Up. Its friday, and alix steel is my cohost today. Looking forward to a threeday weekend . Who doesnt love a threeday weekend. Also exciting for investors because we are near record highs. Picture, to the big julie hyman. If you take a look at the big stocks we are watching today, Occidental Petroleum is going to be breaking up and its california unit is going to be a separate, publicly traded company. It will be the largest owner of natural gas and Oil Properties in the state of california. Those shares are up. Saying itsp is baking and snacking unit performed well internationally and domestically and earnings shares Beat Estimates by about 4. 8 . Wearhouse is going down today. Joseph a bank has agreed to by eddie bauer in part to try to thwart the bid from mens wearhouse. Investors asking, where does mens wearhouse go from here . As they asked the question, they sell the shares. This is unbelievable. The banking business is going to pot. The federal government is going to allow u. S. Banks to get a cut of the legal pot business in colorado. But it will have conditions attached. Peter cook has more on the new guidelines just released peter, i have to say, this is pretty stunning. I mean, it is amazing when you think how far this industry has come in such a short amount of time. The banking issue was holding it back. How might it change now . This is a big step forward for the legal side of the pot business and a significant development. As you know all too well, retailers in colorado last month started selling Recreational Marijuana to users for the first time in years, decades. Even though it has been decriminalized, the sale and use is still a violation of federal law. Banking transactions would potentially violate federal banking laws, so all retailers were having to do their transactions in cash only, no credit cards. The new law addresses that thectly and allows banks in 18 states where medical marijuana states medical marijuana is allowed to do businessesth those directly. They do need to do thorough due diligence. Since marijuana is still illegal at the federal level, all transactions require suspicious activity reports that they need to send in each time. And the banks must red flag particularly suspicious customers that the banks think may be going above and beyond what is legal at the state level. It is a big step forward and another sign of the legitimization of marijuana. It is incredible. I remember first reporting on this in a documentary i did in 2006 and i dont think even then i had any idea it would go this far this quickly. Let me just ask you, is there a political component to this . Forwardhink as we move to midterm elections there is a reason why some states might want to have this on the ballot and perhaps rally their base . Absolutely. Coloradoat happening and washington. There are a lot of states washing this very, very carefully to see how it plays how thee and now federal government handles it. The fact that at the federal level it is still a crime and yet the Obama Administration is allowing it to move forward, that says a lot about where it may be heading in other states and how the federal government may be forced to question the federal laws. Big banks are looking for new customers. Some banks will jump right in in colorado and other states. Others may hold back a little bit, fearful of the tape that might be attached. We are going to talk about that a little bit more. Stay with us. Also joining us is the executive director of the joint policy alliance. Peter brings up an important point. It is one thing for eric holder to advise treasury to change the rules, but it is another thing for wells fargo and bank of america to say yes, we are going to allow this drug money to have an account with us. Are they really going to buy into this . Do you think they trust what the government is saying . Its business and they can make money. Banks can make money by dealing with the legal medical marijuana industry. I think some will dip their toe in the water and begin to do it. When they see that federal prosecutors dont respond, more will go win. This is one of the issues. I met a guy who got into the business, thought he was fine, talked about it a little bit on the local tv station in the next thing he knew the feds were busting him down the next morning. When i met him he was wearing an ankle bracelet. He was basically stuck in his home. And on his way to jail. This was in colorado before the legalization. Thats the point. The world has changed so much. Look at the Obama Administration which was sort of an example are on drug bad faith policy in the first term. He sort of did a 180. But how can you guarantee that will stay . More years tohree go. Other states are going to legalize the stuff. Questionsre also about what congress is going to do and where that leads congress. The tone we heard from the president in the new yorker institute, i think ethan is right. The genie is out of the bottle. It is hard to imagine this is going to roll back or the other direction unless something goes horribly wrong in colorado and washington. Critics are watching carefully for exactly that to happen, but the genie is out there. It is not just colorado and washington. 20 states have legalized it for medical. Florida and new york may boast do the same thing both do the same thing this year. Florida has an initiative in new york has a good chance. Youre talking about the majority of the population living in states where this is legal. What you estimate this business to be . The beginning stages of a transition from an entirely illegal industry to an entirely legal industry. The total value in the United States . 20 billion dollars . 30 billion . Nobody knows for sure. Strugglingmorris is with tobacco sales. Will they want to diversify . Its a good question. Tobacco and alcohol are on the sidelines right now. But they see things emerging and i think theyre hoping maybe a day will come when they can grab their share. I have met so many dispensary in colorado that are hoping for exactly that. They are hoping this goes the way of prohibition. All these small distilleries got bought by bigger conglomerates. For am personally looking the microbrewery model. To ask if ethan thinks the guidance goes far enough. Head of the Colorado Banking Association was pushing for this. Does this go far enough . They said here is federal law. Here is what is going on. Now, do the best you can. Make this work in colorado and washington given federal law. I think the Obama Administration pushed the envelope to make this work. And just remind people how difficult it is for some of these dispensary owners. If you are in a cash only system, that means you have to pay everyone on your staff in cash. Your customers can only pay cash. And then they have the added bonus of having to deal with all this cash. Can actually smell. If the banks smell marijuana on a they go to very elaborate measures. You have to pay for security movermed guards to your money. The quid pro quo is they have to enable these banks and themtries to serve legally. That is what is going on right now. It is a major change. The industry is moving quickly. A gray conversation. Great conversation. Thanks you guys. We appreciate you helping us break that down. Coming up, ladies and gentle men, we have a jobs problem. When people are unemployed for that long, they surely must get discouraged. They begin to lose their networks that enable them to find jobs. They decide to drop out of the labor force permanently. From dropouts to big cats. We look at where we stand and , and we are headed next where janet yellen can help. Plus, i am so excited, house of cards season two is here. And washington is glad. We will explain. Bitcoin in breakdown mode. In just the last week, the currency has had three major attacks. What they call a technical glitch. Yesterday, bitcoin said a denial of service attacks forced them to suspend withdrawals. Now they have been hacked. Silk road 2. 0. Third variation. Alex, you remember the feds came in and busted the whole thing. I dont believe it has been hacked. Of2. 3 Million Dollars worth bitcoins are missing from the site and the currency is getting pummeled as a result. Thehis the beginning of and . A professor from Boston University joins us. The chief Security Officer of black chain joins us and our resident expert, matt miller. Matt, you personally have knowledge of how the attack feels. Remember this moment . Adam, here you go. Trish. Private key on the inside that you can access and load into your wallet, if you have a block chain wallet or going based wallet. This is what i put on my phone so that when i want to go buy or sell or whatever, i put this on the computer, the computer reads it and knows to debit my account. Exactly. Backup for a second. Some viewers dont know this. People actually took that money from his bitcoin that you gave him. They stole it. To be fair, we expose the most it is like giving someone your credit card number or the back of your credit card number. It is a big nono, and only a bitcoin total newbie with do that. We only lost about 0. 02 bitcoin, but it was a good lesson. This is the issue that is part of all this. It seems like it going, like anything else up there, can get hacked. Well, if you go to the middle of times square and open your wallet with a few hundred bills at midnight with no cops around, somebody might take your cash. This does speak to the vulnerability of Digital Currency when you have one attack and it all goes to pot, excuse the expression. That is correct. What we have seen in massive , it is really questioning the viability of these e currencies. The confidence consumers can have that they are not going to be hacked and lose everything. Untraceable currencies. What that means is if you lose it, thats it. Thats wrong. They are traceable currencies. Even more traceable than u. S. Dollars. You can see exactly where they are going from an coming coming from and going. It is easy as long as youre willing to download nine gig of block chain. Were service attacks against atm networks about a year back and nobody said the dollar was going to crash as a result. Withdrawals are back online. They are continuing. The glitches were fixed. The network was never affected. The block chain trust was never violated. No funds were stolen from the bitcoin network. We have seen a lot of hysterical headlines and are hearing a lot of hysterical fear mongering, but the block chain system was not affected. The network is now more resilient than i was before. My concern. Is everybody says there is a limited amount of it going out there. Only so much can be mind. It is an infinite amounts. As opposed to fed policy a printing machine you can run whenever you need it. Exactly. But who is to say that some computer expert couldnt put more bitcoin out there and hack all of that . And therefore depress the value. Because thats not how the protocol works. Is based on trust through computation rather than access control. That means that computation secures the network and you can allow everyone to join and innovate at the edges of the network. You cannot forge or print bitcoin on your own. How it works. I want to get your take on what you think it would actually take for bitcoins to become more mainstream and more secure. Manyre, i think there are things that need to happen. First, confidence has to come back into the market about virtual currencies, in particular bitcoin. Highoin has to stop having volatility. We can see it move anywhere between 20 30 in a given day. This weekend alone, we saw bitcoin dropped from 102 to 600. That is kind of a flash crashed too, but we did not question the volatility of the dollar at that point. The dollars dont move like that. The liquidity of the currency is increasing over time and as a result, volatility goes down. We dont think when the nasdaq has a flash crash that is the end of the dollar. We will leave it there. That is misinformation. It is misinformation because it only took 6000 bitcoins to move that market by 80 . Because it is a small liquidity pool, but other markets have had flash crashes before and we dont have the hysterical headlines coming out of it. Of course, bitcoin has a small liquidity pool. Can i just say, if anyone is selling bitcoin for 102 apiece, please tweet me . So much. We are going to be right back with more street smart. Welcome back. Liberty globals john malone is getting used to losing. Just yesterday, comcast trumped deal to buy time warner. He has made 50 Million Dollars consolidating europes paytv business. Maybe this recent rejection will only fuel his efforts further. Why does he keep losing . Is he losing his touch . Has he lost his touch . This time he certainly has. This is something he did not expect at all. He was completely surprised by deal. Omcast my sources tell me 10 days ago they got a call that Brian Roberts wanted to do this. And where was john . Quietly plotting. Lets put in our own board, force our hand force their hand, force them to the bargaining table. All that time, comcast had been negotiating with time warner. They had a mentormentee relationship. Then i read there was a lot of ill will between the two. What is the real deal . They definitely typified the cable industry. At times they are in league. At times they are at odds. The cable industry is more collegial than others. They took advantage of that. They would help each other sometimes but a lot of times they fought as well. They came out publicly saying they were looking for this. Was malone to slow . Too slow in getting too low. How much debt are you going to take on by taking Time Warner Cable . What does he do now . Does he try to get the company or try to go overseas . Overseas is a big part of his not asuropean paytv is well built as it is in the u. S. There is still room for growth there. In the u. S. , there is still cablevision, charter. Is cablevision going to lose out . They are. They are not a prized property. And they are saturated in their market. They face more competition from fayez. But there are still deals to be had. Fascinating. Thank you so much. Coming up, we are going to be talking about jobs. Recent data spells trouble and wall street keeps chopping, but investors phased . Jobs have been in focus all week, whether it was digesting last fridays dismal report or Janet Yellens comments or aig announcing it was cutting its workforce. There is lots to sift through. We have our panel, chief economist at artie q economics, economics editor mike mckee and Senior Market analyst julie hyman. John, i am going to start with you. A lot of people say hey, this is just weather. The last couple of months we have had lousy weather and you really need to look forward to the future. We have had lousy weather. It was not a Beautiful Day yesterday. It is still pretty messy out there. And we are not going to get a clean reading in february either. One of the most ronson numbers constantons numbers after revisions has been that the economy created close to 200,000 jobs a month. It was picking up steam at the end of last year. There was no reason to expect the break and hiring was going to be sustained and nothing supported it. Payrolls were out on their own in this one. Ven the household number you thing next month is going to be bad as well . If it stays bad next month, the impact that has on depressing the growth sort of disappears. I would not be surprised if we saw strong let me ask you one question. He brings up something pretty important, the impact on the growth. If you are not hiring a lot right now because of the weather or for whatever reason, doesnt that have an impact, a domino effect as you go forward . You might say no, people need to hire. They are going to do so. But what is the effect in the interim . It depresses job growth for short time. We should point out that the survey week for february was this week. So yes, there is a good chance were going to have weather problems once again, but people know that. It may be not so much that people werent hired, but they werent at work. They werent on the payrolls because they couldnt get to work. Companies may have put a hiring because it is too hard to get people in for interviews once the weather is lousy. If we see people owe back to store go back to stores once the snow is shoveled, that will be the real indicator. Aig out yesterday saying they are slashing jobs. Who else . Erck. Morgan, mark 240actual jobs figure is 5000, which is lower than i might have expected. The jobs report we get every month is the net edition. Looking at jobs added on top of that. The kind of brings and to call how much the unemployment friday release really matters. Employment friday will remain not buying that for a second. Not buying that . I would take his place, it what would take its place, is my question . The Federal Reserve tide moves back in the early 1990s. The september taper or failure to taper was predicated on a couple of wobbly jobs numbers. Of the market cares. The market cares because the fed cares. Rates are at zero. The jobs numbers are the number one factor. There is a lot of information in this report besides just the headline number. It tells you how many people are in the labor force looking for work. It tells you the number of hours worked, whether or not companies are giving back. It gives you a snapshot of what peoples earnings are, whether theyre going to have money to spend. So there are a lot of reasons to care. Every friday, 830 1 a. M. , nobody is trading on the economic outlook. That is the roulette wheel. What level does it have to get to where you feel more secure about the level of job growth . And maybe a gets to a level where the market doesnt shrug it off, but where it doesnt become quite so pivotal because its stable . Thats right, but theres also the Unemployment Rate in there and the Unemployment Rate has been falling faster than the fed expected. The fed has loosely tied it state for raising Interest Rates for the first time on the level of the Unemployment Rate. That is now at six point six percent, only. 1 above the feds threshold. Coincidently, the bank of england had the same thing this week. That number was also 1 10 of a point above the bank of englands seven percent threshold. It is a theme that unemployment is falling. When you look at job cuts you brought in from corporate, you also have to look at wages. Wh