or duty to punish the otherwise government should leave us alone to do anytng that is peace that is ou speaking of grants - >> very good. glad that's over. stocks shocked. starting on on wednesday as the fed chief hinted t bank may take its foot off the stimulus pedal. and then reports hit that may happen sooner rather than later. we saw a bit of a recovery on friday, but nerves are frayed. should you be woring about your money? the bulls and bear are here to help. hi, everyo. let's t's gets right to it welcome to everybody. okay john, a wildweek. what does it mean to our you viewers? >> what i think this means to our viewers is they should be

very concerned going into monday morning. we've had will an ermous run up over the last few month, even the last year. and people have a lot of profits on the table. what we're seeing right now is a lot of the artificial stimulation the market has gotten by ben bernanke's policies, it's starti to come to and our fund feels like the stock marke right now has a correction in mind somewhere in the 5% to 7%range over the next quarter. i could look for somewhere in the course of this week about 1,000 points to the down side. was a retail investor, had some profits, i wou go into monday morning thinking let me take some profits off the table, if the bubble starts to burst, there will be great oprtunities down the line. but the evailing opinion is always sell it in may and go away. we're in june. if you haven't sold yet, i'd be selling monday. >> 1,000 points. gary, are you buyi or selling? >> well, first of all, john just scared the heck out of me so i don't think -- well, okay.

i age with him i part of it. do i think there is more down side. i don't think it's going to be another 1,000 points down. at would take us below dow 14,000. ink that's probably a pretty safe stopping ground. in direct answer to your late thursday. i start buying i start buying a littl on friday. if stocks drop a little bit more, i will buy a little bit more. just to on put it in perspective, i'm probably about 70% invested. so i'd actuallylike to see a little bit more down side in order to buy more. ovall am i worried, as pessimistic as ohn, no, ihink this is a temporary pull ba d obably more a good buyingng opportunity than anything else. >> john, the market has gone very far very fast. isn't it time for the bulls to take a breather? i mean, the dow is up 13% so far this year. >> sure. look wt happened in japan. you had them almost strght up

and they have cme significantly off their highs. this marketas about 12,500 a year ago. just short of 15,000 right now. so i think it's normal that anytime you have any perception of bad new, people start taking money off the ble. but i agree with ry that this is a buying opportunity if we go much lower here because bernanke said that he won't rae rates until employment gets down to 6.5% and once you start seing the economy get better, more people going in the workforce, it will take a while before the raise rates. >> but this has been a bond buying binge. if it stops, if the fed pulls back, isn't that a sign that the economy is improving and isn't that good for the market? >> brenda, i think you're absolutely right and it's a return that we can rely on. the fundamentals of t economy, you have the jobless rate being reduce you have housing up and

you have cporate profi an all time gh. so think it was an indication bernanke that we are seeing these indicators and these good focasts and that plese look at this because we may -- if we hit 7% unemployment, we may art ultimate putting on the brakes as it relates to easy money, if you will. john, is this a bubble about to burst? are we about to see what happens to the housing market? >> no i think what happened is a bubble was starting to form because of the low rates. the market was getting ahead of the real economy which is still a little lackluster in a lot of areas especially employment. and what the federal government was to do is keep encouraging growth in the economy, yettop an asset bubble forming like w had in real estatee in the 200s. so maybe keep t heat ono y don't have to pull the stimulus away. you don't want to have to start

raising rates everywhere and cause a recession for no reason. so it's a hard to play game. but that was the strategy. and in general, want to be in an economy where we don't have to have the federaleserve creating mon to buy debt. that's not a natural state of things or healthy in the long run. >> but, john, what do you say to that? >> to david's point, i don't see any of the fundamentals he's referring to in the mark 34r5i place. i see stagnation in gdp, i see continued deterioration in u-6, i see capacity utilization, deremploymented, part-time employment up. so i don't see any of those good fundamentals. and what i do see is ben bernke's policies arelike rnie maoff and alan stanford on steroids. they have been artificially stimulating the marketplace because when people get fewer return on their bank account, they're forced to take sme risk and get return in the marketplac so he's force people into the markets and that bubble is

existing, that bubble is getting bigger. and i think i know everyone thinks i'm a little pessimistic, but -- >> oka all right. a little. >> 2.8 million jobs over the last 37 months. it that is a fundamental fact that we need to address. and that was addressed by bernanke in his speech on wednesday. >> well, gar do you aee that the economy is on solid fatting? >> i think it'sind of mushy. let's put it that way. i think the ly number that we need to know, john identified it, that bernae's not going to take th foot off the accelerator until unemployment is 6.5%. now, we all know, i think everyone here, tha under the current administration, we're never going to see 6.5% unemployment. so party on until 2016. >> but rates have gone up. we see interest rates go up,

what does that do to the market anit to the economy? >> that's your real danger. a few weeks al ago, 1.6% on a government bond and now 2.5%. who cares. you try to get a mortgage six to eight weeks ago, you could you have gotten it at 3% now it's pushing 4%. that's a big difference in how you value a home. so this is the market behaving. this isn't the federal reserve. that's bigger than the federal reserve. if it continues and weo to another percent up rapidly, you'reoing to see housing prices start to go down again anthe recovery ending 37 so we don't want to go too far. but i do think a little was good because itas taking the heat off th stock market and we don't want artificially low tes, but they desee rates at about today's level. >> john mayfiel do that worry you, the housing market is one of the few positives in the economy right now. >> yeah, but i don't think rates will go up significantlyfo a maer of time. you understand to dave's point that 8% was the benchmark

brought up by the administration. give us this free money, we'll never go above 8%. thatroved not very right. what you have is a structural unemployment issue. you could leave rates at zero forever, the market reounding would help that. bernanke was100% wrong on trying to deal with something that is auis structural issue. shale gas will do better than ben bernanke will do. >> that has to be the last word. we're just learning the health care law is $2 billion short. should taxpayers he to cough up even more?

support for the health care law plummeting. now only about one in three americans are for it. and no wonder. the government is saying those health care exchanges probab won't be ready by the october deadline. and they will need, get this, another $2 bilon to get them up and running. gop lawmakers sing no way and they are stepping up effortso fight the funding. john mayfield says, by the way -- >> absolutely. look, amecans are not dumb. in fact they're very smart and that's why most people isagree. we know nothing's free. they pitched it as ing free

and it would reduce the deficit. we said it wouldn't and now they want more funding for what is this for the irs. the irs, we had three congressional committees investigatg it and the justice department who is going to pice them? drones from the president and eric holder? you have to give me a break. nothing is free. we're starting to pay for it. >> but the gop couldn't kill obama care. they couldn't vote it down. is this right to try to starve it by keepi funding away? >> they have tried. no, you have to pay for it. don't likeke it, get the votes o kill it, but don't approve something and then -- and the way they're thinking about starving it doesn't evenake an sense. we all hate the irs andthey waste a lot of money 00 -- >> you've never said it that on the show before. you're worried about the dit. >> no, i love the irs. everybody else doesn'tike it. but if you cut a -- look, this health care thing is very

complicated and difficult. that's onof its problems. the irs has a key role unrtunately to lay out the fines for people not gting health insurance. that is revenue enhancing. so tounder staff the irs means you won't have the revenue d it will crumble in on something. i know some want that, but i want someone to pay for it. as far as theratings, about won't get any worse than one o of three because at least one out of three people, this is a gravy train to them. >> gary, take that on. >> i kinof agree with jonas but with aig if. if anyone had money what was actually in this law, or what the consequences would be, i would say, yes, fund it. we went in with clear eyes. but nancy pelosi says we have to pass to uderstand what's in it? we're starting to understand what's in it. look, is it shock to anyone that t government is behind schedule and overbudget? of course not. multiply that ten-fold with the

bottom line costs. we know from the cbo it will cost jobs. we know from case studies in states and other on countries that access to medic care will be limite we've already seen t preliminarnumbers that we're still going to have a wide, wide grp of peop uovered. and by the wa if you are healthy, you'll be paying higher premiums. so, yeah, i wou say right now we are starting to see the ba trickle in. cut our losses. >> that was a big if. okay. david, wt do you say? >> i say you find what is now the law of the land and scott being obstructionist on to getting out the information to what the bill does. >> right. >> let's take the 6 million young adults that nowemain their parents' hlth care pla that otherwise would not have been. or those that have pre-existing conditions that would be denied health care coverage. that has chnged. and i think the more that people come to realize that as well as the implementation of theaw

come january 2014, that you will see those numbers change especially with no more attempts at repealing health care which i think the gop house has tried 34 times to do to no avail. >> john, is this s such a mess that we should just pullhe money out? >> without a doubt. we have this novel concept in the private sector that you put a proposal on the table, you put a use of proceeds on the table, yo say how much something is supposed to cost,ndhen if the nding that was proposed is there and then you need more, you kind of pull back. if someone came to a said invest in my company $2 billion and th six months later come back anday we made a mistake, we now need $4 billion, i'd cut off the funding immediately, think i made a mistake and cut my losses. and i think what we need t do is now maybe in the first place some of our congressisional leaders shld have readhe bill to gary's point.

but what i think we need to do is the thing is fat. the thing is overweight. let's starveit. and iftarving it kills it, i think most of america will be happy. >> you're trying t kill it before it evenets started. >> fantastic. >> better now than later. >> okay, guys. got to be the last word. d you hear this? the nsa snooping mess is exactly whwe need more government union workers? a new push from big labor that may give you labor pains. that's at the bottom of the hour. but fit, get ready get ticked off from this plan. lawmakers paying off their staff student loans with our tax dollars. come on! and for you naysayer,i have @a

so position ythink you only worry about paying off your student loans or your kikids' loans? think agn. lawmakers are picking up the tab for their stf college debt, 21 million bks last year alone. and guess who is paying for it? you. gary, is this fair? >> it's notfair to anyone. i don't understand it. look, government service is a caer choice. and if you think it's easy get a job in government, you should try to come to washington, d.c.. these jobs here at every level, even if they're unpaid swern

ships, are highlycoveted. why? because when compared with the private sector, they're working less hours and paid more if u include health care and all those other benefits. if we had trouble attracting people to d.c. to work this government, i'd say, yeah, we need to increase the benefits. we don't. it's the on at sits. we have more than enough supply out there to meet the demand. and the taxpayer should not be on the hook for one who amore benefit. >> that's the basic argument for ying off these loans is to attract good talent. >> and i think -- and i undersnd that and i can see why this would beart of their benet package, ifou will. a legislative assistant making $23,000 a year is havg a tough time of it. and is working long hours contrary to what wasustsaid. >> but there's a long line of peop around the block if that b. >> in addition, i think it is used to attract tent and keep talent. but in the same instance, i think coressional members need

to to not just deal with their staffer, but with students arnd the country whose loan are now at $1 trillioion and having increased so much. 440%off the last 25 yrs. something has to be done about that. >> and john, what's really increased is if you look not just at congress but all governme workers and take a lookat how the student loan payoff plan has grown, look at that, $3 million to $72 million? >> bren today, da, those numbere sick. i think about all the people that are out of work right now and we have the largest government probably in the world right now saying we need to incentivize people to come work fous. right now we'ren the middle of an employment epidemic. and to gary's point, if someone in the government put any federal job in the newspaper and said this job is available at $23,000, there would be a line

down 6th avenue likeou couldn't believe. the pl came around in 2002 when the privatesector was doing fantastic, so the government wanted a little boost. now the good tlent is all unemployed. we don't need to spend70 million a year to get the go talentnto the gornment. we need to give the private sector some incentives. >> jonathan, what do you think of the program? >> that's exactly itthere is more demand now than therwas for the government job as few years ago. you can't badmououth it. the private sector does this, also. i think the real crisis isn't that the concept exist, it just appepears to be disproportionatl used by congressional staffers and other federal rkers because of -- ion't kw why. that'ssuspicious. but the concept in general -- and those are the most in demand jobs because they want to get over cares in politics. >> i have to get john in there.

what doou think? >> in 2002, we needed extra incentives. we d't need it anymore. and now it has become a political grab bag. everybody is sticking their fingers in it. even those who disagree are using it forheir own staffers. i believe it needs to be shut off. >> that's the last word. thanks, guys. and thanks to david for joining us. appreciate it. forge the nsa. your tv may soon be watching you when you're watching it. but before y tune out, find out how you can profit from that.

prediction. take it away. >> i'm gog to pick atock that was kind of batter this had past would he be and that's the good old red and white there, coca-cola. i think it's back to old highs by labor day. >> bull or bear? >> overpriced. >> john, your prediction. >> sirius satellite announces a deal to pu internet in ever ford car. i see serious upside in sirius up 20% by the year end. >> john, bull or ar? >> i'm a bear on stocks. >> okay. jonas. >> if the a bugs you you, we found out the cable box will watch what you do. that is right, you will see ads for dandruff shampoo. >> they're watching you. gary. >> like verizon after it drops

another 10%. >> john, quickly. >> facebook finds aay on monetize. video will help them. >> bull or bear? >> too much of a run up. i'm a bear. nevelet a scandal go to waste. and when it comes to the nsa, don't do millions know it. hello, everyone. this guy is proof wneed more governnt workers. accordinto a new report, they're ready for a new fight against hiring outside contractors ile pushing for are more federalorkers and security jobs. that have you feeling a little insecure? gary what do you think? >>here is no proof that contractors do a ba job for us with o security. this is an outlier event, one that should be arrested. i do