Government are eager to keep piling it on. Causing what you might call a devastating cut dependency with traders. The Labor Department reporting today, new jobless claims dropped last week to the lowest level in nearly six years to a total of 320,000. Good news, but traders worry that the fed will cut back on its Stimulus Program causing the dow sank 225 points. Here to weigh and, a harvard economist and columnist for the new york post. Im going to start with you. A selloff in the markets. This one dams. What you make of that . Is puzzling. The fact that the economy is growing at better than we shot to death but is good news in messina had been a bunch of times. Good news about economic soda fundamentals and get everyone panicked. The fed will stop tampering. To me it suggests that things are not in balance. There is a bubble in bond prices a something. The party cant keep going on. If the economy starts to grow too fast and some of the bubble is going to burst. Gerri loss of expectations. I cant tell you how many people i talk to on this show who said they think the markets will go lower because of other stuff going on out there. In washington in particular, of conversations about whether debt is going to mount the will handle the ceiling increase which will emerge again. Had the see that . Will there be more bad news for investors and americans generally . The fundamental issue is still jobs. So many people unemployed, underemployed, a parttime employe, going and disability, and without the engine of jobs it is hard to say that the fundamentals of the economy are sound. The get a lot of ripsaw hang around based on what washington is going to do. Frankly i dont remember a time in my adult life where everything was so dependent on some utterance of one washington official or another. It just seems to me that the economy is now just hanging by the threat of the latest comment from ben bernanke or somebody else. Gerri you have to say that he is probably the most powerful man on the planet right now. In moves equimark is, bond markets, politics. That is not the way it is supposed to be. Gerri i have to tell you, i look at some of these numbers. Big numbers out today that consumers are paying off more debt. Taking down our debt levels back to 20072006 levels. All good news. How is it that consumers are smarter than the federal government and possibly the stock market . Consumers will go up in 20078 and realize that they have been weigh more optimistic than was warranted. They just did not have the income coming in to keep taking on data. So they made reasonable adjustments. It was sensible that there were not spending as much and saving more. The federal government and to some extent the people who are backing to vote for the politicians still want to leave we can pay for the entitlements without having to make some other sacrifice and not willing to a cut entitlements. We dont want to raise taxes. The political process is a lot less perfect. Markets have knives to consumers in the right direction. The politics and not doing the same. Gerri absolutely true. Became clear that the president was going to ask for an ipod in every childs, students backpack. A great idea, but it will pay for that . And now the president s Approval Rating when it comes to the economy is 35 , just 35 . That is devastating. What do you make of it . I think that it goes back to your previous question. What is the difference between the consumers in the government . Consumers cant print money and they know it. The government can, and it does. And so you have the government talking as though things are Getting Better and there are some signs, but i think that it feels very shallow. You dont have to talk to too many people until you get the sense that they are not sharing in this new wealth. They dont feel confident in the future. I think its not just the president. It is congress. The republicans have gotten away from a growth agenda, stop talking about it coming easily get sidetracked by Something Like immigration that comes along. Suddenly that is the only thing they can talk about, and i think it is a mistake to lose sight of jobs, what both parties in congress and the president should be worried about. Gerri lets move back to where we started, obama and the middle class, the cost of raising children up 23 since 1960 if you factor out inflation. 270,000 to 500,000 to raise a child until the age of 18. Rea not even talking about top college. How can the middle class of five . Of these different pressures from every side if you want to raise kids. Your taxes are going up. Its just like there is no reprieve anywhere. Well it certainly is a problem. One response may be that people have fewer kids. You can see that in a lot of European Countries that have high tax rates because of overly generous entitlements. Birthrates are low, that population growth is negative. We are not so far away from that here unless you include immigration. Gerri we can change the family or we can change the government. We can change the policies and get that to go in a different direction. I think just a day walmart saying that basically the payroll tax increase is hurting its business gives you a clear sign that whenever the government does is almost an Immediate Impact on corporations and families. Your right. We have to get a government that works for the middle class, not against it. Gerri thank you for coming on. Great job. Interesting conversation. All right. Circle your calendar. The iphone, the highly anticipated iphone five s could be coming out september 10th. During me now with the very latest, editorinchief. Welcome back to the show. You were talking a lot this earlier. You are saying you might actually be on hand for the unveiling. , marking my calendar. This makes sense. Its almost a year to the day. I may be there. Definitely someone will be there. We expect we do expect the iphone 5s and also some other stuff. Gerri getting complicated. Its time for them to get complicated. To have a lot of competition. Somebody was just asking me about all of the funds out there. Samsung galaxy. There are all eating the launch because apple has been fairly quiet on the new product socalled innovation. Gerri here is what im looking for, something that really steps out, something that is break through, exciting, something almost as exciting as the ipad or iphone when it first came out. Gerri youre talking about newt categories. Apple has not done a new product category in about a year demand reaching for something new. What if we get the iphone 5s but also watch for the tv, the actual said to my tv set. These things are possibilities. Tim cook did promise a lot of products in the fall. I think it will have to hit the ground hard and fast and excite people, but if it is just the iphone we have two possibilities. Gerri lets talk about both. What youre expecting. Iphone 5s possibly a curved body, liquid metal which is just metal, but liquid metal. Fingerprint scanner, which would be in the same spot as the home button, which is really about security. Its a great idea, but it would make a phone conceivably more expensive. Ils7. Gerri the operating system. The mobile operating system which is built on the iphone and ipad many. It is really clean looking. By getting rid of all of the curves, of the crown, theyve given more space. Very intelligible, yet still recognizable. A control center, the photo tool is so much better. I was not only seeing it demonstrated but i have tested and am anxious to get it on my current phone. The new phones will have it. But iphone 5s will also be a little faster and look different. The iphone 5c, for color, not cheaper. It is supposedly going to be 99. Typically they come out at 199. Probably a 2year contract. It would be a choice of colors, plastic back. Probably previous generation cpu, the thing that powers. Gerri who buys that . Students, but also developing nations. A lot of people think it is designed specifically for china. You know that in their last report china was a little bit flatter than normal, and want to reenergize that because theres a saturation point that we have reached. More than half of americans have smart phones, and 80 percent of cell phones. Theyre looking at these of the markets and want to expand fast and compete. Gerri expand fast, but here in america we are hungry for all new product category. Please something new. Gerri thank you for coming on. Great to see you. Welcome a more to come this hour including if you love wine we will have advice on how to turn that into a big, big dollars. Next, buy a product based on his celebrity endorsers . Some people do. One Major Company seems to think the answer is no and is dropping its spokesperson. Who is the highest paid celebrity endorsers. Here is a hand. When we made our commitment to the lf, bp had two big goals help the gulf recover and learn from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Gerri losing some weight. The Company Planning said feature fewer celebrity endorsers saving the company from paying at huge endorsement fees. With more, the ceo of asymmetric and advertising analytics. Is this a smart thing to do, get rid of the celebrities . I thought they sold everything. Theyre three big advertisers. And the same playbook. The aftershock. They attach it to a weight loss brand. They done this word so long and so frequently that consumers cannot distinguish which celebrity goes with which brand. Anything that shakes that up is really a good idea. Gerri that seems crazy. Is that the right thing . I have not looked at the new ad that theyre coming up with, but a fresh approach is a good idea. Ossian these before and after shots with the celebrities. Theyre kind of risky thing at times. Gerri thats what i was going to ask you about. Have you know that everyone likes a certain celebrity . It seems like it would be difficult. Absolutely. We just as a study where we look at every Single National and the united states. The celebrity as performed worse. You really get a subpar execution. The reason is, just like you said, celebrities are polarizing. It is very, very difficult to find a celebrity that everybody likes. Almost all celebrities, there is a lovehate thing going on. The second thing is a lot of the ads are really not that relevant to consumers. Consumers struggle acquire a celebrity is in this ad in the first place. Long gone are the days gerri i want to go back to your idea that celebrities are polarizing. Tiger woods. Just to name a few. These people, there is. Its so polarizing. They appeal to a very specific demographic. Credit to cover that having a general appeal, people really like them or have away at them. That kept up the total audience size for that brand if theyre going to choose one of those. Gerri why is it that people gravitate toward celebrity endorsement . If it does not really work that well. Thats a great question. You think about beyonce, for example. A variants expense of celebrity endorsers. She did not do as well as that cocacola polar bear. Theres a lot of myth in this industry. There is not a lot of hard data that proves that these things are not as effective as you think. That is what we are about to change, but is the whole point, having gated to prove the economics of the celebrity you are picking. Gerri you will make a lot of celebrities matt, peter. [laughter] already have. Gerri thank you for coming on. Interesting conversation. Thank you. Gerri how much to these companies shell out for a famous face . The answer is easy, millions and millions and millions. The list of the highest paid celebrity endorsements is tonights top five. This talented team of olympic champion earns 20 million from endorsements including 9 million from puma alone. Catherine zeta jones got 20 million to star in commercials for tmobile. Number three, beyond say. Two major endorsement deals, one with aids in them, the other a 50 Million Contract with pepsi. Number two, 50cent, not only the face of vitamin water, but as 10 stake in the company. 90 million. The number one highest paid celebrity endorsers is david beckham. The soccer superstar is the face of our money, samsung, and diet coke. His lifetime contract with adidas is worth 160 million. Other bigtime celebrity endorsers, justin bieber, he had to make that list. Brad pitt. Later in the show, confused why your 10yearold is reading hemingway . Next, we answer the question, how you do that . Tips on investing in a winery or starting one yourself. Stay with us. announcer scottrade knows our clients trade and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Voted best Investment Services company. Always go the extra mile. To treat my low testosterone, i did my research. My doctor and i went with axiron, the only underarm low t treatment. 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Gerri your love of fine wine could be a fine investment opportunity. How to turn a profit from your very own winery. Gerri okay. I have a chevy question. What does antonio banderas, drew barrymore, nancy pelosi, and mike ditka of 11, and . It turned their love of fine wine into a moneymaking machine. Of course owning acres of lush California Vineyards sounds romantic, but can you turn it into a reality . Joining me now with tips on doing just that, a columnist at market watcher. Great to see you. Thank you for coming on. Color me skeptical. I think this is one thing that everyone dreams of doing that cant pull off. Thats exactly it. Anyone who has had a good glass of wine has traced it back in the mind, how did they make that, maybe i could. It is tempting, but not easy. Gerri the most important thing is the land. Thats why california has become the go to place. It has the best plan for making wine. Also as the los expensive land. Napa, you could be looking at a half Million Dollars an acre. Gerri it is not just that. You plan them in the have to wait forever for them. It will take about three years at least for the full vineyard to really come into production. Then you have another three years are so after that before you can really produce good one. I talked to dan aykroyd, speaking of a celebrity who has his own winery. He said its really intend to talk to your all. Can you imagine buying a stock can say, wait to and 20 years in the united a profit. Gerri you might. Now one thing you can do is you dont have to be in california. Where else can you go . Basically you start working your way from california. Close to california, washington and oregon are really solid and hot places. You will still pay for the acreage. Push your way into places like virginia, new york. These are places you might get land for 10,000acre and could still produce a good bottle. Gerri i dont really want to start a vineyard. What are the short cuts . Do what they call custom fresh. Basically its like renting a wine maker, plot of land. They will pick grapes, they may even pressed them. That will make your wind, bottle it. Really, all youre doing is essentially creating a brand. You can do that for a lot less. Gerri any other shortcuts . You could go into the spirits business. You could go into that. It does not take as much time. Usually you dont own land. You dont need to on a sugar cane plantation to make room. Thats another shortcut. Gerri how much money are we potentially looking at to invest and then pay off . The payoff, where you will see the money is in the land appreciation. The famous example, he bought his properties in california for a thousand dollars an acre now there have to Million Dollars maker. That is where some of the real payoff can come. We are talking about making a little bit of money, not a lot. No one goes into the wine business these days. Gerri you have to love the wind. We were touring in virginia. It was interesting to see the first ones developed and what there were like today. There are those firsttimers to come in and really plow the fields for everyone else and get it started. It is generation after generation. And those people are probably making some money. Again, no one is getting really rich. One Financial Adviser said this is a classic example of an investment of passion, something you do because you want to, not necessarily because youre hoping to become a multimillionaire from a. Gerri question number one. We really want to know, if you want to do some serious soil composition, look at the land and breakdown. Even if its in a prime spot you want to make sure that this is it and get the education. You want to know the questions you need to ask about how to make a good wine. Maybe go to school for this is well. Gerri a lot of investment, not a lot of pay off, except you get free wine. Not a bad thing and all. Gerri thank you for coming on. Good to see you. Coming up, they you feel confident managing your retirement . The results of a new survey. Where are the teachers and administrators . We show how computers are deciding what your kids are eating in school. You wont believe it. Copd makes it hard to breathe. But with advair, im breathing better. So now i can help make this a great block party. [ male announce ] advair is clinically proven to help significantly improve lung function. Unlike most copd medications, advair contains both an antiinflammatory and a longacting bronchodilator working together to help improve your lung function all day. Adva