Washington bridge. He is expected to address the recent candle as well as plans to extend the Current School day. He is going to want to try to change the conversation. This is not just a new york and new jersey issue paid up when he was delivering his rest conference last week, every tv in our office in San Francisco was on. Mark zuckerberg has had fundraisers at Chris Christies house. He doesnt do fundraisers for anybody. He was not try to get support across the aisle, he is try to Chris Christie had a town hall at the facebook headquarters. It is interesting to see what will happen today, and see if a change of direction can happen. Former governor asked of new york with us. What was your Immediate Reaction . This is impossible. How could this happen . How good bridge lanes be shot for political reasons, and tens of thousands of people not just inconvenience, but put in jeopardy . As stunned as anybody else. Good he really have had no knowledge of it . We dont know what happened. He said he did not know about this, that this was people on his staff obligingly who lied to him. Abuse of hideous government power. It is important that people continue to look into it, to hold those accountable, and make sure that Something Like this does not happen again. This relates to a Port Authority question. Should there be a political appointee in charge of an operational role . I talked to a couple of my Port Authority directors and ask them was this would this possibly have happened with us . They said of course not because we have a change of command. Chain of command, and no one for authority employee can order a lane closure. How they could do this without the executive director or who condemned it as soon as he found out, is uncomfortable incomprehensible. To existas supposed outside of politics, and look at where it has gone. Theres no Government Organization that does not somehow get involved with politics. The Port Authority is nearly difficult to run because it is two states. It is equal representation from both states, and they have competing interests. New jersey was more for new work airport when we want more for kennedy airport. It was difficult the 12 years that my people read it but we had our battles with new jersey, but we managed to get things done, move them forward, find common ground. Never have any road operations one political appointee could run off on their own and order something as dramatic as shedding the lanes for four days. Two sides working together does not seem to be part of anyones agenda. Does this mean that we need to change the way the Port Authority works . We need to look as whether a weist date authority whether a bistate authority is the way to go. It is going to be hard to dismantle, i do not know if you want to do that. So much of those things that the Port Authority runs like the George Washington bridge, like the Lincoln Hollen told a tunnel, the go between two states. So who will be responsible . It ran in a way were both states were able to Work Together, and hopefully that will continue. We are waiting for Chris Christie to make his state of the state remarks. Roger during monitoring the reports from the capital, a reporter. Tell us what we have. Hit on it you guys early. He will mention what happened with the George Washington bridge, but that will hardly be the focus. The primary focus will be bipartisanship. The best part of the last four years is that we Work Together on things. This is interesting because he is not only trying to shift the conversation little bit, he was to look at what the published what they a cobblestone the last thats what they accomplished over the last or use, but it underlines how big things are from november of 20 o now. Itow. Instead, that opportunity is an effort right now to recover from a not to use this as a springboard forward. It will be very interesting, payton to do how much he is willing to give to the bridge issue and how hard he tries to focus on bipartisanship even at as the democrats are gearing up major investigations into him over this issue. Lets say he knows nothing. How much is his image damaged . Those that came out aggressively last week they came out saying this is a onceina lifetime leader, we should support him no more now. Or does this give democrats an opportunity to come after him so hard his image will be irreparably damaged . I think he is still someone who is a very formidable National Candidate among who republicans and democrats and independents should continue to look at. He has been a successful republican governor in a democratic state, that is not an easy thing to do. He had to go provide some things. Does the diminishing, hurt him, diminish him,it or hurt him, sure. Knewt whether or not he about this one particular issue, is this more about him setting the tone . Was ok. G like this did he set that tone, or was this truly a rogue operation . If this is the tone of that administration, and has been a waiver for years, that is going to be a problem. But we do not know that. If the governor denied that at his press conference, im no reason to doubt that. New jersey is a tough state. I have a question for you. Quiet frustration that they really did not take much of a shot at Chris Christie during the 2013 election. They assumed that race was gone. Do you think there is a chance peoplepol pot that know that they missed an opportunity are going to go all in . Freak to seize this moment to take him off of where his high horse was . Whether or not this bridge occurred, we are beyond the 12,013 2030 2013 elections. You take 21st century. When i think about what it is like for politicians today, when you were the governor of new york, did you say that the media has a lot more power would you say that the media has so much more power . Fore are some opportunities the media to attack these politicians. Is it tougher than ever . We have been praying for tarnishing his image brained for tarnishing his image. By the end of the day, you had to get your story out. Left, you had a two or three hour window. Now you have a two or three minute window to respond to this and it makes it much more immediate and much more difficult. You want to have time to reflect the way you want to have time to intelligently gather the facts. Buttont have to push the and respond as best you can go as quickly as you can. Is he going to lose friends . Is Mark Zuckerberg going to say i am not a political concert politicalultant consultant. You have made a case as why is it is in some peoples interest to support you. There are those that may or may not be affected by this is it is too soon for us to know. We do not know at this point. Investigations are ongoing, lets see what happens. Start over,re to would you want to be in Politics Today . Absolutely. It is an incredible honor, to have the ability to lead a state, in my case, a state in a group and and i love him and i felt that i owed so much. Decisions, hopefully positive decisions, affecting 20 Million Peoples lives. It is a privilege, in honor, and i would be honored again. The gridlock in washington, the lack of bipartisanship, how does that make you feel . It is awful, absolutely awful. It is all about the election and bipartisanship. You lose sight of why you why front office ran for office. I remember sitting down with republicans in the senate, and they were very aggressively against my agenda because of stepped on the toes of the Interest Groups that supported them. I remember taking that to dinner at the mansion and saying this is the right thing to do. If the republican senators said why should we do this, it is going to cost us allies. My answer was simple, was that right you ran for is that why you ran for office, to get elected . Or did you get elected for the people . I think most of them would be forced to think. Idealist. If you said, is that what you read for office, they would be caused to pause to think. Even if i cannot serve 40 years in a row in congress. Not justnow it is about republican the democrats but is about the future of the Republican Party itself. The tea party has caused a great divide in your own party. Futureworry about the of the Republican Party . Articles read so many about the death of the Republican Party, it is like mark twain. He was alive, and kept living. Reflected a grass roots reaction to the overreaching of governor government when they ran through obamacare. The people rightfully rose up and said this is not the type of government we want. There is an overwhelming majority of people that think that the government is too big, too dictatorial, and that is the essence of the message of the tea party. That should be the essence of the message of the Republican Party. If that is the case, i think we have a very bright future. We want more of this. It we need but we need to take a quick break. We will be back with more bring it tot, and you live in Chris Christie takes the podium. When Chris Christie takes the podium. I am taking you right now to trenton, new jersey for the state of the state work governor Chris Christie is taking the podium. [applause] shaking hands on both sides of the aisle, literally. That is one of the things he was most known for last year. Of wreckagefront from Hurricane Sandy with the president. What are you expecting here . I am expecting a great outreach to bipartisan is thetors i think that theme of Chris Christie this year. Theory, you agree, in saying that if he could get this behind him, he could be the one political reader that could but all of the garbage aside and move forward . He could be one of the political leaders to do this, he is not the only one. This is a country of hundred Million People 300 Million People. That can puters together the right ideas and principles to leave the country. First he is one of them Chris Christie is one of them. Again we are watching Chris Christie taking the podium in trenton, shaking hands down the aisle, giving hugs rated this man has been working overtime. He said it was the worst week of his life last week. [applause] thank you very much. [applause] thank you very much. Thank you. Thank you very much. Thank you. You. Thank you. Thank you very much about happy new year much, happy new year. Governor, mr. Speaker, congratulations, mr. President , members of the state legislature of a friend, and fellow new jersey and jer sians. Thisast week has tested administration. Mistakes were made, and as a result we let down the people we were instructed to serve. I know our citizens deserve better, much better. , and iveovernor ultimately responsible for all that happens on my watch, both good, and bad. Without a doubt, we will cooperate with all appropriate inquiries to ensure that this breach of trust is not happen again. I also went to assure the people of new jersey today that what has occurred does not define us, or our state. This administration, and this legislature, will not allow the work that needs to be done to improve the people plus lives of new jersey to be delayed for any reason. Lives of new jersey to be delayed for any reason. [applause] i am the leader of the state, and its people. And i stand here today proud to be both. [applause] but also, those of you who know me know i am always determined to do better. Now, i come before you once again for my fourth time, to report to you on the state of our state, and the good news is that today, the state of our state is good and it is getting better. [applause] remember that four years ago right now, we were in the throes of an economic crisis. Today, our Unemployment Rate is 7. 8 , that is the lowest in five years. [applause] four years ago we were losing have gainedwe 70,000 jobs in 2013 alone, and a total of 156,000 in the last four years. [applause] four years ago wealth and jobs were leaving the state, today personal income for new jersey chrisor new jersey christie of new jersey opening his state of the state strong. If you want to keep watching this, you can keep watching this app. R Bloomberg Cap what do you think of that opener . What was very strong, and everyone wanted to hear. You cannot start off by talking about taxes or schools with the biggest question is what happened, and what is going to happen . The governor addressed it, he did not get into any details when you talk about the future, which you should be talking about. He just said that the investigation will continue, and we will cooperate. I think that is the right approach. Misdemeanor also seemed his demeanor also seemed more humble. His persona, his body language. Has been called both refreshing and a bully. It is important to the way we perceive and as americans him as americans. Has beend that he humbled, or humiliated, and that is going to have an impact, no question about it. It is going to have a positive impact. The department of justice has gone after jv diamond because of his hubris, his arrogance. So many bigwigs here in new york city supporting him, would you have a moment in time when you are forced to become humble, and that help you in terms of Approval Rating . I think it can. Itll do not want to see air good politicians, they think that all editions are trying to tell them how to live their lives, and they think they know better than the average person does. And they are wrong, so a little humility is a good thing. And congressmen want to be in office for 40 years, you had a tone in your voice, do you think there should be term limits . Things are the worst about get elected to washington is what you get there, you want to stay there. The first week i was in the somethingmbly, i said stupid, and the guy next to me said that if you stay and keep your head down and you could stay here forever. And i had to ask if that is what i wanted. Number one, you neglected, priority number two being in the majority, priority number three doing right by the people, that is the wrong priorities. Concept of athe Political Class as our rulers, and then the public very yet, that is the way it is. Watching a few months ago, and she did an analysis of 12 u. S. Senators from both punters that parties from both parties. Everyone was working as a lobbyist or a consultant, or a Public Affairs person. We have a prominent Political Class, whether they are in Public Office or leave Public Office, they state what you did, and that is not the way it is supposed to work. What should they do . They should go home. Is that what you did . I live five minutes from in the grew, and i live house i lived in when i got elected. Youre going to getting job bank account love Million Dollars a year if you lose or retire because people are going to want your ability to influence those still there. That is not the way government should function. The hour, 26 past that means it is time for bloomberg to take you on the markets. We are going to send you to julie hyman. We have markets rallying today, if you look at the stock market. Shares are rebounding from this he declined yesterday. Almost recouping all of yesterdays decline the which is the biggest since november. Today,sales coming out and the fed officials coming out saying the economy is on good footing and the paper is going as scheduled a per is going as scheduled taper is going as scheduled. Today. Otors spiked pushing full year sales beyond the target. Welcome back to street smart, we are about dirty minutes from the closing bell. Im stephanie ruhle. We are here with former governor of new york, so we would like to play a little Word Association game with you. This is scary, but i will try. Tells what comes to rye and to mind. Marco rubio . Bright, talented, terrific. Young. Ous potential, you want more . Much, a bright, articulate, rising star. That countryucky is lucky to have them as a senator. What about rand paul . I think when he raises questions about and as a spine, i think that is a very good thing and a valuable thing. I would say nice things about everybody. 2016, Hillary Clinton . She and i work wearing worked very well together when she was a senator and i was the governor. With how wellased we Work Together. I do not expect that i will support her 2016. Any chance she is not the nominee . If you asked that in 2008, everyone wouldve said she was going to be. I think theres a good chance. A challenger from the left that would go after her, i think that is what rock obama did successfully barack obama did successfully. Jamie dimon . He is a terrific banker, and a target right now why he is, i cannot tell you, but jpmorgan is a great new york avenue. If new york company. Is it a perfect company, no. But i find it very sad when a great bank, a great u. S. Bank like jpmorgan based in new york, is running off workers, not creating the opportunity for new yorkers and americans that we want to see. Is there a way to change the populace opinion of banking . Was not was if it for bankers lending to Small Businesses and americans when many could not live the american dream. I think the americans like that, but what they do not like was the bailout to the fact that be could lose money, and made whole by the federal government. There has to be risk, reward. When in your Major Company loses money can be cannot have the federal government say they are too big to fail. It is not about banking, it is that theyerception have great upside if they can make money, and if they lose money, they are going to be bailed out. That is the perception and the reality we have to change. Went to let the banks that are too big but too big to fail, fail, if they in fact, screw up. Aware ofthink they are how bad fannie and freddie are. I think the media should pay a lot more attention. Thatd it hard to accept jpmorgan is being fined and paying the money to fannie and freddie when they were the ones that issued a guaranteed all of these subprime mortgages that help create a housing bubble that was uncontrollable. They too should the have been accountable. Thesh that washington and media would do an indepth investigation as to who made what. The way they are doing with jpmorgan, because some of the directors of some of those so called governmentsponsored authorities should give back some of the moneys that they took from failing enterprise. Barney frank . Absolutely. Barney frank went on tv and said i will roll the dice. Im giving people with no assets, no in, no ability to repay a mortgage a mortgage, through fannie and freddie. Arnie barney frank deserves a lot of the blame. It is not the budget about blame, it is noabout looking , coming up with a private sector that is impaired empowered to great the Academic Climate so that the next generation can live beyond their dreams they might have today. Potential politics, continuing Word Association, Sheryl Sandberg . Leaning in. Not only is she a tremendous success story, as a woman executive, and a new Technology Company in america, but she has said she wants to share that story is a role model for women. That is a good thing. When you look at the nature of our country, people should reach the heights that they dream of based solely on their ability. If youre cap down because youre a woman, or you are of some ethnic group, or because youre a more nordic, that diminishes us as a country. I think not only has she been a successful business leader, she rol good mobile desk e model. Theres been a lot of talk that she would run for governor. Government is something that people think, i am a success in the private sector, and i will just have been. It does not work out that way. Women still make . 75 to a mans dollar. When it comes down to who needs to stay home and raise children, women are the ones forced to raise their hand, simply because they make less money. What does this country need to make due to change this income disparity . We are making progress. All i can do is tell you the example of my daughter. She and her husband are both Great College dedicated educated lawyers. They started out with wall street law firms making a lot of money. They equal Career Opportunities going forward. Want toter has said i spend more time with my child. So im not going to continue on a career path where you have to work seven days a week, 10 hours a day. It is perfectly appropriate, but she made that decision. And what we need to do is let have a society where that income level is aced on individual choices, as opposed to any system. Ias in the may be banking should not be a 24 7 job, there should be more balanced for all of us and our jobs. Emily and i like this topic. We will be back with more. Welcome back to street smart , i am emily chang. Democrats are pushing for a statewide referendum this year on medical marijuana. Is this a floyd to get people to y to get peopleo to the polls . A lot of republicans would say so. John morgan is in florida, big big he is a supporter of this referendum. He is also going to be supporting the democratic candidate for governor. Take that information as you will, but we know for sure that there is certainly a tie between democrats and the support for legalization of marijuana. Take a look at the latest city event cnn polls. The vast majority of democrats supported, republican, not so much. The 18 to 34 age range that shows the strongest hobart for legalization support for legalization. But the question is will that get them out to the polls . Look at their voter turnout for young people, compared to 2008 when they did not have it on the ballot, a jump every signal time. Time. Gle this could be a boost for them. What about libertarians, independence . Vote democrat, they might vote republican. Take a look at these two dumb ings, youngwo th people tend to be more liberal, vote democrat. They helped president obama, what is your take care . Here . That is the worst thing in the world for a politician to sigma i dont know. s chartaw megan there. If we could get our message out, we should. He just approved this Pilot Program for medical there one in hospitals. Is it a step in the right direction . I do not think so. Im not in favor of legalized marijuana. Having said that, im a great believer that the states are the laboratory of democracy. Colorado just legalized it, lets see what happens. Im not in favor of the federal government coming down with a hammer them and saying that we will not let you. Thing, thererudent are units on both sides. One is the libertarian side, the other is in the gateway drug. Alth andhave helpe locations in the longer term implications in the longer term . No one can say. Lets wait and see. Do you think is more of a gateway that alcohol . Than alcohol . Look at the business boom it is creating in colorado. There are some that would say it is. States are the laboratory of democracy. Approved someave form of legalization of medical minute youre on marijuana. Why not new york . We have 18 states experimenting with it now to greater or lesser degrees of success. They have created real Law Enforcement issues, zoning issues go where rural parts of that inundated and dominated by trade engaged in the pot to the detriment of long standing communities. I am not convinced of it yet, and until i am, i would say lets wait and see. Might state of new york need to be creative and creating revenue. What about Online Gambling . That is what troubles me. States have this insatiable need for more revenue. The government always try to figure out a new way to take to put inm families their pocket. Online gambling is a terrible idea. Gambling is clearly addictive, no one doubts that. The fbi just put out a letter onlinethat they believe giggling creates enormous enforcement problems that they cannot control. Being used byt organized crime to launder money, by terrorist to get money. They want to enforce the law. Creates enormous Law Enforcement problems, and suppose you go to colorado and you have a couple of joints in the afternoon, and there goes your mortgage david because you just blow it on a poker game. Kids sitting around in a college dorm getting loaded maybe 500 for the rest of the semester, putting it all on a hand and losing it. A working father, late at night worried about making payments, gambling, and losing. Money long term, gambling, which is why casinos make muscle so much money. I do not think it makes any sense. Working mothers, no chance. States moving in this direction, that is the trend. I think it is a bad thing. I think were going to find Law Enforcement issues with new jersey. They think they can control it, but suppose you are a college kid in new york, and you decide you want to gamble. You get your friends together in your room, and they gamble, and it is from the new jersey terminal, with no questions. This could be a very negative thing, and the security concerns, moral issues, and the practical issues of people losing money they need for better purposes are very real. The excuse that government needs more money is not the right answer when you look at something as important as this. Thank you for bringing us that report. I want to continue the conversation with you, governor, dr. But what youre doing tell us what you are doing. , who isr phone rings calling you, and what are they asking you for help with . Im doing two things in the private sector. Energy. It is a great firm, and i love it. I have my own consulting business where we do energy and environmental stuff area we get a lot of calls to help a Startup Company or another Energy Company access markets, find investors, or see how they can get through the regulatory process. Then i get a lot of old c alls from people saying what is going on with the government, probably more than any other call. Itcoin . About b i am very intrigued by it, because it is not a sovereign currency. If do not have the training and currency, is the yen going to be backed by the central bank . I am intrigued by it, but i do not know whether or not it has longterm staying power of and market a sentence power, and market acceptance. Is it time for a new life form platform . A nonsovereign currency . I do not have the answer for that. I dig it is kind of sad and ramadi or the he bitcoin, i hope we can create enough stability that confidence create enough confidence in the stability of the dollar that we can increase our economy. It is no longer something you can predict, is an opaque group, and a come out and they will buy another trillion dollars of bonds and revenues, or they will start to taper. As long as there is uncertainty about the stability of the u. S. Dollar, there is going to be the interest in alternative that is not necessary chinese necessarily chinese, or e urope. Except for the fact that the Chinese Government has said that they do not want it there. They are at the moment successful in their nationalist approach. Where do you fall on fracking . Im very strongly in favor of fracking. I was very much an environmental governor when i was governor of the state, and i take great pride in what were able to do as a team. But i think this is something where it is ridiculous for us to have coal and oil that could be that is by natural gas much cleaner. We have ships coming into the harbor when we could be having gas from our own backyard. In the process, you create tens of thousands of jobs. Right in the poorest parts of new york state. A industry that is having profound impact, not just directly, but manufacturing xt to that. Ne i am for that. Bank for first playing with us today. It was fun. That is it for street smart. Market all over the place. Yesterday a new low, and today a new high. Up. Dow number 10 is wells fargo. A record Fourth Quarter, record cfo coming up in just a few minutes. Nine, intel, the chipmaker has a new strategy. A 3d Printing Company in forecasthad its fall short. They will be investing in marketing programs. The Pharmaceutical Company teamed up with aetna to document the new benefits of the fda approved weight loss prescription drug, combined with lifestyle support. What you do need is what the searchht, provider agreeing to by messagelabs buy nest labs. Cold out, but what a warm walk home, you can up the thermostat in your house when it is warm by the time you get there. Valuation. Lion in out of nowhere. We know that google it is wedding to get further into the Device Market is wanting to get further into the Device Market. Isgoogle is something that trying to interact with consumers, whether it is google glass, or the thermostat. There are a couple of guys that worked at apple, and they got back into google ventures. None survived number five, they video Game Retailer is cutting its forecast , edit Gross Margins from the play station for and the xbox one consuls. This is where we need matt miller. Youre not into video games . I am the worst. Know, i have not played a videogame in i am unable to plant. And he is really good. For 2013 Sales Results show a narrowing lead over both like and over volkswagen. Got a habit. That is a goodlooking truck. Carmaker says that it has delivered 6900 model s sedan. Are pretty announcing plans to double sales and Service Locations in 2014. Number two, jpmorgan. There is a little change. In the Fourth Quarter with rising legal cost. Or was a billiondollar settlement tied to bernie made offs ponzi scheme. Time warner cable. They had a takeover offer from time warner. From charter communications. The ceo says that it was a lowball offer. Coming up on street smart, we have a nice time here. Dickstein thousand approximately. 16,000 approximately. Yesterday was tough and today was not so top. Pretty good day here. The nasdaq is up. It is all about technology. Infotech is up 1. 9 . A little optimism there. If google is buying now, who else might be buying . Everyone is going after that internet of things, as you put it. There was a rebound effect yesterday. Todays game partly factors that. 100 t the dow up it was Technology Leading the game. Not the story this year. Last year it was growth. We will talk about this market momentarily. Yes we are. Our guest ise what thinking about equities and goal these days. Lets go to wells fargo news. The nations fourthlargest bank. They are posting record Fourth Quarter rockets today. The cfo is joining us right now. Always a pleasure and good to see you. Lets talk about the results. On the surface, they are good. But the reality is that it is tough out there. There is costcutting. My question is as you look forward, how much more cost cutting can you envision . At which point do we need to envision a turnaround . More people taking out home loans. The primary driver for our earnings this quarter was actually Revenue Growth on a sequential quarter basis. We saw very good loan growth. 13. 5 billion. That is 7. 0 annualized. It included some mortgages that we put on our balance sheet. The growth is diversified. Outside of our Home Mortgage origination business, revenues were up in many of our fee line items. Retail brokerage, our retail baking business, our credit card business. Again, it is a lot about mortgage at wells fargo. We love the mortgage business. It is a great business. But it is just one of our businesses. Year. Re up 10 yearover certainly our cost were down, but that was not the primary driver. Credit was improved. If you look ahead, we have a fed that may at some point raise Interest Rates. What does that mean for you . Is that good news if you are in a higher Interest Rate environment . Question and it is a complicated answer because it depends on whether it is the short end or the long end of the curve and what the slope of that curve is. What we have been able to demonstrate, even in an environment where reads are up 100 basis white yearoveryear, which had an impact, we were able to generate record earnings. That has been the case for the lack last 16 quarters. The Interest Rate environment is always different. We need to position ourselves so that we can be successful, regardless of the Interest Rate environment we are in. Quality improved and you are able to take lower reserves amount of dollars . You release 1. 8 million in the quarter. How much more money do you have a site that you could release . Good question. Let me correct something. The reserve release for the Fourth Quarter was 6 million. It was a reduction of what we had released in the third quarter. We still believe that there is improvement that is going to happen in our credit portfolio. We have inds that terms of rising home prices and improving economy continue. Rate was down. We believe that we will have some reserve release. I do not know what the amount will be. Credit continues to be a strong story. What about dividends and share buybacks . You returned money to shareholders through the full year of 2013. What are your plans to look ahead now . It is a great question. We are very proud of the fact that we were able to return money to our shareholders last year. Our capitalitted plan for 2014. In that plan, we asked for an increase in our dividend, as well as an increase in our ability to purchase more shares. We would like to do more than 11. 4 billion in 2014 full top been 6200 layoffs since october. That has to do with the fact that refinancings are down. What is the outlook 2014. Be one ininues to which we will grow the company. The employment levels will be in terms of the number of team members at wells fargo. I do not know. We believe we can grow our revenues and earnings. Hopefully that means we can grow our team members. Before relate you go, you mentioned the diversification of the business is that you are in . Partis the most important of your business to grow this year . A hard question because we have over 90 different businesses. That is part of the revenue story and the diversification story. We will be focused on continuing to provide the right product and services to our customers. You have seen that in terms of yearoveryear growth in our retail brokerage business, our Investment Banking business, our car business. I could go on and on. It will not be one business, it will be a host of them. Gives investors the confidence that we can continue to grow the company. Thank you so much. Always great to see you here. I appreciate being here. How far can you stretch a rubber band . M a no. We will get some answers for you. Glad the publisher of a report is joining us on set. How far can you stretch a rubber band . A little bit of insight and action. Stretch, stretch, stretch. This is the relationship to ratio. This is the s p 500 and this is the bond futures. Stocks are going up, and yields are going low. You can stretch it out and we are stretching it now. But it will snap back as it has in the past. Heres the problem. Look at the range. Inflation, this is the red line, running 1. 2 . Down. Ve the twoyear you are losing 80 basis points by holding to your paper. That hurts. Look at the five year, you are barely making any money on that. Loaning your money to the u. S. Government at 1. 6 with inflation at 1. 2 , you will make 40 basis points or 0. 5 basis points per year. As crazy as this is right here, it is actually worse when you look at the rest of the world. Look at the fiveyear ramps. 1. 14. They cost more for us to borrow than it does in france. Switzerland, they have deflation. Same with japan. The point is, you can talk about whether stocks are expensive, back and forth. It you look at the bond yield, that is the other part of the river band, this is insanity when you think about it. Moaning your money to these World Governments at well less than a percentage. Thank you. In. Is often a contrary our guest is a central bank credit. He probably has a lot to say. Gloom,e author of the boom, and doom report. Be new york. T to you are coming from thailand. I was just there yesterday. What im saying about china, they would not let me into the country. Here when i arrived, immigration officers are saying have me. Ug me. Lcome me h they welcome me to the united states. If you said a lot of stuff and we want to get into some of it. Bandar can this rubber these drugs . Can this rubber band be stretched . I will point of the backfire . We have to distinguish between the financial economy is , the financial sector, and the economy of people. Have rising prices up by of paying things, bonds, equities, buying our. Properties in the hamptons. The average person, the typical median household, the working class people. Said policies have actually led to a lot of problems around the world. Only responsible for them, but they are partially responsible. It is now 100 a barrel for oil. Food prices are up. A lot of other prices are up. Energy prices have very little impact because you are at bloomberg. You are a young man and make so much money. For poor people, it hasnt impact. Some people in the lower income , they spend more of their income on energy and transportation. The fed is creating a two class system . Correct. You haveem is that people like bill, they come in and they say that the problem is all of the rich guys. Because of these rich people, you are poor. They take advantage of you. Lets tax them. But in europe, they came out with a paper that the wealthy people should pay a 10 well task tax. A onetime 10 wealth tax. And that will become a every year tax. In theory, low rate should help people. How do you help the people on the lower end . This is the point i would like to make. Of these professors, academics, they have never really worked in the private sector a single day in their lives. Writing papers that nobody reads and nobody is interested in. Howwont they write about you structure an Economic System that lists the standard of living of most people . You dont think we have that . We had that in the 19th century in the u. S. Because we had a small government at the time. The entire government, local, state was less than 20 of the economy. Now it is close to 50 . They are spending too much money. The government becomes, the left Economic Growth you have. The more corruption you have. Corporations, especially the money printers, they are the most powerful people in the world. They control the government. The Federal Reserve and the government is one and the same. The fed, they finance the treasury said he governs can go to war in iraq and afghanistan. Payments by votes so you can get elected. Let me ask you, because you have done a lot of reporting. Ere on bloomberg tv given what you have just said, what is the solution . Thenprefer a physical goal decline than bitcoin. Gold, silver, platinum they have no competition. How do you value a bitcoin . I cant compare goals to the quantity of money that is floating around the world. I have a fair to the production cost. I have an idea of where gold should be. Value bitcoin . Is it overpriced for underpriced . About,ng i want to talk you said that lower Interest Rates help people. If money trending helps everybody, why does not everybody in the whole world always have zero Interest Rates . Then everybody would be rich. You would not need to work. You would not need to put on makeup. I could stay in bed and go drinking in the evenings. Lets just print money and be happy. It doesnt add up. One thing about the figures you showed, you live in new york, do you really think that your cost ofliving increase it feels like more. It feels like five times more. That is what it feels like. Number two, by keeping Interest Rates at zero percent i want to emphasize that this is going on in march of 2014 for five years. It is not something new. You penalize the income earners, the sabres, your parents, why should your parents be forced to speculate on real estate and everything under the sun . They really just want a return for bonds. Take a quick break. We are glad you are here. About what you want to ensure right now. We will be right back. Welcome back to street smart. We are here with legendary investor marc faber. We are talking about stocks that are overvalued on your list. Ted leonsis under. Why facebook . It is a fad. People go on facebook and for most people, what they do is they look at pictures. The only people that watch these pictures are themselves. They all want to be stars. It is a bit distracting. I cannot imagine that this would have a lot of value. But they are monetizing it. People are going on and looking at their friends pictures. Facebook and appeal to them by an advertising campaign. It can be very direct. What is wrong with that . It can be. How much uses it . I dont own it because i think it is highly prized. A companyther have like ali baba or amazon or google and facebook. Personally. This is my view. Other people have other views. Some people are buying it and some beidler selling it. Of stocks. D a number when you look at the market overall, do you have concerns . I think we are in a gigantic financial asset bubble. It is interesting that in spite of all the money, the bond yields do not go down. They bottomed out on july 25, penny. 1. 43 on the we went to over 3. 0 . We are up substantially now. Not have an impact on stock yet. They put money into the stock market. To 3. 5years, it will go . Tothe Mortgage Rates go 6. 0 , that will hit the economy very hard. That is when the bubble burst . Plaxico burress before. It could burst any day. We are very foolish. Is people are not fully because they think the economy will accelerate. Is that the Global Economy is slowing down. Is aboutl economy emerging economies this day and there is no growth at the moment. Theres no growth in the local economy. I feel that the valuations are high, the corporate profits have been boosted because of i wish we could keep it going. It is my pleasure. Thank you very much. We will be right back after this. It is time for the roundup. We have two guests from bloomberg. Julie will kick it off. Thats what am i, chopped liver . Lets talk about the spending bill. Unveiled and it seems like there is a surprising amount of agreement, at least tentative initial agreement that brought this bill. If funds the government through september 30. It is fairly evenly spent evenly balanced between defense spending and domestic running. There is no pay raise for the vice president. There is no funding for race to the top. There is no funding for the imf. There is a ban on the light all bantered. White gold standard. Standard. Ulb the dangers that there is not enough in here for the more conservative arm of the Republican Party. There may still be some speed bumps with that. It seems like the more center oriented folks are going to be supporting this. It is good. We have talked about this lack center in washington. That contribute to problems. There is not enough cheese in the middle to bring people back into the metal. That is the only way you will get this deal done. Speaking of politics, new jersey governor Chris Christie falls out youve all been following this. Idgegate scandal has been front and center. He just gave his first state of the state speech since this year as governor. Take a listen to what he had to say. Mistakes were clearly made and as a result we let down the people who we are interested to serve. I know our citizens deserve better. Much better. I am the governor and i am ultimately responsible for what happens on my watch. Both good and bad. Ok, there he is. I am ultimately responsible. Ask, beingi would the ceo of a company, he is the governor of a state, will kind one are you setting choosesre the guy who the people around you and this was your choice . It is one step removed from actually being the guy who called the Port Authority and shut it down. He used the classic mistakes were made passive voice construction. Am a journalist bloomberg is not tedious to speak like that. If you want to take responsibility, use the active voice. You wonder what this is going to mean for 2016 . Americans have short memories. , one could comes out expect that there will be issues. Montclair college in new jersey, his Approval Rating is 18 . It was higher several weeks ago. Aegon are given on a national scale, the awareness of the scandal is not terribly high. They are not talking about it in your area. But they are not. He is considered more in the center than a lot of other republicans will not a lot of other republicans. You will probably weigh in on this as well. Yesterday,diately the time warner ceo said that they were playing too low. But they picked it up. Come on guys. We are negotiating the rifles that it is a price negotiation. Charter release the presentation that is connected to what is happening right now. Outliness on and it the stages of it. There were multiple attempt from charter to try to get time warner to negotiate. They did come back and say that they were willing to do a deal. That is more than most people can do on an unsolicited bid. That issays that ridiculous. They will not do it for that price. It has to be somewhere in the middle. That if was a comment to 150 hey get if youre charter, you are saying listen. Before this elation in the marketplace, this stock was up top we have been very upfront with the marketplace. We want to consolidate the industry. Think the best option out there. If you are saying, we have already paid the premium if you step back and look at evaluation, there is an up right there. At the end of the day, if you are charter and you want to consolidate, you have to do this youll. Otherwise you could spend years doing lots of smaller deals to get to the same place. Isspeaking of years, that how it will feel he between now and when the deal finally get done. Whoever ends up buying time warner cable, it will take a while. Regulatorywise . Just negotiationwise. Interest, may have but may not be able to get that deal done on regulatory ground. They are too big. A joint dealbe between charter and cox communications. Comcast may stay out of it or they may jump in. It will be difficult to buy the entire thing. Later ader sent a letter to shareholders on that liberty offer. He is a shareholder. To askrging shareholders him how. He says that this is inadequate at three dollars exceed cents a share. 3. 60 a share. He was effectively calling him carl icahn to be his white night. Was ludicrous. Is you want carl to step in. He said, carl icahn, take notice and interest. It is so dumb. Carl icahn the activist is the knight for ralph nader. Other people have come out and said that the offer is too low. They are not as vocal as carl. That is true. They are saying that this stock traded well over four dollars a share. We had a bad quarter the last quarter. You know what is funny, they arearter paying 22 times cash flow for sirius radio. That is three times what they are paying. It is apples to oranges, but you know. It is a much better growth story. That have to do with the car business. Serious is used in cars. It is being built right into the auto. This is ralph nader we are talking about. We are not really used to having him china and on matters such as this. Onis protecting chimed in matters such as this. He is protecting the little guy. Goto twitter or facebook. Everyone has an opinion. Move over zombies, a pirate vision is upon us. Sale ks lack saill bays black is coming up next. And googles best acquisitions. That is coming up next wil. It is time for the scene where we bring you the business behind media pop culture. Amc has walking zombies and now premiereay will help black sail. A lot of moving parts here. The story to me is that i was filming in wales, doing a british movie. Agent sent me the script. It is a pirate show. She kept going on me and said, you have to read it. It was really it. I put myself on tape and it was the easiest normally you have to jump through about 100 who. It was michael bays idea and he brought it to starz, and both of you got involved . It was kind of his idea. And they camet together to put it together and give us this amazing show. Caribbean of the shows that the pirates are happy guys. The captain even more mascara. This is great. It is the real deal. It has the feel of a western. We are looking at the Historical Context of it and getting back to what the real life piracy would have been like. And the economic mechanism of it. You get the booty off the merchant ship and then you make money off of it. That is where you come in. That is your character. First it is a prequel to Treasure Island. Andre looking at the island the town of nassau. My characters sells items back to merchant ships. It is looking at the way that piracy works as an economy. It is looking at how colonialization at this time and piracy were running alongside each other. It is a fascinating story. The treasure that you know to be on Treasure Island and how it came to be about. It was a legitimate economy and change the way a lot of businesses were done. Hbo,oks to me like starz, and amc are changing the way that we watch stop. Over eightiewing is hours of watching. It is fantastic. You get to take a character and the this enormous journey with them. In the movies, you have a very short period of time in which to tell a story. Very stereotypical characters, good guy, bad guy, love interest. With this, you can sell incredibly complicated stories. I know it is a hero, knowing is a villain. Everyone is in this gray area. You quite often fall in love with a character and then you realize that they do despicable things to survive. It is an interesting story. I think it will challenge you. How did you prep for it . Lots of historical research. It was piracy 101. I did not know much at all. I realize that it was a fascinating section of history that does affect the way which we think about capitalism and the economy today. Were pirates making good money at this . It is a desperate trade. They are surviving. That is asomething comfortable living. There is nothing romantic about it. It is hard. They are constantly making plans to do things that go wrong and then they have to troubleshoot. Starz is going to make some money off of this. It premieres in a few weeks, but they are the filming a Second Season because he did so well. [laughter] thank you for being here. This has been a lot of fun. You can catch them on the premiere of lack sale black sail. I am looking forward to that for sure. Now the thermostats. Googles most incredible acquisitions. We will be right back. Some breaking news on gm. It will pay dividends. They filed for bankruptcy and had to reconstitute it help. They used to pay dividends and that was lost in the bankruptcy. Now they are back to paying a dividend. You can see the stock reacting strongly. Google Just Announced its latest makeover. It purchased a Company Called nest. Here are some of its best that was asians. Acquisitions. Good day for the markets. It was a good day. See you then. Exit is approaching 56 happy hour. Blumer television is on the markets. I am julie hyman. Some development on General Motors. The company had not paid a dividend since the financial crisis. They will reinstate dividends for the first time. Ofy will pay out a dividend . 30 per share to shareholders. That is big news to General Motors on its road to recovery. Speaking of recovery and rebound, lets look at where the stocks closed in this session. There was a big rebound. Yesterday was the worst single day since november. Stocks bounced back. The s p finished up better than one percent. Technology within the s p and on the nasdaq. Speaking of technology, 2013 was another record year for ibm. They won the most patents of any company for the 23rd straight year. Aoomberg newss reporter took look at this. She joins me now to talk about it. We always talk about this. What company has what patent, patent rates. Why is this such a big deal . A tech company like ibm, it is important for them to get ahead. They must lay their name down and say, this is ours. It helps of Copyright Infringement and it helps to protect from other copy issues. Ibm is not what one thinks of as a cuttingedge company at this point. Yet it has held this spot for 21 units straight years. How many patents that cap last year . 6800. How does it hold onto that top spot . They put 6 billion into research and design every year. They want to expand their research and get out in front of the trends both top what they do of those patents and those inventions, that may be a different story. Have there been certain things that have come out of the patents that have been particularly interesting and lucrative for ibm . A couple things that we are what techremember, patents, it can take three years before a patent is the best issued. It is where companies are looking to grow. Of cloud lot computing. They are looking to deal the encrypted data better in the cloud. Also with watson, theyre smart computer that can answer questions in plain english. Is this something that investors are looking for . Ibm stock has not been doing fantastically well. Over the longterm, do they Pay Attention to this patent portfolio . Samevestors have the sentiment that it is great that they have all of these patents and theyre getting ahead of the game, but they have been falling for the past few quarters. They are having an execution problem. Well it is very promising to see them getting out ahead of these trends, there needs to be more of that commercialized product. Here, you hear about a lot of Companies Engaging in patent issues. Ibm likes to settle, they like to negotiate. It is going on at amazon. With twitter, we saw that their ipo filing ibm approached him on three separate patents and said that they need to talk about this at the grout what you os and licensing talk about this about what you a lot in licensing. Usthank you for talking to about ibms patent portfolio. For on the markets, im julie hyman. This is taking stock for tuesday, january 14, 20 14. I am Mark Crumpton in for pimm fox. This hour we focus on things that are ready to take off. Air cap makes a deal with aig. The company is set to become a leading global franchise for aircraft. Less, the Top Executive from a digital mini company that is companies per day. We will tell you why they are