mark zandy and christine romans.congress does not trip us up, we're on the way to an economic renaissance in our country. >>> we are on the road to an economic renaissance. i want to you think about the united states economy like a runner along this road. full economic recovery and prosperity is the destination, the economy right now, that's warming up with a nice jog, getting ready to break into a full sprint. gross domestic product, the broadest measure for the economy grew by an annual rate of 3.1 over the summer, more than double the rate of the previous quarter. spending by americans was the single biggest factor in that growth and more americans are spending their money to buy a home, pushing prices upward across the country. the median price of an existing home shot up 10.1% in november year-over-year. we've seen home values rise six months in a row as more americans get back to work and take advantage of those low mortgage rates. bottom line here -- our runner, the u.s. economy, is just starting to break a sw

christine romans, tells us what we can expect.the cars do the work. >> work on the blackberry. five years or less, that's the timeline for google for its drivele driverless cars. test cars wracked up thousands of computer driven miles. and we also have a road train concept. a chain of self-driving cars controlled by a lead vehicle it could help combat congestion. the american society of civil jeers say it costs up to $700 per year in extra time and fuel per driver. 75% of cars on the road will be driving themselves by 2040. drivers must be ready behind the wheel just in case. tests beginning in the uk for the first unmanned airplane flights. called jet stream. won't be carrying any passengers for now. >> i would say that's a good idea. >> think about it driverless cars. if you can have the car talk to the computer and the gps, satellite and program the coordinates and all pretty standard and clear, you can control congestion and the like. a lot of companies, including the agriculture companies, working on tractors and such have we

christine romans is going to love this.ientists and technology experts are in demand, students with those majors would pay less than students majoring in disciplines like history, philosophy, or even english. i don't know how i feel about that. the idea is to steer kids towards fields where there is the most need. they'll take up the idea during the next legislation. >> it's innovative, but for humanities majors like me, is it fair to pay more to study that stuff? but, you know, you have to -- >> i'm sure they'll debate this. >>> head to our blog, c cnn.com/earlystart. >> so if the faa's ban on smart phones in the air have you frustrated, you have an ally in washington. surprising frank comments from the head of the fcc just back from vacation, comments from the fcc coming up. >> and you can't go back. there's big news. presenting androgel 1.62%. both are used to treat men with low testosterone. androgel 1.62% is from the makers of the number one prescribed testosterone replacement therapy. it raises your testosterone level

i'm christine romans in for john berman. >> i'm zoraida sambolin.th soledad o'brien starts right now. >>> good morning. welcome. our "starting point" this morning no plan in sight. republicans lashing out at speaker boehner over his deficit reduction plan. are lawmakers really going to let us go over the cliff? and a gruesome photo sparking outrage. should "the new york post" have put up this picture of a man moments before he was crushed to death by a subway train. it with you on the cover. we're hearing from t

i'm christine romans.olin. 30 minutes past the hour here. >>> tension amid deadly violence in egypt. tanks and armored personnel carriers are guarding the presidential palace. at least five people were killed, hundreds injured. many egyptians are angry at what they believe is morsi's grab for power. some are outright calling him a dictator. ian lee jones us by phone from cairo. ian, what's the latest there? >> reporter: right now we're still seeing the army trying to keep the two groups separated now. the republican guard which is the elite unit that protects the president said that they're here to make sure no more violence happens around the presidential palace, that they're going to keep the two sides separated. so that there isn't a repeat of what we saw last night. we're already starting to see anti-morsi protesters descend on the presidential palace, taunting the brotherhood members on the other side. it's going to be a task for the republican guard to keep the two sides separated, because it is very

i'm zoraida sambolin. >> i'm christine romans.inutes past the hour. >>> updating you on breaking news, a massive earthquake rocking japan, it hit off the coast about 300 miles northeast of tokyo. rattling buidlin rattling buildings and raising the risk of a tsunami. there is no -- there is no widespread threat of a tsunami in the pacific. >>> it is 31 minutes past the hour. we are anticipating a new swell of rage after friday pairs in egypt. opponents of president mohammed morsi are expected back on the streets. last night in cairo they called on morsi to resign saying his government lost legitimacy. opponents are angry at his degree two weeks ago where he granted himself sweeping new powers, and they don't trust a new draft constitution backed by him. in a televised speech last night, morsi defended his actions. ian lee is live in cairo this morning. what is happening now? >> right now we're watching protesters slowly filing in to tahrir square. we expect massive demonstration today as all political forces that are opposing presi

christine romans has details on that. >> good morning. we're talking about the company that owns bushmaster. bushmaster firearms is the company that made the 223 caliber assault weapon that was used in the shooting. here is how the money goes. cerberus, a big private equity company. big investors. it actually put together a group of these firearms companies into something called freedom group, and one of the investors into this is the california state teachers retirement system. have you technically as indirect investors, california teachers who own about 6% of bushmaster, the company that made that firearm. today, cerberus, the private equity firm, says it's looking to sell freedom group and the maker of bush master and get out of that business. in terms of private equity, that is an unusual turn of events, a company wanting to get out of business. cerberus says it's apparent that the sandy hook tragedy is a watershed event that has raised the national debate on gun control to an unprecedented level. it is not our role to take positionso

i'm christine romans. >> i'm john berman. it is 5:00 a.m. in the east. >> we have breaking news this morning. it's a big development in the fight against syria and a new level of u.s. involvement. we just learned within the past few hours the defense secretary leon panetta signed an order sending two patriot missile batteries to turkey. that's to assist that nation in defending against any pollible military action by syria. this move was expected as the civil war in syria destabilizes the assad regime with each passing day. in addition to this, 400 u.s. troops are going to turkey. they will be deployed to operate the missile batteries. cnn's nick payton walsh has the development. >> reporter: good morning. 400 personnel will be accompanying the batteries. let me give you history. over the past two months, we saw sporadic exchanges of fire across the border. syrian military firing into turkey causing often destruction and death. turkey often responding. that brought about this request to nato for patriot missile batteries. they're supposed to

it was a wonderful feeling to know that we had accomplished that. >> christine romans, cnn, new york.re always ready to work hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future. ♪ together for your future. why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally. if we want to improve our schools... ... what should we invest in?

christine romans with more. >> merry fiscal cliff-mas.unching this story for so long. when i don't have to say fiscal cliff one day it will be like christmas all over again. stocks, triple digit decline for the dow jones industrial average. a major sell-off in part, because world markets saying they are very concerned about what happens with the fiscal cliff. the fallout felt in the economy. tax refunds could be delayed. a lot of people could pay higher taxes if there is not an amt patch. that's bad. payroll processors are furious and scrambling to figure out what to do. gift giving has soared among people trying to get out of higher taxes next year, and early stock dividends payouts. companies are paying early stock dividends because they think investment taxes will go up next year. paying those out early. also watching here the run on gun guns this has against phied. walmart is running out -- i think 1,200 locations they sell tactical rifles like the one used to kill the teachers and students in connecticut, they are running out of them

as christine romans reports, some homeowners could face a big tax bill. >> reporter: one in three homesarter sold short meaning you sell for less than you owe on it. right now you don't owe taxes on the forgiven debt. on the other side of the fiscal cliff you do. the mortgage forgiveness debt relief act gives homeowners a tax break on unpaid mortgage debt. it expires unless congress acts. >> the average amount homeowners are short is $95,000. if the tax break goes away as part of the so-called fiscal cliff they could be taxed on the $95,000 as additional income starting in 2013. >> how much homeowners will owe on that amount depends on the tax bracket they are in. on average it would be $20,000 to $25,000. banks have extra incentive to sell short and absorb the loss. under the act that went in this year the nation's biggest lenders get a credit on short sales. foreclosures also sell for $30,000 less than homes sold via short sales. expect short sales to jump more as homeowners look to avoid getting hit with taxes and banks look to avoid getting stuck with properties. if we go over the c

i'm christine romans. >> i'm zoraida sambolin. it's 5:00 a.m. in the east. >>> we begin with breaking news. iran claiming it has captured a u.s. drone. this is video from state television in tehran it shows two revolutionary guard commanders examining what appears to be an intact scan eagle drone. we don't know if it's the one they claim they captured. moments ago a u.s. defense official told barbara starr the u.s. navy has fully accounted for all unmanned vehicles operating in the middle east region. we have the latest developments now from cairo. a u.s. source says that if the iranians do have something, it is not an actively operating u.s. navy drone. what would that mean? could this actually be a fake? >> it could be. it's not clear right now, but iranian officials have a different story. we don't know when or how this u.s. drone was allegedly captured, but you can be sure iran is going to count this as a big intelligence victory over the u.s. you can also be sure they'll use this to portray the u.s. as the aggressor in the region. that's wh

for smart is the new rich, i'm christine romans. >>> okay.o we have all heard of helicopter parents. but this next case takes it to the extreme. aubrey ireland is 21 years old, an honor student in college and a successful musical theater star. but now she is caught up in a messy family fight, one that has ended in a court battle. she is accusing her parents of stalking her. a judge agreed and has granted her a restraining order against them. that's -- let's talk law and justice holly hughes is here, a criminal defense attorney. holly, have you ever heard anything like this before, other than maybe a celebrity? >> right. it's very unusual when you don't have a high-profilchild. we see this with mccully cull kin. here's what happens. they have been going to her school, interfering with her classes, telling the dean of students she has mental problems. accusing her of things that have never entered this young woman's mind. they are making her life a living hell. and that's the definition of stalking, don. when you are contacting someone, whether

christine romans introduces us to a serial refinancer in this week's "smart is the new rich." >> reporterme condo, same owner, three different interest rates in just three years. >> november 2009, 5.125%. november 2010, refinanced and it was 4.25%. now 3.6%. >> reporter: real estate agent sean brek brought his condo in 2009. >> it's 650 square feet, 15-foot ceilings. >> reporter: since then he's refinanced stwis, sticking with a 30-year fixed rate mortgage. >> my first refinance my mortgage payment dropped about $350 a month. from there it will drop another possibly $400 a month. >> reporter: sinking mortgage rates save him $750 a month. rates have fallen from almost 4% to around 3.3% this year alone. just a couple years ago 6% was considered super low and once in a lifetime. if you're sitting on a mortgage right now that is 5.25% or 6%, what should you be doing? >> calling a loan officer. you should not be above 4.5% right now. >> reporter: but lenders aren't passing the cheap money around like they were at the peak of the housing bubble. >> who should be refinancing? >> anyone who has e

here's our christine romans. >> this is an incredibly profitable industry. barometer for sales. those background checks have doubled over the past decade. as the economy has stagnated, gun sales have soared. more gun retailers than there are supermarkets and mcdonald's. profits expected to reach nearly $1 billion this year. smith and wesson, brought in $250 million in profit last year. a fast growing part of the country, high capacity magazines for ammunition. gun shops report a surge in gun demand after newtown. why? because, some of it is people looking to protect themselves, but also out of a fear of tighter gun control laws. in particular, gun owners worry about coming restrictions to the ar-style military rifles. gun maker stocks initially fell sharper this week, but investors say the demand for guns in america remains very strong. there are 89 guns in america per 100 residents, the highest in the world. the size and wealth of this industry cannot be overstated. >> christine romans, thank you very much. and christine will have more on the $1 billion bus

christine romans explains. >> reporter: same condo, same owner, three different interest rates in just>> november 2009, 5.125%. knoch 2010, refinanced and it was 4.25%. now it's 3.6%. >> reporter: sinking mortgage rates save him $750 a month. >> come on. >> reporter: rates have fallen from almost 4% to around 3.3% this year alone. just a couple years ago 6% was considered super low and once in a lifetime. >> if you're sitting on a mortgage right now that is 5.25% or 6%, what should you be doing? >> you should be calling your loan officer. >> you should not have a 30-year fixed at 4.5%. >> you shoulnot be above that right now. >> but lenders aren't passing the cheap money around like they were at the peak of the housing bubble. who should be refinancing? >> anyone who has equity in the house, is working, can show a good credit score and has money in the bank. >> if you can save even $100 to $150 a month, it seems worth it. >> reporter: christine romans. >>> that fiscal cliff, it's looming. ali velshi is here next with a special live edition of "your money." e he eel talk to the presiden

and christine romans, host of "your bottom line." gdp, the broadest measure of the economy grew at an annual rate of 3.1% over the summer. we just got those numbers this week. that's more than double the rate of previous quarter. you can see the chart there. it's been choppy but looks like we're going in the right direction. america's economy is gaining pace, doing better than expected. we've been saying that 2013 could be the year of a real economic renaissance in the united states or at least the beginning of one. so talk to me about the consequences to our prosperity if washington doesn't reach a deal. >> the consequences are not good. so what the numbers are telling you is that the private sector is healing. if it were left to its own devices it would heal faster. unfortunately, washington is getting in the way. what we found out this week, ali, is the problem is not just a lack of trust between democrats and republicans, we found out the republicans themselves can't unite, which means that the cooperative solution that you need

let's go to christine romans, tell us about that new jobs report and the opening bell. ristine. >> that's right. investors look like they're happy, at least, that there were no negative surprises in this jobs report. unemployment rate that fell to the lowest since 2008, 7.7%. we're expecting a higher open on stocks. the dow is holding above 13,000. the dow above 13,000, don, when we're worried about the fiscal cliff, worried about europe and worry about the slow healing in the american economy. investors, at least for today, are pleased that this data are showing, continuing to show that the american economy the recovery is moving, is moving ahead. 146,000 jobs created in the month. that was twice what a survey of economists for cnn money had expected. twice what they expected. why the discrepancy? most economists were expecting hurricane sandy to maybe hold back these numbers. and it just didn't. there are also a lot of revisions. you know, one thing that's interesting about this is we still need to see superstorm sandy impact, maybe it will show up next month. who know

other top stories, we'll go to christine romans in new york. >>> killed in the line of duty. car at a grocery store. they died lastnight at topeka hospital. a third officer on the scene not hit. the suspected shooter, 22-year-old david tiscareno on the run, considered armed and extremely dangerous. >>> the state department is expected to get the results of an independent review board investigation on the terror attack at the u.s. consulate in benghazi. hearings and testimony in the house and senate begin on thursday. >>> senator john kerry, expected to be president obama's pick to be the next secretary of state. according to a democratic source, a formal announcement could come next week. his current role as chair of the senate foreign relations committee, kerry has traveled the world to soothe strained relations, including traveling to pakistan after the death of osama bin laden. >>> all eyes on washington to see if lawmakers can strike a deal to avoid tax increases and spending cuts. >>> and in japan, the nikkei is trading higher. despite economic upbeat data on the global

i'm ali velshi. >> i'm christine romans. >> and i'm dr. sanjay gupta. >> good morning.as been admitted to the hospital for a blood clot, it is believed to be related to a concussion she suffered earlier this month. she will be hospitalized for 48 hours for hospitalization. she had just been cleared to return to work. what's going on here? jill daugherty has been following developments for us. live in the washington bureau. we're hearing 48 hours and seem to be saying it's not that serious. what are you hearing from the doctors? >> well, at this point, it's not really that clear. in fact, there was a statement coming out of the state department from phillip ryans, indicating the lack of clarity about this. he said her doctors will continue to assess her condition, including other issues associated with her concussion. they will determine if any further action is required." now, those other issues associated with her concussion, that's not clear, and i think, sanjay, you as a doctor know when they say 48 hours, that, you know, could be 48 hours or more, but they will be w

i'm christine romans. minding your business. three british nationals arrested in connection with the libor rate fixing scandal. libor rate is used to set rates on loans. three arrests out of the uk right now. >>> u.s. stock futures higher. fiscal cliff talks, federal reserve meeting in washington, two drivers for investments over the next couple of days. futures holding in there for now. >>> federal and state authorities have reached a record-setting settlement with british banking giant hsbc. europe's largest lender has agreed to a staggering settlement. this is a big fine. hsbc is accused of helping transfer billions formations like iran doing business with firms linked to terrorism and also enabling mexican drug cartels to move money illegally through u.s. subsidiaries. >> considering that, that sounds low, $2 mibillion for helping mexican drug cartels and terrorists out of iran? >>> and asia asending, the west in decline. 300 years of the west rising is reversing. american intelligence agencies are preparing this report that

good morning, i'm christine romans. it generates billions for our economy. 89 guns per 100 people in this country, according to an annual research by the small arms survey. take a look at that rate compared to the rest of the world. the next highest is yemen at 55 guns per hundred people and switer land at 46 and then all the way down to just one tanzania. no one is close to the u.s. where does the burning desire to own a gun come from? second amendment. let's refresh our memories. a well regulated militia being necessary to the securitiative free state, the right of people to keep and bear arms shall not be infringed. throughout our history, it's been a part of our fabric, the minutemen took up arms to over throw the british rule and earn freedom. now memorialized in statues like this one in massachusetts. the west was one in the 1800s with the help of firearms. in the 20th century it was cops and robbers, mobsteres, bootlegers. all of them were armed. right? the history books will not be glorifying any of this. cities

christine romans, mindsing your business. news. >> the company that makes the military style rifle is a company called freedom group and basically owned by a bunch of investors, cerberus private equity group, and teacher's pension fund money that invests in cerberus, you see a california teachers pension fund giving money to cerberus, creating freedom group, which owns bushmaster, the company that makes the military style rifle used in the killings. today, we're hearing from cerberus, they are going to sell freedom group, which owns bushmaster, cerberus is going to sell it. this is what they say. they say in the statement, it is apparent the sandy hook tragedy is a watershed event that has raised the national debate on gun control to an unprecedented level it is not our role to take positions to attempt to shape or influence the gun control policy debate, however, there are actions that we as a firm can take. the california teachers pension fund are investors in cerberus and that optic, that chain from teachers here to a prod

. >> and christine romans is here talking about that and also the gun maker companies down sharply. > time. let me talk first about the overall market because it was a good day for your investments yesterday as long as you weren't invested in gun companies. naz tasdaq up 44. dow on track for one of the best years ever despite climbing a wall of worry about the fiscal cliff. so the feeling is they'll get that resolved. let me talk about the gun makers, though. let me show you a couple that are publicly traded companies hammered for three days in a row now. take a look, you've got smith & wesson shares down 19%, rugee do you know 15%. they have been up sharply over the past year. the fastest growing part of the gun market is high capacitythey the past year. the fastest growing part of the gun market is high capacityyou . they have been up sharply over the past year. the fastest growing part of the gun market is high capacity magazines and the military style rifles like the one used in the attack there in connecticut. that's a good part of their business. you look at the profit margins,

i'm christine romans following fiscal cliff all day and night. ashleigh banfield returning tomorrow. "newsroom with suzanne malveaux" starts right now. >>> welcome back to "cnn newsroom." here's what's going on right now. ♪ >>> 2013 hitting right now in bangkok, thailand. we're looking at live pictures there as the celebrations and the fireworks exploding there. lots of picture-taking and a lot of excitement there. right now pope benedict holding a new year's eve mass at st. peter's basilica. they will celebrate the new year in six hours. a couple of hours ago folks toasted 2013 in new zealand. check it out. >> pretty cool. party started with fireworks with the auckland sky it tower. organizers were worried bad weather would be a problem, but everything turned out just fine. congratulations. the second major city to ring in the new year, sydney, australia. check it out. wow, that is over city harbor bridge. the show is huge. we are talking about seven tons of fireworks. happy new year's all around. >>> of course, we are waiting as well when the c

here's christine romans. >>> let's start in oregon. about 22-year-old jacob roberts, the sandwich shop clerk who killed two people and wounded a teenager. an ex-girlfriend said roberts quit his job last week, said he was moving to hawaii. it's not clear why he decided instead to go on a shooting rampage before committing suicide. on his facebook page, roberts stamped the word "cancelled" over the slogan "follow your dreams." >>> two men have been arrested for allegedly beating a mentally challenged homeless man on camera and then posting it on facebook. you may find this video hard to watch. this happened in florida. investigators say they agreed to pay the man $20 if he agreed to get slapped. he was punched and knocked out cold. this incident happened back in september. a concerned facebook user alerted authorities once it was posted. >>> haunld aiz recalling more than 800,000 minivans and suvs. the recall affects 318,000 odyssey minivans, 259,000 pilot suv a, 230,000 acura mdx suv's made from 2003 to 2006. it lets owners remove keys

i'm christine romans. minding your business, u.s. oil production reaching its highest level in nearly 15 years. this is according to a new report from the energy information administration. daily production, daily output, averaged almost 6.5 million barrels per day in september, the highest level of oil output in the u.s. since 1998. eia says the increase is mostly due to the extraction process known as fracking, new technology to get oil in every nook and cranny. some coined a phrase saudi america for america's projected energy boom over the next decade. a report from last month from the international energy watchdog says the u.s. could unseat saudi arabia as the world's top oil producer by the year 2020. >>> quick market check this morning, u.s. stock futures are up, fiscal cliff uncertainty could continue to weigh on stocks until it's resolved. we're getting a lot of economic news this week with the jobs report on friday. so i expect to see hurricane sandy was at play in there. >> figuring into that report. looking forward to that

i'm christine romans. for four years the gop blasted the obama economy. he made it worse, they said. his policies were ruinous. the recovery wasn't too slow because of the severity of the financial crisis, no, it was because of the man at the top. three reasons now why every day that argument by the gop is harder to make. first, the economy is picking up speed. gross domestic product, the broadest measure of the u.s. economy grew 2.7% in the third quarter, much better than the 2% originally report. next, housing is healing. home prices jumped 3.6% in the third quarter, the biggest year-over-year increase in more than two years, according to the s&p case schiller index and energy is booming. new drilling methods are generating jobs and growth. 1.7 million jobs created, 2.5 million jobs creed up over the next year and added up americans see better times ahead, why consume are confidence is at a four-year high. i know, i know, i know. it's not strong nup enough, i agree. it's fragile, you're right. just this week the organization for economic development dow

i'm christine romans, welcome to our help desk special. the best way to make money is make sure your money is working for you. be honest. maybe you'd rather go to the dentist than get an annual checkup of your money. here goes. sit down. it won't hurt. you won't have the to give up your morning latte or anything like that. three drivers for your health, job, investment and health. a great year for the s&p 500. did you miss it? the s&p is up around 13% so far this year. the dow is above 13,000 again. calm it the ben bernanke rally. his fed pumping billions of dollars into the company, and stocks are loving it. but individual investors have missed it. stock, mutual fund outflows upwards of a trillion dollars so far this year. don't feel bad. hedge funds running scared, too. what's been scaring everybody? the fiscal cliff, anemic u.s. growth, europe's financial crisis, china's slowdown. so proceed, but proceed with caution. co-founder and president of ulta capital management, jack otter, editor and author of "worth it, not worth it" and walte

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our christine romans look back at the top ten stories in business that caught our attention this yearr 10, apple the first year without steve jobs and a company trying to prove under a new ceo it can invent things we needed we didn't know and would still buy. >> number 9, the u.s. stock market despite all the worries about the fiscal cliff and maybe slower growth in the u.s. economy, the stock market has had a great year. too bad you missed out. smart money has been in the market. the rest of us have been worried about the fiscal cliff. >> number 8, facebook's ipo, hundreds of millions of people like facebook, but investors did not. on its first day as a public company. trading glitches at the nasdaq and questions about the company's ability to make money on mobile users pummelled the stock which has yet to climb its way back to its ipo price. >> number 7, mother meyer. the new ceo of yahoo who announced she was going to take a two-week maternity leave. it looks like a mother's touch is just exactly what yahoo needed. >> number 6, mother nature. a drought in the midwest that scorched

here is christine romans with one way to break the debt cycle. >> reporter: the baileys are hard workingst, he is a minister, sue, a registered nurse. >> just over a period of time, we had more credit cards. >> reporter: 13 years later, the couple was overwhelmed by debt, $92,000 in the red, spread over credit cards, with interest rates as high as 30%. they worked with a credit counseling agency and managed a debt plan. >> we look at what their bills are as far as paying their rent or mortgage or utilities, and then we look at debts, who they owe money to, the type of debt. >> reporter: this agency waived fees and lowered interest rates. the baileys had to cut . >>> a family buried their seventeen-year-old son today after he was shot and killed last week in a gas station parking lot. according to police in jacksonville, florida, michael dunn was sitting in his car, waiting for his girlfriend when an suv, full of teens, pulled up alongside, he said he felt threatened, grabbed his own gun and fired at least eight shots. now once it was all over, seventeen-year-old jordan davis was dead, le

christine romans is in new york. respondent, is at the white house right now. but christine, i want to start with you and the bottom line. i mean, political posturing aside, if we go off the fiscal cliff, everybody's taxes are going to be raised an average of what, between $3,000 and $4,000 and if the stock market continues to tank, no one will be able to retire until they're 92 years old. >> merry cliff-mas, to all a good night. i don't see a path forward here. that's what's so interesting about what you have here. we're right where we started. it's like ground hog day only the movie was funny. this isn't funny. this is two sides who can't get together, and you've got one side talking about spending cuts, the other side talking about taxes, and we're just right where -- we are literally right where we started, carol, and you've got payroll processors who say it's already too late. the irs saying 30 million people could pay higher amt and 100 million people are going to have tax refund delays. the fiscal cliff is alre

christine romans, cnn, new york. >>> danny boston is with me now.t professor at georgia tech. he predicted this, right? everybody else thought it was dismal. you have been the ocht mist for many, many months now. why did this catch so many people off guard? >> if you look at homes, if you look at the housing sector that's coming back, and then retail sales using the holiday season were very strong. 5.8% in store fronts and 20% on-line sales. there's a lot of strength there, and economists have thought that hurricane sandy would have an adverse affect, and it hurt some, but there's so much going on that the economy -- >> is it possible we haven't seen the full impact of hurricane sandy, that we still might see some of those jobs lost, and it just hasn't been the numbers have not caught up to it yet to the reality? >> absolutely right. we do have to wait another month to get the full picture of it, but it was interesting that we saw initial claims for unemployment compensation initially spiked up right after sandy, and then they began to go down, and

that's the irony here. >> christine romans, thank you.e hope they get something done and some sort of deal done before january 1st. this country at war with itself in the past two weeks, at least 35 little kids and two teachers have been killed. how the kids of syria are finding life in the violence that surrounds them. ally bank. why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally. >>> this just in. the u.n. mission in south sudan says that a u.n. helicopter has now crashed in south sudan killing all four of the crew members that were onboard. we are trying to get as much information on this as possible. as soon as we have identifications or more details about that crash we will bring that to you. we are monitoring this throughout the hour. coping with the killing o

christine romans explains. >>> same condo, same owner, three different interest rates in just three yearsmber 2010 refinanced and it was 4.25%. now 3.6%. >> sinking mortgage rates save him $750 a month. rates have fallen from almost 4% to around 3.3% this year alone. just a couple years ago 6% was considered super low and once-in-a-lifetime. >> if you're sitting on a mortgage right now that is 5.25% or 6%, what should you do? >> you should be calling your loan officer. >> you shouldn't have a 30-year fixed over 4.5% s? >> you shouldn't. >> who would be refinancing? >> anyone with equity in the house, who is working can show a good credit score and has money in the bank. >> if you can save -- if you can save even 100 to 150 a month, it seems worth it. >> for smart is the new rich, i'm christine romans. bob, these projections... they're... optimistic. productivity up, costs down, time to market reduced... those are good things. upstairs, they will see fantasy. not fantasy... logistics. ups came in, analyzed our supply chain, inventory systems... ups? ups. not fantasy? who would have thought

for smart is the new rich, i'm christine romans.hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future. ♪ ♪ [ engine revs ] ♪ [ male announcer ] oh what fun it is to ride. get the mercedes-benz on your wish list at the winter event going on now through december 31st. [ santa ] ho, ho, ho! [ male announcer ] lease a 2013 e350 for $579 a month at your local mercedes-benz dealer. >>> this mother stands to lose a lot of needed assistance if lawmakers fail to reach a compromise. no deal would mean no support for her son with special needs. renee marsh has the story. >> 11-year-old kara is reluctant to lie down on the examination table. he's still learning about compromise, something hard to come by in washingt

christine romans is talking markets. >> and you can thank big ben bernanke, the fed chief.that the federal reserve and its herculean efforts to keep the economy moving is why stocks are up, why the economy is growing, and they're expecting the fed to announce new measures, new st stimulus to keep it going. so when you hear the catch phrase that the fed is the only game in town, the fed is the only game in town. around the world it has been central banks who are independent from governments, central banks who have been doing so much, pumping money into the system to keep things going. s&p 500 up 13% so far this year. all of these uncertainties we talked about, the fiscal cliff, all of that stuff, it is because of the certainty of fed policy many people are telling me, also because they think on wall street the fiscal cliff will be avoided. they think on wall street the only thing left to do is a little bit of shouting over what the top rate will be. 36%, 37%. they think corporate taxes will come down and we know that that is in the latest sort of proposal from the white hous

christine romans, thanks so much. we'll get back to you. well, we're still hours away from our new year's countdown in the u.s. people around the world are already celebrating. this is victoria harbor in hong kong. organizers say this year's fireworks display was the biggest one they have ever had. and check this out. that's sydney, australia, one of the first cities to see in the new year. known for having one of the most spectacular fireworks displays in the world. the skies above the famous harbor bridge lighting up with about seven tons of fireworks. back across the pacific, a countdown is already on for the stroke of midnight in new york's times square. you're looking at a test run of the traditional new year's eve ball drop. people finding a reason to be happy and celebrate, despite the saga playing out in washington. and if you don't have plans to go out, of course you can always join us here. anderson cooper, comedian kathy griffin live from new york. and, of course, our brooke baldwin in new orleans. they ring in the new year with

cnn's christine romans is here to answer another question. who's going to be the first to really feel the bite? what do we know, christine? it just doesn't sound good for anybody. >> the very first people, suzanne, are going to be people on long-term unemployment benefits. those are federal unemployment benefits after the first 26 weeks. those last checks were december 29th, on friday. if they go over the fiscal cliff, they don't have an extension of unemployment insurance benefits for the long-term unemployed, that's it. 2 million people about, their last check was on friday. they will not get a check next week. another 1 million will run out in the coming weeks and months, once they run out of their original state benefits of 26 weeks. the long life te-term unemploye get hit first. also, folks, if they do do a deal on tax rates, looks like it's not included in any of these negotiations. that means you're going to see taxes going up f. the payroll tax withheld will rise from 4.2% to 6.2%. early tax refunds will likely be delayed. you wouldn'

i'm christine romans. minding your business. u.s.utures higher, indicating markets could open higher again today. the federal reserve expected to announce more economic stimulus today. fed chief ben bernanke speaks at 2:15 eastern. the s & p 500 up more than 13% so far this year, and now up since the election. >>> bank of america, merrill lynch predicts oil prices in this country will drop to $50 per barrel. the cause? difficulty in moving huge amounts of oil from the bakan oil fields in south dakota and in texas. they don't predict a corresponding drop in gas prices. world oil prices will stay high, and our gas prices will likely track that. >>> americans are upbeat about the economy. 43% of americans say they are optimistic about 2013 and believe the economy is rebounding, nearly twice as many as last year. >> can i ask? the other day, we were talking about the fiscal cliff. and you tell us it will be really, really bad. why does the market keep going up? >> everyone thinks they will fix it. in the market, the question, what will t

month and a half of profit hurts. >> christine romans, thank you, from new york. >> you're welcome. > unions in michigan are fighting mad over controversial right to work legislation, two state senators share their thoughts on what it means for the future of organized labor in their state. ells ♪ ♪ all seem to say throw care away ♪ ♪ from everywhere, filling the air ♪ [ female announcer ] chex party mix. easy 15-minute homemade recipes you just pop in a microwave. like caramel chocolate drizzles. happier holidays. chex party mix. to the number 1 club in the world. the potential of manchester united unlocked. nyse euronext. unlocking the world's potential. she also likes to ride her bike. she knows the potential for making or losing money can pop up anytime. that's why she trades with the leader in mobile trading. so she's always ready to take action, no matter how wily... or weird... or wonderfully the market's behaving... which isn't rocket science. it's just common sense. from td ameritrade. >>> good morning, i'm ted rowlands in for coral costello. we're a couple of minutes away fro

christine romans has more in new york. asia is on the rise and an era of western dominance is over, it is not that far away. a 140 page assessment by the national intelligence counsel predicts it will be a far different world by the year 2030. a world undergoing, quote, tectonic shifts, comparable to the french revolution and the industrial revolution, the late 18th century, but happening faster, a lot faster. by 2030, china will have passed the u.s. economically and power shift to asia. the report says, the unipolar moment is over and pax americana, the era of american ascendancy and international politics that began in 1945 is fast winding down. expect food and water demand to soar 35%. and western middle classes to see even more competition from new rising workforces around the globe. brooke? >> christine romans, thank you. >>> we know the face, and soon the mystery could be solved. who was mona lisa? c cnn goes inside the search for leonardo da vinci's muse. >>> she had one of the most famous faces in history. and more