Riding the viral video wave. South korean artist sy hit money last year. He made upwards of 2 million just from the streams of gangnam style. That was without selling a single track. And youtube versions of carlie ray jepsens call me, maybe helped boost revenue sales of that song. Some may have been surprised they were viral video participants. Heres my number, so call me maybe. Corporate america sees a financial opportunity in all of this. Pepsi is now promoting so da with its very own harlem sheik. This is great for the music industry. People are having fun with music again, and thats probably the most important thing. We thought wed leave you with our very own version of the harlem shake. As you can see behind me, even the bulls on wall street want nb on the action as the viral video craze shakes up the music industry. Alicia taylor, cnn, new york. Thanks for watching today. Lets go to Christine Romans live in new york for your bottom line. Hi, guys. Im Christine Romans and we are live this morning. Did you notice anything different when you woke up . We didnt think so. But the forced spending cuts are here. Washington calls it the sequester. Should you be afraid . Its not armageddon, but it is the opening credits of a very scary movie. Heres the horror story the white house is telling. A world more dangerous than it was yesterday. What the sequester does, it uses a meat cleaver approach to gut criminal investments. The cuts are indiscriminate, some are frightening. Less oversight and fewer audits of some nuclear facilities, hampered counterterrorism around the world, fewer food inspections, higher risk of wildfires. Fewer hiv tests, a more dangerous border. But its a horror story not everyone is buying tickets to see. I think that the president needs to stop trying to scare the American People, that absolutely, you can cut less than 3 without all these awful consequences. Reporter maybe so, in which case, the scariest thing about all of this is that washington is so inept. Its either scary or comical. Like the movie groundhog day. August 2011, a plan to avoid the debt limit pushed the sequester to march 1st. Oh, and this cliff diving isnt done yet. President obama has yet to release a budget for the next fiscal year. That could come in midmarch. Then march 27th, the u. S. Faces the threat of a Government Shutdown. Basically, the feds run out of cash to operate. And congress, scheduled to be on a twoweek break when that deadline hits. So expect more political theater. As for this act, when the House Speaker has to be bleeped we should not have to move a third bill before the senate gets off their [ bleep ] and begins to do something. Reporter and the president says this if its not a good way to run a business, its sure not a good way to run a country. Reporter you know washington isnt working and this scary movie is far from a happy ending. No deal and more deadlines ahead, yay. Ali velshi is cnns chief business correspondent, the host of your money and is joining us from washington where he has a front row seat to this latest debacle. Jean has owned the sequester story like no one else. And greg is the chief political strategist at Potomac Research group. Nice to see all of you this morning. The debt debate to nowhere continues. And theyre still arguing this morning listen. Its happening because republicans in congress chose this outcome over closing a single wasteful tax loophole that helps reduce the deficit. The American People know full well that if they give this white house more tax revenue, it will be spent on new stimulus projects and government programs. Well, that sounds an awful a lot like, say, august 2011, ali. There are three options here. You can cut spending, you dont cut spending, or you cut spending wisely. Right. The last choice is the best, so why is that the only thing theyre not considering. Because cutting spending wisely still cuts spending and were addicted to the kinds of stuff that our government provides. Particularly in the areas that are not really being cut, including entitlements. The social security, medicare, and medicaid. Theres some changes to medicare, which youve talked about and youre going to talk about in the show. But fundamentally, in order to effect the debt longterm this is something that gene has really done a lot of work on, you have got to reform the entitlements and you have got to deal with our tax policy, which is not always progrowth. Taxes are a politically difficult thing to do, so theyre not dealing with that now, but entitlements are the third rail. Theyre just very hard to touch politically. So this allows these cuts to take place, without any one having cast a vote on it. So everybody can wash their hands of the blame. Thats why. I think a lot of people in america this morning are waking up too, and theyre tired of this story. Theyre tired of hearing about forced spending cuts, but mostly, theyre tired about how washington has behaved. Theres also a lot of misinformation about it. I want to bring in jean here. You identified four myths about the forced spending cuts. First, that the world would be different on saturday. Its saturday, and from what we can tell, the sun rose and the sun will set. Second, president obama is to blame for the forced spending cuts. We know both sides played a role with creating this mess, so that one is busted too. Jean, talk to me about those last two, that its hard to cut 85 billion and that the cuts will be bad or no big deal. Yeah, a lot of people are saying, 85 billion, a 3. 5 trillion budget, whats the big deal . Thats true. Thats a fair point to make, but thats not what were doing. Were cutting 85 billion out of seven months of funding for the smallest parts of the budget. Its really more like 85 billion out of 600 or 700 billion. So its closer to a 10 cut overall. What was the fourth one . Im sorry . It either doesnt matter or its good for the economy. Its somewhere in between. There are extremes. Thats correct. We know that the cbo has said, look, this is going to slow growth. Its not going to put us into a recession. Its going to cost us 750,000 new fulltime jobs that would have otherwise been created. Were going to have very tepid growth this year as a result. Even if we didnt have a sequester, the growth would not have been write home to mom about. But now its going to be even less impressive. The president is tone deaf on these forced cuts. I think it has shifted over the course of these months. Lets listen to the president s rhetoric here. First of all, the sequester is not something they propose, its something that congress has proposed. It will not happen. Now, if Congress Allows this meat cleaver approach to take place, it will jeopardize our military readiness, it will eviscerate jobcreating investments. We will get through this. This is not going to be an apock l lips. Ive been using the word armageddon. But the white house told people for months, spend normally. What do you make of the tone and leadership from the white house . And where do we do from here . Well, i think that the rhetoric was so apocalyptic, that it was hurting the administrations credibility. So he had to tone it down yesterday. Going forward, i would add to jeannes list a fifth mist, that it wont affect the market. It hasnt affected the stock market, because theyre on ben bernanke happy pills. But it will affect Interest Rates. And i think one of the more interesting stories in the past few days is the drop in yields and the rally in the bond market. This is still another head wind. The possibility, slim, but the possibility of a shutdown added to the payroll tax hike, added to the sequester, on and on and on, i think this economy will be weaker. I think Interest Rates will stay surprisingly low. I think the markets at this point are giving some cover, if you will, to washington ineptitu ineptitude, dont you think, greg . If you had markets move like tarp, the bank bailout, when markets fell dramatically, suddenly they got priorities in washington. Greg, yesterday we heard both the president and Speaker Boehner say theyre already working to avoid a Government Shutdown at the end of the month. You dont sound like you have any real optimism that thats going to happen. Well, i could give you a scenario. Its below 50 , where you have two dueling cr bills, continuing resolution bills. One by the conservatives would restore funding for the pentagon. Another from the democrats would say, well, if the pentagon can wiggle out, what about domestic spending. If you have these two dueling bills, and you get close to march 27th without a deal, well all be talking, all four of us will be talking in three weeks about the possibility of a shutdown. So, jeanne, bottom line, this hurts whether its sequester that stays and isnt blunted by some of the legislation, or Government Shutdown, that hurts americans . Its not good. I mean, were basically telling people who are going to a job every day, hey, you may get paid less because we might be furloughing if you if you work for the federal government. Or if you work for a federal contract, well, we may have to shut this down because our contract wasnt renewed. It was gratuitous destruction for not a very good end. And i know in education, there are a lot of people in education concerned. I did an Education Conference, i hosted an Education Conference this week, very concerned because of so much of the federal funding goes right to special ed and lowincome students. Thats where those cuts would be focused. Everybody, thank you so much. Have a great weekend. And greg, youre probably right, the four of us will be sitting here talking about this again very, very soon. Unfortunately. All right. Call it investing in crazy. If youve checked out your 401 k or your investments lately, you know what i am talking about. The market is nearing record highs, despite dysfunction in washington. How should you handle it . Ali and i are going to explain that, next. Now you can. With stayfree ultra thins. Flexible layers move with your body while thermocontrol wicks moisture away. Keep moving. Stayfree. [ male announcer ] the rhythm of life. [ whistle blowing ] where do you hear that beat . Campbells healthy request soup lets you hear it. In your heart. [ basketball bouncing ] heart healthy. Great taste. Mmm. [ male announcer ] sounds good. Its amazing what soup can do. Bjorn earns unlimited rewards for his Small Business. Take these bags to room 12 please. [ garth ] bjorns Small Business earns double miles on every purchase every day. Produce delivery. [ bjorn ] just put it on my spark card. [ garth ] why settle for less . 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Call it investing in crazy. The dow and the s p 500 flirting with record highs all week, despite the real or imagined threats to our economy, investors are not scared. Maybe they should be, though. Ben bernanke issued a warning earlier this week. Given the still moderate underlining pace of economic growth, this additional nearterm burden on the recovery is significant. Moreover, besides having adverse effects on jobs and incomes, a slower recovery would lead to less actual deficit reduction in the short run for any given set of fiscal actions. Translation, were going in the wrong direction. 2012 was gangbusters for the market. 2013 is off to an Even Stronger start, though. Mutual fund inflows in january were back with a vengeance. 81 billion moving into the market. Low Interest Rates with no end in sight, courtesy of ben bernanke there and the federal reserve. Consistently strong corporate profits, a weak dollar that have Retail Investors diving back into stocks. Consumer confidence came back better than expected in february, but you have to wonder if thats based on reality. The fundamentals of our economy are still kind of weak. The latest estimate of gdp growth was atechniqnemic in the quarter of last year. Only 1 10 of 1 growth in the Fourth Quarter . Thats not good. Personal incomes saw their biggest onemonth drop in 20 years. But because the Housing Market is recovering, people are probably feeling a little bit better. Consumers are spending more and saving less. Were nearing alltime highs for stocks. But i have to ask the question, are we skating on thin ice here . I want to bring back ali velshi. Ali, heres fridays close, heres the record. Were 108 points away from the record in the dow. I want to pull up a chart on that. Is this rally real . Is it rational . Are we looking at a bubble before it pops . Look at that, the alltime high is 14,198, october 2007. Fridays close, really close to that. 108 points to go. Remember when we used to work and did our reporting from the new york stock exchange, years ago, i dont even know if cable was around then. Oh, stop. Back then, the dow was a proxy for the whole market and the market was a proxy for the economy. Thats all changed. The market is its own beast now. It looks forward, people make money by trading on the differences between stocks and, you know, its not its not an indication of the whole economy. But, look, im a passive investor, right . If im a passive investor in a 401 k , i dont care if these people are trading something, im just looking at my 401 k and saying, hey, its been a really good year. Why is my 401 k statement so good when washington is so bad . Because theres no other game in town. You can buy a house or you can invest in the stock market. If you want faster returns, youve got to invest in the stock market. You cant keep your money in the bank, you get no interest. Inflation beats that. People who are investing in bonds are finding that as the Interest Rate goes up, the value of those bonds and your bond fund is going down, so people are going into stocks because its the only place you can make money. I would be cautious. Weve had a good run up so far, well probably get somewhere between 5 and 9 . Its junior early in the year to predict how the year is going to go, but the advantages of though Interest Rates that you just talked about, that are making people feel wealthy, gas prices that havent gone up for a while are starting to edge down. There are positive things going on in the economy right now. Thats all adding up to a bullish stock market. Remember, the economies that youre investing in, in the dow, and the s p is not performing as well as the dow is, those Companies Generally get a lot of their revenue from outside the United States and they have a lot of cash. Unlike the rest of us who are sitting around, worrying about loans and debt, theyve got cash. And theyve been making the their profits, but without hiring and with having money in the bank. And thats something that can be good for your 401 k , but not good for your neighbor. Thats the interesting place were in in the market right now. If youre not investing in this market, hold on for a pullback. Dont buy just as a record is being set. If you are invested, sell some of your gains and be ready for a pullback. Always rebalance. Be always look to rebalance and you get every downdraft and updraft in the right direction. Thanks, ali. Talk to you again at 1 00. Coming up, lets get away from washington and closer to your backyard, maybe inside your house, actually. If youre selling and havent had any offers, could it be your paint color or the placement of that couch . Why home staging might help you sell your house. The battle of bataan, 1942. [ all ] fort benning, georgia, in 1999. [ male announcer ] usaa Auto Insurance is often handed down from generation to generation because it offers a superior level of protection and because usaas commitment to serve the military, veterans, and their families is without equal. Begin your legacy. Get an autoinsurance quote. Usaa. We know what it means to serve. Progressoh [ female announcer ] with 40 delicious progresso soups at 100 calories or less, there are plenty of reasons people are saying progressoh share your progressoh story on facebook. She cant always move the way she wants. Now you can. With stayfree ultra thins. Flexible layers move with your body while thermocontrol wicks moisture away. Keep moving. Stayfree. With the budget crises of its own making washington probably hasnt noticed that the Housing Market is coming back. More strong evidence of that this week. Even in the new york area, prices arent rising as fast as the rest country. Convinced, spending money on homes now means more money late perp this home has 30 seconds to make a first impression. Clean up the beds. Cut back anything that should be cut back. A home stage sr prepping the husband for sale. Gets your home sold faster for more money. Reporter claiming 73 faster. The idea, youve got to spend money to make money. Usually 3 s to 3 of the asking price. This homeowner is in. Im hoping when were ready to sell this house will get dop dollar and people will come in and have the wow factor. Reporter achieving that wow factor will cost her 7,000 if she acts on all of the suggestions. She has to declut around repaint the kitchen. Im really trying to either pull out the gray or a lighter gray so that the cabinets stand out. You want a minimum of three large i pliappliances. Move everything off your refrigerator. Reporter living room furniture downsized and rearranged. A spacious living room but not looking like that now because theres large pieces of furniture in here. The rule of thumb is to remove more than keep it in here. Reporter same thing in the bedroom. If you have a master bedroom that has a sleigh backing on it its eating up 6 to 12 inches of your Square Footage in your home. Reporter new Hardwood Floors go in here, which will be staged as a second bedroom. But the biggest expense isthis the tile was old and starting to crack. Reporter allin, a 7,000 gamble her realtor says will pay off. Another 15,000 to 20,000. Think about the return. Reporter a bet this homeowner will take. So happy people are buying and selling houses again. Up next a bold move. Yahoo . The calling back of the telecommuters an example of good business, poor communication, or both . The American Dream is of a better future, a confident retirement. Those dreams have taken a beating lately. But no way were going to let them die. 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Choose 2 cash back or double miles on every purchase every day. Told you id get half. Whats in your wallet . Yahoo ceo recrovoked the longtime work from home policy. Is this the right thing for a economy shes trying to rescue. Tweeted, cheers for her for making staff show up at the office. Nopt afraid to be retro when it works. Others shot it down. Founder of verges group wrote, this seem as backwards step in an age when Remote Working is easier and more effective than ever. Isnt just an executive. A mother, too. A nursery in her office to spend time with her infant son. I want to bring in founder and prend president of a company and also of take your daughter to work day. You were one of them getting girls in the office and now arguing whether in show stay in the office. Is this the right thing for yahoo right now and why is it sending such a big message to the rest of women out there that, hey, you know, now weve got to play on a Playing Field again, and this might not be great i think its the right th for yahoo . We all want marisa to be successful. If think is what she thinks would get her there, thats important. Could have handled it better rather than being edict. The desire to keep your children close to you what is she doing a 37yearold woman, the first pregnant woman that to be nut a position of ceo of a fortune 500 company. Why does she have to be suddenly a model of feminism for working mothers . She wants to do the job like a man would. To win. Win in a company right. But she also has a family and we have an opportunity here