The republicans will not raise tax rates. The president , hes not going to budge on spending cuts, and if you scan the media this morning, it is the republicans who are getting the blame. Joining us now, monica crowley, a fox news contributor. And monica, why do you think that the president wants us to go over the cliff . Explain yourself. Well, first, it looks like the house g. O. P. Leadership actually went through the mayan apocalypse, okay . Last night. And the president wants to go over the fiscal cliff and always has for two reasons, stuart, number one, he wants all of the rates to go up. Not just on the 1 or 2 top earners. He wants everybodys tax rates to go up and even if you were to confiscate a 100 of the assets for the government for a handful of days. Stuart why would he want everybody to pay taxes to pay more. He wants revenue to pay for his monstrous, evergrowing, everravenous government, and he knows the money is with the middle class, not 1 . And the top 1 assets to income you fund the government for about 11 days. The real money is with the middle class he needs their rates to go up. The second part of this is, he wants the defense sequester, 500 billion dollars taken out of defense the next ten years in addition to the already 500 billion taken out of defense and wants that part of the equation as well and thats getting no ink. He wants to go over the cliff. If youre john boehner and your negotiating partner wants to go over the cliff, youre going over the cliff. Stuart lets advance this and take it further. Youre saying that the odds of this going over the cliff, that will be massive tax increases and huge spending cuts january the 1st. The odds are now very, very high and the president wants us to go over the cliff. Okay, got it. Now, fast forward. December 27th, the senate comes back into session. Harry reid may propose a series of measures that the president wants and put it to a vote and he may well get the vote and say, yes, were going to rise taxes on everybody over 250,000 and then what . He may, he may not. This is a senate under harry reid thats not proposed a budget in about three and a half years, going on four years, so he may do that, he may not. Whatever he does put in place, should he do that, stuart, is exactly what the president would want. So, that means tax rates go up under and the House Republicans reject it. The House Republicans they reject it over the cliff. Now, im trying to collect my thoughts here, this is moving really, really, quickly. If that happens, the senate has a measure and the republicans in the house didnt beat it and at that point the stock market really takes a nosedive. I mean, really, really, way, way down. Were start to go see some warning. Stuart could that not force the hands of the politicians on both sides of the aisle when wall street sells off hundreds of points and politicians take notice. Couldnt that prompt some compromise . Its interesting, here we have this massive debt bomb that is clicking away every single day, 16. 3 trillion dollars in the national debt. Annual deficits over a trillion dollars, that doesnt get their attention, but youre exactly right. The stock market is the most politically toxic element of this entire equation. Because it affects every single american. Whether youre invested directly in the market or 401 k or you have a pension, youre in the market in some way. That goes down, that will capture their attention. So we may get compromise. That could be the catalyst. Maybe. But if the market sells, its a catalyst, it was in september of 2008. When the republicans in the house rejected the firstedition tarp, the dow went down 780 points, immediately resubmitted it to the house and it passed, up went the market. You could see that again. Im glad you raised the tarp example. What usually happens when all of our politicians end up in this position and its no way to run a superpower, stuart, here we are. When theyre running around with their hair on fire you end up with a lousy deal. A lot of people say tarp was not necessary or shouldnt have have been done in that way you end up with a bad deal that postpones the inevitable. I want to make sure our viewers and investors are looking at the market carefully and i say hold on a second, if we get a big stock selloff, that could be the catalyst for some kind of compromise. Yes, a lousy deal im with you on that, but it will be a compromise and the market would rebound and go up. And here is the question, when i was joining you on the program on wednesday, we were reporting that fitch had said look, if youre going over the cliff youre facing another downgrade. If you get a lousy deal that doesnt deal with the longterm issues of spending cuts and entitlement reform we might get downgraded anyway. So the lousy deal may end up being a lousy deal and hes got a fiscal apocalypse anyway. Stuart he just kicks the can. I think a lousy deal would be possible and it would be a lousy deal and kick it down the road. Another bandaid. No way to run a superpower, in fact, a way to turn a superpower into a former superpower. Stuart monica crowley. Were still here. Fiscal apocalypse, but not actual. Anyway the day is not over, stuart, merry christmas. Stuart there you go. And a busy travel weekend in the midwest is pounded with snow. 20 inches in Madison Wisconsin and a big 20car pileup. And in chicago, airport, big hub. 350 Flights Canceled there. In all, a thousand Flights Canceled across the country. Christmas eve, monday, many people tracking or taking a four day weekend and theyre trying to fly. This storm is really going to complicate those travel plans. Its happening now. As we said, no deal on taxing and spending, the markets are responding and were looking at a triple digit loss for the dow, everything is down, the stocks that is. The opening bell next. [ male announcer ] this is steve. He loves risk. Bubut whether hes climbing everest, scuba diving the Great Barrier reef with sharks, or jumping into the marke he goes with peop he trusts, which is why he trades with a company that doesnt nickel and dime him with hidden fees. So he can worry about other things, like what the market is doing and being ready, no matter what happens, which isnt rocket science. Its just common sense, from td ameritrade. But with advair, im breathing better. So now i can be in the scene. Advair is clinically proven to help significantly improve lung function. Unlike most copd medications, advair contains both an antiinflammatory and a longacting bronchodilator wog together to help improve your lung function all day. Advair wont replace fastacting inhalers for sudden symptoms and should not be us more than twice a day. People with copd taking advair may have a higher chance of pneumonia. Advair may increase your risk of osteoporosis and some eye problems. Tell your doctor if you have a heart condition or high Blood Pressure before taking advair. If youre still having difficulty breathing, ask your doctor if including advair could help improve your lung function. Get your first full prcription free and save on refills at advaircopd. Com. Moments from now, a single bell will toll on the New York Stock Exchange, signaling the beginning after moment of silence for the victims last friday. It will be observed in newtown, connecticut as well and also by us. [bell ringing] [moment of silence]. [bell ringing] [moment of silence] [bell ringing] [moment of silence] [bell ringing] [moment of silence] [bell ringing] [moment of silence] [bell ringing] [moment of silence] [bell ringing] the bell that youre hearing right now, will ring 26 times and its the bell in newtown, connecticut memorializing the 26 victims who died exactly one week ago and there was also a moment of silence there at the New York Stock Exchange and the nasdaq, all right. Trading has now begun this friday morning. Stock prices way, way down. Lets check the big board, very, very early going in just a couple of minutes into the session and down 62 points and probably heading a lot lower than that. Plan b, as we called it, is history. There is an increase, a very sharply increased chance of all of us going over that fiscal cliff come january the 1st. That would mean spending cuts and much higher taxes are on the way immediately down the road. Nicole, i can see a sea of red, of red ink on the New York Stock Exchange. Oh, yes. Stuart which are the big losers so far . You have caterpillar, bank of america, Cisco Systems and those are some of the biggest losers on the dow industrials. When were seeing the dow down 3 4 of 1 , thats triple digits on the dow, right . Its 116 points ap tnd the othe thing i should note. Tech heavy nasdaq, seems dramatic. 1. 77 , thats a terrible day on wall street if that holds at that level. Stuart all right, i want to show everybody how bad it is for the dow 30. All 30 of the Dow Jones Industrials stocks are showing red n tactffactactfufact in fact, the board is a sea of red and losing from 2 cents cocacola to a big drop bank of america. Talking about actual dollar terms and percentage terms, its down. Im going to mention a specific stock now, that would be facebook. A big part of facebook, good part its free, right . Thats what makes it cool. Got it. Now, Facebook Says its begun testing a system for users to send messages to people outside their immediate circle of contacts. But youve got a pay a dollar to do that. Facebook stock at this moment down 2. 6 and debuted at 38 last may. Lets check the other markets. Dow is obviously down 120. Big drop there. The price of oil this morning, also on the down side. A buck 79 lower, 88 bucks a share. And we have the price of gas, whoa, here is bad news for you, its started to go back up again. 28 days it was straight down, now its gone back up again. The National Average for a gallon of regular, again, its just a slight gain, but its a gain, 3. 23, diesiesel 3. 92. Weve been talking about how apple has been losing its cool. The past since months, an ugly chart. Look at that, straight down almost. Joining us from los angeles is gilmo morales, gil, full disclosure youve been shorting apple shares means you expect and are betting that the stock goes down. Are you still shorting it. Does it still go lower . Yes, im still short the stock and weve been shorting the stock since just below the 700 level. Off and on on the way down, but were trying to stay with a longer term short position here, looking for the stock to break down through the 500 level which would actually be the neck line of a head and shoulders topping formation ai know thats a technical jargon. If it does break the level, it could youre saying its over for apple, that beautiful rally which made so much money for so many people, its over. Yes, yes, and every stock has its life cycle. Usually the top occurs when things are the roseiest and i think thats the case with apple so investors can learn a lesson from that definitely. Stuart lets reverse this for a second. Youre selling apple and shorting it, its going down. Are you seeing any stocks that you think, big names that we would know that are at bottom and which are youre now starting to buy . Well, we dont buy stocks at the bottom. We actually look for stocks that hold up reasonably well during a Market Correction or stocks that start to set up again into viable positions. So if youre looking at stay, a stock like amazon, the recent breakout, and the futures, i believe it is and that looks pretty good. Youve seen oracle break out and its questionable these are going to hold up or not, given the state of the market and the fiscal cliff overhang i think is significant for the market. Stuart amazon and oracle, do you own them . Dont own them, no. Stuart all right. Now, turn to gold for a second. I know youre active in the gol1 market. Not right now. Stuart thats interesting because i cant work out why gold is not much higher than it is. 1650. Its come down from the 1700 level. Look. Right. Stuart the fed is printing up a storm. The japanese are printing, the europeans are printing and paper money is getting less valuable. Why isnt gold going straight up . I see three reasons right now. The first one being potentially tax selling because gold had a longterm move and we know that longterm Capital Gains are likely to go up next year so it suffers from that. I think secondly its pressaging were going over the fiscal cliff. What happens when you have automatic spending cuts and tax increases and lowering the need for money printing. Finally whats more important. The fed communique last week, they said they were going to peg Monetary Policy to gdp growth and unemployment. So, in recent days weve seen some improvement, such as yesterdays gdp numbers and shallow improvement i would say and some of its manufacturing and some improvement in the economic numbers so the market perceives this as lessening the need for the fed to act and they did say they he were not doing the buying of Mortgage Backed securities on a regular basis, they would do it on an asneeded basis, thats what gold is seeing as well. So its got the sort of triple, you know, triple play going against it right now. Broken down to the 200day moving average, not going to touch it on the shortterm, but im longterm gold, physical gold so the longterm trend is likely intact. Thats interesting, tonight isnt it . You go over the fiscal cliff and maybe thats a plus. And all right, gil morales. Maybe. Stuart thank you very much. Merry christmas take care. Stuart and to you. The n. R. A. Breaks its silence. Thats coming up in the ten oclock hour. It says it will quote, offer meaningful contributions to the gun debate. What exactly should it say or should it say anything at all . Well speak to a pr professional, Public Relations guy, top of the the hour. What should they say . New at ten coming up. Research in motion, where did it open . Where did it open indeed . Thats a good question, nicole . Down 16 is where it happened. And 17 , and i just checked a moment ago. When youre talking about their numbers and talked about loss of subscribers and they also talk about the fact the way theyre going to revamp the service fees that they charge and they really broke it down late yesterday. So, whether its the way theyre going to do the fees or the fact that theyre losing subscribers, you put those together and as we speak, it continues to drop one other quarter. Down 17 1 4 . Look at him go. All right, nicole, thank you very much. Want to switch fast to oil. Were now down 2 a barrel on the price of oil. At 88 just about dead on there. Time is money, 30 seconds, what else weve got for you today. My take on the failure of plan b and the unbalanced and biased coverage in the liberal media. Its a repeat of the election. Praise obama, blame the right. Here it comes, here we go. We will have a very rare, beautiful piece of renaissance art on the set with me, an authentic bot chellie, more than 500 years old. Ill ask how much its going to sell for. The world did not end, the it did not rise and the it was a scam perpetrated by charlatans, more on that on this program as well. Its friday morning, odds are most are down. Software maker adobe buying social media platform, and adobes stock is down. And higher profit and sales growth have uniform companies, cintas, but margins weakened, its down. Red hat took in more money than expected up 2 thats interesting. And the chip maker, Micron Technology reported a loss, its down. And better results at tipco software, its down. And wider loss at fuel cell energy, more money came in up only just and the profit, it was down. At nike sales grew however and that stock is down just a fraction, thats it. Now were down im sorry, 90 was up. And the dow jones average was up 110 now and not the 200 we expected by the way. Christmas has become a commercial holiday, and now hanukkah, is it just turning into eight nights of presents, commerciallized as well . Well ask a jewish mother why. 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Verizon is up just a little. The price of oil, thats a tumble for you. Price of a barrel, now, down just a buck 83. But its at 88 a barrel. On christmas next week, many people celebrate the religious significance, the birth of jesus, many others get together and exchange gifts. For them christmas is what i call a commercial festival, an excuse to buy and its just not christians. For the Jewish Community has hanukkah become eight nights of present giving. And joining us from the nakem have i got it right. Youve got it right. Stuart has hanukkah become sort of a festival. Its not specific to religion and you started saying that. Its no