tv Varney Company FOX Business December 3, 2012 9:20am-11:00am EST
>> you know, we should be playing the baeleatles, tax man take a walk and i'll tax your feet. welcome to tax eeerything america. good morning, everyone. income, dividend, interest, deductions, all financial transactions, granny's new hip, your mortgage interest. as we start the week it's all about raising taxes not cutting spending. tax everything. but there are rich people who will avoid the obama tax increases the board of directors at costco will get a huge tax windfall by paying themselves a big dividend this year. and jim senegal, charlie monger, bill gates' father all on the board in favor of taxing the rich, really? and the debate on guns front and
center. that murder-suicide involving the kansas city linebacker brings on the call for gun control and the possibility of head injuries in football and drugs and alcohol. all right, everybody, monday morning, "varney & company" about to begin. [ male announcer ] this is steve. he loves risk. but whether he's climbing everest, scuba ding the great rrier reef with sharks, or jumping into the marke he goes with people he trus, which ishy he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what haens, which isn't rocketcience. it's just common sense, from td ameritrade.
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basis for an agreement for the american people. stuart: other voices on the left are chiming in with tax suggestions and ralph nader says he wants a tax on every single financial transaction including stock trades and he calls it a speculation tax. an editorial in the washington post today calls for an end or at least limits on the deductible for charitable deductions. overwhelmingly the deduction benefits of the wealthy and the rest of the country has to make up the gap. of course it benefits the wealthy,,but not as much as it benefits the charity is my point. and the president's proposal includes, this is the president higher taxes on wealthy for income dividends, and a slew of new taxes as part of obamacare. >> here is what speaker boehner said on taxes. >> the day after the election, i the cameras and made clear that republicans were willing to ut revenue on the table if there were serious spenddng cuts and reforms put in place.
we've talked about them. the president and the white house have had three weeks and this is the best we've got? >> so, it's all taxes and all raising taxes, no worries, there are serious proposal or even talk about reforming entitlesments, talks have gone nowhere, we're weeks from january 1st the fiscal cliff deadline. at least we're not stuck on the road to moscow. take a look at video out of russia, thousands of drivers in sub zero temperatures, little food or help for days. it's a one mile long traffic jam. heavy snow in moscow caused a stand still and links with the second biggest city, no, in november, december in russia? who would have thought? the issue of gun control took center stage during the half time show of a football game last night. and listen to what bob costas said in response it a murder-suicide over a kansas city player. >> handguns do not enhance our
safety. exacerbate our flaws and tempt us into arguments and embracing confrontation rather than avoiding it. and here is what i believe if jovan belcher didn't possess a gun, he and cassandra perkins would both be alive today. stuart: we want to know what you think. go to our facebook page, weigh in, we value your opinion. and a top environmentalist, will a carbon tax will cause the glaciers from melting and temperatures from rising. his response in one second.
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>> we are expecting the dow industrials to open just a little bit higher this morning, maybe 15 points when they're up and running and one interesting number in the background here from chrysler, sales up 14%. they have their best november in five years. that is chrysler owned by the italians. check the big board in the very early going. where are we? we're slightly higher. up about ten points and probably going up 50 in the next minutes. and well above 13,000 now. and this is what i call tax hipocracy, people who want others to pay more, but don't want to do it and pay it themselves. for example, costco, it's spent 3 billion dollars in a one time dividend to shareholders this year. and it's borrowing the money to
make that payment. we reported this when costco announced it last week and check dollar dividend payout. doing this now, not next year, now, savers him 4 million dollars. and yet, senegal. he's a very big obama supporter and spoke at the democrat's convention and listen to this. business needs a president who covers the backs of businesses, a president who understands what the private sector needs to succeed. a president who takes the long view and makes the tough decisions. >> yeah. >> and that's why i'm here tonight supporting president obama. stuart: now, isn't that hipocracy? you support a tax the rich president, you're rich, but you don't pay the tax the rich
penalties. interesting. and now look at this. joe biden shopping at costco last week. did some holiday shopping, and posts pictures with jim senegal and warren buffett's right hnd man and bill gates' dad on the board, too, and receive early dividends and ay less tabs. several reports say the demand for microsoft's surface tablet is so weak that they cut the orders from the asian manufacturer in half. i own microsoft stock. lauren, where is it now? >> 1% and stuart, i feel bad for you, microsoft was the second worst performer in the dow jones for the month of november and needs all of the gains today. and you know, if you've ever walked past time square, i know it's kind of right by where we work. that surface pop-up store from microsoft is always jam packed, i guess it's in a busy area and it's surprising to see they're cutting back on orders.
stuart: next time i go in there if i do. i'll press for an early dividend payout of microsoft's 50 billion dollars in cash so some of us can benefit before the end of the year, but i'm not holding my breath on that. all right, lauren, thanks very much indeed. by the way, the dow industrials opened 54 up almost 56, 1382 as of now. and we've been saying since election day on "varney & company," a carbon tax may be coming. california already has one and fueled by a new report on the melting polar ice cap, it could be just a matter much time before the left pushes a carbon tax through. would it stop rising temperatures? would it? joining the company is bjorn lump berg, and one of the foremost authorities on environmental. and did you get chucked out of denmark. >> i mean, in the sense of the new government cut off my funding. stuart: because of your position
on global warming and environmentalism. >> yes we don't want to it hear good advice. stuart: what's your advice on the carbon tax, if we got one, would it help reduce co 2 emissions? >> well, any climate economist would say a low carbon tax makes sense, but the problem is, it will only cut a very tiny amount and of course, what you really have to remember, you're never going to get china or india on board. so essentially, it's going to have a very, very small effect. it's not the solution to climate change. >> would you say that the co 2 emissions are causing temperatures globally to rise. >> yes. >> and that's accurate? >> and in the long run, we do need to cut back on carbon emissions, but the way that we're trying right now, the way that we're trying in doha and many international areas is not working and we're essentially making up these promises, but what are we doing? we're sending productions to china and india, so essentially we're putting out more co 2, but not in our home countries. stuart: will you hold on a second, i've got breaking news, we'll come back to you.
and ford sales up 6%, the stock is up about 2% now, 11.69. earlier chrysler reported a 14% sales increase. back to bjorn lundberg, the doha climate change conference from the united nations still going on. what do you expect to come out of it. >> unfortunately, virtually nothing. look, we've been having these conferences for 20 years where all the governments of the world get together and try to promise to cut carbon emissions, but the reason why we can't do that is because carbon is the side effect of stuff we like. it's the electricity we have in here, it's all the great things that fossil fuels provide. stuart: what should be the global fix to the co 2 emissions problem? what would you recommend? >> well, fundamentally, as long as green energy is much more expensive than fossil fuels you're never going to convince, certainly not china and india, but not even the u.s. and europeans, that you need to
innovate the price down and that's the solutions pretty much every place. >> we haven't got the technology. >> and you expect that? >> absolutely, so the point is stop putting up inefficient solar panels now. but make sure you get them to be cheap enough everyone will want them in decades. >> your judge is that a carbon tax may reduce co 2 emissions a little tiny put if you do it in america, but won't help the overall problem. now i want you to tell me, do you think that a carbon tax is coming to america? >> well, there's certainly a lot of good arguments why you'd want one. it brings in a the lot of money, but the real problem of course, brings in lots and lots of political controversy so you're actually taking your eye off the ball of fixing the problem in the sense that-- >> let's have your judgment. it brings with it political problems, i've got that, but brings in a lot of money so is it likely to happen? >> i think a good chance it could happen. >> of what form do you think it would take, a gas tax or an
emissions tax of some sort? >> i don't know, and again, economists would say if you're going to have one at least it should be broad based rather than specific so you tilely tax everyone, but of course, that's happened virtually nowhere because then you start accepting big emitters and then there's no point. it's just a money making machine that's left over. i want to go back to this. they didn't chuck you out of denmark, but they cut off your funding. >> they did. stuart: did the government sort of specifically say we don't like this guy, we're going to cut his funding. >> yes, it's one of the planks they ran on when they ran for government. stuart: they ran you out of town. >> basically. but listen, the argument still remains we're not fixing climate change we're not fixing at doha, you can't chuck out a guy and hope that this doesn't come back to bite you. stuart: and europe remains ubergreen-- and sorry to use the words-- and ubergreen. yes, we've cut carbon emissions,
but shipped more to china and india than the u.s. has. remember, whereas we've paid a lot of money to cut our carbon emixes the u.s. is cutting more by using fracked gas cut more than europe and-- >> environmentalists don't want fracking, the water and the-- >> there are problems with fracked gas, but amaze lig green option for the next ten years and that's one thing that europe doesn't get. and china and india do. stuart: move to america and fracking and-- >> thank you very much indeed, sir. new at 10, listen to this, united states the land of opportunity, oh, yes, for some chinese tourists they're take full advantage of the hospitality. a so-called maternity hotel where chinese mothers are paying to stay and have their babies, instant citizens. good story and it's new at 10. also, time is money, as you well
know. so, here in 30 seconds is what else we're watching for you. the tax the rich crowd has gone too far. one column this morning is calling for the elimination or at least the deduction or certainly the limitation of the deduction for charitable donations. because it benefits the rich too much. get that? we'll talk about it. and a new proposal to extend school days have the unions up in arms. no surprise there, but we're covering it. and the u.s. has a declining birth rate similar to what japan experienced. are we headed that way. keith fitz-gerald, a resident of both countries, america and japan, we'll get his assessment on that. and please, we want to hear from you, e-mail us at firstname.lastname@example.org. tell us exactly what you think and what we talk about. monday morning, seven early movers, apple s rolling the iphone five out worldwide and hits china december 14th. 50 countries will get it and the stock is almost back to 600.
dell, goldman sachs upgrade today a buy from a cell. $13 is the price target. it is up today. myriad genetics, the supreme court agrees to hear a case whether genes could be patented. if so, a boost for the company. if you can patent them up goes the stock, but today it's down. delta airlines is in talks to buy 49% of virgin airlines from singapore airlines. and maker of the ugg boots, they're out with positive comments on the stock, sets a $65 price target and it's at 41 and rising. and some soamazon, billions ord on-line. and disappointing results for the well in the gulf of mexico, down it goes. t
dow industrials holding a 50 point gain. 11 states in a so culled de-cal spiral. and makers versus the takers. the man who wrote the article, why states are going broke and who is going to pay. ♪ jingle bell, jingle bell rock ♪ ♪ snowing and glowing a bushel of fun ♪ ♪ now the jingle hop has begun ♪ ♪ jingle bell rock, jingle bell time ♪ [ male announcer ] at scottrade, you won't just find us online, you'll also find us in perso with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you kno becau personal service starts with a real person. rodger ] at scottrade, seven dollar trades are just the start.
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magazine ap those are the states on the screen. they're in such bad financial shape that bill aldwin, who wrote the article, suggested that word, death spiral applies. well, william baldwin is with us right now. william, welcome to the program. >> welcome, i didn't mean to cause any panic, you know. stuart: you can't cause panic, but a lot of interest. and that stirred things up and you know it. i got several hundred comments on the story and not all of this favorable. a typical one was something like this, okay, we're going to sell our beautiful beach house in malibu, california and move to bismarck and live in a tent. great weather there, right? that's not what i was saying you have to move. that's not it at all. i'm saying don't buy a house in california. stuart: don't put your business there, don't move your business. >> well, what if the bussness is there? if you get a job offer from google in silicon valley, take it, but just don't buy a house, rent one. stuart: what is driving what you call the death spiral? >> there are a lot of economic factors built into this, but the
essential one in my view is whether there are more, what i call, and i know this is a contentious word, more takers than makers. stuart: yeah. >> and i don't mean that the takers are bad people. i'm assuming in my article that every single person drawing money from the state government as an employee, as a state employee who's retired, or as a deserving and needy welfare recipient is indeed entitled. that's not the point. the point is what happens when you chase out the private sector jobs that support all that spending. stuart: okay, i've got that. now let's boil it down. one of the themes on "varney & company" for years has been this: we cannot afford to pay the state worker pensions in many states, which we have promised to pay. is that at the heart of the death spiral article? >> it's one of the contributing factors. in illinois the biggest ones. stuart: must the states pay the money they promised to pay, must they? >> in most cases mostly that's true.
the reason is, it's not fair and it may be even unconstitutional to take away a pension that's already been earned. that's just theft. but there are ways to cope with this crisis and the states aren't addressing what they could be doing. they could stop crediting new years of service, they could put not just new employees, but existing employees into a 401(k) plan which is probably what you have, it's what i have. stuart: they could put existing employe employ into that? >> yes. stuart: it's a sharp change. >> not as sharp as taking away something already earned which i don't think you can do, which is not fair. if i'm a state prison guard in california and i've been promised a great pension if i put in 30 years, and i put in 15 years, you can ttke away half of my pension, but not the half i've earned. for the remaining, put in a 401(k) plan. >> there are solutions, it's not a death spiral if politicians take the right action in regard
to state worker pensions. this can be done. >> i think there's a way to stay in california and marry your state's great weather to-- >> why aren't they doing it? you know in california the unions would, and in illinois, the unions would never stand for the kind of steps that you're talking about, never. >> the most that's been done anywhere is to put new employees into a 401(k) plan and that's not even happening in california. stuart: you're not answering my question. you know perfectly well the unions would not stand for it, would they? >> they have a super majority. >> the unions do. >> right. >> if that answers the question. >> and they won't stand for it, right? >> won't stand for it. death spiral stands. >> bill baldwin, you come back and see us again. write another article like that one and you'll be back. >> time for the gold report, i'm a little behind the times, late, but nonetheless, 1,717 an ounce and we're up 460. right around 1700, 1750 for a couple of weeks.
and kansas city chiefs, the linebacker, jovan belcher kills the mother of his child and shoots himself in front of his coaches igniting a debate over gun control. sandra smith and kenny j attorneys, they'll respond to what bob costas said about the murder-suicide shooting after the break. [ male announcer ] this is thege of knowing what you're made of.
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>> a truly horrible shooting over the weekend. kansas city chief linebacker killed the mother of his three month old child and then himself. and whenever we have a horrific crime like this, in the media use it to push gun control and bob costas took 20 seconds during half time of a prime time football game to offer his view. fair enough. here he is quoting an article by kansas city star writer jason whit lock. >> guns do not enhance our safety, he fade us into embracing confrontation rather than avoiding it, here wrote jason whitlock i believe if jovan belcher did not possess a gun, he and cassandra perkins
could be alive today. stuart: sandra smith, that goes to the heart of it. if guns had not been in that house, those two people would be alive today. and you say what. >> that was ayn appropriate statement, inappropriate time when the team and family members of this tragic circumstance are still mourning and to inject a political statement such as that, at that time, during a ball game was just inappropriate by bob costas and listen, it's almost as if he acted like the gun committed this act of domestic violence. it was the person and his girlfriend was the victim here. and to say that -- it could have been any weapon of choice, it could have been a bat, could have been a lamp. it could have been anything, but to blame this on merely a gun in the house is a problem. stuart: and kelly jane tore rance, you're on the company and your view is what? >> i'm always puzzled the same people who understand the drug war proved that the government really can't prohibit anything make similar argument for guns. the government says drugs are
illegal, drugs everywhere, just because the government is going to say now what we're going to limit guns, why do people think that's not going to have the same results? >> we have an extraordinary run-up in the sale of guns this year and especially that black friday record which was stunning. thank you very much indeed. and how is this for economic controversy? baby tourism in california. charging residents in china to stay until their baby is born. and hot topic, we're talking about it and this will be new at ten that's next.
♪ stuart: new at 10:00 o'clock. controversy at a whole. mothers are willing to spend thousands of dollars to have their babies here in america. we will talk to the judge about this in just a couple of minutes. the very big story today is this. you have no idea what taxes you will be paying and 2013. if the white house has its way, it will be all taxes, all the time. the democrats are holding the line on big tax increases. we are talking about that right from the start on this monday
morning. it is a go nowhere monday. there is little volume. very little price movement. here is our company of the day. sandra smith is here from fox business. lauren simonetti from the floor of the new york stock exchange. the share price of dell. suddenly this thing is moving. >> of nearly 38%. goldman sachs doing a 180 on dell. they upgraded all the way to a five. thirteen dollars from nine dollars. all of the bad news in the pc industry -- stuart: okay. thank you very much. now to the big story. timothy geithner puts the ball in the court of the republicans. he says he cannot guarantee we
will not go over the fiscal cliff. >> no, i cannot promise that. that is a decision that lies in the hands of the republicans that are now imposing increasing tax rates. stuart: okay. if the republicans do not agree to higher taxes on the rich, it is all there fault if we go over the cliff. got that. this is what john boehner had to say. >> the day after the election, i found the results. i went to the cameras and made it clear. the republicans were willing to put revenue on the table if there were serious spending cuts and reforms put in place. we have talked about it. the president and white house have three weeks. this is the best we've got? stuart: as of this monday morning, the white house wants the republicans, forces the
republicans to agree to raise taxes. the republicans thus far seem to be saying we will cut deductions, but not raise tax rates. >> what is so flabbergasting to me is that geithner, you just heard him, he basically said if the republicans do not do what we put on the table, it is fall off theefiscal cliff and it is the republicans fault. they knew where the republicans stood coming into this. they are not getting it. stuart: do you think that the republicans will cave? >> i am going to differ on this. no, i do not. stuart: do we go over the cliff? >> i think we are in serious threat of going over the cliff at this point. >> mitch mcconnell told us that he laughed out loud when
geithner presented the proposal to him. that says it all. stuart: so you think that they will not cave? >> no, i actually think they will cave. stuart: they are? >> the democrats have the upper hand here. we just had an election. raising taxes on the wealthy, as he calls people who make over $200,000 a year. he won the election. they have a mandate. >> the republicans have a lot of leverage. the president wants to have a successful second term. if he allows us to fall off the fiscal cliff that we could fall into a very deep recession. >> if he allows us to fall over the fiscal cliff, and i think they are making that point. >> i believe grover norquist. they should get the media
cameras in their. stuart: let's get more on this. we have a special guest joining us. he should have been on varney & company many times. >> i hope this is the first of many appearances. great to be with you this morning. i am kind of in a foul mood this morning. i am going to say something. the three of you are going -- if the republicans just gave the president what he wants on these taxes, low, in the end, the taxes are going up. we still have a trillion dollar deficit. this does not solve anything. at best, even if they raise the money they think they will, and i don't think they will raise any money, they are still left with a trillion dollar deficit. how are you going to bring down a trillion dollar deficit? i think the democrats are on --
i had to get that off my chest. stuart: gm car and truck sales are up 3%. the stock, dead flat. sales up 3%. that is the car sales numbers coming in today. steve, i want to get back to you here. the democrats say, wait a second, wait a second, you raise taxes on the rich just like the clinton did back in 1992 and you end up with a bill. you have a solid expansion. what do you make up with that argument? >> i hope they do not believe that argument. look, maybe barack obama is right. maybe if you raise these taxes, it will not hurt the economy.
[talking over each other] stuart: bill clinton raised taxes and the economy took off. >> there are a lot of things that influence the economy. not just taxes. there are other things. there is no monetary policy, which was great under bill clinton. do not forget that bill clinton did welfare reform. one of the most historic acts over the last 50 years. do not forget that we caught government spending within those years. the problem with obama's proposals is he wants more. this idea that raising tax rates does not hurt the economy because, you can go ahead and spoke three packs of cigarettes a day for the rest of your life because i know somebody who did that and he did not get cancer. stuart: okay. that was very good.
[ laughter ] now, i know why you have not been on the show very often. i am at a loss for words when you are done. stephen moore, i do hope you come back and see us soon. >> thank you, sir. stuart: here is an example of what i call tax hypocrisy. costco founder going to save because of the dividend payment this year. not next year, this year. the ceo, he is a very big obama supporter. even spoke at the democratic convention. >> a president who understands what the private sector needs to succeed. a president who takes the long view and makes the tough decisions. that is whh i am here tonight supporting president obama. stuart: supports president
obama, supports tax the rich, but does not pay the rich taxes. i say tax hypocrisy and i am being very mild. >> i agree. every time i hear the rich guys say, you know, i want to pay more taxes. i say, you know what, if you want to do that, why don't you donate some money to the country. stuart: he borrows the money -- >> borrowings $3.5 billion. stuart: and then costco was downgraded. >> this kind of payout is done with earnings from a company. money is free right now. stuart: have they no shame, in my personal opinion. let's get to lauren. apple stock is up some more.
>> it is up five dollars today. the iphone5 has been sold in 47 countries. by the end, it will be 100 countries. china on the 14th. that will be a big market. this is feeling apples momentum. maybe we will start to see that 700 plus dollar market. stuart: now it is up $100 or more. lauren, thank you very much, indeed. their protest this morning in california. the protesters claiming the house is hosting women foreign countries, mostly china, they will come over here to have their babies. all rise, the judges here. he has constitutional and legal perspective on this. [ laughter ] stuart: why are you laughing? >> it is hard for me to believe that this could happen in
violation of state and federal regulations. stuart: what i am getting at is not local zoning restrictions. the anchor baby. whole idea of is it in the constitution that if you are born in america, you are an american citizen. >> yes. it has been there largely unchallenged since then. efforts by members of congress who do not want this type of behavior to take place, to stop that by ordinary legislation would fail. it would take an amendment by an amendment.
in my view, our rights are natural. they come from our humanity. if you believe in god, you believe our rights are a gift from god. it does not matter where you were born. those ladies have a right to come to california and have their babies there. those babies have to say right there theoretically if they were born in beijing. stated differently, i think anyone can go anywhere they want to be born. sometimes the interference is based on racism. sometimes it's based on history. sometimes it's based on economics. stuart: if you are born here, you are a citizen. >> is a child is born in london, is that child a british citizen. [ laughter ]
♪ stuart: you know, it is monday morning. three weeks before christmas, roughly. look at this, and it shows up just 11. we have a report on manufacturing. the reading was 49.54 november. that means contraction in that sector. china reporting positive news about its manufacturing sector. that puts the market up. today is the first trading day for the month. gm sales of 3% compared to last year. board of 6% compared to last year. chrysler was up 14%. back in 90 seconds with more from the judge. gun control. you are fired up about it. we can tell from the facebook pages. so is the judges. ♪ ♪
♪ [ male announcer ] the mercedesenz winter event is back, with the perfect vehicle that's just right for you, no matter which lisyou're on. [ santa ] ho, ho, ho, ho! [ male announcer ] lease a 2013 c250 for $3 a month at your local mercedes-benz dealer. stuart: gun control is once again in the headlines. kansas city chiefs linebacker belcher kills his girlfriend and then himself. now, the liberal media going after guns. >> handguns do not enhance our safety, they exacerbate our flaws, tempt us to escalate arguments and embrace us to have
confrontations other than go away from it. if belcher did not pose us of god, he and his girlfriend would still be alive today. stuart: no gun, no crime, no death. >> if you look at statistics, it is just that available a accurate. where the police can't or will not get there in time to protect you. their job is to investigate crimes. they are not guarantee of our safety. the supreme court has ruled definitively in the last six years that the right is a personal right that the government cannot interfere with. bob costas for all of his knowledge of sports, they have
no basis to say that these people would still be alive if the person who pulled the trigger was not able to get a gun. we all use steak knives to help us enjoy our meals, but they can also be dangerous weapons. they are far more easily attainable than guns. stuart: i was intrigued by the whole story. the event was simply awful and horrible. it rightly hit the headlines. also, we have been reporting all year on a stunning rise in gun sales in america. including on black friday. that one day.% 154,000 applications to buy a gun. >> the president has dropped hints that he will change his position on the right to bear arms in his second administration. having the epa regulate bullets
because bullets have led in them and let is a substance that congress has authorized the epa to regulate. stuart: this kind of feedback, awful as it is, enhances the argument if you did control guns, you would have less awful events. >> he makes the argument at a time where people are agreeing with you. this is a horrible event and we wish we could have stopped it. no one knows if taking the gun away from him would have stopped him. he would have used whatever means were available to do that. it sounds as though he was severely, mentally disturbed. >> bob costas used this tragic incident as an opportunity for himself to get the message out. >> that is another great issue. this is a network, the name of
which we are not even supposed to mention on air, they use a prime time slot with millions and millions, tens of millions of eyes, to promote gun control. stuart: but, it was during halftime of a contentious game involving the kansas city chiefs where the shootings had occurred. i am sorry, it was not the kansas city chiefs game. >> baby bob costas and other sportswriters can leave the punditry to pundits. stuart: speak to sports, is that what you are saying? this is what is appearing on our facebook page right now. he may want to check the actual facts on gun ownership and how the murder rate is in our country. as our citizens have become more
arms, it has changed. so, if someone uses a baseball bat in a crime of passion that drives to a bridge killing himself, should we ban all fats and bridges? gun control is a ludicrous idea. anyone can buy a gun outside of legal channels. followers on facebook, join in, please. all right. are some of the most charitable people in the world, that is us, we, americans, now not even money you donate is safe from taxation. my take on that is next. ♪
stuart: in the long run, we do need to cut back on carbon emissions. the way we are trying right now is just not working. we are essentially taking up these promises. we are sending all of our production to china and india. stuart: discussing our carbon tax. we say a carbon tax is coming. time for a market check. the dow jones industrials going absolutely nowhere.
13,030. however, facebook is now moving about $28 a share. >> less than $10 away from their ipo price in may. the great day for facebook is today. november was its best month ever. it is up in 13 of the past 30 trading days. by the end of the year, will facebook be added to the nasdaq 100. if that happens, that will create a nice pop. stuart: japan. it has one of the largest demographic disparities in the world. growing sharply. growing older population and a shrinking younger generation. the birthrate is that a record low. are we headed for the same sort of lost decades that japan has experienced in the last 30 years?
opinion piece on the washington post argues that the deduction for charitable donations is unfair. it favors their rich. cut back on the tax break you get when you give to charity. here is my take. keep it. as is. no change. my reasoning is clear. our society is enriched by venture by private charity. charity and the tax break that supports it works. a billionaire gets a more valuable break by giving to charity than ssmeone making say $50,000 a year. he says charitable deduction cost america well over $50 billion a year. the rest of us must make up that gap. there you have it.
this is the way the left sees it. we just are not taxing enough. it is not that we are spending too much. we must tax more. we must cut back on any breaks. for me, that is a problem number one. we have a spending ccisis. then consider the benefits of encouraging charitable giving. what is wrong with the moral or to as well? what is wrong with that? would we be better off if the government took over all charitable work? i do not know what he thinks about that. i think that is what many on the left believe. watch out. the atheists are coming on strong using the courts to press their case. they do not approve of your deductions on your contribution to your house of worship. i do hope that even as america
can i still ship a gift in time r christmas? yeah, sure you can. great. where's your gift? uh. whew. [ male aouncer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. i have obligations. cute tobligations, but obligatio.ing. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfoli find out why 9 out of 10 ilarge professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. stuart: we have been talking a lot about the forbes report
saying 11 states are in a financial spiral. one of the state that the top of the list is illinois. joining us now from the cme, that would be chicago, that would be illinois, is larry levin. what do you make of this? you live, i believe, in a state that is in a spiral because of these obligations. our position is that illinois will ask the feds for a bailout. >> i think that illinois very well may. all of the 11 on that list may ask for it. certainly, our state is trying to do the best that they can. they are in a tough situation. they spent more than they could, unfunded. over the interesting, chicago is as close as they have ever been
to bringing a casino. it looks like that is what is coming down. they are certainly trying to do things to make it easier. stuart: you have a business. you have a good business. >> you know, it does not make me happy. do not buy something, right here in chicago. rental buildings are going up like crazy. the real estate people would probably agree with you. it makes me uneasy, but i am not ready to move. i love chicago. i have been here my whole life. stuart: larry, thank you very much. i do not see a lot going off in the marketplace. while attention has perked up.
larry levin, thank you very much. now, this. japan, just terrible demographics. far more old people, far fewer babies being born. will we have the same thing happening here? for every 1000 women of childbearing age -- that is the lowest birth rate in u.s. history. joining us now is keith fitzgerald. first, i want to just talk about the japanese situation. japan has the most extreme demographics in society in recorded history. for all people, fewer babies.
>> they sell more adult diaper products than they do incident diaper products right now. stuart: is that true? >> yes, it is. stuart: is that one of the reasons why japan has had a 30 year standstill in their economy, if not a recession. >> yes. you can see it in italy. you can see it in japan. the reason for that is that the number of workers supporting the proportionate number of retirees to ross over time. there simply is not as much money being kicked into a system. stuart: japan has a far bigger debt than any european country and far bigger than the united states. i think that is true as a proportion of the gdp. >> when you add all the debt to
gather, the figure is far higher. in fact, it is closer to 500% of gdp. stuart: hold on, let's get back to america. we have a lower birthrate. the loss in american history. but don't we also have mass immigration, which makes up, i think, for a lower birthrate. our population still experience. we are nowhere near the japan issue, really. >> this is the beginning of another step that reinforces the fact that we are headed down the same path. japan has had eight failed fiscal stimulus programs. we have had three or four, depending on how you count them. at what point, do we stop in
washington and say we may have a fundamental problem here. the economic crisis does have a direct link to fertility. stuart: last one. i believe that every year on the emperor's birthday, he gives a little silver stock cup -- last time around, as i recall, he handed out 20,000 cops. is that accurate? >> i do not have the exact figure on that. my father-in-law, for example, is 87 years old and strong as an ox. anecdotally, i see that in my neighborhood when i walk every morning. stuart: does the society look old, as you walk around, is it just noticeable? >> no. you know, kids are very
delighted. it is encouraging. you hear the squeals and laughter from all the schoolyards around the neighborhood. that is getting quieter. stuart: this is just fascinating. i wish we had more time. we will do this again. this extreme demographics in japan and america may be going down the same road. i find that absolutely fascinating. this is demographics. >> yes, it is. stuart: you cannot turn it around like you can turn ideology around. come and see us again. timothy geithner says the ball is in the republican core. democrats want higher taxes. after the break, a former clinton advisor defends the democrat tax me position. ♪ [ male announcer ] this is steve.
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stuart: it seems like there is less interest in going to the stores. online sales topped $20 billion. that is up 15% compared to last year. twenty-nine days until we fall off the fiscal cliff. timothy geithner says the ball is in the republican report to compromise. >> i cannot promise that. that is a decision that lies in the hands of the republicans. if they recognize the reality that we cannot afford to extend those tax rates, we have a basis of an agreement. stuart: how was that for an
introduction. before we launch into your talking points, and i know you well, i want to mention this. the founder of cosco, as you know, he appeared at the democrat convention. big supporter of president obama. loves the tax the rich idea. he borrowed $3.5 billion imprisoned out to shareholders in the form of a special dividend this year. he walked with a check for $14 million. he pays and get $12 million cash. if the dividend was next year, he would have walked away with $8 million. by treating obama's tax the rich philosophy, this obama supporter got an extra $4 million. i say that is hypocrisy. will you join me in condemning the hypocrisy of the superrich?
[ laughter ] >> stuart, it is good to be here. i will have to look into that one a little more closely. i think we are getting closer to a deal before christmas. stuart: the bottom line is, i agree with you, by the way, i do not know about a deal before christmas, but i am sure that the president will insist on taxing the rich. it is written law. get out there. the rich will pay more money at the beginning of next year. i think we agree on that. >> that is what he campaigned on. stuart: now, if there is no agreement, the republicans will get the blame, won't they? they rejected this deal. this generous offer. >> there is a plan on the table.
it is the fiscal cliff. we will have very large tax increases for everybody. the president has proposed something that would force all of that. can the republicans offer publicly an alternative, either to the fiscal cliff or to what the president is offering. the president's plan was put on the table last week. it was not that well with president on. speaker boehner and others. stuart: i wonder, as an insider, among democrats, and that is what you are, simon, i want you to tell me, what plans does the president or any other democrats, have to reform social entitlement? >> first of all, if you remember well, stuart, mitt romney and the republicans beat up on president obama for the last three years for cutting medicare
at $716 billion. he has already showed he is willing to take a big bite out of a major entitlement program. stuart: hold on a second. i do remember it. that is not reform. that is not reforming the structure of entitlement programs. that is the issue. >> i think the focus has been on medicare. the attention now needs to be on medicare inside the aca. there were large structural reforms in the way healthcare was playing out. in fact, last year, we had a slower rate of growth and health care spending that we have had in quite a time. whether president has proposed is part of the current negotiations is another
$300 billion cut in medicare. stuart: that is a cut. you do understand, that what we really -- >> stuart, that just is not true. we have not seen them play out. certainly, we will have to be coming back every year. usually, through a committee process where people vote at the end of the day. the republicans decided to take another course around the debt ceiling. i do not agree with you. i think to say otherwise is unfair to the president. stuart: i will have the last
word. he is a hypocrite. let's not get into it now. you study up on that one, young simon. thank you very much. several states want longer school days. surprise, surprise, the unions are against it. that is next. ♪ only gaviscon® forms a protective barrier that helps block stomach acid from splashing up- relievi the pain quickly. try fast, long lasting gaviscon®. but i was worried theaccident... health care system relievi the pain quickly. spoke a language all its own with unitedhealthcare, i got he that fit my life. so i never missed a beat. that's health in numbers. unitedhealthcare. why they have a raise your rate cd. tonight our guest, thomas sargent. nobelaureate in economics, and one of the most cited economists in the world. professor sargent, can yotell me what cd rates will be in two years?
stuart: five states will add more hours to the school day and more days to this school year. hoping to get standardized tests. they will use state and federal funding to get the cost up. sandra, what do they want? >> they will have to work more hours. they will use this as leverage, naturally, for more pay. they will probably put a lot of conditions on this. in my opinion, stuart, this does not address the problem. we need to focus on the quality of the teachers in our schools. stuart: more time in the classroom is not enough to get standardized tests. >> they will be asked to work more in they will want more money. stuart: the states, they will, and with more money, won't they? >> they do not have it.
>> i was one of those kids who got caught reading novels under my desk because i got bored in school. i am not sure more time in the classroom will teach students more. it depends on how the time is being used. stuart: teachers who have to be, you know, they have to measure up. accountable. >> the reason we do not see that is because of the unions. they resist any type of merit pay. out of the question for them. we all know about incentives. why don't incentives work for the teachers? >> they said they have tried this in the past and it is not effective. stuart: i think we should do unionize the entire public system. the highlight reel is next. ♪
>> no highlight reel, but what would be the best investment vehicle, shall we say, from our company members today? starting with sandra, go. >> i'm with you. i think buying a home. if you can in this environment, record low interest rates, home values epressed from the recession. buy a house. don't look at the target. you won't make money in the savingsing thes. dividends taxed as regular income. buy a home, something you can use, live in, and sit on. stuart: no dividend to be taxed, and if it's up in value, you don't pay tax until you sell it. ten seconds for the best investment of 20 # 13? >> amazon, other online retailers. i spent black friday in my pajamas at home getting deals,