♪ ♪ ♪ imus in the morning ♪ >> obamacare in desperate trouble. what should we do? good morning, everyone, senator

harry reid says spend more money. senator backus calls obamacare a train wreck, so repeal it, replace it? no, same old-same old from the senate leader, spend more. well, ben may print more or he may not, but we've still got a less than stellar job market. the layoff rate stays high no matter what the establishment says. we're not done with that glorious socialist may day. wait until you see the riot in america. "varney & company" about to begin. le announcer ] at his current pace, bob will retire when he's 153, which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on hisortfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade.

>> ah, you are looking at america, not europe. this was may day here. the streets of an american city turned violent on the big socialist holiday. that was seattle. police using pepper spray, tear gas and protesters throwing rocks and bottles and usual stuff. 18 arrests, may day here, unfortunately, not there. and then there is harry reid.

he has a simple solution to fix obamacare, all we have to do is spend more money. here is the senator talking on the radio show in vegas. >> and said millions we implement this property it's going to be a train wreck and i agree with him. >> we're not spending enough money and not implementing it properly in your opinion? >> yes. stuart: you heard the senator, want to avoid an obamacare train wreck, just spend more money. implementation of obamacare is immune from sequester cuts so go one step further, says the senator, spend more money, more on that coming up. bounceback on the markets, yes, not all the way back, but a solid gain when trading. thanks to ben, you may ask? don't forget facebook, it may not be cool anymore, but it's profitable. a nice gain. watch it live here. ♪

[ male announcer ] from the way the bristles move to the way they clean, once you try an oral-b deep sweep power brush, you'll never go back to a regular manual brush. its three cleaning zones with dynamic power bristles reach between teeth with more brus movements to remove up to 100% more plaque than a regular manual brush. and even 76% more plaque than sonicare flexcare in hard to reach areas. oral-b deep sweep 5000 power brush. life opens up when you do.

trust your instincts00 to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased d blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron.

you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com.

the wright brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪ hi. [ baby fussing ] ♪ >> one minute from now, are' going to see the market open. the dow open with a maybe 40-point gain. now, the job market, i say it's looking soft to say the least, but investors don't like what they see when ben keeps the money spigot open. ben castle is with me from the wall street journal, ben keeps printing and that's the story.

>> to be clear i'm not the guy fronting the money. that's ben bernanke. stuart: go. >> we clearly get the jobs numbers tomorrow and nobody thinks they'll be great. they may be okay, but nobody thinks great. good news today unemployment claims down. stuart: down, look, the moving average is still very high. you can't say that the job picture is really positive. >> well, the real issue, we need people to hire. it's great if they're not laying people off, that's not enough. we need to hire workers, not fire them. stuart: and are they doing that? >> not in the numbers that we need. stuart: we're going to talk about ben bernanke shortly so ben castleman hang on there in a moment. and the markets open in 40 seconds and the pre-market indicators suggest that we're going to go up maybe 40 points when the dow starts to trade and perhaps just as interesting is the price of gold and looking at that, that's a current active market, up $20 an ounce, approaching $1500 an ounce and we'll see how at that goes. and facebook, we're watching

that very, very carefully because there was a big number yesterday. and the number was 1.1 billion active monthly users on facebook. and that's a big improvement and we're expecting facebook to go up when they start trading, which will be in a matter of three seconds' time. here we go, the bell is ringing and you know the story, when it stops ringing they start to trade and we're looking for a 40-point gain for the dow in the very, very early going and i don't know who that is ringing the bell and i'll find that out for you. the opening trend is slightly higher and moving a fraction above 14,700. all right, let me get at that big number from facebook. 1.1 billion. that's how many active monthly users it has. 680 million active monthly mobile users. the facebook story here is the shift to mobile. that's the tech story of our times, if you ask me. smart phones rule and facebook made of bigger profits. they're off and running, where are they?

>> they're just about 3% and it's all about the mobile story and getting advertisers to pay good prices to advertise on, with mobile, and they're bringing in the money and mobile ad sales 22%, that's about a third of the ad revenue now on mobile and also with facebook, you have to realize that everybody is talking about facebook fatigue, we're not on facebook as much as we used to be. but facebook is trying to put that notion to bed with its daily and monthly-- >> i agree. and of course, when you go back to when they launched the public trading of shares, it was 38. but we've struggled to 28 as of this morning on that good news. all right, so, lauren, thanks very much indeed and the dow is up 31. america, you know the story, they love big trucks, we love our big trucks and ford is going to boost production of the top selling f-series, especially the f-150. shares of ford still at 1350 despite that. by the way, they're opening a third shift at a kansas plant,

1,000 more jobs in kansas at that plant. now, look at general motors. rotten numbers from europe as expected. the news is they're investigating 11 billion in china, creating 6,000 jobs over there. now, that means profitability for general motors and they're at a 52-week high, $31 per share. all right, the dow is up 41, as expected in the first two minutes' worth of business and let's see where we go from here. ben castleman is still with us. all right, today, europe signaled that they are going to print. the japanese are printing as many yen as they possibly can, and yesterday afternoon, ben bernanke says, hey, i might print even more. i suspect that it's not doing any good to the underlying job market. what do you say? >> the job market is getting better, if you look at the numbers. it's just not getting better as quickly as we want it to. we created 2 million or so jobs over the course of the past. >> we're still over 2 million jobs short of where we were.

>> close to 3. >> close to 3, yeah. >> okay, you can say it's an improvement, but it's nothing, really, is it? come on. >> we've seen the unemployment rate come down, we've seen some hiring, but look, nobody is going to say that this is a healthy job market, that this is where we want to be. i mean, we're talking 3 million jobs before the recession and the economy wasn't great before the recession, and the job market in the 2000's was fairly weak. >> you've written a peace in the wall street journal that says all of these people that are dropping out of the work force, it doesn't have much to do with disability. it doesn't have much to do be people being discouraged. you say it's about baby boomers like myself retiring. >> nobody is suggesting that some of these drop-outs are not because of discouragement, disabilities or other issues. we estimated that probably accounts for three, maybe four million of the drop-outs, but there are probably another three or four million because of demographic effects like baby

boomers retiring and at the same time young people staying in school longer, that's a long-term trend that's also a factor, right? people under 25 are just not working in the numbers they used to because they're staying in school. >> i'm a great believer in demographics, they're the engine the way the economy moves. a prediction from you, please, for the unemployment rate and the new job creation of tomorrow, will you do that. >> concensus is 148 and 7-6 and probably know as much as i do. stuart: that's a duck. that was good, thanks for being with us. >> thanks for having me on. stuart: appreciate it. i'm talking about a discouraging sign for the economy, talking alcoa, it may cminum production and slumping prices and alcoa, the stock, please? >> yeah, it's up a little bit. a quarter of 1%, and 8.45, exactly, a global surplus of aluminum, and lackluster demand and weak prices making alcoa reconsider and review its process, not only for smelting

the aluminum, but some permanent shutdown and refining. and these are-- >> and i hate to call the great alcoa a door-stopper, but it is. as long as we've been doing the show it's been $8, and there it sits. and lauren, thank you for being with us today, we appreciate it. we could have a vote on the internet sales tax as soon as next week. our next guest is a businessman who is in favor of applying state sales taxes to internet selling. and gary shapiro is the ceo of the consumer electronics association, gary, first of all, i want to straighten myself out for a second here, i live in new jersey, if i log on to the commuter, buy something on amazon and buy something from another state. am i supposed to pay sales taxes on the on-line purchase? that's what i'm supposed to do, right? >> the state of new jersey requires that you voluntarily report to them all of your

internet purchases. stuart: nobody does, do they? >> actually i do. stuart: you've got to. >> i'm in the minority. i don't have to and some people do. people are in jail today because they have not done it which is one of the great reasons for this law. it allows arbitrary government enforcement. it allows the next supreme court nominee not to be confirmed, perhaps, because they didn't pay internet sales tax, like the nanny tax. i mean, today, this is something we do with employers, with w-2 and w-4 forms. it's a lot easier for someone who is doing it through large scale to report those things to the irs and the same thing on the state level. already a required payment. >> i do take your point, larry, but there's a bigger picture, that law is not enforced at the moment, largely all across america. if you've got this new law, which imposes those sales tax, it is a new tax. it's going to take more money out of the economy and i suggest that that is bad for the economy. what's your comeback on that? >> he well, it's not a new tax, in fact, the republicans don't like new taxes and the entire

republican governor's association is endorsing this and many republican governors, norquist's already. it's not had a new tax, it's an existing tax that people owe. some people are paying and others aren't. >> the vast majority of people are not paying it and when he they are required to pay it, i mean, with the new law, they'll be paying it, they have to because it's going be to be collected by the amazons of this world and that will take tens of billions out of the economy. did you really want a tax increase now? >> well, i don't think that's the right way to frame the issue, the truth if you're a wal-mart or a best buy customer today even on-line you're he paying the tax. if you're an amazon customer in many states you are paying it. if the supreme court had a decision that said, look, this is an issue that congress has to act on if they want the availability of internet salespeople to pay a tax, in that case it was cadillac sales and congress was doing its--

the truth is the states had more requirements put on by the federal government and they've had lower sales tax revenue because internet providers are getting a freebie. in california there's a 9% sales tax and you have a california brick and mortar retailer competing, it's not right. stuart: maybe the 9% sales tax is not right? look, gary, you've made your case and i appreciate it. thank you for being here. >> always a pleasure. stuart: thanks, sir. and in the 10:00 hour, two-- we've got grover norquist coming up and i've mentioned him and grover is coming up for us. also in the 10:00 hour i've got a couple of what i'm going to call outrage stories for you, first off, food stamps for illegal immigrants, we have the man who blew the whistle on it, he says he's forced to keep quiet. and next outrage item. the reporter who broke the story on the retired cop on disability, who wrestles people on a reality tv show, that's not the only story he's got. yes, another cop collecting disability. you will not believe what he's

up to. that's coming up on the 10:00 hour. 7 early movers with the dow up 52 points. strong outlook for the business website yelp, up big time. and by the way, next week that graphic is going to change and they're going to make the percentage move bigger so i can read it without squinting next week. and strong demand making marriott raise its profit forecast and it is, whoa, what's that? now, that's down 1% on marriott, okay. lower profit at the data storage company, seagate technology better than expected up it goes. higher profits for cbs the company commanded record advertising rates for the super bowl and it's up 3%. better than expected profit and higher profit forecast from visa and it's up-- you see they're telling me in my ear because i can't read it. up 3%. profit fell at allstate and better than expected flat.

bigger loss at avis budget, but company raised, flat. to the big board, look at this, a bounceback not all the way, but after the drop yesterday, we're up 50 points. time is money, 30 seconds, here is what else we've got for you, on our business, a travel theme today. we've got two states building a high speed rail, yes, did you know that? or trying to, and california and texas, okay, which one do you think is going to do it and do it right? i suspect that's a no-brainer, but we will ask the question, and give you the story. travel websites big profit. where is that money coming from? who is booking trips? here is a hint, it's not us. and they're piling into the private jet market, going commercial not really pleasant, is it? so get out of dodge. we'll talk to the man whose company has the first private yet app. we've got it all. and then we've got legal marijuana, in colorado fly to denver, go to the pot shop,

light up legally. any tours available? that's next. ♪ jump, jump ♪ ♪ jump, jump ♪ ♪ (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company." why are 8 million people sleeping better tonight?

why are 8 million people they went to a sleep number store. the only place in the world you'll find the sleep number bed. clinically proven to help each of you sleep more soundly. with dual air technology, it allows you to adjust to the support your by needs. each of your bodies. and the only place you'll find sleep professionals that will help you find a number that will change your life. your sleep number setting. you won't find any of these innovations in an ordinary mattress store. you'll only find sleep number at one of our over 400 stores nationwide.

and for those who sleep too hot or too cool, now save $500 on our temperature-balancing memory foam bed set. don't just change your bed. change your life. at only one place: a sleep number store. where queen mattresses start at just $699. sleep number. comfort. individualized to find your store, visit sleepnumber.com. very logical thinker. (laughs) i'm telling you right now, the girl back at home would absolutely not have taken a zip line in the jungle. (screams) i'm really glad that girl stayed at home. vo: expedia helps 30 million travelers a month find what they're looking for. one traveler at a time. expedia. find yours.

for sein a whole new way. for seeing what cash is coming in and going out... so you can understand every angle of your cash flow- last week, this month, and even next year. for seeing your business's cash flow like never before, introducing cash flow insight powered by pnc cfo. a suite of online tools that letyou turn insight into action. >> as expected a modest bounce, 14,749 right now. we're focusing in on the business of travel all day today on this network. we've got a denver-based company that is offering what is called the first legal marijuana tours. so, what are these tours, what would it be? what would it entail? here we have betty with us, from the national cannibus industry association. betty, welcome to the program,

good to see you. >> good morning, thanks for having me. stuart: now, i live in new jersey. suppose somebody i know were to sign up for a pot tour in colorado, what would i get? >> well, there are a handful of different things that people in this emerging sector of the marijuana industry are able to offer at this point in colorado. one of those things is a comprehensive tour, including cooking classes, growing classes and other using classes, so that people understand how to appropriately use marijuana when they come to visit colorado. some folks are talking about opening up a bed and breakfast, perhaps where harried moms from other areas could come and have a spa weekend and hear people discussing a medical context for marijuana tourism. say you're living in another state and you have an ailment that might be helped by marijuana. you can come to colorado, try it out. find out if it's something that

will work for you, and when you get back home, you can advocate for having medical marijuana available in your own state. stuart: we are talking about the package tours being in place right now or do i have to wait until next year, 2014 when i believe it is, i mean, totally legal, to walk into any corner store and buy it? do i have to wait on next year? >> well, we do see some package tours available now. today, you can go on-line to some of our members, such as my 420 tour.com and learn about the panels available. it won't be just any corner store. there are specific stores that sell only marijuana beginning january of 2014. stuart: all right, how much? if i signed up for a pot tour today, you pay my air fare, you give me a hotel room, take me to the pot shops, help me smoke and cook, et cetera. how much? >> that's a great question. i don't run the tours and i can't answer. stuart: give me a ballpark, you know the ballpark. >> several hundred dollars i'm

sure without airfare and lodging. stuart: a weekend on weed under a thousand bucks, do you think i could do that. >> i'm sure it's under a thousand dollars, yeah. stuart: i get to colorado do my thing and smoke up a storm and then you've got the some weed left. can i bring it back? >> absolutely not. it's critically important that people understand when they come to colorado, they are protected by colorado law. they are permitted to possess and use marijuana privately, not in public view. and when they leave here, they need to leave without any marijuana product on them, as they will be subject to their own laws in their own states. stuart: all right, betty, we appreciate you being with us today. keep us updated on the pot tours, we appreciate it. thank you. >> thank you. stuart: 9:48 1/2 i suppose you could call it. and we are up $22 on the price of gold. we're up $22 as we speak, 1468. it's pat sajak fuhrs the mayor,

and see what he did about the soda ban. and he'll have a comment on pat sajak. i turned 65 last week.

the math of retirement is different today. money has to last longer. i don't want to pour over pie charts all day. i want to travel, and i want the income to do it. ishares incomes etfs. low cost and diversified. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.

. [applause] >> thank you. made an important discovery. cola is better with trans fats. stuart: i'm sure you've got the story. pat sajak long time host of wheel of fortune. it was filming at madison square garden, and he was talking about the mayor's ban. charles: he's the most popular guy out there. stuart: more fuel for the energy boom in north dakota. a new government survey there shows there's twice the oil and three times the natural gas that

was originalll thought in the dakotas and montana. okay, that's three states. charles, i think you've got to add to this. >> absolutely, by the way shall the people in the industry are saying, you guys are way behind. harold hamm who revolutionized this, continental resources, says there's 24 billion barrels just in the wilson basin along because the government is using old ways of doing this and measuring reservoirs. using deep horizontal, he says they're way, way off. 24 billion barrels. stuart: 24 billion barrels of oil. charles: right. stuart: just in that one deposit. charles: where the bakken is and again, the industry knows this and good to see the government catching up, but they're way off still. stuart: and natural gas maybe it goes up, an astonishing explosion of energy we have available if we get it. charles: at least in north dakota they are, they're giving

$300 signing bonuses at mcdonald's. stuart: do they? >> that tells you what an economic revolution it is. i lived in north dakota, if i knew of this was going to happen i wouldn't have left. stuart: the weather notwithstanding. two states trying to build high speed rail, california and texas. guess which one is actually winning? why is it winning? that's coming up in our brand new hour of "varney & company," but first, grover norquist, washington's leading washington crusader, a divided g.o.p., and he responds to republican critics 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 questi is how do you make sure you have the money you need to enjoy all of these years.

♪ stuart: thursday, they second. the man who hates any and all tax hikes. grover norquist is here. the man who told the truth. he has been handing out food stamps for decades. he is here also. the man who exposed him is. he brings with him another case of disability abuse. ♪ ♪ stuart: right off the top this hour. the internet sales tax may be dividing the republican party.

some pro- tax, pro- sales tax republicans are taking aim at anti-tax grover norquist. a lot of goods into and saying to me, grover or qwest did not elect you. here is congressman scott rijo on varney and company earlier this week. >> these taxes are due now, stuart. stuart: joining us now. none other than grover norquist. i put it to you this way. not good. here is the challenge. the internet tax law that they are trying to pass is likely to pass soon.

it is really dangerous to what alabama politicians would do to a business in maine or california or new york. you just allowed 49 states to do the same thing to alabama businesses that export through the internet. they did not allow it to go through the normal committee. they did not ask all the questions that need to be asked. they will have testimony. i do not think this will sail

through the house. it is a bad idea. stuart: governors, gop allies cash over tax cuts. it is another split among them. >> the governor wants to abolish the state income tax. there are ten bills to do that in his legislature. i like the direction that bobby jindal and the legislature of louisiana are moving.

stuart: can you fight them off? you have opposition from republicans. you think you can fight him off? >> yes. the big question is whether they won't raise taxes nationally. it is a change in federal law that will make your estate taxes go up. that is not about the internet. it is not about sales taxes. they want to be able to export corporate taxes from north dakota in two other states. that is the danger. stuart: thank you, grover norquist. check the big board. let's get to lauren simonetti.

>> big winner. the stock is soaring 21%. their revenue grew and they raised their full-year forecast. they are really successfully engaging their users on mobile. they are bringing and advertisers on mobile. stuart: as you are reporting that 21% gain for yelp this morning, our colleague, charles payne, was throwing a fit. charles: a huge win. a huge move. i looked at it. i was this close.

stuart: let's start again with harry reid. we have talked a lot about him. remember this? >> the sequester could also cost the country and humankind a cure for aids, parkinson's disease or cancer. stuart: shaking our heads. this story may surprise senator reed. that is not all from senator reed. yesterday he said to avoid an obamacare train wreck, we need to spend more on obamacare. charles, do you want to make a comment? charles: classic harry reid

stuff. that is incredible. stuart: along comes another senator that says implementation is a train wreck. charles: let me off this train. i cannot ride it anymore. he is looking down and sees no tracks. speed it up, boys. [ laughter ] stuart: that is good. judge andrew napolitano is here. >> the same administration that pushed a few years ago. their argument was false.

stuart: spend more money. please. >> it may be invalidated by the supreme court. the state can only tax taxpayers who have a significant presence in that state. if they are just sending a pair of jeans to somebody and alabama, the state of alabama cannot tax because it is not in alabama. i am just using that as an example. stuart: i do not think that that is realized at this point. >> the costs of those blue will go up.

stuart: yesterday you railed against the fpa approving the use of this morning after pill for girls as young as 15. i have lots of headlines this morning which i find confusing, to say the least. u.s. to appeal order lifting morning after pills. let's cut through all of it. does the obama administration want to change that ruling? >> the obama team has instigated that. it is a ruling by a federal judge here in new york city. they found that the secretary of health and human services made a decision to draw a line at age 15 based on politics rather than

science. she cannot, under the law, make a decision involving a prescription or nonprescription judgment based on politics, but science. stuart: doesn't that mean that the president will be free to offer over-the-counter birth control to anybody? >> the judge basically said, your decisions are based on politics. you cannot give me a scientific reason about where to draw that line. therefore, i am removing the line altogether. that is what the obama team is appealing. stuart: what the obama team wants is -- >> they want the line at age 15.

they have some redeeming value. stuart: a 15-year-old girl who cannot get an aspirin at school can go to the drugstore and get the morning after pill without a prescription. >> this headline is a political headline that the driving force behind letting women, girls as young as age 15 get the morning after pill is not a federal district court judge. stuart: thank you very much, indeed. general motors hitting a high. the stock price. >> it is indeed.

3163. not a bad day for general motors. they essentially said that their north american operations increasing and improving. although their pockets did fall well as their revenue, new 52 week highs for general motors. stuart: employing 6000 people. they will make money over in china even though we bailed them out. they will put money over there. thank you very much indeed for being here today. we always appreciate it. snowstorms in maine. al gore's head may explode. my take on his latest rant is

next. first, we have a lesson for jerry brown. both of those stories after this. ♪

♪ stuart: we will start with facebook. profits up 50%. the boost came from mobile ad sales. they have 1.1 billion active users. look at the stock. up 3%. ford adding 900 new workers to its kansas city factory. shares of only seven cents. general motors sending its money overseas. investing 11 billion in china. 6000 jobs created over there. coming up, texas is following in california's footsteps with high-speed rails. there is one huge difference. who is paying for it?

who will actually get it built? it is a no-brainer. that is what we are talking about next. ♪ this is america. we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day afr day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zero heartbur

we're not in london, are we? no. why? apparently my debit card is. what? i know. don't worry, we have cancelled your old card. great. thank you. in addition to us monitoring your accounts for unusual activity, you could also set up free account alerts. okay. [ female announcer ] at wells fargo we're working around the clock to help protect your money and financial information. here's your temporary card. welcome back. how was london? [ female announcer ] when people talk, great things happen. stuart: the taxpayer backed bullet train babies you railed. the cost has skyrocketed. earlier this week, we got a prediction that it will be killed. one more time, please give our

california viewers that it will be -- >> killed. stuart: thank you very much. very different story in taxes where they are building a bullet train houston to dallas. rich edson is here. will it come in on budget? rich: they are hoping that it will, stuart. it will be of entirely private capital. 205-mile per hour train gets you there in about 70 minutes depending on the number of stations that they built. the investors will have a presentation in the next couple weeks to figure out if they will actually move ahead with it. they are very well into the planning stages, stuart. stuart: i knew it was going to

be taxes. i just knew it. rich edson, thank you very much, sir. food stamps for illegal immigrants. we will bring in the man who blew the whistle. he joined the zoo just a couple of minutes. ♪ stuart: wild accusations, predictions of disaster. here is my take on al gore. i do not have the tape, but the hollywood reporter was there. he said global warming is for real. it is not made up. our children and grandchildren would be justified in asking what the hell we were thinking of. what he said is not new.

but how it was reported is very interesting. the whole tone of the hollywood reporter's article was -- he said his voice was pitching higher and higher. he nearly shouted. it was almost "there he goes again." i was not expecting that. mr. gore gave his rant just as we went through the coldest early spring since 1975. snow was falling in the midwest. perhaps, he needed to shout to get his desperate message across. keith added, mr. gore, but i am not having it. i want to frack. i want to drill. you have had your day, sir. leave us alone.

♪ but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. why are 8 million people sleeping better tonight? why are 8 million people they went to a sleep number store. the only place in the world you'll find the sleep number bed. clinically proven to help each of you sleep more soundly. with dual air technology, it allows you to adjust to the support your by needs. each of your bodies. and the only place you'll find sleep professionals that will help you find a number that will change your life. your sleep number setting. you won't find any of these innovations in an ordinary mattress store.

you'll only find sep number at one of our over 400 stores nationwide. and for those who sleep too hot or too cool, now save $500 on our temperature-balancing memory foam bed set. don't just change your bed. change your life. at only one place: a sleep number store. where queen mattresses start at just $699. sleep number. comfort. individualized to find your store, visit sleepnumber.com.

stuart: a solid bounce back after yesterday's big loss. all right. let's get to the former foodstamp certification worker who exposed the corruption in the system. management, essentially, looked the other way.

he was told to throw food stamps at illegal immigrants by the van load. we have the caseworker with us right now. he joins us from florida. welcome to the program. it is good to have you with us, sir. >> good morning. stuart: if you are an illegal immigrant to america, you can get food stamps. what you are saying is your manager said give it to them. make sure they get the food stamps. is that what you are saying? >> if you do not give out as much as you can about the year before, you do not get funding. they wanted those stamps out of the door as fast and as many as they could. stuart: what is this about delivering illegals to you by the van load? >> my very first case that i got was a woman that i soon found within minutes she had received food stamps into other states. this woman was responsible for bringing in van loads of illegals into the system.

stuart: what did management tell you to do about this situation? >> they turned their head the other way. a year later she came back in for recertification. i asked why she had not been arrested. they said they could not find her. stuart: hold on a second. i have charles payne with me. charles: is there some sort of politically? these are minorities. you know, just look the other way. is there that pressure on you as well? >> i received a lot of pressure. it was strictly, you know, under the guise of helping the core. you had to move food stamps. stuart: now you are saying this. what has been the reaction? >> i have been saying it for 30 years. nobody has listened to me yet.

i turned and over 500 cases of fraud when i was there for just three years. stuart: how many of those cases were prosecuted or investigated? >> they had to hire another person to help investigate. if they were under $100, they just wrote them off. stuart: do you think that this is common in the system? >> yes. stuart: how widespread? >> it is all over. like i said, the very first case that i had, she had already picked up stamps into other states. stuart: you are talking about a lots of illegal immigrants. where other people coming in and fraudulently asking for food stamps? >> of course. it is free.

stuart: no imposition of any standards whatsoever? >> well, there are very few requirements to get the initial food stamps. as i as a worker, i took my job seriously. when i would open up a case, i would question that person and eventually they were caught lying. stuart: somebody could walk in, lie through their back teeth and get the food stamps for five years before getting kicked off by people like you? >> yes. they still are. stuart: let's say, how many illegals came through your door and got food stamps in your 30 years on the job? >> i am sorry, it was three years on the job. stuart: okay. three years.

>> it would be hard to say. at least one third of my cases at the time were self-employed. they just took their word as to what they made for verification. stuart: thank you very much for joining us, sir. appreciate it. >> you're welcome. charles: one third. this is a story that really has to be talked about. there is a huge economic argument over how much american taxpayers are obligated to pay. it is a serious event. stuart: i think it is buying votes. charles: is that why we have 14,

15, whatever the trillions of debt, i have lost track. stuart: 16.5. charles: they are going to 17 soon. stuart: i have more on this. listen to this. a new jersey cop goes on disa000 a year. then he goes on a reality tv show. he wrestles people to the ground. he is disabled. we will bring you the man that uncovers this story. that is next. ♪

for seeing your business in a whole new way. for seeing what cash is coming in and going out...

so you can understand every angle of your cash flow- last week, this month, and even next year. for seeing your business's cash flow like never before, introducing cash flow insight powered by pnc cfo. a suite of online tools that lets you turn insight into action. everybody has different ideas, goals, appetite for risk. you can't say 'one size fits all'.

it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. stuart: let's get to it. the business of travel. priceline. shares up 184% in two years. expediaup. where does all the money come from? charles: international. this is up 140%.

orbitz, which is the odd man out. that stock was down 63%. coming into the year, it is off a lot more. stuart: the proper debility -- foreigners is where we make our money. charles: that is a lot of money. there is no dow about it. let me tell you something. at the end of 2009, priceline and expedia have the same amount of bookings. i don't think they have that infrastructure that we already have filled in. why would you put landmines in

africa? stuart: charles, thank you very much, indeed. we have a case that is especially outrageous. a former police officer claimed he was traumatized by seeing dead bodies at work. he picked up they healthy pension. he started a new business. it specializes in cleaning up crime scenes. can you believe this? he is a former cop. he retires. pension. he starts cleaning up crime scenes. dead bodies. this is real? >> you cannot make this stuff

up. eighty billion-dollar pension system in new jersey and you don't have a single investigator that looks at pension fraud in new jersey. stuart: is this across-the-board ? >> well, it happens more with police. 5400 police and fire collecting $200 million a year and disability pension. stuart: that is astounding. that speaks volumes. why is it not being investigated? >> they are trying to get a block through the legislator that would set up a fraud deal. stuart: they can block this kind of thing? >> apparently so.

stuart: that is extraordinary. i want the other example. a police officer goes on disability. he gets $70,000 a year. was it a physical disability? >> he had a leg injury. stuart: which one is he on this video? >> he is the shorter guy with the black t-shirt and black shorts. he will be the guy that runs after the truck and pulls the got out of the monster truck. that is the guy. right there. stuart: he is on disability for a leg injury. $70,000 for life. >> yes. tax-free. stuart: wait a minute. what? >> it is tax-free. he never has to pay any taxes on that money. stuart: is that federal or state? >> i think it is both.

charles: 70,000. very few people think they will earn $70,000 a year pension tax-free or not. >> if you work for 25 years and retire, you earn less money than if you claim an injury in your 30s and 40s because of the tax-free difference. stuart: is that what people are doing? >> sure. sure. the first person we talked about that that person retired at age 33. this other guy who is here in the repo tape is 46 years old. a patrolman who suffered

emotional trauma because his lieutenant yelled at him during roll call. stuart: he gets out? >> yes. stuart: and he gets a pension tax-free for life? >> well, some are tax-free and some are not. stuart: what was the one about the firefighter who whirls out of bed and he is disabled? >> yes. he falls on the floor. he is on disability. stuart: this is corrupt and it is widespread. >> it would appear so. stuart: is this just new jersey? >> new jersey is the thing i focus on the most. i am sure it happens in more places. stuart: incredible. thank you very much indeed for joining us. >> the website is new jersey watchdog.org.

stuart: i live in new jersey. i am paying for it. i want to hear about it. thank you very much. >> my pleasure. stuart: is it cheaper? that story after this. ♪ friday night, buddy.

you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com.

♪ stuart: let's take a look at gas prices. a tad higher. coming in today at $3.52 a gallon. the price of oil is $91 a barrel this morning. to the housing market. the latest read on freddie mac. 3.35%. down from last week. that is a low rates. shares of yelp up big. the revenue grew. they are bringing in advertising from mobile applications. check the whole billboard. the whole world is printing money. market up. no impact on the market. the dow is up 70. back in a moment. ♪ ranch 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 instment companies." it's been that way ysince e day you met.. but your erectile dysfunction - itld be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the ment's right. you cabe more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach,

delayed backache or muscle ache. to avoid long-term injury, seek immedte medical hel for an erection lasting more tha4 hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. ♪ stuart: after the faa for low disaster earlier this month, a lot of people are wondering. can we privatize the faa? peter barnes is in washington. peter, let me be rough. you must be joking.

there is absolutely no way we will privatize the faa at any time in the last ten years. what do you say? [ laughter ] peter: stuart, this one has been circling washington waiting to land for 20 years. the bush administration try to do it also. it has gone nowhere. stuart: is there a proposal that i should know about? peter: just some cranky critics of the air traffic control system. the legislation has been introduced. stuart: it is really intriguing that you say that al gore started this 25 years ago. i thought he was a big government guy.

peter: the era of big government is over. remember? [ laughter ] stuart: i do remember. my how times have changed. peter barnes. round and round she goes. did you ever think you could hail a private jet from your cell phone? now you can. black jet launched an iphone app that lets you quickly booked a seat on a private jet. black jet ceo joins us now. >> hello, stuart. stuart: i am intrigued. it seems it is absolutely exploding. you can buy your own jet. you can part owned a jet. you can share your right. now you have a last minute get on board using an app. >> you have described a bunch of

business models that are all very expensive. the nice thing about black jet is it is the most affordable way you can actually fly on a jet. you can book a seat without booking the entire aircraft. stuart: hold on a second. i have a smart phone. i punch up the app. i say i want to fly new york to come i don't know, wherever. i want to fly out of new york this day.. >> it works very similarly to the way you have described it.

stuart: you bring together people. you get the group together. that is what your software does, in fact? >> a confirmation that your seat does, in fact? >> a confirmation that your seat is available. we do this in markets where we have it available. there are 14 routes where we guarantee these seats. though prices $3500 a seat when you are flying coast-to-coast like that. stuart: that is one way, i take

it? >> that is one way. stuart: -- >> we do allow small pets. obviously, we do allow kids as well. it is usually the small business traveler that uses this. i have a feeling you would like a lot of the people on the plane. stuart: you launched the app very recently, i believe. is that correct? >> is that correct? >> week. stuart: it seems the whole business is exploding.

>> i think any good business is based on an opportunity that exists. there are millions of people who are paying premium fares and they get stuck at the airport, like newark airport that you are talking about, they get stuck there all the time. twenty-25% of all flights have been significantly delayed or even cancel. the airlines are flying at maximum capacity. there is a real opportunity to leverage what i consider to be a national treasure. stuart: nice commercial. you had your commercial time and

you worked it very well. [ laughter ] stuart: black jet ceo. thank you for joining us. >> thank you very much, stuart. stuart: jcpenney is pleading for you to come back and shop. we will play you its apology ad after this. ♪ [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ yote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade.

it's just common sense. we asked total strgers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fe does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally.

♪ stuart: jcpenney's has a new commercial. they want you caught the customer, to note they are sorry. >> it is no secret. jcpenney's change. some changes you like and some you did not. what matters about mistakes is what we learn. we learn to listen to you. to hear what you need to make your life more beautiful. come back to jcpenney. we would love to see you. stuart: that is the first time i saw that. charles: unfortunately, with that out, though, they still

have the same people in the commercials that ron johnson will have. this is a halfway new cobol. give me something. it is a step in the right direction. stuart: all right, everybody. the highlight reel. it is next. ♪ guaranteed one-second trade execution, we route your order to up to 75 maet centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades

when you open an account [ lighter flicking ] [ male announcer ] u've reached the age where giving up isn't who you are. ♪ this is the age of knowing how to make things happen. so, why let erectile dysfunction get in your way? talk to your doctor about viagra. 20 million men already have. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to your doctor.

the wright brothers became the first in flight. [ goodall ] i think the most amazing thing isow like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪ hi. [ baby fussing ] ♪ stuart: this is a harry reid highlight reed. roll it. he says, spend more money. here comes senator baucus saying implementation is a train wreck. he says let me off the train. >> he said, unless we implement this, it's a train wreck. i agree with him. >> another gross exaggeration to

have the sequester. stuart: we must spend more. >> the mass driver of the train, sees no track, but says, speed it up, boys! stuart: best line of the day, i like. charles, we don't agree about the impact of money printing, europeans, japanese at it, but you and i, neither of us can understand how that extra money makes its way to the stock market. >> that's what i would love for someone to do. they say, hey, it's been printing. if the federal reserve buys $40 million worth of mortgage backed securities, how does it get into the market? we have to get someone on the show that gives us a step by step by step, show me, $45 million in treasury, and how does it find itself in the stock

market? stuart: connell, it's you. connell: good to see you, good morning, everybody, all day long, we have the business of travel. day long series on money spent to just get away. we also have good news today on jobs. number of americans filing new claims for jobless benefits down, lowest level since the early days of the recession so we'll talk about that, and the president headed to mexico doing so at this hour to shore up what's been a dicey relationship to some degree with the neighbor to the south. those stories and more coming up on "markets now." ♪ because of the reports, today, get involved as well, do it on twitter, we'd like you to tweet the questions and comments about the travel reports to the fox business account, and just include the