Markets. The firm did not admit any wrongdoing as part of that settlement. Well talk more about that to come. Liz home prices in the u. S. Continuing to rise. The s p caseshiller index jumping 2. 4 in may. Prices in each of the 20 cities measured rose at least 1. 2 . Prices are now up 12. 2 yearoveryear, not bad. David and were going to talk about cps and Time Warner Cable, theyve agreed to extend their negotiating deadline until 5 p. M. On friday after a short blackout last night of the cbs network in some markets on Time Warner Cable systems. Liz eurozone sentiments picking up in july reaching the highest level since april of 2012. Sentiment across the 17 countries rose to 92. 5 from 91. 3. David also a pennsylvania judge has ordered three former penn state administrators to stand trial in the Jerry Sandusky child sex abuse scandal. The judge ruled prosecutors have shown enough evidence to warrant a trial for expresident graham spannier, former vp gary schultz and exathletic director tim curley. Busy hour coming straight up, after the bell starts right now. Liz lets get to todays action. We head to the pits of the, with me with larry. Is everybody talking about this fed meeting, waiting to hear what ben bernanke and company say, not necessarily dosome. You know, i think they are. Theyre thinking about that, also what will carney do, the bank of edge bland, what will happen with drag by . We have pmis and job, so theres a lot to talk about. People havent packed up for the jersey shore yet, but they are getting ready to after this week. David well, larry, i have never in my lifetime, and im thinking back to paul vocker and before, ive never seen a fed chairman who is more afraid of spooking the market than ben bernanke. It seems to be the utmost fear in his mind, hell do anything he can to avoid that from happening. So dont you think nothing is going to happen tomorrow . He doesnt want to spook the market. Hes not even going to to have a press conference. Yeah. Hes been the most overly transparent fed chairman weve ever had, at least in my history as well. I dont think its going to be very antiicallimatic. I think traders are looking beyond this, more are worried about who the next fed chairmans going to be, not what the feds going to come out with tomorrow. That said, the drama seems to be more about summers or yellen, whos it going to be . Is. Liz we wont know that nor several months, as we know, but take, for example, whats on the screen. The dow winners were the big names, intel, and then the lag a asker, verizon, at t. Can you distill anything from the movements of the stocks you saw in the pits today that tells you how stocks will move in general in the next couple of months . Yeah. I think were surrounded with all these vague generalities in the marketplace whether it be global growth. Its kind of, sort of okay. Valuations are far from cheap but far from expensive, and will the fed keep rates low for as long as possible . So with that said, people are realizing different sectors in the market have undervalued. Theres a financial repression system where people have to take risks somehow, so now theyre picking up on more of a tech sector which has been the redheaded stepchild for so long. Thats what everythings going to happen over the next few months. David okay. Hold on a second, larry, were going to come back to you, but Dennis Kneale has the earnings on Buffalo Wild Wings. Reporter a big beat by Buffalo Wild Wings coming in earnings at 38 cents a share 88 cents a share. Wall street looking for 79 cents, and that heenes earning growth was 42 instead of the 27 growth wall street was hoping for. Thats a great thing. On revenues, though, only a slight beat. David well, and look at the stock going down after hours, dennis. Were seeing a big drop in that stock. Perhaps its revenue, perhaps its something else. Right now samestore sales up only 3. 8 . At the start of the quarter they were oning up 5. 2 and a year ago samestore sales were rising 5. 3 , so thats a market slowdown of 3. 8 for buffalo wild wing, and that might be why stocks going down. Got to see if the companys put out some revised or downward outlook. David one of the things investors were hoping for was more growth on the bottom line because theyre paying less for chicken. The price per pound has gone down quite a bit, and yet that is apparently not helping after hours. Actually, it has helped with their earnings, 88 cents instead of 79 cents, so that probably is entirely because of that lower cost base, but wall street wants to see really good revenue growth. Across the economy. You kauais have cut your guys have cut your costs, but we want to see top line growth. Liz and then when you dont get the bottom line, you want the top line. Listen, i know, but this is the first beat for this company in five quarters, larry shill very, not getting any love or credit for that at the moment, the bid, the ask around 95 when the close was 97. 69. Yeah, youre exactly right. It seemed like wall street had all these Great Expectations baked into the stock already, so this is a accuracyic case of classic case of buy the rumor and sell the fact. Where else can you go in america where you walk in and its like a party . You have half the room of kids and adults, the other half is a sports bar. The food is, well, thats a different story, but people tend to really like their food. Its a very, very i yahoo anemic atmosphere, unparalleled. Is it a hundred dollar stock in im not sure, but theyve baked in a lot of expectations Going Forward. It was 35 restaurants, now its 940 in 49 states including canada, so how much more room for growth is there . To shes crated a great, great business model. David larry, this earnings season we had a little improvement on the revenue side than the first quarter. Certainly didnt hurt stock valuations as they continue to rise no matter what, but are we as we look forward, are we looking to a a point where investors be they dont see revenue growth, theyre not going to put their money in the stock . Picking that point is impossible. I wish i could do that. But at some point if revenues and earnings per shares dont continue to go in lock step with the price of the stock, theres going to come a point in time where momentum takes over. We dont know when thats going to be but, yes, eventually thats going to happen. Well have to have a healthy correction. 14 times earnings per share going out in 2014, we still have room for a negative shot in the market, so we still have some room to go if things continue to go status quo. Liz lets give a nod to our commodities viewers because youre right there in the seat of whats going on. I know that floor, and i know that the soy guys are around the corner, but lets talk about most of the Precious Metals and base metals moving lower today. Yeah, they were. Golds had a really good shortterm run, a little bit of profit taking. India came out this morning making it more restrictive for them to buy gold. Thats a negative tone. Especially in gold was due to the fact that china just lowered their floor or eliminated their floor on Interest Rates making it a lot easier for import of gold. When it comes to aluminum and copper, its really about the emerging markets as the output gap continues to shrink. Were not seeing the fundamentals to support a longterm bull market in any of do david larry, weve got to talk about oil. That was a big move to the downside. Is it going to continue . I by it would, but my i wish it would, but i still like brent over im sorry, texas over brent. I do think well continue to move down. It seems like japans not going to import the oil that most of the world thought they were going to, and that goes along with the emerging markets inside of asia. Were seeing less andless demand right now, so were going to see a little bit of a reprieve in the oil price. Liz larry, thanks, and well see larry when the s p futures settle. Well be watching off of this. David thank you, larry. Well, the president extending a new offer to republicans proposing an overhaul of the Corporate Tax system in order to generate revenue for jobcreating programs. So thats his formula. Will this finally break the impa pass that weve seen on capitol hill and lower those corporate rate this is and does that lowering go far enough . Glenn hubbard is the former chairman of the council of economic advisers. Glenn knows. He joins us in a moment. Liz plus, some recent Economic Data suggests that europe may be turning a corner, and its not just european stocks that will benefit, in fact, it might be stocks here that move first to the upside. Up next, we break down how to play europes recovery with u. S. Stocks. And we would love to hear from you. A new job posting on twitters page, and that posting is for a Financial Reporting manager. Well, that has rumors swirling that an ipo might be around the corner. Would you buy shares of twitter . Log on to facebook. Com afterthebell. Well read your answers later this hour. [ male announcer] surprise youre having tripts. [ babies crying ] surprise your house was built on an ancient burial gund. [ ghosts moaning ] surprise your car needs a new transmission. [ coyote howls ] how about no more surprises . Now you can get all the online Trading Tools you need without any surprise fees. Its not rocket science. Its just common sense. From td ameritrade. Its just common sense. Peace of mind is important wn so we provide it services you bucan rely on. With centurylink as your trusted it partner, youll experience reliable uptime for the netetwork and services you depend on. Multilayered Security Solutions keep your information safe, and secure. And responsive dedicated support meets your needs, and eases your mind. Centurylink. Your link to whats next. Liz Take Two Interactive just came t with numbers, lets see what the narrower than expected loss was. Dennis has it. Yes, take two interactionive coming up with a beat on the downside. This was a company that was expected to have a loss of 54 cents a share no, expected to have a loss of 57 cents, and it comes in at 54 cents, better than expected. A huge plunge in sales. Sales come in, though, better than expected. Wall street was looking for 125 million or so, down 44 from a year ago. Instead it comes at 144 million. But that is still way off the 26 million. These Video Game SoftwareCompanies Live and die by product cycles and compares comparisons to when you had a good product the year before. Were burrowing through the rest of the ruttings. David problem or not, the stock is up after hours about 50 cents. Liz david david theyre coming out with grand theft auto number five, theres a lot of anticipation about it. Could that be one reason . Could there be some indication that grand theft is going to do well . Yeah, i think so. Youre waiting for that next big upgrade to come out there just in time. They want to introduce it by september, just in time for the new Microsoft Xbox i and the new Sony Playstation iv because new engines end up driveing purchases of these upgraded games. Liz yeah, and by the way, 17 of the float is being shorted, dennis, so this is maybe a little bit of a short squeeze here. Thank you very much. Take two interactive trading often. S p pits closing right now, lets head back to larry shover. Ended between 1680 and 1700 for a week and a half. Look at the u. S. Dollar, six weeks on a tear only to give back 50 of its wanes in three weeks gains in three weeks. Decoupling, rebalancing,sition. We have lot of news coming out with the fed, bank of england, mof im sorry, ecb, jobs report. We have a lot of things, and i do believe the markets being a little casual, maybe even naive about what could happen. Im not calling for a crash, im just saying we have a lot of information, and we just dont know whats going to happen by the end of the week. David p be e for the s p Going Forward is still not overvalued, so people say there could be room for growth. Yeah. David larry, thank you very much. Pharmaceuticals, we havent talked about them today. Two big giants reported earning3 earlier. Lets head back to Nicole Petallides on the floor of the new york stock exchange. How did they fare, nicole . Both are dow components, two huge names in big pharma, pfizer a winner, up about half a percent, merck down about a half a percent. Both companies have tried to keep their costs down for marketing and such, but also they both have the same situation which is generic competition. Having the patents expire. Merck, for example, for singulare lost 80 of sales because of that. When you see that these companies dont have the big drugs to get out there, that, obviously, gives them some intense competition from the generic market, and thats something they both have noted. And thats what were seeing. And merck also talked about research and development, a little weak in that area. David thank you, nicole. Appreciate it. Liz thanks, nicole. Europes battered economy may actually be finally showing signs of life. Heres what happened, because weve heard those headlines before a couple months ago, but now we got better than expected Economic Data hitting the markets. Weve got someone whos got two important ways to play europes recovery without even buying european stocks, and he says you need to focus on u. S. Companies instead. Joining me now is steve, webbush securitys equity analyst. Lets go macro and find out why we should believe now just from a couple pieces of data that its really a true turn around here . Right. Certainly were seeing just early signs right now, liz. You know, europe has been weakening from a demand perspective since mid 2012. You know, q2 is probably too soon to see any real improvement there. Weve tracked the pmis, the qloabl pmis like everybody else, the european pmis, recently those have turned up really since may weve seen a bit of improvement in both indicators, both their leading indicators and could translate into better demand conditions later this year. Liz steve, i think you make a great point and that is just because its tentative doesnt mean that now isnt the exact time people should be coming in. You do want to be maybe a little early and ahead of the curve certainly. So if you are, lets talk about your theory about buying u. S. Stocks and what to look for before we get to your names when it comes to picking a stock that might benefit from the european recovery. Right, okay. Well, the two important ingredients there, liz, are the more cyclical the stock, the more rev language its going to have liz define cyclical the way you see it. Yes. So certainly in software we have two types of growth, we have secular growth from technology transmarket adoption, new types of computing, we also have cyclical trends that stem from demand conditions. You know, in cases its enterprise buyers being more or less willing to part with cash and open up their pocketbooks to buy. Liz enterprise, for those of you dont know the lingo, really means corporations and businesses. So you gave it away, you said software. Lets get to your first name, that is autodesk. This, of course, is a huge company in the United States doing architecture software, so i am guessing there are huge operations in europe that really like this stuff. Yes. Autodesk issalmost 40 of the revenues coming from europe, and they are, as you correctly identify, exposed to architecture and engineering services. Also heavily exposed to Global Manufacturing. So both of those being very cyclical components of the economy. Liz see, this is im liking this story a lot was what you are, in essence, saying is that this is an opportunity to go for companies, the exact companies, steve, that lot of people have said stay away from over the past year, right . Well, certainly people, you know, autodesk is a very cyclical name, and, you know, people are more willing to play it when we start to see signs of Economic Conditions improving. Youre right, if we do see outright improvement that then translates into good fundamentals, in some cases its too late if youve got purely a cyclical play. Autodesk does have some secular drivers as well in terms of their growth of recurring revenue in their mix and their growth is up, revenues from their suites. But heavy cyclical component, and if there is an upturn, you know, you want to be buying at the front end of that. Liz and it is up only about 6 over the past year. Your second pick is called ptc. Explain this one. Thats right. So ptc is also like autodesk, they sell Design Software. And in ptcs case, its Design Software that helps engineers create product designs which then become the basis for manufacturer products. So ptc sells to large Global Manufacturing companies that design products. And so in that market position they are haley exposed heavily exposed to europe. Certainly its another case of near 40 of revenues coming from europe and another case of a company that does have a strong cyclical component to their growth because of that exposure liz we should also let people know if the s p 500s up 22 over the last two years, which it is, this companys started to do pretty well. Steve, its great to have your ideas. Thank you so much. Thank you, liz. Liz weve been having a lot of wetbush people on, they are very creative. David because theyre smart and make money. Well, another bruise for apple as the Company Faces a Class Action Lawsuit from its u. S. Employees now. Details straight ahead. Liz and the president calling for a restructuring of business taxes as he looks to offer fresh economic ideas that could possibly pass the Gridlocked Congress . What does it mean for the nations Largest Companies who are looking for some release . Glenn hubbard, dean of the Columbia Business School and former chairman of the u. S. Council of economic advisers, knows. Hes going to join us next. [ male announcer ] if youre taking multiple medications, does your mouth often feel dry . A dry mouth n be a side effect of many medications but it can also lead to tooth decay and bad breath. Thats why theres biotene. Available as an oral rinse, toothpaste, spray or gel, biotene can provide soothing relief, and it helps keep your mouth healthy, too. Remember, while your medication is doing you good, a dry mouth isnt. Biotene for people who suffer from dry mouth. David thats right. It is time for a quick speed read of some of the days other headlines, five stories, one minute. First up, samsung looking to raise its bet on next generation screens. The south Korean Company is reportedly in talks to buy german lighting specialist for more than 200 million bucks. The digital camera is fading in popularity. According to a report by the camera and imaging products association, global shipments of these cameras plummeted 42 in the first five months of the year because everybody has a camera with their phone. Apple retail workers in new york and l. A. Have filed a classaction lawsuit claiming lost wages over bag searches at the end of shifts and meal breaks. The suit claims apples policies amount to 1500 per employee per year. Thomson reuters twitter account was hacked by syrian activists. A group of hackers calling itself the Syrian Electronic Army post ad series of political cartoons and depict the war in syria. Company announced plans to add a button to report abusive tweets following an online Petition Campaign urging twittory make changes. That is todays speed read. Liz who will decide what is annoying. David good point. One persons annoying is another persons exciting. Securities Exchange Commission chair Mary Jo White getting grilled by congress. The Senate Banking committee questioning her progress writing new Financial Regulation and commodities trading by big banks. David peter barnes joins us from the nations capitol with all the details. When everybody said she was appointed. She would be controversial. Indeed she is turning out to be so . She is getting good start out on this front. The sec is looking to update Insider Trading rules for commodities markets, david and liz, in that hear today. This follow reports that Jpmorgan Chase and Goldman Sachs had Large Holdings and copper aluminum in warehousing operations they own and operate. Critics say this distorts supplies and increases prices and also may allow these banks to trade derivatives on those metals based on their own internal knowledge of the size of their holdings. Now thats not illegal but one senator today asked if regulators should update their rules to limit this kind of activity. The chairman of the sec said the agency is looking into as well as disclosure issues around this kind of trading. I think its a subject matter that once it came to my attention, that is fairly recently, ive actually asked the staff to examine, you know, that question. I mean are those series of questions. I cant really respond further at this point. Now separately the cftc said it already has new rules in place to prohibit fraud and manipulation in metals trading. It report he had is looking into this issue but its chairman warned that banks are not only holders of commodities who may want to trade on inside information about their holdings. A Grain Elevator operator a farmer, rancher, may know something about their crop and want to hedge that. We would not want to diminish that farmer, rancher, Grain Elevator operator to hedge that risk. Separately chairman white said the sec is perhaps a month or two away from issuing a proposed rule requiring Public Companies to disclose how much their chief executives earn compared to their workers. Its a prounion provision that was included in doddfrank financial reform. David and liz. Liz peter barnes, thank you very much. David thank you, peter. Well theres a new study out suggesting that the Affordable Care act may force nearly 800,000 lowincome workers to quit their jobs but the author of that study says that could actually be a good thing . Quite a flipside. We have the author for a big flipside you will not want to miss. That is coming next. Liz plus president obama has a new plan to spur job growth by reforming the Corporate Tax code. Will his plan work and how will it impact the nations largest corporations . Glenn hubbard, former chairman of the Council Economic provides source weighs in on this next. [ male announcer ] if y cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. But hurry, offers end july 31st. Liz time for a look at todays market drivers. The Dow Jones Industrials end ad teeny bit lower as investors turned cautious ahead of feds policy decision tomorrow. The second day in a row where the dow moved lower. It is longest losing streak is two days in six weeks. Telecom and energy were the worstperforming sectors. We have u. S. Home prices posting their largest annual grain since 2006 rising 12. 2 in may compared to one year ago. Caseshiller 20 city index is up 2. 4 month over month. Consumer confidence is close the highest level it has seen in five years. Conference board, sorry. David she moved the earth. Liz Conference Board reported index fell to 80. 3 from 82. 1 in june. Dont push the desk. David president obama, calling on washington to work on some kind of grand bargain that will be focused on reforming the business tax code, specifically lowering the Corporate Tax rate. So is this a step in the right direction . Does it have a chance of passing . Liz joining us Glenn Hubbard dean of Columbia Business School and former chairman of the president S Economic Council of economic advisors. His latest book, balance, economics of great powers from ancient rome to modern america. David wow. Liz which would be appropriate sort of segue here. Will the plans that were announced today help to bring us to great economic power once again . What do you think . Thanks the short answer is no. The good news the president is talking about tax reform. That is probably the best thing the government can do however the president s corporate reform would actually raise taxes on Multinational Companies on top of tax increases weve already seen on small business. So its the right conversation but not a great start. David well you know, a lot of with their feet. We had three mergers announced yesterday between u. S. Companies and Foreign Companies and in each one of those, the u. S. Division was moving to a foreign country, most of whom, i think all of them have much lower tax rates. In the case of one moving to ireland. Corporate tax rate in ireland is 12 1 2 . Isnt that Proof Positive if we dont lower our rates jobs are going to go overseas . We definitely need to lower our rates and the president s proposal to move to 28 is a good idea. Keep in mind, Small Businesses outside of c corporate status just had their taxes increased by the president earlier this year. We need to think of Business Tax Reform as a whole, not just Corporate Taxes. Liz lets put out some of the ideas that the president has proposed just to make sure we clarified that. As you said, lowering the top rate to no higher than 28 . Some of the other ideas, simplifying tax filing, increasings incentives to invest in small business. Manufacturing tax rate no higher than 25 . The manufacturers are getting even better deal here, glen. They do under current law. We dont need special preferences for manufacturers. We need a tax code that makes sense for all business and let business and investors decide whats best. The idea of lowering the corporate rate, great idea but i dont think the president has put out any specific proposal on how he would get this done. David weapon, heres the extraordinary thing we all have to keep in mind. Effective tax rate after all deduction counted in and all those millions of dollars paid for lawyers and tax accountants, the effective Corporate Tax rate for most companies in america, the amount is about 13 . Why dont we just lower the Corporate Tax rate to closer to that, effective tax rate, maybe to 15 , which would draw businesses back and get rid of all the deduction . We might not be able to get all the way to 15 but really cutting deep and knowing that we would have more investment, more money, more income being repatriated back to the United States david dean, let me argue with you for a second because you are the dean of a Business School and i am a lowly business tv anchor. I will argue with you. If the effective tax rate is 13 , why not say lower it to 15 which is actually higher than what corporations are really paying . I dont think the effective tax rate on all Corporate Income tax is anything close to 13 . David according to the wall street journal that was the amalgam. I dont think that is quite right. David youre the professor. We could really get the rate lower. The spirit of your question is absolutely right. What is a little concerning about the president he would simultaneously raise taxes on our largest, most successful Global Companies and he already has on small business. Sadly think is more theater than tax reform. Liz can i ask you how you get to that math of raising Corporate Taxes on the bigger names when in essence he is saying the Corporate Tax rate would be reduced to 28 from 35 . Well, but theres also special provisions on Multinational Companies and minimum taxes on overseas earnings. So one has to be very careful and look at the fine print. The president really hasnt put out a proposal at all. He is rely restating a plan he made months ago from his own treasury department. I think we have to wait to see a plan. Real tax reform has to be led by the white house. Not an idea, not a trial balloon, a plan. David glenn, some people look at regulations and they see regulations as another tax, particularly for corporations. We just had the jpmorgan hit with a 410 milliondollar fine by the federal Energy Regulatory commission. They didnt agree they did anything wrong but kind of these sort of regulations that very often corporations will just pay off. Thats an expense that has to be taken into account. Is that expense going higher . Well, that expense has drifted higher and add to that litigation and policy uncertainty, all of these things are dampers on investment. To come back where we started, this tax reform discussion, absolutely the first sort of one to have and the president needs to go further. Liz then looking forward i want to go back to one thing you quickly said about whether manufacturers should not have a lower rate. I talked to the head of ford, alan mulally. Who feels because manufacturing jobs are so tentative here in the u. S. You would want to incentivize manufacturers to bring jobs here and by doing so, by lowering that rate to 25 that would be certainly something that would do that. Thats what, actually former treasury secretary Timothy Geithner told us a year ago in may. That the manufacturers should get a good deal there. Im all for lower tax rates on anybody. I dont believe in industrial policy we shouldnt pick winners and losers. Lets get the rate down. If you lower tax rates in anufacturing in revenue neutral reform, you have to raise them for somebody else. Why . David bottom line i dont think well see the change. Were pretty far apart. This discussion will lead to something an president has to go further. David dean Glenn Hubbard, Columbia Business School. Wonderful to see you. Liz thanks very much. David a new study says the Health Care Law will cause 800,000 low income workers to ditch their jobs. Our next guest says, believe it or not, that could be good news for the economy. Thats a tough sell. He will be here to make it next. Liz two reality tv stars getting a serious dose of reality, facing up to 50 years in prison on fraud charges. Well bring you all the details next. Im Dennis Kneale with your fox business brief. Factory outlet posting better than expected Second Quarter results the company Beat Estimates by a penny at 18 cents a share. Revenue also topping forecasts at 91 milllon. Pfizer agreeing to pay nearly 491 million to settle accusation of off label marketing of its kidney transplant drug. It ends a longstanding probe pfizer inherited when it bought Wyeth Pharmaceuticals in 2009. Pentagon reach as 7 billiondollar deal with Lockheed Martin for 71 more, f35 fighter jets. This was include ad 4 differs count. This al louis them to produce all the jets intended despite budget cuts that took effect in march. That is the m latest from fox business, giving you the power to prosper only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. They help save you up to thousands in outofpocket costs. Call today to request a free decision guide. With these types of plans, ull be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and youll never need a referral to see a specialist. Join the millions who have alrdy enrolled in the only Medicare Supplement insuran plans endorsed by aarp. And provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. David a new study out says the Affordable Care act could cause 800,000 low income workers to quit their jobs and sign up for medicaid, but, and this is the really controversial part of the study, the authors claim that might not be a bad thing. That all these workers would quit. Here to explain, assistant Professor Northwestern UniversityKellogg School of management. Craig garthwait. At the time lets take this step by step. Why would obamacare cause 800,000 workers to quit. What we have in the United States were sort of unique in the industrialized world, we have a scrounge link between employment and Health Insurance. The Affordable Care act will weaken that link by allowing people to Purchase Health insurance at a fair price outside of the Health Insurance market. David there are tax reasons for that. But go ahead. As a result . As a result some people who are working solely to get access to Health Insurance will choose to leave the labor force. Think about people like older individuals who are retired, who have not quite old enough for medicare. Who are working just to be able to buy Health Insurance through their employer because there is no way they can buy on the individual market. David okay. Why would that be a good thing . Well, i dont think it is necessarily a good thing but not clearly a bad thing. What well allow, well allow people to make their employment decision, sort of unrelated to the Health Insurance decision. Health insurance is really the only good in the United States that we require someone to be working in order to purchase regardless of the amount of money they have. That leads to a lot of inefficient decisions by people. David all right. But there are some people who say that actually could be a good thing if these people quit but would i think doesnt that assume that no good actually comes from their work . If it would be better if they quit . No, no. You can think about individual who is have worked their full career and want to retire at 63 but just cant get access to Health Insurance. More importantly think about people who would like to leave and start a small entrepreneurial venture but they cant, there is no way they can get Health Insurance for themselves and a small number of employees. This would allow more economic freedom. David i understand. But this economy where Unemployment Rate is so high, if anybody is working without creating value, value that they could be better placed in another job, wouldnt they be out of work . Not that theyre creating no value. They could create more doing something else. You have to think with so many jobs compared to, so many people compared to the number of jobs that are available, if some people want to retire you will create room for other people to move into their jobs. All right. Now, your study was based on stats from tennessees attempt back in the mid 90s. Tennessee attempted to expand its medicaid system and your study is based on the results of that. In the end, wasnt tennessee forced to abandon that model because it was unprofitable . Yeah. I mean, well i dont think we think about health care wanting to be profitable. It ended up being very costly for people, to offer it david it has to be profitable if any of it is in the private sector. Correct. We dont think the government is trying to make a profit on health care. What we want here, we want to talk about what some of the benefits are of the Affordable Care act. It doesnt mean there arent going to be costs. The sense of the bill as a whole, looks like things based on our study and other people that the bill will be more expensive than we thought when it was padded. We have a make a decision as a country whether we want to pay those costs. We want a good sense of what the costs and benefits are so we can make that decision. David unintended consequence, my god, there are some in this bill. I do agree with that, yeah. David professor, great to see you. Appreciate you coming in. Thank you for having me. David liz . Liz two stars of the hit reality series, real housewives of new jersey, face real life indictment after getting charged with fraud. We have got the details next. Liz well the reality tv business got a real jolt of reality today. It is quite unbelievable but the fraud indictment of two stars of real housewives of new jersey. David i shouldnt laugh because were talking about real jail time here. Dennis kneale is here with the reallife plot twist. Dennis . David, two of the highest flyers on real housewives just got shot down to work. Teresa and joe giudice, making their First Court Appearance after getting indicted on 39 counts of mail an wire fraud, bank fraud and making false statements. So im sorry for their pain, guys, but i cover Media Business and the first question that arises is, might this actually be good for the ratings of real housewives of new jersey on the bravo channel . Im thinking so. Now the new Jersey Chapter is the fourth version of franchise and also may be the most obnoxious. Theresa, who is kind after famous table tosser, releasing this statement today. Today is the most difficult day for our family. I support joe, who is wonderful husband and father. I know he wants only the best for our lovely daughters and me. She goes on to say she looks forward to resuming her career, such as it is. The charges sound curious. It makes you wonder whether prosecutors themselves are trying to steel reality tv limelight. The prosecutor put out this finger wagging statement. Everyone has the obligation to tell the truth when dealing with courts, paying their taxes and applying for loans and mortgages. Thats reality. Get it . The indictment alleges the couple submitted fraudulent mortgage and loan documents to lenders from 2000 one to 0before the show began but thousands of people, maybe millions, gleefully signed up for liar loans in the housing bubble. Have you seen any of them get charged with anything . And when the couple filed for bankruptcy protection in 2009, the indictment alleges they concealed businesses they owned, rental income, teresas fat check from the reality show and joe, the feds say, failed to file tax returns from 04 to 08 even though he had income of almost one million dollars. So how is it that he raked in a million bucks but had to lie on their Mortgage Application . You got me, guys. If you tune into the next season of real housewives of new jersey, you just may find out. Liz and dave . Liz we shall pass but i know some of our viewers will watch and let us know. Dennis, thank you. Okay. David thank you, dennis. At a whopping, i will not tell you how much. This is the most Expensive Hotel suite in the entire world. Big names, bill gates, rihanna, richard branson, have all stayed there. Well give you inside look at the glitzy room. Oh, there is the price tag. 80,000. Well show you inside coming up. announcer scottrade knows our clients trade and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Voted best Investment Services company. David time to go off the desk. You already know the number. Talk about a room with a view . The royal penthouse suite in the Hotel President wilson in geneva, switzerland. This is said to be the most expensive suite in the world. Lets show us pictures what it looks like. This is 80,000 a night. 80,000 a night. You stay in 18,000 square foot suite, it features 12 bedrooms, gymnasium, jacuzzi, own personal chef and butler and security. Beautiful views of lake geneva and alps. A lot more celebrities. Bill gates, rihanna. You can afford Something Like that. Liz do think put chocolates on the pillows . David good question. Liz i will be live tomorrow grand opening, jobs in america, dow chemical new research and development facility. This is in college iville, pennsylvania. Well bring everybody exclusive interviews, ceo of dow chemical, Andrew Liveris and pennsylvania governor tom could be bert. What did he do do get the jobs . Very cool demonstration like bendable paint. David i bet they want the Corporate Tax rate to go lower. Melissa im Melissa Francis and here is what is money tonight. It may be the Biggest Energy gamechanger through fracking you probably have never heard of it. It is buried in the bottom of the ocean with more energy than anything on the planet. Well tell you all about in just seconds. Plus, who calls the financial shots in your house . Oh, you think you do . Your spouse probably thinks otherwise. A new study says that the divide between couples is wider than the grand canyon. We have details on how the power of money is impacting marriages anywhere. Who made money today . There are not any roadblocks in their way to make profit. Not sure who it is. Stay tuned to find out