>> imus in the morning♪ >> military action against syria appears imminent and the markets are selling off big time. good morning, everyone. secretary of state john kerry says the gas a n i -- attack, and the dow will open well over 100 point lower and gold is trading up more than 20 bucks an ounce and the price of oil has reached $108 a barrel and second headline which has impact on the market. the government runs out of money in mid october and president obama says he will not negotiate. he wants to raise the debt ceiling period. no other issues considered. war talk, debt, markets down. here we go again.

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>> good morning, everyone. the military is ready to act, poised to act against syria. they're waiting for president obama to give the order. that came within the past hour from defense secretary chuck hagel. we don't yet know the extent or the method of the response, but the market are selling off in preparation for the start of this widely expected action. here are the numbers. the stock market as in the dow jones industrial average set to open about 120 points lower, right there 14-8. the price of a barrel of oil, straight up, a gain of nearly $3 a barrel at 108.89 as we speak. the price of gold, $24 higher back above $1400 an ounce. coming up in the next hour, ambassador john bolten is with us, he knows how it works. had the red line made that's

absolutely inevitable. who and what shall we target? we're going to ask him. time is money. a lot more headlines. here they are. fire crews reporting problems on the yosemite fire and grows in sign. ash from the blaze threatening san francisco's water supply. now, check out this video. a truck crashes through a convenience store in massachusetts nearly hitting a customer. police arrested the driver for negligent operation of a motor vehicle. and then we have jack lew, deadline coming for the dead ceiling. mid october. the headline though on this story, president obama is not going to negotiate. he wants a clean bill. just give me more money to borrow. but we're a few minutes away from finding out how the markets open. we know they will be down. military action on syria looks very imminent. and caused a selloff yesterday and we're going to find out in just a moment how low we go this morning. [ male announcer] surprise -- you're having triplets.

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i got my first prescription free. call or cck to learn more. [ male announcer ] if you n't afrd your medication, astrazeneca may be able to help. do you mind grabbing my phone and opening the capital one purchase eraser? i need to redeem some venture miles before my demise. okay. it's easy to erase any recent travel expense i want. just pick that flight right there. mmm hmmm. give it a few taps, and...it's taken care of. this is pretty easy, and i see it works on hotels too. you bet. now if you like that, press the red button on top. ♪ how did he not see thacoming? what's in your wallet? ♪ take me home >> interesting banner there, housing double dip coming, question mark. we'll pose the question in just a second because we received the case-shiller report.

home prices up year over year and we'll talk to someone who says double-dip stay tuned in housing. there's going to be action on the stock market and all the commodities markets, too, scott she shellady is with us from chicago. gold is up, oil is up. stocks way down. is it all syria or what about the headline about the debt ceiling hit in mid october and the president will not negotiate. >> i say the government can nt -- can't get out of the way of itself. and with the middle east, no process or plan. this is what happens. you reap what you sew and they're starting to come to fruition and the american public is going to say the bumpy fourth quarter is due to the fact that we don't have a plan and we keep printing 85

billion a month and we don't know where we're going, we just don't know. stuart: this is not a short-term selloff, it's something ugly and stays with us. >> we've had the paper tigers and show me the bright shining city on the hill which is america. where is the growth. this year looks worse. stuart: i think you rung the bell with our viewers and that's a fact. scott, thank you very much indeed. we're off and running on this trading session and we're down 20 points. in a couple of seconds we're expecting down about 120 points when everything opens up and we get rolling. individual stocks, let's check them. first of all, facebook. cheryl sandburg, coo selling 176,000 shares and she sold them at 38, the ipo price, they have been pushing 42. the stock quote now in a down market. >> basically they were up three days in a row and in today's sharply lower market the stock is down 2%, 40.45 is the level,

but stuart, facebook is 100 billion dollar company again. it was about 104 billion at ipo time and now finally popping above that key level. stuart: but it's down in a down market and sheryl is selling some of his stock. tiffany, strong profits in china and tiffany raised its forecast. is the stock a winner in a big down day? yes, it is. tiffany is at 82 this morning. not much of a gain, but it is a gain at a moment when the dow is down and falling. and j.c. penney, big ackman sold his entire stake. 13.9 million shares, you might think that's bad for the stock after the biggest shareholder is out. and ackman brought in-- and it's big in a down market.

and starbucks, the chief there says he won't cut hours or benefits because of obama care. where is starbucks, lauren? >> unfortunately, it's down today, stuart. there you go. down a little more than 1%, but you remember ups said that they were going to cut back on some elk had for spouses and starbucks is saying, they're not going to do that because of the affordable care act and by the way, they have gotten 9400 company-owned stores and this is a huge company, a big deal. stuart: i call that good pr for starbucks. and take a look at netflix, that stock hit a new high yesterday. it's closing in on 300 bucks and now we've got it at 278. 278.87. all right? anything to add to that, lauren? >> yeah, they're still on 300 watch indeed. and house of cards, another show, netflix trying to kill pay tv.

and out of the broader markets on the s&p, this is up 205% this year. stuart: let's wrap it up. we're two and a half, three minutes into the trading session. let me give you a read across the board. stocks, down to 14,-8 on the dow. and price of gold. higher, 1417 is the price and look at the price of oil this morning, $108.64. three markets all selling off for, you know, basically reacting to primarily the syria news, an attack is imminent and also the news that jack lew, treasury secretary says mid october deadline for raising the debt ceiling and the president will not negotiate. the latest read on home prices, let me give this them thousand. home prices jumped 12% since june of last year and pretty much expected. look at las vegas, up 24%, however, hold on a second, in

14 of the 20 cities surveyed by case-shiller, the gains were smaller month to month. let's bring in bob massi in las vegas and shah galani here in new york. first i want to go to you shah. you say there's a possibility of a double-dip in housing. make your case. >> i'm not sure the price rises are legitimate buyers. due to equity shops, reit, bought over 100,000 single family homes. i think that's propelling the price rise. i'm not convinced the mortgage money is there for private investors or private individuals to purchase. i think you've got the qualified mortgage rules which are as yet undetermined. we've got the question about what is the government going to do about the fannie and freddie situation and are they the back stop and we have the fed buying mortgage-backed securities.

to me it's a short rally. and they're bidding up the price of the homes and real investors, real individuals have the money to take over and bid up prices further? i don't think so. stuart: bob massi, you heard that, our friend here shah galani is saying, look, investors are driving up prices. what do you say to that? >> well, i actually agree with everything he just said. i think that the issue, particularly in las vegas, stuart, we have no inventory. when you have no inventory prices go up. as a result of that, hedge fund who bought a lot of the homes are renting them not selling them. representativers who foreclosed on the properties are sitting on the property. only thing that are selling in las vegas are new homes and we've had these prices. i've believed it's somewhat fictional at this point in time that when the lenders and investors start selling the homes they've bought you're going to see the levels come down. it's not like it was a few years ago, but you're going to see another bump in prices, particularly in those affected areas. las vegas, florida, it extext,

new mexico and over in california. stuart: tell me about the availability of mortgages, home loans for first time buyers, not investors who i think pay a lot in cash. what about the first time home buyers. >> we first have to look at interest rates, number one, number two, i talked about it last week, that the guidelines changed recently and could help people. used to be that people went through bankruptcy and foreclosures and short sales and had to wait to get an fha insured loans. that could open up the market. but the bottom line is still going to be, we have employment issues we're dealing with and people that don't have the money to get in and buy and i think you still have the variables that this gentleman talked about that the question really is, how real is real at this point in time, i still think it's fictional. stuart: bob massi, thank you

for joining us from what was the ground zero of the housing crisis. shah still with us. the dow is now down 108 points, gold up over 20 bucks an ounce and oil around $108. is this all syria and the debt ceiling deadline of mid october? is that all that's going on here? >> no, those are the headline news factors that are pushing the markets up in terms of what investors are looking at and take the profit share and there's this news to worry about and that news. the economy isn't growing. we don't have the support of growth we need. the fed isn't going to walk back and pull that back if the markets are going to turn around and ruin the whole wealth effect project. they're going to continue. they might taper slightly to prove they're good for their word, but they're not going away soon. they have to support this economy, it's still weak. stuart: we're down 100 points roughly and you say it's not a flash in the pan.

when the shooting stops in syria and when it begins, we assume it begins. it's not a flash. we don't go straight back up again. we've got the weak deadline and economy and this weakness in stocks continues? >> i think it could. it certainly could turn around. i think if earnings continue to be robust for the most part they're mixed, but continue to be robust. stuart: you're hedging. >> i'm a reluctant bull. i want to be in the market, but taking defensive position of the capital because i'm apprehensive can this begin. stuart: do you think this debt ceiling thing is a threat to america's financial position or more posturing 50 days in advance? >> i've got to be it's posturing, political posturing, i don't think that anything bad could come out of it, who is going to want to blame the other party. stuart: the president would be delighted to see the government shut down because the

republicpublic would blame the republicans. >> that's his position because i think he's going to force the issue, but in the end he's going to have to capitulate and not be pointed to you were the one who pushed the republicans into the corner. stuart: so you're a reluctant bull and taking a defensive position. >> yes, padding to my defensive positions for sure. stuart: thank you, shah galani. check the big boards. we're down 90 points and lost 115 that was the low and now down 91. the dow is at 14,800 right now. get this. private workers getting state-funded public worker pensions. how do you explain that one? we have one of those workers and he's going to explain it for us and he is next. ♪ clients are always learninmore

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>> all right. you are looking at a two month low for the dow industrials and down 86. here is your morning gold report, straight up is the word from the bullion market. we're up $25 an ounce, 1418 to be precise and the price of oil, same story, straight up. 108.56. that's 2 1/2% higher. syria, and the debt ceiling nonnegotiation from the president. that's what's driving this market down. gold and oil up. a report by the associated press found hundreds of private lobbyists in at least 20 states, get a public pension. because they represent associations of counties and citizens, school boards.

today we had one of the lobbyists with us, the new york state association county directors. he earns $ 204,000 a year and a full state pension and joins us now from albany. welcome to the program and good to have you with us. >> thank you, stuart and thanks for having me. stuart: can i can you this, you've got a pension that is going to be provided largely by the taxpayer. what kind of pension is it? is it the old-fashioned defined benefit pension where the taxpayer is on the hook or is it a new kind of 401(k) where you took some risk? which kind is it? >> well, that's-- it is a defined benefit plan and that raises the issue hereof what's been discussed for years in new york state and that is the need to change the pension system. stuart: okay, but you are a

private-- it is a definned benefit. stuart: a defined benefit with the taxpayer long-term on the hook for making sure that pension is paid. okay. now, you're in private enterprise. you're a privately employed person and yet, you're getting a public pension and you are advising public institutions on how to maintain their generous benefits and then you get to share in those generous benefits. a lot of our viewers are saying, wait a second, wait a second, it doesn't seem quite right. justify it. >> stuart, when i woke up on sunday morning and i read the headlines from the ap reporter that said that private lobbyists earn public pensions, i almost glanced offense the article because it didn't apply to me. it is technically speaking, i am a private lobbyist, but so, too, is the mayor of the city of new york, so, too, is the

mayor of the city of albany where i sit right now. so, too, is any county executive in new york state. the new york laws requires local elected officials to register as lobbyists. so, technically speaking, i have to register as a lobbyist, but in reality when this association was formed when calvin coolidge was president in 1925, it is an entity formed by county elected officials whose sole purpose it to represent the taxpayers and to defend smaller commune-based government and prevent the encroachment of larger governments like the federal and state department. stuart: who pays your salary. >> it's paid for -- well, the board of directors sets my salary and paid in part from private sector funds and in part from membership dues from the county of new york. so it's truly a blend, it's not funded exclusively through by any means the taxpayers of the state of new york. stuart: okay, do you think our viewers have any grounds to

object? i mean, you've made the case, this is by law. your position is defined and your pension is, i understand all of that. but don't you think that our viewers have a right to object to someone like yourself advising public employees how to keep their generous benefits and getting those generous benefits himself? >> well, i think it's the exact opposite. so, the viewers, of course, have a right to object. the viewers of the united states, the citizens here, the citizens and the people of new york state, of course, have the right to object and they should object, but they should also understand the facts. the facts are in 1925, the associations formed by local government elected officials, it's in existence today nearly 90 years later. it is required by law, by the state of new york, by the people of new york to mandate a participation in this pension system. i have written over the years

to the state comptroller and written, it has to be released from that obligation. stuart: i understand, i understand. so i do understand-- hold on a second. i agree with you, i see your point. it seems to me that this is kind of a technicality and that we cannot afford the generation pensions which you're lobbying for and which you're going to get yourself. i'll give you ten seconds, i'm flat out of time. last word to you. >> okay, that's opposite what is true. we lobby against the expansion of the benefits and we have lobbied for pension reform for the past 25 years and we have been successful in changing the pension system. it's a very valid organization and we thank you for your time, stuart. stuart: no, seriously, thank you for straightening this out. you make a very valid point. if you've been arguing for pension reform, we're hearing you. we listen to you and we hear you. thanks very much for joining us, sir, appreciate it. >> thank you, stuart.

stuart: all right. it worked for tobacco, will it work for guns as well? you're going to get my take on a bullet tax which i think is the latest back door gun ban. it's next. ♪

>> hey, we're coming back a little. syria is on everybody's mind. so is the debt ceiling deadline. we're only down 58. we were down over 100. look at oil stocks, no surprise here. the lead is on the dow. the only two dow stocks that are up. exxon, chevron because oil is way up, too. well, you know, it worked, even if you disliked that route ray -- outrageous performance by miley cyrus, it worked, downloads of her songs are up. and we have a college professor telling us about the outrageous cost of college textbooks. textbook prices are up 82 over the last decade and we'll talk to an e-cigarette executive. why is his product attacked

from all sides? two democrats have introduced legislation that would increase the tax on gun purchases. in fact, it would double the tax on gun purchases and increase the tax rate on ammunition from 11% to 50%. and here is my take on that. reminds me of the campaign against tobacco. some people don't like it, but you can't ban it so you try to tax it so heavily that it virtually disappears. it works with tobacco. it will not work and should not work with guns. item one, the constitution, it guarantees the right to bear arms. it is a right. that right makes americans almost unique in the world. where else are citizens given the kind of guarantee against oppressive dictatorial government. no place else. this kind of back door gun ban should be rejected. second, we have the people. we, the people, i should say, we, the people have already

rejected strict gun control. after newtown and aurora, there were loud demands for new laws, they were rejected. big taxes on guns and ammo are simply another attempt to push through what we've already opposed. third, why are we trying to disarm honest citizens? why are we trying to make defense so expensive while criminals on the offense walk away and laugh. like myself in this great country, i don't want my family living in fear of gun violence, but, but i don't want my right to defend myself taken away and i don't want that right made more difficult and more expensive to exercise. this is america still, isn't it? [ male announcer ] sheets or bar? how do you get your bounce?

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stuart: 34 days to obamacare exchanges and washington runs out of money and that is not all that is happening. in the wall street journal brett stevens says killed assad? be cigarettes, french study says they are as bad as the real thing. the maker of top-selling brand elogic too, a an arm and a leg for textbooks, it is a wreck. peter morici, university guy answers that. imogen lloyd webber and the power of celebrity home library cyrus and the duchess of

cambridge, why are they in the same sentence? fashion designer on my colors for the fall. ♪ going back down little bit, a 31 minutes into the trading session, we were down 100 and now we are down 69 points. by the way consumer confidence numbers just came in, all little higher than expected but i am not seeing much impact on the market, we are still down 65 points. i do want you to look at oil and gold, both of them weigh up. this is mostly about syria but also a little bit because jack lew says president obama is not going to negotiate on the debt ceiling which hits the crisis, the crisis hits, we run out of money in mid october.

let's talk about the debt ceiling. the president says no negotiation, he wants a clean bill gama don't put other issues on the table, just give me more money to borrow. charles: yesterday two shops were fired across the bows by the administration, john kerry on syria and jack lew on the debt ceiling. i think the debt ceiling is the one the obviously have to longest lasting dark cloud over our economy in the stock market. continual resolution that will come up at the same time, there will be heavy negotiations no matter what the president says in public. i know he loved the blazing dream and of congress that the rule goes to 10% and his goes to 30% that might be a victory. for market will be lose/lose situation. i hope he is smarter this time around. maybe last time he lost particularly with sequestration. it was an ace in the hole, never thought was used and the gop wouldn't blink. it will be interesting but that was the bigger shot across the

ball. stuart: the president is saying no negotiation, give me a blank check because that might shut down the government and if the government shuts down republicans get the blame. charles: continuing resolution, don't hijack obamacare, the debt ceiling, give me a blank check, just coronate you while we are at it. not going to happen. stuart: who is not negotiating? the president is not negotiating. charles: you know what? at the end of the day the president is supposed to bring the parties together. he is the president. stuart: other presidents have negotiated. i want to get to the details on syria. military assets are in place, they are ready for the president, president obama to give the order. fox news is reporting that order could come at any moment. most likely thursday. we don't know what a strike against syria will look like. almost certain that there will be one. former ambassador john bolton is here. let me start with something

almost inflammatory, in the wall street journal today, columnist breads stevens says we should kill assad. you are an ambassador. can you talk in those terms? >> 5 believe we should take military action in syria which i don't and if i believed bringing the opposition to power would be a good thing for the united states which i don't, and if i believed barack obama could act decisively which i don't, then i will leave if you're going to act all of you might as well act in a way that is going to clear the table and eliminating assad would be one way to do it but that is a long way away from where i think. stuart: you believe an attack is inevitable? >> yes but not for good reason. we don't know what the president's strategic objective would be. trying to understand the president's strategy is like trying to nail jell-o to the

wall. the fact is he put himself in the box in the heat of the presidential campaign last august by saying the use of chemical weapons by the assad regime would cross a red line. that red line was crossed six months ago and obama didn't do anything. not has been crossed again even more visibly. he has to do something or he will look even more foolish than he does already but nobody should be operating under the illusion that he has a real plan. stuart: if he does nothing, i am sure something will happen, what would iran think if we did nothing after the gassing with poison gas of thousands of people by the government of syria? that would send a message to iran they can get away with anything. if you can get away with getting people in the twenty-first century surely you can get away with building a bomb. >> saddam hussein got away with gassing people in the 20th century, nobody did anything there. that is why knowing what obama's

objective is is so important because it is possible to predict that obama could use military force, even use a substantial amount of military force and america would still be worse off afterward if assad is still in power, if the balance on the battlefield doesn't change, if assad can continue this civil war, that is a statement to iran that the president is not really serious. it would be a caution to iran that the need to ramp up their nuclear weapons program and get some bombs manufactured because that is a deterrent to an american or israeli attack. don't think the iranians view whatever the president does as having a material effect on a nuclear-weapons program. they are going full speed ahead the matter what. stuart: would you approve at a limited attack on syria which attempt to put out of action the nerve gas weapons that they have got? >> given that the president is going to use military force you can count on it.

whenever i would have done differently over the last three years as of today, this moment since he will use force, i think destroying the chemical weapons is the most pertinent target for the united states. we do have a concrete national interest in making sure that those chemical weapons and other programs syria has, biological or nuclear don't get outside syria for use against us or our friends and allies anywhere else in the world but i will say a longer president goes on in delaying the decision the greater likelihood that assad is moving those chemical weapons to places we don't know about, making any strike less effective. stuart: that is why most people think a strike of some sort is truly imminent. ambassador john bolton, thanks, crucial time. let's get to lauren simonetti. we have two stories on facebook. cheryl sandburg sold 176,000 shares at the ipo price that

will be 38. second store, governments in 74 countries demanded information on 38,000 users in the first half of this year, users of facebook. half of those orders came from the united states. any impact on the stock? >> it is down, holding 40 right now, instead of pushing 42 as yesterday but after a decline for facebook. stuart: thanks. i am looking at that volume and seeing seventeen million facebook shares than i did in 38 minutes. you have often spoken to us about insider buying and selling. here is an insider selling, sizable chunk of stock when it gets back to the ipo price. what do you make of this? charles: buying is more significant than selling. one of the things that happened after the big tech crash, a lot of people, tech executives and investors who were rich on paper happened to go back to work. a lot of them put into place these automatic programs where

it was outside their control no matter where the stock was going to be. i do find it curious because in december when she sold $50 million worth telegraphed to the world the next front in september. a little anxious before september, real big chunk of the stock. i would consider a yellow flag, not a red flag. cheese told $200 million worth of stock. i understand i versification and mitigating risk but i want her to have more skin in the game. i don't want her to keep beating her skin in the game. stuart: i keep hearing she will be facebook to run microsoft. charles: a very attractive candidate for a lot of companies right now. that could happen. again, i would like to see its local little bit. and i got that, cash of $200 million worth of stock. stick around for this roller-coaster. stuart: another story for you. listen to this. tesla's chief elon musk the

interviews with that hermen plan. the stock doesn't stop there. he recently pleaded he and his team figured out how to design a rocket parts with hand movements. hand movements in the air like what? tony stock? is this just too far out there for you? charles: absolutely not. of elon musk and hope the never talked politics because right now all i am in love with the businessman. we have the dick tracy was coming out, the paperloop could be in our lifetime and this robot thing is not out of the realm -- stuart: designing with your hands? holograms. you get inside hologram and decided. charles: all of that is possible. i think so. and i think so with a very short period of time. i think technology is ready to make the next big league. it felt like we went into a lull after the 90s and we are ready to go into a major league.

stuart: tesla is $160 a share. and we have miley cyrus, that ranchi dance paid off. google searches and sweets surging while she danced away to blurred lines. you don't have to be crude for the power of celebrity to the off. after the break an example of celebrity clash a golf. we will be back. ♪ [ villain ] well mr. baldwin... it appears our journey has come to a delightful end.

th i better use the capital one purchase eraser to redeem my venture miles for this trip. purchase eraser? it's the easy way to erase any recent travel expense. i just pick a charge, like my flight with a few taps, it's taken care of. impressive bdwin. does it work for hotels? absolutely thank goodness. mrs. villain and i are planning our... you scare me. and i like it. let's go what's in your wallet? like carpools...

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stuart: stocks may be down but charles will tell us how to make money in this market, talking retailers. charles: an amazing number, sales of 15%, profits up 55%. the watchmaker, features the stock lot of times. i love the story, the cuban immigrant who came over fleeing castro and american success story, stock at a new all-time or 52 week high.

designer shoe warehouse store sales up 10%, same-store sales better than a year ago, operating margins of, company rate guidance, another gigantic move. ground shoe beat, they were cautious, really cautious, the only ones who were cautious, it was up and now is down and then there is tiffany's which is interesting because people get twisted that this is something about american wealth, something about chinese buying, japanese engagement rings and a percentage of population they buy a lot more engagement rings than americans do and adopted that culture and stock is doing well because of that. europe driven by the u.k. and overall looking pretty good but american sales still flat and flat shoes stores too sponge ian poulter and -- stuart: if we change our policies to be like british policies of getting private enterprise simulated then maybe we would have that.

charles: i agree with you 1,000%. stuart: stop telling world i'm some kind of why me. charles: what does that mean? stuart: you don't know? in the ancient mariners when they went from england across the seas they got a disease called scurvy. they found out you could cure scurvy with limes so they tanked up on limes and became known as limeys. charles: does that mean -- the scurvy part i am trying to figure out. don't call me a scurvy -- why is that a bad thing? stuart: i'd don't take offense. i do not take offense. call me what you like. telling me to get on with it. a tip of two celebrities. miley cyrus's risque performance driving 300,000 tweets per

minute and ten million google searches sunday night after that performance. you don't have to be crude to make a splash. kate, the duchess of cambridge helping to double sales of the maternity dress she wore in this portrait taken of the new royal camera. a ton of buzz for different reasons. power of celebrity. author and political commentator imogen lloyd webber is here to weigh in. >> hello, limey. stuart: when you don't object. it is a form of familiarity. miley cyrus, let's start there. i was appalled. i thought it was a shock but apparently iff. >> big hits on tv. yours was 66% last year and 12-year-old to 34-year-old demographic, huge numbers, great advertising revenue. 12 years old. short-term also pretty good,

finally got rid of that had not montana disney alter ego she has been trying to get rid of the past few years. long-term i think that was the me seated trouble for a young girl on stage. madonna was 26 years old, miley is 20. she is no madonna. the biggest turning celebrity from last year at 55, a long term, miley is in trouble. the duchess of cambridge -- stuart: don't want to think about that. completely different facet of celebrity. the duchess of cambridge appears in a particular address, maternity dress and the things sold-out. that is celebrity class which really does produce a lot of sales, short term, long term, medium-term. >> is known as the case the fact that it is a huge.

british brand, massive american expansion, basically caged is always seen wearing that huge deal. and by about $1.6 billion in retail and tourism, a gift that keeps giving. and in heritage charities, it is extraordinarily good. stuart: would you make the judgment that class is good for bringing in money whereas raunchy may work in the short term but not the long-term? class is better than raunchy? >> that is why you see case so popular around the world, popularity in america, universally loved and that is good for britain. miley, this is racy but as i say i just see any emaciated troubled young girl and

12-year-olds or 13-year-old girls would have been in the mtv awards and i felt very old. charles: to that point the popularity for the youth, miley is more popular than kate and more influential particularly american use. >> on some levels but you see tourists, extraordinary influence, when she was, it sold out immediately and long term you have to go with that. stuart: duchess of cambridge has no shock value. miley cyrus has shock value. that is but value. charles: in america we have seen this before. the whole line of lindsay lohans that crash and burn and part of the amazement is wondering if she is going to crash and burn. stuart: imogen lloyd webber, you have a lot of class and we thank you for being on the show. charles: you have been in

america too long. stuart: do you think i still have a pure british accent? >> not all. stuart: if you didn't know me where would you say i came from? >> from north york shirt. stuart: you know where i am from, darby which is north of london. you could kick me out like that? >> yes. having been in america for a while. >> i can talk to any other english person and within ten seconds i know their social class. you know that is true. so what is my social class? >> i am going to get in trouble. i am not going to say a word. stuart: you chicken. stuart: i'm not going to tell you. thank you very much. are we done? yes we are. electronic cigarettes turning into a billion dollar a year

industry. billed as a safe alternative to the traditional smoke but according to a new study from france that might not be the case and that is next. [ male announcer ] imagine this cute blob is metamucil.

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stuart: we are down 100 points, we are down 105, syria imminent action, that hurts the market and so does this mid october did ceiling deadline. the president says he will not negotiate down 140 and falling, loaded and stop, up 60% since we put it on deathwatch at the beginning of june but it is down the day. would invest in house says it is a good time to take profits and it is down 3%, and the stock at 50. a new french study from the national consumer institute found e cigarettes are as harmful as traditional cigarettes and could cause cancer. maybe that is why the fda is considering banning the online sales of these. with us is the president of

logic, miguel martin with us in new york. welcome to the program. the french study says they're just as bad as the real thing and you say what? >> there are quite a few studies out there that have not been fullblown medical studies and we encourage that by the fda. i understand what the french study is saying however we think a lot more research has to be done. inherently an electronic cigarette is different than a traditional combustion a cigarette. stuart: if i smoke and the cigarette i and in jesting nicotine which is an addictive substance but you are telling me i am not injecting any kind of talk that is harmful. >> that is correct. 4,000 chemicals in a traditional cigarette now exist electronic cigarette and opposition is we like the federal government and at the to do a full-blown scientific study and panels on this to truly understand what it is ended the consumers. of the one you want to be investigated, you want to be

checked. >> we would love the if the to look into these products and look at how the a different ending apparently they are different from a traditional cigarette, aged consumers so that they can make a conscious decision about the choice they want to make. stuart: you approved of the fda saying we should ban the cigarette online sales. >> we would be supportive of that. we think they should be sold to adults and online sales are difficult to gauge verify. our goal is to sell our products where adult smokers buy their products which is burke and mortars boris it and we will be supportive of the position if the fda and were to regulate sales of its staunchest of the sales which is part and mortar. stuart: are people using these? are they using them as a way to get off of real cigarettes? >> consumers use them in a variety of ways. we will put out a study today by colleagues, his study will demonstrate that in his study,

adult smokers found very successful to transition away from traditional cigarettes to electronic cigarette so that is important and should be part of the discussion. we are not scientists, we are not in the world efta plays but we encourage the fda to accelerate their studies and if they are going to have regulation have regulations pacific to the cigarettes and not just take cigarette regulation that applies to this product. that is the biggest mistake. stuart: one problem i might have. if i invest nicotine nicotine is an addictive substance. it just is. if i in just one of your cigarettes i am hooked. >> hard to say you are hooked but there are a lot of ways to get nicotine today including forms that are approved, guns, cactus, smokeless tobacco, regular cigarettes. this would be an alternative way to win just nicotine and what are the differences between this product and traditional cigarettes so consumers can make an educated decision? stuart: one of our young producers out to dinner last

night, nice restaurant in new york, neighboring table, they pull out the the cigarette, puffing away, she said that was disgusting, she has consumer reaction to people using tobacco in any restaurant. how are you going to fight that? >> we want this to be treated differently than cigarettes. the vapor dissipate quicker, there's not a second-hand smoke aspects, most all, the odor, the tar that would be there. stuart: one appeal of the cigarette is you can use them in places which up until now you couldn't use tobacco. >> we would absolutely fight that situation, make sure these cigarettes which are electronic cigarettes are treated different, talk about bars, restaurants, public places. stuart: when you are ok with this. >> we want to be part of that discussion. for our products they have done exceptionally well lately and whether it is retail, we want to continue that and this public

discourse about vote use of electronic cigarettes and how they are different from traditional cigarettes is critical. stuart: thanks for being part of our conversation. we appreciate it. dow is down 111 points. that is pretty close to the low for the day. is a two month low for the dow. complain that music because we are about to talk about college textbooks. by one for $80, sell it back to the store for $20, the store resells it for $70. i call that are rack and. a college professor answers the charge next. you know throughout history,

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auld syria? >> these, markets are focused on the upcoming event in syria. look at the price of crude oil hitting a five week high, we made a major jump in these markets. saying that things are escalating, everything getting to the long side of these markets in anticipation of a possible western strike on syria. some say that is imminent, these markets are waiting on that. oil is above $108 a barrel and when you have that lovell of uncertainty, investors, the trading community, wall street see a safe haven and they are seeking that in gold right now all. some bold has been struggling and everyone looking for a bottom. this morning gold was above $1,400 an ounce up 2% on the session. there's a large amount of u.s. dollars flowing into these commodities in anticipation of a u.s. strike in syria. stuart: am i right in saying commodities move quickly? this move in oil and gold

started as john kerry was talking about moral obscenity yesterday, that is when the move started but accelerated, accurate? >> listen to the town of those voices in washington and the tone changed yesterday and that is when we saw these commodities move to the upside. they are waiting in anticipation of any news that will come out on that. stuart: could come any moment. thank you very much indeed. the average college student spending, wait for it, $662 every year on textbooks. that is up 82% in the course of the past ten years. peter morici is a professor of economics at the university of maryland. welcome to the program. good to see you with us. i call it a rack that. why is it that textbooks always cost way of their whereas virtually any other kind of book available as an e-book for example is much, much less and

the price is falling. i call it a whack. what say you? >> students have to buy the specific text we assign. case material or specific examples in it that rival textbooks can't offer so that publishers have a monopoly once we a sign or select the book. stuart: so i can't go to amazon and get the same book as an e-book much cheaper? can't do that? >> you have to buy it from the publisher and they don't offer a discount for buying the electronic version. what i'd do to get around it is i use an older tradition of the book. they change these books so frequently there's not a lot of value added in using the eleventh edition instead of the tenth edition. i will assign this and -- tenth edition, make an electronic copy from a publisher's web site and students can buy that and save quite a bit of money though it is a little bit cheaper or go to amazon.com and go into the very rich used book market that is

available and get it for $30 and so i have been making that option available. some students available themselves of it. stuart: you are working in the financial interests of your students, trying to break this monopoly and i think that is a very good thing but most professors i suspect do not do the same thing. >> the easy thing is to go along with the system. however, we are encouraged at the university of maryland to use them older edition of the textbook. you took economics in school. the curves were sloping down and sloping down now. microeconomics hasn't changed in 50 years. i can use the book by professor studied from and still teach, slopes down. stuart: samuelson was the textbook in my day, economics 101. i don't remember the name of the book. we had to pay full freight. this was years ago, way before

electronic books came along. we are very glad to hear you are doing your best to break this racket as i call it and we congratulate you on that. would you please be a guest of hours again in the future on other subjects concerning economics like the debt ceiling? will you come back? >> i would be delighted to. stuart: if you are not careful we will ask you. peter morici, thank you, good to see you again. dow is down precisely 100 points mostly because action is imminent in syria and because the president says he is not going to negotiate anything about the debt ceiling deadline of mid october and leading fashion designer rebecca minkoff talking in terms, pay them or not, also the new next new look. that is next.

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stuart: massive wildfire in yosemite park friend san francisco's water and power sources. the rim fire has burned 160,000 acres, are reservoir in san francisco. firefighters say they're making

progress but right now the fire is only 20% contained. heath shuler out today, home prices jumped 12% in june over june last year, las vegas of 24%. however in 14 of 20 cities surveyed the gains were smaller month over month. not a good sign. former jpmorgan traitor wanted by the u.s. for allegedly falsifying bank records to cover a $6 billion trading loss has been arrested. now scheduled to be brought before the courts in madrid. beating passengers leading passes

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[ woman ] time for change! stuart: joining us now, rebecca minkoff, famed fashion designer who is with us by remote. welcome to the program, good to see you. >> thank you so much, glad to be here. stuart: i want to talk about internships, paid or otherwise but first i want to know what you think is a good fall color for me. >> for you that is tough. maybe. is a great, for men or a deep emerald green. it may sound crazy but i think you can use that in your accessories, or maybe in a tie, that would be great. stuart: not man bag.

i am surprised you think it would be tough to figure out a color for me in the fall and i am appalled you would think i would use the man bag but having said all that, what is your color? not for you personally, in your line of clothes you got out for this fall, what is the new prominence color? >> read. i think red is the new neutral. as you see behind the with a sampling of fall apparel we use a lot of red in the lines. stuart: when you are only saying that because you are advertising diet coke which comes in a shiny red can. >> that is not true. stuart: i trust -- >> is my favorite,. stuart: when you are getting paid by cobra, are you not? >> i am being used as an ambassador helping promote this incredible t-shirt design. it is a great partnership. stuart: there is one contentious issue my want to look at briefly.

internships. i know you are looking for in turn for the fall in new york city, you are not going to pay them. do you think they should be paid? >> as someone who was an intern we give all of our intern's the experience as long as they're getting college credit for it and that experience is priceless and because we had such great in turns we didn't pay them but they got college credit, great experience and some in turn is usually gone and are hired by a sore referred to other companies so as an unpaid intern when i started out it is an incredible experience that i think it would be a miss to not have that. stuart: i am with you on this one. my daughter was an intern at a fashion house in new york city this summer, she got a terrific experience ground floor, literally working in the industry she wants to join, great experience and got college credits so i am with you on this one but not necessarily on the

man bag. we will leave it right there, thank you very much, thanks a lot for joining us, appreciate it. we are now down 105 points on the dow. got to tell you that and this news alert. the debt ceiling deadline according to treasury secretary jack lew hits mid october. if congress is looking for compromise, not going to get it. jack lew says the president will not negotiate over the debt limit. he wants a clean bill. more money to borrow and get out of the way. starbucks chief says he is not going to cut hours or benefits because of upcoming obamacare. we have the stock price, is that up or down on that news? it is down 1.5% about in line, that is a bigger decline than the overall market. i would have thought that saying no, no benefit cuts because of obamacare would be good pr. stock is down this morning. we have another unintended consequence of obamacare.

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stuart: huge doctor shortage could be around the quarter. demand for doctors under obamacare will increase big-time. baby boomers and retirement. medical schools predict this could lead to a shortage of 90,000 doctors, six years from now. i am going to call this another unintended consequence of obamacare. >> feels like that absolutely. what we are seeing is doctors from around the country reporting in saying we have got thirty million new entrants into the health care system but we are retiring, we are leaving our jobs because there is too much regulation, many taxes, is not worth it anymore. stuart: when you graduate from medical school, you have a ton of debt around your neck and you are now the subject of lawsuits. every lawyer under the sun wants to go after you as a doctor if you make the slightest mistake couldn't perform that test.

liz: which doctors tell fox business was a failure of health reform because it wasn't toward reform. stuart: got another one for you when the koch brothers backed off from buying the l.a. times that looks like this may still happen. >> hollywood -- stuart: okay. obviously we are just kidding but it may not be too far off because hollywood is losing its cool. l a adds new mayor held a media event, tried to talk about other states and counties luring away movie and tv production with favorable tax credits and looks like they are being lured away. liz: 45 states and canada and -- taking hollywood productions out of los angeles, luring them away with tax breaks and tax

incentives, movies like lincoln, and man iii being filmed outside of los angeles, even the lone ranger was filmed outside of l.a. in new mexico so this is a wake-up call, a sobering statistic, 2003, 7 of nine action flicks made over $100 million of sales were filmed in los angeles, this year seven of the 12 were filmed outside los angeles. that is a big deal. stuart: production costs are not flowing to los angeles and california, there flowing to other states like louisiana, new york trying for too. that is hard, tangible money leaving california. is that mainly because of the high tax rates in california? liz: that is the complaint. it was such a complaint that arnold schwarzenegger sent danny devito and clint eastwood to sacramento saying you got to keep the movie production here in california, in hollywood, in l a because it creates revenue growth but they were ignored

because sacramento's said we have too many other issues, other budgetary concerns, the teachers association fought against it. california is losing out on big-time revenue because the revenue is flowing to other states in blockbuster production. stuart: don't tell me high tax rates have no consequences because they do. liz: they absolutely do. stuart: the dow down 1 and the points and we will wrap all been a moment.

u2 wrapping up the market option for you today. the deadline for the debt ceiling with nona gaucher shen coming the president. the price of gold sharply higher. the price of oil very troubling.

higher gas prices not too far away. stocks down, gold and oil. largely because of celia. we have this news that jack lew says the deadline for the that ceiling kit. am i missing something here? >> you have hit all of the right issues here. a sobering reminder of how the we have to watch that ted you know. stuart: thank you very much. that is it for me.

connell: action in syria dragging the market down. home prices are on the rise. a look at the rearview beer. another reason to hate facebook. creditors now using social media to use social media on whether or not they will loan you money. ash from the fire is now raining down on the water supply. we will have that and lots more in this hour of markets now. ♪