tv Cavuto FOX Business April 30, 2013 11:00pm-12:01am EDT
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place by this administration, we'll see. we hope you will join us as the truth is revealed here tomorrow night, good night from new york. neil: housing recovery is on, why are so membership buyers not in? -- why are so many buyers not in? a look at a comeback that is hard to doubt but clearly a lot of americans still do doubt, case closed or case case shill irclosed. home rises are recovering. both numbers were higher than thought, and continue a positive trend that leaves me with this thought, whether aren 't more americans buying? we're hearing separate report of supply shortages in once hot
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markets. it has to do with owners who are still underwater. and condition sell. a lot has to do with skeptical owners who want to make more money when they do sell, housing is off the map, it is not off to the race, that is despite record level interest rates and a supply and demand equation that would seem to favor housing continuingo advancement well, it is advancing, just yesterday, national association of realtors reported pending home sales, rose 1.5% in march from february, undeniable that end there is housing friend, if it holds, the economy's friend, our friend, we hepit continues. -- we hope it continues, it is the single biggest investment most of us will make. it appears to be paying off.
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but it will continue to pay off? does that mean that the rest of the economy followed? let's ask real estate expert dotty her man and scott martin, dotty? >> it's a go, i was here two months ago, i said it was great. i said it is doing better. i think we said a lot of foreigners we saw, now we're seeing more and more americans, they are able to move up as their equity moves up. neil: you said it would be better or something? >> i said it would be better. you don't' it to be a bubble. you don't' it to go up 20%. neil: yes, i do, that is what i want. >> no you don't. that is how we get in trouble. neil: my house has been reduced to the value o of a drive-thru
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stuckey's. what do you think? >> i follow stuckeys, i am from mountain view, new mexico, the fed is pumping the economy with liquidity making the rates lower. neil: they have been doing that for a long time, what is the magic. >> there is no magic,. we have to lift the plan sheets up, it is our largest -- >> it is happening? >> it is, it is working. we see prices of average home in americare starting to lift. now here is the big issue. the big question on our mind, i the fed tightening will this party end? i think it will, with inflation 1% below fed's mandate, and unemployment 2% -- >> i don't buy those inflation figures do you? >> i would say at their mandate. and you and i know that
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unemployment is higher that is good because as long as that is higher, what is going to happen the fed will keep printing that will keep house prices where they are if not above. neil: scott, in that same case shilcase-shiller report, a noti, we will not go in reverse but there will not be great dramatic appreciation, 10 years, that i don't like to hear. what do you think of that? >> no, i don't like to hear that, but if you go to mid 2,000s they said different things, so i would not worry much about that. neil: you just -- >> i just did. on tape now. i tell you, you know fannie and freddie are saying that home sales are going up over next several years that would support price, to dotty's point, ern is calling this -- ern i everybodys
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calling this housing market bubble licious. if you want to go out and find a house you can't find one easily, that is why people are not selling, they are afraid they will not be able to find a place to move into. that issue i different than the housing doue of 2007 where credit was given to everyone that walked into the bank. neil: dotty, people who are not putting their homes o on the market, say in the suddenly tight supply market in miami, and silicon valley, and all this stuff, is there issue there is still not whole, they have to wait for price to appreciate more, what is keeping them from putting their homes on the market. >> it is the war, some of that could be an issue, sometimes it an issue of greed, let me wait longer, try to get as much as i can. okay, and but i think a really
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big issue, okay, is tight credit. >> still tight. a little less tight? >> compared to what? >> exactly. >> it is tight, that is why you are not seeing the gains, you need to qualify today, and way your credit has to be, so many people are really cannot get the same kind of credit, especially if you own a business. neil: i don't know whether to interpret -- i see more ads for rtgage lenders with enticing rates and the like, i did not see that months ago. >> it is true, wve made a lot morehead way in commercial lending. large commercial deals -- s -- >> they still have to have a lot
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more skin in the game? what is the rule of thumb for homebuyers. >> right now, you have to have excellent credit, you have to have equity in the house, days of thinking you are going to acquire a home put down 1 or 3% that is. neil: what is realistic? >> 20%. 25%. and also looking at very high credit scores. neil: being? over what. >> high certains unless you go -- high 7, unless you go with government loan you can go for a less. neil: is know that irk -- isn't it ironic with the a government if should be higher. >> it does not make sense, but be careful about your credit because, 75% of the people's credit have mistakes on hem s on them because of the credit companies. neil: that is a whole separate issue.
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i am wondering what if we're wrong, what if this housing hunch of a come bark i a comeba. i think they lot of us base our value what we think our home is worth. more so than americans who might not have stock portfolios, i think this is a mood lifter or downer. what if we're ahead of ourselves? >> we may be. but, housing is back. if we' wrong of saying culling it a bubble that is good, people thought real estate rises would never go down again. we mentioned i tell you that rising rates in my opinion will be good for the housing market, it will bring back the bank model, convince people to get in there and buy ber the rates go to the sky, the same person that tells you that the rates are --
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to tell you that tebow is a good quarterback. neil: he is by the way until the jets screwed up, and by the way you struck back to god that is fine. and so this trend, whether nationwide or city by city. new york is a hot market. where is the strength going to be? >> i think you have to look at the coast, i have clients around the country, i had a client trying to acquire a house 92 in newport beach. he is having to put in offers above market he has chinese buyers coming in with cash deals. neil: they are more of ex option -- exception than rule. >> we have the same thing in new york, we have people, with what to expect, how to win that bid, because there is no supply.
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neil: you are in different league. thank you very much. scott to you as well. don't blame me, how president might use a press conference today to bash republicans on sequesation that creates more frustration for democrats too. if this is what happens with -- cuts think about it what happens when we get major cuts if we ever get major cuts. ♪
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viagra. talk to your doctor. >> republicans saying sequester is terrible, it will ruin our military. we have to do something about it. then determined that doing something about it might mean that we close some tax loopholes for wealthy and well-connected, suddenly, you know what we'll take the sequester. neil: you know, pardon me, that
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sounds like me with a thyroid thing, get over it move on. what was this? over a month ago, right? why is president still bemoaning it today, blaming republicans, but the issue is how all this back and forth over minor cuts is wrong, makes more serious spending cuts that both sides agree are necessary very unlikely. what do you think? >> i think that president likes playing politics with idea of any budget cuts he likes big federal give away to bribe people who supporting him and his party. we saw what he did with sequestration, playing games, he shut down the white house to tourists, he decided we might not have a white house easter egg roll, playing the little games same thing withlight delays, he wants little cuts to
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hurt a lot and blame the republicans so he does not have to decide to make big cuts, he doesn't want to do that, he wants to us pay and pay and pay for the big programs and make it seem any cut are disaster. it is shameful we have a u.s. president playing these types of games, stakes are this high. neil: bottom line. you know, you squeak and squawk enough you get a wheel and grease, furloughs of the faa stop. i'm not sure we had corresponding cuts, but bottom line, if we didn't make those cuts some where else then all this was for naught. >> we'll make the cuts somewhere else. neil: i do not believe it. >> right, we'll see. but, whole performance today by the president, was pretty incredible to watch, a sight to
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see, my favorite answer his head in the sand nothing to see her response on obamacare train wreck to quote max. but on sequester, you nailed it president, doing same thing he has been doing for three months now blames republicans issue whole blame game thing, i guess 300th time is a charm for him? people are not buying it. off he went against to blame the other side for his own program. neil: that is what i'm saying, right or lefts old? >> i will disagree with all of you, shocking. i really don't think we need to cut right now during bad economy times, i have heard. neil: i thought you said times were improving. >> they are, but not yet. >> is there ever a good time to cut? >> yes when the economy gets back on its feet, full employment. neil: is that never? >> you are too pessimistic.
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we're looking at now, i heard about bond vigilante three or six years ago, they will attack us, look at europe could they cut they are in w worse -- >> i would argue that part of europe's problem is tax cuts came in first. >> they drastically cut, and ireland. neil: i don't want to get off subject, but, i think it is taif to say in this environment, given react we had toes mely cuts in -- cuts in scheme of things, i don't think we're ever going to cut, ever, ever, ever. sherri the to you. >> we'll have to have courage to cut, and -- >> we don't, neither right or left. >> we know that spending does not help, so president is wrong, he has been wrong all along, economy is suffering we're never going to have full employment. we have bad. african-american minority
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unemployment is higher under this president, no one is reporting it. neil: where are defense cuts? i am saying -- >> we're going to pay for it down the road, at some point we'll have a group of republicans that will stick to their guns. neil: i'm waiting. >> i blame mainstream media for not reporting truth on the stuff, give the republicans a fighting chance what they try to cut. >> your thoughts? >> i want to, applaud comment made by moment, courage of her convicts said we should not be cutting, we should not be cutting when the economy is bad, i disagree, i just wish more elected democrats would say out loud what they believe, 88% of public want spending cuts, we see that in poll after poll. neil: what worries me about the same poll, they ask you about stuff you benefit from, do you want that cut, no, i understand that is human nature, but this is where this gets to be hard
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for the -- right? >> it does, i would say that polling on sequester has gotten better. as we have passed that time horizon, people are waking you of every morning realizing that sun is risen as expected. people percentage of americans who believe sequester will harm the economy, line we heard from president over and over is down in 30s now. according to few research, and the chicago tribune quoted the polls in totallyic core yates editoriaial against president's cynical games on the faa stuff from which he was forced to back down. >> i am shocked that chicago tribune is criticizing the president. >> they endorsed him! >> they and and have not. back when george w. bush was president, i don't remember republicans screaming about the medicare prescription drug plan. >> you don't? >> i don't.
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his party voted with him. >> a lot of republicans are going after george w. bush -- >> a lot of republicans may have done that -- >> we had honest fight about spending republicans. >> i -- i. >> okay, bottom line, i will have you back later. both parties have their hand in a mess, they have to dig in deal with this mess. and they are not, they are not, and the world is going to end that is what i'm saying. >> man. neil: hopefully not before the end of the show. >> in the meantime, i'm kidding, six-figure bonous sandy's 6 six-figure bonous sandy's 6 month anniversary, a con ed at od, whatever business you're in, that's the business we're in with premium service like one of the best
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neil: look at con ed's hurricane sandy respec report card, a miln plus lost power f, a lot for 10 dayser more, a clear before, so company's economies give themselves 600,000 in bonuses, are you kidding me. >> governor andrew cuomo had a similar react, the fat cats had to give back their fat bonuses, hurricane sandy victim, said these executives are lucking to have their job -- lucky to have their jobs, let alone the bonuses. this is hutzpah. >> more than compute hutzpah, ta con ed conjob. >> can you blake them.
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-- can you blame them, we were all back slapping, and saying what a good job. >> i can bme this, this is the hide in plain site mentality, we'r did terrible, you didn't notice but we're still going to pay ourselves, at bottom of line, i was on ground level with people who for not 10 days, 30, 40, 60 days, still had no power. and you know the pr trickles down to little man on the street, i ran into a couple of regular con eddline men today, i said how did you do on your bonuses, they said we don't get any bonuses, we got locked out last year, stuff like this hurts the little man, they got caught with their hands in the cookie jar, they put it back in the jar, but when is the next time? >> you know, governor, doth protest too much, i am giving
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him passing he personally did not know about this but raises likehis has to be approved. they have to go up food chain, all those folks with a bonus they were cleared. and folks a lot higher, in state anxiouseagency were clearing thn is got out, oh, shock and feigned surprise. >> the governor at this point, is providing a responsible response. but at the end of the day, this is a quasi governmental agency there has to be oversight in place, this is a another indication in one of worst times for our federallicec and state economy -- federal economy and state economy that people are asleep at the switch, someone should have caught to before they paid themselves and the governor -- >> you were out there in your own capacity, trying to help your fellow staten islanders.
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how would you gradall of the reportive you know - you know. >> all of them. >> regular blue collar, con ed worker, i saw them day in day out, working their butt off, all that showed was macro, management was not in place there was no strategy in place to tell them what to do in day 2, day 5, day 30, we need to look at, that not an indication on the regular every day worker but indication on the executives. there have been other power executives who lost their jobs because ofheir response. i am not suggestioning that yone should lose there are job but they -- their job but they should look at the executive management, the guys on the
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ground were doing all they could. neil: next time you talk about fat cat wall streeters and they don't care, when wall street protesters were gathering saying we want a job, he and his brother set out a table and started offering jobs to them in middle of this. further more in middle of storm this fat cat wall streeter rolls up his sleeve, sets up a private rescue, so next time you give me the caricatures of the fat cat on wall street i want to introduce my friend john, and tell you, to shut up! neil: meanwhile, chemical weapons has consequences for syria, and more for us. here is why. terrorists love these kind of weapons, do you think they are not talking about these?
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>> for get to what he does to syria, focus more on whether stockpile of chemical weapon ever leave syria, if they do. retired army general said you better run and hide because this gets bad and fast, the problem is those are awful things to have in the wrong hand, right? >> absolutely. neil, a couple of chemical weapon 101, this not libya or iraq, syrians have a huge stockpile, specifically nerve gas, that is extremely well maintained they started scattering this stuff to keep it out of hands of the insurgents, no one knows but if assad starts to crumble and he needs cash there is no selling what he might do with the stockpiling, sell overseas or insurgents can grab a part of the stock.
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this is a very, very serious scenario for us. neil: and not so easy just you know, throw a tomahawk missile as a chemical compound, but how do you deal with it. >> i tell you that is tough, what made it difficult is president talked about today is fact that stuff is distributed all over syria. so, if we were to attack nuclear stockpile, say with airstrikes or with cruise missile strikes it will not do any good, in particular if hidden in forests, only way to put boots on ground, go after the stuff, missile and one missile and one rocket at a time. so, again, this is not like iraq in 2003 or libya, this is a different situation that in my opinion is more serious. neil: you know i wore about these countries -- i worry about these countries.
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they make their leaders desperate, as you point out in case of arkansassed is -- assad more willing to sell the stuff to get money. how realistic do you think it is that this ends up in the wrong hands, gets to united states or anywhere else then what damage does it do? >> yeah, a couple quick points. this is not about nuclear weapons, which are secure all over the world. this is about chemical weapons this comes in form of a powder or slurry. neil: how much damage could some of more popular chemical weapons do. remember 1995, those terrorists in japan put a primitive form of sarin gas. killed 13 people, this stuff is many times more lethal if it is well kept. once it mixed with alcohol, and
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put into air-conditioning system or a subway ventilation system or anything of that sort, against unprotected, unsuspects civilians particular kill hundreds of people -- it could kill hundreds of people. neil: that is a terrorist a bottom goal, a body count issue. >> absolutely, it makes a pressure cooker bomb looks like child play, it kills in minutes. >> thank you very much. already olighter note, we hope, in just in time for summer, new sonic shake that will make you want to hide your body all summer, 3 words 3 words, peanutr bacon. ♪ if you have highholesterol, here's some information that may be worth looking into. in a clinical trial versus lipitor, crestor got more high-risk patients' bad cholesterol
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sonic's 2000-calorie shake. all in biz blitz. so, you want a big offering, a big response today sres of apple popping on huge response to company's bond offering, largest u.s. investment grade bond issuance in history we're told. this as russia's richest guy takes a $100 million stake in apple. what do you think? >> i think apple is become a value stock, price earnings multiple surge 10. an -- is under 10, apple did a smart thing 70% of their money is away from u.s., this is done for tax consideration. they have 150 billion in cash. they don have to do -- they didn't have to do this. oonly person getting screwed is
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the investor. neil: for equity investor not bad. >> we think that bonds are a more accurate predictor of where a company is going rather than stock prices, apple height have might have been overvalued. the growth is slowing, a hundred billion in bond issues have been done by corporate issuers in the last year, with government rating way down corporate can pay barely above that, this some places they are pay lower than government, they are seen as a better risk than government. what bothers me is that reason apple had to do this is because apple is not allowed to bring that cash home, and pay a higher tax.
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neil: a very good point. never going to happen. big blue tossing out green, buying back more than 5 million of its stock, and raising itself dividend. apple did it. on the day we a american express doing it, gary? >> ibm sale down 5%, demand is slack for business right now? what do you do to goose the stock, anounce a big buyback. ibm is famous for it. against demand not that great out there. neil: you know, dennis there is a another interpretation, companies that want to put their cash to work are not doing it in things that would make president happen or a macro economist happy. >> they are not creating jobs
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that is not the purpose of a company, it is to enhance the shareholders -- . neil: if they profited in economy they would. >> u.s. company committed to00 billion of stock buybacks of their own, some started companies warren buffet berkshire, and aches, and disney theyuyback their stock, other times a disaster, netflix bought back store at $200, then it fell to 53, why done you buy there, they are deciding, i don't trust the economy and government policy enough to invest in new service, i am just going to buyback a piece of myself. neil: does that trouble you? >> absolutely. look. you know every day when i speak to companies, they say the same thing, too much uncertainty on every fund whether tax, health care, they don't know how many people they want to hire just
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based on the healthcare bill, until uncertainty goes away you will see more. >> gary, i one up you, it is not really uncertainty but it is certainty of bad government policies and tax increases, and medicare tax, a investment and cap on savings, you are not allowed to save on 3 million, and get a government break on it. that is very answe antibusinessd hurting us. >> and like a kid who can't get enough candy. neil: in this league, sonic with a shake that tastes like bacon, 1700-calorie agreement could prove your doctor's nightmare, can you imagine when michelle obama must be thinking, this news after weeks announced dorito tacos. >> my arteries are constricting
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just thinking of it right now. i'm a big believer, businesses should and could do whatever they want i am sure mayor bloomberg is poed about this. if they think there is a demand, put out. >> i think it is delicious, bacon and peanut butter, two signs that god loves us and wants us to be happy. a new tre, a antimichelle obama and antimayor bloomberg type of product, more food companies getting into that like the recent donut sandwich, michelle, you know what we think of your preaching. neil: a bacon 8 or baconater .
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>> their tit-for-tat for food police, what do you think? >> i don't think that businesses are saying oh, look at what you are doing to us, they see a market for it, believe it or not a market for something that is 2000-calories and contains peanut butter and bacon lifting your cholesterol numbers to the moon. >> oh, gary. gary. >> economics, if did is a demand you supply it. >> never under estimate the desires of heroes of capitalism to be petty and take vengeance, that is where i think you are wrong. neil: where do you think the term fat profits came from. thank you. >> if you want smarterkids.com, kee
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neil: now everyone is staying after school, for two hours or longer, that is what new york city's to try out in 20 middle schools. greg said, problem is not with time spent it is with whom it is spent. you seem to not necessarily be inspired by the teachers who work with those kids longer? >> gosh, whole program sounds like trying to cure lung cancer with a pack of cigarettes. il: that would be a bad idea. >> the school system is failing. i don't see how locking students in for an extra 2 1/2 hours will do them good. what is needed in new york city, and all cities is structural reform to underlying structural problem, biggest problem with
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our schools is the dominance of teachers union, particulary so mamany cities sign contract givg teachers so much control over i canni rick lum -- >> and you have many teachers who are incom incompetent, there teachers who are good out there but you cannot reward them, purge ranks of those who should not be there. neil: at least you pay more for teachers because they will want more money to do that, there is no responding demand that kids test scores go up, i wonder if there is something about the way we treat our school year, that does not jive with much of the western world, in south korea
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school day is almost 10 hours, and japan 9 1/2, and china approaching 10. that by comparison we might lose out just on shear hours learning. what do you make of that? >> well, i think that quality of our education has gone down, the test scores reflect that, without consider responding increase or decrease in hours, children 50 years ago were learning more and were better prepared. with roughly the same number of hours, i don't think that problem is hours, but problem is the control that the politicians have given to the unions, over the way that public schools are run. neil: you know, some of the examples that pilot schools have, and independent operations, where kids test scores do improve, if they were to try something like that. as these establishments where parents have a choice, they can see, the results,hey might intertain it but, short of, that i don't know if there would be
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anyone jumping for this? >> no, i think that is right. if you top scrap the school day as it constituted, and replace it with a pilot program that is innovative go for it. but tacking two hours on the end of the day after the children's brains have been bludgeoned to submission for 6 hour lard, i do no6 already, idon't see that wot me. neil: or mark zuckerberg just abou everywhere. doing a fundraiser for chris christie one moment, then pushing for keystone pipeline the next moment, i do know it is the next moment, i do know it is helping that the capital one cash rewards card gives you 1% cash back on all purchases, plus a 50% annual bonus. and everyone but her... no. no! no. ...likes 50% more cash. but i don't give up easy... do you want 50% more cash? yes! yes?! ♪ [ male announcer ] the capital one cash rewards card gives you 1% cash back on every purchase, plus a 50% annual bonus
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neil: mark zuckerberg piping up about the keystone pipeline, you argue that guy behind that ad, carries more clout than the guy in the ad. >> people know that mark zuckerberg is behindhis. we see him branching out making it safe if you will to be right of center on some issues, you see far left, environmental left coming out hard slamming him almost bullying tactics, thuggish, saying how dare you be on side of other guys that we don't like, he become back down and say that is not me, but particular be a fall line -- it could be a fall line where left no longer has control over zuckerberg and perceived that culture, he is young, a lot of
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young people don't have that kind of money, his group is taking a responsible position ono keystone, i think that his opposition tactics are shameful. neil: but, it is interesting, we look at this, he you know, as a track record of befriending, mocrats and republicans, very chris christie-like if you will. so he i he is ecollect -- in his political taste. >> he is a guy worth a lot of money, i would nominate what we heard for under statement of country, a lot of young people don't have that kind of money. no one has that money. >> or any money. >> so, he has a long career aheadd he will be involved in politics
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for decades,od willing, i think he wants to reach out to both sides. i'm glad that topic has come up to revisit the keystone pipeline. what is going on? there is no decision still, they had 4 years to make this call. thousands of americans jobs on the line. congress has bipartisan support, canadians want it, 2/3 of the american team want, still the president has done nothing, i think every day republicans should ask the president why he continues to stand between americans and thousands of good paying jobs. neil: i think he is trying to define a right way to lit down environmentalists, unions like it environmentalists don't, what do you make of that kabuki dance. >> i think so.
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mark zuckerberg has been on the right on lot of issues, you mentioneds wher chris christie. neil: particularly on the governor, he seems to be very bipartisan in that sense. >> that is a safe thing to do there. neil: absolutely. >> his relationship with christie began earlier, oprah introduced them, he and cory booker the mayor of new york -- >> i think he likes his style. >> mark zuckerberg is admired by a lot of people you see that movie the subject of his life, he may not be the nicest guy in the world. neil: facebook started to find girls. >> what he is doing is brave, if he can stand up to the left on this, good for him, i think that you know it is safe for a guy like him to -- chris christie but you come down take sides on something like keystone, and i
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think that president is held hostage on the far left on this, i will give zuckerberg props. neil: but also saying rich should pay more, i don't know whether to same percentage that president advised. he will leave you guessing. >> he could voluntarily pay more i'll take it. neil: he could, where do you think this is going with powerful silicon valley ties or those associated with technology community, in past, more liberal than consider ar are -- conservative they are not plates that way. what is in it for them it lean right. >> ironic whole context of about what particular ad this clip you played of graham talking about keystone pipeline that is done
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in a broader sense, they are pushing for immigration reform. neil: a very good point. excellent point. >> this is like one small part of that broader push for immigration reform, laps to mention keystone, and left flips out because while pro mosting promoting something they like. neil: one thing he mentioned he is for immigration reform. you know giving more visas to the hotshot technology students from abroad. so this is a way of packaging both, right? >> well, look, we have talked about mark, is pro education reform, not necessarily a liberal democratic issue. >> he is pro making money. >> no -- issued like education, and immigration high knows for his bottom line you need those smart students. and on keystone look, i agree
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with him on those issues. if you look at zuckerberg, i don't know he is left or right i agree with him on the issue. neil: i think the more you hang around with me. >> you think it is rubbing off. >> the left does not own him completely. neil: i think if you are a billionaire no one owns you. >> he owns us. neil: do you think that pipeline will get done? >> i think it will, i think that president does not have a lot of people staying with him on his side. he has far left to throw a bone to. and. neil: i think he is going to throw them out, guy? >> i don't know. they had 4 years to do this. said we're studying it taking public comment we're thinking about it sleeping it, on it, dream could about it, they have 4 years not like th the economy
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does in the need tens of thousands of jobs why not pull trigger before your reelection. >> me needed far left, we're out of time. let's hol and much more. we'll see you then. david: "money" with melissa francis is next. melissa: i'm melissa francis and here's "who made money today". warren buffett, berkshire hathaway owns a significant slice of mastercard. mastercard stock hit a record high today, climbing nearly 2%. buffett owns 405,000 shares of the company. that means he netted a one-day gain of $4.2 million. not bad. getting money today, apple. it sold $17 billion worth of bond. it's the largest non-bank bond deal in history. apple is planning to give $100 billion back to shareholders by the end of 2015. the bond sale will help finance it. those shareholders are not complaining today. the record bond sale helped apple's stock climb 3% the. a
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