Transcripts For FBC Varney Company 20121210

Wolverines state set a stage today. Item one, four hours from now, president obama visits a suburb of detroit. In that near bankrupt city asks for a bailout. Will the president oblige. Organizationed labor health. The right to work legislation. The unions hate it. Will the president step in . Detroit voted for him, the unions, mr. Obama is there, what is he going to do . China is here buying part of the bailed out aig, buying 123 Battery Company and buying american mansions. Thats what happens when china has the money and weve spent all of ours. Or losing money can pop up anytime. Thats why she trades with the leader in mobile trading. So shes always ready to take action, no matter how wily. Or weird. Or wonderfully the markets behaving. Which isnt rocket science. It just common sense. From ameritrade. I heard you guys can ship ground for less than the ups store. Thats right. Ive learned the only way to get a holid deal is to camp out. You know weve been open all night. Is this a trick to get my spot . [ male announcer ] break from the holiday stress. Save on ground shipping at fex office. Two big stories coming together today in michigan. First off, the new right to work rules will become law tomorrow. The unions are absolutely furious out protesting yesterday and big demonstrations still to come. Listen to this. And tuesday, theyre going to try to reconcile the bill and the governor who said he didnt want the legislation now all of a sudden says hes going to sign it. Its an attack on working families. Whoa, an attack on working families . Ill have my take on those exact words and what they mean in the next hour. Meanwhile, president obama will visit a chrysler plant just outside detroit today. Remember, a City Council Woman last week said the city deserves a federal bailout because the city helped reelect the president. After the election of jimmy carter, the honorable Coleman Alexander young, he went to washington d. C. , and came back home with some bacon. Stuart well, you heard the rest from there. The lady goes on to say its a quid pro quo give us the monny because we voted for you. The question, will the president offer any hint of a bailout, bailout help for deeroit today. Will he address union anger at michigans right to work legislation . This goes to the heart of Government Spending and the position of organized labor in president obamas second term. Were right there in michigan. Lets go to facebook. Weigh in on whats happening there. Will detroit get a bailout and what do you think about the unions . Will they win . Good questions all. Now, one of the worst blowouts in nfl history. Seattle seahawks beat Arizona Cardinals 580. The cardinals threw four interceptions fumbled four times and gained 154 yards and seattle undefeated at home and then theres this. The new york giants scored only 52 points in the win over the new orleans saints. The star was the rookie and he returned the kick off for touchdown and all purpose yards and kept the giants in the lead. And major result for the economy. People having fewer babies, blaming the economy and one woman who took a chance and had six children anyway. Well have that and of course the opening bell right after this. Less than a minute to the opening bell. Theres the news background that says that Consumer Spending wobbles. Consumer spending Unemployment Rate at four year low. The only reason its down is because the 350,000 people stopped lookinggfor work and the work force shhank and thats surely not good news. In a moment youre going to see if you look carefully at the lower box there on the lefthand side of the screen, those people there are the telemundo actors ringing the bell today for the nasdaq and they put their names down here, im afraid i dont have them handy available. Theyre actors. And the dow stills are off and running and we werent expecting a big opening. Were pretty flat. Dow industrials down 4. Thats it. But we have mcdonalds reporting better than expected sales in november. Remember the previous month, i believe they were down and everyone was shocked. But now theyre up and the stock is up, whats going on nicole. If youre bullish on mcdonald, complete reversal. An unexpected gain. 3 c1 2. 4 . You noted that they saw the first Monthly Sales decline. Was there a trend or something to worry about . They say no, because now the sales are showing growth once again and this isnt good news and obviously, the up hair owe. By the way, im talking about breakfast sales, thats correct . Thats right, breakfast sales in the u. S. Is something thats definitely well, offering prices and a lot of folks have a lot of money get on the mcrib. Stuart nicole, thank you very much indeed. Dow industrials are down 11. Its a flat market. The busiest day of the year for fedex, its going to move 19 million packages in one day, it doesnt necessarily mean that people are spending more, far from it, theyre shopping more online, a whole lot more online and fedex delivers for them. And fedex stock is up a fraction, not much. Talk about the pot calling the kettle black. Christine lagarde warned that the American Economy wont grow next year without a deal on the fiscal cliff. Listen to this. My view personally is that the best way to go forward is to have a balanced approach at that takes into account both increasing the revenue, which means, you know, either raising tax or creating new sources of revenue. And cutting spending as well. Very interesting. Europe is deep, deep in a financial crisis and ms. Lagarde, who heals from tax the rich, 75 france is lecturing america, very interesting. Meanwhile, european markets are down and because the italian Prime Minister mario monti m a surprise. Is going to resign. And Silvio Berlusconi wants to replace him. Europe is appalled. And people blaming the recession for not having more children. 64 births for one thousand women of child bearing age. Half of the peak of the baby boom in the 1950s. Our next guest has six children, counts them. And whats that and naham segal. That works. Have i got that word . And light tte candles. If you light them i will come. You have six children. As do you. Leave me out of this. And others people say they cant afford it youre saying it doesnt matter if you can afford them or not. If the price tag of having a child scares you the most, you havent done the right gut test. Stuart so, go ahead and have the children whether you can afford them or not. Having children is the investment in the future. If we dont have children now and understanding in the shortterm there are obviously economic hardships going on, it is classic then in an economic down turn, people should people are thinking twice of having kids. If we do not have kids now we will not have the labor force and supply you and i the Social Security that well be due. Stuart so youre doing this for the country. Im doing this for myself for the country and also becauss we have to perpetuate civilization. This is what we do. Whats the point in making strides in this generation if were not leaving it to the next generation. Stuart are you passing judgment on the current generation having far fewer children. Im not going to. And the person who says god bless you for having so many kids. God has blessed me. Im not passing judgment and nobody gets to pass judgment on me either. Stuart you realize throughout the developed word when youve got a mass middle class, fee mill education and access to birth control, it plummets. In europe theres not replacement level. Losing it doesnt make me comfortable that our birth rate is less than fronts. When were talking about 20yearold women, waiting until theyre 30 and 30yearold women in their 40s and during that gap our numbers are going to dip. Do i think its artificial . There are a lot of factors, do i think that overall people are not making children. I think theyre making choices. Stuart youre he jewish. Yes. Orthodox jewish. Do they believe in birth control. And many rabbis agree it has its more than the number were looking at. Stuart you say as a matter of principle. Having children is not a function of the your particular family, not a function of how much money youve got, its Something Else entirely. It comes from a drive within. Does it help families not doing it from a religious point of view for government incentives to have other wayssto make life easier having children, making college less expensive, making child care less expensive. Absolutely. If the drive is not coming from within, or theres a hesitation, someone should make it easier. Stuart and whats that. The nnatham segal network. Thats the name of my boss and radio station. Stuart and you have six children. Yes. Stuart are you done. Its all good. Stuart lets stop with the interview. This will continue, and its closed. Stuart a pleasure. So much for the mighty all american consumer. Government data showing that data was slowing over the customer more than previously thought. Not a good sign for the economy. And what may you ask is keeping the Purse Strings closed . Stubbornly higher unemployment and the prospect of higher taxes next year. We have that for you. And al gore on the attack, this time around you wont believe who hes going after. New at ten, who hes attacking and why. On Varney Company we saw this coming from a mile away. California raises taxes, but instead of helping the economy, its hurting it. Well bring you the story new at 10. The share price of apple is down this monday morning, how much and why nicole . Down again for apple. Dragging on technology. Dragging on the nasdaq composite. Today, were talking about the price target from 800 thee citing a few factors, number one, asian suppliers that were giving better bargainn to apple and not doing that and it beats margin pressure and launching, this is news to me, i hadnt seen this, new ipads and iphones next year, that will cut into the margins further. Stuart you know, i was watching a lot of tv yesterday, i was watching some football yesterday, and throughout the day, there were ads for the Samsung Galaxy scattered across everywhere. The main competitor to the iphone 5, i think it is, and they were advertising like crazy yesterday. And i heard other figure, the older gang is starting to get more into apple and younger folks moving towards samsung, did you hear anything like that, thats a big factor as well. Stuart it is, but ive never heard of older gang. Thats all. You want me to say the old people. Stuart yes, seniors. The gang thats cool. Stuart the dow industrials 7 points higher after ten minutes worth of business, thats not much movement. Is it, time is money though and 30 seconds of what else were watching for you, another tragedy in the nfl, a player allegedly driving drunk and his teammate dies in the accident now the Dallas Cowboys are ready to take a drastic step to prevent this from happening again. The judges take on what theyre proposing. Well have expensive hanukkah menorahs onset here. The Record Number of americans, bringing the you this. And youve got a lot of opinions, express them, please. Varney foxbusiness. Com, seven early movers, a wall of people, diamond foods, they posted a loss and down goes the stock. And canadas cnooc, i proved the takeover bid for oil sands operator nexen. Nexen is up. A Chinese Group buys aig plain leasing group. And aig is virtually unchanged. You know the name, Goodyear Tire and rubber transferred the stock. And mcdonalds thigh of 90 bucks. A fda panel voted against recommending zogonics, sew agzo did they recommend it, pain killer for approval and the stock goes down significantly. They voted against lets get na straight. They voted against it. And honeywell to buy intermec. Up goes the stock. And apple says its bringing manufacturing back here. Is chinas run of the factory, its not coming to an end. Is this a drop in the bucket . Well have more in a moment. Here we go. Put on your yarmulkah, here comes hanukkah so much funica, hanukkah what was that here comes hanukkah, so much funica. Very interesting. Well probably play more holiday music if we can get away with it the rest of the show. Instead of one day of christmas we have eight crazy nights [ male announcer ] at scottrade, we believe the more you know, the better you trade. So we have ongoing webinars and interactive learning, plusbranch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. 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To avoid longterm injury, seek immediate medical help for an erection lasting rehan fourours. Ifou have any sudden decrease or loss inearing or vision, or iyou have any allergic reactions such as ra, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use ana 30tablet free trial. Im sounding like a broken record. The stock market is flat this monday morning. In early 2011, steve jobs was asked if he would bring back jobs from klechina. He says those jobs are not coming back. Hold on, under tim cook, there could be some. And apple, bringing back spending 100 million to bring some mac here, i say its a total drop in the bucket. Its a broader narrative of manufacturing leaving china and its not just apple. And lenovo, chinas largest pc maker, says its bringing some production to the North Carolina facility and ge, for instance, is bringing a lot of production back from china, small and medium sized manufacturers are doing this. Go to walmart and look at the house brand george, all of its made in bangladesh, used to be in china. Stuart why is manufacturing for years weve said china is the Manufacturing Center piece of the planet. Why is it leaving . There are so many reasons. First of all, wage rates are going up much fraster than product ticht and labor peaked Political Risk is not a factor and now it is, china is trying to use geopolitical leverage and risk of intellectual property loss and china is no longer advantageous platform for manufacturing other than for china. Stuart do you think many of these jobs will come back, many of them will come back to america . Many of them will come back to the u. S. Austin Consulting Group says in 2015 youll see seven industries it will be cheaper to manufacture in the u. S. Than china and all sorts of manufacturing deals here. What. Transportation costs are lower. Delivery to market is slashed. Energy prices are much cheaper. Your work force is more productive and less likely to go out on strike. Stuart wait, wait a minute. The work force in america is more productive and less likely to go on strike than china, is that right . In china you have one wild cat strike after another, and suicide. And they make the products for apple said 10,000 robots and in 2014 one million. Wh you have robot production, that minimizes chinas cheap labor. And in california where they have facilities with robots its just as cheap orrer than a robot in shin sheng. You wait a minute how come youre so wrong, china hasnt collapsed. I said it would occur in a decade, but you see the problems there, the economy is stumping and the Central Government is eroding and china people are taking to the streets. So, the wheels are coming off china. Youre going to be right eventually. Soon. Stuart within the next two years . Maybe sooner than that. Stuart very interesting, gor n gordonment thanks as always. Its 9 29 almost 9 50, were up ten bucks. The south korean singer psy has a mega hit with the song gangnam songs and turns out he had a song that had nasty lyrics about the u. S. And didnt prevent him from performing for the president. And they will he beyond what he said after the break. Singer psy has a hit song gangnam style. And he had a song in 2004, and apologized for it. And he performed for the president and first lady. And do you have a problem with this man performing in front of the first family. I do. And, i question for someone who would this is the president of the United States, i dont mind apologizing and doing concerts for the United States and for my president to listen to someone. This wasnt someone a little bit antiamerican or subtly. This is someone who called for the death of americans at war time. Thats hard po for me to some mack. Stuart youre a tough lady. Im certainly not okay with it, ill agree with you, and if he had that sentiment at one point or anytime in his past he likely still has it today. Whether or not hes profusely apologized really doesnt matter to me. Stuart makes no difference to you. Say what he likes he shouldnt appear at the white House Holiday concert. No. Stuart two tough ladies. Welcome aboard. And al gore, two big entities we shouldnt be taking from. And theyre both new at 10. The stories coming up. But when i was in an accident. I was worried the Health Care System spoke a language all its own with unitedhealthcare, i got help that fit my life. So i never missed a beat. Thats health in numbe. Unitedhealthcare. Stuart monday morning new at 10 00, al gore says you want proof of Climate Change . Look no further than superstorm sandy. Gore calling on the president and congress to act and act now. That may mean a carbon tax . However, listen to this, a study from Colorado State University Says the exact opposite. That sandy was not caused by Climate Change. We will talk about all that in a moment. Plus, you want proof that raising taxes does not work, that it doesnt bring in more money . Well, in california, where they just voted to raise taxes bigtime, the state is more than 800 Million Dollars short of the revenue it expected to bring in, because when you raise taxes, some people leave. Check the big board. Same old same old same old. The dow is flat, up just 23 points in the early going this monday morning. Here is our company sandra smith is with us. The conservative commentator is with us. And Nicole Petallides is there on the floor of the new york stock exchange. Here we go, new at 10 00, the latest Climate Change rant from former Vice President al gore. He blames pollution for causing Climate Change, which he says leads to huge storms like Hurricane Sandy. It is causing these extreme weather events. Dirty energy causes dirty weather. And we have to come to our senses and do something about it. I deeply respect our president. Im grateful for the steps that he has taken. But we cannot have four more years of mentioning this occasionally and saying its too bad that the congress cant act. Stuart all right. From the other side of the fence, we have researchers from Colorado State university, theyre saying, quote, our Hurricane Research extending over many years indicating that atlantic hurricane variability is driven almost exclusively by natural changes. They say pollution is contributing to an increase in global temperatures, but not necessarily the strength of certain storms. I dont propose, everybody, that we discuss whether weve got Global Warming or not, or whether Global Warming is real or whether it contributed to hurriccne sandy. Thats not the argument. Im going to say that bearing in mind what former Vice President gore had to say, i see a carbon tax. Here it comes. Absolutely. Well, hes been very blunt about that. Hes been calling on president obama to enact this carbon tax. And hes insisted that it become part of the fiscal cliff negotiations. Even though it is a political long shot, he has sort of backing from Grover Norquist on this who is saying it would be okay to enact carbon tax if we were talking about lowering rates elsewhere. Stuart grover says that . Carbon tax okay if you lower tax rates on income . Sandra hes firmly against the carbon tax. He said, however, if they were willing to lower rates across the board in many other ways, he would be willing to discuss it. Yes, he did make that point. Stuart okay. Sandra however what i dont like about this is al gore using a tragic situation Hurricane Sandy as an opportunistic stuart hes not the only one. Mayor bloomberg and Governor Cuomo said the same thing. Harry reid said this. I take your point, but go. We can sit here and debate this. We dont have conclusive evidence either way. But the bottom line is he wants the government to come in and say were going to harm Small Businesses here, were going to impose the taxes, overregulate, do all the things that hurt these businesses and inhibit their ability to function and grow when we dont have conclusive evidence. Thats the problem. Stuart but its very attractive to a politician, a carbon tax, because it brings in a gusher of money. You tax companies. You tax utilities for the amount of co2s hat they put out in the atmosphere, you tax them on that basis, and you bring what, 100, 120 billion dollars a year . Sandra once they start seeing that money, they are going to want more. It could lead to an ugly future of very high taxes and could stif business and it could stifle business. I dont think he will get support for this. I dont think the public has appetite for it. Stuart im not so sure. I agree that people wont like this, but when politicians need money, a carbon tax is very easy answer. Especially if they can say look at that storm. Just look at sandy. You dont want more of this, do you . You have to take measures. If we have an appetite for this, if a carbon tax is something we can tolerate, i think were in bigger trouble. Stuart now to nicole. Whats going on, microsoft . Nicole Merry Christmas Stuart Varney you are going 1. 2 you are gaining 1. 2 today in your big investment in microsoft. Its a dow component. So many people hold it in their mutual funds. Familiar with the surface tablet and new windows 8. But it is interesting because they are talking modest sales for the tablet, which is actually some good news because some people were very worried about it and they obviously compete directly with dell and hp with this. So so far so good. So so far so good. Sandra microsoft up 3 year to date. 3 . Its gone nowhere. Stuart 3 gain in the stock price, plus 3 1 2 dividend yield. Sandra okay. Stuart thats 6 1 2 . That ladies and gentlemen is surely better than what you get on a cd. Sandra take advantage of the dividend before the end of the year. Stuart nicole, my children keep asking what do you want for christmas . I think i decided. I want what do you call it . The surface tablet . Thats what i want. Nicole that would be good because then you could figure it out and talk about what you like and dont like about it. You can teach us all. Stuart that would be good. Unfortunately none of them are watching. All right everybody if you raise taxes on the rich, they will change the way they use their money. They change their behavior. They do, you know. New numbers from california proving just that. The formerly golden states total revenues down not down 806 Million Dollars less than what they expected to bring in despite and perhaps because of those new taxes that they put in place in early november. By the way, that revenue, down 10 from what they expected to brings in. To bring in. Joining the company now is the author of how rich people think. Very interesting. This is happening in california with higher taxes, less revenue than pt xed. Than expected. Do you think the same thing would happen if and when president obama sticks higher taxes on the rich nationally . Of course. No question about it. We have a spending problem here. The government has an unlimited credit card. They keep printing money. Its a spending issue. If they stop spending, we dont have to keep raising taxes. It is not a tax issue at all. It is not going to solve it. Stuart what do rich people do . In california, i can understand you can move. You can go somewhere with a different tax structure. If we impose higher taxes on a national level, not that many people are going to leave increase, are they . Well, you know, a lot are leaving france. France is not america, of course. They probably wont leave america. But, you know, i think first of all weve got to state this fact that this is a delusion that people making 250,000 a year are rich. This is clearly the upper middle class. These are the people that are going to get hurt. The wealthy, i mean the mitt romneys and the Donald Trumps of the world, they have been preparing for this for years. They have a team of wealth advisors, all the rich people do. Theyre prepared for this. Stuart how do they do it . How do they avoid if im rich and i know that come january the 1st my tax rate goes from 35 o 39 percent, i know that in advance, how do i avoid it . I was talking to my Financial Advisor a few hours ago. He was saying he has all kinds of clients transferring their businesses to their heirs, to their kids names, putting their significant assets in their childrens names to avoid the giant hike in the estate tax. This is one of the things they are doing. They are putting money in, you know, taxfree and taxdeferred accounts. I mean, theyre preparing thats what people need to be doing if they are not ready, thats what they do if they have any kind of assets whatsoever. Stuart your book is called what rich people think is that a correct title . How rich people think. Stuart okay. Do they hate tax rates at this level, is it that kind of emotional response, is it . This is class warfare, stuart, against the rich. All of a sudden, in this country, anyone who makes 250,000 a year or more is suddenly an evil person, and without i will tell you what, you give me the people who make 250,000 a year or more in this country and we will start our own country. In ten years that country will be rich and this country will be broke, more broke than it is now. Stuart do you happen to know the answer to this question, which is the most richfriendly country in the world . I would say switzerland. Stuart low tax rates there . I think they are the friendlyiest to the rich. Thats just a guess. I dont know for sure. Stuart but i cant put my money in switzerland now. You get a rich guy in america, he puts his money into a Swiss Bank Account that has now to be declared to the irs. The irs has to know that youve got that money there, and that if its earning income, youre going to have to taye pax on it over there. Youre going to have to pay tax on it over there. The Swiss Bank Account is no longer the escape hatch that it used to be, now is it . No its not. You can keep it there. Once you bring it back, you will have to pay taxes. It is not a shelter, absolutely not. Stuart to sum it up then, the rich people are avoiding these tax rates . Absolutely. I mean, and theyre cutting spending, and here it is right in todays morning paper, Consumer Spending wobbles. Here it is. Consumer spending is 65 of gdp. That goes down. The other sectors are fumbling. Were in big trouble. I think were in much bigger trouble on january 1st. Stuart thank you very much. Thanks stuart. Stuart we are in a holiday spirit on Varney Company. [laughter] stuart we will have menorahs on set. That will be coming up at 10 33. President obama is heading right into the eye of the storm today. A big union fight in michigan. Michigan the home of the powerful auto unions could become a right to work state. The governor is expected to sign a new law tomorrow, right to work, michigan, 24th state. Unions have been protesting and bigger demonstrations are planned. Listen to this stuart got pretty noisy. All right, all rise, judge Andrew Napolitano is here. Judge, welcome back. Thank you, stuart. Stuart now i think if a state becomes right to work, essentially that means that a union may not force its members to contribute dues. Union membership becomes voluntary. Am i right . Well i would state it slightly differently, but we end up at the same point. In a right to work state, the state does not force people to join unions. Stuart okay. In a nonright to work state, it is a law that you join or contribute to the unions. So if you choose not to join, your employer is required to deduct from your salary the dues for the union and remit it to the union, whether you physically join, sign up the papers and attend union functions or not. Stuart outrageous. It is outrageous. Thats because the unions hhve gotten into bed with thh politicians and have voted for politicians to enact legislation that forces people to violate their freedom of Association Rights by choosing not to associate. Stuart what about the other side of the fence, professional associations like the American Medical Association or some professional organization or grouping, could they demand dues from people who do not join the association . I think stuart i dont think so. Probably lack the political clout, the numerical clout of labor unions, and i dont mean to criticize them, but they would love to have that kind of political clout, but they have not soughh nor will they ever attain the ability, the power of to join the ama. Ce all doctors look, tte 1st amendment guarantees freedom of association, also guarantees the reciprocal of that, which is the freedom not to associate. If r the state to force for the state to force you to 3 associate with a group of people you dont want to be a part of and pay money to that group is theft. Stuart michigan of all places may become the 24th right to work state. It is surprising in michigan. I understand their animosity. It is the home of the Automobile Industry in the United States of america or was for a couple of generations. And they just had legislation at a referendum. Stuart it will be signed tomorrow. Correct. The people themselves voted to say this is a right to work state. Stuart its an extraordinary development. Judge stay there, please. A lot more from you still to come. It was a tragic weekend for the Dallas Cowboys defensive lineman. Hes charged with drunk driving and manslaughter in the death of his teammate. As a result the cowboys may install drunk driving monitors in every players car. Could it happen at your workplace . What kind of intrusion is that . Is it legit . Is it legal . The judge is still here and will address the issue next. You know how painful heartburn can be. For fast, long lasting relief, use doctor recommended gavicon®. Only gaviscon® forms a prottive barer that helps block stomachcid from splashing up relieving the pain quickly. Try fast, long lasting gaviscon®. Relieving the pain quickly. I have obligations. Cute tobligations, but obligatio. G. I need trethinthe core of my portfolio. What i really need is sleep. Troducinthe ishares core, Building Blocks for the art of your portfolio. Find out why 9 outf 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Ca 1800shares for a prosctus which includes investment objectives, risks, chargesnd expenses. Read and consider it carefully before investing. Riskncludes possible loss of principa stuart ive been saying this all morning, i have to say it again, a flat start to the market as of this monday. Right now the dow industrials are up a mere 21 points. Thats flat. New concerns about Consumer Spending in the wall street journal consumers had been supporting the economy, but the journal says employment still weak . Still major uncertainty about tax rates for the new year and all thats making people very cautious about their spending. Could be bad for the economy. Big headline in the journal today. We are continuing to watch apple. Down again this morning. Jeffries, a brokerage firm, lowers its price target. Only going to get 800 a share, sayses jeffries. It was at 900. Were coming down. Down for the stock. Groupon also lower this morning. It jumped on friday on reports it could be a takeover target for google. Whether it is or not, i dont know, but it is down this morning. All right. Were back in 90 seconds with the drastic steps the Dallas Cowboys are considering after this weekends tragic accident. Stuart horrible story over the weekend. Dallas cowboys player josh brent allegedly driving drunk flips his car. His passenger and teammate jerry brown killed in the accident. The cowboys are looking into all options to protect their players. Including installing devices that would immobilize the car if the driver of the car. The judge is here. Do they have the right to intrude into players cars and install a device that you cant drive it if you are drunk . Do they have the right . Not is it the right thing to do but do they have the right thing to do . Well, they are not the government. And the young man who is accused, hes still innocent, because hes innocent still Proven Guilty accused of this awful event is free to work at another football team. So under that theory, hes voluntarily there and he voluntarily accepts the restrictions. Look, professional athletes have a lot of restrictions. Stuart extended all team members, judge . They would extend it to everybody gets one of these devices. Now, youre going to touch the other side of me which is why are they punishing everybody because of what one person did. Thats preposterous. Stuart because the reputation and value of the team is at stake. They have the right to do it because they are free to go work somewhere else. Were the government to do it to us where we were not free to have another government, it would be a different story. Stuart they made it a contractual obligation, you sign a contract to play for the Dallas Cowboys and you have one of these things in your car. . Thats a great question. Theyre basically to persuade a colle collective bargaining because those contracts are negotiated by a Players Association to do it retroactively almost impossible to do, but in this with it. Whether it spreads to other teams or not, that remainn to be seen. Stuart these are young men with a lot of money, and alcohol has been a factor not just in performance on the field but their social life in the past. Is it the right thing to do to take this precaution . Sandra i think like many things it doesnt go to the root of the problem. Theres got to be a problem elsewhere. I think theres better solutions. If you are going to go to that level, why not assign a dd to every player . Why not let them not drive cars period . What will the next step be . If theyre monitoring this now, what does step two become . In my mind my imagination runs and that is a little bit scary. Punishing everybody because of what one has done. The most horrific regimes in history without giving their names thrived on doing that. One guilty person, we will punish everybody in your group. Stuart what about the results of ttis kind of action. The results of this kind of action will be the reduction of their sense of personal responsibility. Stuart maybe fewer deaths, judge. Well, there would be fewer deathh if we didnt use steak knives. There are a lot of aspects of human existtnce which we require for our society which when abused cause death but we dont have the government take them away from us. Reminds me of the gun control argument. Same principle. One nut kills innocent people so we should all lose the right to defend ourselves . These are natural rights, the right to decide what to put in your body and defend yourself. And the government and our employers should not be taking it away because of the abuse of a couple of crackpots among us. There are crackpots among us. Stuart yes, there are. Lets leave it at that. Keep saying whenever they have a fight on their hands, and im tired of it. My take on union spin next. Announcer you never know when, but thieves can steal your identity and turn your life upside dn. Hi. Hi. You kn, i can save you 15 today if you open up a chargeard acunt with us. You just read my mind. 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Stuart that was in our last hour on apple production, some of it a tiny fraction of it coming back to the United States. Apple stock by the way down 5 bucks today. Time for a market check. Take a look at the big board, 20 points higher, thats it. Priceline shares, though, they are coming down some. I want to know why as usual. Nicole . Nicole well, take a look here. No same old for priceline here. This is a stock actually has been a winner, but it is down over 4 . Thats a loss of 28 bucks and so big move downward for priceline. We got a downgrade too that we should note here, Deutsche Bank cutting the stock to a hold from a buy with a price target now of 710 from 800 which still is upside from the current levels but off the 800 level which obviously was better. Sttart those analysts actually never work it out. All right nicole thank you very much. Tonight is the third night of hanukkah, it is also call the festival of lights. At 10 35 this morning, we are going to bring you some of the menorahs. They are worth tens of thousands of dollars. Stick around for that. I was listening this morning to some Union Leaders protesting michigans new labor legislation. Governor schneider and the republicans are about to make michigan the 24th right to work state. That means a union cant force people to pay union dues. Membership would essentially be voluntary. No closed shop. Heres my take on the attack on working families. Those were the words used by the union leader. First, the word attack. Really . Labor is being attacked because a union can no longer force people to pay . Nonsense. Thats just a tired talking point. That language reminds me of the 1970s when unions in league with lousy management ran americas car industry into the ground in michigan. Then there are the words working families. Another tired talking point. I have asked leftists many times on this program, go ahead define working families. They cant. I work. I have a very large family, six children, seven grandchildren. Of course im not in the working family group because i am assumed to make far too much money. Exactly where the income cutoff point is, never been able to find out. To these oldline union guys it is just us and them, hopeless, how can you run a modern manufacturing facility with an attitude like that . Have these people learned nothing . Detroit collapsed. The president used taxpayer money to bail out the Auto Workers Union and it is still not enough. No, working families are under attack. All i can say is im very happy to see legislation start to reign in this kind of destructive attitude because frankly im tired of paying for it and im tired of being told that somehow making money is not work. Go for it, michigan. Show you are a part of working america. The varneys are not a working family. [ male announcer ] this is steve. He loves risk. 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Well, today, is the second day of hanukkah. We have some very expensive menorahs. Joining us now is the founder of j greenstein and company. Its an auction house that deals with jewish religious items. Can touch it, i wont. I feel guilty. [laughter] stuart this is 100,000 . Yes. Its an extremely rare piece. It was made approximately 150, 170 years ago. And the value of an antique jewish ritual object increases. This could be done as an investment or decorative item. Only auction house thats dedicated solely to antiques, we do nothing else. Stuart what gives this 100,000 worth of value . Rarity and beauty. Stuart it is very rare to have something as old as this . Absolutely. But more importantly it is extremely attractive if you look at the menorah in front of it, it was made in 1861. It was made in poland. Its attractive but nowhere near as glamorous as this one. This would sell approximately 7,000, maybe 8,000 at the most. Stuart what do you mean not as glamorous . Is it the art work involved . Jews were very poor only when we came into this country that we were allowed to go into certain industries. You found the silver smith you gave him the general design of what you wanted and he would make it for you. Stuart is this Investment Vehicle forgive me for calling it that. No question about it. Stuart is ittavailable to nonjews . Absolutely, 100 . Stuart have you ever sold a menorah thats going to go up in value to a nonjew . No, we have sold to museums, though. There are several museums that buy from us. They dont buy it as an investment. Pstuart do you think by comin on this program and showing the world what you have, and telling the world as you have that this is an Investment Vehicle, because this is now 100,000. It sold in 1986 for 25,000. Yeah, Something Like that. Stuart roughly. Roughly, yeah. Do you think you are opening this up to nonjews as Investment Vehicles . Would you welcome that . I welcome anybody who can appreciate our jewish history and jewish art whether hey do it for dollars or for beauty. Stuart this one right here. This one was made in the ukraine. Stuart im going to point to it. Thats the one. Okay, yes. Its purported that he used this style of menorah. Whether thats true or not, nobody really knows but because it was made in the ukraine in approximately 1800 which is about 70, 80 years after his passing, actually a little bit more than that, its purported to be his style. Stuart okay. This would sell for about because of its size, it would sell anywhere between 30 and 40,000 dollars. Stuart okay. All these items will be auctioned soon . In the near future. We only have auctions twice a year. Stuart just twice a year . Not a rolling auction . No, only 600 collectors throughout the entire universe that we have on our mailing list. Im sure there are more waiting to be born. A collector is born, not developed, whether he puts his heart into stuart an Investment Vehicle. You talk about the money. I will talk about the beauty. I absorb the stuff. It is gorgeous. Stuart would you mind if i asked a personal question . Absolutely. Married with five kids. Stuart thats not it. Married with six kids. I got you on that one. Recently i have been contributing money to the salvation army. The bell ringers wished me happy holidays. Theyre a christian organization. Wish you Merry Christmas. Stuart so you would not be offended . Absolutely not. You approach him differently. I approach him differently, but we all appreciate him. Thank you very much. Will you come back . Yes, absolutely. Stuart thank you very much. Pleasure. Stuart its battleground michigan for the unions, right to work signed into law tomorrow and in just a few hours, president obama visits that state to push for higher taxes on the rich. Makers versus takers, were covering it. Okay . Now, please, ladies and gentlemen, will you all wish me in wishing happy birthday to our director nancy . It is her birthday today. Happy birthday indeed nancy. Happy birthday to you stuart you see the back of her head, thats because she is directing, serious stuff, ladies and gentlemen. Happy birthday nancy. You are great. We will see you in a minute. Happy birthday to you happy birthday to you. And we can save you 10 on ground spping over the ups stor look this isnt my firschristmas. These deals all seem great at the time. But later. [ shi ] Merry Christmas, everybody not so much. Ho ho ho this isnt that kind of deal. [ ma announcer ] break from the holiday stress. Save on ground shipping atatedex office. To the numbe1 club in the world. E potential of mahester united unlocked. Nyse euronext. Engine revs ] [ male announcer ] oh what fun it is to ride. Get the mercedesbenz on yr wish list at the winter event going on now through december 31st. [ santa ] ho, ho, ho [ male announcer ] lease a 2013 50 for 579 a month at your local mercedesbenz dealer. Stuart you know, the market was not expecting this, but relatively strong sales for mcdonalds. The stock is up today because of better than expected reports for the month of month month of november. Mcdonalds has been in a long sales slump especially in october. They turned that around for a jump in sales in its stores around the world. Not bad at all. 89 bucks for mcdonalds stock right now. Look at this next stock, up big, positive results for its drug to treat breast cancer, prevent tumors from growing and prolonged survival rates in patients as well. That stock is up 25 . A Chinese Company is buying most of aigs Aircraft Leasing unit. Back with the Union Michigan fight in a moment. . Mmmm tasty. And cut very good. People are always asking me how we make these geico adverts. So were taking you behind the scenes. This coffee cup, for emple, is computer animated. Its not real. 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You can even take a fullsize or above, and still pay the midsize price. You can even take a fullsim going big. [ male announcer ] good choice business pro. Good choice. Go national. Go le a pro. Stuart the gap, they sell clothing. Their stock price is down. Nicole, the age old question, why . Nicole yeah take a look here, in this case its actually technical. Sometimes we see a reason why theres selling, maybe some analyst downgrades, in this case, i have been talking with some traders, and the gap is actually testing that 200 Day Moving Average and breaking below it so 30. 54 and there it is below that 200 Day Moving Average. That becomes a sell signal to some. Thats a loss of 4 1 4 for the gap and under the umbrella is Banana Republic and old navy. Stuart i remember the gap when it emerged in the 1970s. Nicole, do you shop at the gap, yes or no . Nicole i dont shop that much. I would shop there if, you know i dont really shop stuart so you dont. Thank you, nicole. Thats a no. Nicole yes i would go there. Sandra i havent set foot in a gap in at least seven years. I like the pajamas. Nicole you are leaving out their best brand, the Banana Republic. Ask the question again. I would go to Banana Republic more. Sandra its not just the gap stores is what shes saying. Stuart are they all together . Under the same umbrella. Stuart who knew . Thank you, everybody. We have been talking about the right to work battle in michigan all morning. Former nlrb chairman is here with us on that subject. Peter, its going to happen, isnt it . They are going to be right to work, and i want to know youre an expert in the labor field. Is this going to spread to other midwestern industrial pro union states, do you think . I suspect it will, stuart. Good morning by the way. Stuart yes, sir. I think, you know, the reason right to work laws are being passed is because the predominant union model which goes back to 1930s, 1940s is really a combative one. It doesnt pay enough attention to the need for an employer to make a profit. It imposes unreasonable work rules. It zaps the companys entrepreneurial spirit. Think of seniority when it is not tied to performance. Stuart is it possible for the Obama Administration to stop the trend or get in the way of it or block it in some way . Youre former chairman of the National Labor Relations Board. As i understand it, the president is stacking that National Labor Relations Board with people on the left. Would they be in a position to stop this right to work trend . No, they would not. The statute specifically gives the states the right to pass a right to work law. And i cant think of anything that members of the board could do to stop that. There was a little bit of an effort to do that with regard to boeing. But that was indirect and not direct. I dont think it would have been effective anyway. Stuart right, if im right, and i believe i am, that the prrsident is stacking the nlrb, what can they do, what do you expect them to do in this second term to enhance the Union Movement . You know, a variety of Different Things they can do. They can grant access to union agents to an employers premises after a petition is filed. They could reverse existing board law and give employees the right to use an email system to engage in union activities. Any variety Different Things the board can do to enhance union power but really to the detriment of legitimate Management Interests and the right to workers. Stuart as a balancing act here, on the one hand you have the right to Work Movement which seems to be really gaining ground, on the other hand, president obama has a second term, hes very much pro union and hes stacking the nlrb. The balance seems to me that organized labor is not doing as well as it was expecting to do in the second obama term. Would you agree with that . Well, i think thats correct. I dont think its necessarily tied to the president. I think its necessarily tied to really a growing predominant view that unions are not conducive in many ways to job creation. One only has to look at the recent hostess fiasco which really underlines that. Unions have to look in the mirror, try to reinvent themselves, and my suggestion would be they really ought to spend get out of politics and spend union dues on reinventing themselves and on organizing. A vast majority i dont know exactly what the percentage is. You hear different numbers is used by organized labor for unions. They spent over 400 Million Dollars to get president obama reelected. Stuart 400 million, thats a gigantic chunk of money. Peter, always a pleasure, thanks very much for being with us, on a very important day. Tomorrow will be a very important day because it is right to workday back in michigan. We appreciate you being with us. Thank you very much. Stuart yes, sir. The white house sends out invitations to the inaugurations a lot of cash in return for access. Does that sound just a tad hypocritical . We will deal with it next. Streamline the proce . At fidelity, we it by merging two toolinto one, combining your customized charts with leadingedge analysis tools from recognia so you can quickly spot key trends and possible entry and ex points. We like this idea so much that weve applied for a patent. Im colin beck of fidelity investments. Our integrated techcal analysis one more innovative reason seous investors are choosing fidelity. Now get 200 free trades when you open an account. Coming up tonight at 7 00 eastern, the obama middle east policy, it is in tatters. Former ambassador to iraq, former director of National Intelligence joins us tonight 7 00 eastern. Stuart if you want to attend a childrens concert, a candle light celebration of the National Building museum, have two bleacher seats at the inauguration, four tickets to the president s official inaugural ball, just have your institution fork over a Million Dollars. President oeb thats team sent president obamas team sent out an email detailing four different packages that you could purchase in order to participate in the inaugural events. Some critics say obama is abandoning his pledge to keep money out of politics. What do you say . Crony capitalism on display. What are these companies and corporations going to get from the president down the road after funneling all this money into his inauguration . I dont like it and i dont like it specifically with respect to him because he ran against everything that this represents. He said he was going to change washington. He was going to change this cozy relationship between business and himself. Sandra but he said he cant change washington from the inside. So hes changed his mind on quite a few things since then. And remember, this is we were talking about this during the break, this is what we have seen in the past. This is no different. Individuals, 250,000 compared the corporations a Million Dollars, but remember this s because all the big bucks that were spent during the election. Stuart would you rather have the taxpayer pay for the inauguration or corporations . Sandra absolutely not. I would obviously like the corporations to pay for it. What about the extra money he had from his campaign . Does he have any extra cash or how about some of our extra stimulus money . We already paid for stuff that we dont need to use. Lets funnel that over. Stuart this is a difficult story because we have another record high for food stamp recipients, 47. 7 Million People on food stamps in september. By the way, sandra, that is up 607,000 in one month. Sandra yeah, and unfortunately, right now its more profitable if youre at the poverty level, it is more profitable for you to stay home and collect government funding, food stamps is just one part of it than it is to go out and earn a living at the average income in this country because dollar for dollar, you would get more from the federal government in the form of federal help than you would just going out and earning a living. Stuart is that why 350,000 people dropped out of the labor force in the latest reporting period, is that part of it . Sandra they are not incenti incentiveized to go look for work if they know they can take part in the government federal Spending Program that government federal funding program. People are more reliant on government. Theres less personal responsibility and selfefficiency. It is drowning the country. Stuart the number that gets me 607,000 people in one month in four weeks, thats 150,000 a week being signed up for food stamps. I dont know what the cost is to the taxpayer of each person. But 150,000 a week is a massive number. 600,000 a month . Sandra and cory booker is doing this experiment spending 30 a day on food stamps, etc. Which is not a good example of what the money actually looks like if youre receiving federal help, it is much more than just food stamps. Stuart it is whatever it is per person. Sandra right. Stuart all right, everybody, the highlight reel is coming up next for you. Stuart it is time for the highlight reel. I guess that he apologized. He had that sentiment at one point or any time in his past, he probably still has it today. It is hard for me to stomach. Stuart that was an awfully serious highlight reel. It occurs to me, this is a one hour 40 minute show. I did not think we have used the words fiscal cliff this monday morning. We have not. I had a very high class economist, strategists, d. C. Insider. They were optimistic. They see this fiscal cliff at the end of the year. Even if it is a bad deal, we will have much stronger growth at the back half. Stuart do they think president obama gets the credit for this . They were not really keen on saying that at that very moment. Certainly, if we fall off the cliff, it will be the republicans fault. I think it will be a bad deal. I do not see serious spending