we make the best music player, we wound up making the most. we didn't initially. we made the best tablet. we're making the most there today. stuart: well, if you look at the stock price before the opening bell, it doesn't look like investigators were moved by what cook had to say. he did mention wearable technology and apple shares are down 17% this year. this morning, they will open ever so slightly lower. so, unmoved by what tim cook had to say. let's bring back panera bread, his name is ron shake the co-founder, no, the founder and co-ceo. >> yes. stuart: tim cook in his testimony the other day on capitol hill was talking about tax reform, bring down corporate tax rates so you get the money coming back in. are you behind that? >> absolutely. even more importantly, let's level the playing field. it is ludicrous that you have international companies like a pharmaceutical company paying in the low single digits while

domestic operators like panera are paying tax rates, 36, 37, 38%. >> so you'd bring it down, bring that 35%? >> first i would level it. which is to say i would get rid of this ability for companies to avoid paying taxes, large corporate operators to avoid, paying like apple. >> why don't you just bring the rate, way, way down for everybody. >> for everybody, bring the money back home. >> let's first assume that we're going to maintain the same revenues and then we level play at that point, and then we make a decision how much we want to bring it down. >> look, you've got clout. you're the finder of panera bread. you're going to get your way. and washington do what you wanted. >> they're not up to what the farmers have, in terms of lobbying power. who's got the lobbying power? you're talking wall street and many in the company who are

international in their focufocu we're in a very difficult position to compete in washingtons. >> you're telling me that you have no clout in washington? i don't believe that. >> i'm telling you relative to the other side, we don't look at our tax rates. i mean, literally, we're paying ten times the rate of taxes. >> you're not an international operation yet. >> repatriation of governor properties. >> is that the way we want to do it? is that really what-- -p>> where i'm coming from, i wt tax reform. i want lower corporate and individual tax rates. that's what i want. don't you? >> we absolutely want tax reform, but-- >>, but here is the first piece to it. all right? when we have a tax code that's 7500 pages that none of us reads. none of us understands. that's the core of the irs problems and the core of so much. let's first get a simple, easy tax system that we can all work with and understand.

let's not just the tax system for social policy. >> i'm with you all the way, you're not going to get it soon. >> panera bread is in the chair. >> first it was conservative groups and now the wall street journal says the irs slowed tax exemption approval for pro israel groups. would would they do that. the irs was supposed to give special scrutiny to groups, quote, connected to israel, and sent to a special see if the group contradicted the administration's policies. and a chinese company wants into our pork business. they're going to pay 5 billion dollars cash to do it. maybe 20 million pigs a year has something to do with it. i promise details whether you want them or not the. and panera bread founder is still with us. how is he preparing for

obamacare, cutting workers, no more expansion? he's shaking his head. back in a moment.

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>> irresistible, right? we're talking about pigs. the largest pork producer in the world. smithfield foods is being bought by a chinese company, 5 billion dollars in cash. and it processes 20 million hogs a year and the stock will be up big when it opens in just a few minutes. maybe 25% up. the dow will open just a little bit lower. maybe 60, 70, 80 points, we're told that it's the sharp rise in interest rates that's doing it. from chicago, here is larry levin. all right. 2.18% on the 10-year treasury, rates up to that level. one-year high. that's what's doing it? that's what's causing a modest selloff this morning? is it? >> yeah, a modest selloff, 6 points in the s&p. the overnight high is 10 or 12 higher than what we're at. set highs yesterday.

and a little bit of a selloff, but i think you'll see eventually today, the market will continue on the way we're going. stuart: we're back to square one, this market wants to go up. >> we were talking, it wasn't that long ago, we were at 1550, we traded 1660, 100 points not a long time. >> and larry it's right. larry levin in chicago, thank you very much indeed. you're saying that the move hyped the economy's expansion is dirt cheap money. are you worried when the 10-year is 2.1%. >> this is very cheap. stuart: do you think it will affect the housing market if the mortgage rates edge up to 4%? >> it's almost nothing. stuart: my first mortgage was 12 1/2%. >> i can remember when we were pushing 18%. i mean, it goes far back. 12% seemed cheap back again. stuart: i remember when a

three-month bill yielded 13%. unbelievable. the opening bell is about to clang on wall street and we're looking for 60 point drop in the dow jones industrial average. [bell ringing] most analysts are saying look, it's the 2% yield on the 10-year treasury, that's what's doing it. we'll see how we close today. remember, we closed yesterday at an all-time high. 15-4 was the level. now, we're down 9 in the very, very early going and the only trend is down this wednesday morning. now, smithfield foods. the largest pork processing and producer is bought by a chinese company. smith field has more than 50 brands of processed pork product. and china has a purity problem. and essentially quality reputation and the stock is up 24 1/2% in the very early going. 32 on smithfield. high profits and strong sales at

the designer, michael kors. nicole, i want the stock price and want to know, are you a michael kors kind of person? >> [inaudible] you know, it would have been an interesting response, but we can't hear what she's actually saying. suffice to say that kors is at 63. now we can hear her, go ahead, are you a kors person, nicole? >> most people would be hot on michael kors. the stock is up over 2%. it's been a winner year to date. they came out with the fourth quarter numbers and had broad sales growth and it's definitely a complete winner. >> okay. and it's democratic luxury, isn't it? it's affordable luxury. >> the same category and i guess you're right. i'll leave it alone. >> i've got to ask you, is it-- >> i think it's a little more expensive than coach, you call democratic luxury. i think that michael course is more. >> hold on a second, which is

more-- >> panera bread, is that a democratic luxury? >> absolutely, because people generally want something better. stuart: and an average check size, 7, 8 bucks. >> 8 or $9. the average income of a panera customer is $75,000. stuart: would you object if i were to say you were the michael kors of the restaurant business? >>, oh, absolutely. stuart: and we mentioned tim cook, coolness, wearable computers and apple tv. nothing is moving. the stock is up a buck at 4.42 and change. another headache for facebook. we heard the news last week, teens are migrating to twitter away from facebook and according to the fan times, major advertisers have suspended facebook marketing campaigns

after the ads appeared alongside offensive posts. and facebook stock down to the $23 level. it's been straight down for a week. let's stay on your money and bring in keith fitz-gerald from portland, oregon. hi, keith. everyone is saying the dow is down. it's down 100 points at the moment and saying it's because the 10-year treasury, interest rates there on above 2%, is that why things are going down? >> yeah, in the very storm, that's logical, stuart. a lot of complicated stuff behind the scenes, arbitrage, interest rate, and long and short of it. stuart: it's not going to last. orthothings last? >> no, i think that bernanke has the foot on the printing press gas pedal. longer term we're going to run up as long as he's got that in his background or the mo. stuart: the premise of the show,

look, you've got three legs of the school supporting economic recovery. you've got the stock market up and housing doing well and a boom in domestic energy production and ben is still printing money. kind of a sweet spot for stocks. >> i agree 100% on that and a strong confluence of factors that wants to keep money moving and i think you'd be -- it's not -- i have rented lips today. stuart, it's no longer don't fight the fed. it's don't fight the feds plural. every bank in the world wants this and that's what they're doing. >> give me an update on japan. the government of the central bank of japan has been printing up a storm. how is that going? >> well, so far for the stock market perspective it's doing very, very well. the japanese corporations are seeing record profit and the consumers are beginning to spend again. and tiffany's beat strongly, beat on 21% increase, same-store sales over there in japan and that's beginning to hit home. and however, longer term.

the significance weakness and japanese fired the first shot and in the currency war, i'm leery of this. >> for now, it's another element of the sweet spot for america, is that correct? >> absolutely. go for it. >> so we're all on the same page. a positive look for the stock market. we appreciate it. and we have yahoo!'s marisa mayer, on a spending spree. a bid for hulu, but a guest says she's showing off and moving his worth as a ceo. i guess this guest is not a stockholder because the stock has doubled since she's on board. panera co-founder, ron shake with us, he's sticking it out for the entire year, let's get a question for you in the restaurant business. yes, stuart. stuart: obamacare, here it comes. what are you doing about it?

>> it's another cost. i mean, simply put, it's factored in and it's going to affect the competitive universe and everybody in it. what we're doing is what we've always done. tried to take good care of our people. stuart: yeah, yeah. >> run a good restaurant. stuart: that's good pr. >> no, no. stuart: are you going to cut? >> absolutely not. stuart: not going to make people part-time into full-time? >> am i going to do that when the chicken prices go? up what i'm doing is what i've always done. provide the best alternative for our guests and when we do that, people come to us and we're able to pay our people. the truth of the matter is we've been offering benefits to employees for a decade. the people that are going to have a challenge with obamacare are the folks that have never taken care of their people. >> are you going to push them out on exchanges for subsidized care? because you've got to meet a certain standard for the health insurance that you offer and that might be a high standard, a very expensive standard. >> we're not going to take any action, relative to our own people, our job is to take care

of our people. when we take care of our people, they're able to give to you as a guest. >> so you accept that your cost structure is going up. >> deminimusly. it's a relatively small cost in the relative picture of things. it's not driving our picture and the focus on obamacare as a key driver, sure, it's an element of it, but that's a part of the full picture. are you that different from other people in the the restaurant business? you're taking a different approach. i know chains that are cutting back hours, putting people into part-time work not full-time work. >> and they're in trouble-- >> it's a pr problem not a cost problem. >> the reality, the people that you work with every day as simply malleable components in the whole package. what you end up getting are people that are disconnected and not able to care for your guests. the folks that work for us, we want to take care of them.

i want to pay for more. so you are determined to have the high end image? >> no, i'm determined to give you when you walk into panera a great experience and the means to giving you a great experience are the people that come in every day. >> okay, are you going to expand more in the future? >> we've been opening a restaurant every 60, 70 hours for the last seven years and we're going to continue to do that. expanding our growth rate. >> regardless of obamacare, everything that happens. >> absolutely, we did it through the recession, through the heights of the recession, we continued to expand and i'll tell you what else we did. we're contrarian and we invested in the customer experience at a time when they were pulling out of the p and l. you know we found our market share went up and our experience got to be better and we ended up tripling the stock for the re-- >> when are you expanding overseas, not just, but canada and europe. >> one step at a time.

people come in and talk station, all we do is take markets one at a time. stuart: you you would have done your stock a power of good if you said, stuart, i'm expanding dramatically in asia and here and there. >> we take it one step a time. if anybody looks at the stock, we've delivered essentially better than any other restaurant. >> stay with us, you've got a lot more questions to answer. by the way, your stock is down a buck. >> stuart. >> what did you do to me he. >> a good commercial. 192. >> all time high. >> and with the dow down 85. here is what's moving. a chinese group agreed to buy smithfield, 5 billion cash and smithfield is up. nike cutting ties with lance armstrong's livestrong charity. and wal-mart pleads guilty in hazardous waste cases filed in

california. it will pay more than 8 m, with an m, to the federal government, is that 80 million? >> yeah, 80 million, i believe. tesla hitting a new all time high. more on that coming up in the program. 110 on tesla right now. check apple after tim cook spoke, 443, up 2 bucks. wall street journal reporting that morgan stanley's real estate unit is looking to raise 1 in 3 billion dollars. and that goes the stock, 16 cents. strong sales at michael kors and now it's down 61 to the democratic luxury maker of handbags and all. to the big board, we're down 87 points, right in line with what was expected. time is money, 30 seconds, let's get on with it. here is what else we've got for you. dr. ben carson joins us. he is back. what's he decided for his future? politics? tv? he's going to tell us. >> california's oil boom could

be a bust before it starts. no less than ten bills in the state legislature to stop fracking. we'll ask our voice of california will they frack or not. and more women are the breadwinners in their families than ever before. a big reason, single motherhood. we'll talk about that, too. then we have the pagan losers, that's what i call europeans. they're at it again, saying austerity doesn't work, but alas, there may be more hope in france, of all places? we'll get the french refugee's reaction after this. but first, on that day 60 years ago, sir edmund henry became the first to the summit of the tallest mountain in the world, that would be everest. attempt to go achieve the t 60 years ago. ♪ ain't no mountain high enough, nothing can keep me from you ♪ clients are always learning more

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>> good morning, good morning. >> count the money, the money. >> count the money. >> count the money. >> count the money. >> oh, oh! >> a pretty good sound bite there. count the money is what they're saying. and brussels, speaking of europe, enough is enough. and shifting away from austerity. downgrade the austerity pedal. and looked like the frugal fatigue is getting to them over there. we're going to stay on europe and bring in our first french refugee. france's central banker is beginning to sound live ben bernanke. he says it's the french central bank, he says government

spending does not work. we are shocked that this is coming from a frenchman, what do you have to say? >> i say what are you doing in france? he should be here with us. stuart: but he is saying that, isn't he? he's taking europe to task and saying, look, you can't keep on spending money because it's not creating jobs, it's not creating real growth. >> i mean, he's right. i mean, look at france, i mean, they're spending-- the government is spending over 55% of gdp. it has very, very generous labor spending packages and yet, unemployment is very high. it's always been very, very high and this massive unemployment among young people and it's not working. and the reason is, they just-- they are the epitome of keynesian economics. the idea that the government can >> who is going to listen to it? what impact can he have? france is run by a socialist, a socialist and prime minister, or

president i should say. and who is going to listen to the guy? >> i mean, hopefully, the french are actually learning some lessons right now. i mean, i know that they've been talking about austerity and the only thing they have h've done promote prosperity. there is a moment i want to believe the french has a brain, too, and say enough is enough he we need to try a different route. the only one they haven't tried is to actually cut spending. there will be some difference, but there's he a moment when your back is on the wall, you have to reform the system. >> brussels is saying today, hey, you in southern europe, we're going to ease off on the austerity. does that mean we're going to let you spend some money? >> i mean, i hate this word austerity. because it means, it means people mean it as if we're' talking about shrinking the size of government when really what it means is raising taxes in the case of europe. if they're meaning cut taxes and

cut spending, that's -- that would be something, but, no, what they're saying, is they're operating under this illusion that actually, a lot of spending has been cut, and that the government is-- which is not the case i don't know what the bureaucrats are thinking, to be honest. stuart: you really sound like an american, despite the accent. that's great. >> i'll take that as a compliment. >> oh, it is, it is a huge compliment. and thank you very much for joining us again. appreciate it. time for the gold report. okay, the dow is down 89, 90 points, when that happens, what happens to gold? up slightly. a $5 gain. and there's this, a look at charity, pay what you can at select panera stores and according to the panera founder, ron shake, it's making a difference. he's with us through 10:00 eastern. find out what's going on with

this company after this. ♪ lean on me ♪

>> panera bread founder ron shake is still with us, gutten

for punishment. he started panera cares, a pay what you can cafe. they have full panera members and the guest decides what he or show is going to pay for the item. so, how many people pay the full price? >> roughly 80%. 20% pay more than full price. they pay it forward and-- >> you're such a socialist. >> stuart, how could you call me a socialist, i created a business with 5 billion dollars market cap. what i'm doing is doing something other than putting a quarter in company's cup. how to take care of each other. >> no what you're doing is trying to build long-term economic value and you see panera cares pass away of doing that in your image part. >> absolutely, not image, it's in reality. panera has a long record of contributing to the communities we op. we built this company by doing

right in these communities. creating community space and when we do that, we win. the way to have economic success is to actually make a difference in the lives of our guests, in the communities in which we operate. that's at the root of panera. >> how many of these cafes do you have. >> five up and doing and serve 1 million through the cafes this year and recently in absolute taken 50 stores and put an item on the menu, pay what you can and pay it forward items. are these, the cafes are low he kated in low income areas or not? >> very ecclectic neighborhoods, all over the mrplace. here is is the point. most people want to do the right thing and they're looking to do the right thing and providing for our communities to take care of each other. >> isn't that the spirit. >> i withdraw my socialist comment. >> well, i won't call you a naked capitalist without any

heart. stuart: well, i am. ron, thank you very much for joining us. we appreciate you being here. >> thank you, sir. >> california, sitting on a gold mine. 15 billion barrels of oil in the amendment ray shale area, all theyyhave to do is go get it. will they? an answer is coming up and that will be new at 10. but first, dr. ben carson on his future plans, he is here. he's going to tell us what he's going to do next. tdd#: 1-800-345-2550 opportunities are waiting to be found in faraway places.

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stuart: wednesday, may 29. look at what we have in this new hour of "varney & company." doctor carson. he is here today. attorney general eric holder should and will leave his job. he is losing the media. california sits on an energy bonanza. we have that story. the irs target errors. we will take a look at you. ♪ stuart: and 80-point loss. interest rates hitting -- charles, will this hit housing?

we got the news that our niche applications were down. what do you make of this? charles: it is interesting. prices are starting to go up and rates are starting to go up. that ship may be sailing. it is hard to figure. stuart: if i was trying to buy a house, i would jump in pretty fast. charles: oh, yeah. you mentioned morgan stanley. it is their eighth find to buy real estate. this time taking a chunk of money from china to buy properties. stuart: they are rated between one and $3 billion.

all right. i want to get to the call. we have that big stock story this morning. nicole: chinese acquisition story. there is so much that goes along with this. chinese media producer shane way international has agreed to buy. here is the other part of the story. this is the largest takeover of a u.s. company by a chinese buyer should it get past. there will be heavy regulatory scrutiny on this one. stuart: 20 million pigs a year. 6 billion pounds. nicole: these are real pigs.

not phantom pigs that you talk about in farmville. [ laughter ] stuart: bank net income was up 15%. that is helping the stock market. we were down about 80. we are down 60. that is not much of a loss. charles: two days in a row, the market goes up on what would be good news. i think there is a lot of confusion as to what this market wants. stuart: about two months ago, doctor carson came on this program. he said he would take some time out of the public spotlight. he said he was going to pray and ask the good lord what he was going to do. doctor carson is with us now.

what advice did you receive from the almighty, sir? >> first of all, it was nice taking a break from the media. [ laughter ] >> i have had a chance to really think things over. one of the things that i will be doing is writing another book. tentatively called "saving our future." there are some who are saying we are not going downhill at all. stuart: a man who writes a book about saving the next generation, looking down term down the road will go into a public leadership role. >> that remains to be seen. i must say as i have traveled around the country these last couple months, i have been

overwhelmed by the response of the crowds. even here at johns hopkins. i have gotten almost a thousand e-mails from colleagues telling me how much they support what i am saying and doing. what i have discovered is a lot of people are just afraid. they have been beaten down. this is america. i want people to realize this is the land of the free and the home of the brave. you cannot be free without being brave. you will have to stand up. that is what i will be working on. we do not have to submit to all of these things that are going on. we can stand up and we can fight. we are the can-do people. stuart: people love to hear this. you are very popular.

would you stay right there for a second. i am going to break away for a moment. i am going to go to rich edson washington. president obama is on the move today. give me his agenda. rich: fundraisers. president obama, democrats are eyeing a gain of 17 seats in 2014. that would get the president control of the house. stuart: okay. he is off fundraising in chicago. doctor carson is still with us. the president is going to chicago fundraising. any reaction to that? >> the politician and chief is doing what he does. tens of millions of eligible

voters did not vote during the last election. they felt this in franchise. they felt nobody represents them. this is something that we can and must change. there are those of us who have political scandals and have no intention of ever becoming embroiled in them. we need to become more involved. stuart: you are not staking out territory on the left or right. >> no. it is not ideology at all. everybody wants to put me into a political container. i am talking about common sense. i am talking about american values. we are like the frog in the saucepan. somebody has turned the heat up and we are not react to. we can do this.

i am absolutely convinced that we can do this. stuart: will you give us any hints about your political future? >> the hand that i will give you is that it is in the hands of god and in the hands of the people. it is not in the hands of the political system. stuart: i trust he will come back on this program fairly soon, will you, doctor? >> absolutely. stuart: that soundbite, doctor, will live forever. thank you very much, indeed. doctor carson. back to the reality of wall street. i have netflix up. could it be because of something that amazon is doing? nicole: do you think, stuart, competition is good? i think netflix and amazon think

it is a good thing too. streaming is the wave of the future. forget television as you know it. amazon.com says it will make five original television series. they are using viewer feedback. they are continuing with another so that they have. in the meantime they are saying this is where the demand is. streaming video. stuart: we showed netflix stock up. you are telling us that it is amazon that will do five original series and stream itself. nicole: it really could be a correlation. the product of the streaming is hot. whether it is netflix that you use or amazon or one of the other great providers, it is obviously an area that will be

hot. stuart: frightening for those in the tv world. charles: it has to be a hit. netflix took a big hit yesterday. it could be an amazing opportunity for someone as seasoned as you. stuart: with such common sense. [ laughter ] stuart: let's get to this. california is sitting on nearly 15 billion barrels of oil. that is a gold mine. it could make california budget service a reality. even governor gerri brown says the potential from fracking is huge. larry elder is back with us.

i know where you are coming from. i know what you are going to say. we should be fracking. we have it, we should go get it. will california go get it? >> well, stuart, when jerry brown is the most intelligent guy in the room, that is a sign that the apocalypse is here. he is the one that allowed collective bargaining for the unions some 30 years ago. that is why we are facing the deficit that we are now. he is trying to hold the left wing democrats at bay. imagine this, stuart, a left-wing democrat under estimating the amount that he had to spend. [ laughter ] stuart: you are right. that is exactly what is happening. answer the question.

are you people out there, are you going to frack? >> on the one hand, you have the powerful lobbies and on the other hand you have the tax spenders who do not want to cut anything. we do not want to cut anything in california. we want to spend, spend, spend. this will give us the money to do so. stuart: you have answered the question. yes, you are going to frack because you have to. you say eventually. a couple years down the road? >> when you have to sort through all these bills and try to cram something through, it eventually it will happen. it may take a few months, it may take a year or two, but the money is too great.

stuart: you are on a radio show. it is a very popular radio show. everyone knows you are a conservative. >> libertarian. stuart: what do the callers say on the issue of fracking? everybody knows where you are coming from. where is the audience coming from, mostly? >> most of my audience just want things to go well. they want schools to work. they want to make sure that the streets are clean. they want the potholes filled. people are frustrated by the fact that government does not work in california. we tax, we spend, we regulate. it is insanity.

stuart: california will be posted to fracking because you are desperate for the money. doctor carson just said i have a lot of common sense. i think you do, too, larry. come back anytime you would like. it is always great to see you. the dow is down. the "wall street journal" says the irs also slowed tax exemption approval for pro- israel groups. more outrage on that next. ♪ vo: traveling you definitely end up meeting a lot more people but

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♪ the company that owns news corporation looking for potential buyers. it has switched to an all digital format. nissan and valve are suspending their ads on facebook. the suspension comes after complaints on twitter. facebook is way down. switzerland, the biggest tax haven for offshore wealth has proposed a bill that would allow swiss banks to cooperate with the united states and irs. coming up next, we will not let

the irs scandal go away. more targeting from the irs. this time pro- israel groups targeted during the election. ♪ we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing hat ha't changed much is the official retirement age. ♪ the question is how do you make su you have the money you need to enjoy all of these years. ♪

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this amounts to a staggering $18 million a year. this from the same state that gave welfare to the boston bombing suspects. the plot thickens for the rs scandal. the irs also slowed tax exempt for pro- israel groups. we are now bringing in mike kelly from pennsylvania. a lot of our viewers are worried about the irs scandal. they want to get to the bottom of it. they are worried that come the congressional summer recess, the scandal just goes away. >> no. that will not happen, stuart. we will be conducting more hearings and more investigations as time goes forward. the american people have the

right to know. we have the responsibility to find out for them. this is something of an irs that has ran wild. we know this one comes much closer to home. it is not just chilling anymore. this is downright freezing. we are losing the faith and confidence of the american people in the government. if they cannot trust those that they have elected, my goodness, who can they trust? the most important part is the faith that the american people have to have. we have to delve deeper and deeper into this. stuart: i have gone further than that. in my opinion, the machinery of government was used to intimidate the president's political opponents during the election campaign last year.

it was not just the irs. it was a broad base. i've broadened it out. i said the machinery of government was used against the president's opponents. have i gone too far? >> no. i do not think you have gone too far. they have to be used responsibly. we have the oversight part of congress. we have the responsibility to find out and reign it in if it is out of control. stuart: look, you are in recess for the moment for the memorial day holiday. then we have july 4, independent day holiday. did you have a long summer

recess. this whole thing could disappear because you guys are out of town. >> no. no. that is not going to happen. we are still in touch all the time. no farther away from a couple hours from getting back to doing what the people elected us to do. if we cannot walk and chew gum, we should not be there. the american people need to stop asking for good government, they need to start demanding that they get the good government that they deserve. i am committed to that. the facts will lead us to what happened here. we have to find a way to frame this in. i do not care what we have to do. it has to be done. it has to be done now.

if not now, if not by us, when will it be done and who will do it? stuart: mike kelly. thank you for joining us. we do appreciate it. >> thank you. stuart: five states considering some type of tax reform. thirty-five states. illinois is not one of them. it is do or die time there, by the way. we will deal with illinois next. ♪ ♪

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>> sudden and sharp drop for the moorgt in the space of five minutes, minus 60 to minus 118. nothing on the radar that suggests why this happened all of the sudden, but we are checking for you. we are going to look at the year own the ten-year treasury. if that spiked, that will be the reason for the sudden sell off. what did you say, justin? it did not spike? no, nothing there. charles, come on, great market maven. what's the reason de jure what's going on? >> i don't know, give me more time. >> that's pathetic. >> i know. >> we are trying to make money, and here's charles with an idea, revisiting ballard power. >> right. we did this yesterday. there was a big contract this morning with the chinese bus manufacturer. the stock was high as 2.35, and

anyone who bought it yesterday from this show was up -- >> you recommended it about this time 24 hours ago on this program, you said, ballard power, you like it, it's going up. >> a dollar-45, a buck-fifty, and to that move, that kind of a move in 24 hours, take profit. >> you think most of the move was because of the announce. of the contract with the chinese bus company this morning? >> oh, absolutely. >> not necessarily your recommendation of it yesterday. >> it was up yesterday a little bit. we chased a little bit, but it was, it made a 30% move yesterday. moves in volume will come ahead in news. i hate to say 80-90% of news is leaked. somebody might have known something. we got lucky. hopefully they take 30-60% profit. >> charles, this happens too often to be luck. you're on a role. >> i work hard. i work hard. i heard guys talking about --

>> why is the market down suddenly down 125? >> you know what, i think you were bullish for a split second. >> me? [laughter] it's all my fault? that's the best you have? >> i'll have it for you in a minute. >> dr. ben carson says i have a great deal of common sense. >> you do. that's why the show is successful. >> you changed the subject to move on. all right. 35 states considering some sort of tax reform means lower corporate tax rates, lower rates for individuals. illinois not one of the 35, even though that state is in the thee worst financial state of any state in america. here is illinois policy president john tillman. welcome to the program. >> great to be with you again. >> what's first, illinois bust or tax reform in illinois? >> tax reform is not on the horizon, and, in fact, they are trying to put in place a progressive tax. one of the -- >> more taxes? >> more taxes, up to 11%. the rate is flat at 5%, raised

taxes in january 2011, $7 billion, largest tax hike in history. it's not enough, they want more. >> how bad -- they are in the worst shape of anywhere in america. is that true? >> it is true. 203 trillion in unfunded debt, that's 141,000 per household, and it's a struggles of the households who wants to keep it and the government sec sore who wants that money in retirement. that's why the state is insolvent in my view. >> what happens politically? is there any chance that the democrats will lose control of the state and somebody will reverse this? >> well, there's a gubernatorial election in 2014. illinois will be in play of. the state is conserve tifer outside chicago. the last time the democratic governor who barely prevailed won three counties, 99 counties went to the republicans. >> there's a shot of republicans winning illinois? >> there is.

if there's an agenda to put us on the correct path, lower taxes, lower pending, reform taxes and education and spending, i think they are competitive. >> the state legislature is always going to be democrat. >> we'll see. >> you're not going to dispute that. >> i'm not, but the democrats have soup or majority, unlikely for the republicans to take back the house and senate. >> what about the hoopla, the left taking a victory lap in california from minus 60 to plus 4 billion. listen, all you have to do is raise tarkses on the rich and make it retroactive. >> we'll see how long it lasts. they raise taxes, but prospectively, people move out of the state in a higher rate. >> a pr point of view, it's a message for people. >> well, -- >> the guy next door and get it straight. >> remember what's going on. it's not enough money. they raised taxes on the wealthy in california. it's not enough money because until you put spending discipline in california or here

in new york or illinois, they keep asking for more, and the voters have to do that. >> are they going to go bust in illinois? >> we might one day if something doesn't change. states can't go bankrupt -- >> do you have a time on it? >> another 18 months to two and a half, three years before we see draconian measures. >> all right. john tillman, thank you for joining us, sir. >> great to be with you. >> i'll make the call. attorney general, eric holder, soon to be out of a job. my take on that is next. we've completely integrated every step of the process, mang it easi to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and exececute faster with r more intuiti trade ticket. i'm greg stevens, and i helped create fidelity's options platform.

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>> let's get at it. here's r here's my take on attorney regime eric holder. i think he's soop to be out of a job, the first senior member of the obama team to be forced out. he went after the specifically, james rose p at fox news, investigating him as a co-conspirator, con conspirator, that did not go done well. first time in four years, the media walked away from the president. this is a big deal because the democrats and president rely heavily on media support. watch out, in the 20 # 14 elections if the "new york times" and nbc are not solidly behind the administration, and if eric holder is still attorney general, big trouble. this is different from benghazi

or the irs scandals. there it's a question of who did what and when and who knew it. of course, it was good theater too. who could resist the sight of lois lerner rushing from capitol hill to take a tax funded vacation. the journalists in pursuit of the story, but with eric holder, it's the journalist pursueded, the media's investigated, and even though it's just doing its job, this is too much. even if it is fox being singled out, that's just beyond the pale. may 15th, holder told a hearing under oath he knew nothing about targeting of journalists and didn't like the idea, but he signed off on the investigation of james rosen and discussed it. the justice department shoppedded around for a judge who would agree. can you imagine what kind of summer the administration will have if eric holder is still in office and outraged media

demands resignation? not beginning to happen. surely mr. holder will go and go he should. fortunately, judge napalitano is here to pass judgment on what you just heard. right or am i right? >> full agreement for this reason because democrats begun to complain, how can we have an attorney general who appears to have misled, at best, lied, at worst, before a congressional committee? remember, one of the predecessors, john mitchell, nixon administration fame, went to federal prison in part for lying to a congressional committee. this is not a tollerble situation. i believe that a liberal democrat from your favorite sate of california has been quoted on our air and elsewhere as saying

this is simply not tollerble, and we must get to the bottom of this. when democrats say this out loud, they are deserts the president on this issue. >> david axelrod questioned holder of being in that position and continues to. >> the other side is there's no closer friend to barack obama in the entire administration than eric holder. they have been buddies for years. one could have said the same about nixon and john mitchell. they were law partnerssfor years. >> if holder pushes the media away from president obama, then holder goes. >> under the bus. >> absolutely. >> yeah. >> another issue if you would. >> don't ask about the coffee. >> i am. let me read the story and tell the viewers. [laughter] all right. let's see now. the top court in new york stay is going to decide which starbucks workers are eligible for tips left in the tip jar on the counter. managers and baa rise thats, who

deserves the tips? judge, why on earth is the state legislature involved in starbucks and who gets the tip money? >> because they think they can regulate any behavior and tax anything to a heart's delight. they enactedded a statute which says agents of management are not entitled to tips. it didn't define "agents," so the shift managers and the assistant managers are saying, we're not agents of management, but employees like everyone else. they say it you share, we get less, and we are here because we make money on tips. >> right. >> instead of the owner of the business deciding, which is the way the free market would have it, the legislature -- the legislature used this ambiguous word "agents," and the courts now have to decide what is meant by "agents," it's a pathetic mess in the state of new york.

>> that means that every single industry where tips are given, it is the legislature and the courts who are going to decide where that tip money goes, how it's proportioned and allocated. >> yes. >> that is ridiculous. >> you might not know it and will not like it, but the legislature of the state of new york has a sorry history of legislating the minutia of how businesses are operated in this state, the financial capital of the country and arguably the financial capital of the world, new york city, and the legislature of the state of new york loves to micromanage here, particularly companies that are headquartered elsewhere. >> oh, dear. >> starbucks, a plim example. >> another sorry story. sorry to burden with you. >> don't look for a free market ending, but the court to be as meddlesome. >> why look for a free market ending in the state of new york? judge, thanks a lot. >> pleasure. >> yahoo''s new chief spends

big, but just showing off with no plan for the future? we'll try to have a reason why the dow's down 130.

>> student loan company, two announcements, first, plans to split into two separate publicly traded companies, one focusing on education loan management, and the other on consumer banking operations. okay. got it. don't say congress is good for

nothing. nearly 20% of the laws passed in the last few years were to, get this, name post offices. meanwhile, the u.s. postal service is losing money, on the brink of it. moore county in new mexico is the first in the nation to ban natural gas fracking and oil drilling. the goal is to protect the water supply. yahoo's ceo making some major moves lately from buying tumblr to bidding on yahoo, but do they know what they want to be? is she really that successful? stock price doubled. that's good. we'll discuss it next. where sleepless nights yield to restful sleep, and lunesta eszopione can help you get there, like it has for so many people before. do not take lunesta if you are allergic to anything in it. when taking lunesta, don't drive or operate machinery until you feel fully awake. walking, eating, driving or engagi in other activities

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which includes investment oectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. >> down l moments ago, i said that eric holder, i think, will be forced out of attorney general. well, we just got this into the news room. eric holder holds meetings with the bureau chevres of major news organizations in the next few days, part of the department's review conducting investigations that involve reporters. the big board for a second, we have to explain this. the dow off 143 points. it was a sudden drop. i give you the front page of today's "usa today's" newspaper, bull run gets solid footing. charles says that that has jinxed the market, that it's blue-collar when you go out there and say, oh, look what the bulls are doing and now they retreat. weir off 143. sticking with that? >> that's all i got and bad

economic news from europe. >> another stock that you like that we're going to make money on. this is fiberonics. >> we were up four bucks on it, now just two and a half. the center that controls parents for medicare and medicaid rejected reimburressment for the that was a risk. the stock is taking somewhat of a hit, but it's a hold here. >> the tide turning, your run of incredible predictions is over. >> well, i took a cheek on that one. you know, the stock was indicating to be down four bucks, just down a buck and a half. that's a positive. >> didn't you recommend michael not too long ago? >> it was sloppy, the stock up two bucks. i would take profit since it is beat here. >> yeah because they had the announcement, profits -- >> right. >> -- today trong. >> the stock up, double chart, and the guidance was sloppy. surprised the stock is up.

>> getting something out of it? >> absolutely, absolutely. >> take your money off the table. >> absolutely. >> you realize what they said? half your family shops there. mai taking over as yahoo's chief last yearings but thins then, yahoo paid $30 million to buy news summary app summary, bought tumblr with reports she's bidding for hulu. next guest says it's all just meyer showing off, all flat. bruce is here. you know, you have a whrot of nerve, bruce. that lady doubled the stock price since she came on board, and you say she's showing up, there's no substance here? juch that. -- justify that. >> well, that's right. stock is up 70%, stuart, since she came on board, but she's showing off to wall street with $4 billion to spend, using the balance sheet to invigorate the brand. look at things they bought.

there's flickr and delicious, they disappeared. they don't do anything anymore. the biggest problem is she shows off to wall street, but tumblr is for teens. that's where they see their future. the question is once the big media company takes over the hip, cool tech company, can they keep it going? you know, the first thing she said was we promise not to skew it up. >> you can't blame, and yahoo is an old lying company. i don't know when it was founded, but i've dealt with it for 15-20 years as least, in the tech world, that's old. i can't blame them for buying up a company that deals with teenagers to try to reinvigorate and bring youth to their public image. i can't fault them for that. >> no, you're right. that's what they need to do. they need to reenvision rate the image; however, you said it you're. you have been dealing with ya too for 15-20 years.

to the teens that yahoo wants, it's like ibm or ford. they've been around forever. they are not a cool, hip tech company, and that's what these kids want. this is like them coming to you or i for posting their stuff. it's not going to happen. they are not going to be able to keep the brand going the way it is. watch, the founders got golden cuffs i'm sure, but as soon as they are off, they are ought of there. there's no way an old company keeps a young company hip, cool, have the appearance of cool, but they can't actually be cool. >> yeah, but, bruce, on the other hand, you know, seems like marissa went back to the play book, ceo chief excitement officer, doing that tremendously. you got to -- they can't do it organically so outside of acquisitions, how else would they make the leap into being relevant again? >> well, i'm not so sure they can't do it organically. they had 700 million users. with that many people, you can provide services people want. there's plenty of companies that do that. plenty of companies that

reinvent themselves and make themselves relevant to a younger consumer on a regular basis, but it has to be in the fabric of who the company is. you know, you can't just put lipstick on a pig and expect to get a fashion model. i'm not suggesting they are a pig, but, however, they are different than what they tell the world they are today. >> interesting, interesting take. thank you very much for joining us. i'll watch the stock because that tells you everything. >> that's the way to do it. thanks for having me. >> it is. thank you, bruce. the dow down now 165 points, and we have not got a specific reason why it's happening. >> four out of five days, selling begets selling, and people saying if we go down, i'm going to take profits. >> not seen that for a long time. mums increasingly the breadwinners these days, and single mothers could be the reason why. charles reacts to this in a moment. ♪ [ cows moo ] [ sizzling ]

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>> check out the study from the research people, nearly 40% of american families are headed by a mother, a woman, who is the family breadwinner. the number of married mothers out earning husbands is nearly quadrupled. another stat. single mothers who are the only providers for the families, 25% of the american families headed

by a single mother. charles, you have reactions to that. >> yeah, absolutely. it's one of the things, stuart, we're in a country where we don't touch social issues anymore. let's live and let be, and we take our cues from hollywood, and it's cool and hip for women to go out and have kids without being married, and there's a guygan tick social and economic impact to that. there's studies done years ago saying it cost taxpayers over a hundred billion dollars to help support these families, but the number, the impact greater than that to the families, to the kids, and abilities to make it in society is hard to even quantify. >> could you get elected to the presidency of the united states if that candidate said, don't do that, enough with the single family, single parent families, enough of single wedlock births. >> i pray you could, but strongly disappointed president obama is not stronger on this sort of issue. i know what the hip crowd, it's not a big deal, but there's not one single good r and b artist

who has not made a song about their mother or grandmother because they were the sole bred wanier. yesterday, i joked around about engagement rings talking about tiffany's. the romans gave engagement ring with a key attached to it. the key represented unlocking prosperity. that's what marriage does, unlocks social and economic prosperity realizing then we have to realize it now. >> fascinating charles. a found -- fountain of information. >> thanks. >> we'll be back in one minute. we learned a lot of us have known someone who's lived well into tir 90s. and that's a gre thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ t question is how do you make sure you have the money you need to enjoy all of these years. ♪

vo: ta friend under water isnd usomething completely different. to enjoy all of these years. i met a turtle friend today so, you don't get that very often. it seemed like it was mo than happy to have us in his home. so beautiful. avo: more travel. more options. more personal. whatever you're looking for expedia has more ways to help you find yours.

>> i trust you'll come back on the program fairly soon, will you, doctor? >> absolutely. i love coming to your program because you have common sense. >> well, oh, that and -- >> and charles too. >> charles does tto, but that sound bite, doctor, will live forever. you areegoing to see that frequently on this program, dr. ben carson. all right. connell, it's yours.

>> writing his own prescriptions, that doctor, you'll replay that a million times. all right. in the markett now, the big sell off all about preparing for life without the fed, how investors are k looing ahead to when ben bernanke and company cash out and stop pumping the cash. the hour.k about that throughout what to do with the guys, republicans looking to use the ongoing irs targeting scandal as a reason to just reform the tax system. we have new ideas for you straight ahead. tim cook talking taxes again, the apple ceo says his company is paying its fair share, new comments from him in california, and then more and more mothers becoming the chief breadwinner for the entire family. ♪ >> dagen off today, but we have a lotto