Transcripts For FBC Markets Now 20130301

Stuart this guy is not falling. Almost 11 00 on friday morning. The spending in this country is completely at of control which is why we are where we are and the pain that people think they feel now, of the play button or 20 times. Stuart that is what people need to think about. The dow industrials, turnaround, and we are now 13 points on his right. The record, the alltime high, i think, is 14,164. Rihanna what 14,060 and going up just a little bit. How about that on doomsday. And nice reversal. Stuart all right. Friday morning. It is yours. Is a way to look at the sequester in Government Spending. Is everybody else mad at the washington d. C. Housing market has been doing so well and the rest of it, the rest of the country has not . Well, is because of the government. Connell good morning. Im dagen mcdowell. Dagen im connell mcshane. A new news poll saying the majority of americans say automatic spending cuts to the only way to control the budget. Connell the cuts will not stop uncle sam from dipping into your wallet. The irs says of furloughs until after the april tax deadline. Dagen morris myers ordered via employees to report to work falling flat. People are always on the clock. What is being called the connected revolution. Connell an expert in that world coming in, plus several Security Fears realized. Giving a fox business exclusive access to its control center, as engineers track the latest threats coming in. Dagen the top of the war. Stocks now and every 50 minutes. Nicole petallides at the New York Stock Exchange with less than 100 points from an alltime closing high. Reporter can you believe were saying is again . Insider repeated yesterday were get within 15 points of our alltime closing high back in 2007 only to see us move into negative territory late yesterday. Here we are. We go again. But about 87 points away from the names that are leading the way including bank of america, walmart, disney, intel, seeing a very strong dollar which actually does not actually help the case of mallees not for the moment as far as income, that was not great. Consumer spending remained quite resilient. The fear next, which is interesting, is taking a little bit of a breather which could help this market along. Volume was a little better than expected. Back to you. Connell here we are. Less than 13 hours away for 85 billion in federal spending cuts beginning to take effect. Eightyone poll revealing 57 percent of voters say the only way to control the deficit through automatic spending cuts. Very little trust in congress. Getting it done on its own. The ceo of Euro Pacific Capital joining us from stanford, connecticut for. What do you make of that, people get this and say, well, i dont know. Maybe its not perfect, but is the only move will cut spending. Well, i think so far, the problem is these cuts are not large enough. Cutting Government Spending is good for the economy, its bid for the dollar, but these cuts are trivial. Maybe it is symbolic, but it is not enough to really make a difference. Unfortunately i think these trivial cuts are going to do more than offset other increases in Government Spending that going to take place throughout the year that are going to deport these minuscule cuts that are part of the sequestered. Connell you mentioned the dollar, but distillate of the stock market for just a second before we do that. You mentioned a second ago how close we are not to this alltime high in the stock market. About 14,081. Less of 100 points. The alltime high. What to make of this kind of collective stock market yawned and all the budget talks in d. C. . First of all, you adjust the stock market for inflation. Were nowhere near record night. Especially if hes a real barometer. I think the market is missing the boat, missing a point rather, just like they did in 2007. The last time we were the site. And we were right around the corner. The financial crisis. I think the stock Market Investors are oblivious to the problems. They think they have been solved. They think that the fed as an exit strategy that is credible. Doesnt. Think we are still headed for a worse economic crisis than the one that we had in 2007. But i think the real damage is not a point to be a stock market. Its going to be the bond market. Connell okay. That is obviously and for Strong Language. That is pretty Strong Language saying were headed for worst crisis that is worse than what we went through in a 0708. What you mean by that . We will apply . You will have a dollar crisis, even though it is strengthening right now and get some of the other fiat currencies, you have a collapse in the dollar. A huge spike in Interest Rates. I think our whole economy, which is built on the foundation of cheap money is going to topple when he pull the rug up from under. Dagen connell ill be by the day, but is this something we could be talking about, you could be coming in for years and eventually come up, yes. Youre right or is it something that is embedded in this one . It could be years. Of the its going to be decades. A big obama is going to finish his second term without the bottom dropping out. At the crisis is imminent. At the summit will happen to mark. I think it is building. And that began more confident of this call that i was about the call i made regarding the housing bubble of the financial crisis. I think this should be even more obvious. What is amazing to me is the same people that missed the last crisis are oblivious to this one. They have learned nothing from their past mistakes. They just keep on repeating them. Connell before the end of the second obama term. That is the prediction. In terms of another crisis. That is to restore things off. Good to see. Thanks allot. Dagen president obama currently holding a lastminute meeting with congressional leaders at the white house. Connell that is the story of the day, i guess. Peter barnes is there with the latest which is what computer . Well, they are meeting right now. Should be breaking up in the next few minutes, and it will get a briefing from white house secretary jay carney, mostly to get rid of what happened. We are expecting that nothing will happen today to avoid the sequestered. Senate majority minority leader, mcconnell, kind of decided he wanted to set the tone for this this morning, putting out a statement before the meeting saying, im happy to discuss ideas to keep our commitment to reducing once been spending at todays meeting, but there will be no lastminute backroom deal, and absolutely no agreement to increase taxes and, hey, guys, even if there were, congress is gone. Skedaddled last night, left town , not back until monday. Of course. Dagen i wish i had that job. Not really. Not all, in fact. Thank you so much for that report. Peter barnes in washington. You heard him just say the following. The next minutes a crisis will happen before president obama leaves office. It will be precipitated by the bond market. A message jump in Interest Rates. What they think about the protection . Chief investment officer. Joining us now from mountain view, california. Do you think that will happen . Spike in Interest Rates, spike in yield, financial calamity . Before the end of this term to. Peter is an optimist. Lets put it this way. Yes, i do think that their risk that was being pointed out is very real. Let me point out why. Look at the difference with what is happening here and in italy. We think italy as a crisis. We are in the same boat. We have just as dysfunctional government. One thing we have learned from the crisis in the eurozone is that the only time policymakers act is when the bond Market Forces intact. All the progress of the reform in europe took place when the bond market forced it to take place. The difference, though, is the eurozone does not need to finance its deficits from abroad. They dont have an ad account deficit in the eurozone. In the u. S. We have a current account deficit which is why peter pointed out that threat to the dollar, and i fully agree. Everyone has been chasing yield, jumping into bond. The biggest threats were facing is actually that we get some economic growth. At that time the bond market has to unravel. Only at that point, probably, will we get any reform done. We have gridlock. Nothing will happen. Its all just politics. The politicians will move and the bond Market Forces them to. Dagen staying on italy. Want to ask you about the Federal Reserve, but in italy you have a lack of work ethic, a socialist state, a deeply ingrained into the culture, like other not. A lovely place to visit. Very lax in his own network that much. That is not the case in the United States, and this is kind of an esoteric were looking at it. Would people be more willing to lend us money thinking that we can grow our way at of it is because of the american way and our desire to work and start businesses. Well, the italians probably think theyre good people. We have an entire mitt. Connell telamon attitude. Think about the cuts we have taken everyone is screaming. That is nothing compared to the cuts that we have to do. Trillion dollar deficit, not 8 billion. And there is much more work to be done. And true, the bond market is giving us the benefit of the doubt. One of the reasons why people love to invest in the u. S. Is because you can take your money out. No capital controls. But what it means is that the u. S. Dollar is attractive because of liquidity, not because of quality. And we cannot just rest of those laurels. We have to do something to improve the fundamentals. Otherwise a some point it will of know what will happen before the end of obamas term, but theres a risk. And as such investors have to take the caution, be aware that there is a risk in the bond market and the dollar. Dagen i have been hearing now for several years now. You dont see that in the way the people are acting with theyre money, and hes looking at the 10year. That kind of brings us to the point with the Federal Reserve. You say the trigger for higher Interest Rates would be economic growth. Why wont it be the Federal Reserve . Baby because the better reserve will act and tell his see some growth or maybe not . The Federal Reserve has not been in control. As the market. Good Economic News, the bond market might plunge. Everything that the reserve has been doing has been trying to prevent that. Keeping Interest Rates low, buying bonds, operation twist, telling folks to forget about inflation and focus on employment. Its all about tryto prevent the bond market from falling off a cliff if and when we get economic growth. Maybe it will work. Nothing has. And, again, maybe they succeed. Maybe everything will be dandy. The point is, there is a risk that things might not work out perfectly, and if youre an investor you better plan for it. If you look at the housing bubble, it is difficult to protect prick when these things first. Timing is difficult. The time to take precautions now, now when it is too late. Dagen the tax bubble bursting as a walk in the park compared to a lot like the one that we saw during the housing boom. Looks like we arent setting ourselves up for another one potentially. Thank you so much. Great to talk to you. Be well. Connell the 24 seven work force, the connected revolution. And this concept may be taking a little steam out of Melissa Meyers this past week for rihanna who employees about coming into work, to work in the office, not from home. Dagen sequester or not. The irs says it will still be collecting taxes come april. Connell live inside mcafee cyber threat facility, one of the top minds trying to think of on line attacks of your business and your money. So we will get to that of an but later on. First a look at the oil market. Just above 90 or just below 91 depending upon your point of view. Who will be right back here. [ indistinct shouting ] [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All onhinkorswim from td ameritrade. Executor of efficiency. You can spot an amateur from a mile away. While going shoeless and metalfree in seconds. And you. Rent from national. Because only national lets you choo any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. Now this. Will work. [ ale announcer ] just like you, business pro. Just like you. Go naonal. Go like a pro. Connell record earnings, record backlog. This company is called the chart. Chart industries. Reporting yesterday. Update. Actually, mentioned. I gave people this is of work assignment. Want to go look into january 209th investor presentation. But youre going to learn is that this is a liquid natural gas bank, a phenomenon. As i caught on to the degree that we have up here. Connell have to interrupt you. Breaking news. The speaker of the house outside the white house. The process we are about to engage in, the house should not have to pass a third bill before the senate does anything. The house has laid out a plan to avoid the sequestered. I would hope that the senate would act. But just make clear, the president got his texas accent it were first. In my view its over. Its about taking on the spending problem in washington. Theyre going to move. I am hopeful that we wont have to do it. The threat of a government shut down while we are dealing with the sequestered the same time. The house will act, and i hope that the senate will follow suit. Thanks. Connell speaker of the house outside the white house. After meeting with president obama today. The data sequester. Spending cuts set to take effect. Inside the white house, the breeze into the Briefing Room. The press secretary, jay carney should be appearing for. Dagen we cannot wait for that. Charles is still sitting with us, standing by or sitting by to react to this. Again, the republicans are saying were not going to make this about revenue. The president is trying to basically change the discussion. By the way, the Senate Democrats to present this bill is a combination of spending cuts. Is there really cut spending. It does not cut like a net deficit of all. You have the tax increases. Connell i think the main thing that he said, two things that got me. First of all, the president got an amazing bill already. The 411 tax hikes and spending cuts. That was just an absolute amazing deal of the president has already gotten. Number two, it was interesting that he brought of the continuing resolution because a month ago everyone kind of thought that that would be the next major battle. Somehow sequestration, there would have been a deal done with that. That would not have been it. This is where the republicans make their stand. Is going to make a pretty interesting. In a fight on both bell feel that the same time. Connell we talked a lot about how the market shook this often does not seem to care. So, you know, the sequestered is not go into effect. Some point, will market care more as we leave that to the possibility of a government shut down which is the next deadline is looming . You know, the market is interesting. Think the market likes the sequestration. And the surly they like a smoother, more orderly, but the idea of curtailing spending and getting to the biggest problems that face this country, not near term, long term. So far the market is saying not that its not a big deal, but maybe, maybe the on the steps that we could take. Dagen at the white house does not want to sequester cuts to go into effect because there will be an impact. There will be any impact on the broad economy that the average person can feel. In the market, you wont get that dramatic move in the market. So they fear what could happen because theyre like, okay, if we cut this, even in this kind of hand and wait, we can cut. Dagen another quick theory. Maybe the white house is seeing a real serious bumps in the road and is trying to cover there you know what. Personal spending today. Emmy, personal income was pretty much a disaster. 20year low. Connell we will hear the white house side of it from inside the white house and a few minutes. Dagen marisa meyer in order to employees and younger to get an officer go out, just quit falling flat in this day and age where people are already working 247 on there mobile devices. Connell we will talk brought that to me up next. Later, an exclusive look at the cyber terror team doing its work. Adam will take us live inside the command center. It should be pretty cool. All next week. An indepth look at the impact on your money. We will be sitting down with some of the bigger names as ever security. Dagen those two things dont scare the bridges out of you, dont know what will. Connell brace my elbow. This coming up next. A serious cyber threat that you will see anywhere else. Thats next week. 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The mission of the unmanned rocket is to bring a ton of supplies in experiments to the space station. This is being called the national day of unplugging. It is a campaign designed to get people to a slowdown in the ever increasingly hectic world. Get them to turn of smart phones, Electronic Devices for 24 hours. That will begin today at sundown. That is your fox business minute. Connell thank you very much. Breaking news. The bottom of the screen. Few minutes ago we told you we expect to see the White House Press secretary in the Briefing Room at the white house to talk about the budget cuts that are on the way. We just received word that it will be the president himself appearing at the white house to make a statement about the sequestration. That meeting that was just had with congressional leaders. President obama himself in attendance live here on fox business. Before that, this big debate throughout the week about yahoo workers coming into the office. Another story where workers wanted overtime for the time is spent on their blackberries when outside the office, but it is all part of this huge shift in the marketplace. New Industrial Revolution according to our next guest. Founder and ceo of app company. Good to see her again. The connection revolution. The connected revolution. What is the latest in that as you see it . It is this countrys history where software is being melded with hardware, virtually every type, and is making all of this are rare smart, connected, and talking to each other. Connell you should be allowed to work from anywhere. One of the reason to want to talk to you this week, and we have had you on before, but what you make of this Melissa Meyer move . I think it is speaking to a larger shift that she is seeing intercompany. And in the context of whether she is trying to do it. She came in, inherited this organization. And she needs to bring about a cultural shift in the organization. Connell like the move. Bringing people into the office as opposed to letting the market home. Theres a difference with an mandating something and saying that Everyone Needs to do this. There are certain benefits that you get from coming in and working in the office. Only some months that you can do when youre out of office, but its also nice to have of flexible balance and lifestyle where there are certain things that require you to work from home. So you would want to be able to adapt to that. Connell not necessarily a onesizefitsall. The employee, which might make a lot of people. Has been an interesting debate because it happened at this time. As you said to me geyser in this business of designing applications for the companys. Are people moving more toward being, you know, going to work anywhere because i am always connected . Or kind of going back in some ways, full circle, mr. Ernst traditional method we have to work together. That is the duty. It is changing the fundamental paradigms in which we do business or live our lives. There is this fine line in a balance which is different for every company depending upon their culture. Is bringing people together. The same time, it is technology. It is not going to replace human interaction. People working with the people. Connell good to see. Ellis business . All right. We are moving. Connell the run an application . Almost. Now we need to do more strategy. Connell have to use the right. All right. Thank you. The company. Thank you for coming on. Appreciate it. Dagen the latest from the meeting of the minds of the white house. We just heard from the speaker of the house. Now we will hear from the president of the United States himself in a matter of minutes from the white house. And despite those budget cuts, but sam is still planning to collect your taxes. In your art some of todays winners on the s p. Friday night, buddy. You are gonna need a wingman. 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We will bring you mcafees efforts to defend our banks against online attack coming up. Dagen stocks now, Nicole Petallides has her eyes on citigroup. Nicole taking a look at citigroup which today is up 1 2 , up but they are revealing potential losses from lawsuits have increased up to 5 billion in the Fourth Quarter from four billion dollars in the Third Quarter and even some of the rival banks had to pay out, discover for example, capital one also but in this case row regulators are all over citigroup for a couple reasons, we talked about add on products on credit cards, something regulators havent been watching, citigroup and their rival as well as cyberattacks, that is one of your topics this morning but that was revealed and led to some of the losses for citigroup so were seeing citigroup 1 2 , this isnt jarring the stock at all, a major market averages we have gone from the read into the green, not the alltime highs just yet but we are positive for the week. Connell as we wait for president obama to talk more about the story of the day, automatic budget cuts that set to take effect. Dagen what does wayne rogers think of this . What the make of this . This is playing out maybe as we expected. It is probably good. There is no way to get congress to do anything. You think of the fact that harry reid for all his posturing and everything, since 2009 we do not have a budget, we dont have a budget, how can you run anything, you cant run any kind of business, a Lemonade Stand without having some idea what it is going to cost you. Here is the government running analysis since 2009 with no budget. Connell the larger point earlier in the show when you see how it plays out over the next however long, maybe a few months. Certain departments have less funding, there will be jobs for low and everything else, a large part of the country wont feel that. The sky wont fall and all those things, that is a tough political decision. The waste of that goes on, so much waste going on you could from a lot more, they could do this several times and unless you put a gun to the head which is what the question is, theyre not going to do anything. It is not in their selfish best interest to do anything, you have to incentivize them. Dagen it is in the interest of the white house and democrats to make sure this is painful so they have evidence that it is hurting people land people who are furloughed, losing their jobs, so again the republicans presented the white house and democrats as here we will give you flexibility to implement it, they wanted to be a show. The president was one of the ones, saying that is going to be devastating to the people who get furloughed, people on the head start are not going to get their money, he goes down and plays golf with tiger woods. And spends 3 million or 4 million doing that. You cant do that, you cant have that kind dagen cannot fault the president for taking edification of a few days. [talking over each other] dagen i didnt want it was not an issue when it was george bush 43, not an issue im not arguing about him taking a vacation. I am arguing about the fallacy of him saying at one time this is going to be terrible, people are going to be out of work, people are not going to be able to participate in things they have in the past because of things we are cutting and in the meantime he is spending. Im not saying he doesnt have a right to take a vacation but dont spend 3 million taking a vacation with tiger woods and also saying you cant do this. Connell you are talking about the optics of that. I am talking about hubris, arrogance, you cant do that. Can you imagine . Connell back to the year earlier point the president has a tough political situation on his hands, more difficult argument to make, if you read woodward, if you read his book, at the time when it came up, jack jack lew brought up sequestration, that this was the end of the world, now we are at a point that it is about to go to affect where people are not talking that way. Of the world doesnt end the week or two from now how does the president , what argument does he make . He must change his argument in some way. He has the bully pulpit, he can say whatever he wants and unless somebody challenges him facetoface and says mr. President , look what i did, you spent spring Million Dollars playing golf with tiger woods, why do you talk about these other kings, did some wrong connell he may think his ideas hold better rather more accepted by the American People than the republican ideas, he is looking at the numbers say 9 more popular. That may be but this is not a republican democrat question. You cant make this partisan every time. This has to do with the country and the people as a whole and if you are the president and the leader of the free world you have to set some examples. You cant just act as duplicitous as they are acting and im talking about leaders in congress as well as the president. Dagen we want to bring in peter barnes in washington following all of this. What do you know, what can we expect to hear from the president at any moment now . Peter he is going to come out and sign this order authorizing the process of sequestration to begin and what happens is he signs of disorder and then the office of management and budget starts to go through and inform the agencies of how much they have to cut under sequestration. He doesnt have any flexibility on the amount they have to order cuts but they have flexibility on the timing of this, so he could for example say it will take a month to get furloughs going, a 30 day notice conlan and he could also play with the timing as well to try to buy some time to cut a deal with congress. Stuart final comment from wayne rogers and we expect the president in a minute or so, just came out in the Briefing Room said he is about to come out, the stock market, were interested in the fact the we are 14,000 on the dow approaching alltime high, we have been through these arguments in congress before and investors, people look and say so what . I said this the last three or four weeks, im not committing fresh money to the market. Until this clarifies itself and im not talking about them but the debt limit thing coming up, and a lot of things going on dagen you know what is best based on what washington isnt doing. Not what washington isnt doing but the fact the washington is so much of the economy is what is wrong. We are interfering with the freemarket system constantly and doing things, imagine some [talking over each other] dagen going to invest china . Not committing new money, i am in the market but these are stocks that have been gone for a long time. Maybe 15 years. Im not committing new money until i see some clarity. If you talk to Small Business men around the country will find out theyre not committing new money to expand their business or do things they have until they see clarity in washington. My point was the president is coming out to the break room at the white house and here he is. I met with leaders of both parties, in, the budget cuts that start to take effect today. I said these would hurt the economy and cost us jobs and to set it right most both sides need to be willing to compromise. The American People are strong in their resolve. Theyre strong resolve to recover from the worst economic crisis since the Great Depression and we will get through this as well. Folks all across this country will work hard to make sure to keep the recovery going. Washington isnt making it easy. At a time when our businesses have finally begun to get some traction, hiring new workers, bringing new jobs back to america we shouldnt be making a series of dumb, arbitrary cuts to things that businesses depend on and workers depend on like education and research and infrastructure and defense. It is unnecessary and in a time when too Many Americans are still looking for work it is in excusable. Now, what is important to understand is not everyone will feel the pain of these cuts right away. The pain will be real. Beginning this week, many middleclass families will have their lives disrupted in significant ways. Businesses that work with the military like the virginia shipbuilder that i visited on tuesday may have to lay folks off. Communities near military bases will take a serious fall. Hundreds of thousands of americans of whom serve their country, Border Patrol agents, fbi agents, billions who work at the pentagon, all will suffer significant pay cuts and furloughs. All of this will cause a Ripple Effect throughout our economy. Layoffs and pay cuts mean that people have less money in their pockets and that means they have less money to spend on local business, lower profits, fewer hires. Longer these cuts remain place the greater the damage to our economy. A slow grind that will intensify with each passing day so economists are estimating as a consequence of the sequestered, we could see growth cut by over 1 2 , it will cost 750,000 jobs at a time when we should be growing jobs more quickly. So every time we get a piece of Economic News over the next month, next week to month, next six months, as long as the sequester is in place we know the Economic News could have been better if congress had not failed to act. Lets be clear. None of this is necessary. It is happening because a choice that republicans in congress have made. They have allowed these cuts to happen because they refuse to budge on closing a single wasteful loophole to help reduce the deficit. As recently as yesterday they decided to protect special interest tax breaks for the welloff and wellconnected and they think that is more important than protecting our military or middleclass families from the pain of these cuts. I do believe that we can and must replace these cuts with a more balanced approach that has something from everybody. Smart spending cuts, entitlement reform, tax reform to make the tax code more fair for families and businesses without raising tax rates. Also that we can responsibly know where the deficit without laying off workers or forcing parents to scramble for child care or cutting Financial Aid for College Students. I dont think that is too much to ask. I dont think that is partisan. Is the kind of approach i proposed for two years, it is what i ran on last year. The majority of the American People agree with me in this approach including by the way majority of republicans. We just need republicans in congress to catch up with their own party and the country on this. If they did so we could make a lot of progress. I do know there are republicans in congress who privately at least say that they would rather close tax loopholes that let these cuts go through. I know there are democrats who would rather do smart entitlement reform than let these cuts go through. So there is a caucus of common sense up on capitol hill that is just a silent group right now and we want to make sure that their voices start getting heard. In the coming days and weeks i am going to keep on reaching out to them both individually and as groups of senators or members of the house and say to them lets fix this not just for a month or two but for years to come because the greatest nation on earth does not conduct its business in month to month increments or by careening from crisis to crisis and america has a lot more work to do. In the meantime, we cant let political gridlock around the budget stand in the way of other areas where we can make progress. I was pleased to see that the house passed the violence against women act yesterday. That is a big win for not just women but for families and for the American People, it is a law that is going to save lives and help more americans live free from fear, something that we have been pushing on for it long time. I was glad to see that done. Here is some important Bipartisan Legislation even though these fiscal arguments are taking place. Other areas where we can make progress even with the sequester and resolve. I will push for these initiatives and keep pushing for highquality preschool for every family that wants. Make sure weve raise the minimum wage so that it is one that families can live on, keep pushing for Immigration Reform and reform improvements on transportation sector. And i am going to keep pushing for sensible gun reforms because i think they deserve a vote. This is the agenda of the American People voted for, these are americas priorities, too important to go unaddressed and i will keep pushing to make sure that we see them through. With that im going to take questions and start with julie. How much responsibility do you feel you bear for these and is the only way to offset them in this point for republicans to depend on revenue or are there any alternatives . We have already cut 2. 5 trillion in our deficit. Everybody says we need to cut 4 trillion. Which means we have to come up with another 1000000000000. 5. The vast majority of economists agree the problem when it comes to deficit is not discretionary spending, not the we are spending too much on education, not the we spending too much money on job training or the were spending too much money rebuilding our roads and bridges. We are not. The problem we have is a longterm problem in terms of our Health Care Costs and programs like medicare and what i have said, very specifically, very detailed, is that i am prepared to take on the problem where it exists, on entitlements, and do some things my own party really doesnt like if it is part of a broader package of sensible deficit reduction. So the deal that i have put forward over the last two years, the deal but i have put forward as recently as december is still on the table. I am prepared to do hard things and to push my democrat democratic friends to do hard things but what i cant do is ask middleclass families, ask seniors, ask students to bear the entire burden of deficit reduction when we know we have a bunch of tax loopholes that are benefiting the welloff and wellconnected, arent contributing to growth, arent contributing to our economy. Is not fair, is not right, the American People dont think it is fair and dont think is right. I recognize john boehner has challenges in his caucus, i recognize it is very hard for Republican Leaders to being perceived as making concessions to me. Sometimes i reflect, is there Something Else i could do to make these guys im not talking about the leaders now but may be some of the House Republican caucus members, not to paint horns on my head come and i genuinely believe there is an opportunity for us to cooperate. But what doesnt make sense and the only thing we have seen from republicans so far in terms of proposals is to replace this set of arbitrary cuts with even worse arbitrary cuts. That is not going to help the economy. That is not going to help growth or create jobs. As the number of economists have noted, ironically it doesnt even reduce our deficit in the smartest way possible or the fastest way possible. In terms of going forward, my hope is after some reflection as members of congress start hearing from constituents who are being negatively impacted, as we start seeing the impact that the sequester is having, that they step back and say all right, is there a way for us to move forward on a package of in title and reforms, tax reform, not raising tax rates, identifying programs that dont work, coming up with a plan that is comprehensive and makes sense and it may take a couple weeks, it may take a couple months but i am going to keep pushing on and my view is ultimately common sense prevails. But what is true right now is the republicans have made a choice that maintaining an ironclad rule that we will not accept an extra dimes worth of revenue makes it very difficult for us to get any larger comprehensive deal and that is the choice they are making, they are saying it is more important to preserve these tax loopholes than it is to prevent these arbitrary cuts. What is interesting is john boehner just a couple months ago identified these tax loopholes and tax breaks and said we should close the mend raise revenue. And that is if it is not possible to do, they themselves suggested it is possible to do. If they believe that in fact these tax breaks for the welloff and wellconnected are not contributing to growth, are not good for the economy, not particularly fair and can raise revenue, why dont we get started, why dont we do that . It may be that because of the politics within the Republican Party they cant do it right now. Understand that. My hope is they can do it later and i just want to repeat because it is important to understand, it is not as if democrats arent being asked to do anything either to compromise. There are members of my party who violently disagree with the notion that we should do anything on medicare and i am willing to say to them i disagree with you because i want to preserve medicare for the long haul. We are going to have some tough politics within my party to get this done. This is not a situation where i am only asking for concessions from republicans and asking nothing from democrats. I am saying everybody is going to have to do something. And the one key to this whole thing is trying to make sure we keep in mind who we are here for. We are not here for ourselves. We are not here for our parties, we are not here to advance our electoral prospects. We are here for American Families who have been getting battered pretty good over the last four years, just starting to see the economy improves, businesses just starting to see some confidence coming back, and this is not a win for anybody. This is a loss for the American People. And again, if we step back and just remind ourselves what it is we are supposed to be doing here, then hopefully common sense will prevail in the end. Republicans, not ones that you bear any responsibility for give me an example of what i might do. I am trying to clarify the question. What i am suggesting is i put forward a plan that calls for serious spending cuts, serious and title reforms, goes right at the problem that is at the heart of our longterm deficit problem, i have offered negotiations around that kind of balanced approach, and so far we got rebuffed because what john boehner and the republicans have said is we cannot do any revenue, we cant do a dimes worth of revenue. What more do you think i should do . I just want to clarify. Because if people have a suggestion i am happy this is a room full of smart this is a roomful of smart folks. Jack goldberg. Mr. President , the next focal point seems to be continuing resolution that at the end of the month expires at the end of the month, would you sign the sequester that continues to fund the government . On related point, how the reach the limit of your persuasive power . Any other leverage you have to convince the republicans this is in the way to go . I would like to think i still have some persuasive power left. Let me check. The issue is not my persuasive power. The American People agree with my approach. They agree we should have a balanced approach to deficit reduction. The question is can the American People helped persuade their members of congress to do the right thing. I have a lot of confidence that over time if the American People express their displeasure about how something is working, that eventually congress responds. Sometimes there is the little gap between what the American People think and what congress thinks. But eventually congress catches up. With respect to the budget and keeping the government open, for our viewing audience to make sure we are not talking in washington gobbledygook, what is called the continuing resolution which is essentially an extension of last years budget into this years budget to make sure basic government functions continue, i think it is the right thing to do to make sure we dont have a Government Shutdown. That is preventable. We have a budget control act. We agreed to a certain amount of money that was going to be spent each year, and certain funding levels for our military, our Education System and so forth. If we stick to that deal, then i will be supportive of us sticking to that deal. That is the deal i make, the sequesters, additional cuts on top of that, by law until Congress Takes the sequester away, we have to abide by those additional cuts but there is no reason why we should not have another crisis by shutting the government down in addition to these arbitrary spending cuts. You would sign continuing to fund the government even at the lower levels of a sequester even if you dont prefer . I never want to make myself 100 clear with you guys, but i think it is fair to say that i made a deal for raise certain budget, certain numbers. There is no reason why that deal needs to be reopened. Was a deal john boehner made as well. And all the leadership made. If the bills that land on my desk is reflective of the commitments we previously made, then obviously i would sign it because i want to make sure we keep doing what we need to do for the American People. Yes, sir . To your question, what could you do, couldnt you just refuse to let them leave the room . Jessica, i am not a dictator. I am the president. Ultimately, if Mitch Mcconnell or john boehner say we need to go to catch a plane, i cant have secret Service Block the doorway. Right . I understand, i know this has been some of the conventional wisdom that has been floating around washington that somehow, even though most people agree that i am being reasonable, that most people agree i am presenting a fair deal, the fact that they dont take it means that i should somehow do a jedi mind meld with these folks and convince them to do what is right. They are elected, we have a constitutional system of government, the speaker of the house and the leader of the senate and all those folks have responsibilities. What i can do, is i can make the best possible case for why we need to do the right thing. I can speak to the American People about the consequences of the decisions this congress is making or the lack of decisions made by congress. But ultimately, it is a choice they make. This idea that somehow theres a secret formula or secret sauce to get john boehner or Mitch Mcconnell to say mr. President , you are right, we should close some tax loopholes for the welloff and wellconnected in exchange for some serious entitlement reform and spending cuts, programs we donor need to. If there was a secret way to do that, i would have tried it. I would have done it. What i can do is make the best possible argument. I can offer concessions and i can offer a compromise, i can negotiate, i can make sure that my party is willing to compromise and is not being ideological or thinking in terms of political terms and i will continue to do that but what i cant do is force congress to do the right thing. The American People may have the capacity to do that, in the absence of a decision on the part of the speaker of the house and others to put middle class families ahead of whatever political imperatives he might have right now, we are going to have these cuts in place. I am hopeful about human nature. Overtime people do the right thing and i will keep on reaching out and seeing if there are other formulas for other ways to jigger this thing into place so the we get a better results. Mayor bloomberg adores you, he argues theres what he calls posturing in these claims of big layoffs and a lot of people out of work and thinks that the effect of spending cuts are being overstated by the administration. I will give you an example. The department of defense right now has to figure out how the children of military families are going to continue with their schooling over the next several months because teachers, typically civilians, are therefore subject to furlough which means they may not be able to teach one day a week. I expect we will be able to manage around it, but if i am a man or woman in uniform in afghanistan right now, the notion that my spouse back home is having to worry about whether or not our kids are getting the best education possible, the notion that my school or my children on an army base might be disruptive because congress didnt act has an impact. Mayor bloomberg and others may not feel that impact. I suspect they wont but that family will. The Border Patrol agents who are out there in the hot sun doing what Congress Said they are supposed to be doing, finding out suddenly theyre getting a 10 pay cuts and having to go home and explain that to their families, i dont think they feel this is an exaggerated impact. I guess it depends on where you sit. What is absolutely true is not everybody is going to feel it. Not everybody is going to feel at all at once. What is true is the accumulation of those stories all across this country, folks who suddenly, might have been working all their lives to get an education just so they can get that job and get out of welfare and they have their kid in head putter and suddenly the head start spot is gone and theyre trying to figure out how my going to keep my job because i cant afford child care for my kid, some of the suppliers for those chipbuilders in virginia, you have some suppliers with smallbusiness and this is all they do and they may shed down those companies and their employees are going to be laid off, the accumulation of all those stories of impact is going to make our economy weaker. It is going to mean less growth. It is going to mean hundreds of thousands of jobs lost. That is real. That is not, we are not making that up. That is not a scare tactic. That is a fact. Starting tomorrow, everybody here, all the folks who are cleaning the floors at the capitol now that congress has left, somebody is going to be vacuuming and cleaning those floors and throwing out the garbage, they are going to have less pain. Janitors, the security guards, they just got a pay cut. And they have got to figure out how to manage that. That is real. I want to be very clear here. It is absolutely true that this is not going to precipitate the kind of crisis we talked about with america defaulting and some of the problems around the debt ceiling. I dont anticipate a huge financial crisis. But people are going to be heard. The economy will not grow as quickly as it would have. Unemployment will not go down as quickly as it would have. There are lives behind that. That is real and it is not necessary. That is the problem. Mr. President christi parson. Mr. President , your administration waited on proposition 18 a few months ago. It looked like he might be averse to doing that. I wonder if you might talk about deliberations and how where their conversation that were important to you . Things that you read that influence your thinking . As everybody here knows, last year, upon a long period of reflection, i concluded that we cannot discriminate against samesex couples when it comes to marriage. The basic principle that america is found on, the idea that we are all created equal. Applies to everybody. Regardless of Sexual Orientation as well as race or gender or religion or ethnicity. I think the same evolution i have gone through, and evolution the country as a whole has gone through and i think it is a profoundly positive so that when the Supreme Courts called the question by taking this case about californias law, i didnt feel that was something this administration could avoid. I felt it was important for us to articulate what i believe, and what this Administration Stands for and although i do think were seeing on a statebystate basis progress being made, more states recognize samesex couples and giving them the opportunity to marry and maintain all the benefits of marriage that heterosexual couples do. When the Supreme Court asks do you think that the California Law which doesnt provide any rationale for discriminating against samesex couples other than the notion that they are samesex couples, the Supreme Court asks me or my attorney general or solicitor general do we think that meets constitutional muster i felt was important to answer that question honestly and the answer is no. Given the fact that you do hold that position about gay marriage i wonder if you thought about once he made the decision to weigh in, that marriage is a right that should be available to all people in this country . That is an argument that i have made personally. The solicitor general in his institutional role going before the Supreme Court is obliged to answer the specific question before them and the specific question presented before the court right now is whether proposition 8 and California Law is unconstitutional. We put forward a basic principle which is which applies to all Legal Protection cases. Whenever a particular group is being discriminated against the court asks the question, what is the rationale for this and better be a good reason. If you dont have a good reason we will strike down. And what we said is samesex couples are a group, a class that deserves heightened scrutiny. And it should be struck down. The court may decide if it doesnt apply in this case it probably cant apply in any case. No reason, it is the view i would put forward. The basic principle is, lets treat everybody fairly and treat everybody equally. The brief that has been presented accurately reflect our views. Mr. President. You said the country has to stop careening from crisis to crisis. A few more crisesand ahead of us taking the step back from this specific debate over the sequestered how is the leader of this country the you plan to stop the country from careening from crisis to crisis . A couple things. Number one, we keep making progress wherever we can, importance to middleclass american than those fighting in the middle class. You have been able to get the violence against women act, the conversations taking place on a bipartisan basis around Immigration Reform are moving forward. We have seen great interest in bipartisan fashion around how to improve the Education System and child the education. And constructive discussions about how to reduce gun violence and i am going to keep trying to make sure we push on those things that are important to families, and you can get a lot done. That is point number one. With respect to the budget, what i have done is make a case to the American People that we have to make sure we have a balanced reduction and deficit reduction alone is not Economic Policy and part of the challenge we have here is not only congress but washington generally spends all its time talking about deficits and doesnt spend a lot of time talking about how to create jobs. I want to make sure were talking about both. For example we could put a lot of people back to work right now. Rebuilding roads and bridges and this is deferred maintenance and we know were going to do it and connects Mitch Mcconnell was a rotten bridge. And they want to see that improved. How do we do it, that will create jobs and businesses and reduce commuter times and improve commuter safety and that has to be part of this conversation. Not just this constant argument about cutting defense spending. I guess my point is what i want to try to do is make sure we are constantly focused, that our true north is on how are we helping American Families succeed . Deficitreduction is part of that agenda and an important part but not the only parts and i dont want us to be paralyzed on everything just because we disagree on this one thing. As i said did jessica i am also hoping that over time, perhaps after republicans step back, maybe they can say we stuck tough on the sequester, this makes us feel good and republican caucuses is in a better mood when they come back, maybe then we can have a more serious discussion about what the real problems on deficit and deficit reduction are. The good thing about america is sometimes we get to these bottlenecks and we get stuck and the sharp partisan fights but the American People pretty steadily are common sense and practical and eventually that common sense practical approach wins out. I think that is what will happen here as well. In the meantime to make the final point about the sequester, we will get through this. This is not going to be apocalypse as some people have said. It is just dumb. It is going to hurt individual people and it is going to hurt the economy overall. But if Congress Comes to its senses the week from now, a month from now, months from now, there is a lot of open running room for us to grow our economy much more quickly and advance the agenda of the American People dramatically. And so this is a temporary stop on what i believe is long term outstanding prospect for American Growth and greatness. Thank you very much. Connell sequestered days here, president obama making his case to the American People. Im Dennis Kneale here with tracy byrnes. The president still hopeful for compromise, way to come of the smarter cuts than the sequester called for but only if republicans will agree to tax increases yet again after weeks of stoking the big crisis he now says not every american or americans wont feel at all. Even strayed into gay marriage for some reason. Lets go to wayne rogers one of our contributors and ask what do you think of the president s comments . I found the holding of fraud if you will forgive me. That may sound like a drastic word but heres a man talking about the middle class and people who sweep the floors in the white house and the people who are going to lose their jobs. Meantime he takes a trip to florida costing 3 million of taxpayer money to play golf with tiger woods. The guy should start at the top. If he really believe this, and i say this to you mr. President , start right there in the white house. Mayor bloomberg who runs the city of new york, the largest city of the United States takes 1 year. That is whaa his pay is. Why dont you do the same thing and set an example in the white house for the rest of the country . Tracy wayne rogers for president. We got to go to the floor of the Stock Exchange and see how the market reacted to all this. Nicole petallides, wayne rogers is on the money, the market barely moved. Nicole wayne rogers is on fire telling it like it is and the truth is we dont want to see further tax increases. On the contrary you want to see the deficit reduced, you want to see continued budget cuts and you dont want to hit americans. What were seeing with the markets, we are back in the green again, we are higher for the week, the Dow Jones Industrials up 23 points, all three of our major averages of 0. 1 . Interestingly enough i kept an eye on the fear index which during the president s speech moved into the green and then pull back. The dollar remains very strong at home and that is something that could pressure us at home. There is concern about when we saw manufacturing numbers coming in and we saw expansion that is good news but asia is slowing and european, concerned about recession once again. This is the environment we are in and at the same time not too far off of the alltime high. Dennis personal income just fell more than it has in a couple decades. Charles payne, the president almost jocular at times and the press corps lacking get his comments that this was a big crisis and thousands of people were going to be hurt by this. Charles then he said it wasnt apocalypse. His main thing has always been fear. That is his major weapon. Fear and separation, divide and conquer. What hurt me a lot in addition to what wayne said was the continuation of class warfare thing. We cant balance we cant balance the budget or bring the deficit down on the backs of seniors and college kids. They cant be responsible for the entire thing. A fantastic package of 41 in tax hikes were dollar in spending cuts but goes even deeper than that. You catch the par when he talked about john boehner not being able to reel in certain republicans who paint horns on him. This is what he is saying. He is saying the tea party guys are racist. They will never do what a black president wants them to do. That is exactly what he is saying. If you dont believe me listen to w. B. Later this weekend tomorrow morning. It will be echoed within the black community and Hispanic Community that opposition to obama is not based on differences in economic philosophy. He says that almost every single time but became out and said again. [talking over each other] charles as a black person who understands better than you do i heard it many times, i heard it today. Also a victim card. Seniors are going to be victimized, College Students will be victimized, it is never about the country united, working together for common goals of the strong. Tracy Potomac Research with us as well, gregg, you listened to all this, market over the last few days has not reacted to the scare tactics, the president back of a little bit, the sky didnt fall but people are going to lose their jobs. Will that really hurt the economy . Of little. With a very unhelpful sets of comments by obama. I would say this. The bigger story that the markets are going to have to look at involves march 27th. That is the next crisis. It is entirely possible that we would have a continuing resolution from the house that restores all funding for the pentagon. And continuing resolution from the democrats in the senate that restores our spending for domestic discretionary spending. If you have two competing bills i dont rule out talk about a Government Shutdown as we get close to the twentyseventh. Dennis peter barnes live at the white house following the meeting. Only today between the president and congressional leaders, the approaching crisis notwithstanding. Peter clearly the white house strategy, the sequester cuts unfold, and they will unfold over time but the white house is counting on real cuts and furloughs and the impact of this eventually starting to get down to voters directly and so that they turn around and put pressure on republicans to come back to the table and try to cut a deal. Republicans on the other hand are content to live with the spending cuts, most of them feel if this is the only way to get them and to that at least this first year and over ten years over 1 trillion, stay the course, they think the politics for them for them are good on this. Dennis with hear from rich edson on capitol hill with reaction. Seems like both parties pursuing gridlock as a strategy, playing chicken. Rich it is. You heard john boehner at the white house, when the president spoke he said no new revenue, president obama kept repeating his same position saying he is simply hoping to convince republicans of his position. No sign of compromise when it comes to these budget cuts that are scheduled to begin hitting the federal budget today but i want to pick up something gregg said here that is a good point that the next fight is the Government Shutdown possibility, march 27th, republicans next week according to john boehner will vote and he says will pass the government funding measure to fund the government for the rest of the fiscal year averting a Government Shutdown but that is something the senate has to sign off on as well. Republican aides tell us what they will produce a bill that does include funding levels that include these spending cuts, the sequester. Lower Government Spending level that includes all of these spending cuts democrats and republicans havent figured out a way to avoid yet. What they come out with and the specifics of that how military spending is treated, how labor spending is treated, that is something democrats and republicans in the house and senate are arguing over. President obama did give a decent signal here, we may have to avoid a Government Shutdown on march 27th and if he got a bill that reflected current law which is the spending cuts and he would sign it because that was part of the deal he made, pretty good indication at least early on that we might be avoiding Government Shutdown but we see this play out over the next 26 days or so. Tracy thank you very much. I am going to pick up on something greg said, these comments were useless. We talked about violence against women, Early Childhood education, gay marriage, not addressing spending. No. The idea, first of all, they are saying talking about cuts, it has to be there in the first place in order to cut something. Why should it be there in the first place . Why should they continue to raise the ante and spend and spend and then debate about cuts . It shouldnt be there in the first place. The second problem is he said we are here, we represent the whole country. In the meantime he turns that around and says the republicans and democrats and both parties are vying for something, it is a competition. It is not a competition. They all should band and he should end too. The fact that he doesnt bend and he says it is the other side doesnt do this, they wont do this, why . Because he is taking a position himself. He is taking a position, he should be able to compromise as well. Dennis the dow over 14,100. America getting a bit of crisis fatigue and we dont even believe washington. What do you say . Could be. Ben bernanke is a part of this narrative, dont have time to talk about that. Let me make another point that may be really important in the ongoing pace. The elephant in the room is entitlements. The fact that theres not a serious plan. Even to address Social Security change, very tiny little change, if the president is unwilling to support that, i think that is a big part of the problem. Tracy we are certainly living longer, phil flynn at the cme, jump in on this now. Oil moving, what is the commodity market doing in reaction to this . The biggest concern for the oil industry is the possibility that the government will not approve new project. That is the big issue. We heard from can salazar, if this doesnt go through we are out. What is that doing to the market . Not a lot. The market is focused on demand, demand out of china, weak manufacturing data, the lowest levels since new years eve, the lowest level of the year down 1929, we did get a little boost of of the u. S. Data, the manufacturing data came out, we came off of those blows a little bit but now we are going back down, a report that iran has taken fourteen Million Barrels of oil, ready to go somewhere if they lift some sanctions. That took away the momentum. We also have our box down, hit a new low since january but bouncing back a. Consumer confidence was up. If people are confidence with high gasoline prices maybe we can afford it. Dennis charles payne, Fourth Quarter gdp barely grew at all, personal income just fell the most in decades. At what point do you think Government Policies are stopping this recovery . Charles january, 2009. At what point . The worst post recession recovery in the history of america. The absolute worst. The president , by the way, he didnt waste time. He followed a game plan he has followed all the time. He is always out there trying to win the popular opinion. It is not about economic policies. We fall for that trap. It is an agenda, an agenda based on social justice and occasionally some sort of economic facade around it. Every time he speaks he is selling to the general public not a policy but himself and that is where he keeps winning but the economy keeps losing. Tracy like he is trying to convince himself. What happens now . Will anything happen . We will have the sequester hopefully. This idea when he says they are holding the country hostage, why not . It was there in the first place with a didnt do that the country wouldnt have to be held hostage to this and the fact of the matter is theres more waste in the federal government. We know this already. You can take senator coburn every year publishes the wasteful, takes the hundred wildest waste programs and tells you exactly where the money is going. Absolutely idiotic that he can stand up and god knows he is the president , i know he can say what he wants to say but when he can stand up and say that with a straight face and not talk about all of the waste that is going on that they could cut and take out of this and not have to make [talking over each other] charles eight Million People dropped out of the job market, five Million People lost their homes, the sacrifices the average american has made, they should be absolutely insulted to the core that the president says the Government Hand cuts 2 . Anybody out there, every single american, 160 million got a tax hike in the last month, everyone should be appalled, doesnt matter who the president is that a government cant cut 2 in tough times. [talking over each other] dennis lets take it back to the political aspects of this, who loses more here . Republicans or democrats . This is not a clearcut one like a fiscal cliff. The president stands to lose potentially. One other quick comment. In listening to all the panelists i think the market play is not the stock market, it is the bond market. Yields may fall in this climate. Tracy we got to thank our panel. That was heated. [talking over each other] tracy peter barnes and rich edson in the fieed as well. Dennis we are going to be back with a lot more. La dennis edit history past the hour. Socks every 15 minutes. Nicole. Reporter the first thing i picked up, everybody looks to washington. They worry about washington. Every time the president speaks. What is interesting. Looked at are entered the chart. Youre seeing now that we are moving to the highest levels of the date. closer to the alltime closing highs. At the same time, the dow was up 48 points. We certainly see some of the retail stocks, drug stocks doing well. Bank of america, walmart, intel, does the are some of the best performers. Economic news has been mixed. Spending still of the rise. We are doing well at home as far as manufacturing. Auto sales for the month of the barry did see a rise. As far as individual stocks, theyre all over the place. You will above 800, tom sullivan knew low. Young who had a new high, and we are seeing other names on the move. These are names that i am keeping an eye out. A busy day on wall street. Getting close to new highs, and a winning week. You can at least march that one down. Thank you. Dennis thank you, nicole. They came, met, left. Lots of talk. President obama and republican congressional leaders agreed to disagree on those automatic budget cuts. This is not a win for anybody this is a loss for the American People. Dennis joining me now, former bill Clinton Campaign adviser Simon Rosenberg and republican senator from new york al damato. Lets start with you. Have you seen anything like this . Is this just regular old business in washington or is this different . Worse, it is politics as usual. People have distain for most public officials, elected officials. And theyre right. They should. Because both sides, and im going to say here, as a republican, i am not proud that we came forward with the kinds of changes that can and should be made. We look like the party of only the millionaires. We defended the millionaires tax. It was stupid. But there are things that can be done, carried interest where people are making or paying the lowest tax rate when they should be paying the highest tax rate. Cheryl in that first clip, 41 in tax increases from 1 spending cuts. Youre saying revenue is your biggest concern . No. I tell you it is to fold. Number one, i just mentioned one thing, carried interest. It is not there is not a damn reason that both parties should not come in just enact out one thing and take one egregious thing after another. Spending cuts. Do you think a person take me i make a pretty good livelihood here. A very substantial one, why should you be paid for by medicare . Cheryl i agree with you. Social security. You really think a person with an income of 500,000 or more, that they should be getting Social Security . No. That should be for people. It is not why put it in. It is an insurance policy. Dennis whether they have the courage to make an argument like that. Both parties. Les the way in terms of jackasses because he has a moral responsibility to stand up and stop politics. The election is over. You won. How about doing the job for the people. Dennis Simon Rosenberg, take that. Hard to follow. I agree that this was a dumb act say. We have to return to regular order. We have a process for developing the budget. Let paul ryan beat his party in the house. The republicans believe in and. Let him kraft a smart, republican, conservative budget this year. Lets go back. Were going to have storage growth. The economy has been struggling. Recover that an earlier segment. This guarantees that we are going to have maybe half a percentage growth. That is not good for the markets are business. Third, i do think what is going to change now is that the American People are going to understand. The republicans going to understand that cuts involve real pain. I think we are getting to a healthier place in this debate where we realize we need a balanced approach. This is going to be hard. Hopefully this leads us to a better place. Dennis a followup question. Youre an adviser to bill clinton. I met the man. He looked at president obama. And in recent weeks, he only has a meeting with leaders today, the day of the cuts. If this were bill clinton as president of nafta believe he would be there at the white house, all my sessions and meetings of both parties bringing people together. Why is president obama so dissing based . Do you disagree with that observation . I dont. Nothing thats fair. The republicans elected president. Incredible animosity. There have been said downs. He offered a plan. They rejected it. Plenty of backandforth communication going back and forth. Now, i think it is going to be important to win board now that these leaders, maybe today was the star were there really are fourth in this house to get in the room. The tango, so the speak. But in the room and work together. Dennis you just heard this incredible animosity. It seems like the president s supporters paid him as some victim. Never know personal attack. This is a policy by. The long lines at the airport. Theyre going to see a lot how these cuts have hurt america. Youre going to see day care which is not providing. Preschool programs which are heard. Youre going to have every bleeding Heart Program there is. These are good programs. No one is taking away from that. What you do something about the entitlements. No, no. We cant do that. What you go after wall street. What you make sure they pay their fair share. You wonder why people hold politicians in the stain. You know what, the people right. If you dont have the carriages, republican or democrat to call for same sound policy than you should get out of office. Dennis nice job. Of the passion. Thanks also to Simon Rosenberg. Good to be here. Cheryl thats fine. Even with tax speeches, job cuts and tax of automatic spending cuts, america is still with the above cards. The fourth month of over 15 million in sales. Jeff flock is out of a buick in illinois. Are they selling bewicks . Reporter they absolutely are, tracy. It does not get any more main streets. We love to get to take on it. And listening to these guys, nobody that comes into here seems to care about all this stuff in washington. Really care about what. Theyre talking about the beautiful buick and gmc in the high quality of car. Theyre excited. Reporter willing to talk to us. But take a look at the numbers now. A long way from bankruptcy. The gm brand is doing great. Of 15 . Why what is driving this . Turnaround elected to show room. We dont have a car or model that is more than the yearold. Everything is completely redesigned and completely full of restyling the economy. The Interest Rates are low, the leasing payments reporter Interest Rates and an alltime low when youre able to do leasing that you were not before. We did over 42 . More car for the money and a lower payment. Turning their cars in. Reporter that is because of the low Interest Rates. Sybil criticize the policy, but it has of the auto industry. The numbers on the contracts. That is also a big one. That says to you has a recovery. Absolutely. The housing is picking up, and the other industries as well that utilize the utilities. So it is definitely a spark, and we get that all the 2014 lineup going to ship out here in maine. Reporter and now we spend a lot of time agonizing over things like the sequestered, but right now that is not doing anything to harm truck and car sales in the u. S. Tracy our big gas guzzlers. Thank you very much. Reporter wed you. Dennis id. Tracy i do, to. Reporter lets bring back to leaded gas. Dennis financial emergency in motown. Ahead, with the governor of michigan is going to do about it. Tracy and fighting cyber crime. An exclusive live look inside mcafee control center. Reporter and we will be talking about project blitzkrieg. Not hyperbole. Every american with a banking account, get ready if. Within 30 days you could be attacked by several criminals. We will talk exclusively with the back of the Software Engineer who discovered this threat and gave these options on how to protect yourself coming up on fox business. [ male announcer ] this is joe woods first day of work. And his new boss told him two things cook what you love, and save your money. Joe doesnt know it yet, t hell work his way up from busser to waiter to chef bere opening a restaurant specializing in fish and game from the great northwest. Hell start investing early, hell find se good people to help guide him, and hell set money aside from his first day of work to his last, which isnt rocket science. Its just common sense from td ameritrade. You are gonna need a wingman. And my cash back keeps the party going. But my Airline Miles take it worldwide. [ male announcer ] it shouldnt be this hard. With creditcards. Com, its easy to search hundreds of cards and apply online. Creditcards. Com. Reporter un Shibani Joshi with your fox business brief. It was a sad day. Michigan Governor Rick Snyder has declared a financial emergency in the tory. The next debt will be to choose an independent overseer to tackle the three entered and 27 million budget deficit and 14 billion in longterm debt. In j. C. Penney ceo runs johnson is testifying in new york court in the contract dispute between his company and macys over Martha Stewart living. This comes as both s p and fitch downgraded j. C. Penney one notch the Department Store posted its biggest quarterly loss since 2004. In u. S. Factories are expanding for the third month in a row. The fastest clip since june of 2011. The index rose up from january. And thats the latest from the fox business network, giving you the power prosper. She knows you like no one else. And you wouldnt have it any other way. But your erectile dysfunction you know, that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. 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Dennis a quarter till the top of the hour. Stocks, as we do every 15 minutes. Nicole petallides live at the New York Stock Exchange with some facebook news. Reporter lets take a look at names that everyone knows very well. First is facebook. Holding a big event on march 7th. You can see the stock is not really reacting. Showcasing a new look for theyre news feed. Of course, this book has been trying to reinvent themselves over and over again. Right now at 2727, nowhere near that 30 ipo price. Apple. 700 in september. Well, today is setting a new annual low. Trading as low as 4. 31. We see a nice walk and talk. He is an apple shareholder. He obviously did not like all of the chatter about what they will do with their cash. Instead, he wants us to focus on great products thaa apple has. This is apple tv. The new iphone watch. Think of all the things that they continue to innovate. Stocks certainly not doing too well. Tracy we will see you at the top of the hour. All right. Cyber attacks on the rise. Efforts to stay at that hackers are in high gear. Adam shapiro live from santa clara, california, where he has exclusive access to maccabees world headquarters. Hey, this is cool. Reporter very cool. We are actually in the war room. This is where they are monitoring cyber threats, hackers, worldwide. Want to get to something that is a genuine problem. Project blitzkrieg targeted at every American Bank account. Possibly within the next 30 days. This cover this and verified it. He joins us to discuss why the bank account may be a threat and what you can do about it. Very simply what will happen in 30 days . There is a plan massive fraud. An uptick in fraudulent transactions against every american. Reporter this is called project blitzkrieging originating from a hacker. I cant even say his name. In russia. Essentially what they will do is target 35 angeles positions here in the United States. There already, from your research, about 500 victims, got 5 million. But other going to go after High Net Worth individuals. Your telling me every american with the bank account. Correct. The whole idea behind project blitzkrieg is to get as many accounts compromise in the short amount of time which means they will target average americans no matter how big or how small. Reporter how they do this . There will be transferring a couple hundred dollars from a large number of victims across the u. S. And then they will transfer it to other accounts who are actually willing accomplices in a moneylaundering scheme. So imagine those things that work from home, those people are actually laundering the money as part of the operation project blitzkrieged. Dennis again, they will be targeting 30 financial and institutions. Other banks taking this threat seriously . I know you first warned everybody about this last fall. So they are now putting all of the procedures in place and really becoming more diligent. Reporter what can i do as a consummr . It is at the High Net Worth individuals. Did anyone who does Online Banking if. As simple as changing the password every day or every two weeks . You can change your user name and password can keep your security suffer up today. Dont ever like anything that appears suspicious. Reporter even if some changing my password, if i have not scrub my computer clean with someones virus protection software, i need to get this offer to buy between. Right. Reporter and with project blitzkrieg there was one report i saw that said, perhaps, this was not going to happen. As you keep monitoring this he told me before we came on their 30 days. He think this is going to be a massive attack . The idea is a massive attack. They were asking for participation of one 100 other individuals to join in. So what they want to do is try to hit the banks hard is short amount of time, quickly, and as fast as possible to steal as much money and then disappear. Dennis have we ever seen anything like this before . We hear about the denial of service attacks, the Chinese Government allegedly depending upon who you believe, the chinese army, Chinese Government attacking u. S. Government institutions, but have we had this kind of massive, were going to take money from your accounts . There is always been financial fraud for years and years, this is the first time you actually have an individual saying, im going to organize this group. Im going to attack 30 u. S. Banks demanded going to steal as much as i possibly can. And the uniqueness is organization was the motive. Intention to commit financial fraud because russian of rosters have been around since 2007. The mel were involved, a term for stealing, it has been around since 2007. Reporter Senior Researcher at Mcafee Mcafee labs. We will stay on top of it. We will be hearing from the copresident of mcafee about some of the state of the our stuff that they have your that you can use to protect your computer is a home. Much more coming up on fox business network. Tracy that was great stuff. Let them at my bank account. There is nothing in it. All right. All next week. An indepth look at the cyber threat and the impact on your money, investment, and business. Teenine and, in the chain sit down with some of the biggest names in cyber security. The cyber threat all next week. Dennis we are like that. Dennis dissing it out. A win for disinfect dish network and the media minutes ahead. Tracy as we head out to break the dow is up 40 points. Testiculate decimal the winners today on the nasdaq. Intuitive surgical up almost 9 . We will be right back. We know a place where tossing and turning hawhere sleepless nightsng. Yield to restful sleep. And lunesta® eszopiclone can help you get there. Like it has for so many peoplbefore. When taking lunesta, dont drive or opere machinery until you feel fully awake. 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Just one problem, damages of 152 million. The jury award was less than 5 million. And here is just how bad it is getting for nbc today show, number one in morning news for 852 straight weeks until last april. In the february sweeps to the debt be in new york by the local show on the fox station. Good morning america just had its highest rating in 19 years and lastly, girls, wild gone bankrupt. The empire no longer owned files for reorganization under chapter 11. Howd the mess that up . It turns out Frances Renault 10 million in gambling debts owed tell when resorts. Whoops. Tracy bonehead. Almost a foregone conclusion. No deal to stop the automatic budget cuts. Now what. Dennis the next crisis has the government is set up run out of money