At od, whatever business youre in, thats the business were in with Premium Service like one of the best ontime delivery records and a low claims ratio, we do whatever it takes to make your business our business. Od. Helping the world keep promises. All stations come over to mithis is for real this time. Step seven point two one two. Rify and lock. Command is locked. Five seconds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. Neil all right, allow me to cut to the chase, they cant cut, they wont cut. The one guy who is trying to cut, they wont cut a break. Try getting trillions. Welcome i am neil cavuto, queue the crying over ryan again, former republican Vice President ial candidate is taking out his scal scalpel again, youd think this time, he was not only throwing granny off the cliff but her whole damn family, actual thats was harvey corpsmacorpsman. What he is cutting in this budget of his is the growth in the budget of uncle sam, 10 years out, ryans plan envisions a bigger budget, how bad can the budget be if it takes 10 years to erase a deficit . How tr draconian can the cuts b . Only in washington can you call him dracula for doing something that is not draconian at all, a budget that slightly alters spending on. Ryan is cutting to 41 trillion bucks, that does not sounds doomsdayish to me, ryan is growing spending on average 3. 4 a year versus close to 5 right now, out of stuff that triggers talk of terror, remember the folks who were terrorizing over those anything but doomsday tra draconian sequestration cuts, talking of decontaminated beef, and maniacs getting through our airport lines, now you know why they are treating paul ryan like he is a big pain in the ass, he is not, maybe the asses judging help are, but he is not, talk about a party punch in the one corner, paul ryan with a plan to get a budget in balance through largely spending cuts and largely no tax hikes, in other corner democratic senator patty murray. A case of us likely losing, because the cuts really are not there we have rick yo joining m a little boxing reference, you have to know that. All right, so, what do you think elizabeth . Leaving aside in controversial things that paul ryan wants to do. In the en, just trimming the increase, that is it . Yeah, i think one of the big thing heres that people lose sight of is balancing the budget, patty murray supposed budget does not even balance, it is supposed to raise a trillion in revenue, that tells you, this is more of a shopping spree than a budget, people need to remember that a budget hopefully means you are only spending as much as you take in, not more. Neil scott martin, the markets seem to sense, maybe that despite all of the just erring gesturing were at least, cutting the growth and stuff, were not really cutting but that is better than doing nothing . Or am i misreading the market . You are reading it correctly, that is a reason we had such a good year, we were leading up to the sequestration dea deadline, which we made it. To i agree, still taking out the scalpal or peeler if you will, instead of the steak knife is tough for the economy, senator murray said this is a great plan for everyone as being progrowth, i dont know what a trillion dollars in national tax rates is going for growth, i dont see it. Neil rick, you are tight with a lot of powerful democrats, i know what bothers them is he is taking on entitlements, he is not really he is taking them on. Carney said yesterday, think of changing the ages, and you know and a nonstarter. So, if entitlements are off the table for a lot of democrats right now, were going nowhere fast . You have to be a little bit careful. We know that murrays budget, opening shot from democrats ryans budget opening shot from the republican, president somewhere in the middle, important to keep this in mind. I will tell you, i have to disagree when you say ryan budget does not take a cleave torent tight imminents clivecleaver to entitlements, 5n medicare and medicaid that is heavy, the thing that shocked me about his budget, i have to tell you, you know im not the biggest fan of representative ryan, but it at least it has been real life, he based this budget on a fantasy, it stunned me, on revoking obamacare, you can like that idea, you can hate the idea, but guess what, it is the law. Neil in the end, all of these entitlement programs will get more funding than now. No disagreement there. Neil your calling that draconian . 59 of the cuts from one area. Neil leaving aside those cuts which is a good point, you could argue then Patty Murrays plan to do this on the back of hiking taxes. Right. Neil you think these are starters to get a deal in the middle. At best, i think i also note that president is somewhere between the two. And you have to ask the question, is that by accident or is that on purpose. Neil elizabeth, i look at this and realize with theater we went through on 85 billion in sequestration cuts and that nightmare, now a immediate response, every time you touch entitlements you are throwing Harvey Korman off a cliff, there is no way you could get ahead if they were going after paul ryan last year, they are throttling down on him this year. I know, but other thing neil, in the drama where we talk about 85 billion, president obama said he was willing to deal with democrats in his own party who did not want to touch entitlements, he said he would be willing to talk to people in his party that did not think that medicare should be touched. Why smart with nonstarter why start with nonstarters . Maybe, to rick a point, this is a starting gate, they have come out with plans 24 hours apart, different plans, but, ive seen how this goes. Maybe this is an attempt to find a meeting in the middle, i guess, scott martin, where is that middle . That was my question to you, where is that middle . I have to bet rick a sugary style new york drink here. He is fit as a fiddle. You have not corrupted him yet, the president loves murray plan, i think there is no question, with regard to the attack on medicare, and medicaid, you have to go the number is to big 59 , because those are the big ones, you are not going to make progress if you dont touch the big elephants in the room. You do have to go after the big ones, but there are two big ones, entitlements but what is the other one . Defense not a penny. Neil but, when senator coburn goes in with a plan, with 360 billion from defense, and finds other republicans open, Everyone Needs to see the axe, i noticed more reluctance. I think you will be surprised. Neil you keep telling me, that im waiting. It is not time yet. I think you will see president step up to the plate in next 3 to 4 weeks that is my guess. Neil what is she going do. You what is he going to to do, you could step up to the plate and strikeout. I am optimistic, i think a grand bargain. Neil well have all these guys back. In the meantime, if you tax them they will run. Businesses bolts out of california because of taxes. And the dow hitting another alltime high, but today a warning about the price of stocks, and the price of just about everything else, uhoh. N t on my spark card. [ garth why settle for less . Ahh, oh [ garth ] great businesses deserve limited reward heres your wake up call. [ male announcer ] get the spark Business Card from capital one and earn unlimited rewards. Choose double miles or 2 cash back on every purchase every day. Whats in your walt . [ crows ] now wheres the Snooze Button . Its delicious. So now weve turned her toffee into a business. My goal was to take an idea and make it happen. Im janet long and i formed my Toffee Company through legalzoom. Never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. Go to legalzoom. Com toda and make yr business dream a reality. At legalzoom. Com we put the law on your side. Neil welcome back, californias democratic governor hiking taxes, so the news is that businesses are taking a hike. Metlife shipping 2600 employees from that state and others to a lower tax state to North Carolina. Republican governor North Carolina with whether he can make them feel home. Good to have you back on. An offer too good to refuse, what drew them . A great quality of life, a Good Business climate. And a great workforce. In North Carolina. So, they are setting up, we have 2600 new employees for next 3 to 4 years, they will live either in charlotte or kerry, raleigh area of North Carolina, two different areas, strong areas. And these new jobs will help build our economy. I think they made the right decision, were glad to have metlife, a gri Great Company coo North Carolina. Neil there are a lot of zerotax states like texas and florida trying to do what you are i do, the governors have a contest to do that but there are fewer of you guys than the high tax state guys. What happens in you woo those jobs the republicanrun state ewhat do you offer they do not . Rick perry and nikki haily and bob mcdonald, we consider them competition, they are friends but they are competition, we welcome the competition. Rick perry and i saw each other two weeks ago, we said well fight for our jobs, he is going to california, i fight for jobs to keep jobs in North Carolina, and ill take jobs from any place, i like to get them from overseas, also some International Companies investing in North Carolina. And were having good news success, and the metlife announcement of 2600 jobs with is a positive signal for North Carolina, our biggest challenge right now is small rural towns of North Carolina, throughout the u. S. , that is our greatest challenge, but markets like raleigh, and durham, and greensboro, and high point, and charlotte are coming back. Neil you could look at and say, despite right to work, and your en treaties to win them over, you still have a stubbornly high Unemployment Rate, it is coming down, others could say, low taxes great locale, and great cities, you canon ge get you so far it can only get you so far, what is the problem . In the past 5 on 10 year we started to raise too many taxes, we were not being competitive with your next door neighbors in virginia, tennessee or South Carolina. Were looking at doing just the opposite, i know what my competition is doing, we plan to beat our competition, were looking at tax reform, where we can lower both the income tax and corporate tax, i want to reward productivity, not punish productivity. We have to keep making things and building things and en vating, those invo vating, those are Companies Environment brincompanies that i wantto brih carolinas work force and our tax climate and quality of life, and right to work status, which weve had for a long time, and were got goiig to change it, is a great retributemen recruitmen. Neil how much do you look at problem that boeing has been having, to get the dreamliner batteries fixed. Were you breathing a sigh of relief . If you talk about the labor unions, and what the Obama Administration was doing with that, that is ridiculous. Ill fight with my fellow competitors even in South Carolina to protect our right to work stat us in North Carolina and my neighbors competing states, that very important. Neil regardless, both and other companies to look to righttowork states, your own included, that is not disrupted by whatever problem it had . No. No, not at all. And the other thing, we have to be careful is not accept federal money, which also often requires union work hold, work. Those are other things we have to fight, but well provide, good education, at our universities, two Year Community colleges. And great quality of life, second to none. Neil all right governor a pleasure thank you, sir. Thank you very much. Neil all right, this just in dow hitting another record high, eking to it, but a gain is a gain, and a record is a record. Another number you may not be looking at it be signalling this rally is about on be carterrized. Neil forget the dow hitting another record today or how close the s p is too another record. You might want to focus on the yield of a 30 year bond, it has been hopping of late, but still low, but not as low as 2 yield it was fetching a little more than a year ago, lets be lear, jimmy carter double digit rates these are not. But once the jeannie was out of the bottle, kaboom. Is history teaching us on american sequel . March sequel. Are you worried about inflation . I am worried to a degree about inflation. Neil what is your big concern . That fed takes principle away. According to last minute of of fed meeting of january 29 and 30, their expecting will be tame through 2015, and will do Everything Possible to keep the itheeconomic growth in a path tt it is, and keep buying assets to spur the economy, a lot of investors are concerned that inflation will kick in but the biggest concern is the if investor performance that fed wilbelieve that fed willstop pu. Treasures neil rates are going to go back up. That is the fear. Neil we go for more than 2 to 3. 95 , back and fourth,y know it has been ebbing up, and the fear, i remember this, as a kid, following the whole jimmy carter thing, before we knew it, it was a 29 prime, like a rocket. Is there anything here that hints of that . And that when the fed makes a promise, you are right to 2015 that is a lot of time for inflation that take hold. It looks like the factors are not aligned to rise immediately, one is labor costs, the unemployment dropped down to 7. 7 percent, but fed comfort zone is about 6. 5, or 7 , depending on which estimates you believe, it may take to 2015 if not longer for the Unemployment Rate to drop below 6. 5, if you i did second the numbers we saw last friday, in terms of Labor Participation, and Unemployment Rate dropping down to 7. 7, it was part time employment, not full im. Neil were a long way from the 6 half. I understand, but what worries me, is when smart guys like you, so many, are not worried about inflation, that is the majority of you, maybe the i dont know the crepe hanger in me, says im worried, the crowd is betting on one thing, they say that the fed is going to keep doing what it is doing for next couple of years, and throughout we could see prices runup, fed has a promise not to intervene, and it gets out of control, you dont see that happening . I dont see that happening immediately. Neil what would worry you, nick . What would you watch that would dissuade you of that . An immediate movement in sentiment in bond investors, if they pull out on one end, Labor Participation does change. Neil in other words wages go up. But what if the get slows this down, you mentioned 90 billion a month, but talk is a slow it down to 40 billion a month then 30 billion, slowly weaning us off, what that have the same affect. It could, the flip side of that argument, if the economy is doing better a lot of investors are creating yield, throughout the world the Interest Rates are pretty low, largest 4 Central Banks u. S. , u. K. , japan and e. U. All have Interest Rates about zero. Neil unrealistic, right. It is, and it is probably not in the longterm, but a good couple years. A good couple years to go, if rates do rise, there is a concern that inflation may be a factor but not probably in next couple of years or so. Neil nick thank you. Remember whether we tried to put al gore over the top in sales . He is having better luck with hank greenberg, in a different court, david boyd just one. Br with one login. To easily move my money when i need to. Plus, when i call my local scottrade office, i can talk to someone who knows how i trade. Because i dont trade like everim with scottrade. Me. annouer scottrade. Awarded fivestars from smartmoney magazine. Neil well he almost made al gore president , but now making big problem forever u. S. Government, uber lawyer, david boyd. Alowing a 5 billion classaction lawsuit against the government, suit claims part of the aig bel bailout was unconstitutional, representing a Company Starter international, david boies taking on the government, here and only here, by the way, before we get to david, the Treasury Department gave us this statement, two months ago, aig board reviewed the allegation against the company, and decides that they were not worth pursuing we continue to believe that claims have no merit, and well continue to defend the case vigorously. What do you make of just that . Well, you would expect them to say that, they almost got to say that. Neil a big rescue we cant reverse. The key thing, is that statement ignores what the judge has held. Remember they made a motion to dismiss, it was denied. Second it ignores the admissions they made in the lawsuit. They admitted that they did not have the authority to take on the equity, they did not have the authority neil aig, further did not have their shareholders interest at heart. Right, and when you have the kind of admissions that we have in terms of they knew they had a fully secured loan, they knew they were not at risk. That is not what they say now, but their internal daults say documents say, that and they admitted that in depositions. They were giving loan shark rates and above. Neil the money that was used to supposedly rescue aig was a backdoor deal too rescue a bunch of other players,. They take aigs assets, without telling congress or anybody they used those assets to bailout other companies, maybe they had a good the reason, but it was not right, fair or constitutional. But to take aigs shareholde