>> let's start off the day with a news alert. the situation in turkey is deteriorating. more riots and slashes overnight. laura wells from neo ottman news on the ground in turkey, joining us now by phone. i've got two questions for you. >> sure. stuart: am i correct in saying that a couple of deaths have been reported? >> yes, that's right. a 20-year-old young man was killed in istanbul by a car. it's a little shadowy who was

driving that car and also, late night a 22-year-old opposition member chp. also killed by po fire in the southern town. stuart: we want to know who exactly is fighting who. the way it looks from here is that young, say, middle class, more democratic inclined turkeys are fighting a authoritarian leaning government. is that an accurate way of portraying it? >> yes and no, it's middle class on up. and comprised by everyone disenfranchised by the administration. and that includes students and businessmen who feel cut out of deals and includes minorities. such as the christians here, as well as the-- >> real fast, would you say that the situation is close to getting out of control? >> it could go either way. it really could. the deputy prime minister spoke

today for an hour and the resolve is still there and the protests and the current administration is going to be listening to the demands and right now they're calling for the resignation for the prime minister. she's there in turkey. thank you indeed. let's get back to the world of money, stocks and business i want to bring in art laffer, i've got to and the-- i think he's making a comeback. and he's stumping publicly for more tax and spend and i say that's bad news for those of us who do not like this new normal. what do you say? >> i agree with you 100%, stuart. it's bad news and i don't think he has any legs to be honest with you, i think that larry summer's day is over and you know, the new normal, will, i think, be over with very short i will. >> well, now that's

interesting. i think we both agree that we have a new former. and high unemployment, slow rate of growth and handouts for the government. you say it's going to come to an end. all right, tell me when. >> well, i think it's going to come to an end fairly soon through the election process, 2014, 2016. it reminds me so much today of 1977. you had johnson, nixon, ford and carter, i mean, the largest assembly of ignorance put on the planet earth. a terrible period. and you have with obama and two very poor presidents and i can't tell the difference. they did the huge splus and t stimulus and now it's time to come back to economics. a low rate, flat tax. free trade and minimal regulations and then you let the markets go and get the prosperity. >> we just love apartment mechanism and it's exuding from

you down there in tennessee. >> i love it. >> stay there please, in a moment i want to talk to you about the elites and how well they're actually doing under president obama. i'll get to that in a second and we're going to cover for you. lululemon's pants back on the shelf, no longer see through. and a big move for general motors. stay right there, everybody. 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 officiaretirement 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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♪ my kind of town >> that's in honor of tr tres knippa chicago. and i can tell you that illinois got another downgrade because they're not dealing with pensions. you want to move to new jersey? >> well, i'm originally from texas. i think i may go back to texas. >> all right, let's get serious for a second. i've got the report from call logic. home prices up year on year. that's pretty good news for the housing market and ben looks like he's going to keep on printing and we're back to the same story, the market wants to go up, correct? >> it sure seems so, one thing that we should consider here,

isn't the very definition of inflations should be worried that housing prices are going up faster than real income levels? why is that something that the voters or the constituents or the american people should necessarily want? if one particular thing that they're spending money on is going up faster than their income is going up. that to me sounds like inflation. >> if you've got home prices and values going up, fewer and fewer people are-- and spending, that's better for the growth. >> hold on a second, it's not the people underwater that's the concern of the fed. it's the member banks of the fed who hold what, thanks to the real estate crisis of '06, '07, '08. they own real estate and they want the fed to do everything they can to get the real estate off their books and that's why ben bernanke is not going to change course. it's the banks that he answers to are getting this inventory to go up in price. that's a good thing for them. so the american people are not

the concern here. stuart: ben keeps printing, that's what you say, that's what he says, and away goes the stock market. that's where we'll have it today? >> indeed. but don't forget, when you-- when the market builds on just that, we can't be surprised when the market has chart moves lower. look at the nikkei in japan. everybody thought that was going up to infinity and you had a nasty pullback there. >> all right, we're watching the shouting begin, and the opening bell has rung and we're running. we're expecting a modest gain, up maybe 10, 20 points from the opening bell. the opening trend though is pretty much dead flat. we're down three points right now. let me give you some individual corporate news, i've got pretty good news for general motors. it's going to join the s&p 500 after an absence of four years. and replace heinz. that's usually good news for a stock and lots of mutual fund managers, they have to buy it and the stock is now at 35. all right? and up another 2.7%. we've got a huge deal between

the nfl and verizon. verizon paid nearly a billion dollars. actually a billion dollars for a four year deal that allows customers to watch games on the phone. no need to worry if you've got family obligations. no reaction for the stock, but this is an interesting communication story. disneyland ticket prices are going up. designers like michael kors. more people driving mercedes and bmw. art, it looks to me like the elites are doing fine in this new normal obama land. >> they probably are, doing better than working class people are, for sure. but, i am ooh-- mean, you'll always have a bottom and a rise and this is a rise coming in and i think a lot of this rise, stuart,

because people see the end of obamanomics, if you will. i don't think he has much more to put through an agenda in the next three years. stuart: what do you think of the state of the economy. >> it's terrible. stuart: terrible? >> it really is. when you're this far along in the recovery, it's the single worst in u.s. history. it's the next worse, it's an awful new normal. very low employment. very low growth. i mean, very few jobs, people just aren't living well. it's a terrible situation in this country. and i don't know if you remember right after reagan, i mean, goodness gracious, we had the roaring 80's and then bill clinton was a great president and kept that boom going until 2000 and hit a wall. stuart: i'm looking a the dow is up, 15,266. explain that one to me. >> well, you know, i think there's no-- i mean, this is a nice bouncing

back market and the dow is up. it's got a long way to go before it catches up to where it was in 2000. i mean, we're still way below the levels back then in real terms. >> and you think we are going to get back to those all time highs in real terms? >> yes. >> and the change? >> and it will take political change to do that and i think you're going to start seeing that in 2014. i think obama's lost the edge. the scandals, it reminds me. i was in the white house, i don't know if you know, between 1970 and 1972, i was george schultz's economist and i can remember the back dating of the vice-president's papers. you then had the break-in at fieldings office, that was the plumbers, you had watergate and all sorts of scandals all over the place, and this same thing is coming out with obama. i mean, you know, it's absolute power corrupts absolutely. >> but you see a rosie silver

lining down the road during the elections next year. >> i do and today reminds me very much of 1977, i mean, i remember all of us being so depressed after so many years of bad economists and all of a sudden, the clouds cleared and the sun shown on the planet and the fields turned green and animals multiplied and children danced in the streets. stuart: yeah, right. [laughter] there you go. art, always a pleasure. >> thank you, my pleasure. stuart: and a couple of stocks for you, higher profits at the discount retailer, dollar general. however, it lowered its outlook for the future and that stock is taking it on the chin, a 7% loss for dollar general. ibm moving further and further away from the targeted side of the business, it's buying the privately held cloud computer known as soft layer. any reaction to the ibm soft. no, down just a fraction as of right now. we are, by the way, three days away from that may jobs report. that's the big one that comes

out friday morning. so, i'm going to bring in economist. all right, david. here is what i'm hearing when it's relating the jobs report to the stock market. if we get a bad jobs report, not many new jobs created, for example, a lot of people say that simply puts the stock market separate up. what do you say? >> i agree with that, the stock market does not want robust recovery because that means the fed telescopes its tapering and it comes sooner. so the stock market wants the fed to go on forever and to do that, you want weak economics, 150,000, 160,000, 140,000 nonfarm stock market likes it. 250, 260 and then it gets to be too strong if it's a few months in a row. by the way, i like art laffer, give me a wig and i'll look like him. a terrific interview. stuart: you know he's 72 years old? i wish i'd look like that at

72. but he is a great guy. >> terrific guy. >> let's move to your prediction for the jobs report on friday. >> look, i'm in the concensus. i think that picking a single point every month. we go through this exercise. the revisions which don't get as much attention are more important because they give us trend. what do we know? things are improving. i disagree with art, i don't think it's terrible now. it's a weak recovery, but it's a recovery and it's gaining strength gradually. you had an earlier guest complaining about a housing price. you were so right to give them the business, we want housing prices up. we want rising income. we're getting it slowly, but we're getting it. that's good for stocks and good for the u.s. economy. >> what have we got? 2, 2 1/2% rate of growth and that's about it for the forseeable future. that's the new former? >> well, for a while, 2 1/2, 2. and a low inflation right.

nominal gdp, 3 1/2 to 4. what's wrong with that picture? we will add 2 million jobs a year, we will have gradually rising income. we will heal the financial system slowly, and at the same time, austerity of the fiscal policy in the u.s. is forced upon us, and that has a positive effect. we don't like it when it hits us personally, like when we fly on an airplane, but the fact is, we do have pressure on federal spending. it's a good combination. >> surprise we get a real-- we are in the middle of the energy revolution. we're boosting our energy production. suppose we got things going on the energy front. what then? >> it's a fabulous development for the united states. and that's in process, too, let it happen without political interruption, so it will be a boom for america, higher paying jobs, and we'll stop sending dollars abroad to our enemies.

the dollar could even strengthen, and the economy does better. i mean, we have huge opportunity in the energy patch in the united states in exploration, drilling, distribution, we just got to let it happen. it's terrific for our country. >> so, can i say, and close this interview by saying that david is perfectly happy with the way things are? >> i like that summary and i like things on a steady, easy pace. let's not get the volatile pro bust up and down. much better. >> if there was an election tomorrow, would you vote for another term for president obama? >> well, i don't have to make that decision. >> i know you don't. what if? give me a hypothetical. go on. >> i'm an independent, stuart. i don't like republicans, i don't like democrats. i don't like politicians, i believe in hl macon's wisdom, don't encourage them.

>> we like you, we really do. >> nice to see you. stuart: thank you, david, appreciate it. the dow is up 30 points, 15284 is where we are now. now, they're not too transparent anymore. lululemon's black luan pants are back on the shelves. and they're recovered from the see-throughco, they're up a buck 22 at $80 a share. now, check this out. an all electric motorcycle, a range of about 130 miles. doesn't come cheap. we've got it here. you'll see it live and i'll actually try to start the thing, 10:35 this morning. all right, and now to check the big boards. where are we now? 25 points, modest gains in the early going after a big run-up yesterday. we've got a lot more for you on today's program. the irs may have acted conservatively and did it act illegally?

we'll ask judge napitano. a website we're calling the expedia of local events. i'm going outside during the show and yes, i'll get out of this chair and walk out into the fresh air and show an electric motorcycle parked on 48th street. the question, does it roar when you start it up? i'm not finished. the theme of the day is this: the machinery of government used to intimidate the president's opponents and influence the election? next the congressman who asked the question a lot of asking. >> is this still america? is this government so drunk on power that it would turn its full force, its full might to harass and intimidate and threaten an average american? ♪ (announcerscottrade knows our clients trade

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>> you to, it looks likes we're getting back to 15,300. we're almost there. 31 points, 15286 tuesday morning. joining us now, congressman kevin brady. the man who made some star power in the hearings we've had so far. good morning to you. >> thanks, stuart. thanks for having me on. i've got to raise the issue of doug shulman's wife. the director of the irs. she's leftist activist. we're looking for connections between the irs scandal and targeting. the presidential campaign or the white house and here we are

doug shulman's wife, a leftist activist, led to believe there's never any discussion of what the irs was doing during the election with his wife, who is a leftist activist. i mean, do you have any comment on that? >> just that there's a very interesting connection in the sense that one of the amend targets of her group, a public campaign, are the koch brothers and leaking taxpayer information to the irs relates to the koch brothers. you look at leaking information and targeting donors of organizations, this is going to get a special inquiry, especially since we now know as the deputy commissioner and acting commissioner that mr. shulman knew about the activities and concealed them for almost two years and misled congress. >> he visited the white house an unprecedented 157 times. we don't know and he's not

saying who he talked to and what he talked about? >> yeah, and we're going to get to the bottom of that as well. that's no coincidence, the sheer number of times. it's not explained by the president's health care law. the hhs wasn't there, the lead agency that many times. and we have very thorough and deliberate investigations and we're going to get the truth e what are we going to get that's new today. you're going to be questioning or the committee is going to question the tea party and other groups targeted. what's new that's going to emerge today? >> well, two things, one, i think in any investigation, it's important to hear from the victims themselves and what they experience and how it all unfolded and may shed some light on the standpoint so i think it's an important hearing. >> so far i think we're right in saying that we do not know who orchestrated or who ordered

the campaign of targeting the servi service, despite the hearings we don't know any names yet, do we? >> no, we don't and yesterday, the new acting commissioner of the irs had the chance to step forward and say, this is who initiated, this is who was engaged in it, this is how broad and wild this whole scandal was and he chose instead to try to put out the fires exactly the wrong approach. >> do you think the election was skewed by the irs activity and other departments of government last year? >> you know, it's hard to say that at this point, because we're just beginning the investigation, and what i think frightens most americans is that the full power of the government can be targeted on them simply because they're political or ideology, beliefs, you know, that's frightening for most americans, that's why we're doing, i think, again, a thorough investigation.

>> you've got a very, very busy day starting in a few minutes. >> thanks, stuart. >> and it is 9:49 and time to look at the price of gold. 1400 an ounce and we're down $14 as we speak at 1397. it's officially called a workplace shooting. now, the alleged fort hood shooter himself, major hassan, granted the right to defend himself. our enemies, i think they're laughing at us. my take on that is next. my mother made the best toffee in the world.

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>> just a few minutes from now, the latest hearing will gavel to order on capitol hill. the victims in the irs targeting scandal will tell their stories and we're going to cover it live and instant reaction it any drama that pops up. and plus, they're fracking in illinois. does it mean it's closer in california, too. we have an environmentalist who is for it, but of course there will be a catch. and speaking of california, jerry brown getting pressured to spend the state surplus. guess what his reaction is. things are upside down in the golden state and we're on it in a jam packed 10 a.m. eastern hour for you. our enemies are laughing at us

and we have brought con at the point in time upon ourselves. here is my take on major hassan. the news here is that he has been granted the right to defend himself. he's accused of killing 13 fellow soldiers at a workplace incident. and the administration is bending over backward to showcase america's legal system as fair to the nth degree. defending himself he will have a staff and office and keep getting his paycheck. he has received 278,000 since the shooting. and he'll get to draw out the trial for years and years and harangue the victims with hatred. this is how america displays its legal system to the world. i don't think it makes us look good. we're being laughed at.

we're deluding ourselves, we are granting the terrorists every might and defer to them on every whim. we won't call the shooting terrorism, no, workplace. and it's not clear to the terrorist victims. now, we're a financial program and clearly magic hassan has nothing to do with finance, but this is a program that celebrates america. our freedoms and our liberty, and with the america that we know and love is laughed at. nobody should be happy. eports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. i'm monica santiago of fidelity investments,

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>> dews jiewrn 4th, welcome a a new hour of varney and company. we'll hear from the victims as congress takes testimony about irs abuse in the abused. watch it. even if you're shouting at your screen. environmental lists tells california, yes, go frack. we will read the find print behind that one. same old, same old in california. spend more now, says the left. all of that, plus, the world's number one electric selling motorcycle is parked outside. we'll press the start button. will it roar like a real bike, he asks? ♪ big day in the irs scandal on

capitol hill. going there now, joining us. congressman turner. sir, everything i've seen so far, we do not know who orchestrated the irs campaign, who ordered it, and whether there was such an orchestration at all. we do not know at this point, and that's a source of frustration to us, sir. >> well, i think it is. what everyone knows is this just did not spontaneously happen. a group of employees just did not begin to orchestrate this on their open. this was directed, and systematic, anything you see executed in a systematic, organizee bureaucratic way you know someone's in charge. that's why there's investigations, not just identified as wrong behavior, but quite a identifying it who s accountable so it doesn't happen again. >> well, we're asking the question, was the election last year affected by the government using the machinery of

government to beat up on president obama's opponents. you answer the question for us. was it used in that way? >> it has to have an effect. in addition, basically harassing the groups of organizations meaning they spent time elsewhere other than communicating their message, there were groups that never got approved and never had the ability to organize themselves and orchestrate their message. you also had people who, you know, were supporters of the groups and organizations, contributors receiving additional scrutiny or basically punishments for being conservatives. those people had to think twice about whether or not they continued at the same level and that affects their friends as they told the government is turning on its own people. >> the hearings are about to start. what do you expect to hear from them? >> i think we'll continue to get the sidestep. i think the congressmen have to dive deeper in this to find out exactly how it was orchestrated. it did not happen from a group of people in cincinnati. this is coming, you know, from somewhere up in the top, and

we'll get to the bottom of it. >> if you appoint a special prosecutor, you get it, that puts everything under wraps for a long, long time because if you investigate like that, people say, oh, can't talk, don't know what's happening, it's under investigation. >> this is so important it never happen again. as we do the investigation, we find even if the irs did this in app orchestrated nateed way and leadership from the top, did may have not have been a crime. i have a bill that would make it crime, using the arm of the government against its own people, this should be a crime. >> all right, mike turner, thank you for joining us on a busy day. appreciate it, sir. let's bring in the judge now because we just heard from congressman turner this is not a crime. targeting people by the irs is maybe unethical, but not a crime. >> he's correct. exact lee correct.

the congress has begin the irs broad discretion. now, one says we gave the irs discretion because they never know what issues confront it, and there's experts there who ought to make judgments based upon applications as they come in. a more cynical view gives the irs broad discretions so whoever's in the white house can use the irs as an instrument against his opponent. >> that's not the way we're set up. >> as this president is doing, as jfk did, as nixon did. they are to blame, giving this broad discretion to the irs, for good or ill, it should not have discretion. it should treat all 0501c3 and 4 applications with constituteny. >> he wants to have legislation, a law to that effect, but how do you word it? >> i don't know how to word it, but it accomplishes and brflts the irs from wratch eting up

government scrutiny because the irs disagreed with or thought the president disagreed with the speech or message of the applicant for tax can't status. they want to look at the checkbook, but, go ahead. >> withdrawal tax exempt status for anyone dabbling in politics. you want to dabble in politics, fine, spend your own money, no tax breaks. what's wrong with this? >> both experienced having the entities out there. c3's may not be involved involving candidates or legislation. the c4's devote 25% to not the direct support of candidates, but they can attack and be specific about politics. it's less money that congress

has to raise. >> would you support a movement? you spend money and you're on your own. >> support the abolition of the irs and income tax. in fact, wouldn't, charles, wouldn't that raise prosperity overnight? >> overnight. >> don't bring him in this. >> answer the question. >> if you didn't have to pay -- >> answer the question. >> it's a nebraska by louse area of law. i believe the citizen's united case is the right choice. the citizen's united case, saying the groups of people and corporations can get together and use their money to get involvedded in politics. because he didn't like that decision, he either caused the irs to wratch et up scrutiny or leadership of the irs thought he wanted them to do that. >> that's fine. spend money as you will, but

don't get tax breaks. what's wrong with that? >> if you're truly involved in educational purposes, than that's not a taxable event. >> it's a charity. >> yes. >> fine with me. >> yes. >> okay. >> they are tax exempt. can you support legislation or support an idea? it's an introssing lawyer. >> oh, these lawyers. >> it's the irsment send them home. >> all right, judge -- >> i have a lot of friends in the irs, they do good work, wonderful people, pay taxes like everyone else. >> wonderful people. thank you very much. check the big board, moderation in the rally, up 16 points, 15269 now. i have a stock that's a big winner called monster beverage. nicole, what's going on? >> looking here to see why it's actually to the upside because the latest news we got from monster, basically, they are

battling all of the city of san fransisco attorney because they don't p to be probed or investigation of their content, their marketing practices, and meantime, the city attorney moved to dismiss mon tear beverage's lawsuit all together saying it's incredible. mop steer beverage is asserting a constitutional right to not only pedal potentially dangerous products to young chirp and adolescents, but be free from illegal conduct in doing so. harsh words from the san fransisco city attorney. however, in the meantime, the stock is to the upside. there's reports about failed acceleration and many i'm seeing, that's something i'm seeing, which may be why i see the the stock up 6%. they could be in a litigation battle. >> that's not the case. hold on a sec, charles, what's going on here? >> tt nicole's point, there was

a report, looking at april and pay, and they saw a big acceleration in sales from those two months. what you see is all the news head lines about high energy drinks causing harm had a short term impact, and now they are accelerating, and wall street loves that. the fact they can fend off all the bad media, people, there's demand for products. closed up 57 on a technical basis, huge for the stock. could be a major short squeeze. obviously, it's the one i'm missing on the show. >> finally gets to it. 6% is a nice rally there. >> well, listen, they say may sells up 13%. that's huge. huge. people were scared for a week a went back to the energy drink. >> got it, thank you, charles. fitch downgrades illinois because of that state's failure to fix or get to grips with the pence problem, a hundred billion dollars in unfunded pension liability unsold as lawmakers just adjourn their spring session.

did nothing about the overhang. the the "wall street journal" joins us now. welcome back, good to see you again. >> thanks. >> you slammed illinois. >> i have not gained good commentings. >> i bet you haven't. he'll meet with legislators today, and i think he'll lay the law down saying, look, we can't go on. this costs more money to borrow money, and we've not fixed the problem. >> the problem is they said this the last two years, nobody's listening. unfortunately, and the problem is the pension problems is so big in the next decade they are going to run out of money. before that, what's happening right now is just sucking money out of the budget, about 7 billion a year, in two yores, spending more money on pensions than education. >> okay. so it's sucking money out of the general budget. they got to borrow money to replace it; right?

>> that's right. >> the cost of borrowing money is going up and up and up. >> 140 basis points. >> more than the other states? >> uh-huh. >> that's a lot of money. >> that's right. >> they can't go on like this. >> it's unsustainable. >> what's the engame? when does that occur? >> well, that's the question is whether they'll will ever be -ddress the issue. >> if they don't, they can't borrow money. >> if they don't, pension funds go broke. it's a fiscal wreckenning they are dealing with, more than california dealt with. what we are seeing is in illinois what happened in europe. it will be interesting to watch illinois in the next few years to grapple with the issues of whether we start spending more on retirement benefits sthan education and other services and what we have to cut in order to do that. >> how do you think it works out in the law? you know, you haven't got a

crystal ball, but best guess, where is illinois going? >> i think they'll finally, eventually, ultimately, -- >> finally, eventually, ultimately -- >> have to exhaust all options making some modest reforms. i wouldn't necessarily call them -- some kind of tweaks. >> hold on. does that mean that they will cut the pension that are already being paid to retired state workers? >> i think they'll sweep them into retirement age, not solve the problem. they'll do enough just to force all the day of reckoning for four or five years like they did a couple years ago, but this will ultimately not solve the problems. they will be back at it in a couple years. >> last one, they are going to frack and get the natural gas or oil underneath illinois. will that make any difference whatsoever? >> probably not. >> decide to go frack because the pension situation is so bad? >> no, i think they are separate issues. >> separate, no connection? >> i think right now the governor's completely focused,

not even -- he's completely focused on the pension issue right now. he's not even -- the fracking issue in pensions, i don't think the government has -- i won't say that. [laughter] >> i know what you were going to say. he hasn't got -- >> to connect the dots. >> thank you very much indeed. [laughter] very elegant way to put it. "wall street journal" thank you very much indeed. >> thanks. >> back to nicole, general motors going to join the s&p 500, that's always good news for a stock; right? it's up today. >> it really is. i mean we don't use "always and "never" too often, but this could be the one time to say "always" because going in the s&p 500 is a great thing. general motors up 1.5%, and this occurs after the close of trading of june 6th, thursday, replacing hiens purchased by warren buffet, and aig is going in the s&p 1100.

changing happening here with these two names with gmment one of the money managers noting growth potential for general motors in the years to come. when you talk about that, people are hot on gm. >> yeah, $35 a share, still a long way away from the $53 required for us to get money back, i think; is that right? >> that's right. that's exactly right, $53 is what we need to break even as taxpayers. >> nicole, thank you very much indeed. back up with the 33 point gain now, back up a little bit more. 15287 on the dow, getting close, again, to 15300, charles, you were right. illinois approved fracking. california is sitting on a huge reserve. state lawmakers want to block it up, no fracking, apparently. they don't want it. however, up next, an environmentalist who says, yes, go ahead, frack in california. is there a catch? he's on after this. this is america.

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expensive, very expensive. they are raising the price by five bucks, 92 for adults, and 87 for kids. that's exceptive. zinga plans to lay off 18% of the staff by the end of the summer, sthas 500 dollars to save the company money. down three crepts. illinois approvedded fracking, and california could be next. we'll deal with that in just one minute. 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. ♪

>> it's that time where charles makes you money, and the sphok of the day is the sienna corporation. what it do they do? >> networking. the things that make the computers move fasters. the pikes if you will. they have products and services, last time reported, revenues and margins up. northland capital loves what they are seeing, they said they expect to see all breakouts, and last week, they report op thursday. if this number is good, and, you know, people are leaning towards it being good, a may gore barakout to $18. it used to be a high flier. it could be back there. >> back when, a couple years ago now, maybe a decade. >> you talk about the internet bubble, but that was the telecommunications equipment bubble. it's a survivor. there's demand for it again.

we want computers to be faster. >> c-i-e-n is the ticker. >> yeah, we don't have long for the go. a couple days you'll see if i was right. >> a victory lap or shame. all right. if illinois passings legislation that would okay and regulate fracking, could california be next? joining us now is bob dean from the natural resource defense council, rdc. all right, bob, you support the move in illinois, so would you support a regulated fracking in california? >> well, stewart, california's got it right. they have looked around the country, seeing the problems we have with air quality, water pollution, property rights, with communities, ranches, and farms turned into industrial wastelands in ohio, pennsylvania, colorado, virginia, arkansas, how much time do we have? california's doing the right thing saying let's take the time to assess the risk, let's put the common sense safeguards needed in place first, and them

we'll make a decision about where to go. >> i'll make a prediction. you don't really support fracking. what you -- you don't, you don't, bob, you do not. you don't want to get any fossil fuels. i'll lay out what you do. you demand the fracking companies release the chemicals, tell everybody which chemicals they use, and you say that's the way to get to the truth about fracking. as soon as they release the chemicals, you will go to court. you'll say these chemicals are carcinogens or find some reason to go to court and stop fracking because you have a hid p agenda. you really don't want fracking. >> you know, stewart, we're not hiding anything. i'll tell you the agenda. we understand the stakes are high here. we know there's a lot of oil and gas in shale. three things, one, we have to protect the communities, ramps, farms, water, the air, the health of the children. that's got to be protected. right now, it's not. >> it is, it is.

>> carcinogen toxins do not need to be in the water. >> i know something about this. you just said there are parts of pennsylvania which fracking turned into an industrial wasteland. >> absolutely. >> that's nonsense. i own property in that area, and i know exactly what i'm talking about. the expression, "industrial wasteland" is taken out of the talking points. >> it's not a talking point. >> it's not a wasteland. >> we're told that by the farmers living there. >> a thousand farmers tomorrow morning who tell you they want fracking on their land. their neighbors already got to go to doing fracking, and there's no problem. they are just making money. >> stewart, people are terrified all over the country seeing what's happening to con contamid water in pennsylvania. there's a list of states where we have it. this is what we need to do. >> you're just scaring them. >> we're not scaring them. >> you're deliberately scaring

people, preventing america from going after its own resources. you with preventing -- >> absolutely not. >> preventing america from becoming energy indpepts. you are preventing america from getting away from governments that hate us. you are. >> stewart, the rapid energy independence is to invest in renewables, but here, this industry needs to play by the same rules as every other industry in america. it's exempted from the clean water act, the clean air agent, hazardous waste rules on and on. why should the industry be exempted from laws 245 -- that every other industry plays by because they secure our environment and health, our safety. we need that. we got to put fussers things first in the country, stewart. >> how long will it take to satisfy you that fracking is safe and should proceed in california? give me an estimate. a decade? what do you think? >> well, the thing is, stewart, you mentioned risk. we don't know. we have not taken the time to fully assess the health risk of this. >> fracking's been around for

decades, bob. it's been around for decades, and you know it. >> the kind of hydraulic fracturing is new. that's why we talk about this move. that's why -- >> this new hydraulic fracking system has been used for years, and it is being developed to the point where they don't even use chemicals any longer, and you deny that progress. you just denied that. >> boy, i wish that were true. there are hundreds of chemicals used in this, and they get blasted into the earth that upset the structure of the earth. we have seen that in ohio and elsewhere. all of these things need to be looked at. they can be looked at. they can be taken into consideration. once we require them to abide by the same foundational authority requirements. >> can you give me a time frame when you might be satisfied to allow fracking in california? >> well, let me go to that. it's been eight years since congress exempted this industry from the common sense safeguards.

when congress fixes that -- >> can you give me a time frame, bob. >> that would be a start. first things first. that's what you talk about. health of the children first. >> you cannot give me any a vague time frame, can you? not one. >> if you can tell me when congress will fix loopholes, we'll start a conversation about it. i can't predict what the house of representatives will do on this, but we advocate they make it right for the american people. >> i think you have a hidden agenda. i don't think you want fracking anywhere any time. i don't think you want to get our natural resources out of the ground which are ours. i don't think you want to do that. you got a hid p agenda to stop it. that's what i think. i don't think you can convince the viewers otherwise. you tried to scare people. that's the endless game. that's what you do. >> stewart, the industry is scaring people, not us. >> all right. we're calling it the expedia.com of local activities.

looking for something to do? a company that makes it easy and cheap after this.

>> look at this, lisp, conservative groups targeted are delivering opening statements at

this moment. we're monitoring the hearing and we'll bring you action if there's drama or fireworks. you'll see it happen. now to something completely different. the next guest runs a website giving you a quicker and easier way to find and book local events. we are joined with v-i-n-b-l-y. private company? >> private company. >> i log in, and you tell me the events that are going on in the next whatever it is time frame in my immediate area? >> yes. >> what kind of events? >> dance classes, cooking classes, comedy shows, sailing events, any kind of recreational activity, as long as it's a bookable -- >> that's the keyword "bookable event" because how do you make money? >> we charge a commission to the vendors. >> okay. if i log on, take a cooking class that you told me about, and i pay x number of dollars for that cooking class -- >> right. >> you get a piece of that

action? glue right. >> is it mostly for young people? >> predominantly ages 21 #-39. >> i'm excluded. >> not many bookable events for you. >> because i don't pay for anything. that's what it is. you're private. yes. >> what do you want to do in the immediate future? >> in geographic caption now. >> only in the new york area now? >> yes. >> want to be nationwide? >> yes. >> could be global, i suppose. >> yeah, first step is five areas on the east coast, chicago, and then 20 from there. >> now, what is your idea to be bought by a big company or public yourself? >> long term game plan is to go public. we want to grow the business. we're not seeking just to flip it. that said, if it happens between here or there, we give considerations to anything that happens. >> if the price is right, you do it, wouldn't you? >> right. >> if they offered a hundred million and golden hand cuffs to

stay ceo of the company, yod take it, wouldn't you? >> this is not the question i think about, but building out. >> don't tell me that, young man. you sleep every night dreaming about a hundred million dollars to sell to somebody else. of course you do. >> it's compelling, absolutely, i love what we are doing, and i love the team and everything we build. >> you know, he came over and said, hell yeah. people do it one time or a subscription? in other words, will i always go to the site or give you information one time, tell you what i like, and you push stuff to me. >> we push it to the users, but users can browse. there's no fee, and you can browse the site without signing up. it's guest based access as well. >> that's the range of choice. >> yes. >> where does it come from? >> very nimbly, vimbly.

>> oh, cool. >> cramming the words together. >> are you cool? would it be cool if i were to log in? >> we'd have to change the branding then. just kidding. >> that was good, young man. you're never coming op the program again. dreaming of a hundred million dollars. sam, thank you very much indeed. appreciate it. >> thank you. >> check this out. electric motorcycle, a range of, way hear, 130 miles between charges. i want to know one thing. if i start that thing up, will it roar like my old triumph bonville 6 # 50 i had 50 years ago? we'll find out after this. ♪ everybody has different investment objectives,

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♪ >> all right, everybody. this is a moment when we explore the world of the electric motorcycle. we have several with us. they are the zero motorcycle. start one up with the guy who runs the whole show, named scott hairdin. welcome to the program. >> nice to be here. >> next to you is what i take to

be an electric motorcycle? >> absolutely, the top of the line bike. >> top of the line, start it for me. >> i turn the key on, let it run through the cycle, keying up, doing all its checks, and now it is running. >> i can't hear a thing. >> that's the way it's supposed to be. >> that's hopeless. >> well, depends. >> if you buy a motorcycle, you start it up, you put the throttle on, you want a roar. i hear nothing. >> i don't think your neighbors want to hear a war. -- roar. >> the motorcycle drivers care less about neighbors. >> i'm a motorcycle drivers, i ride all my life, i rid one. i love it. >> how much? >> 19995 for the top of the line, they start at 7995, a federal and state tax credit available on them. >> i get a tax credit? >> absolutely, 10% from the federal government. >> how long between charges?

>> this bike is rated at 137 miles on highway, and depending on how you ride it, anywhere from real world to freeway use to 80 miles up to the 437. >> sell me. i'm not sold op electric motorcycles. if i buy a motorcycle, i want acceleration, power, the throaty roar, i want a very masculine machine, okay? >> we give you all that without the drama. we give you a bike that has more foot pounds per fork than a thousand cc bike, and accelerates 0-60 with the top of the bikes on the planet, competitive power and acceleration. you get all the torque, all the acceleration without all the drama, all the noise, the fumes, the heat, the vibration. all the other things that are just aggravations and not all the oil in the garage were try m of used to leak. >> that was a machine, okay? that was a machine. i suggest this is maybe dangerous for the rider and for the general public because you

can't hear this thing coming. >> well, absolutely. that's completely false because it's been proven time after time by studies that sound does not make a difference, but visual save lives. ride defensively. if you ride defensively, aware of the environment around you, you'll have no problem. >> it's running? >> it's running right now. we could take off. let's go. >> that's the throttle; right? >> throttle's right here, now active, and you touch it, that thing's going that way. >> okay. it is? >> yeah. >> it's not in gear, surely. >> it's direct drive, in gear all the time. >> no clutch? no shifting? >> it's simpliffed. >> i wanted to throttle it off to see if i could hear it. >> you'll get a surge. oh, i turned it off, you'll get a surge and whir of the noise. if you go tonight -- to the website, you can hear it. it's electric.

it's invigorating when you ride it, very, very rewarding as far as experience goes. it's like a magic carpet ride, floating above the ground, instant torque. >> you sold a lot of these to the hong kong police? >> a big announcement, and other ones coming up soon. we did a test with lapd. good news coming from the rest of the world too. we're getting traction in the fleet world. >> i'm not knocking the product. i would never do that. >> oh, i can tell. >> i'm not knocking it, but i wonder, part of the reason for buying an electric vehicle would be that i don't want to buy gasoline anymore because the price of gas is going up, but gas is cheap for a motorcycle anyway. you get great mileage anyway. >> you buy a motorcycle for the experience, the sense of freedom, connected to the environment, and all of those things. with this bike, you are connected to it because you don't have a wall of noise around you. it's just the feel of the wind in your face and the acceleration coming out of the corners, and all the things you

love a motorcycle for without all of the down sides. >> all right. tell me the truth. how many 20-somethings buy this versus the number of 60-somethings? >> a lot more and more. now, true. the demographic is 35-55 years old right now. >> yeah. >> we see younger demographic coming to the product as well, especially with the fx model here. >> all right, i'm not entirely convinced, but it's a good show. >> get your helmet, let's go for a ride. >> get out of here. all right, everybody, back in a moment with irs scandal. back to reality in two minutes. i want to me things more secure. [ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business soluons from at&t have the security you need to get you there. call us. we can show you how at&t solutions

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♪ >> dollar diswrm posted higher profits, but the discount retailer lowers gyps for the year. shares hit, down $3.90. the nfl and verizon inkedded a billion dollar four-year deal that lets verizon customers watch all games on their phones. shares up on the news, 58 cents, and dora the explorer, and blues clues, two of stewart's favorites going to amazon streaming service called amazon prime instant video. the latest move by the company to stream services to rival hulu and netflix. no deals announced, but the shares moving higher any way. a double amputee olympian charged with killing his girlfriend, post toned the trial

until this summer. more proof the machinery of government was used to influence an election. that's something you hear about, that's next. she's still the one for you - you know it even after l these years. but your erectile dysfunction - you know,that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like ndingo go frequently or urgently. tell your doctor about all your medical conditions and medications,

and ask if your heart is healthy enough for sexl activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backhe or muscle ache. to avoid long-term injury, seek immediate medical help for an erectn lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. >> back in the studio, thank you. back to nicole. lul shares, lulu lemon, that is, a new high. nicole, i cannot believe it's a new high just because they fixed the see-through participants -- pants problem. can't believe it. >> you eluded to the fact some

don't think social security a problem. i would think it's 5 problem if i was at the gym and my participants were see-through, but that's, in fact, one of the reasons why they are jumping here, up 3%. it's now moved to all time highs here when you look at the long term start. they thought lulu lemon would be dead, down paying $120 # for a pair of pants, but not so. restocking the shelf here, continue to test to check for shrinking an color fastness, and pilling and those things. so far, so good. making their way back to stores, and they won't say in how many locations, but the fact they made it through is good. >> i guess so. there you go. thank you very much. conservatives targeted by the irs testifying right now on capitol hill, but the political targeting goes much further than just one agency. yesterday, on this program, a former g.o.p. senate candidate said he was personally targeted by lois lerner when she was at

the federal elections committee in 1996, and they even went after his mother. >> two fbi agents came to my home, and they said they wanted to interview me, and i didn't take the 5th amendment. about a $2,000 contribution that my mother gave do my campaign, where did she get that kind of money, they asked. >> that was new information first reveal on this program yesterday. couple that news with new developments today. the wife of former irs head, douglas schulman has close ties to left wing groups, the same man who visited the white house 157 times. bring in michelle fields from next generation tv, she is right here. my shoal, we've gone through all of this, the extent of the targeting. my question to you have very direct. do you think that it playeded a role and affected directly the result of last year's presidential election? >> i absolutely do. look, the irs dragging its feet on the tax exempt status stived

the thought, stivedded the ideas at a time in 2011 # when we were supposed to have a national conversation about these ideas. you know, i think it's no surprise that in 2010 the tea party groups were all over the place. they were everywhere. in 2012, they were not as active, and the reason why is we now know. they were at home filling out absurd amounts of paperwork answering ridiculous questions like the content. >> now, we got the wife of doug last, the acting director of the irs at that time, the man who visited the white house 157 times. his wife is a left -- operate left, and she's an activist. i'm wondering, is that the connection between the targeting by the irs and the obama campaign, and the left regimely, is that a possible link i would suggest. >> well, i think a lot of these government employees are part of

unions, and they take their marching orders from union bosses who say that republicans are awfulful they are evil. this affects an individual's personal beliefs as well as probably having an effect on the agency's mission, but, look, i think it's hard -- it's very difficult to figure out what is the electoral impact that this has had in 2012, but i think if you look at a potential conservative donor, if you're a potential conservative donor, thinking of getting into the political sphering you look at who is already there now, like a charles coch. he's a household name, not because he created thousands of jobs in america or because he's stimulating the economy, but it's because he goes against the obama administration. he turned into this lex loser evil type of person, so this stifles a free speech because of the conservative -- you realize, i don't want to be involved and be the next charles. >> on the other side of the fence as charles payne says,

supposing we knew about the irs targeting, during the election, that would have affected the vote. >> yes. conservatives and independents too, michelle. people would find this stuff dispickble. >> oh, absolutely. the reason why they didn't want it out because they knew it would affect the election so they kept it hush-hush, and they silenced tea party groups and conservatives making them fill out paperwork. >> michelle, thank you very much for joining us. stay with us on the subject. >> thank you. >> it will not go away. producer, we have tears? there were tom cut tea party person testifying as of right now. listen to this. >> it's your responsibility to make sure it doesn't happen again. here are the facts of my case. we applied for a 501c4 in october 2010. our $850 fee was cast seven days later. we received a letter from robert

dated november 2nd, 2010 stating our application and our user fee payment was received. it also stated that we should be expecting to hear from someone within 90 days. however, the irs did not initiate any contact with us for another 459 days. that was when i receivedded a letter from the cincinnati office dated february 3rd, 2012. that letter stated -- don: i think there's going to be an endless parade of stories like this throughout the day. that lady, i believe, was reduced to tears moments ago. we'll be back with more after this. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros

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>> you know, there's drama moments ago at the irs hearings on capitol hill. this is where victims of irs targeting were telling the stories. he was telling the story. at one point, she was reduced to tears. well, she's finished giving the opening statements, and now there's questions from the politicians. i'm not sure who is asking the question, but has happening now. charles, you were listening to

this with me. you were hearing what was going on there. that was quite an emotion nailing appearance there. >> yeah, it could be anyone can identify with her. she said we sent in the application with the check. the check was cashed seven days later and notified, you should be notified in 90 days. it was 459 days she said. certainly, a lot different than 90, and, you know, this is what happens. michelle made the point, and everyone knows this is what happens. all -- all these efforts to sort of grow these groups, and they are small groups. imagine, this is a tiny group that no one heard of in alabama, but they wanted to be heard in the political arena, and in the arena of saving america, and it was stifled. >> when you intime -- intimidated like that, it affects the amount of money you can raise, affects the enthusiasm of the supporters for your candidate, affects all kinds of things. >> had to be intimidation. if you bought a product from someone, purposeture, delivered in 90 days, a hundred days, you

call the store. 200 days, you call the store, 4 59 days, you pound down, but nobody does that to the irs. you wait in intimidation. >> yes, and you wait for what else do you want to know? what other questions are you going to be asking. >> that's right. >> there's going to be a long parade of the witnesses today covering not just tea party groups, but there's a light to life group, i believe, that's going to be testifying. i think they are from iowa. another right wing -- the word "right wing," but right of center, generally, fairly conservative groups looking for tax exemption status, and they didn't get it, or they were delayed for a long, long time in getting it, telling their personal stories. you're going to hear a lot of personalities and a lot of emotion, i think, coming out of these things. >> these are political operatives. these are not the billionaire coch brothers, but order their citizens, americans, who want to participate in the conversation.

that -- always encouraged to participate in if you're ideology is with the white house. if not, then you are browbeaten in the public, browbeaten in the movies, browbeaten on tv, and it's just no end, and so these people are brave for trying this in the first place. >> these people come on strong in 2009 and 2010. >> they changed the election in 2010. >> they did. the most profound grassroots political movement of a generation, i would say. they were stomped on, discouraged, intimidating -- i use the word "the machinery of government," and your point is valid, that ad we known about this at the time of the election, the effect on independent voters would have been profound because they would not stand for this. >> a lot of fence sitters would have said, you know, i can't, i just can't. people thought they voted for the exact opposite of this stuff, okay? >> let's go back a few minutes to where the woman was testifying. go back to that.

>> we exercised the right to free speech, and we don't understand why the government trieded to stop us. i'm not here as a serf or a vessel or begging for mercy, but a born free american woman, wife, mother, and citizen, and i'm telling my government that you forgot your place. it's not your responsibility to look out for my well being. >> that was moments ago, washington, d.c., the irs, scandal hearings, live on television. real emotion. that's all for us from the moment. dagen and connell? dagen: just me, sorry to disappoint. thank you so much. who gets punished for this? five hearings so far on the irs fee fiasco, and six by the end of the week. so far, we still don't know exactly who is responsible for this targeting at the irs. the housing recovery is real,

home pricings making the biggest jump seen in seven years, a subscription to "sports illustrated"? absolutely, sign me up, but the subscription to check your luggage? united banks on it with bags and leg room. targeting your smart phone, government officials looking into just how vulnerable your hand held device is to a cyber akick. those stories and a whole lot more on "markets now." ♪ one of these days, i'll fall out this chair. top of the hour, stocks now and every 15 minutes, nicole at the new york stock exchange with what, nicole? >> hopefully it breaks well and not fall.