>> i have one that told us not to lose weight, says that we look great. >> is that your mom again, writing in again. >> and we should the cost of freedom business blocks starts now. log on to foxnews.com for the after the show show. bye. captioning by, closed captioning services, inc. >> i new year ringing in concerns over more terror threats in the u.s. and now a debate how to pay for more security at airports to keep americans safe, but what is the debate? lawmakers only spending 8 billion bucks on airlines security and compared to the nearly 3 trillion tab for health care reform, stimulus, and all of those bailouts. proof d.c. has a spending priority out of whack and i'm brenda buttner, this is bulls and bears and tobin smith and gary smith and eric bowling and julia, welcome to everybody. and, eric, can we afford to spend more on airlines security. >> sure, let's spend the things

we shouldn't be spending money on like health care, and a trillion dollars, and $800 billion, in stimulus, or how about some of these pork projects $655,000 for irritable bowel syndrome in cedars sinai hospital. >> hey, hey, hey! >> don't worry, tobin and air marshals and this $200 million to up great janet napolitano's, upgrade to her office and the unspent money on recovery-gov, $537 billion, you know what that gets you, every, single seat on every airline flight in the u.s., in or out for the whole year. >> julia, how do you argue with that. >> you argue saying $10 trillion would not buy you enough security here in the u.s., to have kept a safe -- a person,

from boarding a plane, with an explosive. >> and you can put people up there, beef up the security there, it doesn't matter, you are spending so much money on things that don't matter. >> really. >> here's something that matteres. >> how will we do that? how on earth are you going to put security in every country, where every -- where americans board planes, all over the world? what they need is -- really need, what our agencies need are better abilities to share information, raw information, that they get, and not more of this in the u.s., because, we have got everything we need. >> okay, we have got everything we need, toby, do you agree? >> well, of course we don't, but there are a couple of things that hit me and number one, remember the reason why we don't have data talking from the fbi to the cia, et cetera, et cetera is all of their systems don't work together. i mean, we have known to there e -- >> they are not supposed to. >> they should and we can make it happen and that is a $15

billion number and why not take out the pork and eric made a point about pork and we went through the numbers again and there is $240 billion, spent on pork projects, if we didn't include those we could have the safest airlines and all we have to do is go to israel because they have the model, and we" start it tomorrow. >> we don't need another penny spent on airline security, julia. >> i'm saying taking money we are spending to do things that are important to our priorities. >> such as what, health care reform. >> airline security -- health care reform, and there are a lot of spending priorities, none of these -- >> irritable bowel syndrome? >> irritable bowel syndrome is pretty bad if you have it! but, more importantly, even what you talked about, $50 billion, to get the information agencies to share? that is not how they work. you know, some of these are guided by the constitution, and some aren't but what they

function as is very separate. each one is separate and they make their own policies. so you will have to get them all, to do this, which is -- >> you better tell that to the president, he promised he was going to have all of the agencies talking to themselves with the snap of his finger. >> and you know what, gary has a serious case of bowel syndrome right now. listening to all of this. >> i will not go down that path, but, to julia's point, it is -- there's a few problems here. one, is obviously a question of money, misspent. i mean, to eric and toby, they point out good examples and we are spending $78 billion a year alone on the department of education. we haven't seen any measurable education increases in public schools in about 35 years and 20 billion on farm subsidies and forget about that. it is a question of focus and toby talked about israel and if we wanted to solve the airline terrorism thing, we could. and israel, every, single

passenger that is going to get on board is interviewed and we couldn't do that here? no, because our priorities are to be the nanny state instead of what the priorities of the government should be, of fixing the infrastructure, and defending our freedoms. and that is what it should be, should not be health care, should not be all of these hand-holding kind of things and instead, our priorities and money, which follows, are misdirected. >> pat, do you agree? >> well, i think there are two things going on here. one, there is no question we could be spending money more intelligently on millimeter wave radar and better information-sharing. it is clear there were missteps that caused the incident to happen. but, to some of gary's points we need to realize, no amount of money is going to get us 100% secure and we live in an open and free society. and, there are certain, you know, costs to living in open and free societies and some of those are that incidents like these will happen, because we don't want -- i don't think it is -- as a society we'd accept

the level of what they have in israel and would americans be comfortable, every single person getting on every flight being interviewed? >> wait, wait. they should be. >> trade towers -- >> we should be comfortable with that. it is a lot safer. >> and maybe the and is not to have every single -- >> what you are saying is you are willing to trade... i mean, look at the -- as a country we give up, we have a lot of personal freedoms and fewer closed circuit tvs than in great britain and more press freedom and if we want the greater security, possibly a laudable goal, we have to recognize that we need to give something up to get it. >> absolutely. no question. i agree with you 100% and giving up, a feel more comfortable getting on a plane especially when a guy goes from seat 19 and is in the bathroom i don't think the plane will blow up in 10 minutes. >> and toby takes a plane practically every day and would you be willing to wait in line longer. >> again, israel is this

example. they have -- go through and have a system where they clear people, have all the track records, background, and those people get through in three seconds and the people who have -- present a variety of risk factors are more detained and guess what. i want that all day long. we get intelligently manage the process and can intelligently take the lessons from israel and other countries but what we can't do is, you know, pretend we'll continue to borrow money and spend it on things that in no way are relative to the security. >> and $8 billion a year for airline security. that is chump change, gary b.? >> no, no, absolutely. brenda. it gets priorities and there are proven technologies out there, whether humans interviewing or whether full homebuilder body scanners that we know would reduce the incidence of terrorism. all of the stuff like health care, it is all, throw the money at it and hope it sticks.

instead that shouldn't be our priorities and there is no track record of any of that working for crying out loud and at least spend it where we know it will be effective. >> last word, julia. >> now you're talking about all the money and throwing it at something else. >> we're not throwing it. we know it will be effective here. >> and i think it would be a little more targeted. >> we have to go on this one. the new year is only a couple days old and all ready we have a bailout outrage. guess how much it is costing taxpayers, so far to save folks from foreclosure? 50 grand, 250, 500,000? not even close.

welcome home, man. >> from america's news headquarters, i'm gregg jarrett, we're getting new information now about the attempted bombing of northwest flight on christmas day. a customs official reversing his story, now, saying a second passenger from that flight was detained. a man with -- handcuffed and searched after a police dog reacted to his baggage and he was released, officials originally denied the incident. despite repeated accounts by eye witnesses who said they saw a man get questioned and led away in handcuffs and umar farouk abdulmutalleb has been charged with trying to blow up the flight. president obama blaming al qaeda for the botched christmas day attack in his weekly address, he said the nigerian suspect was

equipped, trained and directed by an al-qaeda affiliate in yemen and said the group bombed western hotels and restaurants and embassies including an attack last year that killed an american. bulls and bears, is next. >> 2010 kicking off with another bailout outrage, remember the white house plan to spend $75 billion to keep four million americans in their homes? that works out to under 19,000 per home and well, so far, 27 billion has been spent, to save a mere 31,000 mortgages from foreclosure. total cost to taxpayers, 871,000 per home. would have been cheaper to buy them all a new house, tobin is it proof it is time for washington to butt out? >> you know, i wish this was -- i would hope maybe, you know, cash for clunkers was supposed to be 4500 and was 20,000 per car and the $8,000 tax credit,

and you factored in the homes that would be bought anyway it turned out to be 60,000 and this is the worst, though, because there was an alternative to this, to having private market answer and no, no, no, we ride to the rescue, hi-ho, silver and we'll save you guys and winds up 5 to 10 times more than the private market and when will they learn? >> you know, julia, the administration admitted that there were problems with this whole program. >> well, they've admitted there were problems and we have to remember that the government gave money to the subsidiaries, all of the banks, subsidiaries of the largest banks in the country, and were happy to receive the money, but we also have learned that they have been dragging their feet on getting it done, you know, they are really not holding up their end of the bargain to get this work done, that is for the homeowners in the biggest problems, they need to work harder to hold up their end of the deal.

>> and maybe the government shouldn't be in the business after all, gary b.? >> exactly. look, i'm not going to -- per julia's point will not defend giving the money to the banks but it points out the bigger issue. the government shouldn't in any of this and shouldn't be in the bailout industry, it certainly shouldn't be in the housing industry, and look at the history of the government getting involved in the housing industry and it is a complete failure or at best a mismanagement of money and why did we get into the subprime cries because we pushed fannie mae and freddie mac to get into the subprime loan area at monstrously low rates and of course the housing market exploded. and here we are again, 870,000 and i'm shocked the american public is not up in arms and they should be after the segment. >> i'd like a house, $870,000, eric! >> you know why it isn't work -- >> you live in jersey! >> nothing wrong with jersey, tobin, here's the problem and what it is.

they'll pay the mortgage mitigator, the mortgage servicer a thousand dollars and give them a thousand dollars every year for three years and they make a lot more money charging late fees and legal fees and throwing everything into the mortgage and certainly, they'll lose a lot of money, a lot of money if they drop the mortgage rate and there is no incentive for the banks to do it. but the point here is, isn't what they are doing or not doing, the point is why did they spend $27 billion so far, where is all the money and there's a lot of fraud and corruption there somewhere. we should find out. >> duh on that one, eric, right? >> and the problem has been, julia, the banks have been demanding certain documents from the homeowners. and, that is in reaction to the whole subprime mess. they want to make sure they are making a good loan. >> well, sure, it is also part of what has been allowing them to drag their feet. and what they are doing is just trying to, you know, obviously, since we have agreed that this

isn't the best deal for the lenders, then they -- agree to take the money in the first place and took the bailout money and this is part would have what they agreed to do and agreed with the obama administration they'd help lenders in these ways and are not holding up their end of the bargain. >> pat... let me get pat in now. pat? do you agree? >> well, in many cases, these foreclosure mitigation things are basically trying to keep someone in a home who shouldn't be in the home to begin with and basically they cannot afford the home or are chasing the real estate bubble and there were people fraud lengthily duped into loans where they shouldn't have gotten them and those people deserve a little bit of our pity. but separating them out from all of the folks who basically couldn't afford the house, and can't afford it today, is virtually impossible. and, frankly, there is no good solution to the mess, and, it is simply wait it out and let the housing market bottom and let the market clear. >> julia. >> we are going to... they

shouldn't have taken the money if they didn't think it was something they could accomplish. >> who, the banks? >> the banks. toeb. >> go ahead. in response. >> i mean, remember, during the financial crisis, the banks got three messages, number one, for most of the banks, we'll force you to take money and secondarily, we want you to shore up your reserves, and, number 3, we want you to make your balance sheets strong and those three things are not in any way, shape or form in relation to foreclosure mitigation and that should have been a completely separate issue and bad bank, good bank and a lot of things we could have done and instead we decided to spend $871,000, for $178,000 home, and that is the insanity of our government. right now. >> okay. all right, thanks, guys. and special thanks to julia, happy new year to you. >> thanks, you, too. >> do you really want to know how good these guys are at picking stocks and making you money? stay tuned. we have got their best and their worst calls of 2009, someone

here making folks a 200% return on their money. you can't miss. pa paefpaef charles needs those contracts tomorrow morning. we should send them overnight with fedex. i already sent them. i didn't use fedex. better cross your fingers. [ man ] oh, yeah, the accident. well, you better knock on wood. remember, we did a green renovation in here, there's no wood. but russ bought a rabbit's foot. 's a bear claw. you could throw salt over your shoulder. actually, that's a salt substitute. but you should find dan -- i think he's a leprechaun. what is it about me that says leprechaun? can someone tell me please, someone? you should have used fedex. [ male announcer ] we understand. you need reliable overnight shipping. fedex.

>> the beganing -- gang in this hot seat and their profits and the good, band ugly and a$$$$

>> the most fair and balanced way to make money on tv, our best and worst calls of 2009 and how you can profit from them, now the scoreboard, best calls first, and we'll kick things off, king at number 4, in july, you said robotics surgery is the future and nothing robotic about intuitive surgical, up 95%, since then and do you still like

it? >> it is getting a little bit pricey but it is a wonderful, wonderful business, hang on for the next several years. >> nice pick, number 3:eric you recommended viewers log onto the google of china, back in february and boy, were you right. baidu rocketing 177%. can the search engine find more profits. >> i will tell you take your money and take the money off the table, i'm nervous about when the stimulus and all the other things, going through the economy, hit the economy, in 2010, it is a winner, take it and run. >> nice call and number 2, toby, back in april, you said michelle obama's j. crew attire would dress up the stocking green, and look now up 197%, more room to grow? >> in terms of fully -- eric's camp, i'm fully valued and would sell into the new year, and take the money and we have a bunch of great things to put the money back into. >> and now, the number one call, 2009, gary b., talk about march

madness, you told viewers, cbs will rebound, 100% by 2010 and you were wrong. it rebounded 209%! will it keep scoring? >> first time ever had the top pick! >> ten years, gary! >> i love cbs and took the media -- one of my favorite shows. >> hold on to it. >> you bet. >> we do the bad and the good here on bulls and bears, and saving the worst for last and the best of the worst, or something like that, gary b., you are up first here, in september you said the dow stalls at 10k and it hit 10,000 and kept on going and dxd, off 15%, buying it or time to sell. >> i certainly would get rid of it. there lights of momentum in the market and people are waiting to get on board and i wouldn't bet against the market now. >> onto number 3. and eric, back to the march lows, you said bet against financials, a sure etf, and skf,

and it came up short, down 74%. >> this is a bad one and i apologize nor anyone that bought, and, the market took off to the up side and that was bad for the stock and also, these in verse etfs, people moved money out of them in droves, get out of that and don't try and stay out of them. >> you have to watch those carefully, day by day and number 2, tobin, one of the best and one of the worst and you said the market rally would be a memory, and, to buy tza and tumbled 80%, any chance it will come back soon? >> no, i mean, this was a trade and i certainly apologize if anybody bought it longer than a few weeks and i say, log onto my twitter well, talk about these all the time and if you are ever going to do these three-timers, you talk about weeks, not months. >> and now for the worst call in '09, pat? it is you. good news is, some parts of the real estate market rebounded, bad news is you bet against it

and srs, falling 89% since picking it in february. what happened? >> refinanced at low rates and a great lesson, in verse etfs, are playing with fire and i don't know what i was thinking trying to play one. >> thanks for being honest. all of you! >> you were making money the first 30 days. >> thanks, thanks for taking the heat, guys. you don't get that on fox and time to look forward now and put down those new year's noise makers and pick up your 2010 money makers. the name, ready to double, before the ball drops again. when you feel good, people ask, what's your secret?" no secret i take care of myself, and i eat yoplus. it has the great taste of yoplait, plus antioxidants, plus fiber and probiotics, plus calcium and vitamin d. this new yoplus gives me pro+active nutrition. when you've got yoplus, you don't need secrets. try new yoplus for free at yoplus.com...

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>> a very special 2010 stock prediction. gary b. is up first. what is the stock to own. >> i will steal one from pat's camp, mastercard, ma, had a great year when people were not spending and spending picks up a little they have a fantastic 2010 and look for a 50% gain. >> pat do you like that? >> well, i did like it at 50. a few years ago. and 230, less excited. >> okay, and tobin, your prediction, please, best stock next year. >> well, yeah, auto like the arms dealer to the cell phone, the smartphone revolution, the year 2010 of the mobile internet and syna, these guys sell chips and touch stuff to all of these guys including the tablet from

apple, an arms dealer type. >> and gary b., like it. >> it is a stretch and needs to make and all-time high and i don't see 75%, next year. >> pat, your prediction? >> apollo, a great pick a couple of years ago and a for profit education company, university of phoenix and high unemployment and lots of people are going back to school and stock battered downed by short sellers and 11% free cash flow yield and worth 9500 -- >> you predicted this in '07, and it was the best stock of all the bulls and bears, and so you got it again and eric, do you like it. >> no, i'm not a big fan of the on-line degrees, i think the university of phoenix is tobin's alma mater, if i'm not mistaken. >> and didn't graduate. >> and brian's bar is his alma mater. your prediction. >> citigroup, $3.31, finished and we learned things too big to fail are too big to fail, an easy double if the economy turns around on the mortgage