♪ ♪ imus in the morning >> the bears are out in force and they are feeling strong. good morning, everyone, i'm charles payne. stuart's going to be back next week, but for today. here is the big story. the market's going to open a little higher in a few minutes, but back to back triple-digit losses have the bears roaring. how bad will it get? that's what we'll ask the bears we've got coming on the show today. and precious metals, a lot of gold and silver, but we can't forget about obama care, now we

know how much it will cost taxpayers for the so-called navigators who will help to fill out. and from wall street to washington, and "varney & company" is all over it next. s to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward he's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back onvery purchase every day. what's in your wallet? [ crows ] now where's the snooze button? folks have suffered from frequent heartburn. butetting heartburn and then treating day after day is a thing of the past. block the acid with prilosec otc, and don't get heartburn in the first place. [ male announcer ] one pill each morning 24 hours. zero heartburn.

>> the latest out of egypt. at least 638 people are dead. more than 4,000 have been injured. and the muslim brotherhood is calling for a friday of anger to challenge the military government's curfew and state of emergency. we're watching developments out in cairo closely and we're going to bring you updates as they come in and later this hour, we have a man who's made a lot of money investing in iraq. is he willing to buy or sell egypt right now? you'll find out at 9:45. in a lot of headlines they're blaming tapering fears for driving the markets lower, we've had back to back triple-digit losses, on worries

that ben bernanke will stop print. there's no evidence that he will. and last night the empire state survey, 35% say they're going to cut jobs. if that's the case, how can ben stop printing? only 22% say they're going to add jobs in the same time period. we have a parade of bears and ask how long this market can go. it's an admission of failure and maybe that the fed is irrelevant? we've got a big day for you. we're all over the markets for you, the opening bell is minutes away, but first, you've got to check this out. a chinese zoo trying to pass off gauze as exotic animals. the zoo couldn't afford real animals and filled instead with dogs instead. and reported that one child asked her mother, why is the lion barking?

i can deal with fake cities, but fake dogs? my mantra? trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levelso normal in about 2 weeks in most men. axiron inot for use in women or anyone younger than 18 or men with prostate or breast cancer.

women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or paful breasts; problems breathi while sleeping; and blood clots in the legs. common se effects include skin redness or irritation where applied, increased blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron.

♪ tell me why do you have to make things so complicated♪ >> well, if you look at the numbers, ben won't stop printing anytime soon, but a lot of buzz about the market

selloff. >> it's all about tapering fears. we're going to talk about this all morning long. right now a minute away from the opening bell. joining the company from chicago, scott shelldy. what do you hear about tapering? is that the main thing fueling the selloff? >> i think that's the main thing, but i think a lot of economists are stuck on their own exhaust. if you listen about data dependence. 6.5 and 2% inflation rate. we're nowhere near the levels. and look what the fed said and bowler said the other day, we're not near tapering, but everybody is up about how we have to get the tapering on the board. we have quantitative easing to spur on growth. 85 billion a month, charles, 1, 1 1/2 gdp. who is fooling here? we've got more sequester cuts down the line and obama care in january. we're going to change the fed

president. you tell me where this is coming from. charles: i'm happy you said that. my theory is, if the fed does taper, it admits the policies don't work anymore and for a lot of people on wall street, an admission that the fed doesn't work is catastrophic. >> you're right. they're making a decision on policy and not academic health and that would be totally off the wall. charles: have a good weekend. there's a zoo in china that would like to have you and your jacket on display. they had a fake lion. i don't know what you're doing this weekend, don't disappear on us. >> he zoo you monday. charles: the opening bell iss starting to ring. dow down 22 points, a lackluster start, but that's par for the course. and we want to start with two stocks that dragged the market down. wal-mart and cisco. two big stocks that were down yesterday, nicole.

>> let's take a look here, here is wal-mart, which is down just under 1/2 of 1%. yesterday, wal-mart fell 2 1/2%. so it's worth taking a look at now. unfortunately, worried so much about people and customers who have higher payroll taxes plus customer traffic and there's a look at the dow component. dropped 2.6% yesterday and is down again today. cisco systems yesterday dropped 7% and many thought that was a knee jerk reaction because the company did in fact have a 18% jump in profit. they are laying off 4,000 workers, that's about 5% of the global work force, so, you can see here that cisco systems is up 1/4 of 1%. so, that's worth taking a look at as well. overall, obviously, two dow components with a mix and the dow is down again. it's a tough week on wall street, charles, as you know. charles: real quick now i have

two big names that you know, nordstroms and another that lowered profits for the full year, and of course, we like to keep an eye on apple. staying around the $500 mark. the only ray of light this week. speaking of apple, the new steve jobs biopic is out in theaters tonight. the critics are not so hot on it. we'll ask one of steve job's closest friends what he thinks of the film and both sides of a debate who claim that he has on their side. and suntrust raised a target to 54 from 44 and a buy on the stock. nicole? . nicole: it was looking like game stop was going to have an up arrow. quickly, i don't know whether it's ticked up for a second, but it's already in negative territory.

928, 30, don't know whether people quickly sold it off. game stop was put on death watch, but year to date up 90%. charles: and chelsea group said it was a $58 stock because of the new console so they're bucking our trend. by the i with a, blackberry, the ceo is in for 55 million dollar pay day if they can sell the company and nicole, something of an incentive to sell the company. how are the shares? >> 10.88. it's down 3/4 of 1%. and it stands to make 55.6 million dollars if the company is sold and he is out. so, that's one interesting aspect. it's interesting, remember, he's had no interest in selling the company and suddenly now may be open to it. blackberry, according to pacific crest, they don't think it's going to sell for more than $10 a share. they think lower here. blackberry unlikely to be sold for more than $10 a share and

keep it at an underperform rating. keep an eye on blackberry. >> i'm not one of the occupy wall street, but for a guy that's just on board. 55 million. can't say that for the rest of the shareholders. >> i want to get back to the big story. chris, you say that the corporate profits, you're looking at them and weaker and it's going to send the markets much lower, right? >> that's right, charles. you know, i looked at the top earnings for the second quarter and we only had earnings growth of about 2%. and if you back out the financials, earnings fell 3%, so that's the underlying trouble here, a large part of the market that are struggling to show any growth. >> you know, some people say though that the market, at least traditionally, us used to be a harbinger of things to come. a reflection of the next six months down the road. earnings weren't so good, but

you're not buying that argument, are you? that's an interesting thing, companies that give guidance, most of them guided lower, so those estimates going forward are already starting to come down and they're probably still too optimistic. so, i would expect that we might actually see a decline in the next quarter and certainly, i think we'll continue to see the numbers come down a bit. >> and chris, i want to shift gears, you have to ask, i say that the fed, if they do taper without any significant change in the economy, in a way they're saying our policies don't work gentleman en-- anymore. we've tried to be accommodative and inventive, but it's not worth it anymore. do you agree with me on this? >> yeah, i would agree with you. at some point their hand is going to be ffrced because they can only buy so much before they own all of the market and so, i think at some point, that tapering has to end whether they want to or not.

and they have other tools to use and they've hinted at that. perhaps we'll see a new operation switch or a newfangled way to get the market going. >> and it's going to be confusing. untwisting it. you're looking for the market to go down. listen, we've had a huge move and evee a 10% correction will be reasonable and will is be worse than that? >> i'm looking at 15% correction will be great and i think that could be a good place to start buying. so, again, i think it really comes down to those earnings. you just have to focus on those individual companies and earnings and see what areas look good. there's a wide variety in the market, right now the financials are doing very well. mining is doing awful. so within the market, there are places that i would focus on. >> right, so, still a stock picker's market and don't panic, be ready to buy when there's more blood in the street. we'll talk to you soon. >> thanks again.

>> all right, guys, we want to check up on silver and gold. and see them on your screen. both have an amazing week and silver spiking in fact. and the question, is now the time to buy metals? a lot of people wonder, of course, you guys love it. editor and survivor, prosper newsletter harry dent joins us now. you're legendary for making extraordinarily bold calls and some say that buying gold and silver is a bold call? >> we've been warning that gold and silver are in a bubble and they're inflation hedges and all of the fed stimulus is to stop from having deflation and they're getting a little deflation and the death knoll in the second quarter for gold and silver when we got inflation fall from 2% to 1% despite aggressive qe 3 and off the rester have an i gos --

reservation in japan. and when our economy slows again, it will, the stimulus will not work forever. it's already having less and less effect. gold and silver are going to go down. right now 1340 was a big level to break. the next resistance. and they tend to go up in anticipation of a financial crisis, but when the financial crisis hits like in 2008. gold was down. and silver was down and guess what? the u.s. dollar was up 27%. the opposite of what the gold bugs would have thought. >> so you would think then if this is 2008 we're not just looking at a domestic meltdown. you're looking for a global economic meltdown as well? >> we triggered it with my subprime crisis. we were stretched with the highest debt ratios in history. real estate bubbles everywhere

and demographics, that's my specialty. we've been saying baby boomers were peaking and spending at different times and slowing their spending and head towards retirement and economies were slow. all of this stimulus is fighting this demograph ic slide. they're killing the golden goose of pre market capitalism so we don't suffer pain. we're going to get the pain anyway and i think it's going to hit next year and i think that stocks are going to crash next year after going higher down the road and ultimately gold and silver are going to crash as well. so let's talk about that, because crash is a four letter word in the stock market. and how much of a crash are you looking at? what's the worst case scenario? >> worst case, well, first of all, i call it a meg aphone pattern if you look at the dow jones, every high, 2007, late 2013 has gone higher and every

crash-- >> i know, but give me, on the down side, the viewers are like, you've got them at the edge of their seats and talking about a crash and we've got to wrap up the piece because we've got to move on. i need numbers, where is dow going to be and s&p and gold going to be. >> dow 16,000 roughly by january and crash in the next few years down to 5800 to 6,000. gold is probably going up to about 1525 and then crash down to at least 700, 740 and the s&p is going to 1740 and go to about 5 to 600. charles: thank you very much. listen, again, we listen to you you've got a great track record. on this case i hope you're wrong. we'll talk to you again soon. all right, guys, now i have the 7 early movers for you, you know, green mountain got to start with them. now part of the nasdaq 100, that's an elite club of stocks and a lot of money managers are obligated to buy it. sort of a stamp of approval for

the company. and xilinx, a boost because of low inventory and the closest competitor. rand gold resources. and here is an interesting one, missed the street in the last four quarters and gold miners are looking good here, and you heard harry dent and a lot of people think there's a bounce in the stock as well. and eight householdings, a huge months for chinese stocks on u.s. exchanges. this was a housing play in china. up big, but 23 two years ago. technology reported after the bell last night. 24 cents. the street was looking for eight cents and it's up double digits. and therapeutics, last week beat the street. and now a lot of excitement about a new drug application to treat a storm of muscular

that's absolutely huge. let's shift back to the markets and look at the big board. somewhat lackluster, but this is the pattern. lackluster, but as the day goes on it's exciting and that's why we tell you to buckle up. a man who made money investing in iraq. he's a bull in iraq and he's going to tell us now is the time to buy or sell and would you invest? find out. that's next. clients are always learning g me to make their money do more.

(ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." ask me what it's like to get your best night's sleep every night. [announcer] why not talk to someone who's sleeping on the most highly recommended d in america? ask me about my tempur-pedic. ask me how fast i fall asleep. ask me about staying asleep. [announcer] tempur-pedic owners are more satisfied than owners of any traditional mattress brand. tempur-pedic. the most highly recommended bed in america. now each of you can personalize your comfort at the touch of a button with our new tempur-choice. so both of you can get your best night's sleep together.

we replaced people with a machine.r, what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn'let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.

bounce is great because the freshness lasts for weeks in the drawer. why can't everything stay fresh that long? [ ma announcer ] how do you get your bounce? [ man ] lasting freshness.

>> our version of as the world turns. the latest chapter in the dell saga. icahn will ask the court to fast track his lawsuit against dell, and do you use paypal to buy on-line? how would you like to use facebook instead? the social network is looking at a paypal-like service, up for the session, 37.14. tensions in egypt are rising and hundreds have been killed and more violence expected today. thousands have been injured, also, in the recent fighting. despite all of that chaos, are there opportunities to invest in egypt? a founder bartel, are you putting some of those winnings into egypt? >> well, charles, i think it's a little early on that.

i was brought up on the notion almost 20 years ago when i entered the emerging markets business, buy when the blood is in the streets. the blood is-- >> so 638 deaths is an appetizer with respect to blood in the middle east? >> well, i think certainly in the case of egypt, it's far too early. the egyptian stock market is up 26, over 26% in the last 12 months. even up 10% in the six weeks since the army replaced the elected muslim brotherhood government six years ago, so, really, you know, the price action isn't that exciting. egyptian equities haven't had great weakness, apart from buying students. >> and bartel wines, it's like 260 billion dollars. why has the market been so resolved in the face of the chaos there? >> i think one reason, charles, there's significant capital controls in egypt.

there aren't many places for people to take-- put their money. it's not easy to get your money out of the country. so to an extent these markets are artificially buoyed by that. and i think, frankly, in terms of the fundamentals, there's a lot more bad news to come. we know how difficult things are, i think that it could easily get worse and perhaps the markets are underestimating that. >> all right. i tell you that, we'd like to have you back when you start to nibble and then share some names, it's an interesting concept and you've been successful at it. thanks for that. >> thank you. >> time now for your morning gold report. remember, yesterday, gold was sort of side ways and toward the end of the session, exploded to the upside and it's picking up on momentum today. and a lot of people saying this is the big move. up next, jesse jackson, jr. has gone to jail, but eligible for monthly disability checks and wait until you hear how much

he's going to be getting next. ♪ right now, 7 years of music is being streamed.

a quarter million tweeters are tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's te to build a better enterprise. together.

>> former illinois congressman jesse jackson, jr. was sentenced and two and a half years in prison for misuse of campaign funds, but get this, we still have to pay him. that's right, he's still eligible for disability payments, $8700 per month and on top of that could get part of the federal pension, $45,000 once he turns 65. liz, i mean, it's a lot of money. >> this is classic washington d.c. math. it's all addition, no subtraction, he's going to get there, wait for it, nearly $150,000 for his corruption and will have to give two elk heads and michael jackson guitar. >> people talk about wasted moan and there's something wrong, fundamentally wrong and i wanted to start out the segment saying he's making out like a bandit. and in this case, crime in some way did pay. >> and the same argument about

the fat cat ceos during the scandals, getting their insurance paid for, their liabilities paid for. this is the same, crony capitalism. >> we get caught holding the bag. new at ten, one of steve jobs closest friends, apple's earliest employees, and which side, the left, the right, has more of a legitimate claim to job's legacy. you didn't think we could go a day without finding something about obama care. next, the outrageous costs of the so-called navigators and by the way, you and i are paying for it. make ihappen with the all-new

fidelity active trader pro. it's one more innovative reason seriouinvestors are choosing fidelity. get 200 free trades when you start using active trader pro today. bjorn earns unlimited rewas for his small business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake up call. [ male announcer ] get the spark business card

from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? folks have suffered from frequent heartburn. but getting heartburn and then treating day after day is a thing of the past. block the acid with prilosec otc, and don't get heartburn in the first place. [ male announcer ] one pill each morning. 24 hours. zero heartburn.

$67 million for obamacare navigators'. that is what you are paying for people to navigate the health-care law. we have the man who turns businesses around with a plan for the c penney and blackberry. you remember the passionate speech on steve jobs and artwork to teenagers. we have been listening, the question is have they? one of steve jobs's closest friends joins us to talk about the new movie that is out today. does the left or right at more legitimate claims to steve jobs? we will ask. and one of the leading voices for banks loves big point. and he is here as well. get ready for another jam packed

our. ♪ charles: wall street somewhat worried ben bernanke will stop printing but really can he do it? i want you to look at this. i dug into numbers from the empire state's eric, 35% of manufacturers say they will probably reduce, cut jobs in the second half of the year. that is not a case for ben bernanke stopping printing, only 22% say they will add jobs in the same time frame. liz: you are absolutely right. this is in line with the saudi u.s. economy. the numbers you did the work on a worse than where we were in july of 2009 at the heart of a crisis. what we are seeing is again saudi recovery but foreign manufacturers coming here instead because of the weak dollar, building plants here and reporting profits in their home country at high gear levels with the exchange rate. charles: takes awhile for a

foreign company to find the right tax rate and sullen but the idea -- every year manufacturers say we will hire more people in the second half of the year. the president promised manufacturing would turn the economy around. for that number i don't see how ben bernanke could take a victory lap. liz: manufacturing jobs they-service level jobs. this economy is seriously restructuring away from manufacturing. charles: i don't think ben can do it. i have a big bear coming up in a moment, his target for the dow. liz: charles: liz claman and david asman will talk to richard fisher. you are not going to want to miss that. extremely important, the fed making all the news and check the price of gold, cute speights yesterday. we will check on that again, up $5.50 and i want to get to

nicole petallides, gold stocks are up this week. nicole: we talk about what a tough week we have on wall street, the second losing week on wall street ahead this week for the dow which is down over 2%, the worse point drop we have seen in two months bucking the trend, gold stocks, mining, we have seen them running out, you see the little lower today but it is 11%, gold up 13%. i talked to some of the traders and asked why we saw the run up and they talked about the correlation in part to treasury yields and treasury yields on a rise and gold rising as well couples with the fact that they were beaten down and had some upside potential so you do see some pulling back a little bit today but i didn't do the low one week chart on freeport mcnamara.

there was a little back and forth but looking at the whole group overall, gold today ran yesterday running again today about $9 so that is what we have been looking at. charles: appreciate it. i want to bring in dan shaffer. here is a 1-year chart of the dow, you see has been going, you say we are at a pivotal point, historic point and the mark on the verge of a major crash. >> technically. measurements of the 2008 high to 2013, symmetrically ended on august 8th and this is the pivot point based on the concept that the market is ready to take its role over which could last until 2015. charles: a two year bear market, one of these things where the snowball that becomes the boulder does it get worse as we go on or do we get a sharp decline? >> we get a sharp decline. it is clear we will get a sharp

based on the analysis. we at the top in 2000 and the same in 2008, the same pattern in 2008 that we have right now which does precipitate, we saw yesterday what can happen. the fireworks are about to begin and it is going to last quite a while. charles: historically this pattern, how often has it happened and how often is it right? >> based on the measurements in the market is right a lot of the times but all different time frames. this is a long-term tea i have measured out. it is long-term and at that point when it t loses energy because it is based on the mcclellan oscillator, technical that energy in the market -- charles: your work is singing sell sell sell. >> you could bet them, i want to get a chart and talk about your target because ultimately we are

above 15,100 for that market, you're a target for the dow, 5,000 by mid 2015, 5,000. that is chaos. we at talking the united states treasury. >> it happened in 1973-1974. the market made a new high. charles: going to be a problem. >> the same pattern in the megaphone pattern. is clear on long-term charts, stronger than short-term charts and it is clear that this is the direction this is going to head. charles: dan shaffer, 5,000 on the dollar. for now, we have a winner in the market for you. you need when right now, jetblue. tell us what is going on. nicole: jetblue is up 4%, transportation index doing very well today but what is interesting about jetblue, we all of the tvs of the style do. let's talk about a couple

headlines. the first is the analyst calls that we are seeing, raymond james raising them to market from underperform, you to date jetblue is a winner of 13% and the headlines that have been crossing over the last 24 hours is that kind up with british airways and having connection network so you are talking areas such as newark, jfk, logan airport, orlando international airport, washington d.c. dollars and you will be able to fly to london, london heathrow, etc.. this is a big-time agreement and you have the analysts who are miking that and talking about president james, particularly saying they should come out a winner. back to you. charles: appreciate it. remember those navigator's been hired to help people? uninsured americans 4 obamacare. the, the health and human services awarded 100 organizations $67 million to help these navigators sign people up for the health-care

law. republican strategist joins us, sixty-seven million sounds like a lot of money. >> it is pretty bad. democrats unthinking we are in the trillions, what is the problem, these navigators, what they doing? sending them to school, putting them to bed? whether these people really doing? charles: from what i read apparently they will go out and pretty simple, you have a platinum, gold, silver and bronze plan and bias away while i am here you should register to vote. seems like 0 trojan horse really more often anything else. >> who are these groups being called navigator is? they are so disparate and far-flung, all sorts of nonprofits. i am not sure consumers will lead to sign up for health insurance to the extent on these navigators and at the same time the federal trade commission is saying wait a second, there's a consumer privacy issue here,

personal information could be out there for the world to see possibly through the navigator is. >> it is a way -- they know there will be people talking about obamacare. it is unpopular. let's get as many people on the government dole as we can to make sure we can offset -- liz: richard trumka wants to unionize nonprofits, all sorts of groups because member should is down. we already have a company doing this work and they think they've finally won a contract to do this work. it is an internet exchange that can help you sign up. the free-market is the problem. charles: the 2000 page bill and every day the rules change and someone from planned parenthood have a lot of contracts, they're not going to know the nitty gritty of this stuff. there has to be an ulterior motive for picking these people. the money is an ulterior motive too. the pay is not bad. >> government workers getting paid a lot of money for doing

exactly zero, people getting this done, this is another mayor to pull people into the obama train to make sure they get the bucks. liz: the federal trade commission is giving serious warnings that people out there in the united states could be subject to serious financial harm because of fraud in this system. charles: we will see what happens. supervisors get $48 an hour. not bad to be a navigator. ashton kutchersurprising everyone with an inspiring speech on the value of hard work at the teen choice award but did the message on deaf ears. we will ask a democrat next. >> i never had a job in my life i was better at. i was always just lucky to have a job and every job i had was a stepping stone to my next job and i never quit my job until i had my next job.

charles: time to try to make some money. look at polk brothers. housing stocks were big yesterday and there again today and the number that came out, housing permits were up but just

for apartments. consumer family homes were down, supply could still be an issue and as far as the fed is concerned people who buy homes from toll brothers, an end holmes, the stock oversold my mind and -- ashton culture's words were inspiring, he's telling teenagers you got to go out and work hard and it went viral. take a listen to this. >> i believe opportunity looks a lot like artwork. when i was 13, my first job with my dad, i got a job at a restaurant and i got a job in a grocery store delhi and i got a job that factory and all i never had a job in my life that i was better than. i was always lucky to have a job and every job i had was the second stone to my next job and i never quit my job until i had

my next job. charles: not your typical message from celebrities and not the message we hear from the president either, which message of the youth of america listening to. let's listen to one of them, richard fowler joins us now. i thought was going to see you in a big half but wrong one. that was a very inspiration lasorda of message that parents have been giving to their kids from the beginning of time. do you think it is resonating with the use of today? >> i do. i think we continue to serve the same mantra, work hard and get good grades and go to college and become part of the middle class which is why you have an overwhelming young people -- charles: let me jump in. your parents sat you down and said we want you to be part of the middle class? they didn't tell you to reach for the sky and reach for the mission? >> i agree, i think you are right that parents ask us to

reach for the sky and do what we can understanding that is how we create a middle-class 3 years and years and years. sadly what young people are dealing with now is the burden of student loan debt at $1 trillion it is hard to be part of the middle class or even be part of the 1% because we are burdened with the dead and can't pursue the american dream. charles: no doubt that is an issue but it would not be an issue if there were jobs and a vibrant economy. on one hand there is that and there's another thing. i got to tell you you go back to the great depression you would be shocked, is the amazing company word and cobbled together in a tiger, people who had nothing severe will start a company. where is that part of the american youth? i will pull myself up by the bootstraps the matter what i've settled with? >> you see that every day across the country, young people saying we will create business and do the right thing. sadly because of student loan debt crisis air force to take jobs just to pay their student

loan debt balance instead of trying to create innovative companies and new ideas and that is the problem we are faced with. liz: i appreciate what you are saying and there's a culture of victimization out here, poor pitiful me, i need help from the government. what was striking about the speech is if you watch it again, teenage girls in the audience were cheering him when he was saying working is sexy, being smart is sexy, trying to get a job when you are still working, don't quit your job until you get another job is a great move. what do you make of that? the reaction was so positive that the same time the hollywood establishment is saying this was a weird speech he gave. >> the hollywood establishment is wrong. he spoke to the millennial generation and young people across the country. the idea if you fight hard and work hard you really can pursue the american dream and that

exactly, resonates with young people and you see each and every day across the country, you see record numbers of folks joining -- teach for america, the peace corps and creating small businesses whether it be a tanning salon in a local town or local city and finding consulting firms. charles: the last was a pat on the back. but thanks for being on the show and we will have you back to discuss this further. you kept dropping that middle class thing, the only thing the bothered me. the other than that i enjoyed u.s. polk we have d-backs in. we will talk to use in. the virtual currency and a big goal have in common, dick bove one of the leading voices in the banking industry will tell us why he loves big coin, why? next. [ male announcer ] imagine this cute blob is metamucil.

and this park is the inside of your body. see, the special psyllium fir in metamucil actually gels to trap some carbs to help maintain healthy blood sugar levels. metamucil. 3 amazing benefi in 1 super fiber.

charles: time for a check of the

market. we were up a little bit. you get the sense it will heat up as the day goes on. attention shoppers, you are not hitting stores like you used to. nordstrom is r lowering itself and profit forecast for the full year, taking a pretty good hit. housing starts were up less than expected. and a talk yesterday. >> interesting story in housing. stocks doing very well. they are all looking good. j. b. holmes up 3%, the reporting a mixed picture and you have the multifamily homes seeing the boost, single-family homes are not, they are the ones that tell the true story. you are seeing apartment buildings on the rise, monthly family homes including

apartments where 26%, single-family units declined 2.2%. we need to know the true picture of what the housing story is that overall home construction has risen two of the last three months. charles: we have taken a hit so good relief rally. charles: warren buffett's right hand man called poison on the air but let's bring in dick bove, you have got to be kidding me. >> an interesting period where the dollar is losing its position, local currency and other currencies started to compete to take its place and obviously the chinese, doing the best job of moving into the dollar space but there seems to be a need on a series of constituencies for a new

currency which is stable, but we are experimenting, we're seeing new technologies to create this currency, and whether it is another currency, whether it is another crypto currency, it will be a major part of the global system. charles: we have a chart that is more volatile than green mountain and other highly shorted stocks and that is the point. a lot of people don't think this is it. i would suspect it is interesting because the pros are the same as the cons. no central bank or government behind it and people who love it say that is why you buy and those who don't say that is why you don't buy it. where is the argument? what is the right argument here? >> the right argument is the user of a currency needs to feel the currency is stable, that is

extraordinarily important and good points have not been stable and number 2, they must feel there's a limited number of that currency available, you can't have a central bank jumping the number of big coins, jumping the amount of currency whenever faq's for political reasons the fantasy and basically the dollar is losing ground in that regard. we are printing it like crazy, numbers and 2 we are attacking the banking system which is supposed to support it by demanding that the banks be broken up for too big to fail go away and number 3, politically we are driving certain things out of the financial system, iran can't get dollars and if it does get dollars the united states will freeze them wherever it sees them. it is hitting countries like argentina and the drug dealers who need something to operate

in. liz: you make such an interesting case that central banks are manipulating these fiat currencies and the status as a reserve currency may be in jeopardy because countries are favoring other currencies. when do you see a mass market place, when do you see it being accepted? it is not ready for prime time. >> and jeffrey miller wrote this book which is technology as opposed to monetary people and what he indicates is earlier doctors get into all sorts of problems as they try these new technologies. there have been blown ups in the software. it has been hacked at the exchange level, act in individual accounts of clearly is not ready, if you are such

for a new currency but over time, but lots of currencies like this coming on stream, and yesterday i got a call from technology company who claims there are better algorithms and better systems and they can create a better currency. as i say we are not there yet. we will get there and we will have crypto currencies and there will be a lot of them. charles: i haven't jumped on the bandwagon yet but there is a place for this and americans better not be used to the dollar for much longer. everybody else wants a piece of the action. with your stamp of approval forget it. have a great week, talk to you again soon. afton's biopic steve jobs out in pictures but does it get to the heart of a guy who founded apple and what he was like?

one of jobs at closest friends will weigh in on that next. when we made our commitment to the gulf, bp had two big goals:

help the gulf recover and learn from what happened

so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been strger. a quarter million tweeters is beare tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's time to build a better enterprise. together. ♪

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 using active trader pro today. i'm, like, totally not down with change. but i had to change to bounce dryer bars. one bar freshens more loads than these two bottles. i am so gonna tell everyone. [ male announcer ] how do you get your bounce? [ woman ] time for change!

>> well, if you didn't believe it can happen again, it did. you remember omar? he was kicked out of dubai months ago because he was considered too beautiful. now, she's feeling the heat and disqualified for a city council position in iran because she was too attractive. this was after she was elected. they said they don't want a catwalk model on the council. >> she's not a catwalk model. get a grip on themselves, the reason their economies are so bad don't allow half of the population to be who they are in the work force and that's women. they would be exploding economies if they would unleash and unlock the potential there. they need a grip over there. >> i'm glad you said that. so what they're saying, they can't control themselves. they sound like the mayor of san diego or something, around a beautiful woman we can't get anything done. >> this is why iran is set for

due in the future for serious turmoil. because you know what? people are waking up and saying, these basically trogladytes are holding it back. >> and in saudi arabia, i don't know whether women can drive. >> listen, there has been a lot of that. of course the arab spring, it's slow, but when change comes, it comes rapidly and overnight as we've seen in some of these countries. >> absolutely, thanks a lot. take a look at apple. >> it's trading above, and it's in an up and down market. up 10% for the week, looking pretty good there. having no impact on the stock is ashton kutcher's steve jobs biopic. take a look at this. >> what are you working on. >> computer terminals that hook up to tv's for display. >> steve.

>> so far reviews have been lackluster, but does the film accurately portray the legendary man. >> and dan was there from the beginning, you saw what happened and now you've had a chance to see the movie. how are you feeling about it? >> we all enjoyed it. i think ashton did a great job. the early scripts were difficult to read, but they cleaned it up a lot. >> you feel then like this is somewhat of an accurate portrayal of what went down? >> i think, it was not a-- they tried to make it historically accurate. they did a pretty good job. it was emotionally accurate. >> you were employee number 12, the angst, and infighting, that kind of stuff?

>> yes, you know, i think if you look at the scene with all of the people working in the garage, well, that's not really true. there weren't a whole bunch of people working in the garage, but the movie was-- well, i'll just say it was emotionally accurate for me. charles: right, you know, dan, listen, steve jobs was iconic person and there's a wide range of feelings about him from people who love him and think he's an american icon and should always be remembered to people who say he's difficult and self-centered and i remember when he passed away bill maher claimed him as a liberal and some republicans a republican conservative business guy who kept money overseas, but created an amazing american country. which side has the right or is it some place in the middle? >> i'm not really sure. i'm not really sure what that question is?

>> was he a hippy kind of guy who smoked a lot of pot and just got lucky. was he a hard core ruthless business man who wouldn't bring money back to america and create american jobs because he couldn't get what he wanted? >> i would say the latter. not a pot smoking hippy although he thought of himself as a hippy in a certain sense. >> where do you think it goes from here? the other day we had larry ellison saying that steve jobs is irreplaceable of course, apple stock is moving up, but tim cook had a difficult time. his legacy, his company. how do you think it's going to work out. >> i think that tim cook is doing a great job. charles: really? >> yeah. charles: okay. >> and, well, apple has so much going for it, i can imagine them doing very well. >> dan, thanks a lot. you know, we appreciate you sharing your insight with us. employee number 12, you have the insight and the feelings and after talking to you, i may actually go see the movie so i appreciate it. >> i think you'll enjoy it.

charles: good, thanks a lot. >> all right. charles: liz, i'm glad that at least he kind of settled one thing, closer to a ruthless businessman who wanted to get the job done because there has been a tug-of-war over his legacy and what he represented. >> a great point, charles. >> the passion the perfectionism and artistry and control, steve jobs. rolling stone is saying that ashton kutcher captured it. but what's interesting, he's saying that ashton is, he hopes that steve jobs would be as brutally honest in his life towards his portrayal of him in the movie. charles: funny he mentioned brutally honest. things changed from steve job's death to the tim armstrong controversy and tells a guy you're fired and a back story, everyone is upset the worst way in the world to fire people. i've fired people a lot worse than that, and i bet steve jobs has as well. has steve jobs been given a free pass or the world has

changed? >> i don't think a free pass, but more and more, people who speak their minds sort of like a 6 or 7-year-old speak their minds like you and i do, there are no hidden agendas-- >> and in the workplace. >> that's where the problems come up. >> to be successful as he was. >> that's right. >> and two companies that haven't been successful, in fact, in a lot of trouble, j.c. penney and blackberry, can anything be done to turn them around? we'll ask next. ♪ theoys used double miles from their capital one venture card to fly home for the big family reunion. you 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, you never miss the fun. beard growing contest and go! ♪ win! what's in your wallet? win! it's been that way ysince e day you met.. but your erectile dysfunction - itld ba question of blood flow. cialis tadalafil for daily use helpyou be ready anytime the moment's right. you cabe more confident in your ability to be ready. anthe same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, set stomach, delayed ckache or muscle ache.

to avo long-term injury, seek immedte medical hel for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, ask your doctor about cialis for daily use stop taking cialis and get medical help right awa and a 30-tablet free trial. >> home builders started building more homes in a rapid pace in july. and seasonally adjusted, annual rate of 896,000, most of them apartments. home builder stocks, popping on the news. and take a look, you can see nice gains accoss the board. now, get this, pepsi flavored cheetos are officially on the shelves in japan. apparently the cheese flavor was replaced with a fizzy cola flavor that liz macdonald

loves. and a spokesman for the company say they will not be coming to the united states. a survey revealing that 25% of north american managers will give out bonuses to their worst performers, and rewarding bad behavior and found that 18% of employers do not set different targets payout based on employee performance. the man who saved 800 corporations, i've got a big one for them. is a thing of the past. block the acid with prilosec otc, and don't get heartburn in the first place. [ male announcer ] one pill each morning 24 hours. zero heartburn.

>> take a look at these women's leggings.

do they look controversial to you? nike brand is under fire for the design. the tattoo-like print is compared to the male tattoo in the samoan culture. and exploittative and nike has apologized and says they're inspired. >> i didn't know that nike thought that they had the potential to-- who knew, the global marketplace we're in. >> and i guess, if you're a global company, it's hard to put something now and not offend somebody. >> that's right. charles: someone is upset about something that much. all right, guys, check with nicole, game stop, the target is higher. this is on death watch. how is it going? >> the death watch stock. let's see how it's going. up 1 1/2% and suntrust this

morning put a buy rating on game stop despite the fact it's a great performer this year, up this year. and up from $44. >> all right. now, listen, the man who put them on death watch. they'll defend that and in the meantime, wal-mart is down today and how is it today? >> it's not bouncing back, but it's interesting. we talked about dow laggards and cisco bouncing back and wal-mart not doing the same. still in negative territory tacking on to 2.6%. and you had raymond james cut wal-mart 82 from 84. charles: that's not a big time downgrade, thanks, nicole, appreciate it. time for me to try to make you money. let's take a look at taser international. we know them for the tasers, but this could be an economic play for the ruling on stop and frisk because they had a hot product, a camera that police officers wear on them.

they just got a big contract out of boston. i've got a feeling they're going to get a whole lot more contracts. earnings have been phenomenal and earnings up for this year and next year and keep in mind. one in two officers in america has a taser, only one in 50 internationally, a big market for them. i think the stock, which is making a big breakout, might be time to buy it. the guy known by ceo's as the top turn around man in the country and saved over 800 corporations in the past 20 years, and no business cards, no resume's, no social media, just by reference and he even has a reality show made based on his life. and patrick, we have a few real challenges for you. a couple of companies, we like you to turn around for us. first of all, blackberry, they called you, you know, let's take j.c. penney first, if they called you on that, how would you fix it? >> well, first of all, i deal with under 20 million dollar

companies, a great job. i get to see americans hustle it up to keep their lives in order and under 20 million if they make a mistake, you get to see it right away. i probably wouldn't get a call from blackberry, but see what they're doing. >> at the rate they're going, it could be under 20 million. for sake of argument you had a chance to go there. what's the basic mistakes? i thought it was a big mistakes when they had two ceo's. is that something that's typical? >> no, there's generally one guy at the top. generally one guy. and with big companies, i watch them all the time because my model is a small company, and, but i wonder if my work would do well in a larger company. and something occurs to me, you know, i don't know about you, but know in the morning, maybe i put 20 bucks in my pocket and i go to work and i might need the 20 bucks to buy a snack during the day or get a coke or something and when i get home at night. if i lost that 20 bucks, it's a problem for me, i'm kind of

embarrassed. whatdy do with the 20 bucks. i don't know how companies start in one 100 million, 200 million. when do you look in your pocket and go, you know, i don't know, bob, did you notice that we're, i don't know, down 30 million? or, no, bob says it's not 30, it's 25, we're good. i don't know how that works. charles: they do it i think in part with that funny accounting, but and by the way, government should be listening to what you're saying as well. you've just touched on being really at the heartbeat of america with the smaller businesses and i happen to think that's our major answer, what's going to bring the american economy out of it. quickly, the companies you're working with. how are they feeling? are they optimistic? it feels like small businesses are losing that old-fashioned optimism. >> if, to profile a small business, they're not concerned about anything except paying their mortgage. they're very afraid when i get there. not thinking how the united

states is doing or the world is doing. they're thinking how they're going to get their kid from school today, how they're going to pay the rent at the building they're at. they're very focused and very afraid. >> patrick, entrepreneurship collapsing in this country. you've turned companies around and you've dealt with them when they've sort of broken. what do you say to someone who might watch the show who might have one fight in the notion of starting a business? >> oh, the greatest concept ever is entrepreneur and entrepreneur, i think, in my opinion is an entrepreneur has no idea what he's doing and that he can't do it. i've got great people. i love my job. people go out there, they have no idea they can't start a tire company, a plumbing company, an air conditioning company, and they just do it, man. they go out there and they just do it. and you know, five years goes by, seven, nine, ten, they get in trouble and they start borrowing against the future or

start doing those things and there's really nobody there, the fortune 500 company there's a board of directors there, seemingly, says, hey, this might not be a good idea. there's nobody there to tell my pru entrepreneur, my great entrepreneur, my american guy, dude it may not be a great idea to borrow that money against a perceived benefit. charles: exactly. >> until they start down that road and the charge cards go up and mortgage is doubled up and things happen. and when i get there, i get to say something like, it's great. the first day i get to a company i get to say, you see this history here? you did a great job, a good job. let's try to get back to that. no matter how tired these crazy people are, american entrepreneurs are nuts. and i love that about them because you can say to the guy, you've got nothing, upside down on a gazillion dollars and everybody is mad at him. you say, hey, what do you say we take the hill? and these people look--

>> and patrick, that's what made this country great. look forward to seeing more of you on the tube. >> thank you. charles: some of the biggest in luxury cars are showing off their wares at the concourse d'elegance show. adam shapiro, i don't think he's missed one of these. he's there and he'll show the hot rides you can buy, maybe. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futes move first. learn futures from experienced pros with dedicated chats and daily ve webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.

>> coming up on lou dobbs tonight. 7:00 eastern. president obama and his attorney general still trying to change or flat-out ignore laws they don't want to enforce. former federal prosecutor and judiciary committee member congressman trey gowdy on the issues tonight at 7:00 eastern. charles: it's been a quiet day, but we've got to check on the market. we were up, and down, and it's know the a roaring bull market, but moving up and moving in the right direction and seems interesting here, talk about big time, the biggest names in luxury cars are unfailing the mega machines at the premier auto show and adam shapiro is in the middle of it all and joins us now, adam. >> i want to show you something that's going to sell between 9 and 11 million dollars. this is a 1957 ferrari and take

a look on this this car finished 9th in 1957 in an eye tal i don't know road race and could break 11 million. and ferrari set the bidding auction at pebble beach, last year, one for 11 million. if you don't have millions of dollars how about a 1977 volkswagen beetle. and the concourse in the 63rd year, cars for your price range, the 1969 corvette, yours between $550,000, $700,000, you don't like corvette, but chevy lay, a comaamaro, and we're goi to be showing you not only the cars at auction, but next year's and the future's collectible cars. we have interviews lined up throughout the day with the north american ceo of bmw and

they're coming to market in the fall with the four series coupe or coupe as the europeans say, and expected to help their bottom line and the bottom line for the luxury antique cars, gooding and company sold last year, 113 million dollars worth of luxury automobiles and as you can see, it's quite amazing. charles, we're going to be speaking with david gooding in the 11 a.m. hour of fox business markets now and we're going to be talking about the collector car market and talk about the collector car indexes and there are several, for instance, haggerty blue chip index how cars perform as an investment. up five years, 70%, better than the dow. one last look, this car will go between 9 and 11 million. it's a bargain and got a light in the glove compartment. charles: sweet, i'm jealous, i'll admit it. more varney next. ients trade t

exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everi'm with scottrade. me. (announcer) scottrade. awarded five-stars from smartmoney magazine. 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 cholesterol. metacil. 3 amazing benefits in 1 super fiber.

it has been a rough week for the market, melissa, "from an unlikely source the sons of all of. >> this is for you for friday. mike tyson said everyone has a plan until they get hit. what this means is, september month has historically been a down month for markets. look for the companies that finance themselves, retained earnings, look for the power plays. the store going to. companies that can pass on pricing. charles: it reminds me of people say they will buy the debt. that might have been your game plan, when the market -- is said they don't show up. we have a lot of fun this week. all right. we will endeavor to the man himself, mike tyson. when he lost the belt, he lost to the sky,. connell: he was never able to.

>> he took a shot. he took one shot. he got hit until the guys in the corner, star of the car. connell: i paid for that fight. that's at least it around. quoting the great market philosopher, mike tyson. speaking of the market's bear watching today, for the next move after that more than 200. sell-off, the ten year treasury yield hitting its highest level in two years. we are also living in a new report of revealing the national security agency has breaking privacy rules and overstepping the boundaries. not every now and again, but thousands of times every year. and it once belonged to the fashion mobile, a mansion in miami said to have the auction block after being initially listed for 125 million. we will show it to you. behind the scenes of the hbo hit casting my, how one woman