♪ ♪ imus in the morning >> ben's rally rolls on and here comes janet yellen. happy days are here again, right? good morning, everyone, you may not like ben printing a trillion a year. we know you don't, but on this, the day after the big announcement, look what's going on?

your 401(k) is doing even better, your mortgage rate is coming down. are those gold coins for the kids? forget about it, up $50. and what happens when the printing stops? the word crash is coming up a lot. in d.c., the word is confrontation on food stamps. obama care and debt soon, both parties split. one winner in the 400 million lottery, peanuts. brand theft auto makes over 500 million in one day. smile, you're making money and "varney & company" is about to begin. e... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history...

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>> a big surprise from ben. ben keeps printing. and gold up huge. this is the big mover all over again. right now it's up what, $57. another 57. the dow is set to go up some more as well. it will open, by the way, from a record high.

what happened to 3% on treasuries? that was an age ago. rates dropped as soon as ben said no taper. 2.7 on the 10-year treasury. maybe you are pleased to see your money grow, but not happy with ben and the printing. here is what you said on our facebook page. ron, i hope i can time the market when the anvil comes crash down. susan says, trying to get my business off the ground, a little bit of that would help. and jackie says take advantage now, it's going to get ugly. she's not the only one saying that. joining us by phone is former fed economist, david jones. a lot of people are thinking a crash is coming when the printing stops. what about you? >> well, it will be close to a crash, stuart. it was very surprising, the world expected fed chairman bernanke who pull back on the printing press and he did not, i thought it was a weak performance by the fed chairman. once that party stops and i think it will stop before the

end of the year, the fed will be papering, there will be a big hangover in the stock market and i think a very sharp decline in stock prices. stuart: telling it how it is, david jones, thank you very much indeed. it's not just ben and the markets that's making news today. confrontation looming in politics, the president versus republicans, republicans versus republicans, democrats versus democrats. food stamps, the budget, the debt, obama care, they're the issues and it's close to high noon at the d.c. corral, the president using very strong words threatening the g.o.p. >> you have never seen in the history of the united states the debt ceiling or the threat of not raising the debt ceiling being used to extort a president or a governing party. ♪

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she took an early spring break thanks to her double miles from the capital one venture card. now what was mrs. davis teaching? spelling. that's not a subject, right? i mean, spell check. that's a program. algebra. okay. persons a and b are flying to the bahamas. how fast will they get there? dot you need distance, rate and... no, all it takes is double miles. [ all ] whoa. yeah. [ male announcer ] get away fast with unlimited double miles from the capital one venture card. you're the world's best teacher. this is so unexpected. what's in your wallet? >> 45 seconds till the action gets going again, we're expecting the dow to open higher. in chicago, scott shellady is with us. take a bow, you called it, no taper. so now this. when does the money printing come to an end? when does he cut it back? >> when we have at least two months of strong economic figures in a row. guess what, i don't see that

happening this year and maybe not until the next half of next year. we're still in trouble and he's trying to borrow the growth and he's got no other choice. stuart: do you think we can keep rallying the stock market with the underpinnings of the economy? >> unfortunately with that kind of market you've got no choice. stuart: thank you. tend to your best, they're cheering in the background there. the dow is open. we're up and running and we're starting from a record high and we're up two points, down a fraction now, 15,675 is where we are. to individual stocks, a couple of big names, you know them. first of all, priceline, do you believe that broke above $1,000 yesterday, the first time for any s&p 500 stocks. it broke above yesterday, 996 as of now. and disappointing forecast from oracle. soft demand, small arrivals cutting into its business, but it's down only what, 9 cents,

that's it. take two's grand theft auto 5, well on the way to being a billion dollar seller. the game made 800 million in the first day. any impact on the stock from na that, nicole. stuart: oh, yes, indeed. up 4% this morning, at $17.95 a share. so, we're watching take two's grand theft auto. the fifth installment. $800 million of global sales and i have to tell you, i watch these video games as a mother, i can't even-- they have the mature rating. it retails for about $60. but look at the shoot-em-up, beat em up, blood, grab the guy, i can't even, it's hard to watch and these are the games they play,e children. imus:. stuart: wait a second, that's a moral issue. we just showed some video from the game. it's fantastic. i mean. >> it's cool. stuart: it's life-like and you

control the characters, that's irresistible, forget the morality. >> this goes back to your whole football and everybody loves the violence and the thrill. if it was just like walk down the street and pick up a newspaper, what kind of game would would that be. stuart: 800 million when it first went on the market. we're up slightly for the dow. 7 points higher, 15,683. close to uncharted territory. back to the federally. i'm with market watcher ed butowsky in dallas. and there's a radio station about ben and the markets and the same question comes up every single time. how come we've got a weak economy, but the stock market takes off? you want to explain it? >> well, it's a tough thing to explain because, you know, it defies logic for anybody who is trying to be logical about things. but the reality is that the markets arrive a lot of the earnings growth from outside of

our borders. and what you're seeing is the rest of the world is not falling into a depression and because of that, you're starting to see stock prices rally on earnings and earnings forecasts. >> now is this money printing, going forward? is it enough to keep the stock market up there? >> you know, stuart, there's a lot of people out there saying as long as they keep printing money, the market goes higher and you've got to dissect the money printing. fed policy keeps the fed funds rate and discount rate low. that's nothing to do with printing of money. that only affects the long end of the curve in terms of yield. as long as they keep printing people say we'll keep seeing stock prices go higher. i don't agree with that. even when we taper we could see it, when the market comes in. he keeps printing and we see a crash, i think that's intellectually dishonest. stuart: so far we're printing a trillion a year, yeah, we've got lower interest rates, yes,

we've got a modest housing recovery, but the economy is still weak and getting weaker. at what point. >> absolutely. >> do we say, this money printing isn't working, no matter how much we print. we come to that point sooner or lottery, don't we? >> i don't know the signs that show that it is working because the economy is so weak. so i don't really know and i've asked intelligent people on wall street, how does money printing impact stock prices and positively impacting the economy, and i have yet to hear anybody give me anything substantial. i don't know how money printing is helping the economy. >> you manage money for wealthy money, are you-- >> we have a balanced portfolio and regardless whether there's printing of money or not printing of money, we'll be fully invested and diversified que

queen-- understood, ed butowsky, let's recap where we are on the day after the big announcement and rally. we're up 16 more points on the dow industrials at 15691. you've got to look at the price of gold though, that's where the huge action is, price of gold up $57 an ounce right nowment and 1365. don't forget interest rates. coming down as the money printing flows on. that yield on the 10-year treasury, the baseline for 30-year fixed rate mortgages, 2.71%. to nicole, the horse race stock of the month hitting a high? >> 4604, because every time i look up, it kept going higher and higher and higher and these are all time record highs for facebook and they're working now with marketers to understand how the ads that people put on facebook translate into real sales so

they can quantify that and have more ads and more sales. stuart: we get it, thanks, nicole. that's markets and that's ben printing. let's move on to the confrontation in washington. the odds of it rising, a 25% chance. the white house sending a memo to agencies, warning about a possible shutdown. we've got a lawmaker who is willing to pull the plug. representative michele bachmann joins our company. good to see you again. >> good morning, good to see you again, stuart. >> i don't want to put words in your mouth, but i think you're right in saying, yeah, shut the government down if that's the way we get rid of obama care, are you going that far? >> it's up to the president whether he's going to do it. i'm going to vote for a bill that would keep funding the government. it would be president obama making that decision, what we're seeing around the nation is that people want jobs created and the number one inhibitor to be able to create jobs is obama care. and so, this is it.

we all know that people are about to be hooked on the crack cocaine of more government dependency under obama care. once that's into place, everyone knows it will be virtually impossible to back it away. we have one last window of opportunity to delay or defund obama care and we're taking it. stuart: that's obama care. what about the debt ceiling? by about the middle of october, we run out of money. would you push the government to a stand still, a shutdown of the government on the debt ceiling issue? >> well, again, it's the same answer, what we're looking at doing is delaying obama care for a year. i think democrats would be open to that, especially, a lot of the democrats that are running for the united states senate because they're hearing from their constituents who are scared out of their minds about the premium increases and getting notices in the mail now, for instance, saying they know longer have health insurance. and we heard about walgreen's yesterday letting a thousand people go off the current

health insurance and put on a private parallel exchange market. this is happening over 250 businesses across the united states. stuart: that's true. >> that have already reduced so we have to do something. stuart: but it's a political calculation, isn't it? you say it's the president that's pushing. >> it's political, but economic. it's political, but it's economic because we're all about jobs creation and getting the economy back on its feet. stuart: if you shove it down, don't republicans get the blame if you shut the government down. public doesn't want the government shutdown. >> we have zero plans to shut the government down. we have the full faith and credit act in our proposal on raising the debt ceiling and delaying obama care for one year, i say that's a pretty good deal for the american people. if the president decides he's going to shut the government down. stuart: it won't be seen like that. >> there will be problems. stuart: the public doesn't see it like that. >> that's what the media says. that's what the media says and that's not what we're hearing from the american people, stuart. we're hearing, they're saying

to us, they don't want the government to shut down. they doesn't want obama care, they want us to fight for them. let's face it, president obama has been willing to go to the brink to get his agenda through. his agenda isn't working. the american people want job creation, they want the economy to work, and they're expecting us to put up the fight for them. stuart: we hear you. michele bachmann, thanks indeed for joining us. come again soon, we've got to follow this confrontation all the way through. >> will do. stuart: where is the state of the markets? okay, it's thursday morning, check the big board after a rally yesterday. now we're down a point, two points, there you go. but still, 15, 674. duelling governors square off. maryland versus texas. rick perry is going after maryland's businesses, showdown. it happened. we'll tell you next. ♪ clients are always learning more

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>> this is the market that's moving. gold. 1361, up $54 an ounce. i've got a big name, you know, j.p. morgan, and they'll settle charges of the london trading debacle. the fine about 900 m millionment the stock is flat. and there's a fight between rick perry and the governor of maryland, martin o'mally. perry tried to lure businesses out of maryland and try to get them to go back to texas and the two of them faced off over an ad perry is running in maryland, telling business owners when you're tired of

maryland squeezing every dime out of your business, think texas. and the governor fired back, saying perry and other governors believe in the slash and burn, somehow believe that less becomes more. and liz macdonald watched cnn and reports on it now. >> an ugly fight. the fact that rick perry is taking it to maryland, they're looking at the job growth, worse than louisiana, alabama and he's fighting back. the maryland governor is saying texas has more poor people and lower median income and more people without health insurance. stuart: maryland has the federal government workers, for heavens sake. >> and texas a tracts a lot of people because of cheap housing and the weather, a bigger population, but for rick perry to bring this fight right to

maryland shows that the debate really is how the state governors run their states and that's where the debate is an important debate. >> it's a nationwide debate. >> it's a nationwide debate. stuart: and the taxes and-- >> texas does rank worse for taxes on mature businesses, but maryland, and the maryland governor didn't say this, maryland ranks worst on taxes for new companies where texas ranks better. and so-- >> both of those governors want to be the president. >> that's right. stuart: i don't think either will do it. and maryland is talking how they want to tax small businesses. when he's talking about taxing the rich, the upper bracket, that's small business. stuart: didn't he define rich as $100,000 and above. he defined rich down to 100 grand. and i've got more, this is the confrontation issue and it arrives today on capitol hill. the house is scheduled to vote on a bill that would cut food

stamps by 40 billion over ten years, and reduce benefits by-- from 4 million people. the white house says, yeah, it's going to threaten this bill. and this is the coulden fronttation that we're talking about on a variety of issues, but it arrives today on food stamps. >> it arrives on food stamps and you'll see the fight center on this, able-bodied people should not get food stamps. they want a work means test in there for able bodied people and could knock 3 1/2 million adults off the program. >> that's the deal. the able bodied people able to work, knock them off, that's what the republicans want to do. >> and bring it who it's meant for, truly destitute that can't get jobs. >> it will push through. >> i don't know whether it will pass through the senate. a big fight i expect and they're attaching it to farm bills, and whether it will be buried. but, this is again, the debate

that the g.o.p. has been wanting to have, saving the program for the truly poor and making people who can work get work, right? and it also brings up the poor economic growth in this country. people who are at minimum wage jobs through reasons of economic policies coming out of the states and washington d.c. at that has them in part-time jobs and minimum wage workers on food stamps. that's where the debate should be. why is the economic growth in this country so poor, so bad that people are on food stamps even while they're working. stuart: i keep hearing the expression, food security. it popped up in the food stamp question. x number of people are worried about their food supply that's different from children are starving. >> that's a different way of phrasing it. stuart: control the language, you're going to control the policy and the debate. and liz, thank you indeed.

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>> add lent used to be a part of hewlett-packard. it's going to spin off its electronic business, and the thing is up nearly 7%. housing news coming to you in a couple of minutes. the existing home sales number, a big chunk of the housing market. trouble in housing is why ben keeps printing money. the numbers for you sharp 10 a.m. eastern. >> and plus he's not laughing alt steven colbert. wait until you hear what colbert did on his show that got levy so fired up. ben bernanke is the most powerful man in the world, he runs the printing presses, he says, give me another trillion and it happens. that's power. you may hate it, you may love

it, but you can't deny it. right now, ben has more clout than anyone. so, here is my take on impact. in a word, huge. again, i'm not for or against ben and printing, i'm not arguing a position. i am reporting the staggering impact that yesterday's announcement had on money all around the world. stock markets in india, indonesia, malaysia, thailand, japan, new zealand went straight up. germany's market hit a new high. i cannot count the trillions in gains, oil up, copper up, gold way up. bond prices zoomed bringing interest rates way down. all of this because ben bernanke told the world that for now, he would keep printing money at the rate of a trillion dollars a year. japan did something similar and brought a nice little pop, but nothing like good old ben. he has global impact. however, you know what's coming, however, you have to be a little troubled when everything goes straight up and the economy is going down.

ben is propping up president obama's failed economic policies. ben is telling us the economy is fragile, but the world is holding a massive party. so, here are the questions that are already being asked. if you can't stop printing now, when can you? and if you never stop printing, aren't we all living in a fairy tale land? and what happens when we unplug the printing presses? i'm not going to try to answer any of the questions right now. i'm just looking at ben's power and his impact. of course, impact works both ways, doesn't it? you know, at some point, we will probably be here reporting on the down side of all of that printing and impact. for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions...

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then keeps printing bailing out failed obama policies. investors love it. gold to the moon, lot going on pluses. another sharp edged editorial on the president. dan henninger wrote it and he is here. another blast at ban from the judge. if you like bold you'll love judge andrew napolitano and he is here too. the beanie baby guy with the secret overseas bank account in declared in full, $53 million in fines and andy levy is here. steven colbert mocked him. jimmy the robot did uses here.

no clue what this e t look alike is going to do for me. sorry. i am still on. i have to tap dance for five seconds because that 10:00 which is right now, we get existing home sales and the number is, drum roll please. what was that? 5.48 million existing home sales, the highest rate since 2007. up 1.7% august versus july. 5.48 million homes per year being sold. existing homes being sold. that is not a bad number. >> i am happy because i think we were going to see existing home sales go down a little bit.

this is a great number for housing. stuart: i don't know if investors are doing about buying or youngsters, 20 or 30 somethings buying a house, a home as opposed to investors buying a house. any breakdown? your customers, you still real-estate. they are investors, all of them. >> not all of them but lot of my clients are investors including big funds and we are seeing a lot of tools come back to the market that these are picking up. those numbers are being inflated by investors. stuart: you must be celebrating ben bernanke printing money because mortgage rates will come down and there's a lot of money sloshing around out there, you are nodding your head sagely. you love ben. >> it is bittersweet because there is a fallout in the end with inflation but it is great for housing right now because we have to get polk first-time homebuyers back in the market. we have to encourage people to buy homes that are going to live

in them. i love my investors, selling investment properties, renting them out. that is money in my pocket. we have to get to a market where people who are living in these homes are buying them. stuart: it occurs to me that maybe the pace of existing home sales is slowing down a bit, up 1.7% in august over july versus the 6% gain in july over june. you could read that as a mild negative that things are slowing down a little bit. i don't expect that you have seen that because you have these investors clamoring to give you some money but that may be a bit of a slowdown. >> it is my favorite word, stabilization. we are starting to see the housing market stabilize. that is a good thing and i will keep saying it because we don't want to see large spikes. large spikes mean we could come down. we want to see a steady number

in housing. stuart: you think that is what we are seeing. >> i do. that will pull back from 6% to 1.7% is a good thing. the other thing i thought was really interesting this week was the mortgage bankers association came out and said applications were up 11%. that may be because ben was about to raise the rate but that is a good thing because mortgages are coming back where 30% of the market has been cash. stuart: i got to go to nicole petallides and see the home builder's after these existing home sales numbers and freddie mac came out and said the 30 year fixed rate loan is pegged at 4.5 zero%, it was 457 last week. nicole: looking better after the latest numbers, moved into the green ever so slightly. moments before this they were all to the downside. they had huge gains efta as the

fed kept everything the same. everybody thought mortgage rates would be lower. the group overall reacted to the fed news and took off. today it was wait and see mode on this news and since it was good you see the market mixed so they are moving to the green. stuart: thanks very much. i have tanya standing by and we will talk about that car she bought and took advantage of my subsidy. we will talk about that for a second. i will show you the price of gold still nicely up, $56 higher. charles, what we normally ask you about the stock market. i will ask about gold. why is it up? charles: it is interesting. put this in proper perspective. it is down $400 from the high and all the central many bank printing around world by this point we should have been at 2200, 2400. it found support at 13 and

people, a relief rally in gold. stuart: is bold rallying because the dollar went down? or is gold rallying because people think inevitably when all this money sloshes around you get inflation down the road? charles: it is the latter. people are -- i think a lot of people think ben bernanke blew it. this myopic about an opportunity to put the fed to do something that will harm wall street that everyone was waiting for and welcomed with open arms, myopic about what his mission is. it is not just him, but because of d.c. and other factors but what is it going to take to turn off the spigot when inflation -- a lot of people know inflation now but the official number even in the official numbers he is not going to flip this thing like the light switch. stuart: can't just do that. charles: he has the arrogance of

thinking that he can. stuart: all of our viewers are saying -- liz: he can flip a like a light switch by raising rates. a huge effect on the markets and the economy. stuart: i would imagine he would anyway. tanya is still there paying for satellite time, we got to use it. we have a bone to pick with you. >> every american. stuart: a little background. the energy department is selling the $192 million loan it made in 2009. it is selling it. pennies on the dollar. it is not in good shape. you are taking advantage of my taxpayer subsidy. you ought to be ashamed of yourself. >> you make me feel so bad.

i love my car so much and i think the american public. but i do think we will recoup pennies on the dollar. i am sorry to all those americans who put taxpayer dollars in but i do love my car. stuart: it goes fast, it is smooth, it is quiet, doesn't run out of juice. >> i have a nice mercedes and daimler of mercedes-benz, but i will never not by an electric car again. is the most amazing thing i ever purchased. i have an s 150 some odd balance it out when it comes to gas and everything else but i absolutely love it. stuart: you never buy another non electric car again? really? >> no. honestly. first of all i put in $30 of gas and i get 450 miles.

i get to drive in the carpool lane. this whole thing is amazing. i can go into the office at 8:00 a.m. when everyone is looking through traffic and i am not. stuart: you made so much money are still worried about the price of gasoline. charles: made money in the first place. >> and teconomy. when ben doesn't even believe in it. stuart: all this free advertising from "varney and company" and a subsidy from us all and walk away laughing. you are out of here. >> i don't know how it gets any better. thank you. stuart: good stuff, thanks very much. new revelations in the irs scandal. the daily call reporting the targeting of tea party groups was inspired by coverage in the washington post. give me the story. liz: the irs takes its cues in washington from columnists. he sensually saying that the irs workers were looking more closely at the tea party groups because of media coverage.

stuart: what did the washington post say? liz: some columnists equating them to militia groups saying they were smoldering with a anger equating them with a brand of patriotism, the ku klux klan. for the irs to be doing this, for decades has been using the media reports to direct what it does. why not stick to the law? stick to what the law says about whether they can do education will things like the tea party groups are trying to do. stuart: i don't think the irs agents were inspired by the washington post. i think they were inspired by the desire to beat up the tea party and about president obama. liz: the sensitivity do to me via attention, this is why we will classify these groups, direct them to cincinnati, again and again this is a scandal, the white house wants to go away. this is the most explosive scandal that can hurt the president besides ben gauzy and that is what the irs does in political abuses. that is what white house does not want.

stuart: thank you. back to nicole petallides, write a stock moving hire. more money than expected. where is it now? nicole: it is looking great, hitting a new high, levels we have not seen since 2007, up 13%. facing serious competition with cbs and walgreen's but they have come out talking about high-margin generic jobs that helped write a along and you can see the popped this year, the stock is up over 200% this year. is a 211% why you see that major powder, there it goes. stuart: i got to give credit where credit is due. i remember distinctly you were talking about right aid when it was in the $2 range. charles: $2.86. april tenth, april eleven, may and june pounding the table on this and a lot of years bought it because they send e-mails. no one send me one day.

stuart: malware is four times now. where do you see it going? charles: i haven't had a chance because it was a crazy morning. i sit down to our subscribers saying we will raise our target, holding it for right now. the flip side is taser we did take profits from. stuart: that went straight up. you like it, it went straight up but you took -- sold it. charles: i will buy back. i love the long term theory. stuart: i didn't take profit. you sold the thing. charles: times i -- we made 40% in two weeks and took profits. stuart: i will never suggest you speak english again. charles: you are my english teacher. you helped me a lot and i have a long way to go. stuart: take that. guess who was so fired up about what ben did yesterday he sent an e-mail saying slowed, no uncertain terms. the minute the news came out he was on the e-mail system.

is 20 hour wait is over. judge andrew napolitano is here. nascar is about excitement. but tracking all the action and hearing everything

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stuart: never mind the power ball small potato. look at grand theft auto 5, route well on its way to being a $1 billion sell-off, to $800 million in the first day. not bad. look at facebook, not losing momentum. another new high right now, $45.62. charles is going to make more money, pretty good track record, gte advanced technology. i don't know what it does. charles: this is a wild one, up big making a nice break out. they are involved in glass, safire. i don't know, as your phone ever cracked broken? it is a big deal. the sapphire you make for this seems stronger, the diamond, it is three time stronger than the glass we have now. backlog for this product has grown exponentially. that is the drive -- stuart: they make fabulous glass

screens for phone that won't break. charles: it will take a lot more to break in. stuart: you are recommending an hour after it has gone up 13% today. what a guy. charles: i think you will be a grand slam. charles: -- stuart: with the other when? charles: coming later. stuart: with bated breath we await a more conservative one. wait for it, here it comes. been going to keep on printing as soon as the news came out yesterday at 2:00 p.m. eastern time with got an e-mail from the adjourn andrew napolitano. what is wrong? judge napolitano: in the d.c. bureau yesterday everyone was commenting and you did as well on neil cavuto, you really agree with me but don't want to admit it for the sake of this conversation that the market had a remarkable turnaround when ben bernanke unexpectedly announced as a swan song to his friends

who like cheap, easy, free, printed cash, wall street crowd, he would buy another $85 billion worth of bonds, basically creating the money out of thin air. stuart: this will produce a bubble. judge napolitano: this is artificial. how is this going to be paid back? how can we claim this is prosperity when we are passing along printed value less cash from a bank that has the authority to do this to the pockets of profittakers on wall street. stuart: may i explain? how will this be paid back? it doesn't get paid back because it is not borrow money. the federal reserve has a big chunk -- hold on. $3 trillion in the coffers because it has been putting it out there, buying paper and paying money for it. that puts money into the economy. hold on. hold on. $3 trillion in the coffers and when it wants to reverse that it

starts selling the paper that it has got, pulling money back in. it replaces it. this will -- judge napolitano: this will produce another and sustainable bubble, and artificial government orchestrated and natural accumulation of assets in a place where it doesn't belong. stuart: you said that i don't know how many years ago when this money printing started four five years ago. it will create inflation. where's the inflation? judge napolitano: it would create inflation, i may have said that, there's no inflation now, the fed wants more information. that is how wacky they are. they want prices to go up but it did create a blend will create another bubble. stuart: where's the bubble? judge napolitano: the bubbled of 2008 was a housing bubble not orchestrated by the fed but by the government manipulation of the market. lend money wherever you want and we will buy the mortgage. take all the profit you want because we will print the cash. that is unsustainable. stuart: is this a stock market

bubble? identify the bubble? judge napolitano: i can't identify a bobble but i see something summing when profits are taken on artificial cash. suppose janet yellen stops the printing. what will our friends on wall street do? down, down, down, down. charles: i have done research and last time you said hydrates we pulled back one time, 7% and the the time 5%, we had rallies of 44 months or 70 months. my problem with the fed to be quite frank with you is the money doesn't get to main street. it only -- giving the federal government money and the big banks' money but people watching this show haven't got that money and they are on the hook for any risks created by this. stuart: they got a lot out of this, 401(k), college savings, ira, pension. judge napolitano: 401(k) generated by an announcement thursday afternoon that the fed

will print $85 billion is an artificial increase that cannot last and cannot be sustained because at some point the printing must stop. agreed? stuart: at some point the printing must stop. judge napolitano: all the cash will be utterly value less. stuart: that is your prediction? judge napolitano: is not my prediction, it is like saying 2 plus 2 = 4 is your prediction. if they keep printing $85 billion every month eventually what is in our pocket will not be able to buy a loaf of bread. charles: the irony is they want it to be worth less. than want it to be worth less so weak and multinational corporations can compete on the global market and manufacturers can compete. judge napolitano: do you share ben bernanke's ball that he wants more information? stuart: i am not the subject of this discussion. i am just a moderator. judge napolitano: actually brought the two of us very close. it is far deeper than charles.

the fed is far greater. charles: i wish the fed, and with you in that i wish the fed didn't exist and the idea be soft landings. we are always trying to engineer a soft landing. judge napolitano: if ben bernanke had better enjoy this and didn't speak yesterday, do you think the stock market would have gone up after 2:00? charles: i don't know. judge napolitano: an announcement we will print -- charles: the dow was up 1% and today it is down. judge napolitano: at some point. charles: the fed whatever is they are trying to do if they felt it would be made a call but to start capering yesterday and admit that he failed, wall street was ready and he didn't. he made the problem worse, not better. stuart: let's get the reality to intrude. janet yellen is certainly going to be the next chairman of the federal reserve. it really does seem that way. therefore she is likely to keep

on printing lot of money, not necessarily $85 billion a month. do you think this end to the money printing, where do you think it will come? it is going to have to come at some point. judge napolitano: no president wants it to end on his watch because every president would like artificial belief in prosperity while he is in the white house. stuart: except ronald reagan who backed all malt on 100%. judge napolitano: close to returning to a gold standard. to give you a little heartbreak. judge napolitano: stuart: dream on, judge. judge napolitano: never be the chair of the fed. stuart: i lost control of this discussion. judge napolitano: one rant and he becomes president. peter: when you made your point and we listened to you. i am not the only ones getting lampooned on comedy central. steven colbert polk them at

andrew levy who joins us next. find out what steven colbert did to get this response. >> read i has been around 6-1/2 years on the network your obsess with. mocking our rage on all sides is the kind of thing we do every night. the reason you are one of many people your staff giving five minute of research before you do the equivalent of running something from the onion as a real newscast. [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. if you believe in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors who think like you do: face time and think time make a difference. join us. [ male announcer ] at edward jones, it's how we make sense of investing.

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that they too are shopping at pier one imports like you used to? the stock is down 10%. the new apple iphones go on sale tomorrow. is it spiking because people expect inflation down the road or because the dollar is down today? sandra: everything is on sale today. gold is only priced in u.s. dollars. when we print more money here, we devalue the dollar.

those commodities go on sale. that is what is happening. stuart: a long time since i have seen not. look at this. >> are you as mad as i am? >> i am so disgusted right now. stuart: andy leavy is here. >> you do not have to think it is funny. you have to know it is a joke. of all people, you should know when someone is sending out rage. we go after the left, we go after the right.

a lot of times, when you mock someone, you mock them by pretending to share their outrage. somehow, they decided, either they did not get it, which i find really hard to believe, or they decided they did not care. stuart: they do not like fox, they do not like you. they went right after you. i think a lot of people were upset. charles: i think the white house knows that people are upset about it. that is the egregious part.

>> there were pictures of president bush. i just, i cannot believe anyone. do you really think it is a big deal? >> a lot of people do. stuart: ronald reagan would not even take his coat off in the oval office. >> yes, but it is 2013. stuart: jon stuart took aim at me. here we go. >> any patriot view this as anything but a development. stuart: president obama just lead us into a defeat. >> who did we lose to?

sanity? stuart: extraordinary stuff. we have the wall street journals dan had and agreement with me. he wants us to send a message to republicans. remember what happened last time, he says. five years into his presidency and it still looks like he is running for office. ♪ this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out.

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stuart: time warner, the creator of the beanie babies. he has agreed to plead guilty on tax evasion. what his lawyer says about it. he will pay a fine of $53.6 million. charles: i think that is terrible. he did not report the 3 million.

the 3 million that he did not report, he gets a $53 million fine? this is all part of teaching the 1% a lesson. he finally said i will give it a shot. they take all the money that he saved. he came up with the beanie babies. last year he was driving through santa barbara. he was lost. he asked for directions. he wrote a check for $50 said i will give you more money later.

>> who among us has not forgot in. charles: even if you did forget -- >> $53 million, that is absurd. stuart: president obama certainly has his way of doing things. from where he sits, it is the job of the political world outside to adjust and conform to the president mental orbit. those that do not are attacked. we have the man himself right here. make your point. >> he is about the anti-political president that we have had in the postwar period.

obama does not operate that way. one of the hardest things imaginable is going nowhere at the moment. he is not going -- and he calls and john boehner. they go out and support him. a big deal. now he gives a speech this monday ripping the congressional republicans. stuart: it is a winning method of operation. he will blame the republicans.

it is not his fault. >> that has kind of been the strategy. the question is are the american people getting tired of this act? they have no good ideas. i think most americans understand that he has to engage in political negotiations with the other side. it is beginning to strike the american people as the president not doing his job. i think the strategy here is to try to win back the house in 2014.

they can pass a continuing resolution. they are not likely to lose the house unless they get into a situation where he can blame them for the gridlock. stuart: his only shot at coming back strong for 2014. thank you. the most powerful columnist. that is a battlefield promotion right there. check this out.

a 3d printed robots. i think it looks like et. intel has sent it to us. i have no clue what this thing will do. we will find out. ♪ my customers can shop around--

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♪ >> people filing for first-time jobless benefits. of last week. a backlog of unprocessed claims. coles is planning to hire 53,000 associates this holiday season. coles said hiring again this month. the winning powerball ticket, $400 million. sold in lexington, south carolina. the cash option, 200 dirty $3 million. a robot. next. one of his arms fell off moments ago. that is why we were laughing. we have the arm back on.

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stuart: a string of new highs in the last 18 or 19 hours. one of them is groupon. nicole: you have the analysts upgrading. e-commerce basically shopping with apps continues to grow. it accounts for half of the total transactions in america today.

this will all materialize for groupon and higher margins as well. up 155%. stuart: i guess that some of us would actually take that. what is this? the catamaran. charles: we are up over 20%. we are down on pier one today. pharmacy benefits management. it is a technology play. record revenue. the ceo was on fox business recently. something with tremendous long-term growth. it will be absolutely huge.

stuart: any way of cashing in on that aging population. intel got to us. they gave us a model. they call it the robot of the 21st century. the man who is basically running this thing is with us right now. he is an occasional guest on "varney & company." >> it is designed to look friendly. stuart: it will be friendly. >> we are open sourcing the design. what would you do with this? how would you design it?

you already have one that can do the vacuuming right now. this could work from a healthcare standpoint. stuart: what? i do not get it. >> your smart phone is widely different than mine. imagine all the different things that could happen. the longest time, robots have been something you have seen on science fiction. now, you can actually bring them into the home. >> talking to a man here who still use a black berry.

stuart: would you use this thing? >> sure. why not. >> you are just old. that is your problem. there could also be a healthcare robot. it can have those different reminders. think of it as a laptop with legs or a smart phone with lags. charles: i love that you brought that up. we started designing this in science fiction first. we definitely will. we will have as much control as

you would with your cell phone. >> would this be something that you would sell or would you put the plans online and people would do them themselves? >> here are the files for free, but you can change them. the rest of it will be a kit. you will be able to 3d. about 80% of it. stuart: you print this out with a 3d printer in your own home. you create what you want to create and you put apps into this thing to make it do what you want to do. >> we are looking at may 2014. stuart: fairly soon.

>> if you download the book for free, that kind of explains it. we are getting people together in november to help us build this. stuart: and less than $1000. >> i am pushing for less than 500. stuart: i am glad that intel got to us. that was interesting. mispronounce a word, miss out on $1000. yes, that happened. we will show it to you next. ♪ who think like you do. face time and think time make a difference. at edward jones, it's how we make sense of investing. if you have business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance,

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♪

♪ stuart: can you imagine losing the opportunity of winning a million dollars? a wheel of fortune contestant lost that opportunity when he could not pronounce a word correctly. [inaudible] stuart: okay. you saw it. the opponent said the word

correctly. it sounded to me like -- stuart: did he deserve to lose? charles: on this one, i do not think that he did. stuart: it was obviously a mispronunciation. charles: i marvel at the words that you mispronounce. [laughter] i know we are in a tough area. i am one of these guys who says that you have to earn things. stuart: by the way, he spelled the word incorrectly.

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the last hour my take on ben bernanke's positive impact factory yesterday's big decision. the news may be good but it was troubling to see a rally with the economy in decline. here is what you had to say. printing money does not mean there is anything behind the money. we can print forever. linda. i find the whole thing self-serving and i don't like the server or the ones being served. twitter, we are all watching the same train wreck. someone to avoid it to save lives. others won the vultures to would july -- to enjoy. dagen: more and ben bernanke. passing the buck or make that big bucks. the head of the federal reserve stands fast and keep the cheap

money flowing. pulling back on all of this stimulus, and now his successor's problem. let the u.s. pay syria's embattled leader says the united states picks up the tab for the removal of chemical weapons will build a lot quicker. the city's most at risk for natural disaster, not good news for one of our nation's biggest. all that and more on this hour of markets now. connell: let's do this. they make it is so tight, it is like mrs. wiggins from the carol burnett show. connell: of to a great start. with that let's go to nicole petallides on the floor of the stock exchange before we get monica crowley in here. nicole: the dow jones industrials down 16 points, started in the green today