♪ imus in the morning >> this is the day after ben's big speech and nobody is going to like what's happening. good morning, everyone. try these headlines. another big drop is coming, a massive selloff in gold and maybe the biggest deal of all, interest rates go straight up. investors taking a hit and home buyers are taking a hit and so is president obama. who or what will get this stalled economy going if ben quits printing? it is a big day and we've got a big show for you. dr. ben carson is here, and angie is here from angie's list and a libertarian shootout, stossel versus the judge and "varney & company" is about to begin. having triplets. [ babies crying ] surise --

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>> all right. everybody, we are going to

start with the action swirling around your money. it is not good. when ben said he may print less this year and nothing by next year, the reaction was negative and again this morning. solid interest rates going straight up. 10-year treasury yield up 1/4 point overnight and you rarely see that. and gold a huge hit. down $80 as we speak. look where the dow jones industrial average will open down another 115 point after the 200 point decline yesterday. ben reversed a 30-year long decline in interest rates. that's how big a deal his speech was. he took the money away from the stock market as well. so, we're looking at the aftermath today. but, i'm going to bring you one big stock winner this morning, we're looking hard here and found one, we put gamestop on death watch and so did this

guy. >> where is blockbuster? that's the point. the companies that sold physical media are not here and you put gamestop there? >> yeah, around three, four years away and that's not good for the future. stuart: that was then and this is now. microsoft says xbox one ice-- users will be able to sell used games and the stock is going to pop. and just about the only one out there that's going to pop. we're looking, can't find many. while we're at it, take a look at microsoft, i own this stock, it's going to be down again today this morning. the big story though, very clearly, ben and the market. big moves all over, because ben, well, he did this. >> ♪ jump around, jump around what's up? >> having a birthday in the house. >> what the hell is going on

around here? everybody has different investment objectives,

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don't like it. in a minute we'll see how bad the market reaction is to the breakup. it's day two post-ben. how does the economy do if ben takes the stimulus away? >> i think if you see-- the key reaction is obviously going to be we're seeing in the equities and the stock market and the index and trading. the markets are going to drop. is that going to make business owners back away? that's something i'm worried about. if the stock market takes a big hit, and makes the business owners not want to keep doing what they're doing and it's moving the economy, moving the businesses, that's the concern. >> i see not so much the stock market, but the interest rates going straight up and mortgage rates are going straight up and that could have a negative consequence to the housing market and its recovery. what say you? >> i will agree with you wholeheartedly. and they start to take off a little bit and people are stepping in there and buying houses and the interest rates keep rising, that's going to

make it tough on those guys, too. >> a number of issues could hurt us going forward, something to be concerned with. >> you better turn around and get to trading because the opening bell is ringing and a lot of action. i'm expecting the dow to open with a loss about 120 points, gold about $80 an ounce. okay, it's stopped ringing and they are now trading. look at this. the opening trend obviously to the down side and that's going to pick up momentum as the market opens and all of these stocks start to trade. check the individual dow board. i think we've got that available, i'm not sure whether they'll all open yet, but individually, we've got one that shows the 30 dow stocks all to the red and top left there, hewlett-packard. and it's opened with a gain of 11 cents, at 2554, but everything else is down. i've got disney down a buck. intel down, dupont, caterpillar, j.p. morgan chase, you name it it's down as of this morning and the dow industrials right now, just as

we start to get rolling, down 41 points. one of the biggest moves for gold in a long time happening right now. we're right on-- a moment ago we were right around 1300 and now we're at 1293. and just a couple of weeks ago, it was 1400 bucks, not that long ago, 1800, now 1293. a big drop. and look at this, please, the yield on the 10-year treasury reached 2.40%. yesterday before ben spoke it was 2.20%, almost a quarter point. doesn't sound like much, but in financial terms that's a huge move up for interest rates and down for bond prices. from portland, come on in, keith fitzgerald. ben may take away the remaining stimulus, but the same question i asked from larry levin. >> this is tough. what he's doing is a lot like

monetary drunk driving, he's jerking the wheel back and forth and the market doesn't know what to make of it. there are certain segments of the economy i think are going to do well, comes down to what people need as opposed to what they want and i'm looking at energy in particular here. >> okay, i've got to ask you about a long-term trend that i see reversing for 30 years, you know, keith, we've seen interest rates come down, down, down, down. all the way down to zero. i think ben reversed that trend yesterday. that's what made such a big deal. do you agree with me? >> yes, very much so. you've seen a bull market and since march of 1981 if my memory is correct and i think singlehandedly what it points out. there's a lot more risk. it's not just the return, it's the risksand interest rates are reflection of risk and so, yes, i think he reversed that. >> the quarter point move. virtually in what, 10, 12 hours? >> i can't remember seeing that for a long, long time. can you? >> no, but we have precedence

for this in japan. we've seen this three or four times in the past and i think 8 or 9 weeks here and 3, 4, even 5 move. five standard deviations beyond the norm interest rate volatility. that's very significant, because again, it says to me that bond traders don't know what to make of this. >> there's fallout among the home builders. hold on a second. let me show the home builders with nicole, please, and the mortgage rates go straight up. what does that do. >> goes straight down. >> lennar down 3, 4%, pulte homes down, and you're seeing the home builders coming under pressure. >> and i've still got 28 of the 30 dow stocks moving lower, 28 red tiles, i guess you could call them. only two in green. the two winners on the dow, hewlett-packard and wal-mart. an interesting story that's just breaking as we speak. and it's about china. china's central bank puts out a statement today.

or late yesterday, i think, denying rumors that its big banks are in deep, deep trouble. now, that really gets the anxiety level. the central banks, say, hey, no trouble with the banks, everything is just fine. that gets me worried, keith. >> gets me worried, too, the chinese invented money, people forget that, i think they understand it better than we do in some regards. the aspect, hey, we may have things out of control or losing control, that's a wrinkle that's concerning and i wonder if bernanke has the same problem. >> i don't want to move too far away from what ben did for the market. but i've got to say when china puts out a central bank statement like that, that's a factor in the decline. again, am i overstressing this? i mean, the central banks only reflecting or reacting to some rumors about its banking system and am i going too far with this? >> no, but you know, like every good rumor, right, it happened on tuesday and we were all

wearing clothing. there's an element of truth in there somewhere. the thing that concerns me, obviously, chinese is the world's growth engine when it comes to manufacturing and import, export relationships. if they're in trouble and a cash squeeze, it's going to impact the entire global manufacturing chain and that's the repercussion, i think, that's unsettling to me as well e got it. keith fitzgerald, a busy day, to the big board. the dow jones industrial average has dropped another 140 points. remember, please, we were down 206 yesterday. down 144 in the first, what was it, now, five minutes worth of business and that puts the dow-- call it a 14 handle. that means it's at the 14,000 level not 15 and now down 154. nicole, what's this about the new york times, and having any impact offering three free articles today to nonsubscribers? any news there. >> we're seeing it down about

2%. year to date the new york times does well, and, yeah, it's to the down side now. stuart: tell me about disney, that's second biggest loser on the dow. what's with disney? why? >> we're seeing it to the down side. goldman sachs had the conviction buy list. stuart: we've got it. and i want to summarize where the markets are, to the big board, please. six minutes worth of business, the dow is down 154 points. the price of gold is down now $81 an ounce. and interest rates have gone straight up. the yield on the 10-year treasury, 2.4%, up 1/4 poeint overnight. and that's where the market stands as we open for business the day after ben makes his big speech. all right, everybody, get ready, there is a fight coming on "varney & company." two libertarian voices, judge napitano and john stossel. they disagree over the nsa

snooping on everyday americans. here is the question. how much freedom are they willing to sacrifice for security? it's a shootout coming up at 10:00. all right, to the big board now. we're still falling, we're now down 165 points as we speak. that puts the dow at 14,946. again, this is all after ben bernanke, i hate to say the clo cloak-- t the expression opened his mouth. and we might quit printing money by the middle of next year. isn't that taking away the punch bowl? yes, sir, it is. the dow jones industrial down 168. and gold is at 1292. time is money, everybody, 30 seconds of what else we've got coming up for you. three big names. angy of angie's list.

what's to stop you from writing a bad bogus review of a competitor on the silent. and we'll talk with senator david vitter. and he's trying to stop the free obama cell phone program. has congress ended any handout program ever? we'll ask the senator. and fresh off his final surgery of his career, dr. ben carson joins us as well. and he is the common sense voice that america's looking for and he is going to be right here today. we are going to keep with the markets. oil is way down, and i told you gold is down, stock is down, oil is down two bucks and 2.66 all the way back to 95. it's an epidemic in this country and now a major medical group says it's officially a disease, obesity. dr. segal on that next. and there's also the shock and surprising death of sopranos

actor james gandolfini. 51 years old. heart attack while on vacation in italy. more varney after this. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scorade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade ke everybody. i trade like me. i'm with scottrade.

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how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot 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. ♪

>> trying to remember the times that were good? >> yes. >> you know, that's an actor, all right? james gandolfini, most notably

known for his role as tony soprano. the famous last scene was filmed at a diner in new jersey and we have one of the owners of the diner with us. chris, you met him, obviously. and what kind of guy was he like in real life? >> he was a very nice gentleman, i have to say that to start off. he was, you know, he was a great actor, you know, when he was in character, he -- you could see he was tony soprann. when the cameras stopped rolling, he would stand outside the building with us and he'd light up a big cigar and talk and take pictures and sign autographs for people. and very down to earth gentleman. >> now, you saw him do several takes of various scenes. so, you know how good an actor he was. he was magnificent, wasn't he? >> yeah, i believe he was. i've seen him in other things and thought he was great, but

as far as i'm concerned he'll always be tony soprano. >> do you expect a lot of business, i hate to be crass and financial, i'm sure you'll get a lot of business. >> i am sure we are, too. you know, it's not -- it's not something that i wanted because i think it's a great loss and i would rather not have all of this going on right now, but you know, it is what it is, and i have to deal with that. stuart: chris, we appreciate you coming on board with us today because we want to know what kind of guy was he and you told us. chris carey. thank you. i want to bring in dr. mark siegel. james gandolfini, only 51 years old. he is that's young. >> and maybe that should be a wakeup call. physical inactivity caused 35% of deaths from heart disease and only 22% of americans exercise regularly. what about weight? we have to all lose weight as a nation, we have to become more

active. more than that we don't know. cardiac risk factors you've got to go to your doctor, high blood pressure, diabetes. we see him smoking cigars all the time. cigar smoking you actually inhale. i don't know how much he did. but you have to go to the doctor and see the risk factors. take aspirin and drugs to lower your cholesterol. stuart: hold on a second. i'm going to give you a news item. american medical association now officially labels obesity as a disease. okay? so if you're overweight, it's not your fault, you're sick. go see the doctor. if you drink too much, it's not your fault, you're an alcoholic, that's a disease. that judgment, that obesity is a disease takes away the moral factor. you're not responsible for yourself. no, it's out of your hands. it's a disease. i mean, i don't see this, doctor. do you? >> stuart, you would think after what i just said about gandolfini that i disagree with you, i actually don't.

a small part of obesity is due to genetics, things i need to deal with medically and outcomes are severe, diabetes, blood pressure, cancer in some cases, heart disease. if i nip obesity in the buddy avoid problems later on. having said that, obesity is not a disease. it's a gimmick by the american medical association, and insurers will probably pick up. and a lot of stuff covered, nutri systems and diets-- >> and flat-out with it, it's not a disease. >> where is the ideology, the infectious agent, the cause of it. it can be called a condition or syndrome. a disease implies that something is causing it that we can prevent it. that said, what is that thing? inactivity? if we'll call everything related to inactivity, tv

watching. >> here comes obama care. >> i want to raise the awareness of obesity, an i don't think that calling it-- >> are you saying to anybody who is overweight or obese, get out there and exercise. you are being irresponsible about yourself. >> a vast majority of people. yes. i can't say that across the board because some people can't exercise. plenty of people that are disabled. for people that can exercise, you can do a lot. two-thirds of americans are overweight and one third are obese and many are bringing it on themselves. should we pay for it. >> fair point, doctor, fair point. i wanted to get it off my chest. and dr. mark siegel. thank you very much indeed. to the big board, where are we now? we were down 168 at one stage and how we're down, dare i say, 142? and we've got your gold report. if you bought gold coins for

the kids probably not worth what they are you paid for them 1303, ado detect a little comeback. >> and the president's agenda dead in the water and failing to get america back to prosperity and once bernanke stops printing, it may get worse. my take on it and solutions after this.

♪ angie, angie ♪ when will those clouds all disappear♪ >> that song is in honor of the co-founder of angie's list. she'll be joining us in the next hour. and big news on the housing market. the existing homes sold in the latest month that number coming at you in a couple of minutes and of could,dr. ben carson, he's going to be performing his last surgery right about now. when he's done, he joins us. how does he plan to be the so-called voice of reason he wants to be? here is my take on ben bernanke. very bad news for president obama yesterday. think about it, what will stimulate this economy now? if ben follows through on his

plan to retire the printing presses it's hard to see where an economic shot in the arm is going to come from? the president is stuck. he's got an economic policy that's failed to return america to prosperity and saddled the country with massive debt and we're down 2 million jobs where we were before the recession. and if ben quits printing, what will this president do? wait, it gets worse. obama care, four months away and the government investigation, i repeat, an obama government investigation shows it will be a train wreck. chaos in the medical industry and ben quits printing? oh, yes, this president is stuck. may i offer some advice? there are two things president obama could do. number one, get on board the energy revolution, build the pipeline from canada, frack for gas, build refineries, get the epa off our backs. he's not going to do it, but can you imagine the boom that

would start? number two, tax reform, by that, i mean lower rates for companies with individuals and fewer deductions, again, i know it's not going to happen. this president demands higher tax rates and more redistribution, but this is a golden opportunity. it is the perfect time to replace ben's stimulus with private enterprise stimulus, what is this president actually going to do? i think he will quickly announce that janet yellen will be the next fed chair and hope that she gets back to printing money. if he won't change course on policy, what else has he got? friday night, buddy.

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with creditcards.com, it easy toearch hundreds of cards and apply online. creditcards.com. >> thursday, june 20th, here comes the second hour. ready for this? dr. ben carson, his political star rising, just finishing the last surgery ever, and he will be here. the libertarians go after each other. judge napolitano and stossel shoot it out. we have the founders of angie's list. got into hair vartd, turned down, started a business, and he's here as well. all of that and 30-year trend reverses. here we go. ♪ >> awaiting big numbers in 20 seconds. the big board, we thought the

target was coming back a little, but it's back down, off 160 points. most markets sharply lower today, gold especially. that's dropped below the 1300 per ounce level. we've got a 12 handle, and freddy mack has just come out with the latest mortgage rates at 3.9%. okay, that's last week, okay? that does not reflect the likely sharp increase in mortgage rates we expect to be coming. existing home sales up 4.2%, okay? up to a level of 5.1 million existing homes sold per year, okay. so we've get a gain in existing home sales, now over 5 million sold per yearment i want to bring in our open real estate person. okay. first of all, forget the existing homes numbers we just received.

talk to me about mortgage rates because they are going to go up. i mean, i know they are going to did up. i predict a rush of people who will right now get out and try to lock in a 4%, 30-year fixed mortgage rate before it goes away, what do you think? >> i agree with you, but realize even though rates go up because you are absolutely correct, the amount you pay in a home and wwat you afford doesn't change that much until we get up into the sixes and sevens. i looked it up. if you buy a $26 # -- $260,000 home at 3.5%, you can afford a 250,000 home at 4%. it doesn't change much. i don't think it's going to affect the market that much until we see upper fives and sixes. >> what do you think of the 5.1 million homes existing homes sold a year, the annualized rate of selling?

we're back above 5 million, seems reasonably good to me. that's progress, isn't it? >> it's great news. we want to be over the the 5 million number of, so to see we're over that is good news because we were just a hair under last month. we had a gain this month in home sales, and that's great news for housing. it continues to mean we're stabilizing. >> back to the mortgage issue. you say it doesn't matter if there's a rise in mortgage rates until the 5% level. all right, take me to the person who is trying to get a mortgage right now. they picked out the home they want. they've been -- they've been okayed by the bank. can they go to the bank and say, lock me in right now, or is it up to the bank to say, oh, hold on a second, hold on? >> no, no. they should lock right now because rates will go up. take advantage of the low rates even though there's not huge upswings. lock in as low as you can, get the money for as low as you can.

go lock. where i think we're beginning to see a difference in what people are doing is the refi booms. if you have not done it, you won't look at it now because we're in the 4% rate. >> i want to show everybody the the yield op the 10-year treasury. i do not wish to get technical, but look, that's up about a quarter percent taj point, a quarter point from where it was before ben bernanke started the talk. that implies to me that mortgage rates are going straight up very, very quickly, you're nodding, am i right? >> i don't think very quickly. i think we're going to see fours through 2013, and then see them creep up, but they have to go to up, period, end of subject. >> still making money in arizona? >> thanks to you, always thanks to you. >> stop it. i got angie's list ady sitting next to me so watch out.

thanks. >> i love angie's list. >> well all do. thank you very much for joining us. see you shortly. >> thank you. >> check the big boards, more economic news that broke, what, three and a half minutes ago, at the top of the hour. charles, what do we have on this new breaking story? >> we've got a few things that you talked existing homes better than expected, but the fed, highest number since april of 2011, that at 12.53, looking for a minus number on that. that's interesting. >> hold on, hold on. since you reported what is positive economic news just a second ago, since released, the dow has fallen some more. now it's down 175 points. you know what that means? that means the better the economic news, the sooner ben quits printing money; right? >> right. >> we're in line. you and i are like this. >> no doubt about it. the sooner he stops printing money -- but here's the thing,

whether ben was going to stop printing money because they feel like the policies are not working, throwing in the towel, or is the baton ready to be passed to the u.s. economy? very few people think it is despite glimmers of home. it is weak. >> i want to bring up another issue, and you say if it's important for america's target. late yesterday and wednesday, china's central bank has a statement saying, look, everything's okay. our banks are not in trouble. they are not close to default. now, when a central bank, the world's second largest economy says, don't worry, boys, everything is fine, i get nervous. that's a negative today. >> we like china when they didn't try to share information with us; right? no doubt about it. the global economy, particularly china, is the straw that surged the drink for the last four or five years. with them leading the way with respect to growth, we're in trouble. >> thank you very much. nicole, talking about interest ratings straight up, existing

home sales good, but the impact on home builders, they got to be done a lot. >> they are a really volty group too, but they are reacting negatively. you see kb homes down 5 #%, and you know that people get in and out of the stocks, but they have been hot over the last year or so, over the last 52 weeks, look, for example, kb homes against the s&p 500 over 52 weeks. if someone were to buy a home builder, kb homes, up 152%, and now that little line at the bottom just moving higher, that's the s&p 500. the other one is kb home, indication of how well the home builders have done. most recently, they pulled back some. >> hot recently, terrible today. all right, nicole, thank you very much indeed. 36 minutes into day two after ben bernanke, the dow jones average is now down about 180 points.

the price of gold is way down. we are off about $80 an ounce putting us at the 1300 per ounce level, 1293 to be precise. interest rates have gone straight up, the yield on the treasury is the 2.14%. that's the market wrap as we speak. it's 12 hours -- no, 16 hours after ben opened yesterday. >> thanks, ben. >> thanks, ben. it is official, obamacare is a train wreck. a new report from the government accountability office, that's the obama administration, it says so. it says, states are not ready to implement the law, that so far they are behind they won't make the deadline in four months, and health and human services department stone walled congress for three years when asked about the progress. it is a train wreck, the administration said so. >> golly, four months for it to go in, and nobody's ready. we heard this stuff particularly from local governments, and the

federal government, for the government accountability office saying 16 states run their open exchanges, and there's a 16-52 key activities up done. that really means they are mind from 17-75%. you can extrapolate that to mean some of the guys may not be ready a year after they are supposed to be ready, and, certainly, that bodes poorly, and then there's the idea that the federal government will go into these states that are not going to set up exchanges and set up a de facto government-run exchanges in 34 states. those are not ready either. anyonements to jump on saying, i'm going to see a doctor in four months, you may not. >> stop smiling. it's a train wreck. >> it is. >> not good news for anybody. >> it's a huge program, and it's like a whole lot of these initiatives. i don't care if you think it was well-meaninged or not. the idea that the time lines on this are so draconian, they were doomed for failure. >> they are not going to make it. >> they're not. >> they will not make it on

time. by the way, angie hicks, the co-founder of angie's list is here, sitting right next to me here in new york city. welcome to the program. >> thank you. >> may i ask you a curve from >> sure. >> what do you think of obamacare, help or hurt you? >> coming to understand exactly how they handle health care issues, you have to be in front of it, and i also think consumers need to make changes. i think that no matter what policies come out, it's important for consumers to start treating health care like their customers of health care. they need to be in the driver's seat. >> can an jees' list help people who figure out what's my health care? >> we are. we are. three years ago, we started collecting health care reviews out of consumer demand. help us find the other services, why not pediatricians and eye doctors and the like? we went into that area, but i think consumers still sometimes think that they don't think about buying health care like they buy every other service

they buy, and they have to for us to get transparency about pricing and to really get things in line. >> so, angie hicks says obamacare is a growth opportunity for app gee's list? you are, aren't you? that's exactly what you are saying. >> i was saying consumers need to take control of their own health care. >> won't it be interesting that a lot of people come to your site, saying this doctor'' phenomenal, but they may lose the doctor. that's the tragic part of this. >> right. you know, making sure that we have app environment that's, you know, the doctors want to participate in, the consumers can really go to the best doctors around. >> i have to ask a question i wanted to ask for a long, long time. if i'm a plumber, and i join angie's list, what's to stop me from posting a fake report about another plumber? >> sure, sure, absolutely. >> this guy's terrible. what's to stop me? >> sure. the companies are listed on angie's list, they don't join. we have a lot of processes in

place to keep them doing what you are talking about. first, you don't allow anonymous reviews. there's accountability in the system. because of that, we get a lot of information about the users so we can run all kinds of algorithms, and my favorite department in the entire company is a think of folks who i think want to be private investigators. any review flagged in the system, than read and research. they know who all your cows pes are and everything. >> works with the irs, but i don't know. [laughter] >> can you expand overseas? >> yes, we can. i mean, we could. we have a couple markets open in canada right now. >> okay. 13 # 00 employees? >> right. >> i see you marketing all over. you are the chief marketing officer. >> yeah. >> and the founder. >> yeah. >> you're in ads all the time. >> sure. we're growing the member base. we are doing that, the primary driver for the spend is the cable television advertising. >> is it growing? >> yes, it is.

it is. we just crossed over 2 million households this year. >> and they pay per month? >> pay per month or per year. there's annual membership. >> app gee, we like that here. angie hicks, terrific, founder and chief marketing officer of angie's list. thank you so much, do appreciate. >> thank youings thanks. >> cost taxpayers more than $2 billion a year, free cell phones for people, the obama phone program. up next, a senator who is trying to stop it. here's a question. can government really take away a hand out that's been established? even after abuse like this is exposed. look at this for a second. >> this is my phone. >> we have to bring it back if you are not low that you signed up with, then bring it back. other than that. >> okay, so i can sell it and stuff? >> whatever you want to do with it. >> get money for heroin.

>> hey, i don't judge. is man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thsand dollars. congratulations you arene our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or t millionth. if your bank doesn't think you're special anymore, you need an ally. your money needs an ally.

>> less than 24 hours after fed chairman ben bernanke speaks, signals may be the end of printing markets, and the markets flat out plummeted. gold down huge. $80 lower, below 1300. the dow industrials continuing the downward spiral, 200 appointments yesterday, down 187 more points right now. i do have good news. we are watching gamestop this morning. microsoft reversed the policy on pre-owned games on the newest xbox consul.

gamesphop up two bucks, 5%, about the only winner. beating the bruins in the finals, and the blackhawks evened the series at two games a piece. next, who is trying to end the program to give 2 million free cell phones to poor people. can you ever end any handout? can you? i don't think so.

>> now this. rhode island facing a possible downgrade on its dead.

why? because former red sox pitcher got a hundred million loan guarantee from rhode island, and that company is bankrupt, okay? rhode island's on the hook for that. could get a downgrade because of it. i have to show you the dow industrials, down 200 points and falling. down 220, 14891. okay. now, please, look at this. >> this is my phone? bring it back or anything? >> only way you got to bring it back if you are not on what you signed up with, them bring it back, but other than that. >> okay, i can sell it and stuff? >> whatever you want to do with it. >> get money for heroin. >> hey, i don't judge. >> hey, i don't judge. that was from a hidden camera seeing app employee handing out a free government phone for somebody who wanted to sell it

for drugs. sir, i know you want to end this program or severely curtail it. we got that. we talked about this before. i got to put it to you, sir. there's no way on god's green earth this government ever reverses a hand out policy. you cannot end this handout, can you? >> well, we're going to, james, particularly when the word like the video you just showed is widely viewed by the american people. obviously, once that reality gets out into the real world into the heartland of america, people are going to take notice, so we're fighting to basically prove you wrong. >> okay. i hope you do it. sir, i hope you do it. >> yeah, i know you do. >> tell me the mechanisms the steps taken to do this? >> to get the word out, to show the video you showed, to get the facts out, the fact that the fcc, itself, that runs the

program -- >> that doesn't translate to votes. >> it does when the american people take notice and call members and the calls pour in, and that's what begun to happen. we have to pick it up more, but that's begun to happen. >> charles? >> sir, i wish i could agree, but we saw brazil up in flames because they were going to rise buss prices by 10 cents. i meant with someone with this free phone, and he had a missed sense of pride in this. what's the argument that poor people for taking away their cell phones, and how does that translate into votes? >> first of all, there's a heck of a lot more people fayeing for this than receiving it, even in this current entitlement society, so those are the folks we're talking to saying two things, number one, this is an entitlement mentality gone mad on steroids. these folks get a cash payment, other things already. we don't need to independently provide them everything under the sun including a cell phone. secondly, as that video showed, there's just enormous fraud and

abuse in the program, and the fcc, itself, which runs the program is documented that. >> okay. well, we're going to follow the progress, senator. cheering you on, believe me. senator, thank you. >> thank you, james. >> thank you. >> stewart, but that's okay. i got to show you the big board, but i got to bring this to vow, you know, nobody likes it, down 200 points, 200 yesterday, 214 now, and two leading and inflew enissue leading libertarians. you'd think they would agree on right to privacy, but that's the case. here's the question, how much freedom are they willing to sacrifice for security? they'll duke it out next. in today's markets, a lot can happen in a second. with fidelity's guaraned one-second trade execution, we route youorder to up to 75 market centers to look for the best possible price --

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>> please, check that market. you won't like it, but we have to check it. down 190 now,149 # on the dow, oil and gold down too. spying, shall we get into that and the nsa? there's an argument, big one, going on between libertarians -- i should say among libertarians, on one side, the judge, app drew napolitano. on the other hand, you have john stossel who thinks some snooping is okay to keep america safe. john, i paraphrased your

position, but i'll start with you. fell me where you stand. what infringement on privacy do you lay low in the name of security, go. >> i can't name it precisely, but if we have an nsa, aassume they are spying and people are trying to kill us. i assume some is okay in this data mining for some reasons just doesn't threaten me much. andrew's right about everything. >> i don't think this is john, but an imposter because the john that i admired as an undergraduate at princeton, and i know he looks younger, but he is older. the john i admired as a lawyer and as a journalist would have stood up for the right to be left alone, the right to have the government prying eyes away from us. the constitution stands for that right, and the institution says that government wants to pry, it has to present specific evidence about the target on whom it wants to pry to a judge, and the judge issues a search warrant, specifically describing, paraphrasing the statute, the

amendment, specifically describing the information to be seized. >> john, go. >> this may be true. all i can say is i'm not that worked up about it. people want to kill me. my facebook page, there just doesn't rise to the same level. >> if i government can violate the most profound protections in the constitution because it doesn't rub you the wrong way, it's -- >> well, -- >> there's no right to what the government violates. >> i have to pick my battles. libertarians call me a traitor and disgusting, but we can't get worked up. >> will you concede there's a violation of the conssitution whether it rubs you the wrong way, whether you get worked up over it or not? >> no, because some libertarians say this is not up constitutional, but i leave that legal specialization to you, and you are right about everything. you are probably right about this. >> i'm going to quit while i'm ahead.

>> john's right here. >> what? >> it's your interpretation at issue here. >> my effort is to interpose the constitution on what the government is doing, not my personal feelings, but the constitution. the starn is there standard is in black and white. the reason we have the amendment is so our government couldn't do it, forgive me, for what the british government did to us when they are dragnets and search warrants that let them e. >> am i right in saying, john, there is a law in the books that says if the government gets a warrant through the fisa court, whatever it's called, the secret court, they can go out and read my e-mail. >> yes, you are correct, but that's profoundly unconstitutional. >> you're reading of the constitution, this was passed, signed, sealed and deliver of the congress of the ice. >> what if they delivered a statute that said they can't speak freely. >> that's extreme. john? >> whatever the law says, say they read my e-mails, fox can

read my e-mails. i figure there's a pimp kid out there that all our privacy -- all our privacy is blown, facebook, google, knows so much about me, much more than i assume the nsa knows. i don't care. >> you have the right not to use your fox e-mail. you have the right not to use facebook. >> true. >> no ability to escape the government when it spies on everyone in the country. >> facebook can't jail or kill me, and government can. >> correct, correct. we found a point to agree. you are better than you think you are. >> we are going to face nuclear terrorism soon, or at some point in the future. i don't want a bomb, a nuke, to go off in new york harbor. i do not want that. i will move help and earth to make sure that this government knows about that plot beforehand and stops it. >> will you destroy freedom in the movement of help and earth? >> that's the extreme. >> you said you'd move heaven

and earth, and i'm asking about freedom, and i'm extreme? >> i think john and i would be prepared to give up a little freedom to save a million people from a nuke in new york harbor. >> there's no such thing as a little freedom, but we're too scared of terrorism. there's far bigger risks. >> the real john is back. you have a greater risk of falling and being killed in your bathtub or shot by a cob on the street than killed by a forest. >> at the moment. >> your problem is you take everything to the extreme view, taxization is theft, can't allow taxation, the federal rereceiver is a con conspiracy theory. >> just let him do it. >> i'm right, i'm right. >> hey, i brushed stossel around. >> you did bring him around. >> i was already afraid of the government. >> stossel, to you.

>> the show is on tonight, and it's wonderful, and andrew that is right about almost everything. >> i wanted more fire here and see you bang the table. i didn't get it. >> i don't like the guys, but i'm not worked out. >> johnny, you were my idol in 1968, and you still are. >> he's still a kid. >> i idolized him. >> you were a student radical? >> no. >> no, but i was liberal. >> he was liberal. >> it was princeton, we all were. >> the hair was down to here. >> was it? was it? >> yes. [laughter] >> well, now, we're getting into dangerous territory. gentlemen, thank you very much indeed. that was reasonably civilized. dow's down 228 points. we're on top of that one for you. next, he's a common sense kind of guy. his name is dr. ben carson. he's causing quite a stir in the

political arena. he's next. he's the first person we thought of when someone said this -- >> you need to start doing assembling a list of people who can be the next generation of leaders opposed to saying we're three and a half years from the next election, assemble a list of five people and pick the winner. >> add one name to the list, and that would be dr. ben carson. i turned 65 last week.

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read and consider it carefully before investing. risk includes possible loss of principal. >> wrapping up the markets because it's going south, down 245. there's positive news at the top of the hour that implied that maybe ben would quit printing as he threatened to do yesterday, so down went the market some more. gold's down, stock's down, oil down. let's go to nicole because there's a stock that's up, actually, hitting a high, gamestop. tell me briefly why it's up? >> well, that's because now when we talk about the name microsoft, xbox 1, the game consul, you can buy, use, resell, use the old games, all of that is done at game stop, an old game, get a new game. questions whether or not you could do that, and now as a result the stock is moving higher. >> thanks very much for searching through it, nicole, because we're desperate. we are scramming for a winner.

you found it. thank you very much. can make money., let's see if we here's charles payne following up on a recommendation he gave recently, and the recommendation was forrite aid. >> only way to make money is to put them on death watch. >> stop it, now. >> they have been a jogger naught, up 300%, beginning of this year, up, but they have good numbers, third consecutive quarter of profits. last fiscal year was the last time a year of profits, and since seven, a lot of people in the stock, i have subscribers in it. the guidance is wishy-washy, but there's a bunch of reasons to be wishy washy. i love the fact margins are expanding, and i think it's relatively cheap here, but down today on gyps, not necessarily -- >> still like it? >> loutly. >> a day trader stock up or under three. a lot of people buy a thousands shares.

number three drugstore company in the country. >> recovering from a scandal four or five years ago. charles, thank you very much indeed. now, joining us fresh off what i believe is his last surgery as one of the great brain surgeons of the world, here he is, dr. ben carson. am i right you just walked out of the operator theater for the last time, did you? >> that's correct. i just finished the last case, took a lot of pictures, said fair wells, and ready to move on. >> why? you're one of the greatest brain surgeons in the world. why walk away? >> it's been wonderful, 15,000 had 17,000 operations being able to be involved in people's lives and give it back to them in a better way, but there are other things that are extremely important too, and if we don't have the right environment, you know, not only for medicine, but

all kinds of growth in the nation, a sick environment doesn't help the organism. >> well said, sir. i heard you on hannity's radio show days ago, and it seemed to me as a liner you were staking out territory as a common sense guy, not a republican or democrat, just a guy who wants policies that work. >> yes. >> i think, is that your role? is that your position going forward? >> well, you know, i want people to understand that common sense doesn't fall on one side of the political spectrum or the other, but should resinate with everybody, and, you know, we have to get back to the point where we think about what's right and wrong, not what's political expend yept. it irritates when i see people beginning with the democrats 100% of the time or republicans 100% of the time because they are not using their god given

intelligence to think for themselves. we have to be able to think. we have to be able to disagree. we have to be able to discuss reasons why we disagree. we have to understand what our goals because that way we can then talk about the agreements and come up with solutions. >> do you see a role for yourself in politics, taking that position? you're retired from the brain surgery business, if i can put it like that, is that your role in that the future, common sense political guy? >> i'll certainly continue to be out there. you know, i was already a very popular speaker before the national prayer breakfast, and it mushroomed after that, and then -- yes? >> oh, no, i was not interrupting you. i remember you. i first met you and your wife after you had done a speech, and i remember you really wowing the crowd describing the mental process and the muscles used to pick something up with your hand. i remember that.

that was a dine mate speech. >> oh, absolutely. >> go ahead, i interrupted, and sorry to do that, but i want to know what are you going to do politically in the future? >> well, you know, i'm going to spend a lot of time talking to political groups and notary public political groups about understanding that this country is for the people it's for, of, and by the people, not the government, encourage people to be brave and be able to stand up for what they believe in. you know, freedom just doesn't come and rest in your lap. %-constantly.ursue it, you know, i'm going to be working on health care reform. there's a number of senators and congressmen interested in this and a number of health care professionals. we're going to be meeting. we're going to be looking at ways to improve on the system. we have to look at other systems. you know, the people who put our government together looked at what every else had done, and they pulled the best parts from

them. there are some very good things out there that we can learn from, and we've had to jetson the notion that we know best for everybody, and, certainly, that the government knows best for everybody. >> sir, if you want a forum for good ideas, you got it right here, and we do hope that in retirement, you'll come back to join us frequently. >> i will, thank you. >> thank you. all right. forget -- i can't believe it, the first sentence here, forget going to college. college for some simply isn't worth it, even if you can go to harvard. yeah, that's right. a kid, in a moment, i hate to cull him "a kid", but a young man turned down an ivy league education to strike out on his own. he's with us in just a moment. ♪

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three bucks almost at 95. gold is down 77 bucks an ounce at 1296. look at facebook, reportedly releasing a video service in a media event today. tech crunch reports the new service is similar to twitters' vine service. facebook is down or flat on the news. the housing market, the latest read op the 30-year mortgage, down a little, but you can expect that rate to go up. we have a very strong report on existing home sales, up 4%, 5 # million sold a year. [ male announcer ] the mercedes-benz

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but hurry. offers end soon. >> about the low of the day, down 220 points as we speak, 206 down yesterday. there's a story in the background here. tell me what you think. the china central bank put out a statement late last night that said don't worry, everything's fine with our big banks. there was a nasty piece of speculation that some of the banks would default. along comes the central bank saying, don't, everything is fine here. charles, i think that's a fact of the day. i know it's china, not ben, i understand that. i think it's the factor, do you? >> oh, absolutely. the difference, this is what i argue, one of the differences for american corporations is the growth overseas, particularly, china leading the way, ann the tmi number at 48.33, and anything under 50 is contraction. >> the manufacturing sector is contracting. >> that's right. that's lessening, still, for,

you know, coal, lessening for the big hard things we were selling to them and making a lot of money on, and, also, last year was the slowest growth in 13 years so it's been a jogger naught. to a certain drake, they wanted to slow that down, they didn't want to be a locomotive so out of control that eventually it flies off the rails, but you wonder if they tamp down too much, it would be a preview of what -- well, it's not a run away economy, but people are worrieded about china, and they are worrieded about the sort of the way they are handling it or not handling it. it's interesting they are talking that la -- lar sai fair attitude. >> the banks are fine, you know, i could worry. >> write a big checks to the bank, but exactly. >> yeah, on this show, we talk about whether or not college is worth it. our next guest says, no. not for him. he turned own a place in harvard

to start a company, they too dropped out of mitt and princeton to focus on the new business. welcome to the program, good to have you with us today. you got in harvard and turned them down. why did you do that? >> yeah, that's correct. so i did that to start a company calledded flight car, allowing vehicle owners parking at the operate to get free airport parking representing out the cars to other travelers 3 p >> that's the business you wanted to start. with you in the background here, are you saying harvard was not worth it in >> well, i mean, i think, you know, this was a great opportunity, and i think there's a lot of things that you learn in starting a company like this that you're never going to learn in school or college that you have to figure out, and that was a great opportunity, and i decided to jump op board and go with it. >> a lot frequent on this

program said, you know, for a lot of people, college is not worth it because you spend a lot of money, you get great debt. would you join us and say, yeah, for a lot of people, college doesn't make financial sense at the moment? i'm not trying to put words in your mouth, but where are you coming from on this? go ahead. >> yeah, no, i think you're definitely right. i mean, begin the economy, college can be a financial burden. i think a lot of things in life and starting a company, you have to decide, like, look, i have an idea. this is what i want to do, we're going to figure it out, learn, and do what i have to do to get this to work, but i'll make it work. that is thee most important thing, more than college. >> real fast, the commercial, flight car, so you go to airport parking lots, and you tell the owners of cars that have been left there for a long time, hey, we'll rent out the car, pay you money, and that's your business? >> yep, yep, that's our business.

>> ow are you doing? >> it's going great. we've just processed over a thousand 500 rentals in the san fransisco, and we are now live at the boston logan airport. >> what kind of a piece do you take out of the renne dale? >> we charge the full renne dale and give the owner of the vehicle back between ten dollars per rental and ten dollars per rental day depending on the car they have. >> how much do you get from this? >> about 100-150 bucks, about $30 at the end of the dayy >> not bad. nice business model. that's what you do rather than go to harvard. thank you very much indeed with flight car, we wish you the best of luck, young man, we do. >> thank you, thank you for having me. >> okay, sir. how's this for irony? governments cut worker hours because of obamacare. that's next.

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>> coming up an seven eastern, eric holder clarifies testimony that the house judiciary committee is invest gaiting for perjury. committee member congressman forbes tells us whether the attorney general's response is adequate tonight at seven eastern. ♪ >> i've got an obama care store you. local governments are quietly cutting worker hours to avoid obama care costs. remember all the outrage when some restaurant companies said they were cutting back wwrker hours? any outrage here when government does it? >> absolutely not. the bottom line is according to obamacare, 30 hours is full-time employment meaning people get a 25% haircut. when this came out, there was a line in there, a bunch of evil, blanking, blank, blank, who treat the workers like blank. i mean, it's like the left went crazy when a corporation said we

have to do this, but they were in the eye of the storm. they mentioned it was an fcc filing, but this is the reality of life, by the way,. it's happening with businesses, local governments, and people work 40 hours now, and they are lucky enough to have a job, it's 29 hours. absolute disaster. >> charts, thank you very much. have you heard of james bond? [laughter] well, if you have not -- >> is that your evil twin in >> just watch the highlight reel next.

stuart: this is a very special highlight reel. you cannot and this handout. >> well, we are going to. stuart: i prefer jim bo. [ laughter ]

stuart: tell me, how will this market close? charles: it is hard for me to imagine it coming back. stuart: if it were friday, i would be really nervous. charles: we found a little support here. if this breaks, look for another 100 points in the last hour of trading. stuart: down when the dow. it was up around 150. we are holding with a- 100. we are out of time. thank you very much, indeed. connell, it is yours.

connell: thank you. could rising interest rates really be the biggest threat to our financial system? on immigration today, the "wall street journal" dan manager says it would be america's berlin wall. after james gandolfini has died. we have all of that and more coming up on markets now. dagen: the big game tonight. who do you got? connell: i will probably take the heat. it will be great, though. game seven is always fun. dagen: