shocking prediction for the dow on "cashin' in," eye popping, 11:30 a.m., eastern and first, here's dave asman with forbes on fox. fox. take it away, dave. captioning by, closed captioning services, inc. >> ouch! well, it is 2010. and the year, ticking tax time >> we are back with the red-hot bomb explodes, completely stocks for the new year set to destroying the job market. make you lots of green, someone here is warning that is victoria, let's start with you what is about to happen. and by the way, a year ago you hi, everybody, happy new year, picked sales force.com, up 136%, i'm david asman, welcome to forks on fox and in focus to congratulations and listen up find out what it is about, here, when she picks one. >> not bad, right and this year steve forbes! victoria barrett, quentin hardy i like success factor and they are similar to sales force and and mike miello, a small tight sell web software, and is around a-team and what about the hiring and helps companies make ticking tax bomb. >> the tax cuts of 2003 expire hiring a smarter process and this year, which means that the they are still small and you can get in early and do well. taxes on capital gains, dividend

>> and quentin, success factors. and personal income will go up. >> a great company, probably has tax are a price and a burden and a lot of trend, and glitz bought if you raise the price on productivity, success, into it and still have to earn risk-taking, you'll get less of to justify the price they've those good things and the already made over the year. economy which will not be good this year will get hit hard in using it can go higher and that is amazing growth. 2011, if these things are allowed to expire. >> you picked google last year, >> could the tax bomb destroy a up 47%, congratulations on that, and you are for cisco this year. recovery, quentin? why. >> well, cisco will benefit from >> the tax cuts of '03 were this, i hate to say it god, look passed to expire it is a cord at me, benefit from this trend against business travel, that cowardly and bad pog and were that he current terror instant set when we had surpluses and only supports, i'm sorry to say. now we have a monster deficit they do a lot of tele -- and without the tax cuts you'll have $2 trillion more in >> we have to move on. deficits and so people will be >> i like cisco but it is too in far worse shape. we just have to get real about expensive. >> an old stay. >> ibm, 11 times earnings, this. look, supply-side didn't work and we have monster deficits and cheaper and a play on the global technology buildout, can sell monster unemployment, and adding extra tax burdens in this case, globally. >> and vickie, last year you amounts to tax levels of the reen clinton era, on people making over $250,000.

>> talk about ticking time bombs, you should have seen steve forbes exploding when quentin said supply-side didn't work. victoria, what about the ticking tax bomb. >> the way this think about this is, money that is within the private sector and now will go to the government setting tor and "the new york times" has estimated that it is about 2.3 trillion dollars that has been in the private sector. going towards investments, which in my mind equals job creation. and instead will be lining uncle sam's pockets and we know uncle sam likes to spend. and you might say they'll reduce this deficit but the administration will not reduce the deficit. we're seeing increased taxes and increased spending. >> and the more cash that politicians have the more they spend, and never pay off debt with it. >> clinton did, though. it is 2010 and i want to party like it is 1999 and those were good times. >> and clinton had a republican congress to help him along in that regard.

>> and obama keeps going along this way, he might have one, too! >> true. true. but the problem with our borrowing is that this government competes with the private sector for credit. and drives credit costs up. if we go back to the tax rates that reduce our deficits we have a government, 800 pound gorilla out of the credit markets and entrepreneurs, steve likes to champion will get credit at guy prices and create jobs. >> why did you supply when quentin said supply side didn't work. >> manifestly it does work, when the tax cuts were enacted in '03 the economy came back and 1980s and the john kennedy tax cuts and what quentin has to learn to do is not confuse fiscal and monetary policy, the federal reserve printed too much money in 2003 and '04, '05 '06 and got a disaster for it and if we had stable money -- >> don't blame the tax rate cuts, blame the fed.

>> david i'm in the reality based community and i don't base on ideology, i base on experience, debt as a percentage of gdp fell from truman through jimmy carter and rose under ronald reagan and the first george bush and the second george bush it kroez agarose ag government -- >> you got it, he grew government, hold on, hold on -- >> it different pay -- >> increased when tax rates were cut under reagan and revenues, amount of money that came in, increased -- >> but david. >> hold on, victoria. go ahead, vickie. >> go ahead, vickie. >> increases in capital gains tax typically lead to lower revenues of capital gains. so you don't see the increase that you want because that -- those investment dollars go elsewhere. so these tax hikes -- >> but vick it increases at the

level george bush was okay with, in 2001. >> quentin you complain about other people overtalk and you do it all the time. >> there we go, quiet. go ahead. >> and we take -- back to the '90s level and that was the decade of capital gains and the decade we had, nothing and capital gains and your s&p 500 index, nothing. so the '90s was higher capital gains, taxes had higher capital gains. >> goodness, we writing of history, soviet style and under clinton, thanks to a republican congress we cut the capital gains levy from 28 to 20% and boomed the market and clinton said sensible things like welfare reform and signed that into law and no taxes on the internet and put that into law and reduced the capital gains levy on housing, a good, solid thing so those things work and raise taxes on capital you get less of it and less risk taking and lesser, long term growth and whether kennedy reducing tax rate, reagan, whenever it has been done it works.

>> quentin we do desperately need more risk taking and banks to lend out more money and risk taking nationwide, don't we? we need honesty, and risk taking. these tax cuts were passed, set to expire. why was that? so it wouldn't show up is a long term cost and that was folly and we know that was folly. and i think you are under estimating the actual risk capability of the weather. this is night tax on people making $250,000. it's a tax at clinton era levels on income added to $250,000. i think most people making that amount of money will go out and try and earn more even if it is being taxed at a clinton era level. >> and you make the same point, we did well during the clinton era, when tax were higher and going township there. but there are many other tax that will be instituted. we have the new excise tax come into play, lord knows what tax we'll have when cap-and-trade

and health care get passed. in addition, to all the other stuff worries me, a pile on. >> a pile on with obama's new agenda and i can see the argument. go back to '03 for a second and reimagine the decade and the -- let's say the bush tax cuts never happened -- >> what do you think would have happened. >> we would not be prostrate in front of our lender china. i think we'd be in a stronger place in the world. and we have to fix that, unless you -- >> vickie. go ahead. >> well, mike you just dodged the question. this is for investors, this is death by a thousand tax hikes and they are little tax hikes here and there and they'll make you take your capital elsewhere and you will not invest in new businesses in the u.s. leading to lower job creation over time and is subtle but it happens. >> and by the way, one reason why the 1990s worked was president clinton unlike presidents bush and obama had a strong and stable dollar. you don't have a strong dollar, you have a weak recovery.

jimmy carter made the mistake and these two presidents made the mistake, the biggest thing -- >> talking about mistakes, quentin says the republicans were the ones who put the sunset provision into the tax rate cuts, why did they do that? did they learn the lesson that that is a terrible idea. >> because of the crazy senate rules when the democrats took over the senate put in, you had to have the ten yee provision and that is why the -- year provisions and the death tax expires this year and comes back in 2011. >> if you want to die this is the year to die. there is no death tax this year and goes up again 50% in 2011. right? max. >> ay yai yai. your congress at work, folks, when we come back congress is getting ready to ring in the new year with a very ebbs expensive jobs bill and we found out something from our nation's job creators, proving that we don't need it. plus, unionizing the gatekeepers who play a critical role preventing terror attacks in the skies and could the unionization happen soon and will it put the

safety of you and your family at greater risk?

>> from america's news headquarter, hello, i'm gregg jarrett, we're getting reports that yemen now deployed several hundred more troops, to two mountainous provinces that are al qaeda strongholds in the country. the military reinforcements coming as the president says al

qaeda's branch in yemen was behind the failed christmas day attack. on the u.s. airliner. and we're also learning new information about the attempted attack, a customs official reversing his story, now saying a second passenger from the flight was indeed detained, he was handcuffed and searched and later released. after a police dog reacted to his luggage, officials originally denied the incident, ever happened and notwithstanding repeated eye witnesses. umar farouk abdulmutalleb has been charged with trying to blow up the flight. i'm gregg jarrett, join me at 4:00 eastern time, on america's news headquarters. >> it has been more than a week after a very frightening close call in the air, and the tsa, still doesn't have a new chief. republican senator jim demint is holding up the approval process for air roll suters and -- eroll

southers, the senator has reason to be concerned about the approval process. >> it will be focused on job security and things like that, benefits instead of improving procedures and is a political thing, more dues and contribution for the democrats and we have seen what unionization has done to the teaching in america's schools. and saw what had been the private sector, auto industry and steel industry and on things other than the main job at hand and will be blocking ten knowledge that can improve procedures in the future. >> and that is exactly why congress took it out of the provision when they started the tsa to begin with, unionization. >> they took it out because there was a knee-jerk reaction against unions of any kind from a certain part of the government. but i think what steve is talking about is important here, we are not getting exactly the best and brightest who want careers in the tsa at this point and i'm risking my own flying convenience but...

>> you'll be stopped at every airport. >> a little more job security and better benefits and wages, the kinds of things unions provide would make better candidates want those jobs. and that would be good for all of us. >> victoria it's true you do not necessarily see the best and brightest in the tsa now. and he says if you unionize you might see a better group of folks there? >> no, i don't think it is about benefits. mike you and i started at forbes, another decade and as fact checkers and it's a similar job to security at an airport where there is really only downside. if you do your job, really, really well, no one notices. if you mess up the consequences are dire and airport softer more dire than a magazine but, nonetheless it's a tough job and no one wants it and you want to get out the job the second you start and i don't think benefits are the answer here. this is a situation where technology is this answer. technology can replace the human

failure rate, the fact humans make mistakes and miss things and if you get unions in there, technology will be delayed. it won't get in, instead unions will argue people need to stay in these jobs. unions are not the answer. >> quentin, i wonder whether machines they're answer. americans have this weakness of thinking the machine will be the magic bullet and solve the problems. >> the weakness in a lot of this is somebody pulls something and we take steps against that. we're not particularly forward looking and always fighting the last war where security is concerned. now diment's argument is if people are unionized, they will not respond to the emergency and this is an utter insult to the police and fire who gave everything and more on 9/11, unionized or not people will react well in emergencies. that is an insult. his next argument is, well, the tsa workers are like the cia and fbi and not unionized and they

are making ten bucks an hour and are like the border agents who do have corrective bargaining and it is a strategy diment has had for the past year, obama wanted to pass health care and he said let it be his waterloo and we'll stop it. now, gahere he wants to obstruc again and i wish they were a party of ideas and not obstruction. >> without focusing on one person or senator the fact is it is the flexibility of workforce that concerns people and if you are in the job and unionized you will tend to be more stuck in a particular position outside of which you may not be able to keep medium power secure. >> well, and you don't have the flexibility. even in the private sector, look at an auto plant with gm and chrysler, even ford compared to the ones without unions, they have less productivity because everything has to go by the rule book and change a light bulb, you can't change it and you have to call in somebody and it becomes more rule based, and

procedure based instead of mission based. >> and i talked a couple days ago to the former chief of security for el al, the el al airlines have a terrific record dealing with terrorists and he said if you unionize the workforce in america you will deal a death blow to security in the united states. should we listen to folks like him. >> i'm very, very wary of applying lessons from israel to the u.s., because that is a country that is at perpetual war. >> you don't think we're at war now. >> we have a security issue. and we have... >> you wouldn't call it a war. >> i would not call it a war and i don't want to live in a country that will be at war four, five decades and -- >> i don't, either but we might have to face reality that that is where we are, victoria? >> yeah, you have people trying to blow up planes, mike. i mean, you have to look at what worked elsewhere and what we haven't mentioned in-depth here is if you get unions in it will be hard to fire people and you need to be able to fire people

in this situation, and need to be able to say you missed that guy and didn't check his i.d. and you wouldn't be able to do that if unions were involved and that is a huge security risk. >> look at how hard it is to fire a teacher in schools manifestly failing in our big cities. >> quentin doesn't that concern you? >> i don't see a problem with the policemen nationwide or the firemen nationwide. i think they do a great job, and they are unionized. and in this case it is happening in the context of the bombing attempt over detroit. that had nothing do with the tsa. the weakness is in our intelligence system. the president was right. we had a break down of communication and cooperation. probably with the cia and this national intelligence service. it has nothing do with the tsa. >> quickly a great point. it happened outside of the country. steve. >> sure we're not talking about the breakdown in detroit. we're talking about future unionization and what it will do to the flexibility and

technology needed to keep or airports safe. we need an overhaul on policy. focused on what gets on a plane instead of the -- keeping bad people off of planes, bad things planes and treat passengers the same. >> we want the lapses that -- don't want the lapses in amsterdam to happen in the states, thank you very much. the stock market giving eye popping returns in 2009 and someone here says it's time to thank president obama for all the green arrows, a flip side you will not forget on the other side of a break. ooo

my joints ache so bad, i wake up in pain every day. i want to know why. i want to know why my hair is falling out. how did this happen? how did this happen? a little pain in my knee. that's how it started. that's how it started, this rash on my face. now it's like my body is attacking me. i want answers. announcer: when you don't have the right answers, it may be time to ask your doctor the right question. could i have lupus? >> 60 seconds, one person someone at forbes says we need to thank for the huge stock run-up, will get you by surprise and the stocks you need to own in 2010, for

>> the dow up 60% since hitting a low 9 months ago and quentin says the president deserves the credit for padding your wallet. "hail to the chief," right? well, let's face facts, guys. if the market was further down, you would certainly be blaming obama. so, it is up, let's give him credit. and let's talk a little bit about the recovery. it is entirely based on the financial sector, the banks were teetering on the edge of the financial system and let's say it did collapse and we brought it back really well and that had a lot to do with policies the president did, further out, do we go up from here? that is very much up to him as well. >> victoria, the president deserves the credit? >> well, he does deserve credit for maintaining previous policy in the case of the banks. where he doesn't deserve credit is for these gimmicky stimulus plans that haven't moved the needle and he deserves credit for letting ben bernanke do this is thing and we can argue whether long term it has been a

positive later. but for the short-term, ben bernanke injeshticted lots of f into the economy and propped up the financial sector and the housing market an props things up generally over the course of 2009. >> all right. you should have seen steve's fingernails dig into this plexiglass desk we have here. steve, go ahead. >> in terms of the president taking credit what turned the market around was, i hate to say it, was congress, not the white house or the fed or treasury, anyone else in march when they changed a regulatory rule, forced regulators to change mark to market. >> this is steve forbes giving credit to a democratic congress! stop the presses. >> sometimes it happens? nancy says you're welcome, steve. >> the fact of the matter is they held hearings and forced the change and the stock market turned to stop the bleeding at the banks more than anything the white house did and congress -- >> and who do you give credit. >> he's giving credit to

congress, for am the using his idea, he was with the idea on mark 0 market and jamie dimon should put a statue of obama next to the bulls on wall street and should say thank you, he saved the banks and the financial system, and by doing it saved the economy. >> i have one nobody is talking about, the american people. steve, don't they deserve the credit? free market in our system is so powerful it is like a tsunami and sometimes it can wash over all of the barriers that politician put in its way. >> but they can only do so much when you start to believe the banking stipulate and in the 1970s the fed kept printing money and it undermined the economy and reagan restrictionsed what the administration has not and when you stop taxing and regulating the american people golly they come to the fore, but we haven't done that yet. >> steve forbes, thank you very much and do you think 2009 was a rebound year for stocks? you ain't seen nothing folks,

stocks set to fly higher in 2010, we have the names, coming up.