robiotic that helps maintain digestive balance. ♪ stay in the groove with align. >> very good. glad that's over. ocks shocked. starting on on wednesda as the fed chie the bank may take its foot offhe stimulus pedal. and then reports hit that may happen sooner rather than later. we saw a bit of a recovery on iday, but nerves are frayed. should you beryg about your money? the bulls and bears are here to help. let's ryone. let's gets right to it. welcome to everybody. okay. john, wild week. what does it mean to our yo viewers? >> what i think this means to our viewers is they should be

very concerned going into monday morning. we've d will an enormous run up over thelast few month, even the last year. and le 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 starting to come to roost. and our fu feels like the stock market right now has a correction in md somewhere in the 5% to 7% range over theex quarter. i could look for somewhere in the course of is week about 1,000 points tohe down side. if i was a retail investor, i had some profits, i would go into monday morning thinking let me take some profits off the table, if the bubble starts to burst, there will be great opportunities down the line. but the prevailing opinion is always sell it in may ando away. we're in june. if you havet sold yet, i'd be selling monday. 1,000 points. gary, are you buying or selling? >> well, first of all, john just scared the heck out of me. so i don't think --ell, okay.

i agree with him in 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. that would take below dow 14,000. i think that's probably a pretty safe stopping ground. in direct answer to your question, yes, i started buying late thursday. i started buying a little on friday. if stocks drop a litt bit more, i will buy a ltl bit more. just to on put it in perspective, i'm probably about 70% invested. so i'd actually like to see a little bit more down sidin order to buy more. overall am i worried, as pessimistic as john, no, i think this is a temporary pull back and probably more a good buying opportunity than anything else. >> john, the market has gone very far very fat. isn't itime for the bulls to take a breather? i mean, the dow is up 13% so far this year. >> sure. look what happened in japan. you had them almost straight up

and they have come siificantly off their highs. this market was about 1200 a year ago. just short of 15,000 right now. so think it's normal that anytime you have any perception of bad new, people start taking mone off the table. but i agree with gary that this is a buying opportuni i we go much lower here because bernanke said that he won't raise rates until employment gets down to 6.5% and once you start seeing the economy get better, more people goingn the workforce, it will take a whileefore they raise rates. >> but is has been a bond buying binge. if it stops, if the fed pulls back,sn't that a sig that the economy is improving and isn't that good for the maet? >> brenda, i think you're absolutely right and it's a return that w can rely on. the fundamentals of the economy, you have the jobless rate ing reduced, yu have housing up and

yohave corporate profits an all time high. so i think it was an indication by bernanke that we are seng these indicators and these good forecasts and that please look at this because we may -- if we hit 7% unemployment, we may stt ultimate putting on the brakes ait 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 bule was starting to form beuse of the low rates. the market was getting ahead of the re economy whic is still a little lackluster in a lot of areas especially employment. and what the federal vernment wants to do is keep encouraging growth in t economy, yet sp an asset bubble forming like we had in real estate ihe 2000s. so maybe keep the heat on so you don't have to pull the imulus away. u don't want to have to start

raising ras everywhere and cause a recession for no ason. bu thawas the strategy.ame. and in general, want to be in an ecomy where we don't have to have the federal reserve crting money to buy debt. that's not a natural state of thin 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 thearket 34r5i ple. i see stagnation in gd i see continued deterioration in u-6, i see capacity utilization, underemploymted, part-time employment up. so i don't see any of those good fundamentals. and what i do see is ben bernan's policies are like bernie madoff and alan stanford on steroids. they have been artificially stimulating the marketplace because when peoe get fewer return on their bank account, they're forced to take some risk and get return in e marketplace. so he's forced people into the markets and that bubble is

existing, that bubble is getting bigger. and think i know everyone thks i'm a lite ssimistic, but -- >> okay. all right. a little. >> 2.8 million jobs over the last 37 months it that is a fundamental fact at we need to address. d that was aressed by bernan in his speech on wednesday. >> well, gary, do you a that the economy is on solid fatting? >> i think it's kind of mushy. let's put it that way. i think the onlyumber that we need to know, john identified it, that bernanke's not going to take the foot off the accelerator until unemployme is 6.5%. now, we all owi think everyone here, that under the current administration, we're never going to see 6.5% unemployment. so party on until 2016. >> but rates have gone up. if we see interest rates go up,

what does that do to the market d it to the economy? that's your real danger. a fe weeks al ago, 1.6% on a government bond and now 2.5%. o cares. you try to get a mortgage six to eight weeks ago, you could you have gotten it at 3%. w it's pushing 4%. that's a big difference in how you value a home. so this is the market behaving. this isn'the federal reserve. th's bigger than the federal reserve. if it continues and weo to another percen up rapidly, you're going toee housing prices start to go dwn again and the recovery ending7 so we don't want to gtoo far. but i do thi a ltle was good because it w taking the heat off the stock maets. and we don't w artificially low rates, but they deserve rates at about today's level. >> john mayfield, does that worry you, the housing market is one of the few positivesn the economy right now. >> yeah, but i don't think rates wi go u significantly for a you understand to dave's point at 8% was the benchmark

brought up by the administration. give us this free money, we'll ver go above 8%. th proved not very right. what you have is a struural unemployme issue. yocould lee rates at zero forer, the market reounding would help that. bernanke was 100% wrong on trying to deal with sething that is auis structural issue. shale gas will do better than ben bernanke will do. >> tha has to be the last word. we're just learning the alth care law $2 billion short. should taxpayers have to cough upven more? with the spark miles card from capital one,

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support for the health care law plummeting. now only about onein three americans are for it. and no woer. the government is saying those health care exchanges probably deadline.ready by the october and they will need, get this, another $2illion toet them up and running. gop lawmakers saying no way and they are stepping up effort t fight th funding. john mayfield says, by the way -- >> absolutely. look, americans 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 being free and it would reduce the deficit. weaid it wouldn't and now they want more funding for what is this for the irs.

the irs, we had three congressiol committees investigating it and theustice department. o is gog to police them? drones from the president and eric holder? you have tgive me a break. nothing is free. we're startg to pay for it. >> but the gop couldn' kill obama care. they couldn't vote it down. is this right to try to starve it by keeping funding away? >> the have tried. no, youhave to pay for it. don't likeit, get t votes to kill it, buton't approve something and then -- and the way they're thinking about starving it doesn't even mak any sense. we all hate the irs and they waste a lot of money 00 -- >> yu've never said it that on the show before. you're worried about the audit. >> no, i love the irs. everybody else doesn't like it. but if you cut a -- lo, this health care thing is very complicated and difficult. that's one of its problems. the irs has a key role

unfortunately to lay out the fines for pele not getting health insurance. that is revenue enhancing. so tounder aff the irs means you won't have the revenue and it will crumble in on something. i know some want that, but i want someone to pay for it. as far as the ratings, about won't get any worse than one out of three because at least one out of three people, this is a gravy train to them. >> gary, take that on. >> i kind of agree withonas but with a big if. if anyone had money what was actually in this law, or what the csequences would be, i would say, yes, fund it. we went in with clear eyes. but nancy pelosi says we have to pass to understand what's in it? we're starting to understand what's in it. look, is it a shock to anyone that the government is behind schedule and overbudget? of course not. multiply that ten-fold wi the bottom line costs. know from the cbo it will cost jobs. we know from case studies in

ates and other on countries that access to medical care will be limited. we've already seen the prelinary numbers that we're still going to have a wide, wde group of people uncover. and by the way, iyou are healthy, you'll be paying higher premiums. so, yeah, i would say rig now we are starting to see the back trickle in. cut our sses. >> that was a big if. okay. david, what do you say? >> say you find whats now the law of the land and stt being obstructionist on to getting out the information as to what the bill does. >> right. >> let's take the 6 million young adults that now remain on theirparents' health care plan that otherwise would n have been. or those that have pre-existing conditions that would be denied health care verage that has changed. and i think the more that people come to realize that as well as the implementation of the law come january 2014, that you will

seehose numbers change escily with no more attempts at repealing health care which i think the p houseas tried 34 times to do to no avail. >> john, is this such a mess that we should just pu the money out? >> without a doubt. we have this novel concept in the private secto th you put a proposal on the table, you put a use of proceeds on the table, you say how much something is suppos to cost, and then if the funding that was proposed is there and then you need more, you kind of pull bac if someone came to me and said invest in my company $2 billion and en six months later come back and say we made a mistake, we now need $4 billion, i'd cut f the funding immediately, think i made a mistake and cut my lses. and think what we need to do is now maybe in the first place some o our congresonal leaders should have read the bill to gary's point. but what i think we need to do is the thing is fat. the thing is overweight.

let's starve it. and if starving it kills it, i think most of america will be happy. >> you're trying to kill it before it even gets started. >> fantastic. >> better now than later. >> oy, guys. t to be the last word. did you hear this? the nsa snooping mess is exactly why we need more government union workers? a new push from big labor that y give you labor pains. at's at e bottom of the hour. but first,et rea to get ticked off from this plan. lawmaks paying off their staff student los with our tax dollars. come on! and for you naysayer, i have and for you naysayer, i have two strong words for

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position ythink you only h worry aboupaying off your student loans or your kids' loans? think again. lawmakers are picking up theab for their staff college debt, 21 million bks last year alone. and guess who is paying for it? you. gary, is this fair? >> it's not fair to anyone. i don't understand it. look, government service is a career cice. and if you think it's easy to get a job in government, you ould try to come to washington, d.c.. these jobs here at every level, even if they're unpaid swern ships, are highly coveted. why? because when compared with the

private sector, they're working less hours a paid more if you include health care and all thosother nefits. 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 then that sits. we have morehan 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 paying off these loans is to attract good talent. >> and i think -- ani undetand that and i can see why this would be part of tir befit package, if you will. legislative assistant making $23,000 a year is having a tough time of it. and is working long hours contrary to what was just said. >> but there's a long line of people around the block if that job. >> in addition, i think it is used to attract talent and keep talent. but in the same instance, i think congressional members need to to not just deal with their staffer, b with student

around the country whose loans are now at $1 trillion and having increased so much. 440%off the last 25 years. something has to be done about that. >>nd john, what's really increased is if youook not just at congress,, but all government workers, and take a look at how the stude loan payoff plan has grown, look at that, $3 million to $72 million? >> bren today, whda, those numbe sick. i think about all the people that are out o of work right no and we have the largest government probably in the world ght now saying we need to incentize people to come work r us. right now we're in the middle of an empyment epidemic. and to gary's point, if someone in the government puany federal job in the newspaper and said this job i available at $23,000, there would be a line down 6th avenue like you couldn't believe. the plan came around in 2002

when the private sector was doing fantastic, so the government wanted little boost. now the good talent is all unemployed. we don't need to spend $70 million year to get the good talent into the government. we need to give the private sector some incentives. >> jonathan, what do you think of the program? >> that's exactly it, there is more demand now than there was for the government job as few years o. u can'badmouth it. the private sector does this, also. i think the real crisis isn't that the concept exist, it just appears to be disproportionately ed by congressional staffers and other federal workers because of -- i don't know why. that's suspicious. but the concept in general -- and those are the most in demand jobs because they want to get over careers in politics. >> i have to get john in there. what do you tnk? >> in 2002, we needed extra incentives. we don't need it amore. and now it has become a

political grab bag. everybody is sticking their fingers in it. even those who disagree are using it for their own staffers. i believe it needs to be shut off. >> that's th last word. thanks, guys. and thanks to david for joining us. appreciate it. forget the nsa. your tv may soon be watchi you whenou're watching it. but before you tune out, find out how you can profit from that.

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

another 1. >> john, quickly. >> faceok finds a way on monetize. video will help hem. >> bull or bear? >> too much of a run up. i'm a bear. never let a scandal go to waste. and when it comes to the nsa, don't do millions knoit. hello, everyone. this guy is proof we need more government workers. according to a new report, they're ready for a new fight against hiring outside contractors while pushing for are more federal workers and security jobs. that have you feeling a little insecure? gary, what do you think? >> there is no proof that contractors do a badjob for us with our security. this is an outlier event, one that should be arrested. i