♪ ♪ imus in the morning >> higher taxes on the middle class. redistribution of wealth and a president who acts like a king. i'm charles payne in for stuart and this is the big story. call it obama 2.0. the latest example, higher taxes on your cell phone bill to pay for internet and schools. according to a new poll, the president's policies aren't working and we're going to have numbers for you in a minute. to the markets down again, talking about a triple digit move after the open to the down side and where are the short

sellers putting their bets right now? we're going to tell you. and we know where a lot of obama money is going to planned parenthood. and the organization's d.c. branch helping the youth, and the new law. we want to know how you feel about that. "varney & company" about to begin. make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you start usi active trader pro today. a quarter million tweeters is beare tweeting. and 900 million dollars are changing han online. that's why hp built a new kind of server.

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>> first in northern africa, the egyptian health ministry says that 525 people were killed and largely pro morsi demonstrators have 43 police were killed and a month long state of emergency declared. and the muslim brotherhood is planning an afternoon march. president obama will make a statement on the violence in the 10 a.m. hour. i'm calling it obama 2.0 in the second term.

agendas, i am king, going around congress for executive power to push through the agenda. and renew the public's wealth it's public domain and more middle class taxes. the latest, tax everyone's cell phone bill to pay for wi-fi and public schools. and all of this as the approval rating down to 35% according to gallup. liz, what's happening in the country? >> i think the voters are waking up. a negative, and drop in handling of taxes and the federal budget and health reform and these numbers continue to come in negative on the president's-- >> 35% approval on the economy. that's devastating. this is a freefall that we're in. it's got to reflect something besides just, you know, it's reflective of something bad in the future. >> the federal reserve moves are helping slug of his approval rating and helping to

move them up. if the federal reserve wasn't doing that. >> 35% free falling in the last two weeks, guys, stocks are going to open a lot lower. is this the direction that people were predicting? this has been a big theme of ours all week and we want to know what stocks they're targeting. and big names you know, making headlines this morning and we are a following these stocks and what they say about the overall economy. that's next.

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♪ >> well, we're headed for another losing week overall for wall street. w we're going to check on the stocks that the short sellers have on the list. the company joining us from chicago, larry levin. the dow continues to be in a funk. we were down last week and now down again. the momentum to the down side. how bad can it get? >> i think it can get bad for a while and i think something is going to get in front of the down, and that's ben bernanke.

i think he's going to tell the fed governors to quit talking about tapering and whether it's economically feasible. they're going to build support into the market and happen sooner than later and i think this market is a buy. >> at 12 points they have to ease up on tapering and since it's going to happen in september why not go ahead and get it done with? >> i would like them to have done it a long, long time agoment and also, the issue is that they've gotten themselves in this and they don't know how to get out of it. and once it starts happening, this market takes a big hit and maybe it's unavoidable, but they keep waiting and waiting and waiting. >> anytime the fed plays through wall street i think they're making a giant mistake. larry, the bell is ringing, thanks for your help. let's check on the opening bell. we're off 93 dow points and we'll tell you reasons why.

first off, wal-mart, a big miss on revenue for the largest retailer in the world and nicole, find out where it opened. >> and the dow component is down 2 1/2% basically, a drop of over 2%, that's going to weigh on the dow jones industrials. they missed their numbers and one thing they cited was the higher payroll taxes, charles and you are well aware of the fact that with money coming out of people's paychecks, don't have the money to go there and hit wal-mart and these are the types of people that are affecting and affects all americans and certainly the consumers that want to shop at wal-mart. >> i know, and wal-mart is without a doubt a proxy on the american economy. i want to take a quick look at apple shares, they traded above 500, and where are they now? >> nicole? okay, actually they're a little lower, but we're able going to keep an eye on apple, that 500 seems to be a big psychological

number. i do want to go back to nicole to talk about the economy being hurt right now and cisco, the numbers are out after the bell and that stock was under pressure. >> this was down big time. and wal-mart was down, and 7%, 6 1/2% to the down side and they're cutting 4,000 jobs. there were positive comments and they completely missed their numbers and they're seeing knee jerk reactions here today. >> all right, you know, there was a time when cutting jobs, wall street used to like that news and certainly a red flag that the stock is under pressure and not good for the overall economy. good to see you back. >> thanks. >> let's add macy's to cisco, wal-mart, face it. not good news for three big names that you know, all same weakness in the economy and want to bring in normal s&p steve economist david wyss. it doesn't look good when the household names are like this, it raises a red flag and it's

reflective of something in the economy, perhaps something forward and maybe getting worse, right? >> yeah, i mean, i don't think the numbers are getting worse. they're still continuing to grow, but it's been a very slow progress and markets are losing patience to some extent and almost always do come the end of the summer. >> you can argue it's a slow process, but considering the breadth of america's economy and where we've been and how we have we've recovered, there's something wrong with the recovery of this recession and it's just not living up to its potential. >> well, actually, it's not as weird as you think. if you look at reinhart and the arguments from a couple of years ago, it's following the track that they said, when you have the debt-caused recessions, it's hard to get out of them. you can't afford to spend out of them. >> i see wal-mart down in earnings and macy's, cisco down on earnings and to me, it suggests a lot of problems

throughout all parts of the economy. how do we turn them around? i don't know that we can afford to just bump along the way we have been. >> i'm not sure we've got an alternative. it would be good if you've got strong action from washington and fix some of our problems, that's not going to happen and get them to agree on anything. >> give me an example of some of that, quote, strong action. >> number one, we've got to do something about the long-term deficit problem in the country. we've promised people way more in health care and social security than we can afford to give them. number two, we have a tax structure that doesn't make sense. we have some of the highest tax rates in the world and some of the lowest collections relative to gdp because of the tax code that is riddled with loopholes. >> david, we've had a triple digit drop, we've seen triple digit drops last summer and you know, low volumes, skittish

markets. we're hearing chatter on wall street that it tapers back and stores buying treasuries. that it continues to buy mortgage-backed securities to keep the rates low. what are you hearing? >> i don't think they can do much about twisting the two rates, but i think they're going to start tapering within the next few months and depend how the data comes out and the markets are scared of that. it's weird. the economic data was too good which seems now they're expecting interest rates to go up quicker. >> i've got to tell you, that is the conundrum we've put ourselves into. making the bridge from the rally fueled by the fed in a lot of people's minds, to one that could be hopefully perpetuated by the economy, but the numbers doesn't look that well and the advice you've given, while a lot of people are watching the show agree, i don't think that's going to resonate with the administration.

thank you for your exercise this morning. >> thanks a lot. charles: when people want to bet on the stock market going lower, this is the man they reach out to. john is here with us. listen, you have three stocks that you say that a lot of people are shorting or good short indicators. you want to share them with us. >> what i brought to you today was, i was looking at some of the stocks that are traditional, not large s&p names. today we start to see heavy activity from people looking to borrow shares in names like j.c. penney, cree and ge. and when the short sellers are willing to pay a premium to buy stocks are that traditionally easy, we want to remind the audience, essentially you can say i want to sell xyz at 20. i don't want to own it, i'll

come back buy it at 10 and difference between 20 and 10 i put in my pocket and that's the gist of the shorting and the names, not hard to find stocks and the premium will give it to the brokerage firm. >> and you know back in the financial crisis days, that's an early indicator when stocks that are traditional hard to borrow, i look at that, there's a potential tricking down, a lot of things the rising tide brought them up and the shorts are hammered. >> i want to talk to you about that. the shorts have gotten crushed. there was a period where the favorite shorts, tesla, green mountain, all of these and amazes me the shorts never run out of tomorrow. a billion tomorrow and a billion today and find more money to buy these stocks and could this be a last stand, 2013, this period, everyone is

talking about a giant correction right around the corner? >> i think from what i've seen 15 years in the securities lending business, i feel like when you see the deepest pockets of the smartest money. yes, it seems like the shorts have an endless supply of money, but when they think the fundamentals are in their favor and the stock is overvalued they'll continue to buy into that position and i've seen a lot of small to mid sized guys go away primarily in the shorting business over the last couple of years, but i don't know if right now, you can determine an immediate correction because the markets are thinner, but i think when you start seeing the big names, citigroup is a big name and people are looking to borrow, that's an early indicator when we saw them. >> we're going to keep an eye on it and if we do crash we're going to blame you. thanks, you've got to check this out. you know the 3-d printer. it's come to "varney & company" and we've got one, a 3-d

printer in the studio and fired it up. it's printing something right now. we're going to he shoe -- show you what it's working on and that's in the next hour. and i have the honor of trying to find seven early movers, trying to find them on the upside. this is my pick, it did get an upgrade buy at roth capital and buy from neutral. and take a look at net east. these stocks have been through the roof and this company reported this morning. and cyber life sciences target is 50 and that's a big time target and that's medical instruments play and there's been consolidation in that space. and this got an upgrade. buy at bank of america, target is 40. looks interesting, having that all the earnings estimates have been coming down on this one. estee lauder, a great number. a record year, skin care and

makeup, through the roof. and take a look at dillard's. everyone is saying the department store model is broken, not for this company. the department of same-store sales are up. and you see that stock is up big time this morning. finally in the semiconductor space. they're interesting and the last earnings report was so-so and commanded a 55% premium from a takeover from maxim. and the takeover 23 bucks. let's look at the big board. the selloff continues and the dow off 157 points and we're just ten minutes into the opening session. next, the man who's helping businesses relocate to puerto rico for lower taxes. ♪ it always seems like yesterday not far away♪ ♪ tropical the island seems, all of nature wild and free♪ ♪ this is where i long to be,

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and this pk is the inside of your body. see, the special psyllium fiber in metamucil actually gels. and that gelling hes to lower some chesterol. metacil. 3 amazing benefits in 1 super fiber. >> all right. let's check on the big board. we've been under pressure all morning long and as you can see, the dow or 156 points right now. i want to take a look at individual dow stocks. look at this, guys, they're all in the red, cisco and wal-mart are the big losers this morning. time for your morning gold report. holding above 1300. hanging in there, but rather lackluster movement. 1326 an ounce. a lot of people would love to move to puerto rico for the great weather and beautiful beaches, but apparently there are a lot of other reasons to make a move there, too, like lower taxes. attorney larry friedman joins us now and helps businesses

relocate to puerto rico and there's a lot of talk about the hedge fund managers and the like moving there and they've got a lot of negative pr in this country and is there any negative pr with the company moving outside of america to puerto rico. >> there's nothing negative and there's nothing illegal about anyone moving to puerto rico or moving their business to puerto rico. >> so, we're not talking about the legality of it, but the idea, i have a business and i'm in des moines, iowa and you tell me, okay, uproot and let's move to san juan. no one is going to be upset about that? >> no one is upset about it, puerto rico is welcoming. there's a very aggressive business community there and it's a great place to do business. >> so, talk to us a little bit about the companies that you've helped. what kind of demand are you seeing? >> look. these are trying economic times. people are looking to save money, people are looking to increase--

>> give us an example of some people that have come to you recently and that we know the names. >> i'm not going to share the names with you on national television, but i can tell you this, we've helped small mom and pop companies. we've helped medium sized companies and helped fortune 400 companies move to the island of puerto rico. we've had a company from california uplift in its entirety and move to the island of puerto rico to save taxes, to take advantage of the skilled labor force in puerto rico, of the lower wages, community in puerto rico and it's been a great opportunity for that company. >> okay. now, obviously, it's been great for puerto rico as well. you just talked about the skills. it would seem to me. i know there's been for a long time tax advantages for the pharmaceutical industry. here are skill sets lacking in

america in general. what about the skills gap, it seems like there would be some issues there with relocating to puerto rico. >> there's a highly skilled labor force in puerto rico and there are statistics about that and many of the people raised and educated in puerto rico have been schooled in the u.s. and these people are looking for jobs. the wages are low. and they welcome the opportunity to work for u.s. companies coming to puerto rico. charles: larry, why, before we let you go run into the details on the advantages. why does puerto rico have such an advantage over the rest of america? we know that it's a u.s. territory so you're automatically an american citizen and yet, at the same time there's a lot of taxes that puerto rico citizens don't have to pay and i'm assuming corporations as well. why does this exist and how fair or unfair to the rest of the country?

>> for new puerto rican businesses, 0% tax rates for dividends or profit distributions from businesses to puerto rican residents and you get a tax decree and they're good for 20 years and renewable for additional ten years. you talked about the hedge funds and for individual investors, the profit incentives -- the profit incentives are incredible, zero tax rates on short and long-term capital gains and those rates are guaranteed until 2036. >> it sounds like you must have an easy job right now. we'll talk to you again soon. >> thank you, appreciate it. >> thank you. facebook's cheryl sandburg taking heat over the workplace quality. is the outrage justified? we'll talk about this and they'll give you the answer. ♪

>> all right. guys, two big names that you know right now profits, and the disappointing outlook and a different story at estee lauder. they're up 84%, the stock one of the rare winners in today's session. and sheryl sandberg and the organization is in hot water because the top editor posted an ad looking for an unpaid intern. now, a lot of companies do this, but sandberg's foundation look at equality for women. and i have two women here, monica and liz. >> great to be here, charles, and e-mack as well. a hypocrisy problem and a lot of companies do this. unpaid internships when you're young can be valuable, you're trying to learn and not just there for the paycheck and trying to be an apprentice. and getting back to the

hypocrisy, she points out that women should be leaning in and coaching you should be asking for raises as a woman, aggressive, shouldn't be afraid or conditioned to want to be liked all the time. for her to post an unpaid unternship i think raises questions about what she is really all about. >> and it's a nonprofit. so lean in is saying it was put on the page for a volunteer. and like many nonprofits, we do use volunteers. which is it, volunteers or inte internships. charles: and the 90 million she had last year. >> i don't-- >> the optics are horrible. i've got good optics, we've got a 3-d printer in the studio and look at it go. it's so cool. we'll show you what comes out the next hour. also at 10:00, should doctors

be responsible for the prescriptions they hand out. outrage over a report over oxycontin explosion in this country. we've got it for you next. ask me what it's like

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president. oliver stone calls him a snake. america as a medicated society, someone is outraged doctors prescribe so much oxygen content. why do rich people not retire? the man who wrote the book on the rich, 3d printer arrives in studio printing something real cool. you got to see this. get ready. ready to start. charles: we got to start at the big board down 200 points, we started with the theme that a correction may be in the offing. it is tough right now. liz: check your bucket list for better diversification because all of the great forecasts, second-half earnings growth will come in great. this jean-louis jackson hole meeting coming up in two week. watch out for a federal reserve

officials saying something that shake the market. charles: the philly fed looks like it has come in not as good as well as expected, more disappointing news. we also have disappointing news on the floor of the exchange. the biggest loser? nicole: this is weighing heavily, down 7% at the moment. cisco systems a huge dow component came out with these numbers that were weaker than expected coupled with 4,000 jobs so under significant pressure down $1.84. charles: lot of stocks down but.

charles: the greater point is the idea of this president will go alone and competes to raise taxes on the middle-class a different way whether it is of cellphone tax or not and is going to push about redistribution of wealth, the idea is the nation's well who is deep, public domain, and when -- >> to call him tyrannical.

and if congress doesn't act i will do it alone. >> the debt that is not that he wants to become a dictator but public opinion is so low that we are not seeing anything get done. the american people -- >> i have not been a big proponent of obama even though i am a democrat for a long time but i think you and twisting the message, congress isn't doing anything. >> taking the bully pulpit to believe the other side to be really preachy and the thing is he has officials in the white house who are overseeing executive action so he could install a big vision policy without checks and balances of congress and that is really bad. i don't think the american people want that. >> congress is not getting anything done. >> it is not a good thing that

the people working for us, the american people. charles: congress allowed the president to stick and then there power too. now this. the president is in trouble when extreme leftists in hollywood dictate oliver stone turned against him. and this ennis a snooping scandal and national-security policy, listen. >> it is about the way j. edgar hoover did it and he brought a week of government to bear on protesters. he didn't like protesters. he thought there were left wing communist. could never find proof but by the time the vietnam war came around 500,000 people were on the list. where are we now? same place.

obama is a snake. we have to turn around. charles: a snake. comparing him to j. edgar hoover, we have to turn on him. this is amazing stuff. oliver stone is out there but he is a leftist, he is the kind of got it put the president in office. liz: he is working on hugo chavez, a love story. e-mail lot of money off of the american system. billups fidel castro too. i don't like anyone demeaning the office of the presidency. charles: what about the president himself? liz: he the and it's a.about the president of viking protestors. charles: you wouldn't call the president a snake. >> i have said worse about this president. let me say the nsa scandal has made some strange bedfellows. people on the far left like oliver stone, libertarians like rand paul and staunch conservatives who believe the government is overstepping their bounds by surveying regular

americans, parlaying intelligence interests in to criminal investigations with the d.a. and the irs. this is extra and aconstitutional. charles: this hurt the president with young people tremendously. really odd. >> we can fight about obamacare all the time but when it comes to this privacy issue, we are now all in agreement. wait a second. were you doing behind our backs and the point about young people, we are in the social media, but younger people are in social media at era where there is facebook and all these things and we are wondering is everything going in the hands of the government. charles: on the cover of the new atlantic out right now called the drone -- along as a lines they hid the fact he is killing so many people with these drones without any -- liz: there is bipartisan

agreement on that. >> he says i will make changes. where? charles: might not be the change you are looking for. believe it or not we have not won, not two but three big winners in this down day in the market. liz: looking at polls and j.c. penney with estee lauder, these are names on the s&p 500 that are looking pretty good. when you think of j.c. penney, there has been so much turmoil and up and down, george soros recently announced he is the second-largest shareholder, that is very interesting. and sales are good but profit not so great but estee lauder did well with make a band skin-care sales looking good and profit rose 84%. that is a great performer up 4%. we are bringing winners on a day that were 206 points on the dow

jones industrials of looking like a second down week. charles: thank you very much, we appreciate it. deal drugs, get caught, go to jail but the prescription drug oxycontin is responsible for overdoses and addictions, much of it because doctors overa prescribed the drug in the company that makes it, actually there's a system that tracks suspect doctors but doesn't make the data public. you brought the story to is that you are fired up. >> i am a criminal defense attorney and i have represented so many people on the streets of chicago who are arrested for dealing drugs, there's a supply and demand market, with the you agree with legalization of drugs people like getting arrested for low-level offenses. we have seen it from eric holder's recent statement that we're criminalizing and incarcerating people. we are the most incarcerating country in the world. we have doctors who are

prescribing controlled substances at such high levels, we have addicts at how is it okay because you went to medical school and you are.edu conoverprescribe? their data base is over 150,000 people, doctors. charles: we could find out who is abusing the system. would you like to see less incarceration for the broader crimes out there or more incarceration for doctors knowingly over prescribing? >> i would like to see both. there's a balancing the need to look at. all these stars when they die we see mixtures of prescription drugs in their system. is an epidemic, it is a problem and doctors should not be given a pass to violate the laws and to allow addiction to carry on. charles: you look like you are chomping at the bit. >> a really interesting subject becoming more and more of an epidemic. i get back to the question of personal responsibility. of your medical doctor with a license to have responsibility to that patient, you believe the

patient is abusing drugs, then you have a responsibility to deny those prescriptions. charles: if they don't live up to their responsibilities should doctors pay penalty? >> it is a slippery slope because so much is subjective, if you're trying to explain to the government what the patient to actually needs this much oxycontin versus i am not sure if he or she is abusing at how do you make -- charles: two pills a day but i know you are taking 10. >> somebody is dr. shopping. >> the maker of this drug has the database and i don't know the proper answer. the answer going back to the privacy issue that the maker of the drug should be able to keep this information or do they have a duty to give it to the feds and say we think these doctors, they have the list of these doctors they believe are overprescribing and violating the law. charles: the greater issue of

overincarceration for small-time drug offenses, we address that? liz: eric holder has it right. seeing the problem at rockefeller for decades. and with prison incarceration north of two million edging towards three million that is a lot of taxpayer money going for people who maybe don't need to be in prison. >> i saw the to statistics yesterday, one in 28 children have a mother in prison in this country, one in 28. that is astonishing to me and we need to find something. charles: thanks a lot. really appreciate it. chaos in egypt intensifying, 500 people dead in clashes there, president obama about to deliver a statement on the crisis and colonel ralph peters standing by to respond. [ male announcer] surprise -- you're having triplets.

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from capital one and earn unlimited rewards. oose 2% cash back or double miles on every purchase every day. told you i'd get half. what's in your walle does your mouth often feel dry? a dry mouth can be a side effect of many medications but it can also lead to tooth decay and bad breath. that's why there's biotene. available as an oral rinse, toothpaste, spray orel, biotene can provide soothing relief, and it helps keep your uth healthy, too. remember, while your medication is doing you good, a dry mouth isn't. biotene -- for people who suffer from dry mouth. charles: i am not asking you to buy anything.

and the reason and this is going to work sooner or later. president obama is going to send a statement on the violence in egypt. possibly canceling a joint military exercise. and peters joins us now. colonel peters. end of the goal of of the bullet point that they always say? >> i am hoping for once we won't wishy-washy answer. the last thing we need is for the president to take a strong stand, in favor of the muslim brotherhood. i am very concerned because in 4-1/2 years this president, this

administration still hasn't gotten the message that you can't make friends with fanatics. and ask the fundamental question, do they want an admittedly flawed hybrid democracy having a voice, didn't want the sunni muslim version of iran, a radical state? the support this administration has given to the muslim brotherhood has been excessive, naive, counterproductive and terribly dangerous. i don't worry about his intentions but his naivete. charles: for years one of the -- america was the spread of democracy but with a a let the wrong people we should not be for democracy any more? >> i am not saying that. you have to balance the move toward democracy which is on the

whole positive things throughout the world with common sense. we tend to push states, iraq, afghanistan, egypt would premature elections before the civil society and the rule of law is in place. i am in favor of democracy but what happened in egypt? basically a protest putting morsi and the muslim brotherhood in power and breaking of their campaign promises to be inclusive, muslim brothers excluded everyone else. and rushed for 8 surely of moderate and constitution, put journalists in jail, attack christians and the obama administration still supported the morsi government. it is counterproductive. as we speak the muslim brothers across egypt have attacked 2 dozen churches and other christian religious structures, burning them, attacking christians, and i wonder if our president is going to mention

that. charles: we will listen for that. charles: question about the middle east, can democracy work? we have been out of iraq and that place has blown up and the death toll continues to mount and we don't address it that well as the nation. in syria the death toll is north of 100,000 and afghanistan will become an absolute mess. is it practical to believe democracy can be instituted in these countries? >> in the long term there is a chance. in the short term it is messy. when you have the breakdown of all institutions. in the collapse of industries and tremendous dislocations. people are confused and may not have the skills for the job of democracy. it will be a decade-long process, and we recognize we can play constructively on the margins some of the time we

cannot determine the future of the middle east. middle easterners themselves have to but the struggle in egypt going on as we speak. a crisis across the region between multi layered between sunni and shiite on one level and muslims and christians and other minorities on another level, between modernizers and secularists versus those that want to impose medieval regressive version of islam, it will take years to sort this out. we will get a small part in at right, this administration, from quitting iraq to backing the morsi government this administration has gotten profoundly and dangerously wrong. charles: i want to ask if you can hang around and wait for the president to speak on what is happening in egypt. if you don't mind waiting a moment in the meantime you can see the dow on your screen down 200 points, another ugly

session. right out of the gate, there was a tremendous amount of pressure. i want to turn to the company. you have been listening to colonel beaters. it feels like we feel like america has been the world's policeman, we try to promote democracy around world, lost a lot of lives particularly over the last few years. where do we go from here? what did the our foreign policy in the middle east? >> i want to echo what colonel peters said. he has done outstanding work about a prosecution of christians across the middle east that and of the islamist. that is underreported in the west. the concept of democracy, we throw around freely in the u.s. and the west. democracy doesn't just mean people go to the polls and vote for whoever. we think the results of democracy throughout history, hitler was elected, in the gaza strip they elected hamas which is the military wing of a muslim brotherhood. democracy has consequences. it is not just about going to

the polls, it is about building similar institutions that protect the rights of minorities like those questions. liz: muslim brotherhood in egypt could turn into another styria. that is what the muslim brotherhood is saying, we have a news flash coming across the wires, where the president will be speaking shortly. apparently he will be in the driveway of the president's rented house, in front of a podium and a two car garage to the left and you can see a small flower garden and fruit tree behind the podium. i am asking colonel peters what do you think of the setting for the president's statement coming >> i am all for presidents having vacations. i can't imagine a more stressful job. it says a lot about martha's vineyard. i would pick yellowstone national park in yosemite. let's focus on obama's terrible policies, not his choice of vacations. >> you and i have talked about

this. obama's policy from the time he became president in january of 2009 has been to actively seek the rise of the islamists. this is why we saw him early on calling for long-term allies, hosni mubarak to be replaced, depots in egypt, mo mark the doctor was working with us in terms of intelligence, and across north africa and done. in syria, president has not moved on that but we know the brother and ann al qaeda operating on the ground so should a sod fall who will grab power? the president has been actively engaged in encouraging and supporting the islamist across the middle east. >> i don't necessarily believe his heart is with the islamists. i think he is terribly naive and terribly clumsy. this is a president who prior to coming to the white house had no interest in foreign policy of world affairs. despite suppose the international connections no interest in history.

he thought he could walk on water. at least one other person did it in the middle east 2,000 years ago. unfortunately he failed. he came with a bias against israel. the chicago mafia thing, the rev. white, a bias against israel and in favor of basically anybody who could be portrayed as oppressed by the west, oppressed by the united states and colonialism. what you are seeing now is a danger of electing a president solely on domestic issues. this has been a pattern since jfk. democratic presidents come to office with powerful domestic agendas whether you like those agendas or not with strong visions for the domestic scene and they are consumed by foreign policy. jfk obviously the bay of pigs, lbj, vietnam, carter the oil

shocks, afghanistan, clinton, everything from somalia through the uss cole attack and trying to ignore al qaeda. all these guys have in common they were not strong on foreign policy. i know people in both parties wish we could withdraw from the world the lesson that remains from 9/11 is the world comes to us and we need to be engaged and prepared and intelligence about how we engage. >> totally right about that and i agree obama came into office with an anti-israel bias. absolutely true but let me challenge you that he is somehow not leave on the muslim brotherhood and the islamists. remember the speech he gave when he came into office in cairo in 2009 hosni mubarak was in office said the muslim brotherhood was technically outlawed in egypt. president obama himself personally invited members of the but muslim brotherhood to attend that speech. after that point he had dozens of top muslim brotherhood

officials from egypt come to the white house to meet with him and god knows who else. i don't think he is under any illusions. i think he is actively supporting them. charles: colonel peters, let us come back to you when the president speaks and i want you to pick up on it. we will put it on pause because we have to talk about the market. a major drop in the market, the dow lost 197 points, we have been down every single session this week, tremendous amount of pressure. we came in with a lot of anxiety about the economy and corporate earnings and a lot of anxiety about maybe washington could blow this thing making a lot worse. i want to shift to the floor of the stock exchange and go to nicole petallides and get a feel for what is going on. nicole: this is a tough day on wall street. we are down 200 points, we are down 193 points, moments ago down 200 points, 30 dow componeets in the red.

another thing worth noting is the losses we saw 1.5% and we are improving but we haven't seen these moves since mid june back on june 20th when the dow dropped 2%. this is that tough day when you take the moves we have seen as one of the more volatile ones, all 30 dow components to the downside and talked in detail about cisco systems and walmart but you have other names like hewlett-packard, disney, home depot that are big letters on the dow jones industrial and to give you some context we have six weeks of gains, last week was a losing week, we lost 200 points, that was 1.5% and this week as well clocking in as a losing we also. last friday we close to 15,425 so just under 300 points after this week. charles: that is a great point you brought up. the market goes up, the market

goes down, six weeks in a row is a lot. maybe you can help us with a sense that this is normal, overdue or maybe this is ominous about something on the cusp that may be a little worse to the downside. >> over the last month or so many became worrisome about the fall going into the fall and seeing what happens at that point. they seemed pretty confident during earnings season but we are getting less of that now and there is no doubt you remain in trading range and most of the big guys you talked to have targets that are higher. charles: president obama giving a speech on the violence in egypt. listen to this. >> updates about our response to last several days. let me begin by sending back for a moment the relationship between the united states and egypt goes back decades. it is rooted in our respect of egypt as a nation, ancient

center of civilization and a cornerstone for peace in the middle east. it is also rooted in our ties to the egyptian people forged through a longstanding partnership. just over two years ago america was inspired by the egyptian people's desire for change as millions of egyptians took to the streets to defend their dignity and demand a government that was responsive to their aspirations for political freedom and economic opportunity. we said at the time the change would not come quickly or easily but we did all line ourselves with a set of principles, and non-violence, respect for universal rights, and a process for political and economic reform. in doing so we were guided by values but also by interests because we believe nations are more stable and more successful

when they are guided by those principles as well. that is why we are so concerned by recent events. we appreciate the complexity of the situation. mohammad morsi was elected president in a democratic election, his government was not inclusive and did not respect the views of all egyptian. we know that many egyptian, millions of egyptians, perhaps even a majority of egyptians were calling for a change in course and while we do not believe that force is the way to resolve political differences, after the military's intervention several weeks ago.

the united states strongly condemns the steps that have been taken by egypt's interim government and security forces. we de essential to human dignity including the right to peaceful protests and oppose the pursuit of marshal law, and security trumps individual freedom or that might makes right and today, the united states extends its condolences to the families of those killed and those who were wounded. and given the depths of our partnership with egypt, our national security interest in this pivotal part of the world and our belief that engagement can support a transition back to a democratically elected civilian government, we've

sustained our commitment to egypt and its people. while we want to sustain our relationship with egypt, our traditional cooperation cannot continue as usual when civilians are killed in the streets and rights are being rolled back. as a result, this morning we notified the egyptian government that we are canceling our biannual joint military exercise scheduled for next month and i'd ask my team to assess the actions taken by the interim government and further steps that we may take as necessary with respect to the u.s.-egyptian relationship. and we say to the egyptian people, these are better than what we've seen over the last several days, and to the egyptian people, let me say the cycle of violence and escalation needs to stop. and we call on the egyptian authorities to respect the universal rights of the people.

and we call on those who are protesting to do so peacefully, and condemn the attacks that we've seen by protesters, including on churches. we believe that the state of emergency should be lifted, that a process of national reconciliation should begin, that all parties need to have a voice in egypt's future, that the rights of women and religious minorities should be respected and the commitments must be kept and pursuing that path will help egypt meet the democratic aspirations of its people and tourism and national support, they can help deliver opportunity to its citizens. violence on the other hand will only feed the cycle of polarization that isolates egyptians from one another and from the world and that continues the opportunity for egypt to get back on the path

of economic growth. and let me make one final point. america cannot determine the futures of egypt. that's a task for the egyptian people. we don't take sides with any particular party or political figure. i know it's tempting inside of egypt to blame the united states or the west or some other outside actor for what's gone wrong. we've been blamed by supporters of morsi. we've been blamed by the other side as if we are supporters of morsi. that kinn of approach will do nothing to help egyptians achieve the future that they deserve. we want egypt to succeed. we want a peaceful democratic prosperous egypt. that's our interest, but to achieve that, the egyptians are going to have to do the work.

we recognize that change takes time and that a process like this is never guaranteed. there are examples in recent history of countries that are transitioning us out of a military government towards a democratic government and did not always go in a straight line and the process was not always smooth. there are going to be false starts. there will be difficult days. america's democratic journey took us through some mighty struggles to perfect our union, from asia to the americas we know that democratic transitions are measured not in months or years, but sometimes in generations, so in the spirit of mutual interest and mutual respect, i want to be clear that america wants to be a partner in the egyptian people's pursuit of a better future and we are guided by our national interest in this longstanding relationship. but our partnership must

advance the principles that we believe in and that so many egyptians have sacrificed for the last several years no matter what party or faction they belong to. so, america will work with all those in egypt and around the world who support a future of stability who rests on a foundation of justice, peace and dignity. thank you very much. . charles: that was president obama wrapping up his observations on egypt and some of the actions they're going to take and we want to bring back colonel ralph peters. they talked about nonviolence, the process. and what you alluded to, political and economic reforms and explain how difficult it is to make such a transition. were you happy with what you just heard? >> well, given that it's president obama, i thought this was an okay job. canceling bright star, the military exercise, that's a token gesture. the egyptian military will

understand it. they're pretty busy anyway. he did, as sort of a passing footnote mention the violence, but the remarks, he was repeating what secretary of state kerry and others implying that the muslim brotherhood are peaceful protesters. they do not kidnap their opponents and incarcerate them and torture them and capture and kill christians. he didn't say anything about the approximately 50 at least dead policemen killed by the muslim brotherhood. so his remarks don't tilt too far towards the muslim brotherhood-- >> colonel peters, before we left last time, that's the point that monica was making. it feels like the president is trying to please everyone, the military, the muslim briere hood, maybe make everyone feel

good, how do you get foreign policy done if you don't draw a line in the sand somewhere? >> well, my rule for dealing with washington is the same as my rule for dealing with the middle. never blame anything on a conspiracy that can be explained by incompetence. and unfortunately, not just the obama administration, but before that, the adminnstrations of george w. bush pandered to the worst voices in american islam and global islam. look who bush and obama invited to the white house. they weren't true moderate muslims. they were from care and other radical organizations. and imagine, and a bipartisan problem in washington, although they're worse on it, imagine by just being nice to religious fanatics, somehow they'll get to like us. i mean, it was nailed in a 2001, in a new yorker cartoon,

hollywood hills, slogan, smoking cigars with bikini clad girls in their hot tubs and if they got to like, got to know us, i think they'd like us. no, they believe they're on a mission from god to subdue and kill us and i certainly agree with monica on that. >> did you agree with any point, the president being pretty tough saying that egypt and the muslim brotherhood and other actors and players in the middle east have to stop pointing to america as being at fault for everything that's going wrong with their own country, stop the scapegoating, stop the finger pointing. >> that was a wise remark. i don't want to split hairs, but i didn't like the wording of it. it should have been more articulate. his point is right. in the middle east these are cultures are blame. and when the plumbing doesn't work, you blame the cia. >> colonel peters, real quick, only have 30 seconds, handicap what happens next over in

egypt, if you can. >> civil strife, not civil war, and the security services are going to be able to contain this, but it's going to be ugly and the key is the egyptian economy, and nobody can fix that in the storm. charles: colonel, appreciate the insight you gave us this morning. >> thank you. charles: we have much more coming up on "varney & company." the market is selling off and we're going to be following up on that. and all show we've had this 3-d printer cranking out something and we'll reveal the something and we'll talk to one of the industry's biggest players next. make it happen with the all-new

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>> all right. we've got a big selloff. the dow off 209 points and all 30 dow stocks are in the red. a huge selloff, the biggest decline in two months. cisco and wal-mart are the two biggest losers on the dow as we

continue to move lower. we have been talking about this for months on "varney & company" and today, we have a 3-d printing machine on the set, get ready for it. and alicia from 3-d systems is here and this is the q printer? >> yes. charles: i can buy it for the house? >> today, it's available in select stores around the country. charles: we started printing this, everyone can see now it's a rook. it's amazing. can i pick it up. >> sure. charles: we started printing this an hour, less than two hours ago and in that period of time, by the way, guys, great detail. you can see it's a castle, it's the detailing is amazing. this is a great chest piece. take a look at this, this is a fantastic chest piece and if you look up close, it's something you would go in the store and buy in the box. >> absolutely. you can make it at home. charles: what's it made out of-- >> we put in the plastics at

home, that's a compostable. >> and do you have some control over the material? is it sort of gillet, you sell the razor and the blade model? >> we have the cartridges, the material preserves it and makes the printer extremely easy to use. >> what's the demand so far? i've recommended your stock to a lot of people and i think one guy that sets it at 40 and wonders why it's not 50. >> it's an impressive period of growth and it's continued to access the printers and it's low end printers up to the industrial end. charles: how do you sell this to someone at home? i love this thing, i'm not sure i would wait for the chess set to be printed out. how do you get me to buy this?

>> the magic is seeing something that you customize and a part of creating and see it come to life. >> look at this, monica. how cool is this thing? took less than two hours to print it up and here is the thing, we're talking about this just being the beginning of 3-d printing. is the sky the limit? i've read where is the some point. airplanes, 747's could be printed out of a printed. >> we do print airplanes and car parts, down to patient specific medical care like custom implants and retainers, powered by 3-d printing. so, yeah, the complexity with 3-d printing, the printer doesn't care how complex, less material and energy. >> this is more than gee-whiz. this is the future and should be getting a lot more coverage in this country. this is revolutionary. thank you for your time.

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>> coming up on lou dobbs tonight 7:00 eastern. the clinton foundation under fire from the left wing media as hillary gears up for another presidential run. and best seller of "the amateur" ed klein tonight at 7:00 eastern. charles: well, you always hear people say, i wish i could get wish so i could stop working. well, you know what? those who become wealthy don't quit, they keep working. that's why they're rich. how rich? and steve, i've got to tell you, we talked about this in a morning meeting and everyone believes, okay, chill out at the beach and they have a

passion for what they do and never want to give that up. >> absolutely. they love what they do and the self-made rich, and that's what you do and sticking to it and getting rich. who wants to leave that and play golf, you know? >> well, i don't want to talk about golf right now, monica is sitting here and may be upset and some people are playing golf right now. and back to the point that the job can bring that sort of excitement or a career could bring that sort of, you know, i don't know, it's interesting because when i tell people i work a lot. they feel sorry for me and yet in the last 25 years i haven't looked at the clock. i don't care about 5:00, i'm not waiting for the last ten minutes to go by and in so many ways i feel sorry for them. and isn't that the larger narrative, people should seek out where they don't rush home or want to. >> absolutely. business is the most exciting in life. the rich don't retire, they

die. and i think that makes a lot of sense, they're loving what they do and if they stop working, all the excitement goes away. how long can you sit on a beach or play golf or tennis or sit around? it gets old fast. charles: the other side of this would be the people saying, these rich guys and gals should move out of the way to create opportunities for others, crowding up the space and made it big time already and move out of the way so somebody else can get a piece of the action. >> it's competition, this is america. you know, welcome to competition, welcome to the free market. they should get there and compete and if they can knock them out. knock them out. it's what built the country. >> and what do you think, also one of narratives we hear, throughout the recession only the rich have gotten richer, it's election season in new york and i hear on the radio campaigns, in new york city only the rich have gotten richer. listen, doesn't it stand to reason if you were smart enough to become a millionaire in the

first place you'd be smart enough to make it grow? >> absolutely. the rich have people managing their money and the advantage is that most people don't have, but everyone in this country has a chance to be rich and i've interviewed, as you know, over 1200 millionaires around the world and most of them are no smarter than the rest of us and we all have the same opportunity if we go after it. >> there's no lifetime membership in the rich club. they fall out of the bracket and why they have to work. >> how many of these people are working because they're scared they might lose their wealth. >> that's true, there's some of that as well, but i think the most successful of them, you know, they approach money and work and business through the eyes of abundance and see opportunity and excitement and the positive things and figured out the secret to a happy life. >> i agree with you a thousand percent. thank you for spending time with us, see you soon. steve. >> thanks, charles. >> all right, guys, a big selloff right now. the crisis in egypt. we will have an update for you

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>> we have two very big stories today, the selloff in the market and the president responding to the violence in egypt. liz: improving jobless claims, cutting back on tapering that has the 10-year note moving higher. it is up over 100 basis points since may. charles: what do you think, a downside bias for a while? liz: the meeting coming up in two weeks will be key to the market reaction. we will have a rocky market going through september. charles: the tapering will be tapered somewhat. the president spoke, you are taking notes, what do you think?

liz: a joint operation with egyptian military.symbolic moveg deal. i would have liked to hear him talk about the violence instigated by the muslim brotherhood. this not all on the shoulders of the egyptian military. they have been a long-standing ally of the united states. that was a big void in his speech. charles: the kind of stuff we had the president talk about all the time. they will review this process. what will make the president change his mind? >> to stop sending it, the military is able to control the situation, they relax their violence and pullback, the president would take another

look at those but his sympathies are with the muslim brotherhood. charles: i will put it in your hands now. dagen: good to see you. the decile in egypt climbs to more than 500 in one of the deadliest days that country has seen in years. president obama calling for calm. trending downward, not just the market, but the president's approval rating on the economy flipping to 35% last month. seven percentage points lower than june. detroit emergency manager apologizing after calling some of the city residents those names. and the nfl hit with another concussion lawsuit. 83 former players led by pro-bowlers. they say they are suffering long-term effects from brain injuries sustained during their playing