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tv   Varney Company  FOX Business  May 30, 2013 9:20am-11:01am EDT

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in. and calling mars a fixer upper planet. and the said he's expanding the supercharging networks and possible, get this, to drive from new york to los angeles without gasoline, all for free. liz, are you fired up for the end of the world. liz: i love what he said about mars being a fixer upper planet and he could make it work. yeah, with a lot of u.s. tax credits. charles: yeah. liz: i think he's got to fix the tesla bart first which konks out after 50 miles or-- >> he's going to be pissed that you said that. after 60 miles. liz: a half hour, the range of it. that's why he needs more tech for your money. charles: and let's-- you know, remind that tesla did
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get a chunk of u.s. money and the stock went higher after that happened and there's no doubt that he's been able to play the system and get both sides of it. to your original point on the earth coming to an end, i always say that's not one thing you want to tout, you can't take a victory lap. if you're right, too bad, so what. liz: none of us get out of this life alive. enjoy the ride while we're here and be a good person. charles: i hear you, great words. let's get back to the economy on this planet. we want to bring in gerard. and we got the gdp numbers and the joble lesless claims and it to be more of the same and the economy bumping along. i've got to hit that you're somewhat optimistic? >> i guess i'm not so optimistic that things are going to change a lot going forward, that we're suddenly going to see the economy accelerate. you're back to 3% or better growth? on the other hand, i do think
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that with every massing quarter, the expansion gets more entrenched and we've talked about the fact of the deleveraging and the household sector is over, that the housing itself is turning around. so, i mean, the economy is strengthening, but, again, it still has challenges, and so i think on balance, you can't be too optimistic in terms of the pace of growth that we're likely to see. >> and having said that, you know, this was maybe three years ago and you made the statements, you're absolutely right and 85 billion month after month after month. you've mentioned consumers have cut the household debt by over a trillion dollars. how come all of this money printing by ben bernanke is not working and really, 2% growth, shouldn't it be higher than that? >> exactly. for so many reasons, we should be doing so much better and i think that's why we feel like things are not that great. if not always bad, but not that great because it seems like at this point, the cycle with all
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that we've gone through, we should be doing better and you're exactly right and the fact is that the fed is pumping money into the system and expanding the balance sheet and it isn't producing the kind of results you expect to see. in fact, this is not a monetary problem. it's not the fact that there isn't enough liquidity or interest rates aren't low. it's really that it's been foiled in part by more fiscal policy and in general, i think there's just a lack of confidence on the part of businesses in particular. >> right. >> to be hiring. >> michelle, let's cut to the chase, we've got a minute to go, and ben bernanke echoed what you said. when you are talking fiscal policy, give us what you think they mean. >> i think the fed is worried about fiscal drag. for example, the sequester and what impact it will have on the economy. i'm not worried about that. i think that we don't have particular policies, we're raising interest, excuse me, tax rates and on income earners and
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small businesses. these are the areas we need to see the government trying to inspire them to be expanding and starting up new companies and that's what's missing. there's no animal spirits and i think that that explains a lot why you're only getting 2% growth as opposed to 3% growth. charles: everyone is frustrated with this, ben bernanke, you, the viewers, everyone, it's a huge risk they're taking and so far has not paid for for main street. thanks a lot. appreciate it every time you're on the show. >> thanks. charles: the scandal at the irs isn't going away, even with congress on break, lois lerner is still on paid vacation and you won't believe what she said to republican candidate while at the sec, an outright threat. it goes back more than 15 years. that and the market open next. we went out and asked people a simple question:
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how old is the oldest person you've known we gave peop a sticker and had them show us.
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we learned a lot of us have known someone who's lived well in their 90s. anthat's a great thing. but even though we're living lger, one thing that sn't changed much is the official retirement 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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♪ ♪ break the silence ♪ >> lois lerner has been silent throughout the irs crisis and scandal. and coming up in a few minutes, new revelations of political, even religious targeting. now, you can't even call it bullying during her name at the federal elections commission. we're about a minute from the opening bell. joining us from chicago is scott shellady.
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and market bubbles seem to be trending on twitter, what does it tell us, if anything? >> i think that bubble is kind of not the right word. we're still in trouble here. i think the markets with the numbers we got today show us that we've got an economy that he's still on the precipice. i don't think there's anyway we can take the training wheels off. i'd like to change it from bubbles to training wheels, but right now i don't think we have a chance of pulling the punch bowl away, especially with the numbers we got today. charles: here is the irony, at some point don't we want a great economy and the gdp growth to be 3, 4, 5%? i mean, why are we so afraid of that? >> we shouldn't be afraid of that and those are the old days, but can you imagine we're putting 85 billionndollars and the best we print is a 2.4 gdp. that's embarrassing word. the trending word should be embarrassed or irs, we're nowhere near a bubb
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we've got a managed market and the stock market ahead of itself with a trailing economy. and those things have to meet and they should meet pretty soon. charles: calls could happen. and as you can hear now, that's the opening. [bell ringing] bell futures have started, and the futures were down deeply and gained a whole lot of momentum. ironically enough as the bad news came in, which would suggest more money printing are, the futures began to fade. and real quick, we want to get back to you, scott. from a psychological point of view though, don't markets-- i'm sorry, scott is gone, but from a psychological point of view, usually when everyone is complacent is when things go crazy not when everybody is afraid. so we'll see. right now we've got to go to lauren at the new york stock exchange, facebook has been under pressure, but getting some upgrades. how is the stock doing? >> up 3 1/2% or so, charles. and essentially, facebook is gaining back everything it lost yesterday. for the year the stock is down 12%. the good news today is so far a
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bare of upgrades, both at the capital markets and the at jeffries. and jeffries gave facebook a $32 price target. >> thanks, lauren. i've got two more market movers, minor maker gave a disappointing outlook. this is one we watch, because it's commodities, it's china, it's everything and they're talking about miners cutting their spending and also, while tesla ceo elon musk was talking about going to space we've got to take a look at the company here onnet. that stock is up more than 200% this year at the beginning of trading. just when you thought the irs scandal was gone, congress was off, the house committees are holding hearings next week and 25 tea party groups have filed against the irs. and lois lerner, the woman who
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said she quote, did nothing wrong and refused to answer questions to the contrary, explosive revelations are out about her time at the federal elections commission, talking 1996. she was investigating a republican candidate for senator who was running against dick durbin in illinois and she reportedly told him she would drop the case if he promised to never run for office again. and another report details questions the sec asked while investigating the christian coalition. now, during that case, it was asked, intrusive about the religious and prayers of several people including colonel oliver north. we're not dealing with brainless bureaucrats, but smart people with a hideous agenda willing to do anything to get what they want. liz: we don't need more reports. this is enough and what's scary about the irs story, it's not about what we hear, it's about what we don't hear, what we don't yet know, when we have
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these bureaucrats running around and acting at their own discretion and giving discretion for she is vague mandates and fill in themselves. that's the story about irs and lois lerner at the sec. what else was she doing besides what we're hearing about. >> using positions of power to intimidate people who have different political beliefs than you. different religious beliefs. >> and also ignoring and disporting the laws, via a big government bureaucracy that a lot of people in washington d.c. are cheerleading to get bigger. that's what the american people and viewer is scared about. these guys at the irs are going to be able to impose penalties, for example, on health, even if the health exchanges are not yet booted up. so that's the problem, unchecked power and that's exactly the irony is, what the tea party was railing about and they are getting criticized and attacked for it. charles: and you know, here is the most interesting aspect of it. it felt like for a moment, and i know a lot of viewers felt it,
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we heard from them that maybe this would fade away. it's actually getting bigger and i think it's a good thing. it's not just the irs, it's the federal elections commissions and it could be any other agency being used as a political weapon. and not an impartial referee working on behalf of the american people, but a political weapon to beat down, intimidate, bully, harm political opponents. liz: and this is a mistake that's being made by the white house and the administration. charles: right. liz: the irs is a tax collector, it's not a regulator, it's always fallen down on the job when it acts as a regulator. now it's asked to be a regulator not just for nonprofits, but health reform. charles: wow, another big story we're going to watch for you today. the stock market, well, it is pushing the interest rates to 30 year bonds and higher monthly mortgage payments are probably going up. and who better to ask than our real estate watcher and she actually came in for this one. >> i know that business is booming for you, but this doesn't help? >> it doesn't help, but we have
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to realize honestly, even though rates jumped to 3.9%, refinances fell. refps requests fell 12%. that's that. but the refinances were all right starting to dwindle. people saw this coming. the feds aren't going to pull all the money out right away and not just stop printing. the other thing is that loan application requests for new home purchases rose 2.6%, so people aren't really just stopping purchasing homes. this isn't going to affect having that. it might cause a hiccup, but it won't stop. >> here is the thing now. at some point, the housing rally, let's call it a housing rally. the baton had to go from the morgan stanleys of the world to the morgan stanley of main street. in other words, if people didn't buy when interest rates were low, and they pick up. will they buy, now i've got to go or miss it completely. >> i don't like markets driven by fear first and foremost, but people will continue to buy. i bought my first house at 8% and second 12% and i wasn't
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scared. charles: you're dating yourself. [laughter] >> but what i bought, i bought an affordable house for myself. and that's what people need to understand. and realize at 3.9%, it's not making your mortgage payment go up that much. it really isn't. now, we get up in the 5's and the 8's and then we need to buy less of a house and spend a little less. but this isn't really going to affect -- we're still going to see housing trend upward like we have. charles: i'm looking at a few weird things, i looked at recently lumber prices are down a lot and recently new home sales and data shows that supplies are starting to climb a little bit. have we hit a little bit of a hiccup is this it's been a huge run. >> no, we've hit a good market. when he you have people that are just being able to sell again, because the market is organically ripening and people can come out of short sale or foreclosure, that's a good thing. we'll see inventory in this market no doubt and people are going to sell now that prices
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are rising. charles: okay. well, we thought there would be a bidding war for the pork producer smithfield food. it doesn't look like there will be, lauren, where did the stock open. >> 32.85, down 1 1/2%, you're right we thought we would see a brazilian or a thai company talking about bidding for smithfield, it has not happen. it was a stock that was up at one point 25%. and they did get cut at stevens earlier this morning, charles. charles: the symbol is big and today i think it stands for big loser, what's going on with big lots? >> it's a loser, one of the worst performing stocks on the s&p 500, they reported same-store sales down 2 1/2%, and the first quarter income falling more than 20% so big lots is definitely a big concern for traders on wall street today. charles. >> thanks a lot. we've got more union outrage, believe it or not, and i'm fired
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up about this one. take a look at this guy. i want you to see him. mark rosenthal, president of new york city's largest municipal union, he spends 1400 a month on food all on the union's dime and forecast there say he also sleeps two hours, two hours a day, at the job. why does he still have the job? it's a huge mystery to a lot of people, but we're going to ask the man himself, the judge, at 10:30. you've got to see that. right now i've got your seven early movers. and here is news about telecommunications spending in europe and italy. and remember it was around $40 a share. aviaggio posted earnings and makes chips for smart phones. apple a big customer of theirs. could be good news for apple. emc commenced on a $6 billion share buyback, and that's the
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one-two punch for returning to shareholders who are probably disappointed because the stock itself hasn't done much. first solar, you guys feel bad about missing big moves and chasing, guess what, goldman sachs is chasing this one and upped to a buy from a neutral. express looking pretty good. beat by 2 cents, up the second quarter, full year guidance. yesterday, three retailers had huge sessions, add this one to the list. mbe, a big bet on electricity and vegas, warren buffett must think that vegas is going to keep rocking. finally, a bidding war for clearwire. and dish leaped over sprint and a 30% better offer, but raymond james upped the stock suggesting sprint would come back. we could see a bidding war and the stock could go higher. let's check the big board. not a big move, but the calm before. we'll see. anyway the dow is up about 7 points. now i want you to take a look at this home, a true luxury piece of property in malibu.
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how much do you think it's going for on the market? you might be surprised. it might actually be a steal. that's next. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottde's online banking, i get one view of my bank and brokerage accounts with oneogin... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everi'm with scottrade.e. (announcer) scottrade. awarded five-stars from smartmoney magazine.
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>> here is another case of regulation getting in the way of the free enterprise and it's happening, where else? in new york. the city fines someone from renting out the property using air b and b. it's an on-line apartment renting site for a few days and the service is banned in the big apple. and this time, she's brought us a few luxurious homes and the first one is in malibu,
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california. why would we be surprised by the price on this? >> i definitely don't think it's a steal by any means. no, it's going for almost 10.9 million dollars. sold in 2005 for 4.5, but they've added over 5,000 square feet. this is an exquisite home. 3900 square feet, 4 beds, 4 1/2 bathroom, and on a private beach in malibu. >> i'm not paying that. >> 7.7 million, somebody would get a deal at 10.9 if they did buy it, about a million dollars. >> and you mean like a 50% hair cut. >> 60 cents on the dollar. >> how hold do you think it will be to sell this. >> it's a high demand area. this is' only 79 homes in foreclosure left in malibu and
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244 on the market. >> and vail, colorado. >> it's a hot spot. this is going for 4.5 million dollars, it's a 6 bedroom, 5 bath, 2 fireplaces and last sold in september 2000 for 2.8 million dollars. so, the price is way up on that one as well. charlls: wow. >> from 2000. charles: that's a hot spot. every time i hear it, is this any spot hotter than that. >> vail and aspen, being a colorado girl, i have to give a little bit of credit. charles: and the last one, orlando, florida. >> orlando florida is a hot market right now. 19,000 properties in foreclosure and there's only 1400 listed right now. so, a lot definite manned. and the home is going for 5.4 million dollars and it's 9,000 square feet, 6 bedrooms, 7 baths, 2.4 acres on the water. liz: will those prices come down
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as the other homes or foreclosed on the market. >> yes, and the supply and demand will equal out and hopefully this home sells before that and they make a nice, a pretty penny. taxes on this home are 56,000 a year. >> and taxes in malibu $61,000 a year. >> on the 10 million dollar home. >> in all honesty, i ran mortgage payments and the house in malibu were $48,000 a month. these are cash buyers, they're paying the tacks, and they're not people going to a mortgage. >> it's not a bbg deal? >> it's a huge deal to me. charles: i live in jersey and property taxes, forget about it. >> but i don't think it's a big deal for this buyer, no. charles: you feel good about overall the market. top end, middle, all facets of the market doing well. >> the market is stable, the lower end is a lot of investors,
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fine, those will be homes that personal family home buyers can purchase in the future when their credit gets better and come out of that position. liz: goldman sachs and morgan stanley say the government is going back off dn goldman sachs says rates will move higher and hearing out of deutche bank, too, what's the psychological barrier for people to jump in at a 30-year fixed. is it still that 4% rate? >> i don't think so. i think we've been accustomed to the 4% rate for a while now and so that's where we are mentally, but as they creep up, people will get that realization that they need to buy what they can afford with that rate. unfortunately, we're a bunch of buyers on our payments instead of what the house is truly worth. charles: all i can say uthanks for bringing the houses that make me feel like i live in a wood shack. appreciate it. time for your gold report. gold back above 1400 and i don't know if it's where they stand
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and a lot of people think that gold is severely oversold up here, and it is up today. hey, you really can't make this stuff up. taxpayers shelling out more than 20 million dollars in welfare benefits for, hold on, get this, convicted felons. that's just one thing and that's next. ♪ ♪ far from folsom prison that's where i want to stay ♪ ♪ and i'd let that lonesome whistle blow my blues away ♪ vo: traveling you definitely end up meeting a lot more people but
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a friend under water is something completely different. i met a turtle friend today so, you don't get that very often. it seemed like it was more than happy to have us in his home. so beautiful. avo: more travel. more options. more personal.
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>> three hots and a cot and a million dollars a month. inmates in new jersey's prison are collecting 23 million dollars in unemployment, medicaid, foot stamps and welfare over a 22 month period according to reports from the state comptroller none of which they were entitled to receive. he e-mac, over a million dollars a month going to new jersey prisoners. liz: i can't believe it. time and again, new jersey and other states say we're catching them. and we've got upgraded computers systems and we're going to raise your taxes even though money like this is going out the door. charles: and people talk with recidivism, hell, you get a cell
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phone, and-- what's crazy, people talk about tax and spend, for them these stories are collateral damage, no big deal, just what it takes to have a fair society where the rich pay their -- what they have and should be be paying and everyone else gets what they should get. i mean, this is what happens, when you run these kinds of systems. liz: you're he right, it's not fair to the u.s. taxpayer, it's treated like a rounding error in government. and the disability payments in this country equal the population of greece, that's how many people are getting it and food stamps equal the population or more of spain and that's a big deal when you have that number of people on the dole. charles: here is the irony of course, now they're going to investigate and hire more people to investigate, spend more on the investigation and make promises and maybe throw in a couple more layers of bureaucracy and i bet you, i bet you this stuff still goes on. liz: and our taxes still go up. charles: absolutely amazing. hey, we've got explosive new stories for you in the next hour, we are going to talk to the attorney who's actually representing those 25 tea party groups that are suing the irs.
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and the judge is ready to weigh in on the union boss who works two hours a day, sleeps at his desk, takes home a six-figure paycheck. that's him right there. you don't want to miss it.
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too late. >> you have to be proactive to protect yourself from crime. and that's especially true of identity theft. that's why i'm a member of lifelk. >> announcer: absolutely no one can protect you better than lifelock. [♪...] order now and get this document shredder, a $29 value, free. protect yourself now with lifelock. [click click, ♪...] >> here's what we have. 25 tea party groups suing the irs, eric holders theetreasury secretary, and lois lerner. plus, a top congressmen on the ways and meanings committee with hearings next week wanting tax
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reform. will he get it? by the way, what's that mean? have you seen this in the 400-pound union boss who eats and sleeps on the boss, making a six figure salary working two hours a day, and john stossel loves to ride the bicycle a lot, wears a helmet, but should they be mandated for motorcycles and bicycles? well, we're going to have him here because there's a lot of regulation in that area, and a lot of people think it's good, but we'll see. the jam packed hour for you, buckle up. ♪ >> we got to start with the big board list, took awhile for the motor to heat up, but we have a rally like we thought we would. >> a triple digit close today, poised for that. it's coming on top of the news there's a global rally in markets around the world. central banks in new york and jay --
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japan give upping the monetary policy. >> i saw a report saying optimism is up in europe. when you're at zero, the only place it up. what's going on? >> solar is gaining 9%. goldman sachs upgrading many stocks in the sector including for solar, what they have to say about that. they are giving it a buy from a neutral, giving them a $64 price target from a $43 price trargt noting the company is industry leading backlog. that is what they focus on here. other stocks in the space with memc, electronic, and sun power. solar, the dow's up 17% for the year, the s&p's up just about the same, but first solar up 134% in 2013. >> my goodness. goldman sachs late to the party. 64 is a weak target, get awe with it for now.
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thanks, lauren. now to the lawsuit against the irs. 25 groups suing the irs and top administration officials joining us now, and we have chief council, american center for law and justice represents the groups. welcome to the show. >> thank you for having me. >> what's the thrust, the main point of the lawsuit? >> there's three, we have to increase it to a ten, but of the 25, ten do not have the tax exempt status. it's, obviously, getting the tax exempt status which could have been granted. we amps the questions relevant, but the irs is in lock down now. we need a court order to get ten recognized, there's some groups that lost grants, applied for a grant for educational purposes, awarded grants subject to the c4 status, did not get it in time
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or some not even yet. one grant was $30,000. it's not a lot of money, but to the smaller groups, it was an injux because in reality, it is ongoing right now. >> we hear you can't sue city hall, and targets you go after are bigger than city hall. is this something new? something done regularly? is this how you people about winning this thing in >> well, i've done, you know, organized over a dozen cases at the united states supreme court, some with the federal government and won. this is -- it's -- here's the lawsuit. you can see it. it's an inch thick. it's got a lot of allegations, but you a very unique situation here. running against the government is a tough fight, and it will be a tough fight, but the united states department of treasury in the internal revenue service admitted they engage in up lawful targeting. that in and of itself is a constitutional violation, and
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violates the interim revenue code, and their own manual. they admitted little in a sense making the case easier. the government's beginning to fight aggressively because we get discovery with lois and other people involved in the case to sigh where it went. >> denial of tax exempt status, what are you hearing about potential political audits or any political audits done of the groups or any groups you may know about? >> well, that's a great question because out of nowhere, about a week ago, in the middle of all of this, one of our clients received a -- called a compliance audit, and that is organizations that already have their c4 exempt status, they are tax exempt, but they have to fill out an 8 l #-page intrusive questionnaire online while this mess of the irs is going on. there's enforcement and competitions doing one thing and
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the come prions department doing something else. what's interest here is i work out of loom, i was a trial lawyer and tax exempt was a client. this is what happened here. it was not cause by the line agents. that's absolutely inconnect. this is way up the chain. here's the concern. the irs in the question never really focused on asking them questions that would be legitimate to a determination of exemption. they went after this political, as you mentioned, political fishing exhibition, not just asking what issues youd a -- advocate, but asking what side of the issue you advocate, what's the position on that issue? with z street, a conservative jewish organization took the policy position contrary to the administrations on israel and on the capitol of jerusalem, contrary to the obama administration's position audited as well.
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not just tray party, but conservative organizations generally. >> jay, you named a lot of parties on this one lawsuit. is it harder -- in other words, easier to just call out lois and go after her individually or make it easier this way? >> well, you have to cast a pretty broad net because this was not just lois lerner, and the chance drafting this she was no longer the head of tax exempt which is now the case being on 5d min straitive leave. we cast the net to entities involved in the process, the internal revenue service, department of treasury, and when you sue the united states, you name the attorney general not a defendant, but the service party so the united states is served, all u.s. agencies, they are defendants, and then we have an unknown list and individuals inside the irs, but there's some we don't know who they are. >> jay, i got to let you go, jay, but before i do, do these groups also, real fast, yes or
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no, would they like a formal apology for the actions as well? >> yeah, and i'd like that formal apology in the form of a district court injunction because saying sorry is noted good enough. you don't get to say sorry. >> thanks, jay. >> thanks for having me. >> listen to this video. colorado university graduate said thank you, irs, the tea party deserved it. he asked for signatures and got them. one signed it said, quote, i thought it was funny the irs was doing the right thing, but the wrong thing at the same time. liz, just another indication or example of the sort of blind liberalism amongst our colleges and force fed to the youth. >> there is a fair unbalance going on at the academic level and universities exist on the taxpayers' nickel, but what's striking here is the students signed the card and said, yes,
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discriminate, advocating discriminating against people who don't have the same set of opinions they do. >> i heard steve harvey, the top black radio guy in the country, and he said the same thing. it's interesting that any black person would actually root for anyone to be discriminated against. >> sure. >> we got a residential environmentalist, and today he has a new book, "how to spend $75 billion and make the world a better place," but before we talk about it, i want to ask about california reportedly sitting on 15 billion barrels of oil from the shale, and question is fracking, should california frack? >> simple answer, yes. if you want to deal with global warming, if you want to get rich, and if you want to do something to the environment, yes, frack. it's fine to say we also need to be careful. you know, there are legitimate concerns about fracking, and you
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seed to put audits in place. >> that goes without saying, hey, if i'm in the oil industry, and bp was just, they just looted the joint after the gulf oil thing, i'm afraid to drill. believe me, i'm going to be careful. that's without saying. you don't have to say it. environmentalists hide behind the fact of the matter is they don't like fossil fuels. >> part of it that is really about we want to get rid of coal, and so we should go to gas, but gas is turning out to be a viable option, but in reality, a lot of greens want to go all the way to renewables. that's great in 20-40 years, but they are not there yet. shale gas is. the amazing thing is shale gas is actually made it possible for the u.s. to cut carbon emissions twice as much as what the rest of the world has managed to do, and instead of paying as europe and many others do, you guys have made about 125 billion dollars a year because you have
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cheaper gas because of fracking. >> bringing down pollution, bringing up tax revenue, and creating jobs. golly, makes thing. >> you hear crickets in the environmental groups on that one, but california is worried about earthquakes and the pressure from water pumpedded in to do fracking because of requestings. i get it. possibly 3 million jobs on the shale oil. under pressure to do fracking, but the other said, -- side says, wait a minute, we're jittery about that. >> there are concerns documented that you will get more earthquakes, but remember, that's also true when you do geothermals, when you put water into the ground to heat it up, which you both do in california and many other places. we know this. there's no indication that this is actually going to make bigger quakes. it's really just one of those things where you can measure stuff, but it's not something to concern you. again, you know, get back to the idea saying, hey, there's no
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technology that's risk free. it's really a question saying what kinds of risks are you willing to take? fracking seems to be a pretty low risk, but high paying option. >> it's a smart way to segue into the utopia future of solar and wind and whatever else. speaking of earthquakes and natural disasters, tesla's ceo gave man kind an ultimatum. coal lollize space or face extinction. extreme? >> well, i mean, he runs a space company. he's hawking his own product, but fundamentally, it's an idea where we have this sense that we're kind of running on empty. we're screwing up our environment and doing bad things. look over the last couple hundred years, humanity 1 doing well pulling out most people out of poverty, feed most people, defeated a lot of diseases, and, yes, we're not therings and, yes, we clined up a lot of environmental pollution until past, and remember new york a hundred years ago, a terrible --
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>> not even that long ago. okay. we have come a long way, spend cash according to the book, about $75 billion more to make the world a better place. is that the price tag? >> well, i mean, it's really -- we have asked top economists where to spend money and do enormous good? we focus on things with cute animals or a lot of people screaming, but in reality, it probably some of the little dull issues, but just happens. >> where would we spend the money? >> when we ask the top economists, they found thee best thing to do is actually to focus on getting nutrition to very small kids from 0-22 # year -- 0-2 years old. why? because if you get them nutrition, they don't starve, stunt, or grow up to be small, but they develop their brain and muscles, stay longer in school, and there's studies from guatemala, you go back 40 years ago, you fed villages really well, others you didn't, you got
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away with that 40 years ago. the amazing thing is those guys now make three times as much as the guys who were not well fed. you really have a solution where you can get a circle going, get people much better. >> well fed, well educated, no wars, just that's the utopia world we should be embracing. >> moving towards it. >> rather than talking about outer space now. >> right. >> how to spend $75 billion to make the world a better place, fantastic. appreciate it. >> thanks. >> lauren, ford, answer's yes, someone's driven them lately. shares are high. >> up 2%, a new annual high of 1602 moments ago. rbc capital markets increased the price to 18 bucks and an out perform rating. rbc says ford is going to benefit from i want proving sales in europe and asia. ford sales in the u.s. strong with the f-150 pickup, a strong
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seller, especially recently. general motor shares annual high as well, up 2%. >> taxpayers happy to hear that. the f-150 is no joke. thanks, lawn. we have try medical headlines. first president obama says you can keep your health plan if you want it, but, surprise, that's not the case. the doctor's in, and he's next. we went out and asked peopl a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well to their 90s. and that's a great thing. but even though we're living lonr, one thing that hasn't changed much is the official retirement age. ♪
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the question how do you make sure you have the money you need to enjoy all of these years. ♪
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>> saudi arabia has three nor dead from the sars-related virus bringing the total deaths to 30. after debating throughout the night, the senator allowed illegal immigration to obtain driver's license and get insurance policy for the cars. the number of americans filing for unemployment benefits jumped by 10,000 last week bringing the toal number of americans filing for jobless claims to 354,000. a check on the big boards. so far, we have the modest rally, took a bit, but the dow starting to get in gear. next up, is diet soda as bad for your teeth as meth? another unexpected consequence of obamacare. the man himself here with that and a couple other questions. the doctor's up, and he's next.
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>> if you like your doctor or health care plan, you can keep it. >> how many times has the president said that, if you like your insurance plan, if you like your doctor, you can keep it. that may not be the case. not only could your insurance can canceled, but forced to buy more expensive insurance that's better. well, let's the doctor. now, we've heard this before, but evidence continues to grow those claims about keeping your doctors are not true. >> this is the under belly of
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obama care. this is what this is about. as the law gets implemented, more and more draft regulations get rolled forward to try to figure out how it's going to work. well, here's something i bet everyone thought. well, wait it minute, if we cover preexisting conditions and people up to the age of 26 and add all bells and whistles, what if my policy doesn't cover that? how is it going to? here's the answer. they force you to change the policy or your insurer's going to have to change your current policy to comply. one or the otherment you're not going to have that bare bones policy you like, which i like because it's a low premium. what the bottom line here is, charles, higher and higher premiums. >> so the insurance company makes the adjustment, but with that, you pay more money. >> of course. the insurance company will not go out of business, but say, sure i'll cover everybody lying on the couch inactive, cover anyone with a chronic condition, but this is what it costs me,
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and that's what it's going to cost you. >> i can't afford it, i drop that coverage, and i lose that doctor? that's what you are saying? >> well, if your -- the doctor, there's a a different issue. if they don't take a particular insurance, you lose your doctor. the policy, if your employer no longer offers it, if your employer is no longer covering you, you can be forced to go to the state exchange. >> here's the problem. go ahead, doctor. >> one more point on that. when you go to the state exchange, what you're going to find there are these comprehensive plans, they are called gold plans, platinum plans, the cheapest is the bronze plan. bronze is an expensive metal, and these plans are comprehensive. there's high preyums, nowhere in sight is the low premium high deduct l plan. >> the problem is the president describing the minimum essential coverage, and if you don't get it, you're hit with the mandate
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tax. >> exactly right. >> what if you are booted out, no insurance, and the health exchanges are not launched yet, you don't have the option to get that insurance because it's not launched yet at the instigate level. are you hit with the tax anyway? >> there's going to be a delay of a year or two on that, but i call what you have the affordability gap. the affordability gap. there's affordability insurance leaves you in a gap, you have none, lose what you currently have, and you don't get state exchange or not set up or unfinish, -- unaffordable and there's a punishment. that's in a year. >> we hear stories about how states are not ready. diet soda issas bad for your teeth as meth. >> it's a head line. the headline is it's bad for the teeth, period. there's citric acid, one drank a couple liters a day over two to three years, and her teeth
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looked like she was taking crystal meth or smoking crack, but i think the bottom line here is what we know, that soda wears down your teeth. >> and your liver too. >> and -- >> not the teeth, but everything else. >> i'll get to that in a sexed. it's not only sugar soda. it's not only -- we know sugar does it because that wears down e nonmel, but in diet, there's acid. liz's point, if it wears down the teeth, what's it doing to the stomach. that's right. the charles, the next place you go is the stomach. there's a problem with the lining of your stomach. unhealthy, not to be had frequently. water is healthier. >> absolutely. a lot of people lie to themselves too. i think most americans realize diet soda is not good for you, but it's a good way to say, well, it's not sugary soda. another one. you'll like it. new york city department of health launched an app that is
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going to help teens find birth control in abortion clippics. what do you think >>? >> the law in new york state allows teens to get a lot of free services like this without telling anyone. they don't have to tell their parents or doctors or have to tell their boyfriend or girlfriend. i like that to the point of view of accessing birth control, but it's going to speed the wheels towards abortion. >> how about this, abs innocence, respect yourself. how can you teach a teen to take a pill every day? >> it'll backfire. >> what's wrong with abstinence? >> same reason i didn't want morning after pill available for 11 years old. consult your doctor. you're having a problem. you're -- >> respect yourself. >> absolutely. absolutely. >> give that out with chasety belts. >> that will work. >> we'll see. the irs official at the center
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of the scandal in washington, well, now reveals she actually threatened a republican candidate all the way back to 1996. we're going to talk to a republican congressman after this. this is america.
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>> look at the big board, the
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pattern seen in the last day of intra-day weakness and volatility with us, back, pulling back, people are not sure what's going on. buy is up, but not as strong as minutes ago. i want to make you money with a company called marbel semiconductor company. last two times they reported, they beat the street by 46 and 36%. it's not -- it's a stock that used to be a high flier, settled down, and i like the rewards, margins expand, and they make mobile networks, home entertainment with the google tv, and smart energy, all of that stuff. from here, i see room to $12.92, a break out there gets it going perhaps longer term, maybe up to $15. there's a good move consolidating here and could move higher. two congressional panels plan hearings next week for the irs scandal. one sits on one committee, the ways and means calling for real tax reform. congressmen tim is with us, and congressman, wac to the show.
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>> thank you for having me. i appreciate it. >> you know, first thing i want to talk about is the idea of tax reform because all scandals thrust that into the public eye once again, and, yet, i hear from republicans and democrats, you guys can't be talking about the same thing. >> well, i think this is another really, really good reason for tax reform. you know, we give our most exansive powers to one of our most, if not our most intrucive agency, that being the irs, and if you really want to get the irs working between the ditches so to speak and under control, the way you do that is you take away a lot of the disgreat depression that they have over the code by reducing the complexity of the code. i mean, right now, the irs decides what the numerous
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provisions mean whether you are complying with those provisions and what the penalty is if you're not. you know, they are, sur, you can appeal and ultimately go to court, but that's -- that just requires more resources. bottom line is if we reduce the complexity of the code, get rid of not all, but just a lot of the provisions -- >> sir, with all do respect, almost every presidential candidate says they will go, look at the code, line by line, and it grows every day like a mighty redwood. you can't stop it. it gets bigger, not smaller. can we take away the power from the irs? can we really go in there and break apart the tax code and make it less onerous, you know, more transparent, and take away the inability of any administration to use government agencies, specifically the irs as a political weapon is that
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really truly possible? >> i think it is. you're never going to eliminate all misconduct in an agency, but, yes, you can make it much, much more citizen friendly and reduce the influence of the irs. we have not had tax reform since 1986. the fact that we had it in 1986 and we had it before, that indicates that, yes, it can be done, but, yes, it's rare and a heavy lift. i'm on the the wwys and means committee, and this is what we are looking on right now, and i think with senate finance committee baacus not running for reelection, i think this is the time to get this done. the president's on board with the corporate tax part of the equation. even, i mean, that was in his budget. that's a big deal that we've gotten him on board with that.
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i think if harry reid lets regular order work its will in the senate, we're certainly going to having? in the house. let's mote in conference. >> well, speaking of meeting in conference, where do you think there's commonalities, spoken to democratic colleagues, think, okay, there's a foundation for this because both sides think it's a no-brainer. >> well, i think the general concept of reducing the complexity, reducing a lot of the provisions, not all, but a lot of the deductions, loopholes, exemptions, whatever you call them, and reducing the rates, using revenue you get by closing some of those to reduce the rates, that general construct is agreed upon, not only by ways and means chairman dave camp, but also finance committee chair baucus, so the specifics, obviously, won't be
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the same, but, you know what? we work through differences all the time. >> absolutely. >> and regular order is allowed to proceed. >> well, sir, i'll tell you, this is one of the things that all americans, no one is going to give push back on it. we certainly wish you luck and happy you are taking charge of this. we'll ask you back as you make progress. thank you for taking the time this morning. >> thank you, loch to -- love to do it. >> a union boss making $1400 in food a month, sleeps on the job, works only two hours a day, and yet he still has that job. all rise, the judge is next. with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies...
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>> your taxpayer dollars are hard at work. state worker in pennsylvania arrested and now facing charges after he allegedly offered a woman extra cash and benefits in exchange for sex. now we have more on the union boss who caught sleeping on the job. in fact, let's run through the accolades before we get into it. spends $1400 a month on food, roommate busted for method, should have been diet coke, charged in 1998 and makes $156,000 a year working two hours a day.
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let's bring in the man himself, the judge, with more. judge, first and foremost, you know, why can't this guy be fired? ridiculous. >> well, he is not paid by the city, but by the union. the problem here from the point of view of somebody who thinks the government overreaches is the closed shop in new york. the problem here is people in order to work for the city are forced to join the yiewn i don't know and subsidize that lifestyle. a union is freedom of association as long as you are free to join and free not to join, but when the government forces you to join and government uses its power to take your money from you and give it toupon dues and pay people like this, it's profoundly wrong for government to do that. >> rights. the operative word here is "free" or "freedom," and you have to join the union to get a job. >> yes, if the union pays the
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guy $150,000 a year to eat and sleep on the job working two lowers a day, that's the union's business, but when the union utilized the force of the government to compel people to join and compel people to pay dues and the dues are wasted, that's not right. >> this is the largest municipal workers union in new york, but they are all fighting, and they get, once they get in charge, you can't get them out. he's been around since 1998 or scene of this accident, they can't get rid of him, and, yet, people working under him who complain. >> well, he's up for reelection next month. something tells me in the new york post is not exactly helping his campaign. i mean, the pictures are mind boggling. >> he is a political crony to the mayor, and, by the way, he's morbidly obese, sad to see, but i wonder if the mayor says, hey, there's a big gulp soda on the desk. let's do something about it. >> you know, the mayor too who has a lot of strengths is also
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willing to use the force of government to tell people how to live their lives. the problem is the government. the problem is the government forcing people to join the union. the problem is the government taking money away from people against their will and giving it to that union. if the union were a free association of people who truly wanted to associate with each other because of common interest and common needs and need to have a bargaining agent with the city, all protected by the constitution, i don't think there's guys like that. >> i know. irony that union workers need a union for democracy within their own organization. >> yes. >> it's crazy irony of the whole thing. i want to, listen, from the point of view, a quote on what is said, okay, listen, i'm 60 years old, so if i eat during my lunch hour and take medication, can't i close my eyes? is it so outrageous, judge? >> i also heard him say that you would know better than i that
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power naps are common among executives. do you know anybody to take a nap during the day in charge of million dollar entities? >> he's regularly taking naps. oprah does, and, you know, reagan has, but he does it so habitually, and should that be counted towards sick leave off? >> this is real slumber, two hours knocked out and the medication. >> look, the people in the unions should rise up against it. >> i agree. >> they are free to reject him. they are not free to leave the union. that's the problem. >> well, the first step then if you're in the unions, you should fight tooth and nail for help because what happened dpsh by the way, the guy slept through sandy. >> hurricane sandy? >> yeah. ridiculous. >> pleasure, guys. >> president obama making three big speeches on keeping america safe all about security. is the president trying to say above the controversy in washington? is it working? find out because that's next.
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this is america.
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we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day afr day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zero heartbur >> samsung unvailing a new phone in the miniversion releasing the specks this morning with a smaller screen at 4.3 inches. they plan to show the device in a product lunch event in london next month. now to the gdp. the u.s. economy grew a modest 2.4% rate from january to march, slightly lower than original
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expected, but not good enough. >> newly published released records reveal that former irs chairman visited the white house-under-par the obama administration at least 157 times. that is more visits than even the most trusted members of the president's cabinet. next, is the president trying to pull attention away from the scandals by talking about national security? that's what it's looking like. is it working? we're going to find out next. he's up. everybody has different investment oectives, ideas,oals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 outf 10 large professional investors choose isharesor their etfs. ishares by blackrock. call 1-800-ishares for a prospectuswhich includes read and consider it carefully before investing. investment objectives, risks, charges and expenses. risk iludes possible loss of principal.
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>> president obama spent a lot of time talking about security in the past few days, and we have the "wall street journal" here, and, dan, now you say the president missed the mark in the past three speeches quoting from your article in today's paper saying when the president speaks op national security, it's hard to distinguish between personal beliefs and political coal collation. what do you mean by that? >> well, i mean, charles, when the president was giving, gave three speeches, one the antiterrorist speech, memorial day, and the commencement address at the naval academy, and the take away from the antiterrorist speech, all pundits wrote the war op terror is over, and it's not clear what exactly the president meant by the war on terror because at both the cemetery and naval academy, a talked about how we're no longer at war in iraq
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or afghanistan. these are big military operations, and i think most people agree we're not doing that anymore, but what about the day-to-day details intelligence work that the fbi, the cia, and the defense intelligence agencies have to do? i was arguing that if he's sending a message into the agencies that we're pulling away from the post 9/11 intensity, then they, themselves, will be confused about what exactly their assignment is, and if they lower their guard, that post 9/11 focus, i think it puts us all at risk from another terrorist attack. >> and after the boston bombing situation, a lot of people feel that's already happened. >> yeah, that the fbi, it was not clear when they thoroughly invest gaited the oldest brother that closed the book on him after he came back, and there was a question whether that post-9/11 intensity has somehow faded. i think the president didn't do us any good. >> bottom line is the president when he said he was going to run for presidency, it was an
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anti-war president, and then the economy fell on his lap, so to speak. i don't know. i just don't think he likes this stuff on a personal level. i don't think he believes we should fight terrorism, that it doesn't exist, there's squirmishes, but to a large degree america brings this stuff on itself. >> well, his ambiguity on this, though, i think the problem is suggesting to the fbi and cia that he, himself, is ambiguous on the war on terror. iraq and afghanistan, convincedded, was about taking the money we spent there and reprogramming it into domestic spending. that's where his heart is. >> there was a drone strike on the taliban chief in pakistan. the president is aggressive on that front using drone attacks, but is it more the issue that it's redefined as a police action in our security forces and not a war on terror? is that more of the problem? >> yeah, well -- he has been aggressive using the bush tools put in place, but at the same
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time, he gives it this speech, especially to the naval academy, talking to all the problems we had in the war on terror in the bush years explicitly criticizing george bush without quite using the name. >> the bottom line for you is a mixed message that's going to have a real harmful impact on the agencies if they take the cue from the president, that means less security for us, but i want to sort of say a lot of people say, listen, all the speeches are made anyway to move away from all the scandals, and maybe it's working. you know, he's at the jersey shore, a bromance with governor christie, is that working? maybe a lot of the american public paid attention to the speeches and forgot about the irs, ap, and ect., ect.? >> well, yes, charles. you have to understand that no white house has ever paid as much attention to public opinion polls as this one. not merely the polls of us in the media, but their private polls targeting groups they want to appeal to.
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during the reelection campaign, the first term, and now barack obama, rather than spending time in washington, which he destains, goes out into the country to rally public opinion in his favor as long as he can keep that approval rating up, he doesn't much care about scandals. there's some indication this morning from that one poll that his approval is beginning to fall because of the scandals. >> you know what? i don't see you how out run it forever. great piece as usual. appreciate it. >> thanks, charles. >> no-brainer, wear a helmet on a motorcycle, many choose helmet free, not john stossel, but should government force us to wear a helmet? he's next. [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more rprises?
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>> hhw many times have we seen the video of john riding the bicycle around manhattan always wearing a helmet? more motorcycle riders are ditching their helmets costing insurance companies big time. who better to ask than the resident libertarian helmet wearer, john stossel. the laws have been weakened a little bit there in michigan as a consequence as people dying, and it's been amazing how many bodies have been harvested over the last year because they got
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rid of the helmet law. as a lib tearon, are you conflicted with this? >> not -- i'm conflicted because my daughter is going to buy a motorcycle. -> and if she follows daddy, she may not want to weaet, and that's her right. >> i'm glad that in new york she has to wear a helmet, and i wish motorcycles were banned in new york, but that's my daddy attitude. she's 28 years old. it's her body, her choice. if she wants to take a risk, she should be free to do that as an adult. will it cost more for society. maybe. we have socialized medicine, pay for others, do we have to give up the freedom? >> you're okay with it? >> i am. the study from michigan is thin. no way to know how many of the michigan claims involve motorcyclists not wearing hell -- helmets. >> if you don't, you're in a crash, you're exponentially more
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likely to have severe injuries or die. >> definitely. in states where it's legal not to wear them, most motorcycle motorcycleists do. >> right. let's talk austerity and illusion because that's the top of the show tonight. >> yeah, the left, oh, austerity doesn't work, look what happened to europe. well, europe has not cut anything, and neither have we. we cut the rate of growth, but i go to times square with this. they early morning 24 # ,000, but they spend 35,000 so they are almost 11,000 in new debt this year, got lots of old debt. isn't this terrible? everybody says how terrible it is and how -- >> that's called a dumb family. >> a dumb family, and i took off eight zeros because it is the federal government. [laughter] we are in big trouble, how do we pay for that? i say, what do you caught? they don't know. we spend almost $4 trillion, and they don't know?
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well, i'll tell you what to cut. >> can't wait to find out because the e.u. said enough of the austerity, we're not doing it anymore. >> they have not done it. raised taxes, not cut spending. >> everybody's austerity is different, but can't wait, sounds to be an amazing show, and glad you are doing it. it's important to bring that stuff to america. appreciate it. more varney and company next. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement 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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when visa signature asked everybody what upgraded experiences really mattered... you suggested luxury car service instd of "strength training with patrick willis." come on todd! flap them chicken wings. [ grunts ] well, i travel a lot and umm... [ male announcer ] at visa signature, every upgradedxperience comes from listening to our cardholders. visa signature. your idea of what a card should be. charles: i have been all over this story. i am so outraged. i have a cousin that works for verizon. she is in the process of getting fired. she was sick. i do not see -- in the meantime,
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you have these guys sitting back working two hours a day. >> i think that there are good unions out there that do work for the worker and not themselves. this guy rose to power fighting union corruption in the 90s. charles: this is the worst form of corruption. he doesn't see anything wrong with what he is doing. that is the scary part. it should be a wake-up call for people who are paying dues. >> they do not like what the teachers unions are doing at all. charles: thanks a lot. now to dagen.
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dagen: hey, charles. good to see you, my man. selling out to china. forcing americans to shape up or opt out. why the obamacare law will have little tolerance for smokers and the oldies. privacy rights are a concern here. those stories and so much more today on markets now. ♪ dagen: i know it will be a good day because i did not trip walking over here. there is a new report out on eye contact. it is falling at alarming

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