Take a look at how the markets are settling out tonight. As soon as we got that announcement the market went from down 90 to down 50 and its creeped lower since with a decline on the session of 80 points, finishing at 13,167. A decline of threequarters of 1 at 2992 on the nasdaq and the s p gave up 9 at 1419 and the Federal Reserve and the fiscal cliff weighed in on this market. How do you position yourself . Joining me to discuss that our guests. Gentlemen, nice to have you on the program. Thanks so much for joining us. Let me kick this off with you in terms of allocating capital right here in the face of so much uncertainty, fiscal cliff, Federal Reserve. What is going to be the dominant force in terms of moving money . I think you dont fight the fed. I think what happened yesterday is a little bit more of the same we had this year which is the fed is going to try to keep Interest Rates low until it moves people off the risk spectrum which means between bonds and equities we still favor equities. Isnt it interesting, ed, that youve got the Federal Reserve now targeting an unemployment report rate in terms of moving on Interest Rates. 6. 5 is the number, you know, that was spoken about so much yesterday. It that change your investment position in any way . No. I mean, its pretty its Pretty Simple to understand what you need to do. You need to buy equities if youre going to be real focused. Look at equities with a little bit of a china exposure because china is starting to bottom a little bit, we think, so thats where i would focus. The number one thing and the greatest clarity i have in 26 years in this business, stay away from Interest Rate sensitive bonds and stay away from bond funds, and thats what you need to be doing right this moment. So you go on equities then, all in in equities then . Let me tell you, if youre going to be an investor for longer than two years, stay away. If you need fixed income, run away from Interest Rate sensitive bonds. What about the fiscal cliff, you think we get a deal by the end of next week . We going to get a deal . I dont see a longterm deal. Its pretty easy to come to that conclusion, brian, given the fact that they have had 13 months to discuss this and think about it and now were down to 18 days to deal with medicare, medicaid and defense spending, what, social security, taxes. What else can we throw into the bucket . Yeah. You can just throwing more and more in. I think its clear that they wont be able to come up with comprehensive reform in the next two weeks. Then the question is how do you want to allocate capital . Leo are where are you on that . I think its clear. What we dont want to do is go into treasuries at 1. 5 for ten years. Thats what ed says. Equities still clearly are a great choice, especially companies with great Balance Sheets. Every day we hear clients talking about how bad the federal government Balance Sheet is, but Corporate America has great Balance Sheets. Theres a lot going on thats positive, energy, reshoring, businesses coming back. Just stay away from the longterm bonds. Shortterm bonds and alternative strategies i know what youre saying and i get that because its true. The corporate sector is probably the best part of this recovery. 3. 6 trillion in cash, lean and mean, Corporate America ready to lead once again, but the question is am i going to be able to buy stocks at much lower levels, so are we going to have a 100, an 800, 1,000point decline if we go over the fiscal cliff . Thats a great point. Maria, were not trading, right . Thats always the question in the market. We have to use volatility to pick up positions and add to equity, and this is a longterm gape. Weve become so shortterm focused. Got to stay focused long term and add on volatility. One of the things ill add, we either most confident insecure people in the world and when we know based on our history and based on what we know needs top had a, but we dont know whats going to happen in the short run. The important point that everyone is missing, the stock market is 17 undervalued based on expected earnings, and we should be, maria, 10 overvalued based on where Interest Rate rates. We have 27 upside from this point forward and its not happening because of all the fiscal cliff, obama care, the taxes. This market should be a lot higher if it wasnt for all of the stuff. What about the International Story . Where do you want to allocate capital outside the United States . The best way to allocate capital outside of the United States is focus on large multinationals in the United States but have exposure to places like china, india, brazil. Why . Because its less volatile and a lot of their earnings are coming out of those places. Thats a good point does it bother you if tax reform doesnt happen and, for example, hit the companies with so much money on international markets. I think corporations are already expecting a worst Case Scenario like most americans. To some extent any clarity will help unleash some of the corporate earnings down the road. Does the dividend or cap increase scare anything out of market . If we focus on the short term its a scary proposition. When the cost of anything goes up the profit goes down. I think long term were still at lower rates than weve seen historical historically, and at the end of the day equities and real estate and certain alternative investments, thats still the only place to get a rate of return. I think you have to look past taxes. What are the sectors that you like best . Well, we love the energy story here in the United States. We love the whole fracing story. Its a gamechanger. The next ten years is all about energy here and what that does for u. S. Manufacturing. Technology, mobility, u. S. Manufacturing and energy, thats exciting stuff. International, we think its really looking inexpensive, especially emerging markets. All right. Got to leave it there, gentlemen. Real exciting stuff. Appreciate your time and well see you soon. Thank you guys. Thanks, maria. Softwaremaker adobe out with the fourthquarter members. Jon fortt outside adobe headquarters. Over to you. Reporter hey, maria. Looks like adobe has a beat on the top and bottom lines which might be seen as a bit of a surprise. It looked like the street was looking for 1. 1 billion. Adobe turns in 1. 15. I was looking for around 56 cents in in proformo eps, and weve got 61 cents, i believe. Now, whats particularly yeah, 61 cents nongap. Whats particularly important about that is adobe is adding Creative Cloud subscriptions at a really fast clip, around 10,000 a week. Thats up from 8,000 the quarter before. That has some negative impact on revenue because they are not getting that big pop in Software Revenue that they used to get when they were selling the boxes, but they were selling subscriptions so that should even out nicely over the course of time as the revenues continue to roll in. So also they are marketing revenue, marketing cloud revenue and coming in strong. Upbeat news from the state released today. Maria . Market down 74 and right over to bob pisani we go. . Maria, take a look at the dow industrials. The fiscal cliff smacks around the stock market today. Did rise out. Word got out that we have a meeting at 5 00 p. M. Between representative boehner and president obama, but bear in mind here we sold off yesterday on the News Announcement of additional treasury purchases, and a large part of the decline on the day is the sell on the news from the fed announcement. Two issue, fed and, of course, fiscal cliff moving stocks here. Take a look at the major sector, dollars reversed the declines of yesterday. Energy, tech, materials, all down. Volatility, everybody is waiting for it, but the vix does not move at all. Just a modest move again today. The fiscal cliff looks like its going to be resolved. Thats what the vix is saying, and the feds actions are not going to create volatility, even additional futures contracts in the vix are not higher in the last several weeks here. We did have a spike in bond yields yesterday. Some good very excited about the idea that perhaps we were going to have some inflation issues, but, you see, inflation portfolios that spiked yesterday, didnt do anything today. The gold issue is down and the pimco tips, didnt do anything today and even funds, etfs, maria, that short treasuries like that tbt, that bottom one there, that had big volume yesterday and today but not a lot of price action. Maria, back to you. Up next, no impact. Someone here says the Federal Reserves unprecedented action to keep the economy on track wont make a lick of a difference in avoiding the fiscal cliff. The debate on the fed, the cliff and the economy coming up and represent schakowski says raising the eligibility age for medicare is a nonstarter. Well talk about it and dan niles, ahead of the curve . Saw facebooks mess comin before the ipo. Now hes ready to unload his top picks onnies giving us his ideas for the new year. Second half of the show. You cant afford to miss that one. Youre watching cleshl on cnbc, first in business worldwide. Welcome back. Between the Federal Reserve and the fiscal cliff its a mess if youre trying to position yourself with 2013 with so much influence by ben bernanke. What happens between the president and john boehner in an hour narrator what are the pros expecting in 2013 . Dan greenhouse is with me and also the chief economist with ihs Global Insight joins me. Good to have you on the program, gentlemen. Thanks so much for joining us. Thank you. Thanks, maria. Dap, you think the fed captain really do much on the fiscal cliff . Do you think the fed should have done without should have done what it did yesterday in terms of basically create more more stimulus . Well, no, i dont think they should have done what they did yesterday, but thats a separate issue from the fiscal cliff, i think, and, you know, ben bernanke has been quite clear and quite frankly economists in general are quite clear about arguing theres very little the Federal Reserve can do to even partially offset the worst effects of the cliff should it actually happen. Let me ask you your take on 2013. We know if we go over the cliff there are expectations that well see a recession, at least in the first half. Whats your expectation for 2013 economics . Well, if we dont go off the cliff, were looking at 2 growth. But then if we do go of course, the question is how long do we go off . Two weeks, big deal, i mean, in the sense that it wont have a big effect. If we go off for a couple of months were looking at a recession scenario. You dont think well go off for a couple of months . If we go over a fiscal cliff doesnt that push them into action early january to do something . Youre absolutely right. If we go off the cliff for even a few days the markets will have a fit, and i think thats probably enough to bring them back and figure this out fairly quickly. Since you said the markets will have a fit, because i feel like the markets will have a fit if we dont have a deal by the end of next year. Dan, whats your take on that . Will we see a major selloff in stocks if theres no deal at the end of next week . I dont know if its next week necessarily, but i can say more generally next week or the next week, right . Were 18 days away. Certainly running out of time. Right. I dont know if the selloff begins next week or the week after that, but i think certainly, you know, one thing that we can say is that tax rates are going up, and with respect to the Capital Gains tax rate we have two other instances in modern history in which the Capital Gains tax was increased, and in both snare quotes december in which it owe cured the Capital Gains tax rate went up, december wasnt exactly very good. Certainly were not tracking out that path right now and as you inch closer to the year the reality will settle in on investors that their tax rates are going up which may be a problem in the short term. Whats the problem, dividend tax, Capital Gains, ordinary income . Its Capital Gains. The dividend tax rate is whatever in relation to the Capital Gains and the marginal tax rate increase and that really changes the ways investors look at investments more generally. In a 20year time frame, is a Capital Gains tax rate 20 instead of 15 the end of the world . No, i dont think so, but in the short term it certainly affects behavior, thats for sure. Are you selling right now . Do you want to get, you know, take advantage of this 15 Capital Gains tax while you can . Well, yes, i have some personal issues to deal with on that front in terms of being able to sell. Our view has been if the cap gains tax rate is going up that investors will see a difficult time in november and since the election thatss broadly held true. Nariman, what do you think . Tell me yoweri pectations for 2013. Hate to be such a shortterm trader, because im not, but were hanging on every word out of washington so give me your longterm expectations as well. I think the economy is doing quite well, you know, despite the fiscal cliff, and even thought the worries about taxes are affecting investors, they are not really affecting general economic activity, so the good news is the economys got some sort of head of steam going, so from that perspective if they can do a deal relatively quickly, thin think were in good shape. Come on, if you look at the of a dense measures, they are turning down and measures of durable good orders, turning down. Our question is housing and recoveries and they account for almost 80 of the economy. Youre right, the capital goods orders are hurting, mostly because businesses are uncertain, i agree but general Consumer Spending, confidence aside. Consumers are spending. Thats the good news. The good news is they are not focused on the fiscal cliff the way businesses are, but at some point everything comes home to roost. Sentiment is up, spending is up, but are we spending our way into oblivion and then were going to find out oops . I doubt it. No, okay. I think the fundamentals, the fundamentals for Consumer Spending is pretty good. Gasoline problems is down. Jobs growth good enough to keep everything going. Lets not forget waves growth which hasnt been playing along. Hasnt been in a while. Well see you season. Gentleman, thank you very much. Is it time to raise the eligible age for medicare, after all, a lot of people are living longer than when the Program First began in 1966. Represent Jan Schakowsky says no way. Shes here next. And john mcafee talks about playing the crazy card but will the company find some criminals stealing millions from u. S. Institutions. Alpha one capitals dan niles with his top picks for 2013. He saw facebooks mess coming miles away and shorted it at 42, and wait until you hear what hes buying right now. Stay with us. E more you know, the better you trade. So we have ongoing webinars and interactive learning, plus, inbranch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. Our teams have the information you want when you need it. Its another reason more investors are saying. [ all ] im with scottrade. All right. Welcome back. Today we got a real true picture of how much this market is hanging on over word coming out of washington. You see the numbers here. We ended with a decline of 74 points on the Dow Jones Industrial average. Nasdaq down 21 moipts, and the s p 500 down about 9 points, but it was a little bit of a roller coaster going into the close because at about 3 30 p. M. Eastern time the market well, about 3 00 p. M. The market was down 90 points on the Dow Jones Industrial average. Then about 3 30 we learned that the president and Speaker John Boehner have set another meeting for today at 5 00 p. M. Eastern time to further negotiate each side on the fiscal cliff. As soon that headline calm out, the market starting back from they wills. As a result a lot of people were saying this is an optimistic sign. Things worsened there and was all about that conversation happening at 5 00 p. M. Eastern which well have for you as soon as the details come owl. Talk about bang for your buck. If you followed the cause of dan niles on facebook you would have made money on the way down when it priced and even more recently on the way up. Dan is now labeling the company his favorite considered for 2013, facebook is after shorting it at the highs at the 22 a share. John, i went from a huge wear on facebook to a huge bull. Thanks for having me on. Why facebook . We were very vocal about facebook when they went public and they had only one engine of growth and that was on desktop pcs. They didnt have any tablets and this is before they reported the prior quart. What was interesting is they had a mobile strategy. They just sponsored news feeds and you go to the september quarter. That got to 140 quarter in revenue and we be surprised and another initiative for growth f interesting. Thats the reason for the about face. Its gone from one horse pulling the train to now youve got or pulling the wagon, i should say, to multiple revenue drivers for next year. We all know that the possibility part of the business is really what happened you, and others, even os the root show they were talking about monetizing mobility because a pc is smaller and youre not able to monetize mobility the way you can on your pc. You think they have gotten that figured out . I think they really have and thats a little problem for a lot of vendors looking out over the next couple of years. If you look at facebook, their mobile users were i think about 604 million last quarter. It was up over 60 year over year, and so thats far outpacing the Revenue Growth of the company which is about 32 . So this is if you think about it this way. At 38 a share, there were no mobile revenues, and thats the price it came public at. Next year i think they could do 20 billion in mobile revenues out of a total revenue stream of 7 billion, and so thats a much different worry. In addition to that, think about that next year. They have facebook ad exchange. If youre inside fake. They can advertise within the facebook platform. They are gifting and hints them getting into search. A lot of positive drivers next year just from the things we know about like mobile revenues and adexchange gifting, and next career there could be other things coming up. So you would so you would recommend buying facebook at these levels. I guess i want to know how high can it go, and also, i dont want to spend the whole interview on facebook. Give me your other top picks for 2013. What do you like right here, dan . Sure. In terms of other names that i like, quite honestly what makes me excited about next year is a lot of names that people have absolutely hated for two years and good reason, thats where were most bullish. The specter index is down about 7 over the last two years, and the s p is up about 13. We think thats basically started the bott tomorrow outside of the pc industry, let me correct that. Semiconductors are more broadly based. We think they are going to get bert. A company that most people havent heard of. Its called on smuktor, but they are one of the top 20 Biggest Semiconductor Companies in the world, and they sell 42 billion units every year, and, you know, this is a business thats been put down for six quarters in a year. We think its turning and a good reflection of whats going on there. I think the teleconspace as well, you saw spending really going down in the last year. This year youve had several deals, softbank for spread and Deutsche Telekom and youll see a lot more spending next year in the u. S. Coming out of those areas and a lot of it directed at wireless. Cisco, which is a name we havent been very bullish on for a long period of time, stock down 2 over the last two years, i think youll see a big turnaround next year so thats where were excited. A great list that were looking at right now on facebook. Sis doe. Great to talk with you. I know we want to get into microsoft next and is on your buy line. Dan, good to talk to you. Good to talk with you. Dan niles joining us on the telephone. John mcafees bizarre run from the police in belize has stolen the headlines. Reporter mcafees former firm is warning that 30 large unidentified u. S. Financial institutions and their clients will be targeted by a cyber attack called project blitzkreig before spring of next year. The intent, to steal millions of dollars. Heres mcafees Senior Vice President pat calhoun. This one is very different. This one here is really intended to siphon money out of consumers accounts and put them offshore. Monitoring underground chat rooms, they believe a single russian hacker is behind the virus thats already infected over 100 pcs. Entering them verya email or website links. Transfers of large but not noticely large sums of money isnt unusual. If they were to have thousands or millions of tons actions, banks will start noticing but if they do small transactions of fairly large money its harder for the banks to identify that. They are warning you from opening up emails from unknown senders. Its also telling Financial Firms to monitor certain sized transactions going to offshore acounts. One of those firms is schwab, they say they can adjust defenses if they see any violations. Maria, back to you. Mary, thank you so much. Coming up next, illinois congresswoman Jan Schakowsky says theres no way a deal can be reached and if Union Workers dont get the Health Care Benefits they want may walk out, this after unions are making moves across the board in business that have put certain firms out of business. Weve got the debate coming up. What are you up to . Oh, just diagramming this accident with my state farm pocket agent app. You can also get a quote and pay your premium with this thing. I thought state farm didnt have all those apps . Where did you hear that . The internet. And you believed it . Yeah. They cant put anything on the internet that isnt true. Where did you hear that . [ both ] the internet. Oh look. Here comes my date. I met him on the internet. Hes a french model. Uh, bonjour. [ male announcer ] state farm. More mobile than ever. Get to a better state. Twins. I didnt see them coming. I have obligations. Cute obligations, but obligations. I need to rethink the core of my portfolio. What i really need is sleep. Introducing the ishares core, Building Blocks for the heart of your portfolio. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. Welcome back. Minutes away from a key miss call cliff meeting between the president and house Speaker John Boehner and representative Jan Schakowsky says the president should walk away from any deal that raises the medicare eligibility age. Congresswoman, good to have you on the program. Raising the medicare age is a nonstarter for you. What if its not a nonstarter for the president . Well, actually, dick durbin, senator durbin had a press conference earlier today where he said the white house has backed away from raising the eligibility age, as well they should. Earlier you said, maria, people are living so much longer. The truth of the matter is if youre in the upper half of the income scale, yes, your longevity has gone up. If youre in the bottom half, not so much, and in fact if youre a poor woman in the United States of america, youve lost ground in how long you live, so raising the age of eligibility would really cut off many, many people. It would affect about 7 million americans who would either have to pay more or they would lose their insurance all together. But somethings got to give, right, congresswoman . Medicare has not been changed since it was adopted, and people are living longer. If you most eligibility age from 56 to 67, were talking about more than 1 trillion in revenue. Well, actually, maria, you may remember that number 716 billion, a number that was used by the republicans to stay that the democrats stole from medicare. We improved and made the program more efficient, and we think theres 400 billion more that we can do without cutting benefits and without hurting beneficiaries, making the system more efficient. For example, we could have medicare negotiate with pharmaceutical companies for lower drug prices, just like the Veterans Administration does, so there are certainly a number of ways for us to adjust the system that would have dramatic savings, and in fact if you raise the eligibility age, unfortunately, its going to cost the Health Care System more. There will be more in costs actually because the older beneficiaries that are left in medicare, that will raise their premiums, and the older people then who go into the exchanges will raise the cost on the exchanges, so its not good economics. Weve just got so many sacred cow here. Your sacred cow is the eligibility age. The republicans have a sacred cow onration taxes. I mean, somethings got to give here so is this more is raising thats not a to me its not an equivalency asking the wealthiest americans to pay more and then saying that people whose Median Income is 22,000 a year, thats the seniors, but weve got to take away their benefits. Im all for making medicare more cost effective, but why should we then make that somehow even steven asking the richest and the poorest adults to pay more. Let me ask you this. Lets do even steven with spending cuts. Where would you cut . Theres lots of things. I was on the Bowles Simpson commission that came up with plenty of cuts, not only from the the military budget which Bowles Simpson did as well, but also there are entimes that can be cut, including some of the farm subsidies that we do. Theres plenty of tax loopholes that we can cut that would result and the president in his proposal cut about weve already cut about 1. 7 billion out of the out of the budget. Weve made those cuts. Right. And hes ready to do another 600 billion more. Well, its just amazing to me that every time we speak to congressmen, senators, everybody on both sides of the aisle, it just seems so simple and yet here we are with 18 days left and cant seem to agree with anything. Hope youll come back after the meeting with john boehner and the president. We hope to get more details. Id love to. After that 5 00 p. M. Meeting occurs. See you soon, congresswoman. Thank you you very much. Want to get to john harwood who has more details on this upcoming meeting. Over to you reporter wanted to fill you in with a conversation i had with a House Republican leadership aide on this meeting between the president and the speaker. The aide said the meeting is taking place a shakeup of some sort is required in the fiscal cliff talks due to the inflexibility of the white house. Now, what that shakeup is was not spelled out to me, but there are two ways that that can go. One is for the white house to suddenly give ground on spending cuts and detail additional entitlement savings as the speaker has requested, but another way to do it which seems more likely given the cracks in republican unity is if republicans decouple the top tax rates from those at the bottom, that is the president s proposal to extend the tax cuts for 98 of American Families and let taxes go up for the 2 , dont know that thats going to happen but the idea of a shakeup in the talks suggest to me that we may be at some sort of a break point. So shakeup being real real changes from what weve heard so far. I hear what youre saying on taxes. Whats the shakeup on spending, john . Reporter well, thats the question. What i said a moment ago, maria, was that the republican aide said the white house sip flexible. We hope what comes out of meeting is the president giving ground on spending cut, but there is no sign that the white house is prepared to do that. They are winning this fight politically right now, so im simply raising the possibility that a shakeup may result in a change to the republican approach, and the most likely change in the republican approach is to give up on holding out for the extension of all the bush tax cuts and let the tax cuts at the lower rates go through. As i said, i dont know that thats going to happen, but i think a shakeup of that kind is at least possible coming out of this meeting. Well have to wait and see. Im told the meeting will probably last less than an hour and we do not know whether either speaker or the president s going to speak after the meeting. Certainly if a breakthrough takes place, we will hear from one or both of them. John, let me ask you. Had somebody on the show who said earlier the whole goal is for the white house to get john boehner fired and to get the house back under democratic control. Would they do that . Do you think thats one of the goals here, make sure we go over the fiscal cliff so that its the republicans fault and the public thinks its the republicans fault so that the dems take back the house in 2014 . Reporter not at all. John boehner is the president s partner at this point. He cant wait for two years for a resolution of this problem. It would be damaging for the markets, for the economy. Everybody, yeah. If this thing drifts for two years. Certainly the president would like to have a democratic house, but he doesnt have one right now. Hes not going to have one for some time, probably not going to have one after the 2014 elections. No . So i think this president is focused on trying to get john boehner and republicans to come his way on tax rates which is a position thats popular with the American Public as our nbc wall street journal poll showed this week and then get to the end stage bargaining on spending. So who prompted this meeting, john . You said theres a real shakeup, youre hearing about a shakeup. Who prompted the meeting . Was it the president or john boehner . Reporter i dont know that yet. I infer from what i heard about a shakeup being required that the speaker might have done it, but i dont know that yet. Okay. We know youre on it, jop. Well come back to you when you have more info. Thanks so much snow bet. Just when broadway was getting back on its feet from hurricane sandy, well, then this. The striking service workers. They have halted are they going to halt broadways recovery . Were talking about whether unions are ruining the u. S. Economy . And three of wall streets top stock pickers come up who will give you a game plan and moments away from the president s and speaker boehners meeting at white house. Stay with us. Or jumping into the market, he goes with people he trusts, which is why he trades with a company that doesnt nickel and dime him with hidden fees. So he can worry about other things, like what the market is doing and being ready, no matter what happens, which isnt rocket science. Its just common sense, from td ameritrade. Monarch of marketing analysis. With the ability to improve roi through seo all by cob. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. Im going big. [ male announcer ] good choice business pro. Good choice. Go national. Go like a pro. Hes going to apply testosterone to his underarm. Axiron, the only underarm treatment for low t, can restore testosterone levels back to normal in most men. Axiron is not for use in women or anyone younger than 18. Axiron can transfer to others through direct contact. Women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these signs and symptoms to your doctor if they occur. Tell your doctor about all medical conditions and medications. Do not use if you have prostate or breast cancer. Serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. See your doctor, and for a 30day free trial, go to axiron. Com. Welcome back. Tough going for the countrys unions. The righttowork law gets passed in michigan. Hostess liquidates its brands after a battle with its unions leaving 18,000 without a job and now the show may not go on for some theaters on broadway as Union Members are authorizing a stray. Just about 12 of all workers belong to a union in had country today, 12 . Its leading some to wonder does it pay to become a union member anymore. Justin wills ops of the center for union facts says the union label is toxic to the label and our other guest takes a different view. Justin, you say the union brand is toxic to many workers and companies. Make the case. Got to a point where the modern unionizing schemes unions doesnt call themselves unions anymore. In the case of new york city they launched a campaign to try to unionize the Fast Food Restaurant. They didnt call it the Fast Food Restaurant unsions, they called it fast food forward. At this point i think unions are finally realizing that their brand is so toxic that they actually need to start rebranding themselves because frankly they havent been willing or capable to actually adjust to a 21st century economy. They are stuck in the 1950s, and they want 1950s policies to return, return to protectionism and a whole slew of other policies that will hurt our economy so at this point they are sort of like becoming, well, almost extinct. What about that . Are you stuck in the 1950s . Absolutely not, and i think maybe just season in a little bit of a delusional stage here because unions in fact are the key right now in this weak economy. Its what we need. Key to putting people out of work . You just put 18,000 people out of work. I didnt interrupt you. The key to balancing the economy have tremendous inequality. You have stagnating wages and loss of power for working people and what unions are is a voice for working families in this economy. They represent all workers. Union members, but also others who are struggling for minimum wage, for a safe workplace, for decent working conditions, and this is exactly what the economy needs right now which is that we workers need a voice at the workplace and a voice in the political system and because unions have been so effective in ng a voice in the political system thats why theres ahuge attack and backlash against unions where a bunch ever right wing billionaires have put a lot of money towards trying to destroy unions in michigan and in other places, and it wont work because people are fighting back. It also has to do with the debt of this country. All the spending on entitlements and the spending on health care, isnt that part of it . No, it has nothing to do with the debt. Really . Because a Health Economy in this country would people having good jobs and paying taxes. Whats not healthy is if you try to staroftheeconomy and you dont invest in infrastructure and in education and skills, unions are a voice for what the future of this country looks like which is we need to invest in our future. We need to invest in our own infrastructure and need to pay for decent education and for skills, for constant skills, and unions are the voice for doing that and unions are an important counterbalance to the corporate voice in this economy and this political system. Justin, give us your research, justin. You say less than 7 of current Union Members actually voted in the election that established their union. More than 90 of current Union Members didnt have a chance to vote on the union that represents them and in the last three years Union Organizing has been at an alltime low. Workers dont want unions because unions dont seem to give them anything for the dues that they charge, and dont be fooled. Unions are going to charge between 500 and 1,000 every year and a lot of workers, after three years of a union contract, paying 1,500 or 3 howe in union dues are getting nothing in return. Thats the beauty of righttowork law. It holds unions accountable for the first time in decades. The Union Leaders actually have to try to do something to justify the money that they are siphoning off workers paychecks. Thats why when democrats talk about righttowork laws they have to hold their nose because if there was another entity that was stealing 500 or 700 out of every workers paycheck then those people i am serious. Please. Theres not a single reasonable argument for against right to work . Whats the answer to the fact that close to 12 of workers now belong to a union . Thats fairly half of what it was 30 years ago. I mean, unions have clearly lost some power here. Unions have lost power because unions have been under attack by right wing assaults. Unions are not the victims. Would you be quiet for a second. Not when youre going to deceive people. A lot of employers have also employed have illegally fired workers who tried to form unions. That is so rare. So rare in this economy. Could you be quiet for a second, justin. Its very difficult because of our labor laws which a antiquated also. Its very difficult to form a union in this country. All right. And our labor laws dont impose very heavy penalties on an employer that breaks the law by firing a worker who tries to organize or discriminates against a worker who tries to organize a union. If you ask unions how many want representation at the workplace, millions and millions of workers who say its actually 13 . Its 13 of workers want to join a worker. We did a poll, 13 of workers want a union. This is a topic well continue. Hope youll come back soon to continue hashing this out. Thanks for having us. We appreciate it. New tea leaves on the economy could move your money before w money morkers are going to be here. Stay with us. And then, we are waiting on the meeting between john boehner in and the president in ten minutes. Back in a moment. Ow the progress youre making toward all your financial goals. A quick glance, and you can see if youre on track. When the conversation turns to knowing where you stand, turn to us. Wells fargo advisors. Recognize me. But i am your market data. I know what youre looking for. Im not chained to your desk anymore. Im faster and smarter now. And so much less expensive. I am your market data. And if i do say so myself, i have never looked better. Superderivatives introduces dgx. Data done differently. Welcome back. 30 seconds on the clock for each of oust next guests that coutels what could move the market tomorrow. Gentlemen, good to see you. Brian, we kick it off with you. 30 seconds on the clock. Tell us what will move our money tomorrow. All right, ill be watching the core cpi index coming out. Its expected to remain low at. 1 . The industry Production Report is expected to be positive, after a negative showing last time. Im be watching for developments in the socalled fiscal cliff. This is a known even about fear of the cliff has caused many investors to pull out, creating a real buying opportunity. Finally, ill be watching for the felt, theyve been artificially keeping treasuries and mortgagebacked bonds down. Ill be watching for fund followups into different areas. All right, thank you so much. Chris, youre up. Break it down for us. Ill be watching the bank of japan overnight. They are set to be releasing their Fourth Quarter survey. We are expecting Business Conditions to show continued detear owe ration. Im going to be looking at cpi and pmi readings out of the euro zone. Roughly in line with previous readings. Going to be very findful of potential upside surprising there. Going to be looking at Technical Levels with dollar yen trading just below those 2012 highs around 84. 20 and looking at a potential inverted head and shoulders. All right, good stuff. Right on top. Jeremy, you are up. Last but not least. Tell me what youre watching tomorrow. Okay, were watching out for the cpi report. Were expecting to see inflation pressures continue to ease. Thats important, because its going to keep the fed on the sidelines and supporting the economy with policy for a long time to come. The industry from duction reports also important, last month was weighed down by the affects of hurricane sandy, so, well be looking to see how large the rebound is this month. And then also any progress on the fiscal cliff negotiations. All right. All important events. Thank you, gentlemen, appreciate your time tonight. Thank you. See you soon. Up next, tick tock on the fiscal cliff. President obama and house Speaker John Boehner meeting at the white house just minutes from now. My thoughts on the talks, the fed, and that cliff hanger, right after this. Lets give thanks for an idea. A grand idea called america. The idea that if you work hard, if you have a dream, if you work with your neighbors. You can do most anything. This led to other ideas like liberty and rock n roll. To free markets, free enterprise, and free refills. It put a man on the moon and a phone in your pocket. Our countrys gone through a lot over the centuries and a half. But this idea isnt fragile. When times get tough, it rallies us as one. Every day, more people believe in the american idea and when they do, the dream comes true. Were grateful to be a part of it. Wooohooo. Hahaahahaha oh. There you go. Wooohooo. Hahaahahaha im gonna stand up to her no youre not. I know. You know ronny folks who save hundreds of dollars switching to geico sure are happy. How happy are they jimmy . Happier than a witch in a broom factory. Get happy. Get geico. Fifteen minutes could save you fifteen percent or more. [ male announcer ] you build a reputation by not breaking down. Consider the silverado 1500 still the most dependable, longestlasting fullsize pickups on the road. And now weve also been recognized for lowest total cost of ownership based on important things, like depreciation, fuel, and maintenance costs. And now trade up to get a 2012 Chevy Silverado allstar edition with a total value of 9,000. From outstanding value to standing the test of time, chevy runs deep. Welcome back and finally tonight, my observation on the fed and the fiscal cliff. President obama and house Speaker John Boehner, as we await the meeting between the two, which is happening momentarily. Their offices have confirmed the meeting will be at the white house moments from now and john hairwood is reporting that the meeting will likely last about an hour and could, quote, shake up the talks, presumably in a good way. Boy, i would think the fed and ben bernanke are rooting hard for that one. We saw how the market is moving on every single development out of washington, with stocks quickly coming off of their session lows today, just on the report that the two main players would finally get in the same room, look at each other eye to eye and talk this out. Even with the feds latest contortions yesterday, it freely admits it does not have the tools that will combat the affects of a fiscal cliff debacle. Ben bernanke and his fed cohorts have done the job that congress should have been doing all along. If he had his way, it would not have been the fed doing so much to help this economy. It would have been our elected officials. The job that theyre paid to do. He stepped in because he had to, not because he wanted to. Now, the message is clear. The fed cannot fix washingtons ineptitude this time, if they cant come to a compromise and make a deal. So, you sure can be sure