dennis: and dennis kneale. lori: hi lori rothman. the debt chairs are blowing in the windy city, pension obligations dragging the nation's third largest city down in an ocean of debt. steve malanga shows us the money mess lying beneath chicago's polk for money. dennis: a president headed to arizona, at the center of the housing bust but wiped out $7 trillion in homeowner equity. mr. obama have another plan to stabilize and boost the housing market. lori: newspapers, a new status symbol for billion is looking to flaunt their wealth. amazon's jeff bezos be with the washington post. dennis: the fight with george soros and carl icahn ran the. charlie gasparino as the long and short. time for stocks as we do every 15 minutes left head to the floor of the stock exchange, adam shapiro, stocks down.

adam: not as bad as they were earlier. we are off of session lows and may go above 1700. one of the reasons the dow is down 82 points is ibm pulling but dow down and ibm is down 2.2% accounting for 34 points of of the dow but not only the biggest loser on the dow, they got a downgrade which says their stock price could go as low as $175 a year -- a share, a big fall down is ibm and one issue is people don't want their mainframes as much as they used to. lori: the windy city has one of the most poorly funded pension systems in the country, 50% underfunded. no solutions so far. could be the next major city to declare bankruptcy? joining us is steve malanga, senior fellow and author of the indebted states of america, what a title of a book.

what is the story with chicago? truly as bad as detroit or heading in that direction? >> economically not as bad a viable global city but their budget is a mess. $3 billion in taxes they collect, this year is the need to a $415 million for pensions and that is going to $1 billion in a year. this release the projection, that would be the third tax collection going in to pensions. this is something the state is mandating and they don't know how they can pay that. lori: you mentioned chicago economically in better shape. look at the baseball game where all those people to do a rod, more about that this afternoon but the underlying economy of chicago seems to have some growth potential. >> the economy there is okay and. nobody is really flying in this economy but here is the point, has not been economically

declining of the way detroit is but their pension obligations are, their pension system is in worse shape than detroit's, detroit's system is considered an argument how well funded it is but they have four pension systems in chicago, one of them is only 25% funded and the other one is only 38% funded. lori: may be funded through property taxes. no one will raise property taxes. >> interesting you say that. former chief financial officer of chicago did an estimate, in order to pay the bill they would have to raise property taxes 50% to 100%. lori: who is going to vote for that? >> the illinois constitution says you have to pay the pensions so here you have the immovable object and irresistible force. >> any other sources? >> no matter where the money comes from is coming from taxpayers, not the state of illinois. they are a fiscal mess. they don't have enough money to put in their pension system. they have been borrowing

billions every year and i can't think of another state with a fiscal problem that the level they do so is not from illinois. lori: is in a domino situation? we watched detroit and now chicago, would you be on the brink of bankruptcy because of this underfunded pension? >> here is the thing. lori: not like dominoes fall in one city after another. >> pensions basically there's money to pay people right now but the underfunding keeps getting worse and worse so what happens is they hit the wall where they can't afford to put the money in the won't put it in and they will pay other bills but at some point somebody, maybe bond investors, say you can't have a 25% funding level, 75% underfunding and expect us to keep the new. one thing the detroit is the manager said to bond holders is this city was going insolvent for a decade and you kept investing in it. we won't pay you back. that will become an issue in the municipal market over the years

when you look at these underfundings. >> any sense how demand is for municipal bonds? >> they were forced to pay more of a premium but still again as a global city is still working but when you have like moody's and standard and poor's putting out new pension systems and saying we think there is far more underfunded and they are saying, pay more attention to this, telling investors pay more attention to pensions. i don't see how the message could be any clearer. >> anyone watching this interview will do that. thank you for joining us. great to see you. dennis: breaking news chicago fed president charles evans speaking this hour. let's head to rich edson outside the white house. what this gentleman has to say. >> a member of the federal open market committee charles evans, a fed bank presidents from chicago saying the fed is likely to reduce monthly bond buyback of -- starting later this year. he would not rule out cuts in bonn bys to begin next month and

he says the total size of q e 3 will likely end lobbying at least $1.2 trillion, twice the size of qe2 and recent jump in mortgage rates won't hold back the economy as much as he had thought earlier. also says he would be open to lowering of a fed's unemployment threshold of the committee saw that as useful. this is part of a conversation he had with a number of wire reporters giving some other economic predictions as well seeing u.s. gdp growth at 2.5% in the second half of this year, over 3% next year. we talked a little bit about mortgage rates, president obama talking mortgages and housing finance, he is on his way to arizona right now to lay out his proposal which is really just sort of getting more specific on what the administration laid out a couple years ago including winding down any and freddie mac at 15% annually, private investors, initial losses, provide more capital and also

because of what backstop guarantee the government would give, there would be access to a 30 year mortgage the the cost of the mortgage would be more expensive because the government would collect what it calls actuarial the fair premiums in the words of the administration. that's each expected in the next couple hours in arizona. dennis: thanks very much. wall street journal's senior economics writer steve more is here to tell us what a president's plan will be put to the test by an uptick in mortgage rates. welcome, thanks for being with us. the president says he wants to give government more out of the housing business. do you think any politician is serious about that gold? >> no. the most powerful lobby in washington, i have been here for 30 years, they don't want to retreat from the housing industry and that is what caused the crisis in the first place. i would like to see fannie and freddie completely shut down. this would expand its role. i would like to see higher

downpayment requirements on any government in short mortgages. you will seek a continued large federal role in housing and the housing market is mending on its own. i am not sure this is either. dennis: they keep buying mortgage-backed securities to keep interest rates artificially low. >> no doubt about that. that has been an intervention in the housing market. another one of wasn't even talking about the fed but if you look at low report that came out this morning that showed mortgage defaults were substantially down over the last couple months so that is a good sign, housing starts up but the housing market is doing pretty well notwithstanding interventions. here is the problem. as i read the president's outline of the president's speech haven't heard what he is going to say it sounded like they're going to resurrect the failed incentive structures that

created the housing bubble in the first place. dennis: getting government out, it is black, and the mortgage is a round 4%. >> let me give you an example. one of the things they're talking about is shutting down fannie and freddie, but setting up a new government sponsored enterprise that would look very much like fannie mae and freddie mac and give it a different name. in my name that is not restructuring by housing market. dennis: with the 30 year mortgage at 4% what do you figure the interest rate would be if there were no government involvement not from the fed but fannie and freddie? >> good question. so many interventions. let me put it simply. with everything we do for housing whether it was fannie and freddie and housing administration and the fed buying up mortgage-backed

securities and of course the home mortgage deduction and the tax code, those reduce mortgage interest rates, no question about it and give you withdrew those from the equation you would see an increase in mortgage interest rates but on the other hand always made the case in this country one of the problems with our economy is we underinvest in business and factories and machinery and things that create jobs. dennis: americans have done something like $80 billion a year is even more than that in terms of the interest write off on their mortgages. >> other than health care it is the second-biggest right out in the income-tax code. dennis: by a far more expensive home than otherwise able to afford which is good because more construction workers employed but ultimately we pay a price like we did in the 2007 meltdown of housing. >> it is interesting. if you look of a bailouts the we did in 2008-2009 the two

institutions that have not repaid the federal government because the losses were so gigantic my frustration is i don't see congress and the white house doing anything that prevents the next housing meltdown. at the federal government insuring 90% of these new mortgages that are being made and many of them are down payments of 5% or less and those are very much at risk. dennis: we are in the hole on fannie and freddie but let's be of the banks that pay back every dollar, we love listening to you. thanks for being with us. lori: the battle over sony after george clooney helping to be back billionaire investor daniel zillow. dennis: he has the nerve to include a hedge fund guy getting $20 million on film. lookout, warren buffett, you have competition, the arms race of billionaires' trying to buy

up newspapers. lori: a new meaning to the term wine spectator, a great shortage that threatens to sideline california wineries. ♪ [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor...

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lori: let's check the markets. adam shapiro on the floor of the stock exchange watching sony but i am feeling a little bit put up today. would is out there? adam: they are up 5% and sony rejecting the request to slip the company apart, take some value out of it. and that will not be consistent with the company's strategy for achieving sustained growth and profitability and shareholder value, might disagree with sony's statement and this is far from over but the stock this year has been on a tear when you look at the chart. it is up dramatically, 5%

trading around $20, $0.66 a share. dennis: you like sony, they will want to play video games. lori: for sure. why not. that is what little kids do. you didn't hear me earlier. did you stand me up today or not? >> yes. i figured i would get a change of pace. i don't want to get myself in trouble. lori: too late. you are already on my list. see you tomorrow. looking forward. dennis: shares of washington post popping up 4% on the news that jeff bezos will buy the paper for quarter of a billion dollars, 1% of the founder's net worth. understand how sad that is, stocks hitting new highs because the company is shedding its namesake. so does jeff bezos have a bold vision or full's errant? it is down 4% to less than half a million copies. revenue down 30% in a decade,

lost $50 million last year, down from a profit of $100 million a decade ago. assad -- fabrice tours 21 promises to experiment and reinvent but leave in place the same people at the top including the current publisher and ceo, granddaughter of the late newspaper legend katherine graham of watergate fame. jeff bezos won't interfere in day-to-day motivations. i hope he does. keep in mind, he joins some good company, calling it the billionaire, talking warren buffett love sprint, and got out of tribute, carlos slim bail out new york times, mayor bloomberg may want to buy new york times is said by some, the koch brothers interested in the l.a. times, everybody wants to buy these papers. i guess it is for cloud rather than the bottom line. lori: people are sort of thinking that but obviously greece -- obviously jeff bezos

with the e-book -- dennis: and talk exclusively to neil cavuto on fox business. don't miss that one. lori: he is speaking the manager and executives in place of the washington post. dennis: a change at the top. lori: didn't seem too depressed. dennis: got to make money with charles payne, the last major golf season, charles payne says investors should watch this hole in one have a stock. charles: you ever fall -- charles: and -- lori: got to -- dennis: you're not a golfer. charles: you guys are doing a wine story. in 1981, a guy named eli sold the winery for $4 million. lori: that explains the ticker. charles: then he is playing golf and sees this one that is unique and invest in the company 400 grand and starnes to help

himself, delivering these clubs out of the back for a of this cadillac, this is how much he believes in the company, in 1998 sales were four million and the next year ten million and an exit twenty-one million and a couple years later fifty-five million, you got to remember big burst of. so what happens to the stock? in 1992 you could have bought it for $2. exploded, on a sock and the market for years, $199,733, multi thousand 1 hundred% game, straight down since then but create a lot of value. i don't know what is going on, the volume has been absolutely amazing, stock is breaking out to new 52 week highs. i think it will be acquired. dennis: stay away from the stock because it is up. charles: like the idea that the ceo is turning the company around going faster than the industry but i think it will be acquired. lot of things i like. would run its own, a grand slam or a hole in one.

dennis: good job. lori: lohan in fruit. a sham, that is what time warner cable's latest offer, the very latest on the shutdown showdown that has millions in the dark. dennis: i wish i had written that. we will value why american cars are getting old and getting older. with the spark cash card from capital one... boris eas unlimited rewards for his small business. can i get the smith contra, ease? thank you. that's ththree new paper shredders. [ boris ] put 'em on my spark card. [ garth ] boris' small business earns 2% cash back

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>> 24 minutes past the hour your fox news minute. president george w. bush is expected to leave a dallas hospital tomorrow after undergoing a heart procedure. a spokesman says doctors successfully inserted a stick to open a blunt artery that was found during his annual physical. the 67-year-old former president is in high spirits and beer to return home. the u.s. military official says between 50, and 100 american diplomatic personnel have been evacuated from yemen. the move follows what is seen as high risk of attack by al qaeda.

it close 19 u.s. to the medical post across the middle east and africa. on a lighter note a man who calls himself the shark is in the middle of the 22 mile swim in laae st. clair near the michigan border. he is hauling a ton of bricks with the goal of reaching the troy this afternoon. he is trying to raise money and awareness for habitat for humanity. as the your new headlines. get you back to dennis, should be easy to raise awareness. dennis: thank you very much. reducing earlier gains, serious talks about the nuclear program. phil flynn of the price futures group is in the trading pits of the cme. why would the price fall on what seems to be good news? >> for the last couple years we build an iranian war premium. of the president is going to

talk maybe there's a chance we can avoid a nuclear showdown. a lot of traders are not hopeful anything will come out of this, but he is calling for immediate talks with downward pressure, i don't know if we would stay on that news but we're seeing a lot of pressure, gasoline, diesel fuel, taking a big hit and that started on word that the epa would lower the ethanol biofuels target for next year. they did confirm that and granted an extension for is this year, good news for lower gas prices and diesel. dennis: oil is up anyway. gold prices falling for a sixth straight day. what is with that? >> you have a lot of governments out there, the dallas fed president saying it is imminent. you remember a couple days ago at the fed meeting we were worried about this inflation, some of the fed officials are trying to put those fears to

rest. what we are seeing here when we talk about capering, one more reason, capering is negative for gold and you are seeing it today. dennis: thank you very much, phil flynn, price futures group. lori: firing back at time warner's latest offer calling it an empty gesture. since friday at 5:00, have not heard from anybody at time warner cable to discuss anything. please return to the negotiating table and talk about the real issues. time warner offer a single channel option if you will for customers in hopes of ending the blackout keeping cbs off of los angeles. the two biggest markets. also dragging on how long people are keeping cars and trucks. the average age of an american vehicle is 11.5 years up two years from 2007. polk research get this data and said it found people are holding on to their cars because the

quality of these cars is so much better than they used to be and owners trying to avoid monthly payments and detroit calling christie's auction house to appraise the art collection of the detroit institute of arts. and the artwork will be considered an asset in bankruptcy. before it filed for bankruptcy july 18th but a judge is yet to rule if the motor city is eligible. the masterpieces will remain in the city's under it collection including work by van gogh and renoir. what would you pay? >> they will not be selling you that. you need to raise money. lori: i would not -- dennis: 10% offered. investors are loving the new roker. the latest news from that retailer driving shares to a new all-time high. lori: america's pastime

tarnished. the crowd not exactly going wild last night. >> number 13 again. [ male announcer ] imagine this cute blob is metamucil.

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dennis: time for stocks now. as we do every 15 minutes, let's go to the floor of the new york stock exchange where adam shapiro has two fashion winners. adam? >> the woman sitting next to you there, dennis will love this. michael kors. i know lori loves michael kors. on a new 52-week high today. year-to-date, up what, 37%. today they're just up 18%. let's talk about fossil, by the way. i had a fossil watch long before it was fashionable. big sales in europe.

sales in europe were up 16%. revenue in the second quarter was just great. this year they're doing just fine. fossil on a big roll right now. shares are trading up. they set a new 52-week high today. they're trading, what, $127 was the high. they're a little off now but doing well. take as licking and keeps on ticking. do they still make timex? lori: you're too much. i have michael kors on too today. >> there you go. lori: adam, thank you so much. a dark cloud over america's pastime today but will it linger and will it cost major league baseball big bucks? 12 players were suspended 50 games for violating the league's drug policy there is the yankees alex rodriguez getting slapped with the stiffest penalty, 211-game suspension. he is not going down without a fight. take a listen. >> i am not pogue down without a fight. if i don't defend myself, no one will. lori: we have the president of sports corp in chicago.

mark, welcome. so selfish, right? oh, my goodness. >> just a bit. lori: a-rod, you're in chicago. he took the field in chicago last night. a lot more people showed up perhaps than would have. is this scandal bringing more attention to baseball but do you think backlash will step in and people will stop buying tickets for baseball games? >> if the scandal is limited to what we know it is right now, it won't affect ticket sales to any meaningful degree but what they have to really look at long-term is the credittality of the game on the field and that's what bud selig is trying to get handle on and that's really the long-term issue and the long-term implication here. lori: you're hearing terms thrown around to describe major league baseball, sham, a fraud. i mean how does bud selig move on from here? how does he improve and rehabilitate the reputation of the league? >> he does together with the players. there is a ray of hope here, lori. and that is that you're hearing

almost for the first time, from the players themselves, that they want to get performance-enhancing drugs out of baseball. they want to do it aggressively. one of the best things we heard from max scherzer from the detroit tigers who said the way you stop this is to have the ability to terminate contracts. he is exactly right and he is telling it to you from the perspective of a player who might be tempted to do this stuff. if you have the ability to terminate the contract, you will reduce, if not eliminate for the most part the use of performance-enhancing drugs. lori: you can't do that yet. you can't terminate most of these contracts, right? >> no. lori: in the a-rod situation what will they be on the hook for and in terms of players on the field? >> the yankees are in a very awkward situation right now because there is a lot of uncertainty. they don't know how the arbitration will go. they don't know if they have to pay this player another 25 million or get another third

baseman. i heard buck show walter say the yankees are benefited by this don't believe that there may be short-term luxury tax benefits but long-term if the a-rod is confirmed and they have to pay him at highest salary on the team and can't market the guy and probably can't play very well anymore. the yankees are in a rock and a hard place. lori: really infuriating almost offensive with a-rod. another player mired in scandal, ryan braun, right? his team paid fans or gave them, help me out here. they did something to say to the fans, thanks for sticking with us it has been a tough season. could mlb do something, lower ticket prices to acknowledge this mess and show fans how important they are and how appreciated they are? >> on a team by basis they certainly can the milwaukee brewers gave that to give $10 food and beverage credit who bought tickets to games for

brought the price down dramatically, value of the ticket dramatically. that was a great move on the part of the brewers. i don't think we'll see a great deal of that. baseball's attendance is pretty close to what it was last year. this is not likely to reduce attendance. they have to get peds, performance-enhancing drugs out of baseball. lori: will it make baseball boring if you don't have sluggers and low-scoring game. >> i remember in the 1970's watching pitchers like tom seaver and bob gibson and just loving the games. lori: there you go. >> people come out, they come out for the competition. what they don't like and really dislike tremendously are some people trying to get an advantage by using performance-enhancing drugs, illegal drugs, to benefit themselves and that's a real problem. lori: they did come out last night in chicago to boo. that was something to see. >> we'll see that around baseball. my pleasure, lori. lori: we'll see you soon. dennis: okay, now we've got herbalife in a fight for its

life. charlie gasparino is here with the fight between hedge fund billionaires get as whole lot nastier. lori: talk about ibm and we'll be back at the new york stock exchange with trader reaction and stocks are at the low of the session. dennis: first take a look at 10 year treasurys. polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of data for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey, can i borrow your boat this weekend? no. [ male announcer ] share more. save more. at&t mobile share for business. ♪ with fidelity's options platform, we've completely integrated every step of the procs, making it easier to try filters and strategies. to get a list of equity options...

evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. join us at projecuna.com folks have suffered from frequent heartburn. but getting heartburn and then treating day after day is a thing of the past. block the acid th prilosec otc, and don't get heartburn in the first place. [ male announcer ] one pill each morning. 24 hours. zero heartburn. >> i'm cheryl casone with your fox business brief. the federal reserve is quite likely to reduce its monthly

bond buying starting later on this year. that is according to chicago fed president charles evans who said he would not rule out cuts to bond buys beginning as early as flex month. evans says his outlook is consistent with fed chief ben bernanke's view. moulson coors with better-than-expected profit on a surge in worldwide beer volume. they reported net income of nearly $276 million, up 165% year-over-year. homeowners are doing a better job of making their mortgage payments of the. according to credit reporting agency transunion the percentage of mortgage-holders two months behind on payments fell to 4.09% in the second quarter compared to 5.49% year-over-year. that is the lowest level in five years. that's the latest from the fox business, giving you the power to prosper.

lori: breaking news. trouble for global market

exchanges, the third largest u.s. market behind nyse and nasdaq. currently not accepting to orders. in alert batts said, investigating system issues and quote the exchange operator is not accepting orders at this time. they declined to quote to fox business. bats had same trading issues the same day they attempted to go public march of last year. i have charlie here with his commentary. do you want to remark on the bats situation and history there? >> you know, this is scary because the markets are so electronic right now and we kind of have one thing after another, it does erode confidence and i don't think they're ever going public, at least in our, maybe in the next, in the near term this will be a real problem with them but it is an issue. the sec really has to come in here to look at market structure. how is our market structure? because this is an example it is not structured right. lori: let's go to the topic we

talked about, that is the battle over herbalife. bill ackman wants to investigate george soros investment in the company. the question is there really a case for the agency to take on? >> i will say this i will throw some facts at you. dennis has some questions and you probably have questions. we'll just give you the facts. what i understand, what sources are telling the fox business network, the sec, securities & exchange commission is looking into these claims. is it part, is it a new part of the investigation? remember they already have an investigation going on about ackman, his claims about herbalife. he thinks it is a pyramid scheme. he thinks it is a stock essentially the company is not disclosing the true nature of its value. he has been in contact with the sec that investigation is ongoing. from what i understand they are looking at these claims that he believes that there is stock manipulation here by the longs. they're essentially a collusive effort among people that are long the stock, remember he is short, to basically squeeze his short position. that came after last week. we were the first to report that

george soros is now in, you know, owning shares of herbalife in a major way. we don't know how big it is. they have not made a filing. the fact that you have soros and some other longs in it, most notable long is carl icahn who will be speaking with liz claman later on today, ackman claims that there is a concerted effort between some or all of these parties to basically go, to squeeze his short position. we should point out one other thingg we show sorrow's face, soros himself is not in the stock. we were the first to report the fund manager, i think his name is paul. dennis: working for soros. >> i don't think it is soros. dennis: this is kind of man bites dog, right? all the short sellers accused of manipulating stock prices. they take a small stake and put out bad rumors t it was easy to manipulate stock prices up they would want to do that for every stock they ever bought. is ackman guilty of hip hypocriy here? >> this is what i think, we'll hear from carl icahn because he

will address this he will probably say this, listen if you want to know why herb a leif imploded when it did when ackman first came out he basically leaked the story out about him going short. he did not put out like an all points bulletin. he manipulated the stock in his own way before the company had a chance to respond and shares cratered. when the company did respond and got some support, white knights so to speak like carl icahn and maybe george soros's fund, that is by the way, george soros now runs, not a major public hedge fund, he run as family office, that the stock has bounced back and basically erased all of its losses. now ackman's position is in the red. the interesting thing is here, here's this. is turning out to be a short squeeze. i'm not saying take out manipulation. why is that? here is what we know about herbalife, it is basically held among just a few players, okay? you know, at some reason if the stock keeps going up, if there

is tender offer on the company ever, if the company goes private, if only it is held by a few people, bill ackman, in order to keep his short going won't be able to borrow the shares because during a tender you have to basically hold on to your shares, right. >> that's where the squeeze comes in and he will take a massive loss. dennis: other short sellers have abandoned him an covered earlier leaving ackman left holding the bag. >> it is still heavily shorted stock. charlie brady, our master stats guy said there is still a lot of shorts in there and short-covering is involved. remember this would hurt ackman, he has a multibillion-dollar fund. it could cost him a billion dollars. that's a big loss if that's what happened. you know, i'll tell you, watch liz's interview with carl icahn today. i think that will answer a lost questions. this raise any regulatory flags because to your point there is so few interest in this stock? we talked about this before, we still don't fully understand th3 financial structure, how herbalife makes revenue.

>> we know how it makes revenue. they get a lost direction deals. essence after pyramid scheme, you get distributors to sell the product. at some point you run out of distributors. lori: -- it is kind of unfair. >> there is interesting element. agree with that. unfair or the company is in the hands of wall street you could make the point. we point out herbalife says a lot of distributors do take the protein shakes. i find what's interesting is this whole notion of what we reported last week about soros. take carl out of it, carl icahn out of it. soros's fund manager, as we first reported on fox business, a series of idea meetings. he had meetings with other potential long investors before he went, this thing -- dennis: sounds like orchestration and manipulation to me, charlie. no wonder ackman is complaining. >> you said it. you said what bill would say. dennis: there you go. lori: remind everybody that we will hear from carl icahn, four p.m. eastern. he will speak exclusively to

liz claman. four p.m. eastern right here on the fox business network. dennis: go to stocks now, at the new york stock exchange. jason weisberg is there at floor. jason, how is it looking? >> looks pretty grim i guess on a relative basis though it is really kind of painless. this is a slow bleed. i think it is due to lack of interest. not because there is real sell interest. i think most people that really want to play are waiting and keeping their powder dry for, a lot more volume, rather than volatility. dennis: all right. i ain't afraid. don't you be afraid either. thanks for being with us. jason weisberg. lori: you're never afraid. dennis: no. it was a long term, things go up. that is the way it works. >> but you're a little closer to retirement. dennis: that's true. lori: couldn't resist. three out of every five bottles of wine, believe it or not sold in the u.s. are made in california, my home state. maybe though not for long. dennis: the golden state's sour grapes that have industry analysts worried about a wine shortage. details next.

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dennis: a new study says the u.s. won't have enough grapes to make all the wine it wants to drink this year. lori: i don't believe it. dennis: this as "gallup poll" finds for the first time americans now like wine every bit as much as beer. high demand, grape shortage, time to panic? no one bettory ask than cameron hughes, ceo and founder of cameron hughes wine based in san francisco. thanks for being with us. i'm reading the notes. late 2012 industry eradicated excess wine, this shortage, did you guys do it to us on purpose? >> eradicated shortage absolutely. there is no shortage of wine in

the california wine business right now. the report that came out in our opinion is actually irresponsible. we can't understand quite frankly, well we understand where the data came from but i can tell that you nobody in the wine business relies on the usda chart that was in that report to make any decisions about whether we're short or long on grapes or wine in the wine business. lori: you think it was a scam then to say, hey, typical supply and demand, we're short on supply, just increase prices? >> no one has been able to find the report from the authors or get any response from the authors about, you know, what, what the ambit beyond the report. anyone in the wine business can tell you that the chart they used is based on voluntary plantings. in reality you talk to big grape grower groups or anybody that invests the wine business no one uses chart because it is inaccurate. i e it is voluntary plantings.

farmers are independent group and don't reporting when they need to. the actual planted acreage is 20 or 30% over the what the short shows. dennis: cameron -- >> one of the balance position trended toward long. >> i think you're making one mistake here. you're letting facts get in the way of a good story. >> sorry about that. dennis: dennis: a wine shortage, are prices going to be rising? mere reports of expected shortage of rhine could affect how we feel about it and make prices rise, couldn't it? >> they could but however that is not going to happen. during the perceived last year, last spring i think you could have said we were probably short but because of the large, tremendously huge, historically-big, 2012 harvest we're back with plenty of supply. you're seeing discounted return of the california wine business as folks fight it out to move inventory through the system and to grow their brands. so there's nothing at all to indicate that we're in a wine

shortage whatsoever. lori: so the stats here, three out of every five bottles in the u.s. come from california, will it stay that way? >> yeah. i think the california wine business will continue to grow. growers are planting. they're planting smart. they're planting on contract. i don't think we'll have a tremendous oversupply that we saw probably in early 2000 but we're going to have plenty of wine to sell and we'll continue to grow the california wine business. nobody's worried about. dennis: cameron, actually do prices, does the size of the 2012 crop even manage at all, when aren't we drinking wines from 2009 and 2010? what percentage of the 2012 crop is drunk in 2013. >> well all of that puts pressure, you know, on pricing now. folks, 2012 is so big, 2013 looks to be historically large as well. so everybody wants to get through their 2011s and on to the fantastic quality of the 2012s as soon as they can and begin to move that inventory through the system. so, again the shortage that was

there, has now been paved over completely by the large 2012 and what looks to be big, fantastic quality of 2013. dennis: all right. so bottoms-up, cheers, thanks for being with us. cameron hughes. >> you bet. my pleasure. thank you. lori: what to do about fanny and freddie. president obama joining some republicans in calling for more reform. how will it impact housing overall? potomac research group greg valliere joins tracy and ashley next here on fox business. the boys used double miles from their capital one venture card to fly home for the big family reunion. y must be garth's father? hello. mother. mother! traveling is easy with the venture card because you can fly any airline anytime. two words. double miles! this guy can act. wanna play dodge rock? oh, you guys! and with double miles you can actuay use,

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stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. with the bounce dryer bar, my clothes will be fresh out of the drawer for weeks. and it's great when things last a long time. well...most things. [ male announcer ] how do you get your bounce? [ woman ] can't regret fresh. tracy: welcome back. i'm tracy byrnes. ashley: i'm ashley webster. a sent taper is still on the table, for now. stocks deep in the red after a fed dove says, oh, yeah, the taper is coming and it is not the only thing pulling down the market right now. we'll have the very latest straight ahead.

tracy: president obama visits the epicenter of housing boom and bust and calls for more reform from fanny and freddie. greg valliere tells us if it has any chance of passing congress. ashley: she is one of the first to say illinois could become well, the next detroit. alice ton frazier says bankruptcy in the land of lincoln could be much worse. she is ahead to give us all the grisly details. tracy: top of the hour. time for stocks. adam shapiro on the floor of the new york stock exchange. adam, market is down about 100 points. what is going on? >> you can blame it on tapering. we talked to mark newton. he said when we got the trade deficit numbers that were improved on wall street and that meant the fed will pull back and they don't like that. and comments from charles evans, federal reserve president out of chicago, yes, the fed will rule out. that qe3 will be at least 1.2 trillion, twice the size of qe2.

but then this is the tricky one. gdp growth at 2.5% in the second half this year, 3% next year. adding 175 to 2 million jobs a month. those are part-time jobs -- 200,000 jobs. those are part-time jobs with incomes not rising. retailers, especially teen apparel, they are getting trampled in the words of our own charlie brady who is a fashionista. american eagle outfitters leading us to the downside. they hit a new fifth low today. -- fifth low. aeropostal is down. abercrombie & fitch, you might like the ads but boy, their stock is down and foot locker and chico's is down. i will get a nasty email from charlie brady. tracy: abercrombie & fitch ads are the reason mothers like me don't shop there with their children because of their ads, adam shapiro. ashley: he is right. charlie brady the fashionista on the fourth floor. he is smiling right now. president obama is calling

for changes to fannie mae and freddie mac in his speech on housing this afternoon. rich edson is at the white house with more on the president's plan, rich. >> good afternoon, ashley and tracy. president obama leaving a short while ago. he is headed to arizona to discuss his housing plan. this is part of an economic tour the president will be making over the next several weeks while congress is out. the president taking some of his older economic proposals bringing them forth with some new details. we expect that to happen a little later this afternoon. 4:00 is expected for the president to speak. he will lay out in this speech. he wants to call for the gradual replacement of fannie mae and freddie mac, unwind them 15% each year. reduce the fha loan limits to shrink the government footprint there. more regulatory clarity. change some regulations that mortgage originators have to deal with, and he wants to overhaul the immigration system as part of this, claiming when you have more immigrants in this country they're more apt to buy houses and you stimulate the housing market but when you talk

about reducing the government's role, one analyst says that could cost homebuyers more. >> any housing finance reform plan unfortunately is going to make rates more expensive. i mean what you're trying to do is reduce the government subsidy for housing and there's no way to do it without seeing the costs to the consumer go up. >> so there is some agreement in washington. the president, democrats and republicans all want to unwind fanny and freddie. the question is, how do you replace them? the president's plan calls for a bit after government guaranty. he wants private investors to take the loss first. at the end there would be a catastrophic government backstop. what the president and democrats are pushing for more government intervention than republicans. republicans in the house pushed their proposal through a committee level. the idea on to get rid of fanny and freddy, argument is how to replace them. back to you.

tracy: thank you, rich. ashley: bcx exchange refusing to accept orders. they have been temporarily halted. bats says, quote, all systems are functioning normally, unquote. bats global market exchange is the third largest u.s. equity market behind the nyse and nasdaq. that is the very latest on the bats. tracy: okay. well our next guest says the president's speech may actually breathe a little life into the efforts in the senate to reform fanny and freddie which have guaranteed nearly two thirds of all home loans since the housing crisis. greg valliere, chief political strategist at potomac research group joins us now. it seems a little contradictory that the president wants to take the government out of anything. here he is saying let's get the government out of housing. not really though, right? >> you have to read the fine print, tracy. tracy: right. >> i think he would still like to have a government guaranty, not as big as obscene one for fanny and freddie. he would still like to have some

oversight. his path would bee different from the path the house would favor. tracy: same horse, different pleas isn't it because we're still talking about the a government backstop. >> stop me if you heard this before. you have the senate, republicans and democrats agreeing on a bill, yet you have got the house saying no. the house is saying we don't want any government involvement in housing. there is a big philosophical difference. even though i personally think this senate bill could move this fall i'm not quite sure we can get a compromise with the house anytime this year. tracy: deja vu all over again, right? >> yeah. tracy: the big question are the housing lobby groups. they're probably some. most powerful lobbyists down in d.c. right now. they're not actually going to go for this. >> no, i don't think so. in the sound bite i think you had from jared seaburg earlier, he was right. it wail cost people more to get mortgages. you will get some resistance there. the backdrop for this entire story though is the tremendous recovery in the housing market. in fact you could almost say in

some parts of the country there's a bubble right now. but when things are this good ironically it makes it difficult to reform anything. tracy: the problem though, i think is, you could almost argue that the housing market has gotten better in spite of everything else, right? you have late payments down. home prices coming up 12% in june. >> yeah. tracy: and people polled, fox news did a poll, they feel better about the housing market. that can't be because of all the governmental nonsense, can it? >> no. i think the government is background noise to this entire story. would i say that a much stronger stock market and ben bernanke get as lot of credit for it, a much stronger stock market i think has spilled over into housing but i would worry not about an inflation surge in the country but i do worry about a bubble and in many parts of the country, los angeles, maybe phoenix where the president is this afternoon, housing prices may be going up too fast and too much. tracy: it's an interesting dynamic though, right? because you still have parts of

the country, actually the new york area is one of them kind of slow to the party, to the recovery party. so you want to keep the money flow going although according to charles evans, chicago fed president, september might be when we start to taper. do you think that will have an effect on the housing market? >> probably yeah. rates have climbed up as you twice know by 70, 80 basis points the last three months. frankly i was surprised to hear the evans comments. i thought he would be the last holdout and say it is way too soon to start tapering. if charlie evans says we'll start tapering, they will start tape everying in september. tracy: he did say it cast data dependent. we have have to get rid of fanny and freddie somehow but every four years we elect a president and it is political no, no. >> i think the short answer, it is gradually. fanny and freddie will be gradually phased out.

i think senate action is encouraging but i think there is at least a year or two to go before we get any consensus on a bill. tracy: if that. greg valliere, as always thank you. >> you bet. ashley, sony says no thanks to daniel lobe's spin-off plan but activist investor has not given up just yet. tracy: stocks feeling pressure from new taper fears as greg val aways talking about. we have gary goldberg, oliveer, gives picks in the market. look at what oil is doing. it has pulled back as well. 1.34. it is $105.22 a barrel. we'll be right back. with the spark miles card from capital one,

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ashley: well, actor george clooney won a temporary victory over billionaire hedge fund executive daniel lobe, but lobe not back down in his fight to get sony to spin off its movie and music business. liz macdonald is on the story. joins us with the late post in the ongoing saga. >> dan lobe is a billionaire hedge fund manager at third

point. he has basically been blasting away against sony your entertainment and movie business, you know performing, spin it off, unlock the value. raise money through the electronics arm. according to people close to the matter this, is breaking news he will not enter into a proxy fight with sony. he wants to work the back channels, sony, which is a company based in japan, the way japanese companies do it, go through the pretties calls and not take out bones and arrows and hammer and tongues and shrug away. ashley: different culture. >> this is war of the worlds, big culture clash, george clooney, actor george clooney blasting away at lobe's efforts to revamp the sony entertainment interest. clean any says, dan lobe knows nothing about his business. there is no conscience here. agreed did i wall streeter got bailed out. hedge fund owned aig and bonds in greece. he is a carpetbagger an hedge

fund guys don't create jobs. we create jobs. guess what hollywood create as lot of jobs with government tax credits. this is what dan lobe going about sony. he is saying this has a famously bloated corporate infrastructure. ashley: yep. >> high salaries a lot of perks for underperforming executives and also look at this, citing sony flops, "after earth," white house down, comparing them to "water world" and "ishtar." ashley: ouch. >> sony has good blockbusters with a sky fall, the james bond movie. it will not be a public proxy shareholder fight. we're hearing according to people close to the matter he will go at knit retiring way, meeting with sony's banks letters -- ashley: doing it the japanese way as you alluded to at the top. >> that's right. tracy: he pulled out the "ishtar" card. those are fighting words. >> and "water world."

ashley: geli. we talking about bad movies. interesting stuff. >> yeah. time to make money. five of the most shorted stocks on wall street gearing up to report earnings? they all got together and decided to report together? >> these are heavily shorted, shorts have been crushed this year. ashley: they have. >> could mention smurfs part 2. tracy: don't say that. >> really didn't do go over the weekend. it didn't do well. he is english stickler. five companies, heavily shorted. the shorts have been devastated with these stocks already. ashley: they have. >> here they are. see those percentages? that is percentage of the float short right there on the screen. ashley: ouch. >> i have got to tell you something, i happen to think most of these will go up and our subscribers know a couple, you will see that after i'm done. green mountain, they hate it. "barron's" had a negative piece. down to 75 monday.

today 82. who knows why, it keeps heading up. solarcity, big short position. they missed the last two quarters. this is a stock at 9 bucks at a low and hit 52 bucks on high side. tesla of course is the biggest one of them all. >> yeah. >> been as low as 26 bucks in the last 52 weeks. 145 bucks recently. absolute monster. last time they beat the street by 200%. a lot of questions on quality of the earnings. doesn't matter. deutsche bank said they were a buy. by the way elon musk bought a million dollars of the stock with his own money. first solar, another solar play. this is not a stock you can say is really overbought from a traditional valuation. 14 pe, one times book, one times sale. still 22% of their stock is short. then there is zillow. zillow is the abouting a little goofy. they announced president obama will do a town hall meeting on website and stock gained instant 300 million on market cap. tracy: come on. >> i like zillow. i talked about cillo. we're out of it. we took profits.

it has been low as 23. high as 94. it is up right now on a down day. they will report today after the close. we'll see zillow and first solar today to see what happens. last time zillow beat 133%. ashley: 46%. >> 46% of the float. for the audience out there, the company says we'll put a million shares. we have a million shares. we'll offer 900,000 to the public. tracy: right. >> out of that, 46% is short. people borrowed this stock and sold it and at some point they have got to buy it back. this could break the backs of the shorts. next 26 hours for the shorts will be critical. ashley: going to be critical. >> you can tell i'm not a paying fan of shorts but is a personal thing. they hit me awe few times in the wallet. tracy: you're not alone, charles payne. see you later. ashley: all right, it is quarter past the hour, a little after. time to check these markets. adam shapiro on the floor of nyse. adam, what have you got? >> we're still watching the dow fall down about 106 points.

s&p is down as well. we're watching dell. this will be a story for the rest of the summer. carl icahn buying another 4 million shares. has roughly 9% control of those says. michael dell is only other person with a greater number of shares, controlling 13 1/2% of the company. dell right now trading up, $13.73 a share. remember michael dell's offer with silver lake partners? $13.75 a share with a special dividend of 13 cents and guarantying what they have already got is the third quarter dividend of roughly 8 cents. carl icahn really upping the ante buying those four million shares. you might want to channel mel brooks with carl icahn when he says it is good to be the king. ashley: that is classic line. i wouldn't know but it is indeed good to be the king. thank you, adam. stay tuned to fox business talking with carl icahn. liz claman will have exclusive interview with the man himself, carl icahn on "after the bell," 4:00 p.m. eastern time. don't miss that.

lots to talk about. should be interesting. tracy: coming up, as detroit goes so goes chicago? why the windy state and whole state of illinois could be headed for more fiscal troubles than detroit. ashley: yikes! let's look how the u.s. dollar is moving on this tuesday. kind of a mixed bag but the euro and the pound moving higher against the dollar today. meanwhile the canadian dollar moving down and japanese yen slightly higher as well. we'll be right back. right now, 7 years of music is being streamed.

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>> at 22 minutes past the hour i'm arthel neville with your fox news minute. a prosecutor in texas says the army psychiatrist accused in the 2009 fort hood shooting rampage thoroughly planned the attack. in opening statements today the prosecutor told jurors that major nidal hasan had stockpiled bullets and purchase ad pistol and a kit to hold more ammunition. in his opening statement, hasan said the evidence would show he was the shooter but it wouldn't tell the whole story. a man accused of fatally shooting three people during a municipal meeting last night in pennsylvania has been arraigned on homicide and other counts. the coroner says rockne newell was about to shoot more people when he was wrestled to the ground. officials say newell was in a

dispute with the township over a dilapidated property. those are the headlines on the fox business network. get you back to ashley. ashley: arthel, thank you very much, appreciate that. while all eyes are on detroit and its upcoming bankruptcy trial, other u.s. municipalities are also at risk. many experts point to the president's hometown of chicago as the next possible bankruptcy. chicago's problems are massive pension liabilities. sound familiar, huh? that may cause budget shortfalls up to one billion dollars by the year 2015, not far away. one the reasons for moody's three-notch downgrade next month. our next guest says it is entire state of illinois that is actually in trouble. joining us allison frazier, senior fellow at the heritage foundation. it is all doom and gloom. how bad is chicago's's financial situation compared to detroit's? >> chicago and detroit unfortunately have many parallels when it comes to their long-term debt and especially

their pension and retiree health care costs. so it really is very gloomy. the bright spot of course for chicago they have much more resilient and vibrant economy but there's other parallels as well. one thing that the city has been doing is to, the city of chicago has been doing, is the exact same thing detroit has done, which is in a very, in an area that has a lot of violent crime, to pare back on vital city services like police in order to pay pension costs. so we have some real, real problems in both of these cities. and as bad as it is for chicago, illinois is actually much worse. ashley: same reason, just unfunded pension liabilities that really, when you look at some of these numbers, allison, are quite frightening. how on earth they ever going to make up that money that is needed for those pension fund? >> they, well, that is exactly right. you take chicago, and it is one of the top five cities of the

country, it is the least-funded of all those pension systems. illinois, the state pension systems is one of the worst funded pension system than every single state. you have very abysmal statistics and outcomes they're facing. the fact is, the money simply is not there. you can't raise taxes. i mean rahm emanuel has said for chicago he would refuse to, and i rightly so, raise property taxes by 150%. that is the kind of numbers that you're looking at for both chicago and both of the state of illinois. and so what really has to happen is to begin immediately a restructuring of these state pensions and i would add, health care retiree costs. both are unaffordable and need to be restructured. ashley: but the problem with that, allison, as you well know, all of sudden we get the legal challenges. what does the state constitution protect with regard to these pensions?

and while that's all being discussed, time which they have very little of is continuing to tick away? >> that's right. there is very little time. i think chicago is very, very close to having an, and state of illinois as well, to really having to catch up with what they are due to be funding these pension systems. so they don't have time. the longer city and state officials come together to work with the pensioners, actually, it is also the pensioners refusing to work with the government, to restructure these costs, they continue to compound. so it makes the choices much more draconian, whether they're looking attacks or spending cuts, or restructuring the very programs themselves which is what i argue must happen. ashley: but as you said before, what happened in detroit, the services go down. taxes go up. people get the heck out of there. the tax revenue base goes down dramatically. >> right. ashley: essentially you're in a death spiral. it must be very difficult to avoided that at this stage? >> i hope it is not a death

spiral but certainly is a very, very concerning downward spiral. and unless all parties get down to business, and do the hard work to restructure these programs, that may make it the death spiral. now, the beauty of detroit is that they are in bankruptcy and that gives them a chance to work and think through the state constitution for the state of michigan, which has similar restrictions to the city, the state of illinois. and figure out how is that going to work in bankruptcy court, which law trumps which. but the bottom line again, there is not the money to keep promises as they were made. they were unaffordable. and at the outset, what stays and cities in this case, detroit, illinois and chicago can actually do is to immediately begin to roll back these kinds of pensions for new employees. that's easy to do and should be done immediately. ashley: i was going to say the time for action is right now. allison frazier, thanks so much

for putting it all in context for us. we appreciate. >> thank you. ashley: very sobering. of course what is happening wisconsin and indiana are moving in to cherry-pick some of these companies that are concerned that taxes are going to go up. that compounds the problem for illinois and chicago. tracy: right. less tax base. ashley: that's right. tracy: coming up president obama's health insurance exchange is supposed to open in two months but many states still need to hire and train their staff. we'll have details on that. ashley: first look at some of today's winners and losers. a tougher market. we have winners on the s&p. take a look. we'll be right back. [ male announcer ] ese days, a small business can save by sharing.

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do you 90 minute until the close. still hanging on to those words, tapering of a lot of at. reporter: that is right, that is what we are talking about on the dow jones. we saw i pulled the dow jones down 34 to 37 points. let's talk about disney right now. is he right now is actually trading up. it's actually leading the leaving the dow jones of about 1.6%. close to the 52 week highs. revenue about 11.6 billion. look at what they have to do. they have a lot of explaining to do. it is more like what comes out of silver. it was a real stinker. plus they have do explain to espn and they fired a bunch of people.

ashley: adam shapiro is here getting confident. thank you. the complete coverage of disney earnings. tracy: a lot of stuff to look for as adam shapiro just detail. crude and exchanging up for a third straight day. today's drop is a loss of more than on percent. tracy: ashley: stocks winding down as we have been talking about. my next guest says we could see more volatility as the that this season's of earnings comes to an end. joining me now is gary goldberg of financial services. >> how long will it last? reporter: you have low expectations coming into the ear

and trendier so what you have right now? you have improving economic outlook and you have a surprisingly strong earnings putting into the background of low expectations. that is why it is up about 20% year-to-date. someone that doesn't really understand. that has been maintained. putting short-term volatility aside. it will stay in to place even if the fed does tabor. as we go into august, investors will start concentrating on new things and the next thing that comes up will be the jackson hole summit where the fed will talk about the level of tapering and it will make investors nervous and create more volatility and probably going to create one for buying opportunities as well. ashley: we were talking yesterday about private equity managers. how they are saying that this is a tough market.

do you think that that is overly pessimistic? >> if you are a short-term trader, that is a wise move to make. if you are a true investor, there are legs left in the market and we all know that market timing doesn't work. everyone likes to tried everyone smile. >> a dividend was possible. you look at some of the small-cap companies that are u.s. centric, like wd-40 which raised full-year expectations. they are continuing to execute on their business plan.

they are not across the board out of whack. everyone likes to talk about the dow jones or the s&p is an index. there is still plenty of opportunities out there. in the way to identify those is very simple because they have a strong balance sheet. a growth rate and earnings growth rate. if their stock is up 10% assertion of 15%, it is very well values. well, then you're probably getting into this territory. speak to you like apple on the tech side. is that right? >> yes,. ashley: innovation is a challenge. but we talked about this on fox business news.

>> apple generates an enormous amount of revenue. having to settle for the fact that it is going to be a market that is outperforming a bit. it is not going to get on the expectations and that's where it is. if you look at fault for in the second quarter in april 1, it has actually outperformed the s&p as a whole. it hasn't been a bad deal for investors, but it's one of those spots where expectations are down. at some point or another, that will probably turn it around and make a wonderful investment. ashley: thank you so much. that is not so bad. tracy: not at all. but we would like to see some new products as well.

president obama's health care law. the insurance exchanges is expected to open in less than two months. but some workers have yet to be trained or higher. gerri willis is keeping track of all that is going on. you must have a list of what's going on. gerri: i have a whole file cabinet see one you want to implement it. c-3 okay, so who are these people? the navigators. we are explaining obamacare to everybody. they haven't hired them yet. the government is saying, i know that we need the ability to do this. these are the grants are

supposed to go to the states to hire them and train them. the money is not out the door. there's another two weeks before the money goes out the door and put into place. we are thinking now that it will be 32 business days to get things up and running. what is funny is that the republicans have talked for so long about repealing obamacare. let's just give it to the government to implement. >> it will never happen. tracy: so people won't have a clue what to do. gerri: we always knew that would be problematic. the government and 34 states will be running these exchanges. so it's always a question of how well it will be implemented. the answer is not very well. but tonight we have solutions. fewer questions and more solutions. we will be talking about medical tourism. so if you are somebody who thinks that this has a price, we are going to show you why it

makes sense to go overseas. what procedures should you do. the other segment is something that i'm very excited about. what is the best way to respond? ashley: change your phone number. gerri: know, most people cannot say no. it is really hard to say no to a sister or brother or a dad or whatever. i have heard it's very tricky and we will be talking about that as well. tracy: not something a really good topic. check it out on "the willis report" on the fox business network tonight. 6:00 p.m. and 9:00 p.m. eastern. ashley: going old school, buying a newspaper. this $260 million by coming up next. tracy: your dow jones has backed down 92 points.

2.64%. 3.73%, we will be right back. [ male announcer ] imagine this cute blob is metamucil.

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ashley: amazon.com putting his shares on the line. jeff bezos.

>> you know, company shares have been up as much as 6%. you guys will figure that out. less than 1% of the network. that is kind of sad that the stock is hitting new highs. so he has been down 40% in a decade. revenue is up. $50 million last year. that is the profit of a hundred million a decade ago. all the same people at the top presiding over this, including the publisher and ceo of the late newspaper legend of watergate fame.

but you have to be hoping that he might mislead this with the kindle. you end up wondering if you have accounts like warren buffett, stumbling so badly and he is coming on the network later. and then you have the coke brothers controversial guide, some people say mayor bloomberg. but he may have what it takes it ends up being a good investment. >> that is true. as you say, political clout as well. >> you don't end up picking a fight with a guy who buys it by the barrel. tracy: so who is reading this?

>> we think that they are getting every story that they had. "the washington post", they get it from the newspaper. some days you just don't know because it's on some computer screen. ashley: thank you so much. tracy: going down to the floor of the new york stock exchange. let's check in. the market is ahead 100 points. i defy anyone to tell me papers and pricing. look at what happens? reporter: you know better than that. taking a little breather from the greek gains that we have seen. we have had this over the last several weeks. you know, i would not paint this direction as doom and gloom.

>> what do you think? tracy: okay, sir, we got it. it does seem seem anytime you talk about if it's a little early. ashley: coming up, this man says the u.s. needs to stop promoting some college majors other than basket weaving. [laughter] tracy: something like that. all right, let's take a look at today's winners and losers. adam shapiro says we will be right back.

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tracy: picking the right majors. joining us now is former green capital partner ed conrad. we were just talking. i was a double major in the arts cool. then i went and got my mba so i could get a job. i get that. his shakespeare dead forever? >> no, i don't think that. it's not to say that we can have all of one and none of the other. the question is on the margin, for example we have jeff bezos,

from amazon. would you give a degree to a technology major for a job? tracy: we need more engineers. they learn everything and then they take it back to their home country. >> they do, but there has been a big reduction in the gpa and sat scores about these graduates. a lot of them are business majors. so they have gone to war in an offshore workers to try to fill the needs for the s.t.e.m. graduates. tracy: the arts majors know how to communicate and talk and write code currently. i know many brokers and accountants who cannot spell. >> we all know that writing is a complicated thing that hones your thinking. it is critical to the logic and careful analysis. i don't think anyone would deny that this is important. the question is the extent to which you do not in the

undergraduate degree. ashley: maybe we need to infuse humanities into these degrees. reporter: yes, for example, i was an engineering and i was doing integration on that. but i really need to take it that far. >> i think you end up graduating and then being underemployed a lot of times. you take a job away from someone else who is less talented who could've had that.

tracy: dominators majors had more opportunity than the i.t. majors. now, could it be that so many people that there are less drama majors out there, more opportunity for them, so many i.t. majors out there it just can't find this? >> i would have to see this study to actually believe it. but if you do look at the skill-based criteria, extroversion if you are intelligent, it is extremely valuable. in many cases, high on this level and it is really valuable. tracy: i will end up eating crow. i will probably never allow my children to do that. but thank you so much for being here.

ashley: you can teach them all about it. tracy: that's right. [laughter] tracy: one final story. lloyd's of london trying to get information of the $1.3 million award that leads to the recovery of the jewelry. it was on display for an exhibition making it so that the largest prize ever. some of the jewelry will be published in french newspaper tomorrow. one guy wearing a hat and a scarf and a gun and he took up with $136 million of tools. no weapons of any sort, no electronic devices or anything like that. this is actually pretty easy. tracy: that is so cool. all right, how about this icon?

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liz: a fox business exclusive. billionaire is raising the stakes over the company that bears this name. who will break first and the update with carl icahn. these two industries have a lot to celebrate right now. we have the ceo of mgm international. discussing earnings and expansion. in the amazon billionae