welcome to the show on a busy expiration friday. best start for stocks since the reagan administration. is it too late to get in at this point. let's get in the money right now. we're not talking just 52 week highs. we're talking multi-year highs. microsoft, nike, chipotle on highs at the close of this week. mike, do you believe in this rally at this point? can it continue? >> i think it can continue if we don't have the concerns that are suppressing the market. the economic data have been good for awhile. what we saw in the options market in the early part of the week is people were getting -- a lot of skepticism was reflected. they were waiting for another shoe to drop in europe. we were seeing that the downside puts were getting more expensive. the at the money volatility was rising all else equal which is unusual. which reflected that kind of concern. then all of a sudden, fast forward two days and everyone seems to have forgotten about it. one quick point, we see the vix is trading under 18. we have a three-day weekend in here.

or above 626.70 by april expiration. since the time of the trade, priceline shares rallied making khouw and carter winners. now they must make a choice. take profits ahead of earnings or hold out for more gains. "options action" fans only have one question. what will these two do now? >> before we get the answer, let's see how much money was made. had you simply bought priceline stock, you would have spent $57,000 and made 3%. mike's can be sold for $850 today. that's a return of 25%. price line reports after monday, does move a lot of earnings. if you have a trade on this should you stay long? let's go back to the charts and carter worth. >> in many ways the same trade as exxon. >> you have well defined tops. priceline just breaking out. and the presumption is once breakouts happen, typically they continue to happen. this is very little movement as we just saw just 3%. we would think there's plenty more to the upside. >> what do you do? we've seen big moves in priceline so far this week. >> priceline does have an abilit

. >> the time of the gentleman has expired. the chair now recognizes the gentleman from georgia, mr. scott, for five minutes. >> thank you, mr. chairman. welcome, chairman bernanke. i'm over here. very good to have you. let me commend you and the fed. i think it's very important for us to recognize the achievement and progress we are making with economic recovery. i think it's in no small measure to your monetary policy and accommodation and creating credit facilities and certainly insuring liquidity for bow rowerrow -- borrowers. we're averaging 200,000 new jobs each month now. we're not bleeding jobs. we're adding them. dow jones is still cracking around 13,000. we've come a long way. but we're not out of the woods. i do, as it is important for us to recognize that your contribution in helping us wade through some very troubled waters. let me just ask you about the stringent standards that you are required under dodd/frank and under section 165 of dodd/frank. you were given that the opportunity to differentiate among companie

chairman, my time expired. i seek unanimous consent to let many terry respond since he's an attorney from nebraska. >> i object. >> the gentleman's time has expired. are there other members who wish to speak? >> the gentleman from texas mr. gonzalez. >> let me ask counsel a question. doesn't the concept of imminent domain contemplate a taking, an appropriation? >> yes. >> i mean that's the whole basis of imminent domain. there is a governmental purpose or interest that trumps the private property rights of a citizen. >> there's a balance within those compensation but that is a component. >> we can get into compensation forever on that. but it is still a taking. so if you have a pipeline deep in the ground, it is still considered a taking, right? of a private property owner's land. and i just want to make sure that we're -- we know what we're dealing with. secondly, doesn't the power of imminent domain belong to a governmental entity but it can be assigned to the private sector. is that what mr. waxman's questio

they all expire in the lame duck. you could actually imagine everything happening when the senate is going to change hands in three weeks, when the house is going to change hands and white house changes hands. every single branch of the government could be in turmoil at that exact moment. i don't know how you handle that, you kick the can down the road? >> in that scenario it's extremely likely you don't legislate during the lame duck gets kicked to next year and circumstances that you were suggesting, that new administration is going to have a huge mess on its hands right during the honeymoon period when you're trying -- at the beginning when you want to be proactive along whatever you're trying to get done you have to clean up this mess of those three things that are being left behind. it's not going to be pleasant. >> that would be if obama is reelected the second time the beginning of the term is the biggest mess he'll face in the entire term. >> whoever is president this time next year will face an intricate danc

so we continue the deficits. >> if we allow all the tax cuts to expire. if we allow federal revenue to rise in the highest level, we don't pay down a penny in debt? we don't want to eliminate our national deficit and we continue to accumulate debt. what that tells me, doctor, is that clearly revenues are not the challenge in this scenario. it's spending that's the problem. and i know that folks back home are wondering when we allow revenues to rise to the highest levels in 50 years, what they're getting for that money. >> but the short answer to that is there will be far more people collecting social security checks in 2022 than any point in the past 50 years. there will be more people collecting medicare benefits than the preceding 50 years. more elderly people collecting benefits for long term care through medicaid in the preceding 50 years. the american people are receiving benefits. whether you and they view those benefits as worth that cost is the judgment that you and they have to make. >> i guess that goes to my colleague's point. if we can allow r

if one looks at the effects of the differences between the alternative scenario that extends expiring tax provisions and doesn't impose the enforcement procedures from the budget control act, it makes it very large difference in government inflows and outflows in the next fiscal year. and you can see some of that. if you go to table, we have at the back of chapter 1, some of the most important tables in the document. the effects of alternative sorts of policies. table 1-6 shows the effects of a significant menu of alternatives. that policy-makers talk about. table 1-7 pulls together the pieces that underlies alternative fiscal scenario that we've used. so if you look at table 1-7 for example, one can see that the difference in the deficit in 2013, and this is fiscal year 2013, between the baseline of the alternative scenario, is almost $400 billion. so the amount of higher revenues and lower spending will occur under current law. is really quite sharp. and we think that will be pushing down the economy, as other factors are starting to push up the economy more. and that slowdown in gr

you buy one put, sell two lower strike puts against it of the same expiration. then you buy one even or lower strike put. give us the trade. >> it's a little more complicated than the vertical spreads we do. i'm trying to isolate a certain level here. i want to define my risk. i want to spend as little premium as possible. $10 wide put spreads cost about 350. it doesn't look attractive to me. i want to look to march and look to buy when the stock is about 4.83. paying about $3 for it. so i -- that's a total of 10.80. then i bought one of the march 440 puts for $2.30. this is a ratio spread. i'm covering my tail on the end. so i'm only risking the $3 that i spent for the spread. now i make money between 477 and 460 i can make money. like i said i can lose up to three between 477 and 460 and 460 -- 443 and 440. that's a long ways away. i don't think it gets there in just a month. so i like this kind of targeted tactical trade. >> one of the challenges is the fact that it -- butterflies can be a little bit tricky because you're trying to thread the needle a bit. pi

i want to look out to may expiration. today when the stock was 780, i bought the one by two put spread. i paid a nickel for it. i bought one of the may 7 puts for 40 cents and sold two of the may 6 puts for a total of about 35 cents. that's my net debit of five cents. my max gain is i can make up to 95 cents. between $6 and $5 on may expiration, the payoff trails off. really here's the deal. my worst case scenario is if the stock is six or below, i put the stock at $6. but i've made 95 cents. so my risk really is i'm long essentially $5.05. that's down 35% from current levels. i like that reward. >> dan has done a really good job putting some bearish bets on financials. we saw that at the beginning of the year. the only thing about this is that with a may one by two put spread, the sensitivity is probably more ripe now to increases in volatility than a downward move in the stock. i find it interesting that you're finally willing to sell a downward spiral. you thought that was crazy the first 30 days of the year. you know,

and i'm looking for an expiration date on it. is there an expiration date? >> the police department does not have an expiration date. that also is one of the reasons why it was -- that is why the legislation was changed and given to the department of public works which is used to provide annual permits and additional inspections to require to better manage this program. vice president hwang: as far as a grantee, they would have that permit indefinitely at the time of issuance? >> for the police department, yes. vice president hwang: thank you. >> we can take public comment now. is there any member of the public who wants to speak? please step forward. president garcia: does anyone else intend to speak besides mr. castillo? just two? you may have two minutes, sir. >> mr. castillo was unable to bring a family relative so would like me to translate. president garcia: which gives you four minutes. [speaking in spanish] >> i asked him to speak in one to two sentences at a time. >> good evening, my name is julio castillo. >> i've come here concerning the permit i'

the tax cut expires at the end of the month. both parties agree it should be extended, but not how to pay for it. it includes unemployment benefits and payments to doctors who treat medicare patients. this is almost three hours. >> good morning. this meeting of the conference committee will come to order. as i noted at the end of the last meeting, we are here to narrow the differences between the house and senate bills. we will discuss the extension of the payroll tax holiday. an extension of the unemployment reform insurance program and medicare doctor fix. i have spoken with chairman baucus and senator kyl. we have agreed to speak about those in order. we will switch between democrats and republicans to provide for more open discourse. we have also agreed to set aside specific amounts of time for debate on each issue, but we'll not be timing each member. i ask all members be direct in their statements and mindful of their colleague's ability to be heard. chairman baucus will begin and i will turn to levin. i will yield to repu

the gentleman from california's time has expired. mr. hastings: his time has expired? with that, mr. chairman, i yield the balance of my time to the gentleman from california, mr. nunes. the chair: the gentleman is recognized. mr. nunnelee: mr. speaker, -- mr. nunnelee: mr. speaker, this debate -- mr. nunes: mr. speaker, this debate is really incredible. there's nothing about veteran cemeteries in this bill. now, i can understand why the minority would want to talk about veterans, because we love our veterans in this country, we do everything to support them. but it is a stretch to say that a bill dealing with profit rights -- property rights somehow involves veterans cemeteries. but i will say, since we're talking about veterans, when we send our veterans overseas, our men and women in the military to protect this country, we have a right to protect people's private property. and that's what this bill does. now, i know my other friends on the other side of the aisle will continue to make this argument, they suddenly care about state preemption. well, they didn't care

i yield back. >> the gentleman's time expired. the chair will recognize the gentleman from massachusetts, mr. mark for five minutes. >> thank you, mr. chairman. it's only to kind of point out that back in 2005 the supreme court brought down a case called kilo versus city of new london. and in that case, the supreme court upheld a local government's use of imminent domain to transfer land from one private owner to another to further economic development. now the majority's response was quick and furious. they publicly condemned the decision and brought a resolution to the floor expressing the grave disapproval of the house of representatives regarding the supreme court case. and every republican on this committee who was in congress then supported that resolution. so it's interesting to see that while the republicans believed that this was a critically important federal issue, today they seem happy to allow a foreign corporation to exercise eminent domain. so just want to, you know, make it very clear that it's being noted on our s

if the expiring -- i'm not clear what the experiment had in mind here. in the current line baseline, taxes go up and spend is cut typically because of the budget control act. and our economic forecast is conditioned on that. if instead the congress extended the expiring tax provisions for the next few years, then that would increase the level of gdp at the end of 2013 by between 0.3% and 2.5%. by our estimates. that's about two-thirds of the total effects in the output. the other third is the affect of relaxing the spending cuts that we included. >> would you recommend that congress extend the current tax rates for three to five years to boost the economy and then revisit the issue once the economy has started to progress? >> it's not our place, congressman, to make recommendations. we have tried to illustrate here in the analysis we did and the comments i made the economic short-term economic consequences of fiscal contraction that is very rapid. of course, as you understand, we talked about, there are long term very negative economic consequences of no

the tax cut expires at the end of the month. this is about two hours. >> the meeting will come to order. good morning, everyone. i want to start by saying thank you to everyone for a really does discussion yesterday. hopefully we can continue to build on that this morning. for today's purposes, however, there are other issues that we have yet to discuss. and i do want to acknowledge that last night we received some proposals from senator baucus. wooet we'll get to those in a few minutes. for today's purpose, i want to talk about the agenda we have which includes reforms to xepd the nation's primary welfare program or temporary assistance for needy families. regulatory relief, also known as boiler mack, a provision that insures unfounded federal relations are not harming our economy and costing families their jobs. and bonus depreciation. another jobs provision in the house bill that promotes investment in hiring. i believe that we brought agreement on tanf. we alotted about 30 minutes of time for discussion there. there is 45 mi

therefore, the tax credit has expired. it has expired. and we need to get predictability if we want investors to go into that field. wind expires in 2012. i can tell you you can't move forward with a wind project today because you can't put in the service until 2013. so i would urge us to give that predictability through the industry. the wind industry right now is already announcing layoffs because of the expiration of the win tax credit. $60 billion was invested in the project since 2005. the amount of turbine production in the united states was 25% of the wind turbines. we're talking about manufacturing jobs as well the energy sauerss. and last li let me mention the transit extension, which affects all of our communities. until january of this year a person who used transit to commute rather than bring in their cars and parking were able to deduct up to $230 a month. it goes down now to 125 because we haven't extended the transit credit. some people say we'll fix this retroactively. we don't have do it now. if you live next to crispy a

this is a bear structure where you buy one put and sell a lower strike put of the same expiration to reduce your costs. it may sound complicated. to go to the short put strike. dan, walk us through the trade. >> i want to isolate an area that's a 10% pullback. so i think that's a good level of support. going to look out to april and buy the april 110, 105 put spread. i bought one of the april 110 puts for $2.45. i sold at 85 cents against it. so it cost me about $1. i'm sorry i have the wrong prices there. it cost me a $1. that's my max risk. so between 110 and 109, i can lose up to $1. between 109 and 105, i make up to four. then below i make the full four. i like the risk there. >> mike khouw, i'm guessing you would agree with dan in betting bearishly on caterpillar. >> i like it. they are reporting all-time highs and earnings. if you look over the course of the last ten years, this is company that has -- it's been cyclical. at the money options are cheap in cat but there's a lot of skew. the out on the money puts tend to be more expensive because of the risk. i like the direction

. >> the gentleman's time has expired. gentleman from illinois. >> thank you, mr. chairman. i like my map better than my friend, mr. markey's map. just because it shows all of the pipelines that we have currently in this country. i also would like to -- i have said this numerous times in this committee that the keystone pipeline ends outside of my district. and my refinery, the conacoe phillips did it during the lowest financial times. why? so they can ship it down south? no. to refine it. there's a better return on investment for refining a product than just moving the bulk commodity product as is. but let's just take my friend's debate for what it was. so what if the crude oil goes on the world market? so what? don't we understand supply and demand? don't we understand commodity products? the more supply of a commodity product on the market, the lower price of demand stays the same. it's very simple. my friend's map had -- why would we ship crude oil down to the gulf coast to then ship it to china? where is harper today? harper is in china. why? because he's trying to cut

you buy one put then offset by selling two lower strike puts of the same expiration. since you are short more puts than long, you may have to buy lower. what is the trade here? >> that last point is the key one. you are short more options than you're long. and there's risk to it. this ask not for everybody. i want to look out to may expiration. today when the stock was 780, i won the put spread. i paid a nickel for it. i bought one of the may 7 puts for 40 cents and sold two of the may 6 puts for a total of about 35 cents. that's my net debit of five cents. my max gain is i can make up to 95 cents. between $6 and $5 on mayics pir ration, the payoff trails off. really here's the deal. my worst case scenario is if the stock is six or below, i put the stock at $6. but i've made 95 cents. so my risk really is i'm along essentially $5.05. that's down 35% from current levels. i like that reward. >> dan has done a really good job putting some bearish bets on financials. the only thing about this is that with a may one by two put spread, the sensitivity is probably more ripe

you were not willing to allow the tax cuts for the top 2% to expire. and the only way we were able to prevent a tax increase of 98% of americans was to agree temporarily with the position you took. but the economy absolutely could have absorbed the impact of fop 2% expire. it would have been a modest change. even with growth as modest as it is, we could afford that. >> i see my time expired. i will point out, however, that four out of five people who pay at that higher rate above the $200,000 income threshold are small business owners. people have business and they have flow through income. they are people who create jobs. i think that was the calculation that was made not only by those of us in congress but also by the administration and with when the decision was made to extend all the rates. >> we should agree on a moratorium to this debate. we do every time we're in this room. you say small businesses and we say 2% to 3%. you acknowledge 2% 3sh, 3%. in any case, we have let others judge the impact on small businesses. but there is no credible argum

your time has expired. our work on very much. this calculus business. i'm going to stay away from it. it wasn't my strong suits in college. i would like to ask miss johnson, i commend you for bringing forth the family business for 60 years and being successful but i -- looking at your testimony, you do bring up, of course, all these impediments. you talk about how osha, of course, is troublesome, frustrating, and confusing and many issues you have to keep up with. of course, you certainly feel that we could do without the epa and their programs of slowing down job creation and on and on. but let me -- and i could ask you a lot of questions about both of those. let me just ask you about your testimony regarding the national labor relations board. you testified in your testimony, you contend that the nlrb unlawfully issued a rule regarding the posting of notices on employee rights. first, does your company post notices of employee rights regarding the minimum wage, osha, and workers' compensation and laws prohibiting discrimination? >> yes, we absolutely

or those tax provisions that expire? or at least we say they're going to expire. and all they want to do is to get them in the code. someone said seeing tax law made is like seeing sausage made. you just don't want to see it. now, what i'm suggesting is that if this outstanding group of corporations that you have listed, how often do you meet? this group, what's the name? >> reducing america -- >> yes. because our problem here is the lobbyists represent the best tax interests of their clients. reform is not on their agenda. if they came back to you vice presidents and presidents and said what a great talk i had with ways and means people, we'll have to give up depreciation and a lot of other things but wow would this be a fairer system, he would get fired. his job is to broaden the gap or to create one. temporarily, but never allow it to sunset. so what we do need are people that have the credibility that you guys have, and ladies, to get in a room and to find out what we can get away with as elected officials. nobody is talking about getting rid of charitable org

the vendor says just about anything else, the expiration date is an expiration date, it would be questioned in court, but whether or not it had a direct influence on the calibration is probably negligible. so to recap, what we will be dealing from the vendor is to get recertified over the last 10 years. we lost a part of the test. commissioner turman: the accuracy part. >> we will train the officers, look at the policy, rewrite the policy if necessary, making sure we are not dropping to one of the two required tests. commissioner turman: in the timeframe that the calibration test will be done, they will also be doing the accuracy test? how often will that be done? >> i believe every 10 days. >> a traffic co. can only do it every wednesday. they are brought to the traffic co. and they are retested. commissioner kingsley: my questions have been answeredthao our attention. >> onexd quick question. what was the actual difference between the test results from the past device and the blood, breath, or urine? was the difference is significant? >> i could not tell you, that will be part of the inve

when that sublease expires, we do not have any rights. this captures the space under a new document, this master lease. supervisor chu: a kick, and there is a question about the space, and particularly the cjc -- ok, and there is a question about the space. whether there is a program that should continue, and i know there is a rand study coming out that while deal with the effective use of the program, or maybe not, but i think many of us are in the mind that we do not want to be locked into a long-term lease when we may not have an interest in continuing the program, but separate and apart from that, one of the things you talked about, if we do continue forward with this please, there is quantity future demand and future use of the space and that we also ratified- year out clause. can you speak more about that component, and really how does it compare in terms of rental rates out there? i think you speak and alluded to this a bit. in any case, whether we support cjc going forward or do not, it does seem like the city has a need to get ad

as i understand it, the president's budget calls for a portion of bush tax cuts being allowed to expire, that is the expiration of high income tax cuts, that raises over the next ten years and you are proposing, as you pointed out, that represents about 1% of the deficit reduction that had this budget contemplates. and $1 of deficit reduction for every $2.5 of spending cuts and the spending cuts, how much of that is contemplated in the s eve equester that was enacted by the congress? >> the congress put in tight caps, nondefense and defense for the next ten years and produced a savings of over a trillion dollars and then another cut that caused a saving of another trillion dollars that would motivate congress to embrace a more comprehensive balanced package of reforms. if congress does not act to put a package that is greater, that will force deep cuts in defense and the rest of the government. very deep cuts and very damaging cuts. and there's though reason we should face that prospect. but the sequester was designed to encourage congress to replace those cuts with a more carefully des

. >> thank you, my time is expire expired. >> thank you for your testimony. and i wanted to start with the unemployment insurance and the conversation that is going on. and a conversation is going on about how to sustain the 79-week standard and how do you see that piece of the puzzle fitting into the issues that would affect the economy? well, unemployment insurance is multifaceted. on one hand it provides support for people who are unemployed or who have unemployed family members, and those people will be more likely to spend to add to demand in the economy. it probably on the margin leads people to wait a little longer. that the spells of unemployment may be longer because of unemployment insurance. that, too, is a mixed blessing. the extra time allows people to find a more appropriate job with a higher wage, instead of taking the first thing that they see. there's a lot of interesting ideas out there for redesign of unemployment insurance. are there ways to create incentives nor more training skill building during the period of unemployment as you discuss

>> the gentleman's time has expired. i'm sorry. mr. tierney. >> thank you, as you know the vall patrick was invited today to testify. i would submit his written testimony be allowed into the record. >> without objection. >> thank you very much. governor snyder in particular, i note in governor patrick's written testimony here he's quite proud of the fact massachusetts made certain gains as you are with the state of michigan. he made a quote growth comes from investment, not cuts, government must do its part to help people and businesses help themselves. he goes on to talk about massachusetts was 47th in job creation in 2006. now even during the last couple years of recession has gone to fifth on that. he's proud thatoverall achievement in both math and science and that we lead the nation in massachusetts in health care coverage, having covered over 98% of our people on that basis. that he's closed his budget gap, eliminated a structural problems on deficit on that and has a higher bond rating than they've ever had in massachusetts on t

>> we do see some raising the price in the 6-9 months before the patent expires. >> does that defeat the alleged massive savings to the consumer from ger nark drugs? >> not at all. the opportunity is enormous. we know that if the country used anti-inflammatoriy drugs the way doctors and kaiser did rather than celebrex and vioxx, the country would have saved 5 billion dollars. >> i'm sorry we are out of time dr. sharon levine. time dr. sharon levine. anncr: no matter who you are. no matter where you're from... every family... ... everywhere should have the financial security they need. not just the ones who can figure it out. not just the most fortunate. everyone. metlife i can do this.

>> the expired contract? no, that was not the case. chair chu: that could explain some of the differential. >> it could, it could, but i am not sure. chair chu: and the first bidder use that went into negotiations with the city but are not in the contract that you brought before us. can you explain that a bit more? >> sure. the concept of the minimum annual guarantee, we did not see eye to eye on what that meant, and when we analyzed the terms and conditions of what they put before us, it created so many potentials for a reduction as the landlord, we did not feel edmund minimum. it meant a potential, and when we looked at the actual minimum numbers that would be reasonable return, their ranking fell frankly to the bottom of those that submitted proposals. chair chu: thank you for the explanation. why do we not go to the budget analyst's report? >> madam chair, members of the committee, on page 5 of the report, we point out that the proposed permit would generate $93,000 in the first year. that is the minimum guarantee of 63,000 plus th

the speaker pro tempore: the gentleman's time has expired. all time for one-minutes has expired. for what purpose does the gentleman from georgia rise? >> madam speaker, by direction of the committee on rules, i call up house resolution 540 and ask for its immediate consideration. the speaker pro tempore: the clerk will report the resolution. the clerk: house calendar 111, house resolution 540, resolved that at any time after the adoption of this resolution the speaker may, pursuant to clause 2-b of rule 18, declare the house resolved into the committee of the whole house on the state of the union for consideration of the bill h.r. 3521, to amend the congressional budget and empoundment control act of 1974, to provide for legislative line item d veto to expedite revisions and for other purposes. the first reading of the bill shall be dispensed with. all points of order against consideration of the bill are waived. general debate shall be confined to the bill and shall not exceed one hour equally divided among and controlled by the chair and ranking minority member of the committe

when there was that possible expiration in 2010, there was clearly activity that was occurring in late 2010, in anticipation that the rates and other things might be changing. >> all right. >> i just -- i just echo all the same comments. certainty is going to help us a lot. >> i just have a rhetorical question. is it better to address the issues that are coming up december 2012 sooner or december 31st of 2012? you don't need to answer that. i'm assuming that done in a logical process where people can engage in the debate makes more sense. i'll yield back, mr. chairman. >> thank you. ms. black is recognized. >> thank you, mr. chairman. now that all the questions have been asked and people have said how much fun they've had, i do start to question some of my colleagues about what their definition of fun is. but it has been very educational to have you all here today. and mr. berg has been running in and out, in and out, and he comes in and asks my question last minute. since i'm the last one here, mr. chairman, it does not seem fair. but all that aside, this has really been a very helpfu