♪ imus in the morning ♪ >> are you getting all the government you do you want all the government you're paying for? apparently not. good morning, everyone. the latest poll shows government care, obamacare has never been more unpopular than it is now. the government agency, the irs makes more headlines. we have the name of the man who allegedly orchestrated the intimidation and we will see the face of lavish irs conference spending. and a government warehouse, man caves were revealed where government workers goofed off. the stock market is beginning to show it. and is this government sponsored crony capitalism? google's eric schmidt in bed

with the obama reelection campaign. if that's not enough for you, meredith whitney is here. and "varney & company" is about to begin. you can't say 'one size fits all'. it doesn't. that's crazy. you can't say we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which cludes investment objectives, risks, charges and expenses. read and consider it carefully before investing. riskncludes possible loss of principal.

>> good morning, everybody. this. big brother getting bigger, a report from a left wing british newspaper that verizon is complying with a top secret court order and handing over millions of requested phone records for the government. that's the super secret nsa. the court order does not allow the government to listen to the conversations, only log the phone number and the length of the call. verizon says it can't comment, it's classified. it's the question, how much freedom are you willing to sacrifice for security. we will of course ask the judge that question in the 10:00 hour and then this. bad news for obamacare. the latest poll from nbc and the wall street journal shows it's becoming more unpopular. 49% think the new health care law is a bad idea.

that negative reading has never been higher. the poll was taken as the irs scandal was breaking and remember, please, the irs will police obamacare. check out this video. is that mr. spock? it's actually an irs official. ferris fink. he will testify today to the house oversight committee and responded to respond to the report that the irs spent 50 million dollars on hundreds of conferences over a two-year span. the dow closes below 15,000 for the first time in a month and looking flat to lower this morning. and down about 17 points. probably. meredith whitney is here and we'll get her takes on the markets and her new book and a whole lot more after this. wwent out and asked people a simple question:

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♪ who can it be now ♪ ♪ who can it be now ♪ >> who can be now? we know at least the name of one in the irs targeting scandal, his name is carter hull. an irs lawyer works in d.c. he gave the directive to employees in cincinnati and however, we don't know who gave the order to mr. hull. now, we're one minute from the opening bell on wall street. look who is here?

ladies and gentlemen, meredith whitney, author of the new book "fate of the states". i want to start with the markets. seems we've turned the corner, bad news for the markets means bad news. >> the markets come so far so fast. it's interesting when you look at economists and forecasters, they say that things happened in a compressed period of time. the outlooks for the year happened in the first six months of the year, they're never recalibrating and how can it extend into the next six months. i think it can and we're taking a breather. >> okay. >> absolutely, because, number one, there aren't many other places to invest in the world so the u.s. benefits from flow of funds. number two, if the u.s. economy is really turning around. we don't see that in new york, but definitely in the rest the of the country and i think the 2%, 2 1/4% gdp growth is a tale of two economies. >> you're doing remarkably well of reassuring us all before the dow opens after a 2% loss

yesterday. stay with us, please, you're with us the rest of the hour, you lucky lady. okay, the opening bell is about to ring. [bell ringing] and the dow jones industrial average down 200 yesterday, likely to be down maybe 20 in the very early going this morning. new jobless benefit claims came in and another 346,000, a mediocre performance, i guess you can call it that. we're looking how the market opens at the big loss yesterday. the opening trend is down and remember, please, we're now at the 14,000 level. soda streams in the news this morning, heavily traded stock. pepsi denies categorically a report that is buying the company for 2 billion dollars. a spokesman calling it totally and completely untrue. nonetheless, the stock is up 2 bucks at 1798. a lot higher earlier in the

pre-market. >> 2 billion dollars the open and soda stream has opened up the last four weeks up 33% in four weeks. and soda stream has become a household name and now the talk of pepsico looking to goldman sachs to try and execute this. now, as you look at this, we're not getting the confirmation from the companies, but there's certainly been a lot of sources and reports lead to go potential deal. stuart: we're getting a categorical denial from pepsi, that's what we are getting and the stock is up and goldman sachs. and i've got to move on real fast and two more stocks are in the news right now. increased costs hitting the profit at what is described on this teleprompter as the luxury hand bag maker, vera bradley. are they a handbag maker? is that how we've described them these days. >> i've never heard of them. not my handbag maker. stuart: i thought you'd know the name. look at the stock, down 11%. the handbags are out, we

understand. and by the way, what's the ceo doing there? is he retiring? yeah, the ceo is leaving that one. okay. as we've mentioned before, the left wing british newspaper, the guardian, reporting that verizon is handing over millions of customer phone records to the nsa. no impact on verizon, this is a political and security story, it's not a financial story and verizon is still up 4. and this from the most prominent banker in american, jamie dimon, he says as interest rates go back to normal, thing that's going to happen, the market is, quote, going to be scary, and it's going to be kind of volatile. i want to bring in keith fitz gerald from portland for your reaction to what mr. dimon had to say. >> i think he's talking a book, and sent out to shareholders we expect a profit of 5 billion dollars if rates rise and i think he knows that's what's coming. stuart: you agree with him.

volatility, rates go up, you agree. >> we're seeing that in japan. the reason is good is bad, bad is good. and bond sellers, that's one of the liquid markets, that's creating uncertainty and uncertainty creates volatility. stuart: and meredith whitney is here and agreed to stay for the entire 9:00 hour. >> how could i leave you. stuart: jamie dimon says watch out, rates are going up and volatility is going to happen and you say what? >> say that the loan growth environment has been very weak, what banks have done has put a lot of securities on their books and making money off of asset inflation of bonds. if rates rise, the value of bonds go down and that's a capital issue for a lot of the banks. a lot of the insurance companies, across the globe. so, i don't know if that's specifically what he was referring to, but this is something investors need to be very mindful of, what type of hit on the securities books will

banks and insurance companies take from a sudden rise in rates. stuart: i want to repeat that for a second. banks hold a the lot of bonds. as interest rates go up, the value of those bonds goes down, so the banks books take a hit and that encourages volatility. here it comes, yes he? >> here is comes. it's a question if banks have to write down the assets, that's volatility in earnings and how they're positioned in an interest rate perspective is, you know, is critically important. now, as rates rise, banks can charge more for their loans, but what people are not talking about is the capital hit they may take from the bonds they own. >> we've got it. as i said again, stay there for the whole hour to go. keith, come back in, please, because the whole world seems to be, just recently, last week, ten days, the whole world seems to be showing equity losses, stock markets down. what do you say about that? >> well, again, it's bad is

good, good is bad. i think what's going to happen is that we are going to see a breather here as meredith pointed out suscinctly, the markets are overdue and we can continue for a while longer and a couple of comments out of the central bankers, we need more stimulus, we're not quite done that's going to reinvigorate people who want to go risk on. stuart: they hint we're the not finished with the money printing? does that work? >> well, that's a very different question. will it work? every cumulative stimulus efforts we've seen in the last six months, nine months, have less and less effect. people wake up, long-term it's a problem. short-term is feels good, but you don't cure an alcoholic by giving him another drink. stuart: this is true, i understand. you're the expert on japan on this program. fill me in on japan, i've never seen volatility like that. down 7%, down 5%. i think they're down 20% in what is it in the last ten days or something? what's going on. >> yeah, about 18% in the last

ten trading sessions. we'll see. i haven't looked at the overnight markets yet today. what is happening, people are coming to terms with their unlimited stimulus program, three times the size of what bernanke is doing here, to give you an idea, and the economy is one third the size of what we're dealing with in the united states. bond traders don't know whether to come or go and that's translating into equity. a value at risk model and that's gotten way out of line and they're selling stuff. stuart: does it have a direct impact on us? >> not yet. what dimon is alluding to is the volatility is coming here because the uncertainty of those bonds, whether to buy or sell, is what we're going to experience on this side of the ocean very shortly. stuart: we're watching for it. keith fitz, thank you very much indeed. and worldwide, equities, stocks seem to be coming down a bit. >> just a bit. the emerging markets hasn't been

a great place to invest this year, but the u.s. has. the market is up what 16% in year extraordinary inside of six months. it's not like a miserable year last year. it's got momentum to take a breather here and there is okay. for people to get worried about rates, rates are a good thing and a bad thing, right? a good thing because our economy is coming together and we've got to get more people employed. but a good thing in terms of at least businesses are more stable and more profitable and with that comes job creation. a bad thing in terms of how people are positioning their book. it's certainly a good thing for retirees. retirees are miserable because they're not making money. i think there's more good with rates rising than bad. stuart: what we want is the big picture. people like me, we get so bound up with the day-to-day movements of the stock market. and you're forecasting and look the at the market on a day-to-day basis and that's not really the way to look at it.

you're giving us the big picture and reassuring us on the position of the american stock market, aren't you? >> yeah, i think if there's. look the american economy is restructuring before our very eyes. and there's some great stories within the american economy. and it's a game changer, right? so what we knew to be the world of leveraged high finance and housing, it's not that world anymore. it's not that world for jamie dimon and the big banks. it's a different kind of world, it's more of i would say a to basics world. sure there's social technology and media, look at the stocks doing well, transports, the autos, the materials, the chemical companies. these are all the companies that are going to lead the country forward. >> almost like my father's stock market. >> i think it's very much like, you know, what is old is new again. you know, is new again. >> we are going to deal with your book in just a moment, but first this, meredith. how is this for a headline.

ed restney, he ran mcdonald's for decades and invented the mcnugget. he has one heck of a headline for you and yes, another unintended consequence of obamacare, this is from mcdonald's, it's bad news for small business. he says, we're going to give you a number of small businesses that go out of business. this is come from the man who ran mcdonald's next hour. and verifone-- >> analysts say they took the eye off the ball and trying to aggressively shift from the services to hardware sales. in the meantime, they lost the market share to their rivals and compete against ncr and radiant. searching to are a ceo and the forecast is below the estimate and now that's why you see it

down. stuart: finally, the naming of names from the wall street journal. it's reported that an irs lawyer in d.c. instructed employees in cincinnati. and some low level employees are speaking out, it wasn't us in cincinnati, it was people like carter hull in washington. elizabeth in cincinnati, very angry. she says she contacted washington after she started receiving tea party cases more than three years ago. she got instructions from d.c. on how to handle them. it is moving up the food chain. check the big board. we've turned around. we were down 20 and now we're up nearly 20. 14, 977 to be precise. time is money and 30 seconds of what else we've got for you, some offbeat investments. state governments want to buy your life insurance policy before you die to cover your medicare costs. we'll talk to a man in that line of business, but he competes

with the government. how about opening up a big storage unit, bidding on everything inside. without exactly knowing what's in there and finding hidden treasure. we'll talk to two stores of storage wars. you've seen that? want to get in on samsung rise on apple? you can't buy the stock. charles payne has a way to play the company in the next hour. it's a theme we hit on often on "varney & company," people fleeing, and high tax high regulation states are moving. and meredith whitney is here. she explains and responds to critics after this. off beat investment day, we're no stranger to this. remember this diamond on the show. >> i really like that not because it's a lot of money, but it looks beautiful. >> spectacular. >> you wear it so well. >> thank you, stuart, i agree. stuart: three carats.

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>> we've got this from the house oversight hearing from irs. and saying that irs did not declare the value of the gifts they received at the lavish conferences and issa says they committed tax evasion. now we've got an explosive new report of what we're going to call crony capitalism, it's between google and the obama reelection team. business week reporting that

google's chief eric schmidt was a key asset in the president's reelection, helping recruit talent, choose technology and coach the campaign on leading a large organization. he was even in the campaign's boiler room in chicago on election night. schmidt thought so highly of a team of engineers athat he assembled, he kept them together as a consulting firm. is this crony capitalism? apple, not google, apple was raked over the coals about overseas taxes and earnings. more on that later. we're still with meredith whitney. she is the author of a brand new book, it is called "fate of the states." all right, the premise of the book seems to be there's a new migration pattern in america. explain it. >> it's clear that businesses are voting with their feet and moving towards the center part of the country and texas all the way up to north dakota and some of that is energy related and

some is ease of operation related, right to work state related, tax related. and resource related. so, it's clear that the businesses-- or the smart money is already doing this and what i say in this book is, now what i wanted to do with this book is educate everyday americans to say, this is where the opportunity's going to come from. as you see a demographic shift as powerful as you saw with the sun belt's migration happening in the central corridor, what's going to happen? home values are going to rise, job creation is down every single level because these are the states that are spoils of riches with tax receipts and they've had conservative governments so don't owe a lot into the pension fund. stuart: the central backbone of the country? >> that's a great way to describe it the backbone of the country. people are moving there. they're moving away from high tax, low services. >> businesses are moving there. rich people are moving. and i like to say, california is

moving to texas. new york, new jersey, connecticut, moving to florida, but businesses are moving into the center of the country. what that will mean, and the demographic shift always takes longer. it's a multi-decade cycle, that more migration will happen in the center part of the country, which is great if you're investing-- >> this is new. every 60 years or so the u.s. economy reinvents itself. and that's what's so reassuring about the united states. it's exciting, it's reassuring and that's why i'm so bullish on the u.s. so you have inside the central corridor, emerging markets type of growth. so, high single digits type growth, while in california, arizona, nevada, florida, you've got low single digit, meaning like 1 to 2% growth. stuart: the reviews of this book have been harsh, harshly critical. i'm going to get into just two. from reuters, they say you've got no data basically. you don't know what you're talking about, you've got no data. and secondly bloomberg reviews,

gross generalizations and outright error. it's pretty harsh stuff. >> i'm glad the critics are coming out first because the good reviews are coming out later and i'd rather have the folks that hated me anyway come out first, to say that there's no data, it is -- i mean, it is data loaded. that's just a factual inaccuracy. everyone is intitled to their opinion, i'm surprised they didn't say who does this brood think she is? >> don't use that word. >> these attacks are more personal than anything. i am so proud of this book. i did this book because i think it's such an important issue and i want to educate so many people because of that. stuart: meredith. you're not done yet. you're not at the top of the hour, you're done there. we're getting into your call on the muni market. and the gold report this morning, where are we?

the dow is up 26. what happens to gold when the dow is up 26? not much. 1397. let me repeat this, meredith predicted had a muni bond crash, harshly criticized for it. she's going to offer a defense next. ♪ ♪

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london for punishment still with us, author of fate of the state. you took a lot of heat in 2010, the muni bond market was going to be in deep trouble. and it didn't happen and you have taken a lot of grief because of that. >> i was talking about a much broader issue in municipal finance and municipal finance being in dire straits. and pension funds, and municipal bond holders so when i was asked

about municipal-bond they will suffer the same hint as the others. i never mentioned the time frame. i said the issue of municipal finance is something to worry about because that is when the stimulus money was running out. municipal-bond convenient made it seem like i'm aid the statement which i never did. and was taken an emergency management. stuart: have you changed the time frame? >> time frame was never specified. stuart: there is a hybrid, meredith whitney, we appreciate it. the few years from now we should see mortgage rates hit 4% when we get the official numbers. we are looking for it.

the irs says mr. spock testifies on capitol hill, ravished spending in focused and the coke brothers confirmed there in the market for newspapers. if the by the l.a. times is this what will happen? >> it is the. . i want to make things more secure.

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from the "not me" system, you can respond instantly if you suspect fraud to help stop identity theft before the damage is done. last summer lifelock protected er 2 million people, and this year they can do it for you. ♪ or go online and get 60 days of lifelock protection risk free. that's two full months of proactive protection to help keep your identity safe this summer. ♪ or go online to lifelock.com/planahead. use promo code planahead, and get 60 days of lifelock protection risk free. enjoy your vacation, knowing lifelock never takes one. stuart: june 6, '69 years ago this was the day. today we bring you is this.

looks like a case of government sponsored crony capitalism. eric schmidt in bed with the obama reelection campaign. 20% of small-businesses will fold thanks to obamacare, says the ceo and he is here. so is the man who got $250 million per year for football just to put games on your smart phone. how is this 4 different investment? bidding on your neighbor's junk. two starnes from storage wars are here. the irs version of star trek. you will see spock testifying. what a day. just got it. the latest read on the 30 year mortgage rate from freddie mac, 3.91 creeping closer tie that 4% level.

to the big board we turn around, we were down 20 and now we just recapped 15,000, the dow is up 39 points and siena is the big winner. i want to know why. nicole: they're profit numbers were a surprise to the upside. sienna corp. is up 12% moving to a new annual high and they are and networking company, when you have a voice or data you are transferring, that is their business, what they do. as at&t and verizon expanded, that benefits names like cn and they compete with cisco systems. stuart: this was a stock that was recommended 24 hours ago on this program by charles payne who did it yet again. charles: a lot of wall street firms are saying they thought it was looking better. this telecommunications group

has been absolutely battered but we have to get bigger and better. if you go adjusted for that, stock has been $859 a share. we are holding on and there might be more upside. stuart: when he recommended two days ago 16. now it is 18-24. i should listen to you. i have got an explosive report of what we call crony capitalism between google and the obama reelection team. business week reporting google's chief erich schmidt was a key asset in the reelection, it was even in the campaign boiler room in chicago on election night. schmidt thought the event put up several million dollars to keep the team of obama technical data processing engineers keep the team together. reassembled that team in the first place. the is the sole investor in a new company. it is called analytics.

charles: back on election night it was simply called the cave. stuart: he created it. for the obama team and he coach jim messina who ran the reelection of barack obama. that is an extraordinary tie-in with the campaign. charles: he picked as the technology, touched the campaign and it is so interesting because you see how all the old school experts were surprised. these guys took the big and boiled it down to microtargeting and the idea that you have old school operatives who were pretty confident and republicans win but michael targeting. and so revolutionary that to your point they decided to keep it intact. future presidential elections. it swayed public opinion,

extraordinarily powerful. stuart: this is the capital an end point. remember the hearings on the hill where technology companies were hauled over the coals because they made money overseas and didn't pay tax on it in america. apple was hauled over the coals, google was not. even though it too had a huge amount of money made overseas. charles: i will do this in the next few days, examined google and create these wind farms and the subsidies from taxpayers to do this. google sucks up more energy than any company on the planet. when you do a google search use stuck up so much energy in one second it is amazing and what they're doing to offset that buying wind farms or investing in these things they get gigantic tax that is getting back to the crony capitalism angle. stuart: move over, jeff immelt. you serve your purpose but you are old school. the ira scandal continues with another hearing on capitol hill

about lavish spending. they played the infamous star trek training video. that is mr. spock, who played spock, testifying as of right now. his name is ferris think. he was in the video and is testifying right now. congressman elijah cummings is on this panel, bringing these numbers, he says between 2007-2008 at the financial crisis was unfolding irs spending on conferences more than doubled to $29 million for 2008. the wall street journal is reporting an irs lawyer in d.c. named carter hall instructed employees in cincinnati on the questions they should ask to conservative groups. i want to bring in matt welch, reason.com. he is the rubber terry and.

what is your take on this ira scandal? >> the thing i'm most concerned about is the most innocent explanation. what if there was no political motivated instructions to these people? what if no one was talking about elections? what if all the ira's people sincerely thought they would doing their job? that is why we got what we have gotten. stuart: when your enemies have infiltrated government at the grassroots level and put their politics into practice with intimidation in the it is >> it could be. >> the people were attracted to the irs are attracted to the media are academic who don't work and the morning thinking have an agenda against conservatives but culturally that is where they tilt. and the police have an institutional bias against two

pretty people,. >> elizabeth is being investigated by congress, one of the cincinnati people, she is the person who said it was carter hall naming names in d.c.. she is outraged about what happened. she is really upset about the demeaning nature of the orders she was getting. i don't think she is one of the leftist moles in cincinnati. >> there will be enough people in there who think that is the normal way of doing business. and people who recognize that the time or shave that the instructions. we make those things stop in 2010. that plus the culture of lying, people when asked by congress are you doing this, no we are not, suggests there are is serious throughout the united states. stuart: a leftist british paper

says verizon has been delivering phone records to be in essays, millions of phone records, all of them basically, of americans. my first kate was ok, if you want to find out which terrorist is calling which american that is fine with me. who called that american? i want to roll up this network. i don't have a problem with that. do you? >> i do. the problem is i have a verizon phone and michael all information is known by the entire government. if you look at the way the federal criminal code has expanded from this to this, we commit, all of us in this room, even stuart varney, on average according to the civil libertarian silver hardly, three felonies that dave will law-abiding civilizations, you write it wrong in a check or do this or that, we have overcriminalize white. if any federal prosecutor takes this information and decide they don't like you or they don't

like charles you're in a world of hurt because they have this information they can use against us. it is not going to be used just to stop the terrorists but to stop disfavored people including the irs tea party groups you are defending. stuart: because you are paranoid doesn't mean to say the world is not out to get you. thanks. thank you very much. it is official. charles coke confirms he and his brother david are looking at the possibility of buying a newspaper. tribune co. newspaper the l.a. times is one of those being considered for purchase. here's a statement from cottage industry. whether it acquires a media company remains to be seen. no decision has been made on this matter but at the wall street journal story makes clear, we are not willing it out. they went on to say protesters will not have an impact on their decision. charles: these newspapers for the most part are all going out

of business and ultimately the ones that have influenced big names will be bought and owned by very rich people who can take the losses and even have longer-term strategy of turning them around. i don't know they are going to change a whole lot but they might try to make it more of a news organizations and it was at one time rather than a left-wing opinion piece that it has become. stuart: okay. enough on this because i am fascinated by the whole thing and don't want to burden our viewers. charles: employees my hope someone takes some over before they have private bankruptcy. stuart: 84 or 86, 84-year-old gloria mackenzie from florida has come forward to claim her $590 million power ball jackpot. the largest lottery winner ever. after federal taxes she would get $278 million, little more than half. let's look down the line.

is state taxes. in her 80s, huge pot of money coming at her. what do you say? charles: the time since she won before she revealed herself >> all her phone numbers and moved somewhere else. she may think she knows all her relatives but she is in for a rude awakening. from here two miles down. already she has taken half and there will be estate tax. charles: stuaat: i don't think there is. if you get a smart state lawyer, surely you can avoid estate taxes. charles: she could set up some trusts. that is what warren buffett and bill gates do even though they would like us to give our money to the government. it is fascinating, a woman who played the lotto in the first place and secondly i hope she can handle the stress of being a winner. i really do. stuart: it is a big money deal,

the nfl getting $1 billion from verizon to broadcast games on mobile devices. we always say this is a game changing and we have a person who negotiated the deal after the break and speaking of investing in sports, the jersey worn by mike -- stopped laughing. during the famed miracle on ice. we have it on the show, sold for $660,000. it is an offbeat investment and this is an offbeat investment day on fox business. do you remember this? i understand it was a remarkable item in sports history that $1 million for jersey. >> it was voted the most significant sporting moment of the 20th century. we went out and asked people a simple question:

how old ishe 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 the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

stuart: financial security agency has ordered verizon to hand over millions of customer phone records. the government can't listen to your calls but the monitor the length of them. verizon won't comment. judge andrew napolitano will comment this morning. the chief retiring just at an increased cosseting profits and just down 11%. the dow is down on little bit. we have been all over the place, basically flat at the moment.

to philadelphia where six people are confirmed dead after a building collapse. officials rescued a woman last night after she was trapped for 12 hours and rushed to the hospital in critical condition. the nfl sealed a major deal with verizon, could change the way we watch football and there's a lot of money going to football. let vavampire. but he's not. ♪ luckily, he found someone who gave him a fresh perspective on hisortfolio. and with some planning and effo, hopefully bob can retire at a more appropriate ag it's not rocket science. it's just common sense. from td ameritrade.

stuart: judge andrew napolitano on the phone with us, verizon

handing over millions of customer records to the fed's policy record order to do that by the nsa. give me 30 seconds as to why you are not happy. judge napolitano: the constitution is not happy. because the constitution requires that the people shall be secure in their persons, papers, houses, effects and things against unreasonable searches and seizures. and not the issue except on probable cause of crime, specifically describing the thing to be seized. let me tell you what is being searched and seized. thirteen million -- stuart: hold on a second. this was done legally under the terms of the patriot act, signed, sealed and delivered by congress. it is not an illegal operation. judge napolitano: it is legal but it is profoundly unconstitutional because the statute which authorizes it

directly contradicts the constitution and the constitution is the law of the land. this is the most monumental violation of the fourth amendment in one stroke in the history of the land. verizon has 1 thirteen million customers in the united states. they transfer or are involved with over 1 billion telephone calls every day. that is the magnitude of information secretly being given to the government in the face of the constitutional prohibition to the contrary. that is what the american people woke up to and learned the government is doing to them this morning. stuart: we are out of time but we hear you and appreciate you taking time to give us your take on that. judge napolitano: i appreciate your giving me this time. stuart: the market is dead flat. there is not much happening in stocks. we are up a point. i called that dead flat. another big story, football

going mobile and there is serious money involved in this. the nfl struck the $1 billion four year deal that will allow verizon customers to watch any and all nfl games on their smart phone. look at that money. joining us is the architect of the deal, nfl's media chief operating officer. you work for the nfl. the money is coming in to youth at the nfl. football is acquiring this money. >> that is right. it is good to be in the football business. sports is one of the things that regardless of the media landscape sports is a healthy business. stuart: this and riches football beyond measure. does it filter to the teams? >> it does. what the nfl does is somewhat unique in some sports, the major media rights including live games on media that money is shared equally among teams so

they will actually benefit. stuart: the other side of the colin is the way in is the way watch football games and you can watch a game with the verizon smart phone? >> if you are in new york and the giants are on the air in the new york market and you need to go to the store you can see it. stuart: is unbroken coverage no matter where you are. >> you will get it and it is really because we understand that is where our fans are going. nfl football is america and america is going mobile, smart phone penetration is off the charts, smart phone is no longer an optional piece of the equipment for an american. we need to go where our fans are going and they have been consistent about they want to see their sports and nfl football, harnessing the power of mobile which is clearly one of the fastest-growing if not the fastest growing media platform in history is important to us so verizon is a partner to

do that. they're a leader who do a wonderful job of our brand and content and it is a relationship that is beneficial. stuart: how long did it take to get a quarter billion dollars a year? >> we have been talking, verizon has been a partner since 2009. stuart: this is renewal. >> modified deal. stuart: expanded the number of gains. >> we expanded the rights of it. superbowl -- playoffs will be there. stuart: of the thing -- anything but rather disease unanswerable? >> we are partnering with an apps called nfl mobile which will be everywhere a smart phone is and what we see in our business live games are clearly important but we are a ton of growth and nfl fan wants to interact with the nfl not only during the game but throughout the week and in the off-season. what you see, tremendous amount of growth on tuesday during the season where people are checking

highlights from the week before or injuries coming up. stuart: when that is called saturating the market. well done. >> we call for fulfilling a need. the fans are demanding this. stuart: quarter billion dollars, well done. thanks for joining us. we know some companies are willing to buy your life insurance policies to make a profit before you die. now states are getting to do the same line of business. we will explain it all in a minute. a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in o second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason

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stuart: a dead flat market. the winner is yum brands. nicole: yum brands was doing well today and they are the parent of taco bell, kfc and pizza hut but pizza hut has a special anniversary for their 50 fifth anniversary and are offering customers, sound like a commercial but it is a fact there's a press release that goes with it, large pizzas $5.55, get it for the 50 fifth anniversary with one topic and the fifteenth of june. i know even you might like a nice bargain on the thin crispy and tossed crest. stuart: that is a loss leader.

there is no way you can make a profit on $5.50. i don't think there is. thank you very much indeed. how is this for an offbeat investment? you sell your life insurance policy before you die, cash out basically before you die. states, some states are getting in on the act. they are doing it too. here is the organ music. scott page, frequent guest on this program, ceo of lifeline which does this kind of thing in the private world. let me tell the audience what you do and make sure i got it right the someone calls you with a life insurance policy you bought a policy. you give the person cash, don't give much but allow them to cash out early. that is what you do. >> that is exactly correct. we give them an option which is a surrender and council policy getting zero and those times and eight to ten times what the insurance company will give them

if they surrendered it with the insurance company. stuart: they pay usually $0.20 on the dollar. if i get $1 million when i die you will maybe give me $200,000 upfront. is that it? >> it is more complicated than that. we know how much premium it keeps the force and how long individuals are projected to live so the average range could be 12% all the way to 60%. this new law in texas gives us a vantage is for consumers to be more aware of specific options. stuart: some states are saying we will buy your life insurance policy before you die and instead of giving you cash. and home treatment for hospitalization and giving old person's homes, payment in kind for your own age. that is the competition for you. >> what happens is the stage in

texas, allows medicaid applicants to sell their life insurance policy and the proceeds deposited into long-term care account. what that does is allow the individuals to select private pay which means quality of care will be better and they send this money down prior to going on to medicaid. it is estimated by the government accountability of is the one of four people applying for medicaid have a life-insurance policy. currently you have to surrender that life-insurance policy to be eligible for medicaid. and it delays the entry into medicaid so it is saving the state's money. in texas alone one in four individuals applying for medicaid have a life insurance policy. we are actually purchasing the policy. the states are endorsing the transaction because if an individual cells their policy to as they take proceeds and pay for private care and it delayed entry into medicaid. it will save the state of texas

$20 million in the first year because individuals who would be taking state funds to pay for their health care will take the proceeds from a live settlement can't pay for their health care so it is delaying entry into medicaid. stuart: you still take your peace, you're still betting on death. >> we're still betting on death and purchasing the policy but finally the private sector and the government are working together and is all about awareness. this mandates medicate applicants to be advised that instead of surrendering their life insurance policy we are the only one that wins in that scenario as a life insurance company. to actually sell it into the white settlement market and get proceeds that they need to live their life with quality and make health-care decisions they need because with obamacare which i am not a fan of any longer, i have been converted and the longer a fan. stuart: thank you very much. 20 seconds left but you hit me with the lead for the entire

segment. 15 seconds. you tell me why you are no longer a fan of obamacare. >> i own a business. in the past two years my health care has skyrocketed 40% for health care costs and i look at what is happening with medicaid. they are being jammed into accepting a little bits of money for their service and affecting the care of individuals in this country. the state of texas is the first to get on this. seven other states behind it and you heard it first on "varney and company". it is part of a retirement option for everybody. stuart: scott page, thank you very much, you saved the best for last. thank you very much. coming up on this program today, the former chief of mcdonald's says a bunch of small businesses will go out of business because of obamacare. here is another offbeat investment, bid on a storage unit without knowing what is in it hoping to turn a profit. we have the stars of the reality

tivo -- tv show storage wars. would you be willing to do this? >> you are in the game. just double our p we are in the yo-yo business for sure. we hit the mother lode of yo-yos. >> the last thing someone with no attention span needs. [ male announcer ] if you suffer from a dry mouth

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stuart: some fireworks at the irs hearing on capitol hill. the infamous picture seen here made an appearance. rich edson is following developments. how did that picture pop up in those hearings today? >> you didn't even still be wind. this is about irs spending $4.1 million on a conference, the mr. spock the where eyes -- iris employees are playing star trek, $4 million on this conference and asked one of the official did that picture from the general services administration with the wine and all that, did that make you change your views with your spending at the irs wants that became public? didn't answer the question. the hearing is on a bit of a break. stuart: a good crop. thanks very much.

all day we are looking at offbeat investments and as part of this theme charles is here to tell us how to invest in hurricane stocks. charles: couple for you. one is clean harbors. i discovered this personally after hurricane katrina. a lot of waste cleanup and management. this is one of these companies that does industrial waste, very aggressive epa, and hurricanes every now and then, and pike electric. it was the first stock i did when making money on your show. and test lower the first. it was $15 and we took profits and it is a good spot. they pick electrical lines and destroyed in these to build on infrastructure for solar and wind. stuart: we will watch them. the junk used to work can be worth a lot more than you think.

reality shows storage wars feature professional buyers to bid on the repossessed storage units in search of hidden treasure. bidders cannot enter the storage unit. they have to make a decision looking from the outside. joining us now one of the show's stars, jared schulz, ladies, welcome to the program. good to see you. i want to make sure i got this right. lots of viewers have seen this show. you bid competitively on the contents of a storage unit. you don't know what is inside the storage unit or outside. and it opens it up and see if you can make a profit. is that how the show works? >> it is. exactly how it works. stuart: we ran a bite from a show where you discovered a bunch of yo-yoss. tell me how -- how do you make a

profit? do you sell them to? >> sell them to everybody. the great thing about what we do is the items are so diverse there's always someone looking for the stuff we got. don: stuart: how much they live -- bid on a unit? >> depends how much the other people bidding. stuart: what is the most you ever did? >> our highest day we spent $1,000 on units. stuart: did you make a profit spend $11,000 on a unit? >> you we did. we made 25 of of all those units. >> we spent $11,000, made $20,000, it was one of the best investments. anytime you get 2.5 times your money is a good investment. >> spend money to make money.

stuart: what was in a storage unit that allows you to double your money? 25 grand? >> it was actually a furniture store that had gone out of business and we bought four units filled with brand-new furniture. stuart: you must always look at hidden gold bars or an old renuart or something like that, is that the dream? >> that is what this one is looking for, hidden gold bars. >> we still love seats and things like that, that is what we sell every day but the stuff i like, the real tangible stuff you can sell easily, don't have to have a retail store to do it and it is a quick return. stuart: you were very sarcastic to your partner when he uncovered the yo-yos.

you want to take that back? >> no. stuart: who bought the yo-yos? who bought them? >> spend money to make money but at the same time when i see motorized vehicles i have a weakness. if it has a motor and has a real time interested in it already. we just got lucky. stuart: that was a weakness. thanks for joining us. very interesting. i will watch the show, a promise i will watch the show. >> let me tell you if you have something more secure to invest your money and i would go that way. stuart: watch this show, and next, ceo of mcdonald's for decades, no stranger to profitable business, he has a headline for you and it is all

about how obamacare is killing small business but first we just heard from storage wars, items found in every corner of the country could be worth a lot of money so we are told just like this dresser we had on "varney and company" found in a house, ended of being sold for close to $1 million. it is worth $1 million and you serendipitously found it? >> it lost its recognition of regeneration this and had television and land on it. stuart: an old television? it lost its identity.

stuart: we are pretty much unchanged around the middle 360 right now. ninety-five dollars would mean gas prices go up. now to the housing market, latest read on the 30-year fixed-rate mortgage is 3.91%, real close to that 4% mark and initial jobless claims, the number of people applying for first-time benefits, the big numbers comes tomorrow morning. let's check the big board, it is the go nowhere day, the calm before the storm, the storm

being the jobs report tomorrow. one floridian is richer after claiming the largest power ball jackpot in history. the 84-year-old woman is walking away with $370 million before taxes. next, former mcdonald's chief. 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, and low fees and commissions are another reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heaburn 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 stuart: our next guest says 20% of small businesses will be killed within a few years because of obamacare. joining us is a former ceo of

mcdonald's. that is a dramatic headline. wants to explain it for us? >> if you look at what is going on, take chicago, we don't have insurance exchanges yet, gasoline is $4.51 a gallon, a dollar more than the next city. we have disposable income going down in illinois, small businesses, restaurants are all small businesses, we are losing 8% of the restaurant year now, obamacare lead 40 to $45,000 more in cost to the average restaurant whose profit is 4.6% who has a 14% ebitda. by 2015 you will see the number of 8% escalate to 20% in the restaurant industry. keep taking disposable income away adding cost to small business. stuart: can't restaurants for example changed the hours restaurant employees work so that they don't have to be

provided with health care by the employer? can't you juggle things around to fit the bill so to speak? >> that is a common misconception. you could limit all your employees to 20 hours or 30 hours or less, some of the states are mandating 25 or 20 because we are expanding medicare, have the highest unemployment rate of 16-year-olds to 24-year-olds which increased 7% in the last five years. when people can't work they don't generate money, you have got this spiral downward to spend in a restaurant and increasing costs, that spirals the death spiral. stuart: there is no way around this. 20%, first of all small businesses r-utah king 50 employees or more, what you talking about? >> i might use the federal definition of under 499 employees. i am talking about average

typical which most businesses only have one employee but small-businesses of the 25 to 55460 employees or prime example of that. a cannot absorb the cost of the health care act when we are going to be faced with the come january 1st and don't have insurance exchanges. we were supposed to have small business exchanges. where are they? this is a catastrophe waiting to happen. the only thing small-businesses can do is raise prices and cut payroll. that is suicide. stuart: why don't i see a political response to this? if it is such a disaster as you suggest and you see it coming at you, why isn't some politician saying come on, we can't have this. democrats are not saying that. >> i don't think they care. somehow it will all sort out and

illinois has $110 billion pension problem, they came out and totally ignored it. they talk about it but they didn't bring it to the forefront of the action. they don't care. they think ultimately they will tax people, get the revenue they need, continue to squander, you had a guest on earlier today who said he is no longer in favor of obamacare. why? he has a small business and finally understand how expensive is going to be. stuart: when you were dramatic and thanks for joining us. i wasn't quite expecting such a dramatic headline but you gave it to as. >> we all ought to be afraid. stuart: i want more on this. see us again. no surprise obamacare is becoming more unpopular, no surprise. a defiant president obama is circling the wagons. here is my take. the wall street journal poll 49%

think obamacare is a bad idea. that is the most negative reading since the affordable care act was passed. it is not that hard to see why this is happening. obamacare is all about government and government is not looking good recently. let me digress. i will take you back to a big election in britain. that is where government runs the entire health system. prime minister tony blair is out there stumping for votes and confronted in the street by an elderly lady who is very upset about her cancer treatment. why aren't you paying for this drug, why can't i see a specialist, could get away and it was all captured on tape. it became a significant moment, signature moment in the election. and health care becomes totally politicized. who gets what depends on political clout. desperate to get away, the prime

minister had to look into her case. obamacare, will put the government in the center of your health care. politicians will decide your treatment. you really want that, is increasingly clear america doesn't want that. don't expect the president to shift position. and toughing it out on benghazi, stonewalling the irs and eric holder in pursuit of the media. it is going to be very rough. if you think it is ugly now just wait until obamacare actually arrives. that is a few months away.

>> it is embarrassing. and i apologize. those videos, the inspector general's report, there is not a clear delineation of the cost of both the videos that they are embarrassing and i regret the fact that they were made. stuart: i feel bad for the guy. he is the irs official who played spot in the infamous video. i am not down on him. charles: you got to be a little down on him. this whole conference cost

$4.1 billion, upgraded their rooms, he oversaw small-businesses, self-employed aspects, think about that. it is ridiculous, absolutely ridiculous. it is hard to feel pity for these guys. stuart: i don't feel pity but i am a fellow traveler. i got it. breaking news breaking with this involving possible insider trading on the smithfield foods deal, the sec froze the assets of the trader in thailand who made $3 million in profits by trading in advance of the announcement of the deal. and they bought by china or theoretically the chinese trying to buy it. continuing all their offbeat investment coverage on fox business is charles and he will tell us how to invest in samsung. charles: can't just buy the stock. one is a company called magnate cit. they make chips and their use in everything, the camera, the

converter, the back light, the protection. it is just absolutely amazing. it had a good earnings report recently. stuart: okay. charles: this is a little more of a volatile stock. by samsung. it is amazing. stuart: you have seen it? charles: it has been premiered several times. it is universal panel. they have missed earnings estimates in the last four quarters. stuart: i want one of them tvs. thank you for joining us. dagen and connell, it is yours. dagen: you are not alone. what about your privacy?

a daylong series on fox business kicks off this hour. the chairman of the commodity futures trading commission is here to talk about the big trading glitch overseas. nascar's jeff gordon. what it is like to try to sell a $30 million apartment in new york city. all of that and so much more coming up on markets now. ♪ connell: that is a pretty good lineup right there. i know you are pretty upset about jeff gordon. dagen: i have never interviewed him. two great stories. we also have, and that jamie