tv Varney Company FOX Business January 23, 2013 9:20am-11:00am EST
the radio in a spirited blond edition, number four, 2013, on the fox business network, "varney & company" and then at 11 a.m. it will be dagen mcdowell and connell mcshane. wyatt walks around the house singing this song from a group called florida georgia line. ♪ baby your song makes me wand to roll my windows down and cruise ♪ ♪ ♪ ♪
♪ ♪ imus in the morning ♪ >> hang on to your wallet, try to keep your mind from numbing up. davos is in full swing. good morning, everyone. yes, the annual gab fest is underway, the world's great mind meeting in the alps, grappling with the issues that you and i just can't understand. but i know exactly what they will come up with, a 14 trillion dollar plan to make a greener planet, that's already been
proposed. they will move on to taxing the rich some more and then defending the welfare state. in short, president obama's inaugural address will be echoed over there. he gave davos the blueprint and the high and mighty will adopt a collectivist mentality, but we will not. no elitism here, "varney & company" is about to begin. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ [ slap! ] [ male announcer ] your favorite foods fighting you?
>> watch out, big financial revelation coming, we don't focus much on earnings here, but apple, that's no ordinary company. if you have a mutual fund or an index fund you own a little bit of apple. it it has, by the way become what i'm calling a door stopper. the stock price holding right there around $500 a share. now, today it's expected to report its first drop in profit in a decade. it will make a lot of money, yes, but not as much as the year before and its slowest profit
growth since 2009. look at it now, it's actually moving up a little bit. four bucks higher, maybe. come that opening bell. now that we've taken care of the big business story of the morning, listen to this, japan's finance minister says that the country's oldest people should just quote, hurry up and die. that's what he said, saying that would relieve pressure on the state to pay the medical bills of the elderly. he's perfectly seriously. heaven forbid if you're forced to live on if you want to die. would i wake up feeling increasingly bad treatment was paid for by the government. the problem won't be solved unless you let them hurry up and die. >> he's apologized, and japan has the most extreme demographics in human history.
and almost a quarter of japan's people are 60 and over, that aging population, a serious drain on the company's economy. frequent "varney & company" guest summed up japan's predicament in an interesting way, listen to this. >> you can see anecdotally they sell more adult diaper products than infant. stuart: is that true? >> yes, it is. stuart: wow, indeed. that's the dire situation in japan. contrast that with the united states. our proportion of old people far, far lower than japan, and lower than europe, too. a big part of that is because of immigran immigrants. now this, the former head of the head of the city teacher's union, that was years ago, she is, however, randy weingarten, now the head of the federation of teachers which is a part of the afl-cio and joins us in the
next hour, and topic number one, the six-figure payout. we follow microsoft on this program, i own some of that stuff and we talked to an executive who had the ear of bill gates, he says microsoft chief steve ballmer has to go. also coming up, big news i should say from two names you know, google and ibm, we're following both of them at the opening bell. may, everybody, cheer up, we're closing in on a record high for the dow jones industrial average. look, if you have copd like me,
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morning, coming out almost at 4%. $203.64. and a couple of things, cloud computing, business analytic software. stuart: ibm is a dow stock and the dow is up. 50 points at opening bell. move on to google, more people clicking on the ads apparently good news for google. how far up is it, tell me? >> up 5% for google. let's take a look at google. certainly looking good. they had a rebound of the on-line advertising prices. they said total advertising revenue improved 19% in the fourth quarter and that was good news. right now, sitting at 737.66 looking good and the company strength right there for google. >> congratulations, nicole, brought us two blockbuster from the get-go, we like that, excellent stuff. now let's check on apple. where did that open? we've been talking for weeks about apple losing its cool. the report later on this afternoon. slower profit growth is expected and don't know what's going to
happen is expected. other things you're socialing with apple, none the lus it's opened higher, $510 a share. we like to use the term door-stopper stock on the show, no stock fits that better than microsoft. i should know that, i own a piece of it. look at the chart over the past ten years, yeah, not a good chart if you're a stock owner of that company. joining the company from seattle now, former microsoft senior vice-president, in his new book, he talks about why steve ballmer should step down as chief. he joins us now, welcome to the program. and right from the get-go you want steve ballmer to go. i want to know what you think was his biggest mistake in the year that he's been the chief? >> you know, i would say he needs to go. i say maybe has to go. and that, you know. stuart: and that's killing somebody gently, come on. >> yeah, this is not my decision
at the end it's microsoft board will decide that. stuart: what's he done wrong? >> but i really think that the company needs some kind of a leader which appears to the new mobile facebook generation. his numbers, when you look at it, but he is not really very popular with the youngsters, could i say that. stuart: not very popular with the youngsters. you were within microsoft, you were the senior vice-president. you had the ear of bill gates. you know how people feel within the company and you say that ballmer didn't have the support and popularity amongst younger people. are you therefore saying that microsoft's windows 8 and its application on the phone, the lumia phone, not been a success? >> you know, that's the very important thing to observe. steve ballmer has to make this
windows 8 product popular and what we're seeing so far, it isn't going as well as it could be. >> do you think it could go a lot better if a young are person were in charge, and more in touch with the young, younger people? >> i think so. and i believe that the whole issue here is really, they have a great idea. they have unified the interface, from the phone to the tablet to the pc and don't have to relearn. >> and apple cannot do that and i think it's very compelling and if this could be pulled off, i think that steve ballmer doesn't have to go. stuart: now, you were the senior vice-president within microsoft. i presume that you got a lot of microsoft stock when you left and you're still holding it. do you think the stock would go up significantly if ballmer walked away and a younger person
became in charge of the mobile stuff? >> it may be a little bit over an increase in the stock price, but in the end it always comes down to performance as we both know. and by the way, i own no stock in microsoft. i sold they will ten years ago and never touched them again. stuart: then, you, sir, are a very smart guy. i was the guy who bought them ten years ago and nothing's happened since. joachim kempin, we appreciate it, sir. >> thank you. stuart: how do we feel about ourselves, about our future? not that good. a new gallup poll shows only 39% of you and us are positive about the state of the country. this is the lowest reading on optimism since jimmy carter was in office. joining us now, who else, but kirsten powers from the daily
beast. >> feeling positive today. stuart: i'm wildly positive. and you listened to the president's speech you and i both want to restore prosperity and optimism to the united states and to do that, i think you and i agree we've got to have economic growth, we've got to have it. do you think that the president's policies as enunciated in that speech are going to give us 4 or 5% growth, do you think so? >> well, my crystal ball wasn't working totally perfectly this morning so i can't predict the future for you, but, look, i don't think he was that specific in that speech about what he's going to do. i know a lot of people feel he laid out this very wildly progressive liberal agenda. i didn't really see that. as you know, i'm still one of the few that's holding out hope that is going to take on entitlements and deal with some of our long-term issues. however. stuart: oh. >> didn't send a lot of signals in that speech to do that. stuart: he didn't. his signals why all about we're going to tax people some more,
we're going to tax the rich some more, we're not going to cut spending significantly. >> i didn't hear the taxing as much as i didn't hear anything about cutting spending and i think that-- >> i certainly heard the tax thing from senator schumer. he left no doubts. we want more revenue. this is an opportunity to bring in more revenue. >> yes. stuart: so taxes are going to go up, spending is really not going to be cut. i just don't see that. and the president is totally, he totally ignored the debt. i've got to tell you, kirsten, that is not a recipe for firm, strong economic growth. >> well, he did ignore the debt. i would say that i don't think inaugural speeches are usually a time to sort of ruminate about the problems in the country. george bush didn't talk about how he didn't find wmd's in his second inaugural address nor would anybody expect him to. and there there is concern with
t the democrats and on the right. and how that is in the short-term, you asked what kind of growth are we going to have? i don't know that does effect us in the short-term. the economy could turn around and it could turn around at that rate. that would be wonderful. i think 5% is probably more than what most people are expecting. stuart: i don't think -- look, one week from today we're going to get the big picture reading on economic growth and i am told relybly it will be down to 1% growth. 1 and small change maybe. that's going in the wrong direction. and the thought of higher taxes may drag us down some more. >> well, i don't know about-- i mean, i don't know about the tax issue, but i think that obviously 1% growth, 1% growth is not acceptable. but i also don't think if we don't hit 5%, i think that 5% seems overly optimistic considering where we started, you know, what we're coming out of. i think it's going be to be a long recovery. and-- >> i just want to finish it up because you know, you and i have
sparred for a long time now about where you stand within the democrats. i suspect that the president came out more to the left than you're comfortable with, am i right? >> no. i actually, it's funny, i felt like it was a very mainstream speech. now, if he -- you know, if in fact he's not going to do anything to tackle long-term entitlement spending and i think defense cuts as well, in the speech i think most of the things he raised were general issues the average american supports the only way he kind of got outside of that was gay rights, but i support gay rights. stuart: fair enough. we're a financial program, that's very true. and kirsten powers, we will spar again another day. >> have a good day. stuart: back to nicole, mcdonald's barely makes a profit thanks to the value menu. i choose from the value menu.
nicole: we're not surprised to hear it. they did see profit on the rise, but again, not a great quarter for them and you could see up just 1/10 of a percent, not a good move. stuart: a parfait and a senior coffee to go, a buck 50, not bad. and they're going to test a tofu burrito at some locations at chipotle. >> some people think that's yummy, i'm for the old school burrito, for the people who are vegetarians, vegans, maybe they'll love it and help chipotle to contain costs because meat costs have been cutting into the revenue and i won't yuck your yum for all of those who love tofu maybe hit chipotle. stuart: look at this, the dow is
up 52 points-- i'm sorry, 13,764. and the pipeline, environmentally friendly, a new route. this is the story, could the president reverse and say yes to the pipeline? we'll see. time is money, 30 seconds, here are three people in the news today. secretary of state hillary clinton just took responsibility for the attack of the-- on the u.s. consulate in benghazi, this is her long awaited congressional testimony concerning the attack that killed ambassador chris stevens and three other americans. israel policy ended today in a stunning deadlock and time for benjamin netanyahu to rally a coalition to keep his job. british prime minister david cameron promised a decisive referendum within five years.
on the european union. is there a chance the british people want to get out, yes, there is, but can't express it for five years. send your e-mails to firstname.lastname@example.org. seven early movers, here we go. starting strong, two stocks that charles featured back in november, how to make money with charles. here we go, energy efficient lighting maker gave an upbeat outlook, if you listened to charles in november you would have bought it then, it's now 40 bucks, up 6 today. more than expected robotic surgery company known as intuitive surgical. another charles recommendation that one, 563, it's up 45 today. disappointing profits what i call the democratic luxury company, cogent is down a lot. and disappointing forecast from the chip maker, amd. forecast not so hot $2 a share for that one of the software maker, ea, the stocks flat.
better than expected for the rail operator csx and that stock is flat. a big name you know, better than expected profits, ethan allen and that's up just a little bit, but the dow is up 55. a doctor at the center of a huge disability fraud scheme helping patients fake injuries. how do you catch someone like that? the man who investigates these cases and exposes the fraud. listen to how he does it. >> and so every couple of days somebody will move the car and we'll take a heavy garbage can and put it in front of the car in the morning and see if they come out to move the can to move the car. >> you've got it on videotape. >> back pain, there's no back pain if you're moving a garbage can. >> absolutely. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading.
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disability fraud. a doctor on long island new york pleading guilty to a big scheme where long island railroad workers pretended to be disabled so they could get extra benefits. the official complaint says the doctor recommended more than 700 employees for disability benefits, stretched over a decade. joining the company is a person with cpi investigations and sort of the man who tracks down them and exposes fraud. welcome back. >> thank you. stuart: now, this is a massive fraud. hundreds of people involved. how did it come to light? how did the investigators crack the case? >> they look for the big coincidences. you had 75%, i believe the number was 75% of the people who retired during that period went out at 50 years old. 50 and 55 and a number found for disability insurance. it was too much of a coincidence. the doctor himself was the doctor on 50% of the those cases, it's not a coincidence.
if not for that, somebody who went to the doctor that wasn't awarded the benefits you use that person to gain information what's going on. stuart: so a long island railroad worker becomes the age of 50, goes to the doctor and says, you know, i'm disabled, i want a disability pension. >> happened before they turned 50. this plan was put in place before they retired. so, they would go to this doctor prior to retirement and prior to becoming 50 years old and set up from there and they also had a facilitator that was the liaison between the two different agencies. and this facilitator helped fill out the paper work, prior to the employees retiring to put this whole thing in motion so they would retire at 50 years old in between the ages i believe, 50 and 55 and file to get the disability benefits from the federal government. stuart: disabilities benefits would be extra over on top of what they would get at
retirement. >> absolutely, absolutely. stuart: and those disability benefits are not taxed at state level. a huge advantage. >> right, right. stuart: did they pay the doctor for the disability statement. >> the doctor was paid and the facilitator was paid i believe cash, i believe $800 to $1200 the doctor received for the initial consultation when he initially started out the fraud plan and facilitator paid for her job. it was a nightmare. stuart: but a lot of money is involved here. >> a lot of money. stuart: what kind of disabilities did they claim, back pain or what? >> back pain, carpal tunnel and now in reading the report it hit home. i come from a long line of transportation workers and you know, my dad, my grandparents, they went out 50 years old and did it the right way, you know? >> so your father, and grandfather, they're railroad workers and they were legit guys and retired, lifetime, no disability none of that. they played the game straight.
>> played the game straight. stuart: you're one of the guys who goes after the fraudsters. i wouldn't want you casing me down. he's esean pinto, come back soon. time for the gold report, where are we this wednesday morning? 1692, very little changed for the price of gold as of now. how would the new york times cover the story if donald trump bought the paper? what? this story really is just too good to be true, isn't it? here comes the company, liz, charles, they're next. ♪ what are you doing?
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that. [laughter] all right, look, i think it's a pr stunt, i think it's a plan. charles: i don't know if it's a pr stunt, i think he would love to own the new york times. can you imagine the moving van, it wouldn't be the same paper. how about an ambulance, the transient strokes inside if you have donald trump buying the new york times. charles: a lot of rich people looking at buying the new york times. if it's cheap enough i'd throw my bid in. stuart: the keystone pipeline may still live thanks to the new plan for the governor of nebraska with a plan. and i say maybe a ray of hope for the pipeline. and randy wieingarten responds o criticism over the pay she received when she left a job. don't miss this.
>> is there a ray of hope for the keystone pipeline? that is. question. could bring employment to tens of thousands and bring canada's oil to america. there's a new route that's more environmentally freently. the ball is in the president's court. the new york post reported that the epa chief left administration because she believed the president was going to approve keystone of the.
a lot of speculation involved here. all the supporters have is a new route and political gossip, but if the president did approve the pipeline, it would be a landmark. it would be a very rare example of president obama reversing course. ♪ ♪ we are upbeat here, and the dow is, indeed, churning towards a record high. that would be an all-time record high. the big board shows the dow at 17368, 14164 is the all time high. we are getting close. here's our company on this upbeat day. elizabeth and charles annie coal is on the floor of the new york stock exchange. nicole, coach. i always called it democratic luxury, where middle america aspires to luxury.
it's down huge. >> down 15%. store sales dropped 2% for the holiday quarter, did not do well or see the demands in north america. that did not bode well for them, and the fact some of their rivals did cut it dramatically cutting into the sales as well. democratic luxury, whatever you want to call it, coach shareholders are crying in their nice leather hand bags today because it's not a good day for this particular stock. >> no, it's not. interesting economic indicator too because that's what middle america buys, aspires to real quality and luxury, and they are not buying. that's an indicator. nicole, thank you very much indeed. dow up 62 now. all right. new at ten, president obama made climate change the centerpiece, and now one of two days later, just one day later, the governor of nebraska approved a new route for the keystone pipeline and
sent it to the president. this revised route supposedly avoids a lot of the environmentally sensitive areas worrying people in the first place and puts the keystone pipeline back on the table with the ball back in president obama's court. all right, everybody. he laid out the argument for climate control legislation, but now there is, i think, a ray of hope for the keystone pipeline. am i totally out of whack here? >> there is a ray of hope for the pipeline if the president really does care about the economy, and if he realliments to have a manufacturing renaissance. the only way, the only way, two ways we are competitive with the rest of the world, can't beat them on price with labor, but energy, cheap energy and a cheap dollar. those are two things the president will get. >> liz? >> the secret reason why the environmentalists hate it. they are fighting it, quote, this is what they are saying, "if the keystone pipeline is
built cancels out the fight to increase auto mile fuel efficiency standards of victories we won under the first term of president obama." in other words, the 900,000 barrels of oil daily from keystone puts more into the earth's atmosphere, the carbon, the victory won on mileage efficiency. they are going to fight it to go to jail and arrested to fight it. >> that's just show business. all right. thanks very much. the elite, yes, the elite, the smartest people in the world, they are meeting at the world economic forum in davos, switzerland. they proposed a $14 trillion greening plan to combat climate change. $14 trillion. you want to have a go at this, liz? >> who pays for that? >> who? we are. are you kidding. >> it is corporate welfare for, like, ge and all of that. >> wait a minute. wait a minute. wait a minute. you're assuming that american companies would get some of the
money if, indeed, it was raised and spent? are you kidding me >> i think they would. >> that would be a transfer of money someplace else. >> it would be a transfer of money to the guys who make the technological advances for clean energy, and, listen, i'm waiting for the separation of business and state. we have separation of church and state; right? i mean, $14 trillion, that's $700 billion a year annually. that's a lot of money. will it stop climate change? >> no, of course not. >> right. >> charles? >> sphwressing comment on the website that this would be a way of democracyizing this for nine billion people going forward. this is beyond climate, but a way of leveling the praying field. the philosophy president obama has in america with respect to leveling the playing field, even if it hurts us economically, apply it to the rest of the world. >> it is the obama blue print, repeated in davos, and we take
from our rich people, and we give to them. >> absolutely. >> that's how you get prosperity. you know, messing around with $14 trillion. >> we distribution, but the bottom line, india and china is not going for it. while we play these games, they'll march on, and we'll be, like, guys, can you help us out? >> buddy, spare me a trillion. if you heard president obama's address, you heard about climate change more than any other single issue. there's two questions. will a carbon tax stop global warming, and, two, wouldn't fracking help ease our dependence on so-called dirty energy like coal and oil? fracking helps a lot, i think. we posed the questions to ask to an environmentalist later this hour at 10:35 this morning. joined by american federation of teachers' president, and we have
a lot to ask. i think this is your second appearance, welcome back. good to see you. >> i think so. the last time i was in new york, and now i'm in washington dc. >> it's frigider than up here. >> it may be. >> there's an issue that i have to put on the table from the top. >> just call me randi. >> i'm an englishman, i can't be informal on second meeting. all right, randi. >> thank you. >> a few years ago, you left your job, and you walked away with a check for $194,000 for unused vacation and sick pay in a time when teachers were laid off because of budget restraints. do you want to revisit that payment, and say if you were embarrassed by the size of that pay out? >> look, you know, what i did at that point was do what essentially everyone else who
had deferred compensation did, and that's because i pretty much never took a sick day for the 250 years that i was at the teachers union, but at the end of the day, what this is about is making sure what i have tried to do my entire life, is make sure that there is transparency, as you awe, and make sure that people get the conditions and the terms they need, and, you know, what we did -- >> one last one on the same subject -- >> let me just say what we did -- >> okay, go on. >> let me say what we did in new york while i was president of that great union, is we did a lot to increase the scorings of kids. we did a lot to make sure teachers were paid more. they got 40% more. we did a lot of work. >> most people just react to $194,000. by the way, that brought your total compensation, that year, to $600,000. now, i am told one more on this
subject, i am told that you moved out of new york city in the moment that money was paid to avoid the high tax rate in new york city. that at that time you were a tax refugee; is that correct? >> actually, that's not correct. what i did, frankly, is that i moved to the place i lived for a long time, moved out of new york city when i was the president of the teachers union in the national president because i spend a lot of time in washington, d.c., and i spent a lot of time in the place i live in long island and gladly pay every sing m bit of my taxes, and, also, when i was the president of both, i actually had my salary cut in half to make sure i did not double dip. you know, at the end of the day, i, you know, it is up to the members, and i think what
happens is we work really, really hard to ensure there's the voice of teachers. >> couple more issues, and this is what i want to talk about now. >> sure. >> with the argument over guns at the moment and school safety, it seems like there's a couple choices here. put guns in the hands of teachers, or we can put guns in the hands of professional security officers in all schools. do you favor either of those? >> look, i don't think that teachers nor do most americans and most of all, most teachers, we do not believe that teachers should be armed. >> okay. >> we think it is the most -- frankly, it is the most dangerous and ire spobl responsible proposal heard from the nr ark. at the issue about having schools, they should be safe. anyone up in newtown understands the traj sigh that has just taken place to the six kids and
teachers who attempted to protect children. >> armed security guards in schools, in favor of that? >> we agree with the president that that should be a community decision. when you have places like in new york city where armed security guards actually could be more problematic than could be potentially good, the community should make that decision. in a place like newtown where the public wants to have that police presence, we should have that police presence, but there's a -- >> i think the fact of what you're saying, go to school in the bronx, there's detectors, security guards, an amazing force that detours anyone coming in with a weapon. i'm not sure why armed guards in new york city are problematic or anywhere in the country. how ironic, of course, schools in the bronx are probably safer than the schools in suburban america. >> let me put it this way.
the metal detectors in the bronx schools would not stop a guy like lanza. what he did was took guns illegally from his mother. he had a large magazine to shoot ten bullets a second, and he shot himself into the school. we have a situation in columbine where there was an armed guard, and it didn't stop the tragedy there. bottom line is that communities should make the decision about whether to have the police deterrent, but they could decide, as the president said, about having more guidance counselors or mental health workers, but why not also do the things we need to do about gun violence? get -- try to ban some of these large scale ammunitions, do the background checks that we need
to do. >> i have to move on because i got limited time. the l.a. teachers union agrees to new teacher evaluations using student test scores, course completion, and so they have agreed to teach evaluation, which in the past, your union has been opposed to. the l.a. teachers agreed to this. >> right. once again -- >> is it going national? >> again, just like some of the other so-called facts you had in the beginning. >> come on, wait a second, where at the beginning of the interview where my facting were wrong. tell me. >> about me moving out of new york city. i paid every single bit of the taxes. >> that was a public report. that was a published report. >> actually, it was wrong. the publication was wrong. >> was i wrong about the $194,000 check you got lump sum for unused sick pay and vacation
days. was i wrong? >> yes. it was over the course of several years that i received that. >> it was not a lump sum check? that was the total you received? >> not a lump sum check. >> again, quoting a published report. >> i understand. my point is -- >> real fast, teachers evaluations, go. >> the teacher evaluations all throughout the country, teachers have been saying let's have different evaluation processes. in l.a. we've said that. in florida, we have done that. in baltimore we've done that. all throughout new york state, 95% of the districts in new york state have just agreed to different evaluation processes. what we're saying is we want evaluation processes that are about improving student performance and improving our feedback. we're trying different things. the one in l.a. is a really good model because it has a lot of different kind of factors to it. >> sorry, we're out of time,
appreciate you being with us, come back again, will you? >> sure. >> thanks so much. see you later. golf rivals coming together on taxes. tiger woods says he agrees with mickelson. tiger lives in florida, a no income state. shouldn't phil be allowed to move wherever he wants? that story is next with the judge.
guaranteed, but that's all the good news. some expect it will show the first drop in profits in a decade, and some expect to see the slowest rate of growth in profit since 2009. we have been calling the stock a doorstopper hanging around $500 a share. it's $512 right now up seven bucks. watch out for the earnings. im moved to software and reported record profits. the company brought in $5.6 billion in 13 weeks, and stock of ibm soaring, $11 higher at 207. google made a ton of money from the click of your mouse, a profit of $2.8 billion. advertisers are paying less per click, but overall, ad clicks click, but overall, ad clicks are up, google soaring $41, and ut, the judge is next. i need to rethink the core of my portfolio. what i really need is sleep.
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it feels like it can escape gravity. ♪ the 2013 c-class coupe. ♪ starting at $37,800. ♪ >> break k news for the associated press fresh off the interview with randi. union membership as a proportion of the work force falling and falling sharply. only 11% of american workers are now unionized, and most of them are in government work occupations. lowest since the 1930s. report says teacher unions hit hard. look at this. rivals agreeing on taxes. tiger woods agreeing with phil mickelson in an interview woods saying he moved to florida from california back in 1996 because that state, florida, has lower
tax rates, and, in fact, it doesn't tax income at a state level. to compare, california has a 13% rate. florida has no state income tax. earlier this week, mickelson hinted he might leave california because of higher taxes before backtracking from the comments facing criticism from the left. now it's time to bring in the judge about the mobility of people's freedom to be mobile. i say that people were trying to stop phil mickelson from exercising his freedom of movement. go. >> oh, i think you're correct. i actually think they are being kind because the people trying to stop him are the tax collectors, the people who benefit from the taxes collected by california and the manner in which it's spent. they don't want him to leave. they want him there as a fair target for the tax collectors in california. >> they can't stop him. >> no. no. here's what they can do. in fact, they have done this to you and me and anybody who has a
principle residence in the state of new jersey and owns real estate in new jersey. were we to sell that real estate and move to a another state, we have to pay an extra tax. there's a tax for tax to the sale of the property. >> wait, what, this is a revelation to me. i live in new jersey. >> that's why i mentioned it. we both live there and have real estate there. >> these are my golden years. if i want to go down to florida, i sell the estate in new jersey, whatever it is, and they say i got to pay a tax? >> yeah, your lawyer will inform you of this because your lawyer has a legal and ethical obligation to collect the tax from you, the state made a tax collector -- how does my lawyer know i'm going to florida. >> he has to ask you questions about where are you going to and what's the principle place of residence. i don't know if california has this. the guess is they do because the
more progressive states do. the only one i know of for sure is new jersey. think about this. the supreme court has ruled with near unanimity and utter consistency that the right to move state to state and the right to leave the united states of america is a fundamental liberty akin to freedom of thought, freedom of expression, freedom of worship, self-defense, privacy, those -- that highest category of rights we have. >> therefore, an exit tax, wherever it applies -- >> profoundly unconstitutional. >> why is it not found unconstitutional? >> it's not been challenged yet, and there's no legal opinion. eventually, there will be. >> you're a judge in the state of new jersey, and you were. >> a case like this had come before me, i would have invalidated it, but it didn't come before me because the tax didn't exist when i was on the bench. look, i understand phil mickelson, great golfer, has
fans all across the political spectrum, and like those of us who rely on public approval for our work, tv ratings, golfing fans, you don't want to unnecessarily offend a portion of the base, but what he said is true. not that the taxes are too high, they are outrageously high. it's an opinion we can have. he has a right to address it. reagan said walking with your feet. go to another state with the tax environment being compatible. he has the right to do that. former president sarcozy has the right to do that. it's like bight going to canada. it would be unthinkable he can do it, but he has the right to do it, and the government can't stop him. >> judge, you get it right, you really do. >> to make it worse, the senator from california, boxer, proposed legislation that would bar you from leaving the united states if you have not yet paid your taxes, not permanently leaving, but even going on a trip.
>> even a trip? >> even on a trip in which you intend to return with assets remaining in the u.s.. this is not law or made it to the floor. >> she proposes it and has other restrictions in mind. who wouldn't want to leave california? sorry. >> my eyes have been opened. thank you, judge. >> my pleasure. >> i didn't know that. wish i didn't know now. stop it. listen to this. my take on the professor who wrote the article telling phil mickelson to shut up and pay up. that's next. this is $100,000. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money?
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>> the fact remains that japan has thee most demographics recorded in human history and can't record the rapidly aging population. almost a quarter of japan's people are 60 and older. that aging population, a serious drain on the country's economy. we brought you that story now last hour, hurry up and die. we play that again because we want the company's reaction. that's what the minister said in japan, hurry up and die. we can't afford you. that's astonishing. >> this guy, himself, is 72 years old. >> that's not old in japan. >> that's the irony of the
story. here's a young whipper snapper, but it gets back to when people talked about death panels in america. beyond the morbid aspect of it, when you have a society that promises a lot of things to a lot of people and people live longer longer, we're going to be in a situation like that already, maybe as a result of obamacare we have death panels. >> there's a worldwide demographic cliff going on, and the entitlement state has to notice it, and the governments in the developed world have to figure out how it to reign it in. >> it's driving us over the cliff. >> the finance minister asked them to hurry up and die. >> not about himself though rvetion right? >> all right. people spending a lot of time on facebook could be prone it envy and unhappiness, sadness. why? dr. keith joining us, an outspoken critic of the prevalence of the social media, an answer to the questions at
10:45 today. lip berman, professor of public policy at syracuse university, and when phil mickelson complained about the taxes, the professor mocked him. we booked the professor on the show. he canceled. he backed out. here's my take. the professor is an intellectual coward. he refuses to put the views to a rigorous debate. that's odd coming from an academic. i think he's hiding. he knows he insulted all the people who work hard and use their drive and ambition to make serious money. he is scared to stand up to an intellectual challenge. backtracked for a moment, please. fill mickelson says he pays a tax rate of 63% as a california resident. he's been hit with tax hikes from the feds, from obamacare, and from governor brown. he suggested, suggested he might move. in come professor berman to stop
whining and be thankful he makes more than most calling him lucky, lucky. to us, that is read meat. we don't think successful people are lucky. we don't think 63% is a fair share. we booked the professor to be a guest on the show, and then he canceled. why? because he has to, quote, focus on what i get paid to do. what's that, professor? indoctrinate the students with socialism? you see, you will not get to see a lively discussion. the professor stays in the tower and will not venture out into the real world of free speech. he is an intellectual coward. ♪
[ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. >> the prius the thee best selling car? in california last year. the prices back up, but the golden state has a new trend in hybrids, however, will a per mile tax be coming california's way? interesting question. is driving a prius imposing a carbon tax really our answer to making the u.s. energy independent? the answer to global warming? is it? there's got to be a better way. what about fracking?
joining us now is the executive director of the climate science coalition of america. steve, a pleasure. welcome back. good to see you again. >> good morning, great to be here. >> of all the proposals, and in particular, one to combat climate change, regardless of whether we like the tax or not, would it work? would it help? tell us. >> well, the carbon tax has been proposed by some, a tax on carbon dioxide, a tax on hot air, proposed by some to be a way to close the budget deficit, and, second, to solve the problem of global warming, but it won't do either, and it's a tax on refineries, industry, and utilities and will slow the u.s. economy rate, the price of gasoline, goods, food, electricity, and so it will probably reduce federal revenues, not helping with the budget deficit.
>> that's interesting because it's billed as we're doing something, showing the world we're tackling this carbon emissions problem. we are doing something. it's also billed as a big revenue raiser for the government. i think that's the motivation. now, in the long run, you could say it reduces government revenues because it's slowing the economy, but initially, it would be a gusher of money, now, wouldn't it? >> well, that's very attractive. more than a hundred billion dollars a year, but the republicans in the house have already passed a resolution before a bill was grue deuce -- introduced saying it's a bad idea. >> are you writing it off? it wouldn't work, is that what you are saying, steve? >> i don't know, i think it's going to raise, but it's not going to do anything about the climate. the theory of global warming says greenhouse gases in the atmosphere capture radiation going in space to warm the surface of the planet, but it breaks down because water
strapper is the largest greenhouse gas, and natural factors cause 99% of the greenhouse effect. manmade emissions only cause one part in 100. if we completely eliminate emissions, we do not effect global temperatures at all. >> i'm sorry, i thought the science was in? we humans had been proven to be responsible, but i digress. one more for you real fast. >> yep. >> it is my opinion, and tell me if i'm right or wrong, widespread use of fracking to extract the natural gas we got under america would do more to reduce carbon emissions than almost any other thing that we could do short term, am i right in >> well, it -- we have seen a decline in u.s. emissions over the last few years because utilities burn natural gas rather than coal, but the real big issue is that this is a tremendous boom for theist economy. natural gas production is up 25% in the last ten years, and now
we use fracking to remove tight oil from shale, oil, crude oil production grew 14% last year, now predicted the u.s. will wile the biggest crude oil producer by the year 2020. bp says that the u.s. will be energy self-sufficient by the year 2030, and people compared fracking to the fall of the berlin wall of politics. it's a boom for the economy. >> that assumes we go ahead with fracking on a wider scale already, and the obama administration did not give the go ahead yet. will we go ahead vigorously with fracking for natural gas and oil, will we? >> i think we will, but the environmental groups and epa are aiming at fracking. it is not really an environmental problem. the two issues are leaking the gas from the vertical shaft and waste water. state regulations cover those
very, very well, and more than 500,000 wells have been fracked in the last three decades, and the examples of water contamination is counted on one hand with fingers remaining. it's not a huge environmental issue. >> steve, thank you jr. joining us and straightening us out. >> any time. >> back to the markets. joining the company now from chicago is larry levin with trading advantage. larry, we started out this morning with the dow climbing to within, what, 400 points of the all-time record high, we're still up 47. do you think we're going to go straight into record territory? move above 14,000, whatever the old high was. are we going to get there? >> yeah, i think we will. in fact, the actually high was 14198. we settled lower than that. that was a number number of yea, but it's within rates. i don't think you see it this week, that would be a 400 point
move in the dow. we rallied. there's going to be a pull back and then reaching up to that level. look for it in the next two to three weeks. in play in the next two months, that's for sure. >> i read an article in the "wall street journal" today that said the professional money managers are saying the retail crowd, that's people like me, syringes, -- me, individuals, coming back into stocks. have you seen that? >> absolutely, every time we're near a high. it's talked about, you and i are talking about it, it's noted, and they jump in. it's not the best thing to do or for your viewers just to jump in now. look for pull backs. don't buy the highs, but you see this situation. people buy the highs when we're at the top because a lot, you know, a lot of play, and every one jumps in. >> thank you very much indeed. charles, that's what you have been saying. >> i disagree is when they tell people to wait for a dip.
>> okay, but, he's a trader. >> i know, i know, i'm just saying the audience is not traders, and they wait for dips in five years, and they didn't get the dip they wanted. if you want to be in the market, be in the market. by the way, 40% of investors own one stock. that's not invested. buy the market, a lot of sphoks, diversify, add to it. >> 40 #% of investors by one stock. >> in the market, riding that one. >> probably apple. >> like a horse at the track, you know? >> how much do you use facebook? how does it make you feel about your own life? negative? does it make you feel sad? we're all about the social networks with dr. keith next. ♪
>> take a look at this, ethan allen furniture company, better than expected, and the retailers, like many otherrings, did not point out the effects of hurricane sandy. orders were higher despite sandy. the stock, well, now, it's flat. the organic food company, making those cheddar bunnies you give your kids, or some give them to their kids for a snack, i don't.
started a voluntary recall because of possible contaminated food. that's not organic. making time to leave france to avoid the 75% tax rate. he would make the move to set up a billion dollar investment fund in london. how about that? that's like bill clinton going to canada. dr. keith next. and i honestly didn't think i would ever quit. [ male announcer ] along with support, chantix is proven to help people quit smoking. it reduces the urge to smoke. it put me at ease that you could smoke on the first week. [ male announcer ] some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. if you notice any of these stop taking chantix and call your doctor right away. tell your doctor about any history of depression or other mental health problems, which could get worse while taking chantix. don't take chantix if you've had a serious allergic
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>> facebook may be causing you sadness in your life, and ewe didn't even know it. a new study out of germany says that, well, they invented the word "angst" i believe, looking at other people's happy moments could make you envious and causing you to hate your own life. dr. keith is here with us, and this is a serious subject; right? >> absolutely. >> how is it possible that if i use facebook it makes me sad, go. >> the researchers asked over 300 respondents what they think people experience when they look at facebook. one in three people said envy, jealousy, and they said that's the most recent time they can remember experiencing those feelings was while looking at facebook. rationally speaking, if you think about what facebook is, there are many reality tv versions of people's lives, and these people have combed through thousands of photos to post the
ones that look the most attractive of themselves having fun. nobody has problems on facebook. they are blocking unwanted feedback. it's a recipe not only for other people to feel bad, but for people to be tremendously narcissistic because they are getting only positive feedback and pretending, by the way, that they have hundreds of thousands of, quote, friends. >> you don't like social networks, do you? you think there's something fundamentally wrong with the way we use them, and it's changing us, individuals, and society, you think that, don't you? >> removing people from reality such that they can't cope with their problems, and they will be everyone tent in coping with the problems our country and culture face. it's a virtual reality that's not real. it's no different than any other drug. it takes you away from your real feelings and your real experiences and coaxes you into a narcissistic panic that is going to be the same as the high on coke.
>> there is nothing you can do about it. >> there is. there actually are things you can do. number one, you can try, it'll be hard, but you can dry to limit your kids' exposure, delay it, or give voice to the fact this is bad for you. even dealing with smoking across so many millions and millions of people, the fact people said, look, it's bad for you, may have set the stage for people to say, you know, i'm going to quit. >> i'm the father of six, you think i should tell my children, hey, this may be bad for you. >> not maybe. this is a toxic pathological vice that you are participating in. the worst part of it is i do it too. it will hurt you for sure. it will hurt you. what are other things you can do? get them outside. let them play catch and have to really catch the ball. not -- they can't pretend. get a pet. a pet will love you if you're nice to it, and if you train, it did doesn't go to the bathroom in the stuff.
real stuff is the antedote to this nonsense. >> pr is for how good your life is, but just tell the viewers what is the typical teenager going to look like on facebook when he walks into a job opportunity? >> well, when you walk into a job opportunity, you look like a narcissist; right? the bottom line is only ten years ago, if you posted hundreds of pictures of yourself, you are called crazy; right? people -- >> everybody's doing it, we're all narcissists, and the potential employer has nothing to go on. >> it's very tough to pretend that you're a balanced, serious person if you're posting foe tees -- pictures of yourself drinking in short shorts. the bigger problem is what it sets you up for are fictions. you don't have hundreds of friends. you don't have thousands. it's not right to post hundreds of thousands of pictures of yourself. nobody cares. the fact you think, not you, but a person thinks it is okay, that
means they are all the way down the road already to being high. >> good stuff. why don't you see you more often on the program? >> i'm busy on facebook and twitter, and i can't do the real stuff. >> we thank you very much. >> you seem to have a great life on facebook. >> i don't have a facebook page. the show does. >> oh, by the way, we got to go, but watch -- look at our facebook page today, because you got to see it. facebook, everybody. back in a moment. it's good, it's good. you got to see it. >> it's bad! >> no, it's good, it's good.
>> if you're trying to take amtrack from new york city to the newark airport, there's a problem. service is down affecting a lot of travelers, blee me. okay, service down. we don't do a lot of ceo interviews, but we have an exception. the guest's company is booms, yes, booming because of obamacare. joining the company is the chief at medical equipment. welcome, good to see you. >> thank you for having me. >> what do you do fast that's booming because of obamacare? >> we make the connection between the parties and the
doctors and the insurance companies and provide services to solve the problem. it's the number one -- >> oh, the ser rye sus business. what's that got to do with obamacare? >> it is covered. we get more and more parties treated as we speak. >> you're the middle guy here; right? >> no, we're not. >> no? >> we're a medical device company, but we went to the next step which is how do we get the patient, make them now there's a solution out there for them to get a cost efficient clinical solution. >> obamacare, how does that come in? >> more patients, opens up the doors. we provide solutions. we are global health care. >> get the commercial for the company, you're the ceo of photo medics. i want to know this. obama care comes along, how much does your business expand? doubling, tripling, what are you doing?
g we grew four times in four years. >> 400%? >> 400%. >> and what with obamacare in 2014, then what? >> we'll get more patients. >> triple, double, what are you going to do? >> we can't talk about that. we're a public company. >> okay. >> we can't project. >> okay, i gave you a commercial. [laughter] don't you forget it. i want you to remember that. okay. back after this, everybody.