they brought in the predecessor, the embattled predecessor who didn't do a great job either. some people now are asking at least one very vocal person saying get rid of the whole board, just get rid of the board. i have to tell you one other headline i read on bloomberg today, the post johnson option seemed to include a sale. jcpenney's for sale? what's going on here with jcpenney? we know the stock's down almost 6 o% in the last 52 weeks. stuart: yes, most on the program today have been negative on jcpenney including a leading analyst which i think is why it's still going down, 12% down as we speak. we'll check back in a second to see the progress on jcpenney. the dow is up 15 # points, still a very flat session thus far,

this tuesday morning. now, immigration reform hits the senate floor this week. we're told, here's the key question for us, what will it cost if all those currently illegal people are made legal? joining us is hector, the chairman of the latino coalition. >> thank you, stuart. stuart: i'm not concerned with the rights or wrongs in this, i'm not concerned what's in it, there's no moral or political posturing here. it's a financial program. i want to know about money. >> sure. stuart: if we legalize 11 million people, they are eligible for obamacare, i believe. that's going to cost us, isn't it? >> no. here's the reason why. what they are talking about is a process of northerlyizing the status of 11 million people. they are not going to be eligible for obamacare day one. now, from that point, there would be an opportunity for some of those folks to get a green card, be permanent resident, and some years later, apply for

citizenship if they want to, if they want to. remember, last time in 86, only a third, i think, applied for citizenship. my argument, stuart, is it costs a lot more if we don't have a solution, to immigration reform. stuart: if this bill passes, and as you say, it normalizes their status without giving a green card or citizenship, you say there's no immediate cost to the obamacare? >> that's right. stuart: social security or social security disability? >> again, what they said is -- you opened it up saying we don't know what's in it. there's the gang of 8 in the senate and a gang of 8 in the house of representatives. there needs to be some conclusion. i think the stipulation is there's not a lot of benefits for those folks who have the status normalize. i say if you have a social security card, and you're paying into social security, yes, you are probably eligible for benefits at some point in time in the future, but that, again, is down the line. stuart: possible for summon --

someone here illegally? they will not have a social security card. >> well, you bring up a good point. a lot of people are here illegally with a social security number. it's not theirs. they pay into the social security system, and that's probably one of the things that's helped keep social security at the level we have it now. they'll never get benefits because it's not their number. stuart: okay. do you approve of the idea of normalizing the status of 11 million people? you used to work in the bush administration, a republican, you approve of what people on the right all amnesty? >> it got in the eye of the beholder saying things are amnesty. way we can't have is a system like right now, a second class citizenship that is living under the shadows, and they are not making the contributions they could make to the economy. they are not going anywhere. they are here. they are imoing to stay here. we have to fix the problem, don't kick the can down the road. stuart: a political question, straying from money. would you fix the border first?

>> absolutely, that has to be a part of it. stuart: no problem with that? >> no, it's part of the comprehensive solution. stuart: a bipartisan view the border is fixed, now get along and normalize the status. >> absolutely. that's rule number one for any country. you know, the country's in latin america and all around the world protect their borders. we have to protect our borders for a lot of reasons. there's instibility now in the bordering and we have to make sure we fix it once and for all. that's part of the solution. stuart: hector, what you're telling me, from a financial appointment of view, no immediate cost to america either from obamacare, social security, or disability? >> that's been stated to this point by both sides. we have not seen the final, you know, version of it, but there's no way there's a bipartisan support for it if there's going to be immediate benefits to 11 million people. you know, this is a process. normalization, permanent residency, citizenship. that happens over a lot of

years. stuart: thank you so much for joining us. >> thank you. stuart: dow up 15 points, no movement in the last five minutes. fisker automotive gets millions in grants, goes bankruptcy, lays off the workers, and now the workers are filing suit.3 next, we'll ask thee top trial lawyer in the country if the workers have a case. [ male annouer ] this is joe woods' first day of work. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef bere opening a restaurt specializing in fish and game from the great northwest. he'll start vesting early, he'll find se good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade.

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lyric from phonak. lyric can. stuart: sketchers, a shoe maker, okay, halted. why, nicole? >> what's interesting is one person said maybe there's news pending. we can't quite break down as to what it's about. what i can tell you, yesterday, one of the analysts tweaked the number, they are hot on scotchers, -- sketchers opening higher saying positive commentary from key retail accounts, broad based momentum, growth in europe, lean inventoryies so they expect strong growth mar gyps in the first half of 20 # 13. the stock was up, halted, and it's a winner over 52 weeks. stuart: a stock is halted pending negative news. this may be a case where the stock is halted pending the december mages of very positive

news. we shall see. >> i wouldn't say always or never at all about halt so we will just wait and see because it could be good news. it was higher before it was halted. stuart: what is it they never tell you to use in journalist school, only time will tell, but you're not supposed to use it, but i think you can do it now. thank you very much. the car maker, fisker automotive being sued by the laid off workers saying they didn't get the advanced warnings they should have gotten. they got millions of taxpayer loans, but, friday, laid off 160 of the 213 employees. trial lawyer is here. what statute says if you're employed by a corporation and you get laid off you must have advanced warning? >> it is called the warn schiewrt, w-a-r-n. worker something rehabilitation

retraining notice statute passed under reagan in 1988. stuart: it's legit? >> it's legit. you need warnings. there's three exceptions to the statute, and they will argue they were in the situation of trying to get more capital, and if fisker had given the warning, that would have precluded them from getting the necessary capital. they were in a financial precarious situation. that's the best defense. stuart: dead if they did, dead if they don't capital wise and suing wise. >> exactly. there is an exception in the statute. if i were the defense representing fisker, that's the defense. stuart: assume you took the case and won. what would you win for the laid off employees? >> okay. the laid off employees can win however much money they would have had if given the notice. stuart: where does the money come from, they are bankrupt.

>> join the line. stuart: how do you get fees? >> there's fees on top of that, a reasonable attorney fee. stuart: 30% and expenses. >> whatever the court says is reasonable. stuart: and then 40%. >> probably not in that situation, but -- stuart: on occasion you have. >> absolutely. stuart: where do you get the fee from? >> and in the cases we lose. stuart: you charge somebody for the time. >> it's an interesting thing. the county has an action against teem too. the state of california might if california pays out benefits to the workers because they didn't get the notice. california can grab the money back. stuart: what about the taxpayer? we put all -- i don't know how many millions, but millions of dollars went into the company, they are now belly up. i'm the taxpayer. would you take my case? no, you would not. >> you want to see where the federal government invested our money and short the stocks. it doesn't work out too well

what, with solyndra and all the companies. >> he's right. two years ago, you know, like they all would have been phenomenal shorts. what about this, the company itself, you know, i know people who know business is getting bad, you can see over the years where the business is shrinking, industry shrinking, and they sit there, they don't do anything or go to school at night or ask for another job, just wait until the number's up and then complain. can you argue that, look, everyone knew we were in trouble kind of thing? >> you can argue that, but all of those workers should be entitled to rely upon the company following the law. they are sitting there saying, okay, i'll have 60 days notice because that's what the law says. surely they follow the law. in that time maybe i can. i was in the market for electric car comparing the fisker and tesla. i got the teslla.

i'm glad. stuart: did you drive the car? >> it's pretty, sexy, just not efficient or economical. >> it's not a car. they made it pretty. tesla took four years to work on a car. >> my tesla goes 300 miles on a charge, and the fisker just 65. stuart: you'd take the case and probably win. >> yes. i want a dog i can win. stuart: i give you a hard time, but i like you. >> likewise. stuart: thank for joining us. >> always. stuart: fear tactics against the keystone pipeline saying the oil is too dirty, the oil leaks, and it's not for us because they export the stuff. after the break, a canadian oil company, kef check -- chief executive take reacting to this. >> contribute 0.01% of global --

>> crumble that up. that's a piece of garbage. ♪ (train horn) vo: wherever our trains go, the economy comes to life.

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firing ron johnson, chief, stocks down big, word, "unmitigated disaster" used on the program. charles payne would not put it on death watch. it's down 11%. boeing announced it will invest a billion dollars to create 2,000 new jobs in south carolina in the next eight years, nonunion skiers. boeing stock at 86. virgin america took title of best u.s. airline performer in 20 # 12. reports based on mishandled baggage, consumer complaints, injure vine number one and united last. canadian oil man next on theow t keystone pipeline. gave people r 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. ♪

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stuart: closer to a decision on the keystone pipeline, but while we wait, opposition to the pipeline is truly intense, even here. listen to what they said to us on this program. >> if we want to have a shot of resting climate change and stabilizing greenhouse gas emissions, we can't invest in the dirtiest fuel source. doesn't make sense. >> world bank finance the fossil fuel projects. if you read the report on the climate crisis from last week, it's the scariest thing you read. stuart: all right. joining us now is lorenzo, chief executive of the million energy, a company involved in extracting canadian tar sands oil. welcome to the prak. good to have you with us. >> thank you, stuart, pleased to be here.

stuart: i don't know if you heard or not, but we had a couple people who oppose the pipeline saying that this tar sands from canada is the dirtiest fuel on the planet. i want your response to that, sir. >> well, i think, you know, canada and the u.s. have a long history of sort of a mutual beneficial business relationship both on multilateral trade and the political base. this project's very important to canada. the canadian economy and the people -- stuart: will you respond to the criticism that tar sands oil is the dirtiest stuff around. >> yeah, we don't think that not approving this pipeline will stop any development of the oil sands in canada. in fact, i think there is report that just came out by the environment industry in the u.s. that sort of confirmed that, and so we're hopeful that president obama will approve the project. i think the vast majority -- just a recent survey done in the u.s. saying the vast majority of

the population support it, creates badly needed jobs, and i think the refinding business is fully supportive of the project. stuart: i have to repeat the question, sir. is tar sands oil dirtier than the oil from houston, texas? >> i don't think -- i think at the end of the day, i don't think that not approving the pipeline is not -- is going to stop any of the development of the oil stands, and i think there's a lot of advancements made in terms of making that more environmentally friendly, and i think canada's made a commitment to that. stuart: you -- is it today on the new york stock exchange, million energy, first time today, is it? >> enlisted on march 12th, and the reason for that was to expand our shareholder base into the u.s.. we think right now there's a real demand for low risk income due to the low interest rate environment, app we think we can provide that providing 4.7%

dividend yield. it's a low risk yield because we never cut it in ten years, but increased twice in the last five years, and coupled with that, wore -- we're going to grow production by 30% in -- stuart: glad we got that. that perks up interest of every single one of our viewers, more than rather than oil is dirty or not. welcome to the prm, we preliminary hearing you being with us today. -- we appreciate you being with us today. >> thank you, sir. stuart: dow's up five. that's all we got for you. this is truly disgusting. i regret i have to bring it to you. people openly celebrating the death of margaret thatcher, drinking in the streets, showing you the true colors of the left in my opinion. my take is next.

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stuart: the hatred now being directed at margaret thatcher is a measure of how successful she was, and that hatred is now being displayed, a measure of how low the left has sunk. here's my take. in britain last night, you could attend drinking parties celebrating the passing of margaret thatcher. the daily mail newspaper reports champaigne in the streets in london.

the students union erupted in cheers on news of her death. the coal minersupon said it was a great day for miners. it was much worse on the internet. over here, martin on a far left network call lady thatcher brutal, incredibly devicive, and extraordinarily, said she was not that effective. i find these displays of hatred disgusting and very instructive. what's it tell you about people who drink in the street to cheer the death of a woman who rescued her country from decline and dispair? what does it tell you about the intelligence of a man who said she was not very effective? it was not so shameful; it would be laughable. back to the 1970s. i think that's when blind hatred entered british and american politics. socialism failed in britainings and the left poured out venn anymore op a woman who revealed the failure and corrected it. same in america. reagan turned the country around and hatred began. oh, how the left corrupted our

politics, and yes, our economy, and, yes, our sense of morality. i will close with the question about the future, how bad will it get when the right finally finds a leader who reverses the decline and failure of the obama years? i sincerely hope the left behaves better than it has with the passing of the truly great margaret thatcher. @

stuart: all right. we have to highlight reel ready. roll it, please. >> if anyone dies, whether you disagree or agree with their views, you do not do that in that kind of manner. stuart: i think she rescued us, flat out, from socialism. >> it was her that decided the british airway should be a state run monopoly. >> people were shouting,

thatcher, thatcher, thatcher, out, out, out. speak to i have this just in. charles spent last night watching and urinary and charles: the ending left me feeling hollow. we toggle between the game and "dynasty" last night. stuart: who should i trust more? who should i go to for financial advice?

charles: me. i want to understand everyone in all four quarters of this planet. we will sell them everything from refrigerators to cars. stuart: you say watch out for those companies that sell a lot of their stock in places elsewhere in the world. charles: i think americans have this. view of the rest of the world. the movie itself had a great plot. stuart: good stuff, charles. thank you very much, indeed. connell, it is yours. connell: i really should have watched more of the show