have jonathan hoenig. thank you for coming. in the dumps. >> it is amazing. you would expect there has been a tremendous state of bad news and all of the fiscal cliff made investors scared of stocks. gerri: but that is not a good idea to put it into bonds. >> it is dangerous jpmorgan jpmorgan, a city group, ebay , kellogg, 3m, at 52 week high as it is bullish but investors are once burned twice shy. gerri: i hear the big cap six but what about boeing's? we will fix the problem would you buy them now is down? >> that is the reason for my book what you do not. you do not want a bargain. at the time when so many are strong with a 52 week high do not buy the laggard. gerri: no apple? you are not buying apple? >> if they have the large cap they already own it. the biggest risk is interest rates. they have never seen them rise that they are poised to do that and that will be the big story. gerri: you have the big cap financials but they had great earnings. can they continue? >> this sector is strong. trends tend to persist so people

i thought it would be jonathan hoenig. and fox news contributor. i was going to start with charles, but there is no way i can ignore abe lincoln. are you begging for money? >> i am panhandling, melissa. if i was dead, i would be turning over in my grav this is a crisis erupting. because of the progressive philosophy and the politicians that have gotten ourselves into this unfunded pension liability. it has been ignored for years, that is why the problem has grown so big. this will mean slower growth and higher borrowing costs. melissa: i was looking at the beard in the hat and the whole thing. charles, did yo do you understad anything he said? to me it sounded like he was dead right. charles: that is another one for your highlight reel. they are making the situation worse. the state employees by the fifth highest in the country. here is the thing, they will do an offering on wednesday. cost $95 million. interest rates going through the roof. he started hauling off saying will illinois be the next california? i think they're worse. a big agricultura

jonathan hoenig portfolio manager manager at capitalist pig.com. dennis kelleher, better markets watchdog group and harry dent, author of the book the great crash ahead. harry, is the crash still coming or did this do anything to keep that, hold it off? >> well you know anything that doesn't cut government spending is better for the economy. it is just more stimulus. but we watched japan for two decades. and they keep growing with stimulus and all this stuff for three four years and crash and burn. melissa: i got to challenge that first statement. anything that doesn't cut spending is good for the economy? is that implies we don't have -- >> short term. >> okay, thank you. >> no, short term. it is stimulus. we hate estimatelous. we want austerity. rebalance economy. markets used to do this. the government will not let markets rebalance. we're carrying way too much private debt and government debt in the future. we'll be 28 to 30 trillion government debt in 10 years and these cuts, even with the battle ahead are going to be nothing compared to that.

kimberly fox, james freeman, assistant editor after the "wall street journal" and jonathan hoenig is manager manager at capitalist pig.com and fox news contributor. welcome to the show. welcome to all of you. jonathan, i want to start with you. did you hear senator sessions go by and what did you think of all that? >> well, i actually think lew is perfect for obama. i mean lew's signature, melissa is as unintelligible as the president's economic policies. so he fits right in. actually i share senator sessions's concerns. jack lew has been in washington since he was 18 years old. he is devout liberal and he seeks to maintain and in fact expand the failed entitlement programs that we're dealing with right now. i mean what i think treasury needs, keep in mind, this is the individual who signs the currency, we need a cutter, someone able to make those big difficult decisions and preserve currency. i don't think jack lew is that guy. melissa: even more than that james. we need someone to do math. really bugs me that he said we're not adding to the debt anymore. we're spending money that we

as we wait for that i want to bring back jonathan hoenig from capitalistpig .com about the market reaction talking about what whatarkets may do and whistle they have done up until now about washington's back and firth. your additional thoughts? we didn't talk that long about an hour guy. >> bret, i do think you will likely see some sem brans breaking news of a relief rally. literally trillions of dollars on the sidelines waiting to see what would play out here literally in the last the few hours. no question as was just pointed out because no spending cuts are proposed there is zero spending cuts within the whole proposal perhaps some tax cuts have been preserved but no spending cuts and that along with the entitlement problem really is what is at the heart of our nation's financial troubles. those aren't addressed at all and sandy levin talked about even higher taxes down the pipeline. with all of the talk about needing more resolution and certainty, i think unfortunately for america's investors very much the opposite has been achieved tonight. >> bret: the business community and how wash