♪ and i remember what she said to me ♪ ♪ how she swore that it never would end ♪ ♪ i remember how she held me oh so tight ♪ ♪ wish i didn't know now what i didn't know then ♪ ♪ against the wind ♪ ♪ we running against the wind ♪ ♪ we were young and strong, we were running against the wind ♪ ♪ imus in the morning ♪ >> i know you've waited to see if last week's dow 15,000 would hold? here is the answer, no retreat.

when we begin your stocks will be treading water, little change, no big selloff as sometimes happens after a big rally. look on the bright side, please, the share price of countless companies remains at an all-time high. we do have some movement in oil, dangerous developments with hezbollah, israel and syria brings up the question, will oil preach reach 100 a barrel soon? that may be a question for warren buffett,'s on the show today and "varney & company" is about to begin. [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.

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>> good morning, everyone. the markets are moving and the price of oil, we've reached $96 a barrel earlier and it's moved lower now, but 95.26. there was significant upward movement in oil first thing this morning. fueling that oil rally, syria and making the situation more complicated with israel sending bombs into damascus, reportedly targeting hezbollah or missiles headed to hezbollah. d maybe we'll get oil at $100

a barrel. let's bring in larry levin, that's a talking point. do you think oil is coming at $100 a barrel? >> i think it's coming soon, but deepening resistance at charts $99, about 99 1/2 to be exact where we hit in february and there's good resistance and we kind of hit highs this morning and sold off. you see a lot of people selling or putting on short positions so that resistance holding up the market a little bit. but certainly $100 is what everybody is watching. stuart: stay there, larry, we'll bring you back as the stock market opens and want your comments on that. and we have this, too, the senate returned to work after that week long break. the first item on the agenda, what do you think it is? well, they're going to pass an internet tax, but so what? won't the house shred it? a democrat will join us on that subject in a moment and warren buffett sits down with liz claman in omaha, that and the opening bell, wall street, next.

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>> so, you're in the stock market, you own a couple of stocks and were you watching on friday when that dow crashed above 15,000 for the first time ever and this monday morning, you're thinking, wait a minute, are we now going to have a

selloff. am i in trouble and sell now? the answer to your questions, as of 40-- 40 seconds from now, the market will open flat to slightly higher, so no big selloff. i want to bring back larry levin, he joins us from chicago on a regular basis, no big pullback today, larry? >> no, not so far, stuart. like you said the spf's are going to open a point or so higher, 1615 the high point we saw last week and only 4 points away from it and i think that is in play and we'll get the 1650's for another 5 or 6 points higher before we see a pullback. >> even though we've gone this way up, we're going to say that ben is printing money and the economy is strengthening and not too much. the stock is then printing money, still the best of both worlds? >> seems that way, right? if we get any bad economic data, that's the first thing talked about is ben continuing to print and if the economic data is good, the market is higher and can't lose.

and hope it keeps going that way. >> let's have a nice monday morning, think for joining us as always. >> and ten seconds until that bell and looking at the indicators and a gain of 5, of 6, 7 points on the opening bell. and we closed out last friday, at 14,973. we were up in that one-week period and the upside of move started again, and let me see, down a half point and let's see how things work out. we should be up a few points, but no big selloff. got it. >> let's bring in lauren, she's on the floor of the exchange, we've got news on pfizer, selling viagra on-line, go. >> with a doctor's prescription, starting today, you can buy viagra on-line on pfizer's website. the stock is down just about 1/2 a percent on this news. they're giving a discount, stuart. it's typically $25 until you get three free with your first order. with your second order you get some off and the theory is lots

of men are embarrassed to go to the pharmacy and they usually buy them counterfeited on-line and they say that viagra is the most counterfeited. stuart: you put your finger on the story of the day. viagra on-line from pfizer. the dow is now down 9 points, at the very, very early going. and thought it was going up 9, but it's not, it's down 8. i can say firmly, a dead flat open. a senate vote today and probably yes on an internet sales tax. joining us now is senator ben cardin from maryland, good morning, senator. i'm told if you were to raise the exemption to let small businesses off the hook for collecting this tax, it would sail through the house as well as the senate. would you be prepared to raise that small exemption level so to keep the small businesses okay?

>> a million dollars you're exempt from having to collect the sales tax, there's no new sales tax, they're sales taxes due in our state and trying to establish a level playing field. we thought the million dollars made sense if you're selling more than a million on the internet, that you're not a casual seller and that's something we'll of course talk about. >> it is, i hesitate to say up for grabs, but there's some conservatives he quoted in the media who would support this internet sales tax or the enforcement of it, if you raise that exemption. so, are you telling us that maybe you could see your way to raising it above a million? >> well, we're going to get over 70 votes that supported this in the united states senate. that's a pretty overwhelming number and we want to make sure that we don't create a loophole that will defeat the main purpose of the bill, but i know that the supporters of this legislation, including myself have been always willing to talk

to individuals who have concern this concern. >> okay, so i'm reading that as, yeah, you'll pass it with 70 votes in the senate and it goes to the house and it may pass the house if there's an agreement on the exemption, is that the way you see it, sir? >> well, i think there's support to pass this bill. we have democrats and republicans that are supporting it. we have governors throughout the country from both states cold by democrats and republicans say, look, we need to control our sales tax and this is about keeping it low. helping small businesses and it makes sense to get this done. >> okay, and there's one big objection that a lot of people have here and that is, a business will now have to collect sales taxes from about 9,000 different jurisdictions and they've got to get it right. and that is something of a burden on businesses, especially those million, 2 million, 3 million a year, right? >> well, there are several

provisions in the bill to ease that. first, the state has to subscribe to a uniform application of the sales tax and secondly the cost of compliance is with the state, not with the retailer, so, there are protections in here to protect all businesses and the software package will are available and that's all that's required. >> a lot of our viewers want to know are we going to get an internet sales tax? and i think you're saying, yes, we are, would you say you're 90% sure you're going to get that. at the end of the day when it's all settled, do you think we'll get it? >> i think it's done. it's not a new tax, this tax is due. the individual has to pay it on a use tax on their tax returns or if the retailer has a bricks and mortar, physical presence in the state. they currently have to collect it. >> would you pay it, sir? everybody was supposed to pay it, do you? >> let me tell you something, i usually buy my merchandise in my

local stores, you're correct, you see a smile on my face. stuart: thank you very much, a pleasure. thank you for joining us. much obliged. >> thank you. stuart: now it's time to go to omaha, nebraska, here is liz claman with warren buffett. liz, it's yours. >> thank you so much, stuart. you know what? this is the 6th year that warren buffett has sat down in his lobby at keywood plaza in omaha, nebraska to do this interview with fox business and we welcome you, warren just after your shareholder weekend, thank you for being here. >> i'm delighted to be here liz: one thing we're doing differently. we let our viewers know. you're supportive of business schools, not only move in our international audience because we've got people in australia watching everywhere all over the nation, but we have looped in via satellite three different top business schools so they can listen in and listen to what you're saying, but also ask you questions, we want to welcome some of the business schools around the nation.

let's give a shout out to georgetown's mcdonough school of business first. >> hi. >> they're waving to you, everybody is exexcited here from georgetown. [applause]. they're excited and your alma mater, columbia business school right there in new york city is standing by, let's hear it for columbia. >> hi, columbia liz: they're excited to see you. a star alum. and wake forest down in charlotte, north carolina, hello to wake forest, thanks for getting up early with us, all of you guys and we appreciate it. >> hi, wake forest liz: they're going to be listening because we know that the young people coming out of business schools always have an interesting perspective of what's happening, let's first get to the meeting and ask this, this is your first question. number one, your stock. let's take a look at berkshire hathaway stock right now. the market opened a few minutes ago and it's trading at an all-time high. last check it's up 2 1/2% for

the a-shares and the b-shares are also hitting an all-time high. what do you think about that? >> well, i'm glad to have the news. we are having a pretty good year so far and we reported our earnings after the close on friday, so this is the probably the reaction to that. >> let me get to you report some numbers from the weekend. number one, was it a record breaking number of shareholders attending? >> we think so, you can never get an accurate count because people come and go, but the indications from the overflow room, business week and everything, i'm quite sure we had a record liz: of all the businesses because you're the only company ceo, the only company that actually makes money off the shareholder weekend because you share the wares of your companies, which companies surprised you the most. >> i haven't gotten in all the figures yet, but the furniture score in one week is going to do 40 million dollars and if any of

you are running the furniture stores, 8.3 million on saturday, but all of our business, we sold more geico policies and sold more of everything liz: and that's the nebraska furniture mart so you know. and geico will do a million policies this year. >> i'm sure, a million gain in policies out of a basin 11 million-4. so i think we'll grab a lot of market share this year liz: so fair to say that business is pretty good. >> it looks that way liz: i reach back to 1957 when were you knocking on doors of friends and family, asking people to give you money to start your partnership, did you ever imagine that berkshire hathaway, and you announced this weekend, would be the fifth largest business in the united states, behind exxonmobil, apple, google, microsoft? >> no. we just kept putting one foot in front of the other and to get a long enough runway, you know, it

just keeps compounding, but i did not expect it. >> speaking of compounding. the omaha world herald, they did some math and listen to this, guys, $20,000 invested in 1969 in berkshire hathaway and warren buffett would equal 75 million today? is that about right or you thought it was more? >> how many dollars? >> 20,000. >> $20,000 would have bought 500 shares of the a-stock liz: so that would be about it. and people whom you asked to invest and they didn't back then. when you're requesting people to take a chance on you, as the little guy, did you get disappointed, scared, worried, when people said no? how many people turned you down. >> oh, more people did not -- i didn't go quite door-to-door, but let them know i was open for business. but way more people would turn me down, but i don't blame them. i was 25 years old, i probably behaved about like a 18-year-old. no, it's not surprising, but

some people did have faith and some of those people are still around. i saw a woman at the jewelry store more than 50 years ago. >> how many shares did she buy back then. >> she's done all right liz: just fine. >> she bought a lot of jewelry yesterday liz: and this is something that no other company does. you take five and a half hours of questions and you traversed the floor, this is the first year i've felt claustrophobic, we're there in the media crush and walking along and hitting all of your businesses and people are trying to snap cell phone pictures of you, and opened the floor earlier, and your security there, you never get concerned or nervous in those crowds? >> no, no, it's fun for me. i love to see the shareholders and they call me warren. it's very enjoyable liz: of all the things you've played the ukulele and ridden on a steer and this year you did

something different. i don't know if people saw this, we wanted to show them, you twirled a basketball with the harlem basketball globe trotter named franklin. >> got a little help liz: he helped you a little there. look at that. did you ever play ball in high school. >> very poorly. they were in town and i had a good time with them and they have a guy that's 7 foot 8 named tiny liz: what was your name be. >> i don't know, probably terrible liz: i look at that and say were you ever ever an athlete. >> no, no, always liked sports, but i was never any good liz: you had strength in other things. let's get to the seriousness of what do you at the shareholder meeting and you took about 5 1/2 hours of shareholder questions and this time, you did something different as well, you invited short seller past the sea breeze partners. i was talking to shareholders, i know the intent was to ask him--

for him to ask tough questions. and i talked to shareholders, they felt you talked around him. >> i'm a little prejudice, but i don't know they had a case and that's a difficult assignment and here he is with 37, 38,000 people who are long the stock, we put him in had a difficult situation and you know, i think he -- it wouldn't be easy for him, but we invited him, he was an invited guest liz: will you have another short seller next year? >> i think so. we always get a lot of reaction from shareholders and they tell us what they'd like change. >> would it be doug catz? >> i don't know. >> the fact that you didn't say yes. but every year a story, a greek flash-crash, the financial crisis, something like the housing implosion. this year, it feels like four

things at once. the boston marathon bombings, the hacking that some people believe is going on from the chinese. north korea making all kinds of threats and of course, the dow and the s&p hitting all time records and washington d.c. is in a bit of disarray. how could the weekend gridlock be eliminated in d.c.? >> i don't know the answer on that, ut, eventually, we will-- right now, we have this situation where people are focusing on primary, overwhelmingly, and that drives them to the right and left and makes them nor intractable. but in the end, 535 people cannot form the desires of 315 million. we'll get past it. i can't tell you exactly how it will happen, but we've had worse things happen in this country liz: this is not our nation's worst hour? >> no, this is a country that has had a civil war liz: nobody asked you during the

meeting or after about the sequester. the sequester was at least trying to get washington to cut spending. and they were talking about the f.a.a. and what did you make of that? >> it was put in motion, and essentially congress said we're going to do something -- we're going to put the prospect of doing something in that's so dumb that we can't possibly, let it happen and of course, they let it happen. and it was designed in an intentionally dumb way of on the theory that it was unthinkable and they did the unthinkable. so, now, they're -- the rewards of that, you know, it's crazy, the way that-- >> well, if they can't cut that small percentage, what does that say for the future of us figuring out a way to cut spending? >> oh, they can cut some spending, but this was done with a meat ax and everything done almost intentionally in a stupid way because they thought if we make it stupid enough they won't

do tyou saw what happened. >> let's get to a bunch of records calling for the stock market. we have a strong investor audience here. >> is it realistic to think that the stock market will go higher and higher. >> the stock market over time will go higher and higher, i can say that for sure. i don't know what it will do next week, next month or next year, but i he certainly know over time. it will go higher. >> did the p.e. ratios still entice you at these levels or too rich? >> they're rich in some cases, but overall we find things to buy. >> you have to look a little bit harder in a way, don't you? >> well, sure, the higher-- you know, the stock market was far more attractive three or four years ago. >> do you still read hard copy shareholder annual reports? how do you decide? >> well, that's-- i get hundreds of them and i like getting them and i can read them very quickly, but there's some that take me at least maybe even two hours to read. and some i read very carefully. >> we've got the federal

reserve's on everybody's mind and columbia university has a question for you, warren. look in the camera, go ahead, columbia. >> good morning, mr. buffett. i'm jennifer, an mba student from columbia business school. my question is how is your investment strategy and the performances of your businesses affected by a prolonged low interest rate environment and how are you positioning now for interest rates to increase or remain low? >> yeah, you know because eventually they're going to tighten. >> eventually, jennifer, interest rates are going to go up and i don't know when that will happen and certainly, low interest rates have helped our business, they've helped the economy, they've hurt savers who are relying on fixed income type investments, i think overall, the policy has been sound and there's no question that berkshire hathaway is better off today and the american people

are better off today because of the actions of ben bernanke and keeping interest rates so low. it won't go on forever, it's going to be very interesting when the first signal comes out that they're going to advance liz: are you changing anything at berkshire and the policies there as jennifer asked? >> when we borrow money, we're thinking in terms of long terms, we don't borrow, i rarely borrow money and our utility business borrows money, and railway borrows money, but we're doing maturities-- anybody who is borrowing money borrow for a long time. if you ever want a mortgage, today is the day to get a mortgage liz: thank you, jennifer. that gives me a before segue to the mortgage deduction. there's talk of scaling it back or eliminating it and people say that's a way to wrap our arms around some of our tax problems.

>> i think it's unlikely. if it did, it would be a big tax package, you with your housing interest from benjamin moore paint, are you part of the silent lobby? >> we wouldn't lobby on something like that at all. the question is you get a whole package that encompasses that and if you eliminate deductions perhaps you'd have lower rates, for example. but you have to look at the package that finally gets introduced. >> would you think that it might derail the housing recovery? >> it would depend what it was. if you had lower tax rates, but elimit nated the interest deduction. you have more than one variable affecting. what do you think of the good old single family dwelling as an investment these days. i said a year ago i thought it was a very good investment for people that knew they were going to live this that local for a

considerable period of time, found a house i told them to take out a very, very long-term mortgage and say the same thing, not quite as attractive as a year ago, but still an attractive holding, but only if you're going to keep it for a long time liz: in part because of what the fed has done and kept the low interest rates. but is the fed continuing on this easy plan at their own peril? at some point, with gdp looking at 2.5%, still very slow, but at least its growth. how long can they continue this large scale asset purchase plan or should they? >> i don't know the answer to that. i do know that it surprised me how long we've done it already and it's had no inflationary effect and i would expect that -- i've been -- i've been wrong on expecting inflation for a long time, but i would say if you keep building the fed's balance sheet and building the

recei reserves of banks. a, how do you reverse that and b, it has consequences down the road. maybe you've been wrong. >> maybe it's ben bernanke's problem, but at the meeting, he might pass the baton for the next guy to deal with it. >> keep the baton liz: as i look at the issues that your company has to look at, what will be the number one issue that your board is talking about today? i want to let our viewers know that right after mr. buffett and the group that we're going to have here leaves, they have a board meeting and there's number one issue to discuss. >> we always discuss succession and that's a main issue and we want to have and do have and meet and talk about it again today, but we have 100% agreement on who should take over berkshire if i die tonight. and we've got multiple people that could do the job and the number one candidate is a unanimous choice, but we'll talk about that subject. we have got a new member of the board this year, and she will be part of that discussion, and--

>> he just outed our mystery guest. mara whitmer, her first interview as a new board member and one of the questions at the shareholder meeting, is it ajeet jane and you call him out so many times and saying he's brilliant. and you didn't say it was. >> we didn't say if it was anybody else, it's know the a subject we discuss publicly and i mentioned at the meeting, we've got 50 billion dollars invested in four companies, wells fargo, american express, ibm and coca-cola. i don't know who the next ceo of any of those companies is going to be and i never have known liz: there you are. we'll ask the board member, bill gates is is coming in, one of the esteemed board members of

berkshire hathaway. hey, bill, you sit on warren's board, but he doesn't sit on microsoft's board. now he's laughing. why not? >> warren's time is very valuable and we're a technology company, so, it might not be his favorite activity trying to guess where things are going in technology. >> i would not be worth the director's fee liz: exactly. basically what you're saying, he's not somebody who would add to sort of the technological cognizance that's there? >> and i don't think he'd choose to spend time on it or aspects of it that don't play it his deep, deep strengths. >> wow. the answer is i'm not qualified. [laughter] >> one of the things he announced was that berkshire is the fifth largest behind exxonmobil, exxon, apple, one of your companies. and do you believe it's possible

berkshire could, the way it's going, take on the size of microsoft? >> valuations have been jumping up and down quite a bit. berkshire is growing because it retains its earnings and buys attractive businesses. and so, i think that valuation is headed up. and i think it's at a great company. tech companies tend to have variance, they can go up faster and down a lot faster. >> does it make me nervous, right now we got the check that berkshire's markets cap is 12 billion behind yours, can you hear the breath on your neck now? >> you have to bear in mind microsoft is paying significant amounts on dividends. berkshire is retaining virtually everything. so it's not apples to apples, if you excuse the expression. [laughter] when you talk about the businesses that he buys. newspapers has been his latest interest, regional and local

newspapers. by the way, the newspaper talk contest you were both newspaper delivery boys back then. it looked like a tie to he me. you guys took several attempts at each throw. i think i hit the first. but you hit the second and third? >> let's call it a tie and everybody will be happy then. >> it was a bit disappointing. i think we have room for improvement next year. >> we definitely do liz: bill, you looked sort of serious and anxious and what's the with the ringer, supermodel kathy ireland you brought in. >> she's good. >> she started as a newspaper carrier and she started in santa barbara. she started her business career as a newspaper carrier liz: kids start as a newspaper carrier and you'll end up like one of these guys. >> or kathy ireland. >> hard to predict which liz: you know, you look at the newspaper business and did you think that was a good idea to get into at a time where everybody said newspapers were dying, when it was brought up or was it brought up at the board

meeting, bill? >> well, we always get a chance to talk about the new things berkshire is doing and whenever anybody is is getting out of something, it's certainly worth considering whether the price might make it attractive, particularly if you have a theory about how to manage things as well as it's been done in buffalo. and warren's got a good manager, and stan did a great job there, but he's got others now who would get involved if new papers get acquired so you're taking advantage of those strong managers. >> the newspapers you like because of their local impact. warren, are you considering buying local radio stations or local tv stations? >> no. >> not at all? >> no, i've got a special place in my heart for newspapers. they're the not going to be -- they're not going to grow in value, look, we've bought them at reasonable prices and we will get a decent return on our money, but they're not going to

move the needle at berkshire. >> i always ask you about washington post, you're not sitting on the board. do you feel happy about the way-- >> and graham has done a great job, sure, but the trends are against, and in my view, the trends are more the adverse with a really big metropolitan papers, so, we're -- we're in -- a in decent sized communities, but not the metropolis. >> it's near 52-week highs, should they spin off? i know everybody talks about that. >> i'm not big on spin-offs generally. if you bring them into the fold for a reason, unless there are recent changes in some dramatic way, why spin them off. >> from newspapers to pc's bill, i have an opportunity to sit here and talk to you about electronics and all going on. what do you find yourself using the most these days, a pc, a laptop, a tablet or a smart phone. which do you use the most? >> well, i have my surface pro,

because it gives you the benefits of a tablet and the pc. it's got the keyboard, it's thin, it's portable, it does everything you'd like from a tablet in terms of the battery length, so, you know, i'm biased, but that's a showcase machine for windows 8. well, because a year ago, were you using the galaxy samsung? >> no, i've been a big users of laptops because i'm just a huge e-mail user, i tend to be on the keyboard a lot. this year it's the surface pro for sure liz: still not you, warren. >> i'm a pc guy. >> right liz: which one? who makes it. >> i got it at the furniture mart, hewlett-packard, running on windows liz: it's a little heavy these days, the dark side-- >> do i go to the dark ide there. and brings us to this, bill, you're used to iconic companies, where a leader is no longer

there. and you look at apple right now, everybody says, oh, it will be fine without steve jobs, the apple stock has plummeted pretty considerably, it's no longer the most highly valued company, you know, it was at the top for a moment there. do you think it deserves to be back there at some point? do you think it gets there at some point? >> it's still a valuable company and it's doing great work. the field is very competitive. tech stocks, you know, anybody who thinks they know where tech is going to be in ten years is -- there's a high risk that they might be missing something. so, you know, i can't talk about the price in the past. you've got-- >> it was higher when steve jobs ran it, you can see that certain certainly. >> yeah, actually i think it reached a peak after, but you know, the stock market is going to bounce around a lot. the competitive dynamic is in the tablet space they've been very strong and now you've got

people like microsoft and samsung with their products and so the competition is heating up and we all just have to surprise people with our new work. >> i wonder if warren he's on a pc, is that the time-- you look at the pc numbers and they don't look healthy these days, and does it go by way of the typewriter. >> the distinction between the pc and the tablet is going away and the market is a gigantic market. windows 8 was designed to get microsoft to give you the best of both. so we'll have to see you know, so far that looks good, but absolutely, people want the small size and portability and they don't want to give up the ability to use microsoft office and have the keyboard so we're trying to give them all the things in one product. >> do you use a tablet now, warren. >> no, but i do find the computer useful. >> finally. >> and i've been doing it a long time. once bill got me playing bridge

on it. i find the search and things, and no, it changed my life for the better, in a huge way. >> well, i just, i ask about the pc because, you know, larry flynt of hustler said that the magazine hustler won't exist in two years because of the way things are doing, very unsentimental about it even though it made him hundreds of millions of dollars and he looks at that landscape and says that's because the way it is and yet, i keep hearing-- >> and bill would be the expert on hustler. >> i think that liz is more up-to-date liz: having just been there and interviewing penthouse and hustler, we were doing the business of vice investment. >> i don't work on part of that series liz: speaking of sex and vice actually. >> good. [laughter] so, bill and belinda gates

foundation put it out there to create a better condom. have you had any good suggestions yet? >> that challenge went out. when we asked for a better toilet, a better way to get vaccines out to poor people it's been amazing the scientists that come up with ideas. they often don't know what the challenges for the poorest are, yet, they'd like to help out with those things, so would we've been able to facilitate a lot more iq coming into the hard problems liz: a better condom, warren, what do you think about that? >> it's too late. [laughter] i want to get to hacking because we have this opportunity to talk to somebody who would know about that. this has become a very discuss issue. have you writing insurance policies for companies that want to protect themselves against hacking? >> i don't think so we are. it's conceivable that sort could be developed, but i think it's hard to find and figuring the

damages and all that, but i don't know of any policies that anybody's writing on that, but i may not be up-to-date on that liz: bill, this is serious. has microsoft been asked by the government to try and help solve this problem? you guys are among the smartest in the room. >> well, the security issue in technology has been a big deal for a number of years. one of my memos when i was still full-time was about the security needs and it's great that everybody's paying so much attention to this because all of your information is there digitally and seeing how to organize your network in a very careful fashion. >> we have georgetown university business school, mcdonough business school and standing by and they have a question for you, georgetown, go ahead with your question, you're wibill gas and warren buffett. >> good morning mr. gates. i'm a student at georgetown's mcdonough school of business. my question for you, is what is

the greatest global challenge in the next ten years and what can this generation of young business leaders do to solve that problem? >> well, my advice is that the poorest 2 billion in the world out of the 7 billion have not shared in the riches and innovation that we all kind of take for granted and so, i think it's critical, whether it's getting them new vaccines or better seeds for agriculture, that we a little bit, put more energy into that because we can uplift them for such install amounts of money and get them to be self-sufficient and get the economies to be table. and i hope that the younger generation starts at an earlier age than i did big about these things, whether it's full-time work or part-time. or even volunteer activity.

there's so much that can be done. >> bill, warren, what do you think? >> well, when bill talks about full-time, he means full-time. and bill, bill is putting in a back-breaking schedule around the world in terms of attacking these problems and i really, i salute him for that and he's done a great job. also, of enlisting government's aid in the endeavor. so when you've got people like bill working at it. that's great for humanity. >> that's why we've given the challange to them. wake forest is coming up. and let's get to undergrad and both of you have been interested in education, but, bill, looking at what's going on in the landscape right now, what is your best advice to parents who right now are struggling very hard to help their kids, a, to decide what college to send their kids to, and b, how to pay for it?

it's a huge issue. >> yeah, there's a great book called "why college costs so much" that goes through some of these trends and how they might change in the future. state schools are still quite reasonably priced and so, if that's a fit for you, you know, you can get a great four-year degree from a state college. it's unfortunate a lot of people aren't able to go to the private college because the tuition has gotten so high. we need to make education more affordable because we want more people to have that degree, certificate, the wage differentials have gotten very high. technology is promising in raising effectiveness, but we're in the early stage of moving that out. it's a big area for our foundation and in trying out the on-line approaches. >> on-line approaches to university and that wasn't an existence when you went to school, but you're also very supportive of public education and the role it plays and your entire family went through the

public schools in omaha. is the answer more money for public schools, warren? >> well, it's probably smarter money liz: smarter money? >> yes, for both public schools and a variety of innovation coming into education. we're spending a lot of money on education and we've probably -- we probably aren't getting your dollar liz: your dollar or your bitcoin. i can't wait to hear what charlie has to say about that. we're bringing in charlie munger, good morning. >> good morning liz: i want your thought on bitcoin, the digital currency, people say it might be the next big thing. what do you think? >> i think it's rat poison. [laughter] >> put him down as undecided

liz: do you understand what they're trying to do with it? >> no, but i record it as deeply flaky liz: what do you think, bill? >> it's a techno tour deforce. that's where the government is going to retain a dominant role liz: warren? >> i think that either bill or charlie is right liz: one thing i noticed at the meeting, you and warren disagreed on a couple of issues, but the one that struck me the most was the corporate tax rates. warren feels that corporations should be taxed more, they have the money. you say no. why? >> well, i think it's a disadvantage to have your tax rate less than the tax rate elsewhere in the world and so, i don't think we're in total control over our own tax rates, meaning, i think it would be crazy to have a tax rate in the united states 50% and have it 20% generally throughout the rest of the world

liz: do you think-- >> and i'm all for higher taxes, but should be on individuals and consumption and so on. i don't think we -- i like a low corporate tax rate. >> do you think it should be considerably lower than what it is now? >> no, no. >> just slightly? >> somewhat, yes. >> somewhat slightly. warren, you disagree? >> yeah, i think that -- incidentally, charlie and i have disagreed on a lots of things, and we've never had an argument in over 50 years, but we do disagree some, and u.s. taxes are-- corporate taxes are 1.7, 1.8%, that's gdp. frequently, i mean, go back some years, this were 4% and they were doing-- businesses were doing extraordinarily well and since we have to raise the money from someplace and i see these returns on equity and business compared to interest rates being

incredible levels. i just think that if you're looking for who to tax more, i think that corporations should be part of that liz: the banks sure have loaned about-- how they feel they're he overtacked and overregulated and you disagree on that a little bit. you feel on the entire banking issues that banks look healthier now days and you feel very comfortable about your investments in wells u.s. bancorp as well. but charlie, you're less optimistic in the long-term about banks. what worries you? >> i think too many bankers go crazy. and there is too much damage that happens so i'm for more bank regulation, not less. >> what form should it take? >> i would deny their ability to have huge derivative books and all kinds of things. >> do you think the derivatives are still too large a position

on some of their books? >> sure. >> how do you recognizance regulate something like that? >> well, if you let me do it, it would take about a week. [laughter] what's lacking is the will, not the power liz: let's talk quickly about the fed. you had a great quote during the shareholder meeting where you said that back during the first bubble, alan greenspan, instead of taking the punch bowl away before people got totally drunk, they increased the alcohol proof. >> i think so that's right. and to his credit-- >> what are we doing? is there a punch bowl? is the alcohol proof too heavy? >> as i said, if you're not confused by what's happening now, you don't understand it. even the people in the economics are confused. >> we're sort of in uncharted

waters. we had a huge, huge problem, so, it undoubtedly required a lot of medicine, but we've not yet seen medicine like this and then the after effects. >> a little agreement over the weekend was climate change, i want your viewers to know we have three smart guys here, bill, you are a harvard drop-out. warren, you're a harvard reject. and you're happy to point that out. and charlie, you're a cal tech-trained meteorologist. let me start with you then. is climate change a reality? is it really happening? there are people on both sides here that disagree. >> i think the evidence is pretty clear that there's some global warming. exactly what the long-term effects are going to be on climate is a more complicated question and the answer is less sure. there has been some global warming caused by man. >> warren? >> i have nothing to add, as

charlie would say liz: charlie says i have nothing to add. and bill, you have investments in alternative energy, what do you think? >> well, it's a very serious problem. it's going to hurt the poorest in the world who have done very little to cause it. you know, there are farmers and there will be more drought, there will be more severe weather. and so, this is something we've got to get serious about, changing our energy system so that it's not putting out so much co 2 liz: well, then we get to something that is a different kind of liquid than gasoline or oil or whatever people believe is causing some type of global warming and that's coca-cola. i have to ask you, because throughout the meeting, not only do you both drink a lot of coca-cola, i believe you drink diet, right, charlie. >> yes liz: you're full strength. what do you drink, bill? >> diet liz: then you're sitting there eating peanut brittle. there are 240 grams of sugar in

this. you stuck up for the sugar you're drinking. what do you guys as coca-cola's shareholders think about mayor bloomberg of new york, trying to ban large sodas. >> 16 ounces of coca-cola has roughly 200 calories in it. and all kinds of things have more than 200 calories. i don't see why one product should be be picked out. i mean, actually i've already had some ice cream today liz: a little early. but i eat fudge, eat hamburgers, french fries. real key is how many calories you eat in a day and soft drinks are not unusually calorie intensive. i mean, like you say, 16 ounces, 200 calories and i don't know what anybody had for dessert lunch time. >> charlie, do you he see any side of what mayor bloomberg is trying to do as valid? >> well, i wouldn't intervene

in-- if i had the power and coca-cola. i think that warren's cognition has actually been improved by his consumption of coca-cola. he force-feeds it to me, actually. no, he skips the last two months drooling in a nursing home, i don't think that's a big tragedy. [laughter] >> well, i think somebody here is going to realize there's a soda fountain in your office with coca-cola. and she's the brand new board member of berkshire hathaway, and merrill whitmer is joining us. >> thank you liz: you were just voted in and thank you for speaking to fox business. this is the first a lot of shareholders and viewers are getting to see you. what did you think when warren buffett first asked you to join the board? >> well, it was very exciting as

you can well imagine, and of course, you worry that you are not going to be qualified or do a good job, so he we talked about that a little. what he wanted, what he's looking for liz: what does he want. >> warren convince immediate actually so that was fine. i think he wants someone who is a good it -- has high integrity, is a good capital allocator and who understands management and business, and i think the thing about berkshire is warren's created a beautiful company and you have to -- and given people a lot of autonomy and great people who work in a lot of place who have a lot of autonomy and warren wanted that and i wanted that and i understand that, and knowing management and i think that, that's a really important trade on anyone who comes onto the the board. >> warren, why merrill whitmer. >> she's smart and business savvy and share older oriented which we look for, she's got a

strong interest in berkshire which we look for, and she's joined todd colmes who works with us, on companies, i've known her, her ideas and investments over time. she brings the qualities of berkshire that we're looking for, we're not looking for some name that's recognizable. we're looking for somebody who is smart about business and cares about the shareholders and particularly cares about berkshire. >> charlie, what does meryl or any berkshire shareholder have to have as part of their makeup to be sitting on this board? >> well, if we like the orientation and people who think like owners and if you look at the board you'll find a lot of the people are rich around-- and we're not losing in that department when we take on a rich woman like meryl.

>> she's successfully managed money for a long time and i know not only the record. i know how the wrorecord was achieved and that makes a difference liz: warren says the number one mission of the woboard has to b succession. have you thought about the time? >> i have, and i hope we have a long time to go with warren and charlie. i've met a lot of the management and i think that berkshire has a very deep bench liz: have you met all 17-plus business managers? >> not yet. >> i'm not sure i have. [laughter] liz: what strikes you about them? i mean, everybody talks about the management at mid-american energy, burlington northern, ajit jane at the insurance company, there are so many people who works at the condition and what strikes you

about then. >> they're smart, happy and love being a part of berkshire absolutely. they feel a loyalty and a kinship to the condition, they're where they want to be and they like the autonomy. warren is terrific about that liz: you don't meet with them much, do you? >> no, they-- and atrose, he doesn't need anything from me, i could learn from him. we hire people or associated with them who are batting .400 in their arena and it would be crazy for me to tell them, you know, why don't you hold the bat differently or stand deeper in the box or whatever it might bb. we're very, very fortunate to have the managers that we have liz: that's what strikes people a little strange what's happening with heinz. you did the heinz deal with 3-g capital partners and bill johnson, of course, ran that company heinz for so long, did beautifully at it and now he's

been-- let's call it what it is, he's not staying, he's been asked to leave and he told me he's disappointed. that's interesting, because normally you could keep the very person at the top that brought you to the dance. >> well, we join, we joined with 3g and they are the managing partners, we're financial partners and if we can help in some or way, that's fine. we're basically the financial partner and we think that 3g is outstanding, we would love to join them in other enterprises as well liz: charlie, do you think at some point 3g is going to take heinz public again, once it's been private? because that's what private equity guys do. >> they're not normal private equity, not big flippers liz: they flipped burger king. >> they still own it, but i would say this-- >> but after being public, i

meant. >> they have their own money. they're the not there to make an override with other people, they're there to make money with their own money and i would be surprised with georgi sells a share of heinz liz: bill, you get to advise meryl, and i'm sure she'd like to know, when you make a statement, do anybody challenge it. >> a lot of brilliant people are on the board and a lot of them have been ceo's and there's not a lack of willingness to challenge things. certainly, i do my share of that. and so, it's lively liz: are you ready to challenge warren and charlie, meryl. >> one thing about me, despite being a woman, i've never been afraid to challenge anyone in business. >> that's true liz: she's the third behind

charlotte diamond and decker-- >> and it's not a stuffy boardroom. i've been on some stuffy boards, this is a different things. this is a group of owners getting together to talk about their business liz: well-- >> and it's an intellectual question, it's not a, to the person. you know, it's an idea. we're talking about ideas. so, the challenge is to do the best for berkshire. >> and consult board members when he makes a company purchase or a stock purchase. >> warren? i think he's done a great job liz: you're fine with that. >> i'm fine with that liz: we have a question from wake forest business school. we have all of these business schools joining us today. wake forest, join us with your question. >> thank you, my name is alex sturgis from the ma program at wake forest school of business. i'd like to know what keeps you

motivated. what keeps you coming into the office every day? >> it's a great question. and i'm 82 and i'm getting social security and i don't need the money, but i'm doing what i love the most in life. i always advise students as much as possible to try and find the job they would have if they were independently rich and i've found that job and to me, it's, it's absolutely fascinating. i work with people i love. i get to paint my own painting at the office. there's no better job in the world. it's true i could be doing all kinds of other things, but i would so much rather be coming to the office every day than sitting on a yacht. no comparison. >> we love that our business schools were all involved in this, georgetown, mcdonough, wake forest, and i want to ask you, charlie, what keeps you motivated? you're 89. >> yes, and i think warren is somewhat understated the

advantage of being in our position. i think we're two of the luckiest people alive. >> we are. >> who wants to sit and do nothing? >> yeah, i know people that are retired, they spend all week planning their next hair cut, that's not fun liz: look at you, bill, not even in retirement, you seem to be working harder than ever with the foundation, solving infectious disease problems? >> yeah, i've got a second career that's fun and lets me travel the world and meet great scientists. i'm enjoying it so i work very long hours liz: and you tweet a l lot @billgates. it's been effective for you. and warren you started tweeting @warrenbuffet. you don't follow people. you're not following bill gates? >> i have a direct pipeline there liz: charlie, what do you think

of warren tweeting now? >> i think it's fine for warren, but i'm never going to tweet. [laughter] when he says never, he means never liz: meryl, do you tweet? >> do i not liz: but your family. they're here and they must be proud. >> they are proud and that's a good feeling as a parent. but the tweeting i will not be doing. there's a lot of room for error there liz: as we finish up, warren. meryl, she's a woman and you wrote about the strength of women in our society in fortune magazine. what's the message you want to send when hall is said and done about that? i mean, here she's a working mom. and i look at her, i admire her, i'm a working mom. there really is something to be said about contributing out there, so why do we need to actually force it along? >> well, we largely wasted half of our talent in this country for a long, long time and part

of it was a big, well, it was affected by structural arrangements and you know, we talked about all men being created equal and kind of slipped our minds for another 150 years or so until the 19th amendment was passed and even then it didn't change that much. so, it would be crazy, but let's just say that all males, but ten and under only going to be in three or four jobs like we said to women not that long ago. that would be nutty. and it's just gone on long enough. we've changed the rules a little bit and so the opportunities are opening up and i also wanted to encourage women not to have any self-imposed limitations. everybody should have a chance to fulfill their own potential and i think, i think women got the short end of the stick for a long time and i think that the world was changing, but i wanted to keep it changing

liz: charlie, you agree? >> sure liz: you've got to know. charles: guys, this is exactly the dynamic that's kept this pi partnership growing and now the fifth largest company in the world, berkshire hathaway, they have got a board meeting. warren buffett, charlie monger, meryl-- congratulations on the board and bill gates. i'll send it back to you. stuart: thanks indeed. let's update the markets, we have a moment ago, we had a turn around, we've been down 20 or 30 points and suddenly we went up pa point and now we're back down 8 and i'm going to say this market is dead flat after the rally last week. let me see the price of gold and fill you in on the other markets. gold up $3, and again i'm calling that dead flat. the price of oil earlier today got pretty close to $100 a

barrel. it was 96. it's backed way off that as of right now. keith fitz-gerald is with me and knows a thing or two about stocks, welcome back. >> thanks. stuart: last week, dow went straight up and crosses 15,000. everybody is tuning in, all right, are we going to have a pullback, is this the moment where we pullback? what do you say? >> we are i don't think so. 73%-- not a lot moving the markets this week so in terms of things other than warren buffett. stuart: i'm reasonably safe? >> reasonably anyway. stuart: our viewers don't have to rush out and sell, sell, sell according to keith fitz-gerald. >> and under any circumstances, but nothing to panic the market. stuart: that's why oil approached 96, 97 and backed since. i've got news, the city attorney

san francisco suing monster beverage, accusing of marketing the energy drinks to kids. that's a hit, really hurt the stock and look at it. it was down more than that earlier, now it's down 2%. looks likes they're going after monster for those energy drinks and it has brought the stock down just a little bit this morning. lauren simonetti on the floor of the stock exchange tell me about google. >> the tech sector outperforming and outperforming today stuart. stuart: tell me about tyson. i've seen it go by on the tape, a big loser. they reported earnings, a double miss and cut the full-year outlook and two things going on for the largest meat producer in the u.s. number one, the drought makes their costs higher and they're not able to pass that on to consumer to offset the higher costs. number two, when we go to the

food store we're buying cheaper chicken than beef. stuart: let me wrap it up for you, we came out monday morning worried we may see a pullback after the rally, 261 points up last week and well, it's not happened. and we're, i'm going to say, we're down .02% and that's not a decline, is it? yes, another day and unintended consequence of obamacare, and what's the problem this time? not enough people going to sign up for it. we'll tell you why that's bad next. it's monday.

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>> now we've got concerns surfacing from democrats whether enough of the 49 million uninsured people in the country actually signed up for obamacare, some support on obamacare say that people don't know that the coverage is in the states. is that perhaps why harry reid said that's why the solution is on it. i'm saying that obamacare, this calendar year may be the most important of the year, because it's skewing employment. people are going far more, pushed into part-time work so that the employer doesn't pay for obamacare, what do you say. i think it's right. and of course, harry reid would

say let's spend more money, we can print it, that's his attitude. the fact of the matter is, we've seen parallel where they had 20 years of pushing people into part-time labor so they didn't have to have their health care challenge or retirement funding occur. we'll have is an entire generation of part-time labor, this is the law of unintended consequences. >> that happened in japan and it was deliberate just like here, and make it part-time so it doesn't have to pay for the health insurance, and that happened in japan? >> they're motivated by profit all over the world and if they can make more by squeezing people into less paying jobs with no bertnefit-- >> in the jobs report 278,000 people were pushed involuntarily into the part-time work, and they wanted full-time and wanted part-time. and in large part because obamacare is down the pike. i see it as a huge negative for

the economy. we're following it of course, the senate could vote on the internet sales taxes as soon as tonight. however, our next guest is against that internet sales tax and joining us is the former governor of virginia, jim gilmore. welcome to the program and good to have you here. >> thank you, stuart. >> now, i understand it's definitely going to pass the senate no way around it, they're going to get 70 votes for the internet sales tax in the state and then goes to the house, my understanding is that it might get through the house, if they raise the exemption, currently, you're going to have a million dollars worth of sales as a small business and then you qualify for the sales tax and then they want to raise that exemption and they think it will get through the house, what do you say? >> well, i hope it doesn't pass the senate, stuart. the real issues that we're facing today in america is the one we're talking about immediately before this, and that is that there are giant

burdens, young people are not getting their jobs, and obamacare is a burden and now this is going to be a new burden so i hope the united states senate wakes up this morning and doesn't pass it, but if it does pass, then i'm hopeful that either it's defeated in the house of representatives or that they at least pass an amendment that allows small business to flourish because small business is going to bring us out of the economic recession, got it, would you address the issue of fairness? at the moment, i live in new jersey, i can walk into a store and look at an item. and get out by smart phone and order that very same item on-line, from somebody who is going to sell it to me out of state. and i don't pay no sales tax on it and i avoid the 7% or whatever it is from new jersey, from the bricks and mortar guy, that's not fair, is it? >> well, now, superficially, nobody wants to be unfair to anybody, and i certainly don't, but it's kind of superficial because really, these are different forms of commerce,

sure, you can go on your iphone and then you'll he have to order it and then it comes in and maybe you don't like it, the color and the fabric is not the way you want it to be and you've got to send it back, there are shipping charges and there's a delay on getting it. what about the people that look on the internet and find the item they want. and they go downtown and buy it and sales tax on it and move up the road with items. there are different forms of commerce and i don't think that a fairness issue demands the different forms of commerce are taxed the same way. >> i see he your point there, sir, we're told it would raise about 11 billion dollars, if this tax were imposed. and that doesn't sound like a great deal of money to me. >> perhaps some money, but the fact is that what people are saying is that e-commerce right now helps about 220 billion dollars worth of sales and 160 billion is taxed by the big box guys, by wal-mart.

by amazon and big box guys that have nexis and a presence in the 50 states. it's not that much money, as an e-commerce, as i said i think it's in the best interest of the country that consumers have choices and small businesses have to build up, particularly in a time of low growth, which is what we're facing. i think that low growth is a national emergency, i think the internet tax bill is going to hurt growth and it's bad for the company and defeated in the senate. >> last one, i've got about 15 seconds, at the end of the day, it's gone through the senate and the house and you think, will you tell our viewers that you're 90% sure that this thing will be beaten, can you say that? >> will be beaten? >> yeah, i don't think that the house is going to pass this because i think they're really concerned about consumers and their legislative districts and i wish the senate would be more alive to that.

>> jim gilmore, we appreciate it. >> thank you, stuart. president obama promised to create a million manufacturing jobs where he took office. so, how is the business doing? we've done the research. and the number not that good. that's next. distinct shouting] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines

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and youtube a paid subscription service, and paid a buck 99 a month and subscribe to video channels. the stock hitting all time high. and barnes & noble slashing the nice of the nook after the company announced it was picking up to revise sales. new nooks will share other services and shares of barnes & noble. we're keeping a close eye on the dow and right now it's down 9 points, i'm calling that a dead flat monday morning. president obama promised a million manufacturing jobs to be created, and he's not even close to reaching. and more in just one minute.

>> i want to go back to the floor of the exchange. because monster beverage taking a big hit. it's a story that san francisco is suing them because they're advertising for kids, is that it? >> that's the story, and san francisco is suing monster beverage because of advising kids as young as 6 years old. this despite warnings from scientists that are highly caffeinated products can cause things like brain seizures. but the they're looking in for trail mix and gum. they said it never envisioned that caffeine would be in so many products the way it is. >> wait a second, you said that marketing to kids as young as six. >> yes. >> monster doesn't specifically say, hey, you six-year-old, try

this? they're not saying that, are they. >> no, but in the lawsuits today, says that that is the case, violating california law by marketing its drinks to children, as young as six years old. they're going after them. the stock is down 1%. >> lauren, thank you, indeed. president obama promised to create manufacturing jobs, but found they've lost manufacturing jobs since mr. obama took the white house. and joining us, lauren, what happened when he want today gain a million? >> a good question, first of all, you had the after-effects of the great recession and no doubt that played a detrimental role. you've seen since 2010, modest growth in manufacturing, adding back half a million dollars in manufacturing jobs and that's been largely flat over the last year, and so, i think that that has me worried because there's

been all of this talk about a manufacturing resurgence, but we really haven't seen it show up in the job numbers particularly over the last year. >> scott. is that accurate. net-net. we have in fact lost manufacturing jobs, do you agree with that number? >> if you take it back to january of 2009. we lost a tremendous amount of manufacturing employment during the great recession, and obviously, you take that back to the prior debt gain and there were half a-- 5 1/2 million manufacturing jobs that were shed. and so, but we've been flat the last year. >> what's wrong with the president's policy to fix this? what's he done wrong? >> i don't think we've been aggressive enough. and countries like germany, china, japan, have manufacturing strategies, some of them employ high road tactics and that we need to align a tax policy and a story and a trade

policy and invest in the skills of workers, and we're seeing a lot of potential hiring, but our vocational system needs to be decimated. >> we need to be invested in the infrastructure and we need to be smart how we do this, we don't value manufacturing as much as some of our competitors do. >> that's a good point, isn't it? and how many, keith it's gerald is with me. how many middle americans want their children to go through college and get a manufacturing job, keith? i don't know. do we want that? >> other nations went for manufacturing and we went for cheap energy and cheap housing, now we've got to come back and reacquire a legacy that we've shipped off shore. >> and scott, wouldn't it help american manufacturers if we went after our own energy, cheap, domestic energy, that you can build a factory around there that? >> absolutely, that's one of the great potential advantages that we have over the coming decade is the availability of natural

gas and home grown energy, that would give american manufacturing, which is very energy intensive and that we haven't had for a long time and i think we need to seize that opportunity absolutely. >> do we think that this administration will seize the opportunity? >> i'm hoping the benefits of having this all in strategy. >> the judgment man natural gas. >> we're hoping that they will see the bright side of the world some of us don't think they will. what's your judgment? do you think that this administration is going to go, make a successful politics. we're going to bring in the manufacturing jobs, it's going to happen, do you think it is? >> well, i'm going to say i hope. i think a lot of things that can stand it that way, the business cycle is a bigger indicator than almost anything else, the sequester is going to be damaging. >> come on, come on. >> we need an innovation and trade policy. >> i know, i know, i know, we need, we need, i know, come on.

>> do you really think that this president is going to get out there, is he pro business and come on let's get out there and compete and bring me those jobs? do you think's he going to say that? >> i'm optimistic and i will tell you why, we've tried everything else and it really hasn't worked. and manufacturing is a core competency of our country and i think the political class is waking up to discover that and certainly spent a lot of money advertising about it last year and now they have to put their money with their mouths are, on do something about it and we'll be watching it. >> i don't think he's going to do it, flat-out. >> not going to happen. president won't do it, now this, up next, america's energy revolution, in texas it has had a revolutionary impact. and shake your head, because california is going the other way. we'll be back.

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>> simply astonishing numbers fr from texas. with their own resources, texas numbers the lonestar state

doubled output and double again by 2016. 400,000 people are employed in oil and gas in that state and they earn an average of $100,000 a year each. and texas, has an 80 billion dollar a year energy industry, unemployment rate is in the 6% range. that is prosperity. and delivered by a state that likes business and loves oil. and now, comes the inevitable comparison with california like day and night. the wall street journal has an editorial today and use an interesting expression, quote, the already rich greens are dead right. it is the greens in california who have made their money already, and stand in the door, and they've lost prosperity. they don't care. they've made their money and they hate any and all fossil fuels, why california oil production have dropped, repeat, dropped by 1/5 in the past ten years and they would do anything

to stop kl cal exploiting the massive energy reversed on the soil. they don't care about 9.4% unemployment and don't care about the shredding of wealth. they're already the rich green. so above it all. and one last number from texas, oil and gas contributed 12 billion dollars to the state's coffers last year, because it exploits energy, texas can do things and that's the way that california was when i arrived there 40 years ago, as the journal says, think how america would grow if california were more like texas. with fidelity's new options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity option.. evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens and i helped create

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you make your first million. once you have got it, you want to protect it. he simply wants to earn it and do everything they can to make a business friendly environment. they want to spend it and turn the treasury into the coliseum. stuart: somebody else made it for them, now they want to stick it to those who don't have it. no more nasty oil. >> astonishing they can survive under those. stuart: the finance minister now wants to get rid of it to make southern europe recover. saying it is pleasing to disaster. what do you think? >> italy, spain, although

stations, the debt piled up, and the california should start their own. entirely new meaning. stuart: we sat here for a couple of years now and i said i don't see how the euro can survive in the current format. but it is still there. >> takes a lot of time and a lot of effort that goes in. they will do whatever they can to preserve the status quo because that is what they know. stuart: should we cheer on the demise of the euro? visit our interest in america to the world second biggest currency collapse? >> no, it is not. as much as i likes the value returned to the market, i don't think so. stuart: i think they will print up a storm.

it says the dow jones, euro plunges after saying the european central bank must consider more, so they will print. >> they will print until the end of time because that is all they know. stuart: revolt from the people, that is what is going to happen. the dow jones industrial average is down 26 points. a flight monday morning after the huge rally we saw topping 15,000 during our program friday morning, i hope you were there to see it. all right, yours. dagen: thank you, stuart. connell: i'm connell mcshane. dagen: i am dagen mcdowell. the cost of amnesty. show just how big the burden

could be. we debate. connell: the cyber threat, the labor department opens the door to a much bigger problem with microsoft internet explorer. dagen: lower gasoline prices. why economists say this is an important ingredient to keeping the economy on track. connell: all that in wrapping up the weekend with warren buffett with the top issues facing our economy. those stories and much more on "markets now." >> what do you think of the good old single-family growing as an investment these days? >> i said a year ago though i tt was a very good investment for people who knew they were going to live in that house for considerable piece of time. take a long-term mortgage. dagen: top of the morning. top of the hour.