connell: that was very cute. is king today we are going with? stuart: we have not decided yet. i like duke. we will talk about some big bank bashing. maybe something that could hurt the overall recovery. we were very happy about this this morning. robert shiller winning the nobel prize for economics. a snowstorm in south dakota has

dropped out cattle. all that and much more at this hour of market now. all right. good morning, everybody. i am connell mcshane. dagen had to leave early today. i will take you through the hour. nicole petallides imposition at the new york stock exchange to start us off. nicole: good morning. three days last week that showed some stellar gains. today, obviously, there are some

frustrations. last week what we saw was a winning week on wall street. we keep an eye on washington now as the october 17 date is looming. a lot of the traders i speak with think that they will somehow come to an agreement. even this morning, that is what the traders were telling me. we will continue to watch the nasdaq. the only up arrow i see at the moment, other than the mix, is gold. connell: this kick the can seems like the best case scenario right now.

peter barnes is that the white house with the very latest. all eyes right now are over on the senate for a budget and debt ceiling deal after the white house rejected a deal from white house republicans. harry reid said he spoke with mitch mcconnell. about one dozen senate democrats or republicans are still trying to hold onto a proposal from susan collins to try to hold off on this proposal.

it does require new obamacare anti-fraud verification measures. it would also jumpstart the budget negotiations with a deadline of january 15. this group of 12 includes democrats of west virginia. the mac when they come from different backgrounds, we are considering our friends are. where our colleagues would be. also, the good of the country. this is a good template. i think that it is the basis of what is going to happen. >> harry reid has reject did this. the issue is it keeps the discretionary cuts going for too

long. republican senators said this morning, it will not fly with them. take a listen. >> i do think that senate democratic leaders have realized that there is no way senate republicans will agree to that. i think they are now back into a place that may lead us to a conclusion of this in the senate anyway. peter: a spokesperson for senator reed says they do not have any problem with the cuts going to the end of the year, but they want to talk about wells for 2014. connell: peter, thanks. we were talking for so long about how the republicans are taking the blame for this. are the senate democrats risking

overplaying their hand a little bit. >> i think that it is the fault of the media. the president says i will not compromise. he is supposed to be a leader. connell: though polls have shown that the house republicans shut the government down. they were taking the blame. >> that is perception. the fact that you are right and i am wrong or you are right and i am wrong does not necessarily matter. if somebody said, look, i am not going to compromise. why is he not wrong? >> i do not know if we need to

rehash the whole thing. >> their argument is if you just brought it up for a vote, it may pass. >> it is incumbent among the press. they cannot just say, the republicans are to blame for this bid that is crazy. connell: let me ask you about the markets. the perception today is there will not be a deal in the market goes lower. october 17 is not an exact date. >> i do not think it is a problem. i do not think that the markets will go down 500 points or something like that. the government is us. we are the taxpayers.

the first 250, well, we have taken 250 billion a month in tax revenue. we reach the crisis. the debt. gets deeper. we will pay it. we went to detail explaining what may happen. here is the point. there are bills that would not get paid. is it not, potentially, a problem for the united states of america to not pay a bill. no matter what it is. >> the greater problem is when we go broke.

>> we have been printing our own debt. the public does not understand that. >> i am not concerned. they will find a way. even if the president hides in a closet. somebody will come out and lead us through this thing. connell: one of our favorite guests. the nobel prize for economics science was announced this

morning. robert shiller was one of the winners. he is noted for his report on home prices. we have not been able to get in touch with professor shiller for whatever reason today. the story everybody around the office seems to be talking about today. worker productivity is low in england today. it is low here in new york. patriots one with a last-second toly. look at that. david ortiz grand slam.

tied at one game a pieceewith detroit. this is a great stat for our business audience. the lowest point, the probability of both teams, red sox and patriots coming back to win those respective names is 0.2% probability. they both wondered that is pretty cool. say goodbye to wayne rogers. they were right to go for it on so forth down. that is my sports commentary. that has been all over the place. he was playing the odds. coaches should go for more on for around, but they don't. anyway, they won. you do not care. more devastation on the cattle market. this storm, it seemed like nobody reported on this storm

last week. cattle casualties are running close to the six digit mark. this town that facebook is building for its employees, and incredible lifestyle if you worked for facebook. netflix and cable operators. they are usually at odds with each other. they could be working on a deal. we will talk about it with dennis knnale coming up on markets now. ♪

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connell: we talk a little bit more about this, this catastrophic snowstorm came south dakota last week. it left nearly 100,000 cattle dead. most ranchers in the state lost

anywhere between 50 and 75% of their herds. this could mean higher beef prices. phil flynn joins us right now. >> it has been devastating. you can feel the pain in their voices as these prices soared towards record highs. they set a record high on friday. they pulled back a little bit. nobody really knows how bad this will eventually be. we are talking a lot about south dakota. that was not the only state that was hit. you have wyoming. you have parts of nebraska. this could become bigger as time goes on. i talked to 15 or 20.

they just not know. they will not know the full extent until spring. connell: we did not get into it as much as we should have our first. phil, we will check back in with you. now we have facebook. nicole petallides rejoins us with the story the 20 facebook has agreed to by a start up company. this is interesting. it is an app maker. on the website it says there was not too much details. pay between 150-200 million. this will make the biggest acquiiition in israel.

it helps people cut their mobile costs through more efficient use of the data. you can see the facebook stock right there. watching this one very closely. connell: thank you very much, nicole. we will talk about raising the white flag here in a moment. why the republicans need to give in and cut a deal with the democrats. jeff flock will have that. why netflix may cut a deal to cable providers. we will get to all of that with dennis kneale. first, a look at world currencies today and how everyone else is faring against the u.s. dollar. ♪

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>> 22 minutes past the hour. a volunteer taken hostage in syria are now safe. no word yet on the other three

workers that were taken. fights are back to normal in l.a. the fbi is investigating. commuters in san francisco did not have to find another way to get to work this morning. tomorrow could be a different story. those are your news headlines on the fox business network. connell: frustration is building across the country. it is time to get serious. jeff: giving a voice to busiiesses.

we always do. a company that has been around since 1905. harold schafer, the latest in a long line of schaeffer's to run this company. you did not vote for the president. you hate obamacare. you say wait a minute, we still have to make a deal. the time has come. >> i think it will have serious effects on our economy. it already is. jeff: there are some republicans that say we do not need to worry about this. it is a false deadline. >> i believe that it is critical. i think they should go ahead and vote, pass.

it is all hinged on obamacare. i feel like obamacare will fail anyway. the repuulicans know this. it already is failing. jeff: you think obamacare will fail on its own? >> it already is failing. people cannot even get online. jeff: very much opposed to the

administration. listen, it is time we move on here. all day long here at the schaeffer broke company. connell: it is interesting. thank you. the vix perspective is you and your 401(k). we will show you why that is the case. why life is getting a lot better for facebook employees. first, the markets for today. s&p winners, including netflix. we will talk about later this

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connell: so we're at the half hour, and here's a look at what is coming up on "markets now" @oday. what the bears will be going after if washington doesn't get a deal done. we're talking about your 401(k). then bank bashing, that's in these days. how it could hurt the entire economy. and long-time enemies of the marketplace, netflix soon may cut a deal with cable operators. so we'll have that. general motors today making a few headlines, opening up a new plant in texas, but also taking on its electric car rival, tesla motors, with a new plug-in

cadillac. a lot going on, nicole, how about the stock? >> reporter: we'll continue to follow this story from now straight through january when the new electric car will be available from general motors. of course, tesla has outpaced just about every stock on wall street this year, tesla's up over 400% this year, but gm is not too shabby itself, so the big news today is that gm will have an electric plug-in car, and it will be the cadillac brand, and it will go on sale in january of 2014. it's a plug-in coup, a starting price of about $76,000. includes fees and the like. of course, may be eligible for tax writeoffs or tax exemptions of about $7500, but going head to head against tesla in this market. back to you. connell: here we are, day 14 of this government shutdown, and you still have hundreds of thousands of workers furloughed, still do not have a deal. mike emanuel joins us now from

capitol hill. on monday it looks like it's in the hands of the senate, right, mike? where do we go from here? >> reporter: that's absolutely right. and the focus of the talks between senate majority leader harry reid, the democratic leader, and mitch mcconnell, the republican leader, is that reid would like a longer-term debt ceiling deal. he would like to run this through the next election, say, to the end of 2014 and a shorter-term government funding deal. bottom line is he would like to fight over those cuts that were made in 2011's budget deal, so he'd like to have a short-term government funding plan to be able to fight on that and to raise the spending levels, if you will. senator mitch mcconnell would like to raise the debt ceiling for a long period of time -- actually, forgive me, senator mitch mcconnell would like to fund the government for a long period of time but would like to fight over the debt ceiling again in short order. and so there you go. each side trying to argue for what they think is the better argument they can make. connell: i guess we shouldn't be

so surprised after all the -@optimism on friday that this s looking like it's going to run out, you know, the clock right down to the end. because we are running out of time if you believe the deadline the treasury department's set. anything we should be optimistic about? >> reporter: i think everybody's going to be watching this afternoon about 2:00 to listen to the tone there reid and mcconnell to see if there is an update on their talks, if there have been more productive discussions again today. talked to some leadership aides who say a deal is possible within the next 24 hours. not a guarantee, for sure, but that's what they're working toward. but the clock really becomes a factor, because procedurally things can take a long time in the senate, and then you've got to send it over to the house. and so they really are up against it, but that's quite often when some kind of deal comes together. connell: well, we'll see. mike, hey, thanks for a few minutes today. thank you, buddy. obviously busy over on the fox news channel. meantime, here at fox business you should be worried, and we

are, about your 401(k) and mutual fund holdings that could get hit if there is no deal by later this week. dan clifton joins us, head of policy research, he's also down in d.c. should we -- this is kind of the discussion you have, as we said earlier in the hour, we got into this about, oh, the side that says, don't worry, if there's no deal, you can still make the payments. you know both sides, and others that say, no, you never know the market could really sell off. should people who are just casual observers in a 401(k) that have mutual funds, should they be worried this week? >> well, we should always be worried about the direction of the country and whether we're going to default on our debt or have a technical default on our debt, but if you look at 2011, the last time we went through this debt ceiling, there was a pretty big decline in the stock market, about 13.5%. but we're up 40% since that time. so if your time horizon for your 401(k) is over a long period of time, particularly for young workers, this is just going to be a blip on your radar screen.

as you get nearer retirement, you should be less affected by short-term volatility that's going to happen. i would say that we saw a pretty big development last week when we saw both speaker boehner and the president of the united states say that if we need to, we'll do a short-term increase in the debt ceiling to prevent any type of disruption, but you never know with these guys. the egos are pretty tough, the negotiating's pretty hard. connell: it's your job to give these, you know, you give all of us advice on what's going on in washington that could affect our investments. you're almost saying, and i could see it, and we haven't talked enough about it, hey, listen, we've been through this before. and there will be a deal at some point, so that's a an argument for buying if there's a dip, isn't it? >> that's correct. we're working with institutional investors who are managing pension money and mutual fund money for working americans. so we want to be able to manage risk and make sure there's not

some major negative event that happens in washington that could really hurt their investments. and there is some risk going into this debt ceiling fight. but at the end of the day, if they don't act by october 17th, october 18th, you will start to see market pressure build in as the market questions whether congress can get this done. connell: right. >> normally, we treat these situations as normal, but because we've had a government shutdown, there could be an extralation, and maybe that -- extrapolation and maybe that does create a buying opportunity. we have to evaluate on a day by day basis. connell: one political question before we let you go, you mentioned it already and mike emanuel reported on it for us and now that the senate seems to be controlling this and the talks didn't go anywhere over the weekend between the leaders there, do the democrats risk overplaying their hand even though it looked like they had a big advantage at the end of last week? >> it's a big theme that's emerging. that "wall street journal" poll that came out on friday was disastrous for the republicans, and over the weekend the

democrats upped the ante. i've got to tell you, this could all change if the house republicans decided to do a short-term clean debt ceiling increase. it would really change the dynamics because the house republicans are being blamed. they would be going from the bad guys to the good guys almost instantly, and then the burden would be on the senate where there's a 60-vote requirement. i believe that's some of the equation that's going on. connell: are you predicting that? >> well, i'm not predicting it. they're going to have to take the temperature of their caucus at noon, but with i do believe it'll be a possibility if the senate is not able to reach an agreement over the next 24 hours. connell: dan clifton, thanks a lot for coming on. now, the energy market has been in flux, gas prices low, so why are middle eastern countries still producing at record levels? we're going to get into that as we continue on "markets now," and it's a great time to be working for mark zuckerberg. facebook's building its own town for its employees, and wait until you hear the latest perks.

and netflix looking to cut a deal with its cable operators. dennis kneale has the story coming up, "markets now." ♪ ♪

sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. >> i'm joling kent with your fox business brief. half of older workers say they will delay their retirement plan, 47% of workers over 50 now expect to retire about three years later than they thought

when asked ten years ago. most now plan to work until about the age of 66. general motors is opening a $250 million metal stamping plant next to an assembly plant in arlington, texas. the factory will produce parts for tahoes and yukon suvs which used to come from ohio and michigan saving an estimated $40 million a year in shipping costs. and ikea announced sales grew to $38 billion in the latest fiscal year. the privately-held swedish company said significant progress was made in north america, and market share grew in russia and china. they have 338 stores in more than 40 countries. that's the latest from the fox business network, giving you the power to prosper.

stick wi innovation. stick with power. stick with technology. get the flexcare platinum. new from philips sicare. ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and th that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us vesting billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. connell: we mentioned this idea of bashing the banks earlier, so we're going to talk about the fact that jpmorgan may be a bank in crisis. it reported its first quarterly loss ever under jamie dimon, $380 million, at the end of last

week setting aside some $9 billion, and the bank's legal reserves total 23 billion compared to 31.3 -- 21.3 billion that it earned last year. those are big numbers. let's bring in anton schutz who often joins us to talk banks and does so today about jpmorgan, but also maybe about the impact other banks should be thinking about. if you're a shareholder, tell us how worried a person like that should be. >> well, i don't think you should be tremendously worriedd i mean, i think you should be worried as an american. what i feel the pressure on private business is. if you think about jpmorgan shareholders, they had to absorb the loss on the london whale. but then they got fined an additional billion dollars. now, you know, they did something wrong, the shareholders got hurt, then they got hurt again and fined for that. obviously, you know, if you look at what's forecast, maybe $11 billion if you sort of look at what got added to the reserve,

what are they being punished for? well, legacy of jpmorgan certainly is being accused of doing some things wrong, but they took on washington mutual in an assisted transaction, why are they being punished? they actually helped the taxpayer, the fdic by taking that on and taking on bear stearns, again, pretty well forecast why is jpmorgan being punished for the deeds of bear stearns? connell: well, wwat's funny -- i was going to say what's funny, not funny a in a way that we would laugh about it, but ironically, especially with the bear stearns deal such as it was when it was announced during the crisis and you mentioned washington mutual, oh, what a great deal, look at the price, and now we see what the price was, i guess, of buying bear stearns or washington mutual. >> well, the original deal, jpmorgan was going to buy it for $2 a share, and then they had to up the price when regulators put pressure on them to buy more.

connell: and look at them now. i don't know if there's buyer's remorse, but you used the phrase that we should be worried as americans, and i think you're getting at this argument of, hey, you're jpmorgan, and you have people inside thebacking industry -- the banking industry talking in this way, and you're forced or encouraged to take on a washington mutual, you didn't necessarily need a bailout, you were helping out during the cry dis, what about the other banks? we're showing some of them now, what about the ones that did do a lot of things wrong or, you know, messed up on tear own, whatever it may be? what about them if this is jpmorgan? what do you say to shareholders of other banks? >> look what bank of america took on, right? they took on countrywide which lost tremendous money for the shareholders, merrill lynch which in the early days certainly hurt them, is great right now. but it cost ken lewis his job. connell: yep. >> so -- connell: do you think most of that -- we're past most of that? >> i think a lot of it.

unfortunately or fending on which -- depending which view you take, i take unfortunately as a shareholder, you keep beating up these companies, but it's politically expedient because it's popular. who's bad? it's the banks. okay, fine, approval ratings are high. but what politicians are missing here and regulators are missing is if any american owns an index fund, 16% of that index fund is financials. if it's large cap. if it's small cap, russell related, it's in the 20s. so you as someone who owns an index fund are being punished every time your financial institution gets punished. so it's sort of an interesting way of looking at it. if you own an index, you're getting punished as a shareholder, and almost everybody in this country has some sort of investment in these institutions. connell: anton, thank you, as always, coming on to talk about these ttpes of things. the oil selloff has continued.

we talk about this a lot in relation to gas prices, and for the first time since the earliest days, trading investors likely to be left in the dark about u.s. oil demand, and that's thanks to the continued government shutdown. for more out to chicago we had phil flynn earlier, now sandra smith at the cme. hey, sandra. >> reporter: hey, so really interesting dynamic happening in the oil market right now. of course, the big number we're watching is $100. we're flirting with that level right now, oil prices falling just a bit today off their lows of the session but down about 17 cents at right about $102 a barrel. obviously, a lot of talk about possibly dipping below there. oil's falling because of the shutdown. there's speculation that with all these furloughed workers across the u.s. that perhaps we're all going to use less gasoline, and that would decrease demand for oil to turn into gasoline. but now because of the shutdown the energy information administration, which puts out that weekly oil inventory report that we all see the market trade off of on wednesdays, they're

going forward because of the shutdown, they're not going to be releasing that report. for traders, that's like flying blind. you don't want to take on any new positions or really hold on to any positions if you don't know what this market's going to do when that report first comes out. so we have seen some selling because of that. but also, by the way, connell, there's just periods of bearish momentum in this market. right now we just got some data out of china basically showing their exports were down not only on a month to month basis, but on a year-over-year basis, and they're the second largest consumer of oil only second to the united states. so when you get a weak economic number out of china like that, that's cause for concern in the oil market as well. by the way, all you drivers, ar job bonn gas -- arbob gasoline prices coming down, so we're likely to see this reflected at the pump. connell, the uae energy minister said $100 for oil, his words, fair and sustainable.

traders, on the other hand, are saying we could likely see that number go a little bit down from there. cnl. connell: well, we all have our own perspectives and interests. sandra, thanks. and we do have a little breather here, i'm sure you'll be happy to know, from all this shutdown talk for you. last week we told you about facebook's plans for a $120 million housing community for its employees, facebooktown as we've been calling it, but its menlo park headquarters already have a bunch of perks. for example, he's one of the nine restaurants already on campus serving breakfast, lunch and dinner for free. then what -- when employees need a quick trim, they have a barbershop, a health center. it's already in place. full service graphics design shop for the tech company's more design-savvy employees, and a wood shop for employees to, you know, whatever, construct something, make a kitchen cabinet for your home. the whole point so you do everything at work, and this may be the best example of all, free

laundry and free dry cleaning right there on campus so you never have to leave. they even have a candy store. and after eating all the free food and the sweets, treadmill desks. don't forget employees soon will be able to live on campus, so they do not ever want you to leave. they want you to have all your mealsings, your -- meals, your whole life. so this is cool, but that's really the point why companies do things like that. but we'll keep you up-to-date on town facebook. we're also going to talk about netflix coming up and this deal they're said to be working on with cable operators. usually they're, you know, bigtime competitors in the industry, but the two sides maybe could work something out and bring you a new online video service as well. details ahead, so keep it here on "markets now." stock market is open today, bond market closed. here's the nasdaq with some of the winners including netflix. ♪ ♪ peace of mind ismportant when you're running a successful business.

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connell: dennis kneale will be looking uo give you this story about netflix. we talked earlier about how netflix could be available on your cable box. "wall street journal" has a story about how that could happen, and dennis is here. we were saying that, you know, you have these entities that are usually fighting with each other. >> yeah. this could turn the cable industry upside down. netflix louse maybe 10, 20 million homes go over the top, they don't get cable at a all, they just do all their demand on netflix. now they're talking to comcast about maybe putting a new netflix app on this x1 box, a new set-top box, fancy features, digital interactive that comcast is just starting to roll out,

and originally they were saying we'd never do anything like this, but now they're actually open to it. so it'd be kind of interesting because john malone, the cable billionaire, just said a week ago, you know what? comcast and the big operators a ought to team up and come up with their own joint venture rival to netflix and just offer their own -- connell: and compete with them rather than team with up them. >> exactly. here's the thing for netflix, now they get, what, $8-$10 a month? if you go through cable systems, they're going to take what cut? i'm talking to industry sources, but an art gallery when it sells your painting, the artist takes half, and why wouldn't the cable operator take half of that fee? suddenly netflix gets much broader distribution but at a much lower price -- connell: interesting, because then you prevent some of that cord cutting -- >> exactly. connell: you get these smart

tvs where that's exactly what you have, you have an app where you go on, and there's youtube and netflix, everything like -- and they're great. they work just like a computer, and you have your choice. the other side of the tv could be cable, or like you said there's more people -- not huge numbers yet, but i'm sure -- >> very few of them right now, but set-top boxes are every are with. just over half of homes have the digital set-top box, this is that -- connell: interesting choice for netflix, too, if they want -- >> yeah. here's the thing, though, netflix competes with you for cable apps, it also competes with channels. if you're comcast, you own a whole bunch of channels. you don't want netflix to take away from the viewers watching nbc. you can't block it, so co-opt the competition. connell: it seems to make a lot of sense in our industry and others that things are going to happen, so how do you survive in those scenarios? >> exactly. connell: more from dennis next

hour. macies' reportedly opening stores at 8 p.m. on thght night, so, you know, one of the biggest retailers in the country. will it destroy your holiday dinner? keep in mind, you'd be destroying your own dinner, you could stay home and have turkey, but that's coming up next hour on "markets now," and legal action coming down hard against the big banks. does the punishment fit the crime, or is it time for wall street to be given some amnesty? cheryl casone joins dennis kneale, all-star debate coming up.

>> we should be sitting down, and the president should be engaged, and the democrats, they'd better with understand something, what goes around comes around. and if they try to humiliate republicans, things change in american politics, and iiknow what it's like to be in the majority and the minority, and it won't be forgotten. dennis: strong words as the

shutdown continues into day 14. i'm dennis kneale, cheryl casone and i are here to take you through the next hour. now three days away from hitting the debt ceiling, late word of another meeting at the white house today. plan after plan fails to gain meaningful support in washington. the u.s. is beginning to look like a reality tv show. and doctors are offering medical credit cards, and it's an increasing trend even as interest rates run as high as 30% on these things. and demonizing the big banks in the wake of legal actions against vp morgan, does the -- jpmorgan, does the punishment fit the crime, or is it time for wall street to get some type of amnesty? all this and more in the next hour of "markets now." ♪ ♪ dennis: hello, cheryl. well, the gridlock gets even worse. cheryl: and nothing, nothing done over the weekend. it looked as we closed out the

markets on frizz and the dow -- on friday and the dow was looking healthy that we were going to have a deal can. dennis: sure was. the dow was up 461 points since wednesday and then suddenly nothing. and now a new fight, sequester cuts, let's repeal them x. wreaking news -- and breaking news, new reports out of washington have the president and vice president meeting with congressional leaders this afternoon. the market's kind of coming back from triple-digit losses on that news. nicole petallides. >> reporter: well, as you note about the meeting, the potential meeting there at 3 p.m., that's what traders were quickly noting to me just a short time ago, and that may be one of the reasons why you saw the market come back up off the lows. you can even see that the nasdaq has turned into positive territory. the dow right now is down just 20 points after having been to the downside all morning and, obviously, had further losses than what we're seeing at this point. right now the retail index, the drug index have turned into the

green. the vixx, the fear index and volatility gauge, that has an up arrow and still continues to be higher. right now just 1709, that's the level we're watching. we have a lot of news we've been following, everything from a facebook acquisition, netflix potential with some of the cable providers, you have apple with the iphone 6 and some of the dow components, pfizer, boeing, microsoft and disney some of the best performers on the dow right now. cheryl: nicole, thank you very much. well, new reports out of washington this hour have the president and vice president meeting with congressional leaders at 3 p.m. eastern time today, two weeks into the shutdown and neither side budging. now a voice from the past is weighing in. a man once concerned a likely candidate to be the next fed chair, larry summers wrote future historians will see today's crisis as the turning point, the end of democracy. let's bring in adam shapiro,

rich edson on capitol hill, sandra smith on the floor of the cme. first to you, rich, an easy question, i would assume, is democracy in trouble in washingtonsome. >> reporter: well, i guess democracy's in a way working, at least minority rights are if you listen to the republicans. but it is very difficult to get anythinggdone, and it is representative of how far apart the country is on a number of these issues. and if you look at the polls, they really are all over the place as to what exactly a majority of americans are looking for. they want, they want the government to work, but they keep sending people back to the congress who are unwilling to work with one another and who go home, and the unwillingness to work with the other side seems to be a political asset to them. so, you know, we're in a bit of a stalemate here. i mean, that's a result of who was sent here. cheryl: also, adam, you know, we've got to grow the economy, there's got to be growth to gdp, this helps local and state governments and that, again, historians look back in a

hundred years they're going to say you destroyed american cities, you destroyed america. >> this is the one, you just brought up the line that really was amazing, further asset that growth benefits cut spending because a lot of the debt hawks have been saying we've got to cut for our future, but what he's saying is we've got to spend and invest. he talks about infrastructure. but as far as the republic ending, i don't think it's ever going to be the end of the united states. at the end of the day, we're still the world's largest economy, we're still a country of law. we are ruled by law x and that alone offers assurance to people whose property rights and whose legal rights in other countries are not protected. cheryl: but with, dennis, democracy is about compromise. that's what our country was founded on, and he's saying we're getting too far away from those principles. dennis: i think it's simply ridiculous to suggest this is the end of democracy. let's not forget that our founding fathers engaged in duels, they actually shotguns at eacc oh, and that was the

original form of democracy in some ways. i mean, i think, though, what's interesting to me in this summers broadside is there's tacit criticism of the democrats that he loves so much here, because they're as much a part of this not negotiating or this breakdown of democracy as the republicans are. cheryl: and one of the things he points out, sandra, as well in the op-ed is that we've got to create bipartisanship. >> well, larry summers' point is well taken that would spend half the time that we spend on these budget negotiations and talks in this country on actually growing the economy and growing the country, we would find ourselves in a completely different place financially and economically than we are today. that being said, one thing i have to disagree with here is the fact that we are going to remember this so acutely going forward and looking back as if it's the turning point, as he calls it, in history, because

i'll compare it to oil and it's now the norm to see gasoline prices where they are today whereas this would have been a fiasco 10, 15 years ago to see gasoline still above $3 a gallon as the national average. our memories are very short in this country, so to call it a turning point, i think, might be a stretch. cheryl: all right. well, guys, you know, it's also been -- and this is a washington story as well -- it's been a rough start for obamacare exchanges, and patients may not see financial help for some time, but now doctors and dentists taking matters into their own hands, offering credit cards and financing plans on their own. adam, should they? >> they should, but they used to be in this country up until the late 1970s usury laws, and you could not charge interest of 30, 35% as they are doing in this case when people are late. but you've got to give people an opportunity to pay for things they might need. but in the cates that brought -- in the case that brought this to our attention, it's as if patients were already having the

procedure, and then they sign on the dotted line. this is the kind of thing you need to know when you go into it. cheryl: but, dennis, these patients, at the same time they know they've got to get it done, and this is a moneymaker for doctors and also for the bank that issues the credit card. it's capitalism. >> well, what bothers me is that the doctors wouldn't do this if there weren't commercial demand for it on the part of the consumer, so to speak. that at the time we've got the advent of obamacare, doctors find demand for credit cards at 30% or 20% interest shows me that obamacare already has some real problems. cheryl: edison -- rich edson, sorry, i call you edson on e-mail. this is something many state attorneys general are looking at this, and they're saying it's a3 way to defraud the american consumer. what do you make of that? >> well, first off, is there any group of doctors better than upselling you than dentists? you audiocassette walk out -- walk out sometimes with a much

larger bill. when you're putting that on a credit card, maybe you're not thinking about it -- >> guys -- i'm interrupting everybody. what on earth does any of this have to do with obamacare? obamacare doesn't cover dental procedures. cheryl: this is also happening in doctor's offices. >> it's happening in doctors offices, but it's -- >> [inaudible conversations] >> we're so worried a that people are going to take on credit cards, and they're going to be ripped off by their dentists. i mean, how about trusting the american people to be smart and savvy? [inaudible conversations] >> what'ssgoing on up there? >> dennis, this isn't being overproductive, this is about goldman sachs putting up the cash for people to get credit when they need it. but you make bad decisions when you're already under the anesthesia and signing the dotted lines. >> let people be smart enough to protect themselves. >> 80-year-old people? >> my grandmother died in '92, and she was plenty savvy --

>> i'm glad your good many -- [inaudible conversations] >> dennis, this is ridiculous. this has nothing to do with obamacare. cheryl: sandra, i can hear you. >> doesn't this go back to personal accountability? can't we all be responsible for our own -- >> can't goldman sachs be responsible? cheryl: let dear sandra finish, adam. >> we're talking about the consumer sitting in the dentist chair, the insurance company won't cover the procedure because it's not needed. some procedures that are deemed not necessary today are deemed necessary by the consumer, so if they want to take on the risk, they should be able to. if you're talking about the next big debt bubble, possibly. cheryl: okay. we have to move on, but we're going to have to go over this again. real quick, thanksgiving is six weeks away if you hadn't already checked your calendar. the holiday shopping season is beginning x macy's the latest store to cash in, the historic retailer set to break a 155-year-old tradition of remaining closed thanksgiving

day, opening door cans on thanksgiving night. all right, sandra, especially the big story is in chicago because it's that big chicago flagship store. do you think they're ruining the holiday by making people work on thanksgiving night? >> again, this is a personal choice. if you really want to hop up from your family thanksgiving turkey table and rush to the store, then you can do that. you have the right to do that, and macy's is saying they're going to open their doors at conclude so you can rush in after you finish your coffee to do so. will i be doing that? not so much. i believe that day still needs to be sacred. cheryl: i can't see dennis after toiling over your dinner you're going to get up and go shop. >> they're going to ruin my nap, okay? [laughter] i finish at 4:00. cheryl: adam, what do you think? everybody else is doing it. well, everybody else is jumping off the bridge -- >> the economy's kind of bad, and we already know the margins are going to be tight, so macy's has to do this. maybe they could sweeten it for the people who have to work and

give them a bonus or maybe volunteers. cheryl: actually, they are paying extra if you're willing to work on the holidays. he does take care of his people. rich, this is, again, another american tradition that we all take thanksgiving day off. not so much anymore. >> you have dinner early anyway. what's 8:00, right? [laughter] cheryl: are you going to be in a football-induced coma, rich? >> i'm not going to be at the store no matter what happens. i'm just talking about everybody else. [laughter] cheryl: rich edson, adam shapiro, sandra smith, ggys, thank you so much. great kickoff to a monday. dennis: it was. yes. and unemployment in america undefined. we missed out on september's crucial jobs report because of how do we even proceed? and now november's data in jeopardy too. more on that fallout ahead. cheryl: and if you're in the market for a painting by andy warhol, here is your chance. legal troubles may force hedge fund manager steve cohen to

auction off some of his art. we're going to have that story coming up next. as we go to break, take a look at energy. interesting stuff. 102. 100 could happen soon, we'll find out. ♪ ♪

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cheryl: following one of the lead performers. airbus making some comments. by 2017, they will overtake boeing. they have 600 orders for 2014. if you are boeing, you have to be watching airbus. anyway, the stock is up five

points. the dow is down. general motors plugging in. setting its sights on tesla. nicole: nice transition. electric plug-in vehicles. we always speak about tesla. we have to take a look and turn our attention to general motors. they will be launching their plug-in coupe. they are not cheap. we talk about the tesla around $70,000. you will get some tax credits. they will go head to head. it gives an alternative in the

market. right now, we will be watching both of these names going into the new year. tesla, obviously, knocking the socks off of shareholders the six thank you very much. see you at the bottom of the hour. dennis: steve cohen. the billion hedge fund manager auctioning off some of his prize work of art. his lawyers are in the middle of a plea deal. since he owns 100% of his firm, any pay would come out of his deep pockets. cheryl: it is kind of a

witchhunt. dennis: i do not see any victims yet. cheryl: they seem to think that there are victims. i guess you could say he is still a great hedge fund manager, just not managing anything. the focus is on the white house this afternoon. we do not have a deal yet. the president and vice president on the meeting with congressional leaders. dennis: the latest action against jpmorgan. does the punishment fit the crime? first, look at how the world currencies are faring against the u.s. dollar. that first. ♪ it's a growing trend in business:

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>> welcome back to fox business. i am lauren agreed with fox news minute. seventeen people have died afte3 a storm in india over the

weekend. a bomb went off at a market crowded with shoppers. separately, three red cross members and a volunteer taken hostage and syria are now free and safe. there has been another security incident at london's buckingham palace. a man with a knife was arrested as he tried to enter through a palace gate. that is your fox news minute. back to you. cheryl: thank it was breaking news at the top of this hour. president obama and vice president biden will meet with congressional leaders. peter barnes is there.

peter, do we have any idea, any idea what the expected just of the media will be? peter: a white house official has more on all of this. only a few days until the government runs out. the president will reiterate our principles to the leaders. we will not pay a ransom for congress reopening and raising the debt ceiling. a repeat of the talking points we have been hearing out of the president and out of the white house. this comes as our colleague is hearing from multiple sources

that senator harry reid and mitch but-- mitch mcconnell may be working on a deal. the dispute is over how long the debt ceiling would be raised for and how long the continuing budget resolution would be four. the president is calling them all down here. cheryl: one of the things that happened over the weekend is susan collins came out and is specific. let's raise the debt ceiling for the next year. let's put off the medical device tax for the next two years. is there something we are not following here in washington politics?

>> over the weekend, senator harry reid did respond to that. he said he could not ccept a proposal. senator collins revised her proposal to raise the debt ceiling for just six months, but wanted to keep this a quester level spending cuts in place as well. we want to talk about spending limits for 24 team. trying to renegotiate those so quester and increase. cheryl: what can we make of the vice president being in a meeting this afternoon. all of a sudden, he is involved. peter: reports that senator reed did not want the vice president

going behind his back. today, the vice president will be in this meeting. that may be a tea leaf that perhaps these negotiations are going forward on a new track. cheryl: we certainly hope so. thank you. morning. we will be live at the nyse coming up. cheryl: getting harder to find affordable homes in this country. where should you be looking to buy? we will take a look at some of the winners. happy columbus day. we will be right back.

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cheryl: 30 minutes past the hour. nicole: i am taking a look at whirlpool. the lead research looking at whirlpool. it is known for maytag. take a look at the shares right now. down over 5.5%. cleveland research says the upside may be limited. we are talking about a demand pause here in the u.s.

we talk about it. no room to really outperform. cheryl: thank you so much. dennis: legal expenses taking a big hit out of jpmorgan's bottom line. the first loss under the nine-year reign of jamie dimon. we have former sec attorney with us, security lawyer and senior analyst. thank you, all three of you, for being with us. it did not have any net loss during the worst times. it answered governments call.

what are we doing to them now? >> we are certainly costing them a lot of money. i agree with you. it is wrong for the government to be going after jpmorgan. the government, either through the fed or the treasury or the fdic, asked jpmorgan to take over both bear stearns and washington mutual. typically, in that kind of process that washington mutual through, the legal liabilities are stripped away. i think that is jpmorgan's position. it does not stop people from suing you. we are taking action. dennis: yes. denny's comment you say one of the important things is to make

sure the punishment fits the crime. >> i think you have to look at this as a three-part program. first you have the restitution to the marketplace. you also need to beef up supervisory and compliance. you want these people to have more support and to be supervised and overseeing. the lawyers that are coming in are coming in to overhaul the system. to make sure that the largest bank in the country does not let this happen again the five did other banks make bigger mistakes?

the bank was investing its own money. how is that just at all? >> how is it just. we want to be sure that we have responsible practices. particularly with respect to the whale. dennis: how does fining the bank >> absolutely not. it is other people's money. hit somebody enough times, they will get it at some point. this is not a new problem. dennis: i feel like that is what is going on a lot here. >> i do think that there is a fair amount of frustration at the justice department. now he has gone to jail for anything committed rider to the

financial process. it is trying to extract some retribution. >> he points out a real severe problem. we need individual accountability. it is so easy to hide behind these large corporations. the people at upper management constantly pick on the little guy. dennis: we gave the whale immunity from penalty and prosecution. how about penalizing the very traders who are doing the bat thing. >> how about both of them? dennis: they will not take risks. >> that might not be a bad idea. dennis: it is a bad idea.

it is capitalism. >> even the men at jpmorgan putting those together had no idea what they were doing. >> absolutely. dennis: who in government is being penalized and punished and indicted and find? >> obviously, no one that we know of so far. at some point, hopefully, many years from now, at some point, jamie's successor will get a call in the middle of the night asking them to help out the government resolve a feeling bank. at that moment, that ceo will say, wait a minute. what can you do to assure me in the middle of the night that two years down the road i will not be sued by the government over

things that somebody did before i have control over them. dennis: they ask your client to make one of these acquisitions. you will really tell them to go ahead and do it and trust the government not to come after them? >> i would. reach out to government. dennis: you are a trusting soul. i would not trust it. thank you so much for being with us. we appreciate your time. cheryl: from the shut down to rising prices. the middle-class having a tough time when it comes to the housing market. why they may want to set their sights on the midwest. let's take a look at how homebuilder stocks are actually faring today.

a lot of the loans are not happening. we will talk about it coming up. ♪

♪ tracy: i am tracy byrnes with your fox business brief.

many could see a cost-of-living increase next year. for the average monthly benefit, that would mean a $17 raise. three americans have been awarded the nobel prize in economics. they are being honored for the research that improved long-term asset pricing forecast. older workers say they will delay retirement lands. workers over 50 expect to retire three years later than they thought when they were asked ten years ago. that is the latest from the fox business network. giving you the power to prosper. ♪ metamucil. 3 amazing benefits in 1 super fiber.

cheryl: real estate reality. home prices making it hard for anyone to even purchase a home. especially the middle class.

the number is pretty eye-opening. greg, i want to start with you. do you think that you are the issue here? >> we are the issue peaks we are driving pricessup? >> we have not been focused on some of those cities where the prices have spiked. there is definitely competition for first-time buyers out there. i will remind you, though, a lot of the folks that are renting the homes are people that do need homes to rent because they have moved out of a home that they lost to a foreclosure or short sale.

at the end of the day, if you own a home and because of our activity, i think you will be thanked us for our service. cheryl: 6.5% of homes sold in the month of august were affordable for the middle class. that number keeps dropping every single month. especially in the blue cities. in cities like new york, san francisco, l.a., forget it. if you are middle class, forget it. you cannot buy.3 >> one is rising prices. mortgage rates are higher than they were a year ago. both of those things together have made affordability more of a challenge. the middle-class, the household at the median income can afford only about 14% of the homes

available right now in the san francisco metro area, less than 30% in new york, l.a. and san diego. cheryl: you and your investors avoid blue cities. you go for red cities. >> we do. we go for red cities. we are acquiring where the population is going. the idea that -- when you see the exit is coming out of the northeast, it is not just home prices doing that. they are outwardly business friendly cities. i recently moved my company from new york to north carolina just this summer. the quality of life in the carolinas is fantastic. everything is cheaper.

gasoline, hamburger and fries, everything is cheaper. there were a lot of things stacked up against me. cheryl: i have covered this story about companies leaving going to texas and florida. 80% of homes are affordable. a lot of those cities are pretty troubled cities. is it a really good idea to go buy a home in detroit right now. >> they also include a lot of smaller southern metros that are

not economically challenged. they are affordable because it is easy to build new homes. when there is more demand of people who want to live in san francisco, it is hard to build more homes did. cheryl: i think the whole story may change for you and your investor. we have had a sellers market for the first nine months of 2013. i think that sellers market is beginning to falter. what do you say? is that good for you? >> we are in this for the long haul. i had come and under show for a few years now. i think we are getting there.

a lot of the headlines have been grabbed by some of the most volatile cities in the country. prices soared complemented him and are starting to soar again. they want to be able to know where the prices will be. even if prices rise, i think you will see some of these cities give back some of their gains from this year. they are a bouncing ball right now. the places they were at, they do not register these wild swings. you know where they will be. before thank you very much. dennis: made in america. oil production soaring to record

highs. for more, let's head to the trading pits of this cme and phil flynn. >> hey, dennis. china is importing more oil than they ever have. opec is producing more and more loyal. they are all setting records production. why is that? they are afraid of the united states and losing market share. they are producing a lot of oil. oil today is actually going up. they are bouncing up because the president is going to talk with congress and nancy pelosi. oh, joy, what a rally. natural gas was hired today. cold temperatures, believe it or

not. dennis: thank you very much, phil flynn. cheryl: time for your west coast minute. the union postponing a strike for another 24 hours at least. more than 2000 drivers and other employees have not had a contract since june 30. we will stay on it for you. no injuries to report at los angeles airport after a dry ice bomb exploded in a men's room there. the fbi is handling the investigation. operations are now back up. finally, a san francisco costco store were called chicken. the products were sold as ready

to eat. they were sold between september 11th and september to three. take a look at the stock. we don't have it right now. we will get it for you later. dennis: netflix could soon be coming to a cable box near you. we will take a look at the winners and letters and any potential deal. ♪ not their short-term agenda. [ woman ] if youave 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 million investors who think like you do: face time anthink time make a difference. join us. [ male announcer ] at edward jones, it's how we make sense of investing. [ male announcer ] at edward jones,

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dennis: sleeping with the enemy. netflix said talks with comcast the new box.p directly on board ford's new alliance among natural enemies.

netflix has been a threat to comcast. john malone said last week that comcast ought to create a joint netflix killer. looks like netflix may have just outmaneuvered john malone could google alerting its users that their photo, profile, endorsement could be used across all of google's websites could lastly, bring on the supremes. the four major broadcast networks appeal to the u.s. supreme court. they have lost four rounds in various courts. now, they are running to tell mom and dad. is there hope after all? the president says signs of hope in the senate.

meeting with congressional leaders this afternoon. cheryl: take a look at the dow. we are moving toward positive territory. investors are thinking we have a deal. i will be joining adam hero in the next hour of markets now. on why washington is making the world's largest industrialized nation look like a fourth rate joke. the logo

sometimes theyust drop in. always obvious. opportunities ar't cme group cahelp you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. yore history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything om t best experiences low... to the finest comforts above. we're not simply saluting history... we're making it.

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cheryl: there is hope in washington. adam: stocks paring losses as we learn president obama will meet with congressional leadership. cheryl: three days until the u.s. government risks running out of cash.

adam: spending more freely and complaining more loudly. this story has nothing to do with washington lawmakers. cheryl: has been called one of the most instructive names and cyber security. tell us what hackers are targeting on your smart phone. adam: lawmakers in the senate debating a resolution to and the fiscal debate in washington. rich edson has more on what is happening in capitol hill. rich: there are some reports saying they are getting close to a deal.