tv Varney Company FOX Business November 12, 2013 9:20am-11:01am EST
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get out? after the a month of losses after that speech, we bounced right back. well we've got david stockman the man who has been call forge a huge selloff, once the fed stops printing. he is here in person in just a few minutes. don't forget about obamacare. congress returns from a long weekend. they're working on a fix. we have early enrollment numbers. say they're very low. that would be putting it mildly. in fact obamacare if it was a stock would be down huge. plus one company makes $5.8 billion in sales in just one day. we'll tell you who it is. "varney & company" is about to begin and what if that person were you? ♪ when you think aboutt, isn't that what retirement should be, paying ourselves to do what we love? ♪
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charles: all right. we've got obamacare imploding. the heated market debate. that's coming up. first another big story this morning, all about wealth redirection, this from the tax foundation. america's lowest income people, they get $5.28 worth of government benefits you will for every dollar in tax that is you
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pay. compare that to this, high income people get 25 cents for every dollar they pay. that is the top 20%. the bottom 60% of americans get back more than they pay in taxes. liz mack max, with this rich paying fair share these numbers are really, shout out to you. by the way the top 1%, the top 1%, they get back six cents in government benefits for every dollar in tax they pay. liz: versus multiples of what the bottom brackets get. the storyline here there is no permanent 1% class. people fall out of the 1% all the time. here's the deal. 1/8 of the entire u.s. economy, 2 trillion, what it equals to, is redistributed from the top 60 down to the bottom 40. i'll tell you something. that really throws a harsh light on what the true poverty levels are in this country. $36,000 on average for the lower brackets. not the 23,000 you hear for the
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poverty rate. listen, we want to help the poor, absolutely want to help the poor and want to be transparent how we're doing it. charles: but by the same token, you're telling me i will be rewarded for maybe mediocrity but coming up short but i will be penalized for doing well, for trying to be extraordinary in this country, so at some point that will dissuade me from being extraordinary, hey, wait for more money from the government. this redistribution backfires. liz: we're highly progressive in the tax code. charles: right. liz: really progressive. even european officials said that. >> that is when you know you're really progressive when the europeans say so. dow closing at another record high yesterday. but here's the question. because average investors seem to be jumping in right now, does that mean a huge correction is comeing? we'll debate this. i can't wait. this is huge, because you guys are in the market and i want you not to be afraid but a lot of people are. the opening bell is next. elcome back. how is everything?
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♪ [ male anouncer ] introducing fedex one rate. ♪ no two people have the same financial goals. pnc works with you to understand yours and help plan for your retirement. visit a branch or call now for your personal retirement review. ♪ charles: that is the first-ever 3-d printed metal gun made by engineers at a firm called solid concepts t reportedly fired 50 round. big money in 3-d printing coming
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up in a few. we're minutes away from the opening bell. we have scott shellldy. here's the thing, scott. the little guy is getting in. seeing a great rotation out of bonds into stocks. does that mean a big correction is right around the corner? >> no, i don't think so and the reason i don't think it is like 1996 all over again, we have unprecedented encentral bank but other banks around the world. the only reason we're doing it we can't see growth. we'll kick the can down the road, continue to print and get new innovation like internet to bail out of the problem. we don't have any growth, charles. that is the reason why we're printing. charles: we have to cut it shot. thanks a lot, buddy. appreciate it. you heard scott talk about printing. that keeps the market up right now. liz has someone who has an opinion on that. former budget director, david stoke man. you wrote a book about this
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coming correction, the great deaf formation. more of the little guy coming in, the central banks around the world continue to print. that is your premise. >> this is the forth great bubble of this century. what happened to the last three? they ended in devastating carnage because central banks and print and print and finally there is triggering event a black swan, things go too far and the whole game unravels. right now wall street is gone. the mania, from the ridiculous to the just plain stupid i. charles: here's the thing. >> predictably calling in the sheep for the slaughter, the retail guy to come in because the market is cheap. the market isn't cheap. it is trading 20 times trailing earnings based -- charles: forward pe? the relatively low based on historical standards. but here's the thing i want to talk about -- >> charles, talk about that. charles: you said a lot of
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things. let's address them. the economy is cyclical. stock market is cyclical. anyone can say eventually the market will crash and at some point you're right. but at end of the day we seem to come out of the crashes, if you will, big giant bubbles, you describe, when we rebound we rebound to rebound higher. doesn't it auger that if you say the course you will be okay in if you try to wait the irrational exuberance speech was 1996. rally continued three for more years a lot of people missed. >> it crashed and retail vest tomorrow lost 5 trillion. he waited and waited. got in at 2007 at top of the bubble. charles: the retailer sold at the top. >> it has been sold down the river three times this century by the fed in housing, in.com and in the great stock market bubble of 2008. >> by who? >> by the fed because the fed is flooding -- charles: what does the fed do?
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in other words i'm not a big fed guy but we have fiscal policy in this country that is decidedly antibusiness. when i hear ben bernanke speak, he sound like a guy who might begrudgingly he is doing maybe doesn't want to do. he may be going against his own internal intelligence but what is the alternative when you have an administration that doesn't like capitalism? that is selling the country down a different path. >> that has nothing to do with it. charles: that has nothing to do with it? why are corporations sitting on $2 trillion? >> they're sitting on $2 trillion in cash. charles: why? >> wait a minute. they're sitting on 13 trillion of debt. they have borrowed 2 trillion since the crash. they have added to their balance sheets. >> you're doing a zero-sum game. >> no. >> yeah you are. they are not idiots on wall street they know how to hedge your debt. you don't like the fed foam on the runway, constant borrowing and money printing i get that. >> right. liz: you're underestimating how the market is pricing it too.
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the market as charles points out, 15, to 11 times forward earnings. retail investor is not in a big way. only came back in one six of what they took out. >> 17 times that is on the hockey stick that the pinnochios on wall street constantly project and never comes out. look at the real earnings, gaap earnings the reported third quarter, $90. only up 3% from two years ago. charles: we'll not look at gaap earnings. >> of course you should look at gaap earnings. this sort past wall street gamble to get the retail guy coming in. charles: right now we'll talk about some individual stocks okay? >> okay. charles: twitter, yesterday was interesting. for a brief moment fell under $40. then it rallied. nicole, where is twitter this morning? >> in $43 range. it was at 39.40 at its lowest point. that was tough for people who bought it in the mid $40. during ipo day.
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a what is interesting are the analyst calls. geting a slew of aplift calls and a ray of price targets. for example, baird has neutral rating and 48-dollar price target. susquehanna has a neutral rating but has a priors target of $38. another analyst said yesterday that had a buy rating with a 38-dollar target? which one is it? you have to do, keep doing your research, and maybe just sort of, don't do all the investment in one day. maybe do it over time, you're getting best price. to try and get it at lowest price at this point is very volatile. charles: got to tell you, nicole. would i certainly like to see it test 40 again and break under 40, to see how much weakness it has, to your point. no sense of urgency. thanks a lot. we'll be right back to you. we showed to you earlier, engineering firm that produced first 3-d printed metal gun. it fired 50 round and counting. these 3-d stocks were on fire.
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they are pulling back. they were up triple digits for the year. these pullbacks have been great buying opportunities. let's shift fierce back to the topic at hand. janet yellen faces confirmation hearings in the senate on thursday. senators john mccain, lindy gram, rand paul vow to block her confirmation as the next fed chairman. david stockman is still with us. i want to ask you, what happens with this fight over yell loan? what are the confirmations held up? >> they should have a huge fight. yellen should be stopped. she will be the worst fed chairman left. she is lifelong keynesian money printer who believes debt is how you grow wealth and an economy. it is wrong. if she takes charge we'll go right over the end of the cliff that we're almost at at the present time. so i give them a great deal of credit for not being, and i'm talking about senator rand paul and the others for not being bullied by wall street. only thing wall street cares about is get the market up
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another day so we can notch, you know, another couple percent. keep this game going. even though the real economy is going nowhere. liz: debate is, the fed is growing stock assets, equity assets and not jobs through the monetary printing. we seen what happened before when the fed pulled out in march 2010 and june 2011, the correction was 10 to 15%. >> you should have a correction. liz: i'm saying it will not be a armageddon. you're saying a zero-sum game, that is not how the world works. >> i disagree with that. if we didn't have the fed with the fat thumb on the scale the long term and median bond rate would be far higher than today. it is ridiculous buying -- charles: you think without the fed we would have less boom and bust cycles? >> yes. much weaker economy. wouldn't have booms and busts. charles: i have to ask you about another topic. we have over half a million people were expected to sign up for obamacare in the first
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month. well the insurance industry is reporting right now fewer than 50,000 people. that might be actually giving them a little bit here. so 50,000, liz, start with you first on this. 50,000 the first montecito over a million for this to work. liz: we can't trust numbers. they're including people that signed up and haven't bought yet. the insurance is in the shopping cart but haven't paid for it. this is equivalent of front-loading revenues, we saw companies do during the dot-com bubble. this is the big problem for disclosure. american people will not get information about enrollees. insurance companies need to say to themselves, this is material information. are we going to show the world ahead of time who has enrolled in our insurance plans via the website. who buys insurance on a website? that is the fatal flaw of this whole operation. charles: there might be a whole lot of fatal flaws, from a budget perspective. talking about a fix. maybe we subsidize people making
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500% of poverty, instead of 400% of poverty. where do we go from here? what is the fix? >> this can't be fixed. it is greatest legislative calamity of last 50 years. there will be tens of millions of people dumped not just from individual plans this being dumped right now out of medicare advantage. you're being dumped out of employer plans. people will find they can't keep the doctor and can't keep the network they're in. as a result this will cost hundreds of billions of more. charles: we're talking trillions. 1.2 trillion, if we subsidize people making 500% of poverty. real quick, because we're running out of time. have we created a new entitlement program? >> of course the entitlement will take the system down. medicare, social security. medicaid. connell: i'm saying, be honest in the numbers because the poverty rates don't include food stamps and tax credits. we want to help the poor. tell the american people how we're doing it. charles: single person making 50 grand -- >> that is most of the people in
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the country. charles: the great deformmation, great david stockman. we brought you the story last week a possible cure for cancer. the company that makes the vaccine next. how close are they really? you're going to find out. ♪ ncer) at scottrade, our clients trade and invest exactly hothey want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office,
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will continue to print money. the dow has turned positive. we've been sideways all morning. we have a disappointing outlook for -- d.r. horton home sales are edging higher. although new orders were down 2%. street likes it, bad news already built in. new cancer vaccine is rethinking how we treat cancer. here is how dr. siegel last week described this when he brought us the story. >> they take the tumor out of the body and use the tumor to provoke an antibody response, or an immune system response. so all the proteins on the tumor challenge our own immune system and our immune system fights it as if it were an infection. charles: les gold, senior vice president with vie row therapeutics. they are the company that dr. siegel said makes the vaccine we were talking about. that is a lot of people, obviously when you say cancer
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vaccine, what exactly are we talking about here? >> i think dr. siegel put it pretty well, charlie, that the strongest weapon we have to deal with any invasion of our body is our immune system and, we've been for 30 years or more using chemotherapy and poisons instead of turning to the most natural solution and as dr. siegel indicated, and i think the great response we've seen because people know enough in the cancer area to want something better and different. by taking tumor tissue that gets thrown out, identifying in it chemically all of the biomarkers, not just one single silver bullet but all of them and mobilizing your entire immune system, we take a blood draw and get the baby cells, expose them either in the laboratory or inside the tumor depending whether the tumor is operable or inoperable, and we educate the immune system to go
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after your cancer viedized in your body. charles: isn't that what the immune system already is supposed to be doing on its own? >> it is supposed to be doing on its own but cancer is so clever, that it is like a life unto itself. it shuts off your immune system. if you have an adult dendritic cell which command, many, many aspects of your immune system, t-cells, killer cells, there are many, many weapons but if that dendritic cells are shut off, you notice most cancer patients particularly in the early phases. they will not get the flu but fight other diseases so the cancer grows. liz: you found a way to turn them on? >> you got it. liz: what is the success in the trials and do you have money to do further trials? do you need financing for that. >> well, we're always looking for financing. liz: what is the success rate right now? >> the success rate, we believe we're the leaders, lizzie, in
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this space and we've done trials in human beings, in brain cancer, gbm, the worst kind of brain cancer and prostate and owe safe i can't remember. and of -- ovarian. everybody who has taken the vaccine, in all of these different trials we've added years to recurrence and years to survival. liz: like 40% success rate with it? >> the comparison would be you die in 14 months from, the standard of care which is chemotherapy and, we have extended life on average to 3 years, compared to 14 months. charles: that is the key, really. most therapies out there, just add just a few months of extra life. >> you're exactly right. charles: phase one, two or three, where is that? >> right now the brain cancer is in definitive phase three trial. charles: phase three. big news coming soon one way or the other. then you go for a new drug application. we've seen this stuff in the
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stock market before. a lot of excitement with possible cures. all of sudden the news comes out and it doesn't work out and stocks come crashing down, hopes are wiped out, dreams are wiped out. even though you're this far advanced do you still have some, or maybe tell me quickly, what is the number one obstacle for you? >> number one obstacle is getting finished for the trials and bringing it forward. as dr. siegel noted, the really important thing is that the clinician and the patients as showed in his piece last week, are way ahead of the investors and the rest of the medical world, and it is getting the word out that we believe we have a better way. charles: ultimately you have to convince the fda that this works? >> that's right. liz: get financing for it, right? >> we are as active in europe and the united states? we have a couple chances to win in that it is all one international trial, on both sides of the atlantic. charles: tremendous amount of
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excitement and tremendous amount of response. we'll talk to you guys more about that. for mankind, we want to say, good luck with this whole thing. >> i want to thank you guys for helping get the word out, because the response shows. les goldman. >> thanks very much for having me. charles: you nice think amazon is the king of all online retail? you better think again. in just one day china's al by baba sold $6 billion worth of stuff. we'll break down all the numbers for you next. ♪ [ male announcer ] imagine this cute blob is metamucil.
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a document shredder. a $29 value free. ♪ ♪ charles: yesterday was china's version of black friday, the biggest day for online shopping in the world. alibaba that controls 80% of china's e-commerce market, they had an amazing day. they posted record sales. its two to be websites raked in $5.8 billion in just 24 hours. liz: 5.8 billion? that is equivalent to what neiman marcus was recently sold for to the canadian pension fund which was about six billion. last year, charles, this company pulled in a lot of money. basically had sales more than ebay and amazon combined. you're looking possible 65 billion-dollar market cap if
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alibaba's goes public. charles: that is keeping yahoo!'s stock price up. here is the thing your audience should know. 400 million unique visitors yesterday. 152 unique parcells shipped out, 1.62 million bras. that is more than the entire population of the united states. maybe they can fix obamacare. get alibbba to fix this thing. are you serious. liz: i'm sorry. i wilt yield back to you. that is really funny. charles: absolutely remarkable. china this year will finally pass us in online shopping. do 290 billion. liz: we're talking about singles day, their -- "single's day", equivalent of valentines's day. charles: absolutely. 11/11/1. we'll talk to doctor keith ablow. we want to put the american consumer on the couch. why do some people shop on a holiday meant for the family?
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a man who owns dozens of applebee's and how obamacare is affecting him or his employees. >> if you had one of these plans before the affordable care act before it became into law, if you really like the plan, what we said was, you could keep it. if it hasn't changed since the law's passed. what if a small company becameig business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology stead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. see who does good work and compare sts. it doesn'tsually work that way with health care.
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but with unitedhealthcare, i get information on quality rated doctors, treatment options and estimates for how much i'll pay. that helps me, and my guys, make better decisions. i don't like guesses th my business, and definitely not with our health. innovations that work for you. th's health in numbers. unitedhealthcare. re shopping. mo dining out. and a witit, more identity theft. by the me this holiday season is over, more than a million identities may be stolen. everyime you pull out our wallet, shop online, or hit the road, you give thieves a chance to ruin your holiday by the ti you're done watching this, as many as 35 more identities may be stolen. you can't be on the lookout 24/7. but felock can. there releness about otecting your intity every minutof every day.
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order now and get a special holiday gift -- a document shredder to keep sensitive documents out of the wrg hands. a $29 value free. ♪ ♪ cause during the holidays, keeping ur identity protected means keeping your family protected. charles: hour two and here we go. we had the stories from the front lines of obamacare, from a
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man who has hundreds of employees. why must we shop on a family holiday? doc ablow, will put you, the american consumer on the couch. founders from lululemon's image. we'll have the latest chapter. as we listen to the united nations on climate change you would think we're all doomed. buckle up though. more "varney & company" about to begin. charles: okay, right off the bat we are starting with numbers right now and well, it is not good news for the economy. more than 2/3 of small business owners now think it is a bad time for them to expand. half are blaming what is going on in washington. liz, this is obviously really bad news. small businesses are engine of growth for this economy. connell: what they were actually saying, essentially they don't have huge lobbieses to lobby
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washington, d.c. they have known that. when we don't have the front operations to deal with tax and regulatoryypolicies it really hits us hard and hits job growth hard. charles: it is crazy, to your point. they don't have a voice. they go down there and a few organizations here and there. they don't get carveouts big business get. they don't get the tax breaks big businesses get and they're the engines of growth. liz: yeah. charles: these regulations with a companies with six employees have to get a seventh person to handle regulations and a 8th person to handle paperwork. they don't get the 6th and 7th employee because if they do they have to get rid of two people who are already been there. it mitigates the whole thing. it is crazy. i hope someone listens to the numbers. this is the true heartbeat and pulse of country. lizz i think you're right. charles: let's check on the big board. it has been an inconsequential session so far. trading in very narrow range.
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the dow is off about six points. i want to go to sandra smith at the cme. sandra, everyone is saying when the little guy gets in the big guy gets out of the market, so says conventional wisdom. what is your thinking? do you think a correction is comeing? >> charles, you and i talked about this over the past several years especially in the years where we saw the quote, unquote, smart money underperform the stock market. so the smart money or institutional investors, they're not always right and, you know, if you were to look at a really big point in history, look back to the early 1980s and interest rates, right? where the smart money kept betting interest rates would keep going higher and never ending from there. they were wrong. so don't always think that just because you're the little guy, the retail investor, that you're going to be wrong. if you have a gut feeling that things don't look good as these levels, go with it. sometimes it is the smaller, mom-and-pop retail investor that has their ear to the ground, is closer tied to the economy and they're feeling could be more
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right than the smart money. i don't, i don't like that smart money, dumb money thing. charles: right. >> i don't think it is conventional wisdom, charles. charles: i love that you say that. by the term conventional wisdom was coined because conventional wisdom is typically wrong. i love what you just said. here's probably the new story. may turn the kennedy story on its head. shoeshine boy will get out of the market when the hedge fund guys get in. thanks a lot, sandra. >> exactly. charles: charles: we want to go to nicole to see where are the shares are going right now. >> we're looking 7.5% loss, dean foods. you know them for land o' lakes and lehigh valley and swiss miss. what we're looking at here, the downside. they came out with quarterly numbers. but full year's earnings numbers they have cut. that is not good news. reverse stock split on the other thing that worth taking a look at is share repurchase program they have authorized.
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that is 300 million and dividend of seven cents will begin in the first quarter. they spun off white wave, the organic and so i business. don't forget that. number one reason to the downside, they cut their earnings outlook. charles: yeah, that will do it every time. nicole, thanks a lot. let's take a look at amazon. this season seems like everybody is aiming at them. they have a big target on their back. they're getting at it from all directions. speaking of which target is using amazon-like tactics to bring in customers. they're the top visited website. last black friday they pulled in more than 28 million visitors. flattery and imitation, there's an old saying about that. they will have more competition. liz: yeah, they will. we talk about alibaba and target doing sampson-style moves like putting goods in the stores if you buy them on the target website, physically in the stores as amazon goods does at a 7-eleven.
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amazon has to watch it. they are under deep pressure right now. if you see walmart hooking up with the u.s. post office sort of like how we see amazon doing, watch out. amazon will have to deal with big pressure from big-time companies like walmart, really coming after them big-time. charles: i think to your point the stock market is saying the same thing. this has been revenge of brick and mortar. best buy was supposed to be out of business. that was up huge from the loy. gamestop supposed to be out of business. up huge from the low. liz: absolutely i agree. charles: new this hour on obamacare, we've got a democratic senator leading a bipartisan attack on the president's signature health law. fox news has obtained a letter from senator kay hagen, democrat from north carolina. she wants an independent review into what went wrong with the website. what do you think about this one? liz: you know whether it ets anywhere remains to be seen. again, i know i said this in the last hour, the real issue is, do people really go to buy insurance on government-run
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websites? we have never seen this experiment in the history of the country. will they get anywhere though to an independent review of the entire website? i'm not so sure at this point because they will say, listen we have to get it up and running because people face a mandate tax, right? charles: or, while we're trying to figure the thing out, give it a one-year break. almost at this point seems like it is common sense. again i have said already, what drove the website? problems with the website comes down to two things in my mind, ideology and ego. the president said october 1st, i don't care. we're not going a traditional way. we'll not bet a dozen or two dozen -- liz: here's the thing. why not let the consumer apply through the insurers and not through government website where they have the information? that has never been done before. it is so complicated. they have to basically verify the tax credits there. they have to basically hook up with the insurance companies. one of the most complicated launches we've ever seen. you know what, got to say time and again, what is intent of the government? why not have them apply directly
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to insurers and do after the fact auditing. charles: ironically insurance companies say the same thing. there is a piece in the "new york times" about that this morning. google unveiling a new feature for glass wearable computer. it will allow you to search for songs and listen to the music by talking to it. they will introduce a special set of ear bud designed for the glass available by the end of the month for 85 bucks. nicole, you know what? you're starting to real me in. this sounds like a killer feature. liz: this sun believable, right? this is so cool, but not moving the stock. the stock is virtually flat. it is down 76 cents at $1009. of course it is a great performer this year but google glass, we'll see. i wonder if that will be on people's christmas list. charles: we'll see. thanks a lot. i want to go back to liz for a minute. emac, because we're getting a lot of tweets about the piece with david stockman. a lot of the anti-fed people are upset we didn't let stockman speak more. his point was the fed creates a
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lost bubbles. the point you and i were making for the audience to understand, we don't disagree with that but what stage of the bubble phase are we in there is no evidence that we're in a bubble right now. liz: stock prices trading half the dot-com era. 20 times basis. that is 5%age points above the norm. in the dot-com era they were 35 to 40 times earnings, price valuation. i hear what he is saying. i agree. i don't like what the fed is doing with basically massive money printing. it is really, really bad. we've never seen what they're doing in the history of the country. charles: i wish for one that there were no fed. i think fiscal policy in the country is designed to turn us upside down, anticapitalism, anti-suck success. liz: buying growth by devaluing the dollar. charles: thanks a lot. want to get back to obamacare, dismal enrollment numbers a new report find that fewer than 50,000 people signed up for the program in the first month. let's face it. it's a far cry from the half a
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million to a million a lot of people thought but big businesses and small businesses they're starting to feel the pinch. zane tankel, apple metro ceo, owns 40 applebee's restaurants in the new york city area. you kept us up-to-date on this. give us an update on this how is it working out for the employees and how is working out tore you. >> charles, the only surprise is you're surprised. charles: i was prepared to be surprised but not to this degree. >> i think i said on air here with stuart varney, that this was exactly predictable a year ago. it is upside down. it doesn't work. i don't know when we're going to throw in the towel, hey, let's refrying it. charles: you have a relationship with people who, a lot of people who look up to the president. >> sure. charles: and you have honest conversations with them. do you sense any sort of, okay, the epiphany, frustration, change of mind, change of heart? >> of course. there is a crack. is it a schism?
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no. do people still think obamacare is for obamacare? yes. but there's a crack. reality starts to set in after a period of time. liz: where do you see the crack? right now feels like the sensibility is it is not whether you win or lose, how you place the blame? >> i don't think it is the blame. don't forget the only problem with democracy, oneevote, one man. you get the same vote as person who doesn't know a thing what is going on in the world gets. liz: but where's the crack? where are you seeing it? >> when it costs them in their pocketbook. the crack is when they start to feel, i think i said a while ago, that when i asked about obamacare early on everybody thought they knew all about it. and that was obamacares. we didn't know, cost gets attached to it. well there's got to be a reason. you start to justify. you don't really individual right. i don't really understand it. as it starts to take hold and
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impact where there is a cost attached to it, the crack will widen. that's the crack, liz. charles: you have, your restaurants are in new york city, at least in the surrounding area. >> yes. charles: we had democrat bill deblasio, he won new york city huge. talks about higher taxes. he really is coming, even further left of than president obama. >> he is. charles: how do you feel as a business owner? >> well, i think that there's, you know you have to do one thing to get the nomination. you have to do another thing to after you get to be -- charles: then there is guy like hollande, france, who does what he says to the detriment of the entire nation. >> there is no doubt. charles: i don't think deblasio is playing around. i think he wants to come after guys like you and your business. >> i think that, we have to wait and see. i'm hopeful. play plan for the worst and hope for the best kind of philosophy. a lot has to do as far as new york is concerned with who he names commissioner. hear as couple candidates i happen to know i think are
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pretty good guys. charles: right. >> and reality is going to set in, charles, with him. as a matter of fact, coincidentally i was in nicaragua yesterday, last night. charles: speaking of sandinistas. >> speaking of bill deblasio. charles: you guys did something yesterday to honor the vets. want to tell us about it. >> we did. we started this a number of years ago, we say thank you, any vet in uniform or honorable discharge card, get as free meal. three-course meal. whatever he wants. i was looking at product mix on the way over here. surprise, surprise, everybody ordered a steak. connell: i love it. >> you know what kind of beer? mostly domestic or foreign beers? >> no, it was domestic. connell: you're throwing beer and booze in there. >> no, we give them a beer but a three-course meal. liz: and a beer. >> and a beer. charles: that is fantastic stuff. zane, we'll need you keep us abreast on all these fronts.
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new york city, obviously epicenter of capitalism in america. deblasio scare as lot of people. he has to scare you. >> yeah. charles: obamacare, all the things you warned us about are coming to fruition. >> i'm glad to that. charles: really appreciate it. on the topic of wealth redistribution, obviously alive and well in this country. the judge will be fired up about it. we have the judge up next. ♪ you really love, what would you do?" ♪ [ woman ] i'd be a writer.
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really makes my life easier. maybe a promotion is in order. good news. i got aew title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. charles: quick, check out an any's. organic food company. credit suisse raised ipo price to 54. setted down since then. wealth redistribution from the tax foundation. -- annie's. they get $5.28 for every dollar in the system. highest income earners get a quarterback from the system, for each dollar they put in. all rise, judge andrew
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napolitano is here for more on that one. it is not surprising,. >> no, it's not. charles: great when someone sits down and actually crunches the numbers, so we get a visual with this in our mind and understand argume shares is specious a at best? >> the numbers are startling. they really haven't changed except they get a little bit more in the direction of redistribution every year. certainly in the, in the obama years. the government collects about 2.5 trillion in revenue a year. 1% of americans pay the first trillion. 39% pay the second trillion. so, 3/4 of all the money all the government collects are paid by 40% of americans. 50% of americans, number is 4. infamous, mitt romney, same 4. charres: right. >> receive a substantial portion of their subsistence from the government, from a government, from -- charles: we shouldn't forget the government borrow as trillion on top of that.
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>> correct. of the government spends 3.5 or 3.6. connell: 16 trillion-dollar deficit. >> that is how it got to have 17 trillion. so how does this happen? this happens very incrementally. fdr says, social security, it is your money. hold it for you, we'll give it back to you. it is not welfare. lbj adds medicare and medicaid. only for the truly poor, truly destitute, truly sick. fast forward another 40 years. anybody earning less than $40,000 a year can get substantial benefits from the government. charles: new obamacare law. if you make less than 400% of poverty you get a subsidy. >> correct. charles: we're creating another entitlement. creating another multitrillion dollar entitlement. >> that is the 40,000. that is 400% of poverty. >> yeah. >> but think about what the government is doing. what fdr started. what lbj enhanced. what barack obama has put the crown jewel on. dependence. dependence on not only
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government but dependence on the democratic party. because the democratic party derives vast troves of financial support, but voting support from the huge masses is of people that dependent upon the government. if they want to stay dependent upon the government, they have interest in continuing to vote for democrats. charles: but here's the problem though. you're dependent on the government. that means you're never self-reliant. >> correct. charles: individual buy into this, they never develop as people. they never get a chance to grab, what is the essence of america and have amazing fulfilling life. >> correct. they will never know freedom and prosperity and being self-made the way those of us who are not dependent have an opportunity. fully actuallyize themselves. connell: single mom, who has kid, husband left her, struggling to race children. how do you speak to that. >> i would hope she would receive assistance from the states and not federal government. liz: why? >> because the federal government is not authorized under the constitution to do it
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and states are authorized under their constitutions to do it. the theory being the government closest to the problem, a mom with three children -- liz: people get lost, you know. >> should move to another state. closest to the problem should address the issue. liz: really? charles: the point you're making, emac, suggest to her, don't buy of the kids nikes. liz: i'm not saying she does. charles: don't smoke a pack of cigarettes a day. there are things people can do. you won't change your own life. develop a platform to change your kids lives. liz: we have to protect the truly destitute. i think we both agree. charles: i think we are. >> i had lunch yesterday with very, very famous wealthy person in new york city, who all of us know been on the show many times. liz: stuart varney? >> won't give you the name. >> didn't say wealthiest. >> five years old and mother worked two jobs while the kid went to school. this guy is now 15 figures. charles: by the way -- >> no assistance from the government. liz: i have get it. i get it. charles: same report, top 1% for every dollar they put into the
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kitty they get six cents in government benefits. >> that shouldn't surprise anybody. >> judge, thanks. >> a pleasure, guys. charles: global warming activists you won't believe it, they're at it again. the very fabric of society is at stake, right now, we're this close to total destruction. you will find out why, next. >> embrace the "hollywood" sign. the "hollywood" sign is gone. just exploding. [screaming] she's always been able to brighten your day.
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charles: wow, look who is leading the dow, home depot and pfizer. two food ol' names right there. there is a new united nation report on climate change that says it is not only pad for the environment but bad for society. according to the report resources will be threatened, violent conflict will be there. it will all be crazy. liz, time to run for the hills. liz: i'm not running for the his just yet. there is no consensus. i get it. i say, i see climate change happening but what we're talking about now is 190 countries meeting to discuss this u.n. report. they're talking about $100 billion coming from the
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developed world into the developing world, to deal with climate change by 2020. who will administer that? who will get the money? we're talking big bucks right now, charles. charles: china will not fork over money. they offered the philippines like 100 grand for major disaster. india will not fork over money. brazil will not fork over money. talk about wealth redistribution. they talk about that. a planet in peril, global food supply being at risk. no wheat, no rice, no corn. remind me of maltas in the 1700's, population is exploding and we'll run out of food. we've been hearing this not just for a few years, hundreds of years, a couple thousand years. liz: by the way he was disavowed because we had the great projects in africa which basically did create crops through engineering. i'm not for genetically modified engineering. charles: but we didn't run out of food. liz: right. charles: the planet was not in peril then. liz: i'm saying humanity,
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mankind can come up with solutions we hope, right? charles: you always have to wonder when the united nations wants to put the hands in the pockets of american taxpayer and the west. guilt aspect of it. i don't like that part. liz: we don't even know if there is an ice age coming. we have no idea what the weather system will do. global warming. then an ice age. i'm not an expert, just a journalist. charles: more and more stores are opening up on thanksgiving. get this, 35 million of you went to the stores on the same holiday last year. what happened to the family tradition to get around and watch the detroit lions lose a football game? we have dr. keith ablow next. ♪
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charles: black friday shopping has become an american family tradition. but what about shopping on thanksgiving? so many retailers are opening on wednesday night while others are still shunning the idea. but what does dr. keith ablow think about all this? it seems to some consumerism run amok. >> here's what i think, charles.
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if there are customers, retailer would want them. i don't know that we want to be in the business of prescribing behaviors because if we start to say who can open and who can't, sooner or later some president may have in mind he can tell you whether or not to buy health insurance or not. wait a second, that already happened. but we better backup and stop telling them what to do. charles: what is the answer in your industry? i thought part of the essence was to get to some sort of, i don't know, for lack of a better term, behavior modification. keeping the families in it together. isn't this sort of the antithesis of what you try to do? >> i totally think that is right. what i suggest to a family that thanksgiving is an appropriate time together. to have closeness. to promote values. yes. what i also have to say that teenagers in the family are probably going to be on facebo
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facebook, we're going to have several people watching a football game and there will be controversy about head, and the rest of it? sure. the bottom line is it is all about the family and so much more than what is happening on thanksgiving. it is what is happening on not thanksgiving determines if you love your parents and you will be a good citizen. observing things getting has turned into frenzy watching tv and going on facebook. if that's going to be your thanksgiving, go to the mall. charles: i hear you. and leave the drunk uncle at the house. >> please leave him at the house. liz: it is interesting macy's thanksgiving day parade is opening on turkey day. it is opening on turkey day. pc richards saying this is wrong, we will not open on thanksgiving. they are actually going after retailer's saying that is a bad
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idea, it should be about being with your family, not being at the mall. charles: i had to tell you, if you've ever been to pc richards, if you don't take that extended warranty. liz: exactly. charles: i digress a little bit. the big topic this week is turning out to be about the stock market and some sort of a bubble. earlier in the show we had david stockman on in the line of thinking you are. i want to ask you. people, regular people getting into stocks at this point. does that somehow suggest the market has had some sort of a top in your mind? >> you know this world better than i've yet i have had that concern from a psychological perspective for a long time. that is what i hear from friends of mine who are quite expert at using their money to make lots more money. i don't trust the market at these levels and the little guys getting in. i think you have got to worry
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because i still feel like there is a lot of fiction baked into the fundamentals of the market. i know we disagree on this, but i would tell people listen, follow the guys who are the big fish and emulate what they are doing. if you're going to leave your money for 20 or 30 years, i agree with you, charles, it will turn out okay. but on the other hand it will be and psychologically a er in thet term, i feel. charles: is there any chance i will bump into you at the mall at 7:30? >> i would make that our joint family outing. we will head over to best buy or whatever it is still in business across the country and we will make it happen. charles: i will block and you follow me, you can pay for the meal. >> that is good, we will do that. charles: think you a lot, dr. keith, we really appreciate it. lululemon's founder lamed women's body for the yoga pants.
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charles: here's the latest devastation from the typhoon in the philippines. 1700 dead, officials fearing it will be much higher. as high as 10,000 or more. tragic story out of oklahoma, a plane crash that has now been confirmed by the defense department. the doctor was in the plan and also near tulsa. remember the toronto mayor who admitted to smoking crack? the city council is excited to vote on a motion calling on him to resign but he says he is not going anywhere however the council has no way to force him out unless you convicted of a crime. and lululemon's founder blames women for their bodies for the yoga problems and now is saying sorry. he gave an interesting apology. i will ask you and you will get a chance to see. ♪
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real estate in hong kong, and the opticindustry in germany? at t. rowe price, we understand the cnections of a complex, global economy. it's just one reason over 70% of our mutuafunds beat their 10-year lipper average. t. rowe price. inst with confidence. request a prosptus or summary prospectus with investment information, risk fees and expenses to reaead and consider carefuy before investing. charles: we have a major news alert for you. president elkland and weighing in on the obamacare disaster. in an interview posted, clinton says president obama should keep his pledge to allow people to keep their current health care plans if they like them. this is a true bombshell. liz: it is. it is a dramatic departure for president bill clinton to be saying this because we haven't really heard him when he and in such a forceful way about the problems of health reform. he is coming out of the gate ahead of the president saying this is how you do it.
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you acknowledge what people's pain is, which he has done in his career, and say we see it, we see what is going on, we acknowledge it and we will fix it. he is doing it in a big play. charles: he was believable, people believe he felt your pain. apology was not enough, haman and hawing is not enough. liz: he just put him in a box. the president did win reelection sayiig if you like your plan you can keep it. charles: you can argue the president was reelected on a lie unless he fixes it. but a fix means more subsidies, i fixed means taxes and more money someplace. liz: 80-year-olds or 90-year-old have to pay for fertility coverage in the government issued plans. charles: and i don't have to get a mammogram. thanks a lot.
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3d printers, hitting a new high. nicole: you were the first to tell us about this. the takeover talks of 3d systems, that seems so peanuts. can i tell you what i have done this month? it is up almost 25%. it is up almost 50%. today is just another new high for the 3d systems. charles: those of the guys you have the 3d printer offset that printed a chess piece. phenomenal. nicole: that is cool. charles: it is cool. a lot of people who watch this show bought that stock. it keeps going up, so we will ride the waves. appreciate your shout out. lululemon founder has found himself in serious hot water after blaming the company most recent problem, the see-through pants on women's thighs.
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saying quite frankly some women's bodies actually don't work. now wilson is making a apology for his comments. i want you to take a listen to this. >> i'm sad, i'm really sad. i'm sad for the repercussions of @y actions. i'm sad for the people at lululemon who i care so much about who had to face the brunt of my actions. i take responsibility for all that has occurred and the impact it has had on you. i'm sorry to have put you all through this. for all of you who have made lululemon what it is today, i ask you to sustain a conversation above the fray. i ask you to prove the culture that you have built cannot be chipped away. thank you. charles: okay, so set going to be enough? creating their brand, here with that one and more on that.
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first of all i guess we have to let the audience know that videos aimed more at the employees of lululemon whose job he made a whole lot harder, but will it get the customers back? >> hate to laugh at somebody when they are down, but haven't we all learned when somebody says a woman says to you to these genes make my butt look fat, you say no, baby, you look great. i mean, come on. charles: that his husband, boyfriend 101). >> that is what i am saying. charles: in an era where getting apologies particularly sincere apologies is more and more rare, iglesias took this step but do you think it is going to be enough? >> no, it is never enough. you have to apologize. i think it is sincere. as sincere as i could do it. but you have to say this is what i am going to do to make sure this doesn't happen again.
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it is not just his own actions, but you have to do something proactive commie have to do something positive, and he didn't really do that. he told his employees to stay above the fray. go sell stuff, go sell stuff. that is not the way to handle it. liz: that sentence jumped out at me too. i wanted to ask in the conversation about the fray, but meanwhile he has had to deal with one in 20, about one in 20 of the yoga pants actually frying around the edges and have had to replace them. what is he really crying about in this video, right? speak up maybe that is what he was talking about. this product is clearly directed at women. and i actually like their products, i like them when i run because my sister and sister in law gave them to me as presence. now my wife saying i need running shorts, she will say wait a second, isn't that the idiot who said, and i will go by something else. he really has to do something
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right now to tell his core audience he is behind them, he supports them and he will take care of his products. charles: earlier this year the ceo of abercrombie and fitch made a similar statement. since then they have had to earnings reports. you would think anybody in charge of a publicly traded company might have learned their lesson. i happen to think this guy is a business hero. >> he is really crying in the one in eight pants having to be replaced. charles: 80 this is the mentality. even the nfl, every day a new scandal for the league. will they ever stop watching? >> that is exactly right. when you say the problem, which problem? the concussion conundrum, where do you draw the line? they will stop watching. don't forget you have vegas,
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television, all of that revenue. here is what is going to happen. in the long term, soccer going to make a big, big press because kids are playing it, parents feel better about it, we can change the demographics. it will take a while. like you and i grew up playing football, so we like that, kids are growing up playing other sports. the nfl really has to change something. they have an amazing opportunity right now to take bullying on as their issue to get behind it. have the biggest athletes stand up for the littlest kids. imagine if ray lewis came out and said bullying and cool, don't do it. the nfl could change the way we look at their sport. my thoughts on whether they will do it or not, not a chance. charles: your point about this, older adults we love it. 19 of the top 20 this year on television since the season began have been nfl football games, but also we are not
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letting our kids play the game so they will not be big-time fans. my son is not a fan. i told him to watch the carolina game and it ended up being 10-9. so he is still not a fan. i want to say, bruce comeau talked about sincerity in the apology. they got in trouble with pink campaign. maybe wear a purple ribbon. how do they really show the public they are contrite and understand the locker room is a bad place, changed at least the culture and get us to believe that? >> they did it when you were a kid and when i was a kid. i grew up in miami, i am a dolphin fan. when i grew up i met those players. they came out into the community. they spend time with us and came to our clinics. i got to meet these guys, shake their hands, they were my hero. they don't do that now. they are behind fences, charging for autographs, they have forgotten who the fans are.
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what they have to do is reconfigure how they communicate with people and more importantly they have to get with the kids, in the programs and let the kids know they matter to them. charles: i love that answer. not just the retired guys, but people playing now. bruce, fantastic. i hope somebody's listening. >> thank you for calling me if they are. charles: back in the ussr. russia totalitarian laws for the media at the winter games. after this.
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>> coming up on the dobbs tonight at 7:00 eastern. if obamacare is so great why the president, congress and staff resistant to joining the exchanges without subsidies? louisiana senator on his bill to make health care fair in america. tonight 7:00 eastern. ♪ charles: rush announcing journalist at the 2014 winter olympics won't be allowed to use their cell phones to snap
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pictures and post them on extra mr. graham, facebook or twitter. telling reporters that if they do use their phones, some athletes during the games, they will lose their press credentials. what is russia thinking about here? liz: this is one of the stupidest things i've ever heard. so the best images were captured on iphones and all sorts of devices. that was the reports they are denying it. reporting that yes, russia's moving to yank gradations for journalist who use their devices. if they want great coverage, let the devices in. he wants to show the world how great you are at the opening ceremonies. so the best shots taken in england of the opening ceremonies. what are they doing? charles: catherine the great went around with a false front. we are doing pretty good. cap rotating their people.
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maybe they are hiding something, maybe they are hiding a desperate situation. it cannot be the event itself. liz: i cannot believe this is serious. it can't be serious they are thinking of doing this. charles: this the huge economic endeavor, a chance for them to display whatever greatness they think they have. liz: and get every photo you can to show it. charles: you can't stop this thing, by the way. you can't stop me from filming something and i won't be shaken down at the end of each day. it is absurd to your point, but the idea they are still thinking this way in this day and age does not bode well. >liz: what they're going to be doing. charles: yo imagine if a regular citizen if this is the way this sort of putin run government doesn't want journalism. liz: it is pretty pathetic. charles: it was the main topic, our main theme today. a major market correction coming
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♪ stay in the groove with ign. charles: earlier we asked you whether or not you thought we could be seeing a major market correction in the works. we also asked of you currently had money in the stock market or are you out. here's what you had to say. this entire economy is all smoke and mirrors. things are much worse than anybody could possibly know. says there are always market corrections, the big players will come out on top, the little guy will lose. only the big players will know when it will happen. it has been a real rough ride. liz: i agree with all those comments, they are spot on. but we don't know when the bubble will burst. it will take an interest rate spike.
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charles: my theory is watch gold, watch inflationary signs. right now we're fighting deflation. earnings are pretty good, but we will see. after rational exuberance, the market rallied another three years. obamacare development, president bill clinton coming out through president obama. the president should keep his promise and let people keep their plans. he makes a great point. liz: he really puts the president in a box. if he doesn't act on this you have him in the midterm election. charles: hillary is not only running but bill is making blocking and tackling already. connell is here. connell: i don't know if it is funny or whatever, it is interesting. thank you. we have a blurred picture to start with this hour. metlife stadium in new jersey,
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home to the giants and jets, home to the next super bowl. if you look at these new reports indicating you cannot even fill this stadium up with the number of people signed up so far for the government health care exchanges. that is what we will talk about today. apple's iphone and ipad. sampson responsible for the chips in these devices, now apple wants to do something about that. how is this for a merger? united states and canada getting together. an argument it needs to be done for both to survive, and we will hear that this hour. today is the date, 11-12-13. couples to have those numbers as a marriage date means a rush of money flowing into these vendors. this hour on "markets now." ♪ all right. dagen: nice illustration. connell: 11-12-13. dagen: nice illustration. connell: metlife stadium?
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