♪ imus in the morning ♪ >> day two of year five on "varney & company" starts now, good morning, everyone. an angry treasury department goes after the company that downgraded america's triple-a rating. bullying say some. target pushes its part-time workers in obamacare. an astonishing one in five households gets free food from the government and the guy who ran the bank bailout fund wants to be the republican governor of california. plus, a tech stock that's definitely not a winner today. yeah, this iere's a lot going od

"varney & company" is about to begin. ...and the little room above the strip mall f roble avenue. ♪ this magic momt it is the story of where every great idea begins. and of those o believed they had the power to do re. dell is honored to be part of some of the world'great stories. tt began much the same w ours did. in a little dorm ro -- 2713. ♪ this magic moment ♪

>> the east coast waking up in the aftermath of another winter storm. more than a foot of snow falling in many areas, but please, look at this. temperatures, once again dropping like a rock. it's going to be cold. well below freezing, at least into the weekend. the winter weather making travel tough. we've got the video, look at this, cars spinning out of control. that's virginia you're looking at right now. a bus in new jersey losing control, flipped over, landed in a snow bank on the side of the highway, that's new jersey. and here is a number that you're going to hear a lot about today. $5 billion. that's how much the economy supposedly lost during the last winter vortex. not this one, the last one. liz macdonald is here. chilly this morning, isn't it? >> chilly. stuart: i think that the $5 billion seems a very, very small number in a 15 1/2 trillion dollar economy. >> yeah.

liz: it's a blip. might have an impact on airline and restaurant stocks. they won't be travelling and eating out. but what happens, you pull in demand from future quarters and watch this, the new york fed says that hurricane sandy which caused massive deficit structure was a blip on the radar screen. they said it was statistical noise and maybe it will be white noise. stuart: that didn't stop the administration, president obama, last night blaming the weather on those lousy jobs numbers, that was an excuse liz: but there is seasonal impact of course we saw for the weather. we don't know how much. whether or not that holds up in the future in terms of scrutiny remains to be seen. stuart: i think we're in agreement on this one. >> i think we are. stuart: i don't think that cold snap as unpleasant as it is is going to hurt our economy that much. >> i agree. stuart: let's give the market, the dow will be down a little at

the opening bell today. it's mostly ibm's fault. it has-- it just reported subpar earnings. this is the tech stock that's not going to do well today. by the way, united technologies, that's a dow stock as well. also, not doing well. same story on the numbers side there. our market bear, and you're going to meet him in a couple of minutes, listen to this, they says the dow will drop to 5,000 by the year 2016. now, that's a bear, isn't it? don't worry, we're going to make him back it up. [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace

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cme group: how the world advances. ♪ baby, there ain't no mountain high enough ♪ >> okay, everybody, this is a play on the word mountain. ain't no mountain higher, mountains of snow cover the northeast. well over a foot in some areas, including, wait for it, the site of the super bowl ten days from now. a lot of snow there. so, here we have the profit reports coming in from the big names and so far, it's really not been good. ibm, united technologies, verizon all disappointing. larry levin in chicago, i say for the overall market. what say you? >> i would agree. last year, stuart, the s&p was up 30%. you know, every day people are watching the market and seeing

those hits, right? coach yesterday down about 8%. united technologies, ibm, all of those things taking big hits and your viewers out there own the stocks and it's tough to watch seeing the money come off the table and i think a lot of people are going to start taking profit. stuart: you have 10 seconds, is it a start of a correction? larry? >> i think it's the start of a correction. stuart: we hear that, larry levin. thanks very much indeed. check the big board, it's wednesday morning, we're up 6 points, however, i've got to tell you that ibm is dragging the dow -- welsh the dow is up 17 points now, but ibm is way down and that's taking points off the dow. nicole, how bad is it? >> down 4%, down 7 1/2 dollars. so 181.82. and the numbers missed and they're worried about possibly

lenovo and the deal and whether it's going to go through and now that we have the dow jones industrials down. stuart: we now have the dow down 14 points and i believe that ibm is drag the dow down 50 points in total. nicole: 50 points? see, that was the whole discussion we had yesterday about the dow, it's a weighted index and sometimes you see the other markets jumping and with the dow in this case, obviously, that's huge. stuart: give me apple. i know that goldman sachs just upgraded them. where are they? >> and that's a winner. the buy rating, up .3%, not a big move for an upgrade. stuart: a buck on a $500 stock is not a big move. you've got that right. united technologies, that's the largest maker of air conditioners and elevators. the all knowing analysts were expecting better numbers and

didn't get them. i believe that united technology is this morning, coach, would you believe that their sales fell during the christmas season. they were clearly hurt by their rivals, michael kors, kate spade and look at that, coach down 7% first thing this morning. another stock for you, google, shares hitting a high yet again. look at them now, please. well over $1100. closing in on 1200. i'd like to put -- 1167, okay, trying to get it on the screen for you. 1167 on google right now. all right. let's get to that market prediction, how is this for you? the dow hit 17,200 by may of this year, and then, it hits 5,000, all the way down to 5,000 in the year 2016. here is the man behind the

mayhem. market watcher harry dent coming to us from tampa, florida. all right. are you stocking up on freeze-dried food, bottled water? are you a survivalist with an outlook like that, harry dent? >> not quite, stuart, but we've had bubble after bubble for the last two decades and we keep having bigger bubbles and bigger burst. this is a very clear pattern. i have this year, this is why i'm making such a bold forecast. i have the four best cycles i've developed over 30 years, all pointing down at the same time for the next six years. it hasn't happened since 1930 to 34 and i have four major stock patterns converging on late april, early may, right around the targets, you said dow 17,200, s17,2 o 17,200, and the s&p. it was early october 2002 it says the markets bottomed and we should see a run up. i'm sticking my neck out and

saying, look, investors need to be careful, this year especially in the summer. if we don't see something happen by then then maybe the government saves the day, but i think that the government has stretched this bubble so far, all it's going to take is a trigger and this thing is going to blow. stuart: let's suppose i go along with your theory, your forecast. by the way, i admire you, you're clean-cut and give the absolute numbers and dates ap times and i respect and admire it, where do i put my money? if you're right and we drop to 5,000 on the dow a couple of years from now, where do i put my money in the meantime? >> well, you know, number one just get safe. be happy to preserve your capital at the top of a bubble. there's no better strategy than that. let the bubble burst and see how far it's going to burst and how difficult it's going to get and buy in just like we did in october of 2002. also the u.s. dollar tends to be the safe haven. and funds on the u.s. dollar uup will do well. stuart: you've the got to spell it it out.

you say get rid of stocks, obviously, get rid of bonds, i presume. i don't think you believe that gold is going to be a safe haven in this. so just cash, that's it, just cash, dollars, that's it? >> that's the simplest. you can be long the u.s. dollar index or gold funds. you can be short stocks with a small portfolio. stocks are in them, and when they're doing you can have a portion. depending your risk tolerance mix safe, cash, long u.s. dollar and i agree, gold may go up in the early stages, i see gold falling to $700 in the next few years and that's not going to be the safe haven people think it is. >> a lot of our viewers say how do i go long dollar futures? how do i short stocks? a lot of our viewers don't do that. are you basscally saying put your money into a money market mutual fund? is that it? >> because that's cash. >> that's the safest for most

people. it's easy. you can buy an inverse fund in stocks. it tracks the u.s. dollar and it's not hard to make the investments, you don't have to do futures, that's not something most people can do. stuart: can you disclose on this you own uup. is that, do you? >> i don't presently. i'm looking at making these shifts a couple of months from now. we don't quite -- our indicators short-term say it's close to the top. it's been bubbling in the last year as the previous guest said. anybody with half a brain would say we're going to have a 10 to 20% correction this year. my position is bubbles don't correct, they burst and i explain this in depth in my new book, the demographic cliff. stuart: anyone with half a brain. ooh. thank you, harry, appreciate you being with us. amazon responding to reports, telling fox business it has no plans for an on-line pay tv service. the latest, liz? >> this is a story about content. this is a game had changing moment in what's happening with streaming video.

amazon has been moving into possibly licensing new content that it will likely develop. that's what we're hearing. tv content that's water-cooler ready to talk about at work the next day. 41,000 films already available at amazon. tv shows including "downton abbey," to stream. and that's where the game is and will it continue to roil the cable industry. stuart: i've got an obamacare headline from target. it's cutting health care coverage for part-time workers, pushing them, effectively, into those government exchanges. read anything into this, liz? >> yeah, this is part of the growing trend of businesses basically delinking health coverage from worker pay and that's basically been an offering compensation since the 40's. target's joining trader joe's, home depot, walgreen's and basically cutting back on part-time coverage and pushing these workers onto exchanges. stuart: all right. we're not going to cover you. go elsewhere liz: that's right. stuart: get off.

lose yourself. all right. back to the market. three big stocks hitting new highs, i've got them for you, google, united technologies and facebook. look at them go. actually google just down, what, just 52 cents, but 1163 on google. china's online juggernaut, that would be alibaba. the ceo says it's facing unprecedented channels when it comes to breaking into the mobile market. alibaba knows mobile is where it's at, but the company isn't there yet. the investors are taking note. the share prices of yahoo! owners about a quarter of it. and here is vice-president for more on this, how much trouble is alibaba in and therefore, how much trouble is yahoo! in? >> so a tremendous leader for

alibaba, it grew 60% last year year on year, it has not made as much of a dent in mobile as it should have. stuart: is that a big deal, really important in the alibaba world? >> i believe it's important in the long-term. so just to give you a sense, china has three times the number of smart phone users as does the u.s. and the average chinese user is almost twice as more likely to buy something on the mobile phone than the u.s. user. all of that says big opportunity for alibaba. stuart: is this part of alibaba, the top guy saying to his employees, you sign up 100 people for the mobile service or else no bonus. that's part of the big story, isn't it? >> absolutely. it's funny to think that -- i have to believe that, sure, alibaba has a lot of employees,

but even at 100 times that it's not likely to make it dent. and i believe that jack ma taking it to the employees and saying we have to make sure that mobile is successful and we all have a personal stake in it. stuart: crid, thank you, we appreciate you being with us and what's going on with alibaba. appreciate it. let's check the big board, it's wednesday morning and a pick of the day and we're down 28 points. that puts the dow below 16-4. call it the scott walker effect. a renewed fight to get public worker unions out of politics. we'll bring you the man who is leading the charge after this. ♪

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>> we are down 34 points on the dow industrial average. we're below 16-4. as for the price of gold. where are we, he asks? 1,240 an ounce, down just a dollar today. check the share price of netflix, it's reporting earnings after the bell today, but get this, according it an analyst, netflix had a 33 million web subscribers in the fourth quarter. that stock is up. and strong profit at the parent company of chilies. and brinkers 49 bucks, up 3. that's 6% right now. and right now, government worker unions are allowed to use taxpayer money to automatically deduct union dues and use them

to fund political campaigns. there is a push in pennsylvania to end that. we're joined by matthew, the president of the commonwealth foundation. welcome to the program. i want to make sure i've got this right. is it, as of right now, does my money go through government unions to support political activity which i may not approve of, by the way, is that how it's working at the moment? >> well, it's working that way, not only in pennsylvania, but many states and taxpayers don't even know it that they are subsidizing the collection, not only of union dues that are used for political activity, but campaign contributions, stuart, that are used to fund candidates and cause that is really are many times against the taxpayers' interests. stuart: matthew, i just want to spell out the flow of money here. i'm a taxpayer, i pay money to the federal government which then reroutes it. does it reroute it to government unions in the the form of pay to union members who work for the government who then divert it to

political activity? is that the flow of money at the moment? >> well, what we're talking about really here isn't the pay to our public employees, teachers, state workers, but it's really the subsidizization of the payroll deductions that go on that collect that dues money and the campaign contribution, bundle it, send it off to the unions and really it's a subsidy that no other political organization enjoys. only the government unions are able to use taxpayer resources to collect their campaign contributions and union political money. stuart: now, you in pennsylvania, you want to stop that? you've got a bill before the state legislature that ends that practice, correct? >> we do. and this is not about busting unions, this is not about silencing their voice and policy debates. it's about making them play by the same rules as everyone else. the n.r.a. can't ask everyone to collect their dues money or

campaign contributions and neither should the nea. so this is aboness, it's simply about making them play by the same rules, going to their members, asking for their campaign contributions and their union dues, directly to their face, rather than using taxpayer resources to collect that political money. stuart: are you doing or trying to do in pennsylvania what governor scott walker did in wisconsin? wisconsin? >> well, certainly, there are components of this, but not as far reaching. this is simply about levelling the playing field and giving favor to none and equal opportunity for all. it's about empowering teachers and public employees, so that they can hold their union bosses more accountable. right now, when they don't have to look them in the face to gather that money when they can automatically deduct it out of their paycheck like the irs, there is a level of accountability that's lost in their transaction. we want to restore that to public employees and also get the taxpayers out of the subsidizization of politics.

stuart: matthew, would you please come back and tell us how you're doing. i know it's going to be a long, drawnout process, but give us a report, please. >> absolutely, thank you. stuart: we've got the dow jones industrials to the down side this morning and almost 28 minutes in, down 29 points. now, this is a troubling trend. animated movies sending an anti-capitalism message. here is the latest example, it's the lego movie that comes out next month. it couldn't be any more obvious. we'll explain next. look at this. >> we have learned that business plans to end the world as we know it, there is yet one hope, the special has arisen. >> i think i got it, but just in case, tell me the whole thing again. i wasn't listening.

>> i always call it democratic luxury that the kind of product that you buy in coach. well, coach stores got some stiff competition this past christmas and sales were down and that's taken the stock down nearly 6%. a tech name moving lower and taking the dow with it, ibm, disappointing numbers, it's down 3% now. here comes my take, it will be at 10:25 this morning. if you're even slightly right of center, what happens to you? here is a phrase, character

assassination. we'll bring you that next hour. now, we've seen this before, hollywood incorporating anti-capitolist themes throughout movies aimed at children. the bad oil tycoon in the latest muppet movie. and lorax featured two villains who were, of course, businessmen. and now, lord president business. that's the name of the evil villain in the new lego movie. liz macdonald you know more about it than i do. >> here is what's going on. the character is president businessman and his alter ego is lord business. he's overseeing a secret robot business to oversee the world and came up through the ranks to basically achieve world domination via capitalism. according to the lego website, he basically ran businesses in music, and television, and machines, and dairy products, milk products.

stuart: dairy products. >> the twitter-verse is afire saying this is more liberal hollywood propaganda and aren't hollywood studios themselves big business? where are they characterized? >> you can propagandize all you like to adults. that's fair game, hollywood has been doing it for a century, but to aim it at kids and they don't understand and take it in i think is flat-out wrong. >> yes. stuart: agree, liz, incredible. what's going on here? new at 10:00, the great flu shot debate. a doctor from glaxo is here, they make flu shots. did you know that the dominant flu strain this year is good old h1n1, that's swine flu. the doctor will explain it all for us. plus, thuggery at the treasury department, threats from tim geitner after s&p downgraded our credit rating. you know who is fired up about this? the judge:

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the modest first floor bedroom in tallinn, esnia and the southbound bus barreli down i-95. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had thpower to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did in a little dorm room -- 2713. ♪ this magic moment ♪ stuart: yes, we're covering the ibm selloff. yes, we are freezing in globally warm new york. glaxo wants me to take a flu shot. it will be a tough sell, doctor. the judge will pass judgment on the government police taking revenge for sop dropping our triple-a rating. more will be spent on mobile phone ads than radio ads. how did that happen?

don't you wipe them off your screen as quick as you can? and analyze this, in a movie a guy falls in love with a computer-generated female. i think it is a female. dr. appel on that. and the question, at the movie sitting in his seat because he is wearing google glass. ♪ stuart: all right, we start with breaking news on bernie madoff. we're getting reports he suffered a heart attack in federal prison. reportedly happened in december and he is recovering. he is 75, suffering from stage for kidney disease. serving 150 years for defrauding investors out of multi-billions of dollars in that ponzi scheme. he was arrested december 12, 2008.

a cold blast in the northeast. look at the windchill. it is cold, it is supposed to last until the weekend. more than a foot of snow fell in some places. driving really tough for some people. $5 billion, that is how much the economy supposedly lost during the last polar vortex. charles payne, sandra smith with us. it is a very small number in the context of a $15 trillion economy. the cold weather had no impact on the economy. >> i would disagree with that. if you cannot get your employees to shop at work, i don't care what the number is, that is painful to small business. i'm looking at the streets of new york city right now, you can barely get around in a taxicab. it can be hard to bounce back. i say that is a fairly decent

attempt. stuart: shoot me down before we even get started, what do you say? charles: in the grand scheme of things it is a drop in the bucket. sandra, you make a great point. i'm so upset at a few people who work for me today. this is the second, if i got in from my house, there are two people who should have made it in, but they didn't. when your workers don't step up to the plate. the customers are not out there either. in new york, he was so flat-footed yesterday, so unprepared, took two and half hours to get home, two hours of that was getting out of new york city. but he really blew it yesterday. blew it big time. stuart: i just walked across the street.

stuart: so you're really mad. >> this is last night i still think that this morning. lot of people are saying this is retaliation. they're althere are all kinds os this morning. political retaliation. that is like the george washington bridge and chris christie. great stuff. check the big board. the dow would be up if it were not for ibm. disappointing numbers from what we used to call big blue. dragging the overall dow industrials down. this is a rocky start to profit reporting season, charles. do you think it is rocky enough to suggest here comes a correction for the whole market? charles: it is still relatively

early. now we get these kind of numbers. these days and embrace visit iba surprise missed. >> ibm was the sole laggard, the sole loser commitments counted 2013. however we still have apple coming up. google earth coming up. too early to tell. stuart: ibm is kind of industrial company. charles: coaches down big today, companies that have been losing our big losers thus far, companies grinding it out are still grinding it out. a pullback maybe not 10%, stomach. stuart: i saw the coach problem coming.

i saw lines out the door at michael kors outlets and a sparse line going into coach. charles: very nice shoes, by the way. stuart: another dow dow stocks, united technologies. charles: they make elevators and air conditioners. the best performer on the dow jones industrial, did well on revenue. this year coming up and said the position to sustain the cost of production, good news. stuart: it is an industrial company. it is not it take company. it is doing well. thank you very much. i have an eye-opening number for

you. 20% of u.s. households are now on food stamps. to me that is a staggering number. one in five households in america, charles, getting free government food. i cannot believe that am in 2014. charles: it is an amazing embarrassment. a shameful number, we are obviously a country that believes in helping people, but are we creating a new dependency class? if we are, are we doing them more harm than good? i argue we're doing them much more harm than good. stuart: once you have a government program in place with so many people getting something, how do you retreat from that? charles: how do you retrieve from that. they have actually, this administration has made it more acceptable, made it more attractive.

stuart: they were buying votes come advertising, and in, get your free food before the election in 2012. sure enough, in they came. >> if it is an impactful enough, number is 23 million, 52,388 households on food stamps and over five years that number is up 51%. stuart: impactful is not a word, impact is not even a verb. charles: welcome to "varney & company." [laughter] stuart: the grammatical grinch. charles: i have learned a lot over the years. i have not applied it. >> does he do this to you? charles: yes. stuart: breaking news, the new york yankees have reportedly signed japanese pitcher.

the price $155 million over seven years. >> i am googling it. stuart: that is an impactful number. a new study suggests mobile ads hit $41.9 billion worth in the year 2017. a far cry from the amount on tv advertising. mobile ads will crush radio ads very soon. let's bring in from social radar. that is extraordinary statistics. who would have thought. i get rid of the ad as soon as i possibly can. i never responded to these things. why wa are we spending so much money going after new millennial's? >> first of all maybe if it had the voice from "her," the movie, you might like it.

stuart: i saw the movie. you know we are going to discuss it later, you know that, right? go ahead. >> they are becoming more and more relevant to smartphone users. the reason you will see this number is because radio and web, you have some information, in the future your smartphone is giving you not only the company information about you, but also your location. they are trying to become more relevant and it will help me out. i'm always going to be a consumer of goods and services. if it can be more relevant to me, i will love the mobile ads. stuart: talking generations here, you grew up with this, you used this, you like this stuff, don't you? >> yes, i love it. i ai'm not ashamed, i love it. love-hate relationship with ads.

if it can, the promise is it will make the add more relevant to me and make my life easier because it tells me here is something i want and i can easily click and why it. as a promising reality i the future for me. stuart: super bowl ads, some of the faces kind of oddly familiar. just watch this for a second. >> time to go to bed. >> don't you think it is time we all get our own places? stuart: remembered the remember? the popular trio from the '90s trio full house. i say this is directly going after you, young lady, millennial's and i think it will be a success. what do you say? >> who does not like danny, joey and jesse. that is a goal for all the ads on the super bowl is to be viral, for folks to share them. you can connect with them

through humor, connect to me through sentiment. i love full house. "cut it out" and all those phrases on the forefront of my tongue when i watch this ad. i am ready for the full ad on super bowl sunday. stuart: who were the twins? mary kate and ashley. so did you grow up with the olsen twins, copying their style and clothes? >> i think was a little bit more like michelle tanner, dj tanner era, but i may be age myself, but certainly a group that grew up with the olsen twins. i think that is with the teaser was all about, might have the whole group come together. millennial's will be paying attention. stuart: we love having you on the show.

social radar i think is the name there. speaking of the super bowl, metlife stadium in new jersey, 13 inches of snow from his latest storm, that is where the super bowl will be played 10 days from now. another snowstorm, this is a long-range forecast, another storm storm could hit next week. freezing temperatures, bundle up broncos and seahawks, they say it is going to be cold. call it big government intimidation, now revealed former treasury secretary tim geithner when he was a treasury secretary warned essence be about downgrading as united states of america. he issued a warning after they had done the downgrading. the judge so fired up about this you wouldn't believe it. i've never seen so many excellent natioexclamation poinl before. watch out, everybody, he is here next. tte or au lait?

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stuart: charles is want to make us some money right now. you have had this before. charles: i have. you always think of natural gas coming out of one of these storms, but this the company happen to love. in 2012 it cost $325 per foot to pull this stuff out. honotice $228. management is really working really well. natural gas prices are going up with the top 20 in the area, they own 15 of them. i love the way they are operating strong cash flow, over the next five years, over 60% per annual growth every single year. 60%. stuart: it is underneath pennsylvania and upstate new york, of the canadian border. you can't get that gas in new york state but you can get it in pennsylvania. if they change the rules in new york, that is a big if.

charles: they are expanding that given the keystone controversy. stuart: i'm calling it thuggery. we lost our aaa status. tim geithner told the company it would be held accountable for its actions. the justice department later filed a fraud lawsuit against the s&p. they called the lawsuit flat out retaliation. all rise, the judges feared. why are you so fired up, what did you expect? >> i spent people who enforce the law will obey the law. any allegation against tim geithner very similar to the allegation of the mayor of hoboken against the tenant governor in new jersey is that somebody in a position of power

threatened to use that power to retaliate against somebody who had the freedom to make the decision. it was if you don't approve a zoning change to allow this development, we are not going to get you sandy dollars. it has been denied the lieutenant governor. it has also been denied it basically is well we didn't like what you said about our credit rating, there will be consequences to this. stuart: friday, august 5, s&p downgrades america's triple-a -@rating. monday august the eighth man who runs the s&p gets a phone call from tim geithner, tim geithner says your calculations are wrong. he says you are wrong, we are right. >> and then alerting him he was unhappy. >> and he says you are accountable for this, there will

be a response to the government. speaker in fairness to the first amendment rights, a jury will be told if it comes to this, if there is a lawful interpretation of his words, they must accept the lawful interpretation. the only find his words are unlawful if there is no other rational interpretation. he could mean you will be held responsible, you will be held responsible in the court of public opinion. he does not have to prove its downgrade was accurate. the downgrade is an opinion as long as their opinion is based upon objective back, their opinion is protected speech. stuart: i have to make this point, to me this undermines the ability of a private sector company to make an objective financial analysis of our government, undermines it

completely. >> it is the height of thuggery to threaten people when they say things or do things the government doesn't like. charles: are being naive to say government wasn't intimidated company making administration look bad? would it be naive to believe it does exist? >> we now have a couple alleged and denied high-end, high level public examples of this. you are suggesting this happens all the time, we just don't know about it? but there are laws to prohibit. you know what this is called, what will brett would call this? attempted extortion. stuart: your right to be fired up about it. google glass, that is causing some drama over the weekend the owners of the theater contacted the fed to report a man wearing

google glass commonly believed he was illegally recording the movie. the guy gets pulled out of the movie, question him for hours later determining the repair of prescription devices and it was not being used to record the movie. new technology means new prudence. new line the challenge. >> the police should not take this seriously, what they should have done was made an inquiry, not the act of a guy. charles: how silly is that? stuart: visit big underground market for illegally taped first-run movies. charles: it is hard to fight it now. stuart: grossly overreacted to this.

charles: >> if you copy somethit it in > if you copy something at it in a drawer, don't know if you committed a crime. if the recording is not used to harm the movie or to benefit you. i don't know what the crime is. stuart: you cannot go into the movie house and record it. >> crime has to be harmful if there is no harm, there is no crime. stuart: you're taking revenue away from the people. speaker my hypothetical it was put in a drawer, and was not distributed. so the police don't know that, they are not in a position to yank this guy out. he would have said i am not leaving, talk to me when the movie is over. stuart: you are such a lawyer.

lawyers will burden us down with meaningless verbiage. impactful is not a word, is it? >> i don't think so. not a word, i am with you. in the oxford english dictionary. or in merriam-webster. american. stuart: i classify myself as a conservative and i am vilified because of it. my attack on character is next.

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stuart: it is a really bad flu season made worse by the return of the polar vortex. this year the flu is h1 and one, that swine flu. we also have dr. abdel to talk about the movie "her."

i sat through the whole thing. doesn't seem so far-fetched simile would fall in love with a computer, a female voice of a computer. he weighs in shortly. here is my take on being even slightly right of center politically in america today. i will sum it up real fast. character assassination, mockery, exclusion, retaliation. in other words, you, conservatives, you are out of polite society. suppose you are appalled one in every five households get free food from the government. that is true, but the left won't tell you. if you push for reform, you are vilified, you are starving children. the multimillionaire liberal jon stuart is sure to mock you on his show. and then we have governor cuomo of new york, if you disagree with his view on issues, you are

conservative extremist and there is "no place for you in the state." the subtext here is conservatives are bigots, classic, sliming. on the bigger level is the punishment to standard & poor's because they downgrade our triple-a rating. secretary geithner threaten retaliation and the s&p was hit with a $5 billion lawsuit. that is payback after being conservative but for crossing and leftist administration. republican chris christie is a bully. like republican senator tim scott is a ventriloquist dummy for the extreme right wing. the list of personal attacks go on and on. it makes me mad as hell. what gets me is not so much the personal attacks, it is the fact it is the left that has messed up america. it is the left which has given us a massive debt, a handout society, failing european look-alike society.

the left is morally and economically bankrupt. that is not a personal attack, that is objective criticism. [ me announcer ] this is the story

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we enable you to reachglobal mas and drive forward with broader possibilies. cme group: how the world advances. stuart: last hour we had how we dent on the show with a wild prediction, the dow will hit

17,200 by may of this year and wait for it, it will come all the way down to 5,000 in 2016. charles, you heard what he said. listen again to what he said. >> 30 years, dozens get clearer than this, last signal nearly this clear was early october of 2002 when it said the market had bottomed and we should see a big run up. i am sticking my neck out and saying investors need to be careful is this year, especially into the summer. if we don't see something happen by then, the government saves the day but the government has addressed this bubble so far all the will take as the trigger and this is going to blow. stuart: i got to respect a man who makes a long-term forecast but says it will go to the levels in this time frame. i respect to that. charles: i don't think he is sticking his neck out after the dow was up 10,000 points but i respect that people lot of work

into his prediction and that is predicated on a deflationary environment which is what the great depression was. a lot of people don't realize it but it was the ultimate deflationary death spiral. one crux of his argument is people in the west at age 46, when we peak spend, when we involve the most money and spent the most money, obviously the west and japan have gone beyond that age, generations behind it, are not in position to take up that particular slack. stuart: he is facing the sun demographics. charles: a lot on the age of society, a lot of it on the debt the we have out there. i respect the fact that he put a lot of work into this and i don't disagree, i have been concerned about the western world, the u.s. economy is the biggest threat to our stock market rally. one thing that makes me feel better is the aging demographics will change the 46 number because if you live to 65 you will be 88.

you may go out and spend some money. number 2 the rest of the world is coming on strong to fill the void and that has been one of my investments. i respect the work and don't dismiss it out of hand, i think we have a deflationary situation and that is why the fed has taken extraordinary risk but it is not monetary policy, has to be fiscal policy, can't be the welfare society, that is making it worse, not better. stuart: we will have harry dent back because i like time specific number specific predictions and he has got them. the flu season is making its rounds across the country. it usually does at this time of year and so far killed 20 children. h1n1 is popping up again making people really sick. here is the head of scientific affairs and public health in north america. welcome back to the program. good to see you again.

as i referred -- as i recall h1n1 is referred to as swine flu. >> caused the epidemic in 2009, has an circulating ever since and all of the flu vaccines since 2009 have had that stream in the vaccine. what we are seeing this year is that the h1n1 stream is causing the vast majority of disease in the united states, an epidemic across the u.s.. stuart: is h1n1 particular be devastating? trying to get the right word. particularly deadly? >> what we know from h1n1 and we can learn what happened in 2009, in 2009 the h1n1 cost 52,000 -- sorry, 52 million cases of influenza across the u.s. and in particular young and middle-aged -- stuart: 52 million cases of influenza in one year? >> in 2009-2010.

and the know that in that time frame the h1n1 was causing a lot of disease in young and middle-aged adults and will we are seeing this year is exactly what was happening back then, seeing the majority of disease in young and middle-aged adults and this is important because young and middle-aged adults who traditionally think they are not vulnerable to flu and flu vaccination rates are very low only 30% of adults getting their flu vaccine this year and that is about -- stuart: i am in my 60s, i am fit, hale and hearty, low-wage, drink no drugs, i am very healthy guy. convince me that i should have a flu vaccine. >> the thing about the flu is it is unpredictable. just because you yourself have been healthy and haven't had what you know is the flu illness in the past doesn't mean you won't get it this year and the

misery from flu is devastating for the individual. this is not your typical cold. this is being laid up with high fever, shakes and chills and muscle aches. you couldn't come to work if you had the flu. stuart: every year you come back and say you got to have it. strikes me g s k has a product which will come back every year, a cash cow for you. a particularly sarcastic view of what it is doing but that is the way it appears to me. you got a cash cow, never goes away. every year you have this product to sell and able to milk the latest flu season. >> glaxosmithkline makes a profit on flu vaccine which is good because it keeps us in business and the profit goes into the vaccines for the future. the centers for disease control stated influenza vaccination for our nation is one of the most cost-effective interventions for

public health. charles: i love that. that should be the answer for all capitalism. money we make goes back into saving humanity. it is true also be -- it is also true -- when wall street parlance you say you are talking to your book a little. >> really important because influence the causes tremendous loss of productivity in the united states. tens of billions of dollars in lost productivity people missing work, missing school, not being able to produce and as you brought out unfortunately this year 20 deaths in the united states. behind every one of those people being hospitalized, this is -- need vaccines. stuart: does your income go up if you sell a lot more vaccines? >> at glaxosmithkline our job is to make sure people live longer.

stuart: does your income go up? >> my income is not dependent on sales. stuart: i have to ask the question. and you answered it. thank you, g s k vaccine, thanks for joining us. >> of you get your vaccine this year. stuart: good luck. two stories after the break that have to do with technology. love your kids and they won't become anti-social internet addicts. the new hollywood movie, the main character falling in love with a virtual partner, the doctor puts both on the couch. >> still find myself having conversations in my mind, passionate arguments. know the feeling? copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment

that helps open my obstructed rways for a full 24 hours. spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers forudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. doctor about spiriva. does breathing with copd weigh you down?o ask y

stuart: bernie madoff reports he suffered a heart attack in federal prison in december. bernie madoff is 75 and suffering from kidney disease, 150 years, investors, the number we put on it is $17 billion. we also learned of the big money deal in baseball. new york yankees reportedly

signed japanese pitcher tanaka. at the fifth avenue store in new york city crews sent in to us clean up after the snow storm hit one of the 30 foot tall glass panel windows with the snowblower shattering it. the cost to replace the window could be $450,000. [ car alarm chirps ] ♪ [ male announcer ] we don't just certify our pre-owned vehicles we inspect, analyze, and recondition each one, until it's nothing short of a genuine certified pre-owned mercedes-benz for the next new owner. [ car alarm chirps ] hurry in to your authorized mercedes-benz dealer for 99% financg during our certied pre-owned sales event through february 28th. open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state.

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despite a fuel leak on the dreamliner. nicole: despite the stock they had a major issue overnight, stocks moved higher a 3-quarters of 1%, imagine being on a plane like this woman was on norwegian air lines, prepared to take off from bangkok to oslo and sought out the window that fuel was leaking onto the runway. imagine you are on that train. obviously canceled the flight and people were terrified, passengers, pouring out of the wing, i feel like throwing a sheet because the stock is that a new high. stuart: if you see fuel pouring out of the plane you are about to take off in you would think that would hurt the stock but actually not. go figure wall street. we got you. i recently went to see the movie hurt which is about a man who falls in love with the female voice of his intelligent

computer. watch this. >> i find myself having conversations in my mind, passionate arguments. stuart: i saw the movie. i enjoyed it, sat through the whole thing. the plot of the movie is not too far in the future, really realistic and i know someone who is agreeing with me. doctor, it was very realistic, it seemed very plausible in the not too distant future. frankly i found it almost frightening in its realism. i think you will agree with me. >> i agree. be afraid because this path of the we are walking down we have already begun and we are at the beginning. we have kids on club penguin asserting they have pets who are penguins and getting upset if the penguins don't play with

their toys or don't seem to be having a good time. when you try to stretch the many motions to machines you do them damage. that is the problem. to the extent you fall in love with your computer operating system you can't love as effectively as a human being. stuart: in the end, maybe i shouldn't do this but i will give the ending of the movie away. the man ditch's the computer and goes to a real life human being to have a relationship with. i guess the ending conforms with pat your view of how things should be. >> perhaps my hopes for how they should be but the problem is not everybody can cross rubicon and come back to our normal way of being so to the extent that you fall in love with your computer operating system you may not be able to just simply walk back in and fall in love with a beautiful and intelligent woman who moved you. you may not be moved in the same

way because what it is doing is contracting your range of empathy, making you relate to it in an artificial way. you can't necessarily relate in a normal way. stuart: i am fascinated by the idea of the relationship between individuals, computing power and this movie was about that. what do you make of the report that kids who use the internet too much do it because that is the result of bad parenting? i am sure you agree with that too. >> i do agree with it and it is connected to the first topic we discussed namely if kids are getting parenting where their parents are withholding and that is what this study showed where they are not apathetic they are going to go on a drug. we should stop saying use the internet. they are going to go on drugs. facebook is a drug. they are in pain and want to anesthetize themselves and right now the most accessible drug we

have is right on your desktop or on your phone and kids will get lost in that. it makes them feel better. is also addictive and it wrenches them from real human relationships. stuart: i think a lot of people agree with you. a lot of people will say not muchhyou can do about it. >> not much you can do about it until the problem becomes so acute that we do something about it so we will end up with detox centers for internet addiction. we already have a few in the country. we will end up with potentially warning labels on things like facebook. i think there should be one on it right now and put the word out, listen, you have got to do things like be physically active, have real pets, real relationships. we got to get this message out. stuart: you are one of the few people getting this message out. >> with your help. stuart: thank you for being part of the show. really intriguing subject.

thanks very much. now this. oscar-nominated movie wolf of wall street supporting actor jonah hills says he was paid a mere $60,000 for his role in the film. willing to take any amount just for the chance to work with director martin scorsese. hold on a second. breaking news. carl icahn tweeting he has bought $500 million more in apple's stock over the past two weeks. his investments crossed the $3 billion mark. can we look at apple shares? where are we right now? we are at above 1%. $5.54, up $5 on the carl icahn news. what have we got? hold on. time for that. i got that tease coming.

follow the prompter. charles: i want to give you my movie review. stuart: a prompter is impact will. more proof read the printing in the future is the future. the navy saying 3d printed buildings could be just around the corner. we will explain it next. mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protecon. and because usaa'commitment to see current and forr military members andheir families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve.

but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it waslow t. we talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs of puberty in children or changes in body hair or incased acne in women may occur. report these symptoms to your doctor. tell your doctorbout all medical conditions and medications. serious side effects could include increased sk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness or iitation where applied, increased red blood cell count, common side effects include skin redness headache, diarrhea, vomiting, and increase in psa. ask your doctor abt axiron.

stuart: the navy developing technology that will allow 3d buildings, technology will allow it to build a 2500 square foot structure in a single day. charles, that is futuristic. charles: it will save lives and make the military better and more efficient. it will also cost jobs. we talk about both sides of this debate. at some point ten or 15 years from now how dramatically will this change manufacturing in the workplace. ashley: never thought it would come to this. more varney coming next. [ male announcer ] once, there was a man

who found a magic seashell. it told him what was happening on the tradg floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, heoticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade. stuart: earlier i gave you my take on the character assassination of conservative. what's get to me is not just a personal attack but that it is the left that messed up america. here's what you have to say. roger. capitalism made us great, liberalism is taking us back

words. cheri. under the left will the rich have gotten richer randal elites more exclusive, the poor get poorer and middle-class people become poor. the audience agrees with me. charles: they want everyone to know santa was right and kim kapell went out of his way because he found the definition in two dictionaries. merriam-webster, adjective and definition impinge or make contact especially forcefully but just so you would be happy, in the oxford dictionary as well when it is used in a sentence such as an eye-catching and impact will design the 3d structure the navy made. stuart: what other nonsense. thank you for your input in the program. dagen mcdowell, get me out of this. dagen: thank you so much.

flight cancellations top 4,000 and continued to decline, the wicked winter storm disrupt service across the nation. wealthiest americans face a new tax rate, nearly 40%. we head live to the bose, switzerland where the world economic forum is underway. tied it says it will stop offering health care coverage to part-time workers, you are now in exchanges. that and more coming up in this hour of markets now. >> have a seat now. join us for the hour. connell: haven't heard anything about the weather in new york. dagen: look at the snow. it is pretty. connell: don't go out looking like that. break