charles: if the market is down more than a hundred, nope. stuart: on that note, it is yours. connell: no doubt about it. dagen: any day of the week. connell: good morning, everybody. dagen: firing those responsible for the irs targeting scandal. people in charge dodging questions so how do we get to those who were on top of this, why's it so hard to get rid of them? connell: the president laying down guidelines on drone strikes. we will talk with donald rumsfeld. dagen: madoff for president. why madoff says the banks are just as guilty as he is. connell: and here comes hurricane season.

the latest forecast for the year due out today. coming up on "markets now." we should say adam shapiro meeting with bernie madoff exclusive. dagen: we are on top of stocks, nicole petallides at the new york stock exchange on the heels of the brutal selloff in japan. nicole: it really is a big move to talk about the market averages moving about half of 1%. it really shows you the diversions. at the lowest .15180. off of our lows that is good news, a majority have down arrows, home depot and bank of america.

hewlett-packard with guidance better than expected. sc names like game stop on the s&p 500, china showing manufacturing as a pmi number, that maybe one of the main reasons they dropped the way they did. connell: the irs scandal the latest instance of officials misbehaving and those misbehaviors gone without punishment. why's it so so hard to fire these bureaucrats? dagen: deputy editor of the "wall street journal" editorial page. we at least know now that higher-ups knew this was going on for many, many months. why didn't they say you can't do that, get out of here. >> that is the right question.

the idea that we should reach out and fire these from cincinnati trying to administer the crazy irs rules stresses to me besides the point doesn't raise a question of political responsibility, the heart of the organization is 501c4. they are trying to sort through all of the irs code. democratic senators were sending letters to the irs raising questions about the tax status of the conservative activist groups and during the 2012 campaign president obama himself was criticizing these groups. it is not surprising if somebody from the irs started to look at them.

at that level, who are you going to fire? connell: the government has gotten so big and so large, you get the example of the obama advisor who says how is the president supposed to know about this? >> there is no way to keep track of it. president obama did at ohio state, don't take all the criticism seriously, government does good. how can the governments do good if you can the president doesn't know what is happening across the government? that is whhn abuse occurs. dagen: not always the government gotten too big, but it has gotten bigger under the obama administration with the health care law and with dodd-frank.

these are two giant loss you point out that won't even be implemented they are so on wielding. >> you either openly them or you don't, we have become so complex nobody understands. we can start telling people what to do. you are the one in legal trouble with them. connell: that defense being used to say home i supposed to know, we heard it from ceos, the buck is supposed to stop with the ceo or the president, after defense in some cases or not? >> we now know this irs audit came to the attention of the government and told the chief of staff, they decided not to tell the president.

it used to be the buck stops there, no stores in the white house. dagen: will it get better? >> i think it is not going away. you have the investigation, justice department and congress bringing in criminal statutes. you run a risk of going to jail. dagen: thank you so much. connell: thank you for that. some points that apply to our next segment. president obama today delivering a speech to defend his counterterrorism plans, the administration did publicly for the first time for americans have been killed in drone strikes since 2009. we welcome in the former secretary of defense because he is the author of a new book.

leadership lessons in business politics war and life. there are some things we can talk about in the current administration that apply. let me ask you about the current news events today. making a new push closing guantanamo bay going public with what many of us already assumed the drone strikes are killing americans overseas. what do you make of that? >> the difficulty is what are you going to do with these people? the worst of the worst. they are being treated humanely, but there are no longer able to threaten the american people. it is all a drone is, an airplane without a pilot flying it, to an extent you use a drone to kill somebody you don't have the ability to find out what

they know so you can protect the american people. i think they are here and will be used by governments and the private sector, i think what we need to do is develop a way to think about how they ought to be used and how they ought not to be used. connell: it comes a time the war terror is evolving and of course directly in response to september 11 attacks but we had the attack yesterday for example in london chops to death in the streets the worst of the worst, different type of terrorist attack but a terrorist attack nonetheless. where are we more than a decade after september 11? >> people don't understand the threat of this attack. people think of world war ii or

korea. in fact, what we're dealing with his something quite different. much more can to the cold war. we had to do with communist ideology. we have an administration that won't even identify the nature of the threat, they call what took place at fort hood workplace violence. which is nonsense. connell: there is a lot, you have been a ceo in the past, a lot of people would identify with, know your customers, all the things for the business audience but why did you write this book now? >> i have been collecting these rules, ideas that came to me from people a lot smarter than i

am. in the ford white house president ford heard me talking about it and asked me to get them circulated to the senior staff and he labeled them rumsfeld rules even though a lot of them come from winston churchill or any number of people. i think they are interesting and better to make original mistakes rather than repeat mistakes others have made. connell: that is kind of the larger will. is there a reference in there at all to your own secretary of defense say making original mistakes? were there mistakes made on the runoff as justification? were the rules not followed? >> indeed. no question that says if it is

intelligence it is not a fact. that is an important thought. when the case was made by the president and the director of central intelligence, they were talking about what the intelligence said in the rule is if it is intelligence, it is not a fact. if it was a fact, it would not be intelligence. connell: i wish we had more time, going through it piece by piece. i guess we'll have to read the book, thank you for coming on. dagen: bernie madoff talks to adam shapiro. laying blame on the bank. connell: adam shapiro went one on one with him. with that in mind, former reagan

advisor last hour on "varney & company." >> will be changing their mind by the hour, the second, going through a roller coaster ride, if you're prudent and you don't trust wit what the banks are do. if you think the fed is off the deep end, get out of the way. this is america.

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connell: there he is. charles payne standing by. that with exclusive interview with bernie madoff. what about ford today? nicole: we're watching ford with australia. their cost are double that of europe, four times ford in asia. the business simply cannot continue. ford was shot the two australian auto plants by the year 2016, obviously having some heavy job losses that come along with it but 90 years of car production in australia, but because of the strong australian dollar, it hurts manufacturers, so ford getting out of australia. dagen: time to make some money with charles payne.

connell: yesterday was weird. >> so far we know they came out and stems of freefall saying we are not even close, one of the things i want to talk about is investors, they are already so afraid. so skittish, they have to make up their mind or know a little bit about the history of the market. believe it or not, i know it is a newsflash, occasionally it goes down. such a huge rally, people should know using key moving averages, if we went there, so reasonable to consider where we are right now. people have to be very careful, know what you own, hang in

there. that is something entirely different. dagen: they ought to be more worried about their money with longer-term government bonds than the stocks at this point. >> it was so overshadowed by the market, i think that is a bigger news story right here. a 30-year run, the best on the bonds falling apart is probably the biggest trade in terms of volume. i agree with you 1000%. connell: stocks go up and stocks go down, newsflash. we're going to watch the hearings as we continue, some news coming in on that. taking the fifth yesterday whether they should be called back or not after consulting with congressman asa.

it is no longer valid. the argument over making an open statementhd and plead the fifth amendment. dagen: she could be recalled for her testimony. connell: that just came in to us. we will get to this bernie madoff interview. and guess what, pointing a finger at the banks, you'll hear from adam coming up. dagen: and how could this possibly be easy for the fed to take itself out o if all of the bond buying? it will not end well. he will weigh in on ben bernanke and maybe why the white house ought to be more worried. and i look at the world currencies holding up against the dollar today.

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>> 22 minutes after the hour. this is your fox news minute. the british government saying to suspected terrorists arrested yesterday's brutal killing of a

soldier had been investigated the uk security sources for possible terror link. to british men attacked the victim with a butcher knife all in plain sight. police shot and wounded both of the suspects. here at home the devotee of the script through moore, oklahoma, estimated $2 billion in damages. 13,000 homes were damaged or destroyed. the kind of continuing in the weather service say more thunderstorms for central and south east oklahoma on the way. and the boy scouts of america will vote on whether to allow openly gay scouts in its rank. it would overturn the current ban on gay scouts. those are your headlines, back in another hour. but back to you now.

connell: falling upon comments from darrell issa office. in reference to the irs scandal spokesperson saying after consulting with counsel they concluded the fifth amendment assertion, supposed to testify yesterday but pleaded the fifth, it is no longer valid. remaining under subpoena. recalling her for testimony. dagen: a foxbusiness exclusive, strong words for wall street and the bank from bernie madoff. connell: adam shapiro face-to-face with madoff earlier today. joining us with more on this exclusive interview. adam: bernie madoff has been communicating with foxbusiness

on the complicity of things and clients and publicly for the first time saying his clients were aware of fraud before he told his brother or family about the fraud. prior to my admission, i have difficult phone calls, they were major clients, those people accepted are now dead. i informed them i'm closing my firm and going to acknowledge i have committed a fraud over the past 16 years. they were to be aware with the circumstances that created that situation. finally they were all aware of the documents existed as well as the people who could testify regarding the illegal activities.

i asked how those men reacted when he told them they were shutting down the ponzi scheme, the illegal activity says they were involved in was fraudulent trade. said they acted stunned, they acted stunned. not sure if they cared. pointing an accusatory finger at jpmorgan chase. seated by the trustee for billions of dollars. essentially not on the grounds of the case but on standing under appeal. it have to be idiots not to realize what was going on. a source close to the bank told us they made false accusations in past interviews. jpmorgan chase declines to comment on the report that the

treasury inspector general u.s. treasury communicating with jpmorgan chase. they would not comment on that. he reached out to see if they would confirm what he said about an investigation. i can only tell you from a humane standpoint mr. madoff was calm, fit, a little thinner. it would not realize he is a 75-year-old man, stage for kidney disease. connell: more on that. thank you, adam. dagen: chairman of the economic advisors, we will ask him about ben bernanke, the punch bowl is taken away and maybe why the white house should be more

worried about that. connell: they are threatening the agricultural industry in florida not to mention how irritating they are. but before all of that, hewlett-packard up 14%. we will be right back.

connell: "markets now" with another edition of stocks now. nicole petallides, what about hormel foods?

nicole: they are dropping to the downside. increase cost. down about 2%, also, is the acquired skippy's peanut butter, $700 million that is one of the reasons why we talk about higher cost involved. lower quarterly profit, another name under the umbrella. that actually does well for them as far as revenue is concerned. dagen: the big question is after ben bernanke's testimony yesterday after the fed minutes came out, when will the federal reserve starts to take away, paperback the bond buying

program, when will we feel the pain? japan falling 7%, is our day going to come soon? what does he think about the communication or lack thereof? the pain we will feel when the fed takes the juice away. will it be painful? is it unavoidable? >> some extent it is unavoidable. there's good division with some of the members wanting to continue the quantitative easing, others want to scale back fairly quickly. i would guess the fourth quarter of this year or the first quarter of next year is when they will start scaling back or tapering off the purchases but that is conditioned on how well

the economy does. as far as he's concerned they will taper off if and when you see more sustained economic growth. it is still pretty fragile. and what impact will it have? it probably will have an effect on the market, it is already. anticipation that it happens, but in terms of the economy, the impact will be more modest, i don't think it is the main thing keeping the economy going at the moment. dampened at the moment by the effect of the sequester and the higher taxes. dagen: that the council economic advisors, how worried do you think those people are?

no control over it. >> the whole process with the irs and so on pass them on the a little bit, they are worried about the economy and the role the fed may play in gradually scaling back the stimulus that has been provided. there's nothing really they can do about it. they may push again for something on the physical side at least avoid further cutbacks in spending or increases in taxes, but they can't do much about the fed. dagen: there is a lot of talk that deficit spending is not as

much of a worry as it was even six months ago. >> if you talk about the short run, what is happening now and toward the end of last year, this year and next year, deficit is coming down much more quickly than people expected. getting strong revenue in part a strong market but also because it is getting a little bit of momentum. definitely held under control, much of this is declining, a rate of growth of government spending is at one of the lowest rates ever. postings agreement deficit down. it'll take the edge off of the deficit-reduction, which is sort of too bad. the deficit will go up again if we look 10 years ahead, that is the challenge we have to deal with. dagen: it'll be a more painful

burden when interest rates spike. it is coming. we don't know when. connell: big hearings in washington, another underway. facing some tough questions, one of them is whether she was underestimating her income by some $80 million. dagen: i would like to have that problem. hey, peter. peter: expected to get some heat in her confirmation hearing now underway. longtime political reporter and supporter of president obama. she has a few accounting issues. on tuesday she filed $82 million in income consulting fees. her lawyer says it was due to

inadvertent clerical error. >> the concerns have been raised with the role of 2000-2001. i would appreciate her continuing to work with us after the hearing to answer the questions we may have before we report the denomination. peter: they made their money in the highest hotel chain and being opposed by a labor union representing workers at the hyatt hotel. some contracts for low-wage workers, 18 month investigation found no major safety violations at the company. dagen: thank you. connell: now to florida. new insects are threatening

$16 billion per year agricultural industry. dagen: i can see you squealing like a girl. connell: that would be me. dagen: jeff flock will talk to him coming up. the former ceo exclusive about what he is doing now. jeff: somebody who knows the heat of the corporate boardroom, take a look at that. 1600 degrees. his thoughts exclusively here on the fox business network. right here talking only to us this morning. it is hot in here.

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in everything from the best experiences s below... we're not simply saluting history... we're making it. dagen: creepy crawlers threatening florida. not just twentysomethings from jersey going down for the weekend. connell: there he is, with the details. you do have a lot of dogs down there, don't you? phil: 15,000 different species of blogs. one new one arrives in florida every single month. $16 billion per year agricultural industry is what is most at risk.

whether it is the hissing cockroach, or the asian tiger mosquito. bugs are far from an icky annoyance. bring economic and health risks causing money to deal with. >> florida is under assault by aliens. affecting our economy, natural resources, our homes and even our health. talking about six like it aliens, insects. >> many arriving cargo containers or the suitcase coming back and due to the height of global trade, especially in the florida ports, and lack of proper personnel only about 3% of all imports get

inspected. dagen: how will we end up paying for these pest problems? >> you may think they are just gross but they cost a lot of money to deal with. this right here is an avocado. $50 per year profit, cost $150 to spray for the beatles which kills the tree and just two weeks. up in gainesville they connected major research in a quarantine lab, most of the predators remain back the native land. >> if the call to reduction, guess who's going to pay for it in the end, the consumer. this whole invasive issue is very devastating to the florida agricultural industry. >> florida, california and

michigan dealing with them the most. florida known with the grapefruit and orange groves while the citrus yield is already down 30% think the disease you can blame on the invasive bugs. they have the power to change the face of the world as we know it. dagen: thank you for that reporting. connell: this time we go back once against the new york stock exchange. it will come in doreen. what we are showing shares of hewlett-packard. earnings better-than-expected, business earnings are strong, everybody and their brothers have upgraded the stock today. >> this is not just today, stocks already up 50%, up another 13%. a tremendously good move.

wthey will be cutting 29,000 jobs, anticipate a slowdown of pc sales will help the company. things like whitman are doing. connell: here we are after the drop in asia overnight. >> does not seem like you have a lot coming. consumer sentiment better-than-expected. riding the wave as well. every time it comes in, people come in and buy it. connell: thanks. dagen: jeff flock talks the former ceo about what he has going on right now.

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dagen: he grew into a billion dollars company now he's into venture capitalism. what are the hot for right now? how about some molten glass? connell: igniting glass studios in chicago. >> this is a great one.

for those ceos used to boardroom fights wondering what happens after that. what happens after that? >> one of the biggest glass studios in the united states dealing with 2600-degree glass and it does not seem so bad at all. >> how big it is guess? >> when i left in december about 1.4 billion in revenues, 7000 employees, $200 million. >> there is your son walking past. your son told you one day i want to be a glassblower and you said what? >> there wasn't much i could say. like a lot of parents you respond and try to channel your kids want to do. he wasn't going to sit behind a

desk, he was going to do something with his hands. that is what he wanted to do. >> health care reform, is it going to make it? >> it absolutely is going to make it. health care has to change and health care is becoming more consumer iced, more consumer focused. consumers. our belief especially is that this is about making health care, experience everybody has. obamacare was the first stage. >> this is one venture. you have a solar panel company, what can you tell us about your future? >> for the 80% of people who

spend 20% of the dollars, how you bring health and health care to those people for a great experience. for the 20% of the people who spend 80% dealing with chronic issues we are looking into we provide information enabled services to make their lives easier. >> every company he has touched has turned to success. every different industry. sometimes you have to shift gears a little bit. dagen: the market making moves back to an even line after the big triple digit loss earlier in the session. connell: and here to talk startups. lauren simonetti with dennis

kneale coming up on "markets now." we went outut 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 someo who's lived well into their 90s. and that's a grereat thing. but even thgh we're living longer, one thing that hasn't changed much is the official rerement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

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the i am dennis kneale. >> i am lawrence and nettie and for cheryl casone. midday trade, look at that. we are down 100 points. dennis: lois lerner can no longer use the fifth amendment. cheryl: home prices surging to a record high. dennis: polycom ceo standing by to tell us how his people will

topple cisco. top of the hour. stocks every 15 minutes. nicole: we are seeing the markets get closer and closer to the unchanged line. we have seen some improvement there. as i am speaking, we are getting closer to that unchanged line. the market was spooked this morning when we heard the nikkei was down 7.3%. that is a huge move for an index that has really moved significantly. obviously, this shows a weaker

economy. that really brings ablow to asian markets. at this point, we are seeing the markets bouncing back and the dollar is lower. lauren: thank you so much. we have raymond james chief investment strategist. thank you for joining us, jeff. >> good afternoon. lauren: this has been a couple of crazy days. the nikkei down within 7% today. what are you most concerned about? >> i am not that concerned about anything. i do not think it will happen.

the sellout this morning took the new york stock exchange down. this throwback rally was predictable. i think the real challenge will be when we go in the final hour. i think the younger invested portfolio managers will continue to pay up. lauren: we do have a mixed market. it seems like the polls out there at least agree to do a little bit. make your case for why the stock market will continue to go higher. >> the market trades over 1700.

then when you get into the july, august timeframe, i do think you are susceptible to the first decent pullback. i think the economy will strengthen in the back half of this year. i think the move to energy independence by 2018 is massively bullish for the u.s. lauren: why is that? >> our companies have basically a zero cost of capital if you adjust it to inflation. there is no incentive for a company to build a plant in china. you want to build your plan in america for the foreseeable future. lauren: let's say the u.s. economy continues to strengthen. inflation a no-show at this point. eventually, the economy will be strong enough for the vatican say it is time to pullback,

stimulus. >> i think that sometime in 2014 or 2015. i do not think it is in the next few fomc meetings. lauren: was at yesterday's selloff -- without volatility continuing today. >> i think it is dependent on how strong the economy is. 1936-1946. the market did not even care about the 45 recession. it looked right through it and kept on going.

lauren: thank you so much. s&p 1700. here we come. thank you. >> thank you. dennis: new information about democrats pressuring the irs to investigate right wing groups. we are talking big names with senate democrats. elizabeth macdonald is here with more. >> there are ten senators, dennis. we are now tracking ted. the pressure started in 2010 after the citizens united decision. let's go to what they were saying. we also have representative peter welch out of where bob. his letter to irs did not name names of groups that they wanted

targeted. he was essentialll saying to the irs, listen, you are behaving passively. lois lerner's response to me is unsatisfactory. long after a complaint to the irs does a compliance review begin? he had a dozen groups that he wanted look at. i will tell you something, the fact that there are now ten congressmen democrats pressuring the irs to do something, we do not know if there are even more involved. dennis: given that congress itself is outraged, and that members of congress themselves were calling on the irs to investigate two-party groups, will this blunt and investigation? >> the question is whether or

not members of congress have looked at each other. senator schumer saying, listen, if you do not act, we will pass legislation that will change irs rules. somewhere in the process, this turned into targeting of only conservative groups. somewhere there is a missing link in the story. dennis: >> the story is still unfolding. dennis: thank you very much.

elizabeth macdonald. bring her back. lois lerner can no longer use the fifth amendment to protect herself. >> i am not interested in who will resign. there are specific laws that pertain to irs employees. the attorney general indicated such earlier this week. it is a serious problem and i think it is our job to get to the bottom of it. dennis: we have juan williams with us. not even the oklahoma tornado death were able to bump this backlash off the front page. >> the democrats are upset about

this as well as republicans. do not use the irs as an instrument of attack on your political opponents. dennis: what about the fact that elizabeth macdonald just reported this: >> i do not think that that will be the fuel for the fire year. there was a day louche of applications. the whole tea party of explosion of anger was suddenly a large number of tea party and atria groups who wanted to be, tax exempt and send applications in.

what we have learned from the testimony so far -- i think you hit this earlier. they focus on conservative groups. dennis: you would think after that ruling, that there was a rise in progressive group legislations as well. whether they were liberal or conservative, the irs essentially neutralized a lot of these groups from enjoying. didn't that basically have the affect of keeping them out of the campaign and time for president obama to get

reelected? >> it was not a day louche from the left. the anger you recall was from tea parties who wanted to get in and fight against the democrats in the midterm that. the second thing is whether or not they were able to participate. it was the delay that essentially, as you point out, for their participation. these were small groups. the applications were approved. what we heard yesterday from the deputy treasury secretary was he

was aware of the inspector general's investigation, but that was it. dennis: thank you very much. >> you are welcome. lauren: we will head back to the new york stock exchange with a look at today's biggest winners. dennis: bernie madoff. adam shapiro just that down with convicted fraud stir. he will join us live. take a look at oil, as we do every day at this time. ♪ this is america.

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lauren: welcome back. quarter after. nicole petallides on the floor of the new york stock exchange. nicole: you see the dow has turned into positive territory. i wanted to take a look at some names here making news of their own. johnson & johnson is submitting ten new drug applications. that is something that is in the pipeline with new products for that company. ford motors is closing some plans over in australia. it is not lucrative for them to do business there. pandora moving to new highs. tesla motors is now up about 30% at the moment. that, obviously, is a stellar performer. right now it is out 443, --

443.61. the nasdaq and s&p are still red. bacc to you. dennis: thank you. it ii time to make some money with charles payne. this hour he is looking out biopharmaceutical. charles: at this point, it should at least be a five or a ten. they have a drug which was the first obesity drug approved in 13 years. obviously, a lot of fanfare. i love the action on it right now. good thing for them is it is not just clinical obesity.

you can use it for high blood pressure and high cholesterol. that covers a lot of people. a lot of people are hoping they get a major deal or they are just complete taken over. you heard nicole talk about johnson and johnson. it is very expensive to do what this company has already done. dennis: the most recent obesity drug ended up getting sued for like 12-$20 billion in damages. the entire category stayed away from it. charles: because it is holding it down a little bit. the insurance coverage is not there. $160 a month. that is a big deal. a large pharmaceutical company

can pressure them. other than that, their past history. dennis: i get the feeling some big drugmaker may be better off buying them out right. charles: i think that this stock really takes off. dennis: hanky very much, charles payne. lauren: sales oo new homes continue to the client. dennis: bbrnie madoff changing his story. adam shapiro sat down with him earlier today in a box business exclusive. they will join us live from the federal prison in north carolina. ♪ thank you orville and wilbur...

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♪ >> 23 minutes past the hour. i am jamie colby. this is your fox news minute. the bill itself seeks to bypass

president obama's expected veto of the keystone pipeline after it goes to the senate. the day after the obama administration took responsibility for the death of four americans and overseas drone strikes since 2009, president obama is expected to unveil new strategies. the british government is saying that two suspected muslim terrorists had been investigated for possible terror links. two british men attacked the man with butcher knives on the street. police did shoot and wound both suspects. those are your headlines. i am jamie colby. back to you, lauren. lauren: prices hitting record

highs. we have senior equity analyst joining us now with some tips on how we can play this continued housing recovery. thanks for coming on. spring is christmas for the homebuilders. how are they doing this holiday season? >> doing extremely well. lauren: you have people in their death at the land rights and could get inventory out there sooner than others. >> correct. we have seen existing homes for sale drop down to fairly low numbers. competitive threats have come down for the industry. lauren: you like these particular homebuilders in

particular. some of these are up more than 30% this year. why do you like those stocks? >> they have the land to go out and build more neighborhoods and meet the demand. these companies are also serving the mover and entry-level buyers. they have a good mix. lauren: are we in a market that is really ripe for the home sellers right now? >> every situation will be different. we are looking to sell, especially in the market. if you are looking to sell, prices are coming up. lauren: that would make people feel richer. >> yes, typically the wealth of fact, you would see some of the wealth affect come into play at that point.

lauren: we are looking at some of the homebuilders right now on the graph some big games today. thank you very much. >> thank you. dennis: the man behind aol and revolution, steve case, will be here. lauren: adam shapiro gives us the details on his exclusive one-on-one jailhouse interview with bernie madoff. you will not believe who he is pointing the finger at now. first, let's take a look at some of today's winners on the s&p 500. ♪ you hurt my feelings, todd.

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dennis: bernie madoff today. the banks are to blame for the nation's financial woes. steve case is here to talk to me about where entrepreneurs are having the most success in this country. lauren, get on that twitter. just how much social media drives success for tv shows. it is bottom of the hour. this time it is time for stocks now and nicole petallides. nicole: it was a big loser last

year on the dow jones industrials. now you have a slew of analysts who have all come on board today raising their price targets, raising their outlooks. they have been cutting costs. in addition to that, they talk about further layoffs. working hard on turning this one around. obviously, it was a big dog last year. this year, a big performer. do not forget, they are trying to make a comeback as well. lauren: bernie madoff changing his story on who exactly new first when it came to his over $17 billion fraud. our very own adam shapiro joins us with his fox business one-on-one interview.

how did he look. >> he is a little thinner than when he went to jail. he looks very healthy, actually. this is a medium security prison. this is not a rough place, in his own words. that is how he looks. he sees a psychologist on a regular basis. the reason we came down, lauren, was because of the correspondence i have had with bernie madoff. also, because he sent me a letter in which he talked about some of his clients. clients that have been sued. he said they knew they were doing illegal stuff for years. what has changed is he now says he has called those clients

before he told his brother and family he was going to and the ponzi scheme. he said they acted stunned. he then went on to say what i need you to do is return the money you owe me. believe him or not, bernie said he is trying to get the money back for his victims. they said they did not care if it was a ponzi scheme. we reached out to carl shapiro's attorney. carl shapiro was as shocked as everyone else when madoff the best to a ponzi scheme. you also have jeffrey picked. family chase is one of the people who got called.

they are still fighting in court. it is about a billion-dollar recovery. then there is of course, norman leavy. he died in 2005. mr. madoff talks about the transfer of funds. essentially, it would be like check hiding. jpmorgan chase had to know what they were up to. they would have to be idiots not to know it. we reached out to jpmorgan chase. madoff has made these fraudulent claims and several and used in past. the issues and that case, that complaint followed by the

trustee are the issues bernie madoff is now saying he is speaking out about because he says he wants to assist hst and recovering money for his victims. he knows people do not believe him. he also knows that people think he is a psychological liar. it is bizarre to spend two hours with him. [ laughter ] lauren: i cannot stop laughing. thank you, adam shapiro. dennis: some of those people love those returns. what talk startup fever. they are finding the top of the list for startup states. florida trailed by california. virginia, iowa and new york are all pulling in around 300-$250 million each a year.

we have steve case with us now. thank you for being with us. what makes a good place for a start up business? >> some things the government can do. there are a lot of things that need to happen in the community. they need to create more of that network density. people really are coming together from the universities. everybody working together to create that start up ecosystem. we are really seeing a rise of arrests around the country. dennis: one thing you are announcing today is this local community for entrepreneurs.

>> four years ago another initiative was started. they have launched now and 400 different cities. it is exactly the kind of network of fact i was talking about. we have decided to put them together with a new organization. there is more products and services. dennis: this is nonprofit work. you must have some financial upset. >> i am doing it because i really believe entrepreneurship is a criminal ingredient. i also spent time in d.c. on positive issues. they use technology to try to improve legislation.

dennis: there would be nothing wrong with using that as a scouting service. here is the thing, when you started, we had some of the best startups in the world. we did not need some cute online community. how come we need this today? >> there are places wheee entrepreneurship is flourishing. we are trying make it possible for anybody anywhere. some of that is through policy. they raise money even if they are not venture capitalist in the region. bringing both together will give people the skills, resources, connections, sometimes the capital they need to take that idea and really want a company. dennis: on one hand, you have

great off-the-shelf billing and marketing. on the other hand, you have a lot of business, government policies. >> i think that is a mix. the startup ecosystem is much broader. our armor. these are all startups that are global companies. we love the internet. we really recognize entrepreneurship. we really need to make it easier for entrepreneurs to get it going. dennis: is it easier or harder today? >> it depends. it is cheaper to get started.

you can outsource a lot of things. dennis: thank you for being with us today. take care. lauren: we will call it david versus goliath. andy miller tells us how his company is looking to surpass tech giant cisco. that is coming up. ♪ for teaching us that you can't . by clinging to the past. and with that: you're history. instead of looking behind... lta is looking beyond. 80 thousand of us investing billio... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.

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♪ >> i have your fox business brief. i like financial has reached for a more than $2 billion settlement. the deal was for prior quarter approval. it also paves the way for a planned that good is it exit from bankruptcy. it is significantly larger than its previous offer. american workers are staging more for their retirement. that is a 75% jump. general motors is recalling or than 27,000 cadillac suvs worldwide because the wheels may not have been tightened enough and could fall off. that is the latest from the fox business network. giving you the power to prosper. double

♪ lauren: quarter till. stocks now. let's go to the new york stock exchange. a slew of retail numbers out today. hello, doreen. >> this market is not going down no matter what happens. i think it is great. lauren: you want to talk about any of the retailers that performed today? >> ralph lauren did not really do much. it is trading near highs of the day right now. you will see on the screen that it is pretty mixed. a lot of these retailers will have a bit of a difficult time going forward. we are anticipating tomorrow, we have gaps and aeropostale coming out, i think they will be in

line to may be slightly better. next bags pretty much down here. lauren: well said. thank you very much, doreen. dennis: poli, making a big transition from hardware to software company. andy miller joins me now. thank you for being with us. you have a multibillion dollar mark cap. it is a great way to raise your own status by picking fights with the giants. in this case, is it real? >> it is real. they are a great competitor. i think the dynamics are shifting now. in the last quarter, we gained 2% market share. our story is sticking with customers and customers are bidding with the wall. dennis: a 7.7 oh yen dollar

market. you open up a big new center for this country. 200 customers coming in each week. it seems to be like a very 1990s theme. i thought that fiber optics were going to let us do this from our desktop. why do people still need to go to this grand new shiny center of yours? >> they need to touch, feel and get a sense of the experience. these collaborations and, we have 20 around the world, are jampacked with customers from all vertical markets. dennis: do you have any data versus telepresence?

does better business get done better that way? >> the way that better business is getting done these days is a smart phone or tablet. it is the same experience. it is the same software. no matter where you are it is the same experience. the beauty of the software can go all across all elements of the platform. dennis: cisco is losing. are you just competing on price? >> actually, prices are stable. we have three major partnerships. we go hand in hand with these key partners. we differentiate our experience not on price, but in terms of

experience. dennis: andy miller, it just seems that you are starting to be cisco to the punch and cisco has this huge market cap. soon it they just buy you? >> cisco bought one of our competitors about two years ago. it is a polycom story. it is in terms of how we offer different thing. this is what we do for a living every day. cisco is a great company. dennis: they are not a specialist in this. dennis: thank you very much. >> thank you very much. lauren: your choice, ladies. $8000 or gained 20 pounds. we will explain. i know my answer. dennis: the three best friends

that anybody could have. "hangover three" in theaters this weekend. first, let's take a look at some of these winners over on the nasdaq. ♪

dennis: in today's media minute, serious pain over. step aside star trek. fasting. six. that may push star trek into the darkness into third place in only its second weekend. a new survey of 5000 viewers

chose just how much social media drives fan support. 72% interact with friends and fans of our show. 61% watch clips and trailers. the survey also finds that 34% use social media to brand themselves. lastly, you have heard about the justice department secretly monitoring phone records. did you hear about justice also targeting a fox news reporter? a co-conspirator for reporting on north korean plans to launch a miss. now a federal judge has apologized for a lack of transparency in the case. lauren: a new survey shows more than half of americans would rather lose $1000 than gain 20 pounds. over 63% of women said they would lose the money and keep

the waistline. dennis: the big shocker there is a 48% of men would rather gain 20 pounds. @f employers would start paying us to lose weight-- lauren: 20 pounds is so much different for you than me. dennis: i believe what she just said is i am morbidly obese. [ laughter ] dennis: we have "the hangover" hitting theaters today. the dow recovery and deutsche bank joined melissa and lori backs on what he calls an investor's overreaction to bernanke. lauren: of merging from the records, but lacking the

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>> the bulls fighting back, madoff speaking out and hurricane season flowing in. melissa: bernanke overreaction. deutsche bank on my investors have to just take a deep breath. lori: the best advice for so many things. i foxbusiness exclusive. bernie madoff, the convicted ponzi scheme are pointing the finger at banks with problems in our financial system. melissa: and how bad forecasters in the forecast could be this year.

lori: nicole petallides with the tao flying back from the deep losses earlier today. nicole: the dow jones industrial virtually flat at the moment. the nasdaq down a%. at the lowest point this morning we have the dow at 15,180. 29 of the 30 stocks were lower with the exception of hewlett-packard soaring all day. the fed comments, ben bernanke was very wary of trying to hold back any stimulus and the policymakers on that committee seemed a little bit more likely they wouldn't mind cutting back. pushing the lowe's yesterday. we watched a show, down 7.3%.