situation there. [closing bell ringing] >> alibaba also a concern. so yahoo! dropped. david: way off on yahoo!, down 8%. liz: the bells are ringing on wall street so let's take a look to see how your money and stocks finished up. dow jones industrials getting chopped by 182 points. look at nasdaq, down 46. everything is off the lows of the session but when the federal reserve came out and said we'll cut another 10 billion off the bond buying program and taper continues, the markets took a dip but they were already down early this morning when turkey jump and hiked its interest rates pretty exponentially. so we're looking at a fall for most major indices. david: turkey, all emerging markets were basically doing the same thing, to jack up rates to strengthen the currencies. that hasn't worked. we'll see how that spills over into the markets. today's front page headlines. chairman ben bernanke's final policy meeting today and as

expected the fed reducing bond buying program another $10 billion a month to 65 billion overall. liz: with boeing's stock taking a beating after the aerospace giant disappointed investors with 2014 guidance specifically, the chairman and ceo, jim mcinerney said it has an order book that will keep boeing busy for nearly eight years. david: jetblue, rising ticket prices boosted revenue and the airline said flight cancellations because of bad weather this month will hurt first quarter results. >> at&t shares falling after the giant's lackluster earnings report. at&t subscriber growth fell short of analyst estimates amid fierce competition from t-mobile. david: dow chemical's stock jumped after the company beat esttmates. wasn't all down. dow unpressure from activist investor dan lobe, raised its dividend and tripled the share buyback program. liz: auction house sotheby's,

another company under siege from dan lobe says it will return 450 million to investors. the move coming a month after sotheby's said it would review its finances. "after the bell" is starting right now. david: qualcomm is reporting earnings right now. let's go to dennis kneale to find out what the details are. dennis. >> hello, david. we have a beat to the upside on earnings but a teensy miss to the downside on revenues. earnings per share $1.26, for qualcomm, big cell phone chipmaker. street was looking for $1.18. revenue misses by 50 million, comes in at $6.62 billion and wall street was looking for 6.billion. tech companies you want to see the top line grow. they need growth. the current quarter they project revenue of $6.2 billion. they're promised revenue growth of 5 to 11% for the coming

fiscal year. i have to check to see where the 6.72 projected for the current quarter is in line with the growth and the stock will react one way or the other. david: it is just ticking up a little bit right now. we should remember it has come down quite a bit because of qualcomm's links, liz, to apple. it came right down with apple. not quite as much of a fall as apple did but qualcomm is down. let's break down today ace market moves with the awl stair panel. charlie smith, fort pitt capital group chief investment officer who will tell us when the time is to reinvest the market around john beacon. and todd horowitz down in the pits of the cme. todd, kind of working qualcomm into your equation here. seems for moment, six down days out of seven is bad, market drop of almost 200 points on the dow is bad so is the party over on the market? >> hi david, hi liz. i think we're going lower.

we talked about levels in the market and unintended consequences of what the fed has done. the bottom line you saw with qualcomm. there is no growth. if you can't grow, you can't make money. eventually the cost-cutting and free money have to stop and you have to start growing your company to bring back health and get people to outspend and buy. the fed is panicking. remember, "trading places", they're panicking out there and i think we're in a little trouble. liz: the fed may be, i don't think the fed is panicking. i think the fed is staying the course yet we're looking at companies that are managing to do pretty well and make money. with qualcomm the revenue number was slightly light. s&p 500 is down 18 points. we're up double-digit percentages year-over-year. >> absolutely. liz: that brings in charlie smith. do you like these numbers? do you like the way the market looks beyond the day-to-day tick by tick? >> i don't think the fed is panicking. if we see them pull the taper off the table, that is reverse the 10 billion increements then

we might be able to say the fed is panicking i think they're following the playbook. liz: right. >> this all started with the negative chinese pmi number last year. we'll get the official, that was the hsb-c estimate. we'll get the official pmi tonight. that will be a number i think we should pay attention to. we haven't had a 10% correction since october of 2011. it is about time. david: john, the fed is not panicking perhaps but it is under new leadership. it is struggling to kind of find its way. of course the question about tapering, we had richard fisher on here about three months ago. actually it was in december, excuse me. beginning of december. he said back then he would have preferred a $20 billion a month taper, about twice as much as they're tapering now. let's play that and i will ask you a question related to it. >> i actually argued and i can only speak for myself, i argued for 20 billion. i think the market could have digested that. david: that was the first, this was the first time that richard

fisher has voted in the fed for two years and yet he voted with the fed. he didn't dissent and say no, i want $20 billion tapering. does that indicate there is a little horse trading going back and forth at the fed right now? >> i don't know if there would be any horse trading and to charlie's point i don't think the fed is panicking. i like the pick for janet yellen taking over as fed chair. she has been involved for a very long time and i think she is in a great job communicating and really laying out how the tapering is going to take place. i think the fed's attitude is slow as you go, analyze economic data, that continues to have mixed reviews but overall is improving. and as they're able to analyze that, they will continue to taper. i think you will see they will be ending qe before the end of the year. and that -- david: before the end of the year, by the way. >> yeah. david: how soon do you think they pick up the pace of tapering? >> i think there could be a lot of factors play into that. everything from political risk with things like the debt

ceiling debate that will be coming up. i think they will continue to watch housing in many sectors. unemployment obviously and whether that continues to improve or not. and so i think that they could potentially speed it up but i think a nice even pace as we go throughout the year. liz: which reflects on individual companies, todd. let me tell what you qualcomm is expecting full-year numbers, $5, to $5.20, earnings per share. let me show you the bid ask. the stock is trading more than 2% higher at this very moment. the midpoint is $5.10. that is two cents above the street estimates of $5.08. what you have a company doing gangbuster business all around the world and clearly people are buying these electronic pieces of equipment that qualcomm is in, mostly smartphones. that has got to be a thumb's up

for the economy both in the u.s. and globally, todd? >> that would be great if they can continue but again, we have problems with real growth. we saw with apple the other day. we saw it with qualcomm. yes, the forecasts are great. everything is wonderful but they got to show me the money. they have got to show me real growth and actually get these goods out. the problem is, that we still don't have enough employment to get these jobs out to get the people out to buy these. yes they're doing very well, but, we still do not have real growth and until we get real growth you can't get me excited about what's going on. they have to show some real manufacturing and real building and adding some new employees. david: charlie, you're 13% in cash. that is little more than stock managers i've seen around. when did you begin to take cash out of the market? >> well, we've been above 10% since mid-part of last year. we've been waiting for at least beginnings of what we're seeing now. we're hoping we get another 6 or% down to put some money to

work. one of the names we like is boeing. your last guest was talking about something growing and manufacturing. boeing is growing sales at mid single-digit type rate. we would love to buy boeing another 12 or 15 points lower. david: by the way as the market was down what, about 5%? >> not yet. we put about one percentage point of our cash holdings to work over the past week. we need to see probably another five to 7% down. liz: let's just quickly look at the bid and ask of facebook which is now up another $3 from the close right now. clearly as these numbers come out and we're looking at them at the moment, facebook closed at $53.53. for the bid, $56.84. these are moving quickly, $57.85. ask, $57.81. moving quickly. something in the numbers look very nice, we're parsing through but we don't want to give incorrect information but

revenue for versus estimate of 2.33 billion. dennis kneale, you've been looking at numbers. this looks like a revenue beat. people like that. >> this is both, both a revenue beat and earnings beat, liz. earnings per share come in at 31 cents and wall street was looking for only 27 cents. that is versus 17 cents a year ago. revenue comes in at 2.59 billion. wall street looking for only 2.33. wall street was expecting this company would grow revenue 46% but be able to grow earnings even higher, closer to the 60%. turns out both numbers come in even better. we have to look at the mobile breakdown and see if their mobile advertise something growing as much as their mobile users when mobile ads pay a lot less to facebook than display ads were its origins and mainstay to begin with. liz: dennis, we just had gene munster who is top, top analyst on facebook saying if he didn't see a sort after midpoint between 1 billion and

1.1 billion for facebook's mobile ad revenues. david: we got it right here as a matter of fact. 1.23 billion. that's the cash, 1.23 billion. that is the cash amount. payments and other fees, revenue. we are still waiting on the actual number. >> now understand -- david: now what do you see, dennis, go aaead. >> in the previous quarter they added 874 million mobile active users. that is out of 1.19 billion total. the analyst wantt to see it go up over 1 billion users. liz: want to see mobile revenue. >> revenue. liz: revenue between 1 billion and 1.1 billion. david: 1.23 billion. 1.23 billion. it's a beat on what your analyst wants to see. >> on mobile revenue. that is really important, if company if it does not navigate and swing on trapeze over to mobile it is dead. mobile ads the quarter before made up of 49% of total revenue. $808 million out of 1.1 billion. mobile users were 73% of mobile.

that shows you a spread, a gap how many users are mobile and yet far less of your advertising is mobile. they have to get that mobile advertising nnmber up to match the number of users that are mobile. >> dennis, i don't have the mobile advertising number but overall is 2.34 billion. how does that deal with what expectations were? >> now you're saying on revenue or on members? david: third quarter revenue from advertising, 2.34 billion. >> four they were looking for, most substantially all the revenue is indeed advertising. 2.33 was the total expectation. sounds like a pretty good number there. liz: mobile advertising revenue representing about 53% of ad revenue in q4 versus 49% in q3. >> okay. liz: that is exactly the number that gene munster told us to look at. he also said i said what's number two? youth engagement. that was the problem last quarter, right, dennis? >> yes it was. wall street got its nickers in a twist over report that is

facebook over billion users lost 3 million teenagers or 11 million. i don't think those are people advertisers, that is facebook's lifeblood, are trying to reach. i'm not worried about that one. david: good stuff, dennis. thank you very much. thank you charlie smith, todd, and we'll come back to you when s&p futures close. liz: you realize how quickly facebook started making money? that is huge. david: they're over the 50% hump. that is where they want to go in the right direction anyway. after hours the stock is up 2 1/2 bucks. let's go behind the numbers. we have an analyst who thinks that the stock could rise another 20% from where it is now. liz: plus he was the man who warned about a coming housing meltdown back in 2006 along with a dysfunctional financial market. that was just months before the economic collapse of 2007. what does his crystal ball telling him about in 2014? harvard economics professor martin feldstein joining us live next. david: you have to love marti.

what do you think by the way? did the fed get it right by continuing its tapering program another $10 billion? send us a tweet at atbfbn. your answers later this hour. ♪ [ male announcer ] at if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not?

what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a resear tool on thinkorswim. from td ameritrade.

cozy or cool? "meow" or "woof"? evything the way you want it ... until boom, it's bedtime! and your mattress a battleground of thwarted desire. enter the sleep number bed. designed to let couples sleep together in individualized comfort. he's a softy his sleep number setting is 35. you're the rock, at . and as your needs change er time you can adjust your bed to sleep better together. 48-month financing available through february 2 only at your local sleep mber store. find your sleep number setting and kn better sleep. 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 serve current and former military members andheir families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve.

liz: facebook stock continuing to jump in the after-hours market. let's head back to nicole petallides on the floor of the new york stock exchange. nicole. >> we're watching facebook here in the after-hours. right now we're seeing it move to the upside. here is the key. when you talk about mobile advertising those are numbers that you want to see. mobile ad numbers generated 53% of the total ad revenue here for facebook so that is huge. it closed at 53.53. the bid-ask in the $57 range. fourth quarter revenue rose 63%. that is great numbers for facebook. trading higher in the after-hours and one to watch tomorrow. liz: nicole, thank you very much. joining us now for more on facebook earnings by phone, victor anthony, topeka markets analyst and dennis kneale in the newsroom. 53% of all revenue coming in from mobile. victor, let's get right to it. is that, i think 1.05?

>> that is a huge number. the street was expecting one billion dollars in mobile advertising revenue so they beat by 24% so that's huge. david: yeah. yesterday, victor, we had reporting from yahoo! of course they were down primarily because they weren't getting as much for their ads. i'm wondering if facebook is pigging up ad revenue that yahoo! is losing? >> quite possibly. most of our checks throughout the quarter came back that facebook was actually taking market share. prices were increasing significantly on facebook's ad inventory because mainly of the demand. advertisers were clamoring all over each other to advertise on facebook during the fourth quarter. liz: dennis, what else do you see in the numbers as you are picking through them? we're looking for engagement. we may have to wait until the conference call before we get clarity on that, right? >> the important thing with tech companies, you go public and suddenly entire markets changes around.

that's what happened with facebook. when they went public they were a laptop company. suddenly they had to become a mobile company. that revenue was 23% of all advertising revenue for facebook. now it is at 53%. came in $1.23 billion for mobile ads, over half of the company's revenue. that is extraordinary transition they made surprisingly quickly. 53%, user base, 73% of its users are mobile. tough get that up there because mobile ads are lot cheaper than display ads. advertisers don't value mobile as highly. when the ads prompt that you buy something right away on the phone or go to the store you're passing by as it sends ad to your phone as you walk past it. david: victor, did you get nervous bull at reports of younger people moving away from facebook or did you have confidence they were sticking with it? >> you always have to keep that in perspective, even facebook themselves admitted that teens were at least low end, their

advertising revenue, low end usage of daily usage of facebook over time but you know i think most of the expects we do with teenagers what we come out with the fact that they are continuing to use facebook, not as much anymore. but when they go away to college, they use facebook a lot. when they come out of college, they use face look a lot. i'm not too concerned about the whole decline in teen trend reported by the media. liz: what are you concerned about? what should we be looking for? if they are saturated, this is a point that was made yesterday on this program, that you've got to watch out. so many people who use internet, 81% are signed up for facebook. there is that concern that you're a victim of your own success. there is not that much wiggle room to gather new business and new faces and new people? >> i disagree with that. if you look at population of the world, close to 7 billion, facebook has only 1.2 billion users on the platform.

the runway is long and wide in terms of adding users over time. they could go long and dean in emerging markets. in u.s. i think growth is limited. but if you go outside the u.s., emerging markets that is where the growth will come from. david: dennis, what about zuckerberg himself? he is dictator of company, may be a benign dictator but controls 60% of the voting stock to that company. is that concern to you or heard that as concern of anybody that buys into it? >> i think the reason investors buy the stock because he is inside that company. i'm not sure there are very man% other tech companies that are so closely aligned with the identity of the ceo the way apple was with steve jobs and mark zuckerberg, a young guy, has just managed to meet every hurdle. let's not forget. as we worry about teenagers, 11 million at most going away from facebook, they went to instagram, he was smart enough to buy at a billion dollars which we thought he was crazy

because it had no revenue. i'm not able to figure out what instagram did to the mobile ads. maybe it contributed. started selling mobile ads first time last quarter. i haven't been able to figure out a breakout on that end of it. david: don't fight the competition, buy it. >> yeah, i figure so especially if momentum stock. this stock is one that everyone started out hating. we called the ip-o a big debacle. we thought the stock should double on the very first day but look at it now. liz: good lesson. we want to thank dennis kneale and victor anthony weighing in on facebook off the highs. david: off 56 right now. one day after president obama called for 2014, to be quote, a year of action in his state of the union address we'll ask david stockman, president reagan's former budget director what he thinks about the president's speech and whether the obama administration and the fed are on the right track. i think i know his answer to that. liz: you never know with david stockman though. higher interest rates in countries like turkey fail to end the jitters over emerging

markets and their currency probbems. u.s. investors feeling the pain today. just look at lower right bug in our corner. next we find out what the smartest mind on wall street are thinking about a possible fix. welcome back. how is everything? there's nothing like being your own boss! anmy customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order.

good news. i got a new 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. 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. move here, expand he, or start a new business here and pay no taxes for ten years... we're new york. if there's something tt creates more jobs, and ows more businesses... we're open to it. start a tax-free business at startup-ny.com. (voseeker of the sublime.ro. you can separate runway diculousness... from fashionhat flies off the shelves. and you...rent from national. because only nional lets you choose any cand go.he aisle... and only national isanked highest in car rental

customer satisfaction by j.d. power. (natalie) ooooh, i like your style. (vo) so do we, business pro. so do we. go national. go like pro.

liz: time for quick speed read, five headlines, one minute. north dakota shale boom boosts jobless rate down 2.6% that is the nation's lowest rate followed by south dakota and nebraska at 3.6%. deutsche bank cutting investment bankers salaries and bonuses. compensation was reduced by 23% in the fourth quarter compared to the previous year. u.s. banks spent more than $153 million replacing 15.3 million debit and credit

cards since target's data breach. the theft affected as many as 110 million users. customers, it does remain under investigation. erskin bowles, co-chair of president obama's deficit commission, will become lead independent director at morgan stanley. bowles has served as a director of the board since 2005. angry bids homepage has been hacked. rovi yo says personal data middle east be pack seed by british and spy agencies. we talked about that yesterday. you have to be with fox business. [buzzer] david: absolutely. good for erskin bowles. glad to see him at morgan stanley. >> concern about stability of emerging markets flaring up again after interest rate hikes in turkey and south africa failed to stem a big slide in their currencies. liz: many are warning that u.s. markets may stay in seesaw action with overseas. liz macdonald is working with top mind to find out what they think can be done.

is it out of our hand, liz. >> that is great question. good to be with you david and liz. money goes where it is treated best. when we see rates go up in treasurys the money some cog out of emerging markets. this is a trend we saw started in 2011 but it has picked up in speed and intensity. we're talking to the best mind on wall street. some of my sources on goldman sachs and places like blackrock. what you saw with the turkish lira is really telling. turkey went in to protect the currency with a rapid rate hike of 4.25 points. tell you look what the lira did. it basically turned positive and then went negative. same with the south african rand. it is five-year low despite a half-point rate hike in south africa to protect the currency there. here is the storyline. we're essentially seeing foreign exchange reserves doubling since 2008. the capital markets and local currencies and debt, is really broad and really liquid and extremely volatile.

what wall street mind are telling me, yes, 2008 was year of u.s. and lehman brothers crisis, 2010 was essentially the year of greece. 2011 the e.u. the 2014 will be the year that emerging market central bankers need to step up and prove their credibility. turkey and south africa did it wrong according to these guys on wall street. what they are saying they should have done is this. tell the markets, get out in front of a rate hike. saying you will defend their currencies. then peg the currency to benchmarks like the euro or dollar, even basket of currencies. the next step they're saying set up perhaps your own currency bloc with neighboring countries and then raise interest rates. in other words if you raise rates without doing those two things, i would say the first two things it is lost in the markets. you will not get the impact and the bang for your currency buck that you expected. back to you guys. david: that is how george soros made a billion bucks in europe with the english pound. they tried to raise rates in order to stablize the currency.

they didn't. it went down and george soros made a mint. >> that is such a great point you make because that is exactly the point these guys on wall street are saying. they're using u.k. experience in '90 go. the rate hike came too late and two big and wasn't tell graveled properly. -- telegraphed properly. '97, '98 we had gyration in the currency markets in '97 and '98. still the s&p was up 30%, 26% for those two years. there was major correction. the dow went down 10:00% in '97 and 20% in 1998. we have to watch out for the whipsaw action as currency markets get roiled. back to you. david: the emerging markets fund is down 6%. that is big downward movement. liz, thank you very much. >> sure. liz: he was ahead of the curve when it came to the housing collapse and bubble that formed on wall street so what does he see ahead in 2014? are there any bubbles lurking

now? harvard professor martin feldstein joins us next. david: ice, snow, crippling atlanta. hundreds of drivers were stranded overnight on highways and students still stuck at schools waiting for help. latest on what is happening down there coming next. ♪ i ys say be thman with the plan

but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it was low testosterone, not age. 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 menith 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 doorbout all medical conditions and medications. serious side effects could include

increased sk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet obody swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness irritation where applied, increased red blood cell count, and blood clots in the legs. common side effects include skin redness heache, diarrhea, vomiting, and increase in psa. ask your doctor about axiron. to manage your money.r guy arnd 2 percent that's not much, you think except it's 2 peent every year. go to e*trade and find out how much our advice and guidance costs spoiler alert. it's low. it's guidance on your terms not ours. e*trade. less for u more for you.

jo breaking news. charlie gasparino has news on ben bernanke. charlie. >> he will have to take testimony or give testimony in the hank greenberg case on the aig bailout, that is against the federal government. remember hank greenberg wanted to take the former chairman's testimony. remember he was right in the middle of that bailout back in 2008. hank greenberg says it is unconstitutional bail yow!, the government taking 80% of the shares, ownership stake in aig, wiping out all shareholders including himself. this is still before a judge. we should point out another federal judge dismissed a case he had against the new york fed, this one, taking case against the u.s. government remains. and ben bernanke, the former fed chair, who is intimately involved in the bailout of aig, from what we hear, we're getting this from hank greenberg's attorneys, he will be giving testimony in this case. when he gives testimony is unclear. from what i understand the federal judge that is in the middle of this, thomas wheeler, is saying he will have to give

the testimony sometime in february. so it will be a pretty interesting thing when all this testimony gets released. i believe tim geithner has given testimony. i believe hank paulson has given testimony. tim geithner was new york fed chair at the time of the bailout. hank paulson was the treasury secretary. tim geithner became treasurysech lefter office. ben bernanke just left as fed chair. i believe when it gets public and i believe it will get public and we'll get a bird's-eye view exactly how one of the most momentous events of bail out of financial system including the bailout of this huge company, one case has been dropped, hank greenberg's case against the new york fed dismissed today. he may appeal. but it has been dismissed. this one against the u.s. government which controlled 80% of aig following that bailout, this still exists. david: fascinating. liz: ben bernanke will testify? >> well, according to a federal judge he could try to stop it this time but he is private

citizen, ben bernanke. he is no longer fed chairman. liz: charlie gasparino, breaking that news. he will have much more on foxbusiness.com and if he getting anything else he will break back in. well my next guest warned about a dysfunctional financial market but he did it before the explosion and overheated housing market blew up and warned about a growth in 2007. he takes out his crystal ball for you right here and tells you and yous what he sees ahead for 2014. joining us professor martin feldstein, harvard university professor of economics. wonderful to have you. we really want your opinion on this. you were so ahead of the game back in early 2007. take out the crystal ball for our viewers and tell us in the short term what you see for the year 2014? >> i think 2014 is going to be better than the last several years. for the last several years as you just said, i have continually said and said on your program, that i think that the economy is not going to do

as well as the fed or others thought it would. but i think 2014 has the advantage that households have a lot more wealth that happened last year, as the stock market went up and as house values went up and that will translate into more consumer spending. and also of course, we don't have the pushback coming from higher taxes that we had last year, higher payroll taxes and higher personal income taxes. so i think we've got a shot of doing significantly better in 2014 than we did in 2013 and in previous years. liz: well this is certainly welcome news, coming from you. you have a lot of legitimacy, because of your previous estimates and what you were so on the money with but is this because, and i don't know if it really matters, we'll take it, is it because of fed policy being so supportive and now we start to see tapering, or, is it because of administration policy where there was some stimulus spending now finally taking

hold? to what do you attribute it? >> no, it is not the stimulus spending which was back in 2010. no, it is the fact that the tax increases that were imposed at the, at the end of 2012, end of 2012 were not going to be having the same bad effect in 2014. so that's a boost. around i think the fed by pushing interest rates down, long rates down, gave the stock market the 30% increase that we saw last year. and whether that's going to last or not as interest rates rise i think there is a big question about that. bbt people are, did spend some of that last year. the savings rate fell as consumers spent more. and i think we'll see more of that going into 2014. liz: the president spoke last night. he did stress there is much more work to be done. he echoed some things you're talking about but he also spoke

about infrastructure spending. here's what he said and then i will get to you comment. here's the president. >> we'll need congress to protect more than three million jobs by finishing transportation and waterways bills this summer. [applause] that can happen. but i'll act on my own to slash bureaucracy and streamline permitting projects for key projects so we can get more construction workers on the job as fast as possible. liz: professor, where do you stand on infrastructure spending? >> if he can do it without increasing fiscal deficits by @ome kind of changing of permitting, well that's fine. but i think increasing infrastructure spending can only be done in a helpful way if it is combined with bringing down the out-year deficits, bringing down the debt-to-gdp ratio,

which really means dealing with the entitlement programs, with social security and medicare. i think that combination would be great. i think if we could see a substantial short-term stimulus over the next two, three, four, years associated with infrastructure spending but at the same time bringing down the debt-to-gdp ratio in the outyears, by making some fundamental changes in the rules of social security and medicare. liz: you take that. listen, as we finish up here, the fed chopped another 10 billion off its bond buying program. do you think that was the right decision to continue tapering? >> yes, i do. i think the tapering had run out of positive significant effects on the economy. it was creating risks, risks of excesses in the equity market. risks of excesses in lending.

higher risk lending. and in the international emerging markets. so i think it's a good thing that they're going to bring that program to an end. liz: marty, you've been on a long time with us and this is first time in a long time you are optimistic. we add heft to that thank you so much. >> i hope i'm right. liz: we do too. professor martin feldstein from harvard. of course he was in the reagan administration. sheaing short term stimulus spending on infrastructure and bringing down the deficit as the administration continued to try to do that would be a good thing. david: bring the economy up to where the market has been. we'll get another perspective on the fed from former reagan white house budget director david stockman on the fed and what has been speaking the markets since the -- spooking the markets since the beginning of the year. he may have blunt things to say about president obama's state of the union speech last night. stay tuned. dentures are very different to real teeth.

they're about 10 times softer and may have surface pores where bacteria can mtiply. polident kills 99.99% of odor causing bacteria and helps dissolve stains. that's why i recommend polident. [ male announcer ] cleaner, fresher, brighter every day. if you have a buness idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dreainto a reali. start your business today with legalzoom

david: well markets were spooked by central bank actions in emerging markets this morning and got pretty much what they expected from our own central bank which continues to cut back on bond buying program by 10 billion a month. the net of all these actions was the sixth down day out of seven. what is spooking the markets? former reagan budget director david stockman has ideas. he joins us. marty feldstein, his up analysis of economy for 2014. what do you think? >> i totally disagree. it is keynesian nonsense and blather. david: a former reagan guy, keynesian. >> he did same thing in white house. he was never a supply-sider. he was keynesian all along. we have 17 trillion-dollar debt and red ink boeing everywhere and talking about stimulus and infrastructure? we don't need that. it was all premised on wealth effect. people will spend more because they feel richer.

wait a minute. this is not real housing recovery. this is the compliments of the fed and hedge fund guys and lbl guys running around scottsdale. that is not healthy recovery. that is monetary inflation. the markets are vastly overvalued. that is what all this is about. today i think what we have is the monetary gong show has started. it will be traumatic, relentless and bloody from here forward. the central bankers at the fed and elsewhere in the world have no clue how to get out of this massive corner they painted themselves into. this huge expansion of balance sheets, suppression of interest rates, monetizaton of debt has been capitalized into the world markets. there are distortions, deformmations everywhere. david: geoff we go into the world markets, start with our markets. you've been calling this a bubble what is happening in our stock markets. >> sure a complete bubble. david: look at yearly chart of the s&p. if you look what happened since 2014, since beginning of this year, it is not really that bad. we haven't seen a debacle, a

panic selling. >> give it time. give it time. david: you ssggest it will happen. there it is that little drop that we're talking about right now. >> yaw but give it time. the point is we have massive financial inflation worldwide over the last four or five years. david: david, could you hold on for a second. we have breaking news. dennis kneale, go ahead. >> it's a stunner in. google all buturrendering in the cell phone market and agreeing to sell its handset business. this is motorola business that google bought for 12.5 billion doors la year or two ago, selling it to lenovo for $3 billion. we have to figure out whether google will hold on to the networking equipment part of motorola and getting rid of thinnest margin, the toughest business of hand-sets. at the time when google bought motorola which is losing hundred of millions of dollars for the company. by selling it to lenovo it gets rid of those losses of the at the time they bought it, google you're an ad search company, should you become a hardware-maker and competing against the other hardware

makers that want to put google on their phones? lenovo of china which bought ibm personal computer business years ago and bought ibm's cheaper personal server business, lenovo buys for $3 billion, google's wireless handset business. that is money losing proposition for google. they appear to be bailing out and surrendering it and handing it over to the chinese. david: by the way you saw the zero figure on lenovo bid ask because sales after-hours has been halted. we'll let you know as soon as it is reestablish established. as you can see right now, google is up about $24 after-hours. google is getting a pop on that. lenovo we don't know because after-hours trade something halted. with that we come back to david stockman now. i got to ask what moved the markets this more ever morning moved it to triple digits losses on dow, with emerging markets. what is happening with emerging markets and is that a result of what the fed is doing?

>> crisis of subprime nations has started. david: subprime nations? not subprime housing? >> identical to the subprime housing. david: how so. >> how did that happen? because when the fed slashed interest rates in the early 2000s, it flushed money into risky invests in a stampede for yield, looking for yield and that is exactly what happened after 2009, when the treasury rate was taken down to absurdly low levels, 1.5 at the bottom. it flushed trillions of dollars into the emerging market bond and other kinds of investment. too much money flowed into turkey and india and indonesia and all the rest of them. it caused their exchange rates to be artificially elevated. their interest its to be artificially low. massive construction boom started in these countries. and now, they're running huge current account deficits. they desperately need capital. an capital is now retreating because the cycle of central bank expansion is over.

david: we don't have the same leverages going on from the banks in terms of lending. so we wouldn't necessarily have the same problems we did in 2008. will we if in fact a bubble is about to pop? >> the subprime nations are even more leveraged, even more speculative and even more bubbles. david: since we've done best to get accounts in bank under order to get rid of leverage but aren't we in good shape if they do go down? maybe some of that capital will come here? >> i think we deleverred. we have 58 trillion of debt in this economy, public and private, compared to 52 at the top before the last crisis. households barely reduced their debt less than a trillion. they sill have 13. businesses increased their debt by a lot. the idea that somehow we deleveraged and we're healthier is a wall street myth designed to make you feel comfortable to you go in buy some stocks that are vastly overvalued and keep

the game -- david: our audience was feeling so warm and fuzzy after we had marty feldstein. i think we got your comements. i think they are hope to shoot themselves. i hope not, folks. two very different positions. >> two different views. david: david stockman, thank you very much. liz, over to you. >> david, look at google. it is jumping in the after-hours session on news it is selling motorola mobility, a business it just bought in 2011, to lenovo, the chinese computer and handset company that really come out swinging. stay tuned. we're getting much more on this breaking story in just a moment. [ male announcer ] e new new york is open. open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax freeones all across the state. me here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more businesses...

we're open to it. start a tax-frebusiness at startup-ny.com.

>> i'm dennis kneale with an update on stunning news that lenovo of china, its trading halted in that stock is buying the cell phone business of google. now google's lost $645 million in nine months on motorola. it bought that company in 2012 for $12.5 billion. it appears to be selling most of it to lenovo of china for only $3 billion. google made some money back though on motorola by selling off a piece of it for 2 billion. it has 2.9 billion in cash, et cetera. but this is a big surrender by google. basically saying we're not so good making hand-sets even when we buy a faded brand like motorola to make it come back.

the motorola x and moto g hand-sets are part of that deal. so are 10,000 patents going to lenovo of china. lenovo meanwhile just spent two billion dollars to agree to buy china's low end server business. google on retreat. david: that is change from where they were, right, liz? liz: this is huge, huge change. it is patents. stunning that google would be making that move. what happens to dennis woodside, ceo. david: leno very not trading after hours. google trading up $20 after-hours. liz: stay tuned for fox business with more on this. next welcome back. how is everything?

there's nothing like being your own boss! and my ctomers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new 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. you make a great team. introducing fedex one rate. it's been that way sincthe day you met. but your erectildysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgent. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take alis if you take nitrates for chest pain, as this may causan unsafe dr in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immiate medical hp for an erection lasting more than 4 hours. if you have any sudden decreas or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat,

or difficulty breaing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. cozy or cool? "meow" or "woof"? everything the way you want it ... untiboom, it's bedtime! and your mattress a battleground of thwarted desire. enter the sleep number bed. designed to let couples sleep together in individualized comfort. he's a softy his sleep numberetting is 35. you're the rock, at . and as your needs chge er time you can adjust

your bed to sleep better together. 48-month financing available through february 2 only at your local sleep mber store. find your sleep number setting d know better sleep. melissa: a huge story today and we've got the exclusive. 3-d printing of human tissue the company behind it organ novo, hitting a major milestone way ahead of schedule. it successfully delivered liver tissue. could be out in the market by end of this year. the ceo joins me right now in a fox business exclusive. your stock is up 10%. this is the story everyone is talking about. tell me how it works. >> well, 3-d print something a way to take living cells and use them in bio ink inside after 3-d printer. this is three de, bio printing. we take the cells,