Youll see them slow down hiring, stop capital xebd churs, capital will go on on strike, it will be a hell of a mess. Leaders of both parties think it would be to their advantage to go off the fiscal cliff. What a 12 straight that is, that we could win more as democrats if we let it go or we can win more as republicans. This whole game isnt about america, its about you who do we make the demss lose and how do we make the republicans lose. People are sick of that and ashamed of it. Well try to rise above all of this today. Our guest hosts will be doing the same. But before we get to all of that, andrew has shall other top headlines. We have some very Important News and serious news. Fighting escalating sharply overnight. Dozens of missiles seen exploding in gaza. Authorities in india have investigating claims a that walmart violated exchange rules. Direct ownership by foreign firms was prohibited. Walmart has denied any wrong doing. And the news comes a day after walmart reported disappointing quarterly sales. There is an original probe in mexico. And finally japan dissolved lower house for a december 16th election. The nikkei rallied more than 2 as investors bet the Main Opposition Party will lynn the election. The partys leader has voied to put pressure to ease monetary currency. Mr. Kernen, welcome back. 25 2not even 24 hours, but is a wallop. It was something. We have to go back years to the last time you called in sick. How much do i want to share . None. The one thing i can tell you, its been 25 years since regurgitating without alcohol i would say. How is that possible . How did you go 25 years . Adults really dont get sick and throw up without alcohol. I did over the summer. When youre a little around kids, though Food Poisoning maybe. Ive done it twice in the last year. Women, you get pregnant and you throw up every day, dont you . This was since then. Women are used to throwing you. We are the more manly sex. For men the other thing that also combined with that, that can happen at the drop of a hat. You know, i was looking at when we said down 5 since the election, because it feels a hell of a lot worse, it was down 400 points leading up. Back in october, we were at 136. 6,. 13. 7. Were done over 1,000 points from those levels. Not from election day. But a lot of these key stocks are at these dicey little cramer and others have been saying you dont want to bottom things out. Is it too late to sell. You feel like youre getting an opportunity. How much farther do we think it will go . What i do have, you wonder do you want to just sit there and watch you saw some of mark grants stuff yesterday about the tanks on the border in israel and you have the fiscal cliff and youve got europe and the other thing that were watching the market and we cant own individual stocks on things, but i have been putting money in the kids College Funds. Because watching the climb where you think, okay, some day it will break and then ill put money in, and when it did finally start to break, i was like okay lets put money in the kids College Funds and feel better about that. Just mutual funds. Remember the mayans. Its december. 200 rockets be fired from so are you calling for a faber style he scared me, too. I dont want to be left with 50 of what i have now. Do you . Not at all. But maybe thats a good reason not to by in. Theres nowhere to hide. All the people selling now and going into treasuries. If ire worried we go over the fiscal cliff and we get our ratings downgraded again ever since the election, i keep trying to just focus right on what were talking about and that is this high end marginal rates on the 250 and above. Obama has at this point said that so much times that, i dont know, hes kind of like drawing a line in the sand there. Oh, yeah. We decided yesterday that was one thing that he is at 250 and 39. 6. Im still not convinced its 39. 6 . I do think 250 is the line. I dont think were 35 and trying to find deductions anymore. The house was 55 stayed republican. So they have the same claim that their constituents elected them to hold the line on this. I saw comments from dave camp that this game that he keeps playing with, ive got the pen, im ready to sign it, its just delaying. Its a nonstarter according to the people that stopped it the last intwo years. Today is the first day that theyll all be meeting at the white house. And today is the first day that we dont know whats going to happen. The issues are so big in terms of entitlements. The fiscal cliff is one thin, but the issues are so the figure c fiscal abyss. 80 billion a year is what were talking about. I listened to an interview with senator patty murray this morning on npr and shes ready to go over the cliff, but she sounded a little less aggressive today when she was saying we realize that it will be a blended mix of cuts to the entitlements along with higher taxes for wealthy people. And the npr anchor was trying to push her to say how far do we have to go. You keep saying an equal blend, is that 50 50. She said the president will set that blend. Wed like to see at least 40 or 50 , but its up to the president. In the summer of 2011, it was 3 to 1. 75 spending cuts, 25 high revenue. But thats where youll really see the questions. All ive heard him say about entitlements is that well put in some kind of structural for eventual reform to slow the increases. Not even to slow spending from where it is. That was wilbur ross point. Keep talking about spending cuts and thats a faulty lex con. Lexicon. Im trying to rise, but everything tells me were sinking below. Alan simpson was pretty down beat. What was his number, 30 . That was Erskine Bowles. A third, a third, a third. A third that we go over, a third that we go over and stay over, and a third that we find an agreement. Both the far extremes of both parties want to go over. Thats what weve been saying. Some other headlines, r event ckitt is trufmping the deal. Finally a little bit of action. The bid is more than 23 . The portfolio includes mega red for heart care and move free for skroi joints. I thought it was a bowel thing. Which i had a little too much of that freedom recently. The Obama Administration meanwhile is giving states another month to decide what role if anything theyll play in carrying out the new health care law. States have been required to declare intentions by today, but theyll have until december 14th. Republican governors have requested more time and the Associated Press reports that 16 states are still mulling decisions. And the wall street journal report it is that the office of the controller of the currency will formally serve jcht p morgan chase with actions regarding money laundering. On the cc expected to allege weakness in the antimony laundering systems. Andrew, im going to take the opposite side of you on the whole delta thing. Its so obvious to take that side to say lets get the article here. What if its been proven that let help set it up. What if its proven that age has very little to do here it is. Delta flies new routes to profits older jets. The idea is hear one of the reasons theyre making as much money as they are is because theyre not buying new planes. The details scared me. About where theyre buying the planes. From a Chinese Airline who doesnt want them anymore because theyre not manufactured anymore. You can still maintain them. You still get the parts for them. You can look statistically at the possibility of a fracture in the fuselage or whatever it is and theres a number that you can look at where the probability is probably zero that anything happens. Theyre not flying unsafe jets. And they dont smell like old jets because they put new airplanes inside of them. Its to no ones benefit to have Airlines Flying spanking brand new jets that keep going out of business. Boeing shareholders are very much i know that, but we need a viable industry that doesnt keep going boom bust. Jet fuel prices go up and there they are on the edge of bankruptcy again and youre consolidation you cant do that. If delta finds a way to start making money, then they can gradually they are maintaining them well. I dont want to say theyre not. Richard macgyver is running the airline. Richard anderson. He knows everything about gadgets and fixing things. Now i saw the Denzel Washington movie, im in a tizzy about airplanes. With your where they couldnt merge because prices might go up for technology. I dont really feel like im paying a lot for all this digital stuff. I dont feel i did tell you about what happened on a delta flight with my family, though. We had an engine blow out in midair and had an emergency landing. And thats not to suggest that i dont feel like every time one of our airlines go up that theres a chance it will crash. You dont let me say this, but when is the last remember every year the media would rush to the big 200 person dead remember . I was just on a delta shuttle on wednesday or tuesday. When was the last major lets hope we never have to hear about another one. And you hear about the air traffic near misses and things like that. And i pray and hope and knock on wood, but 50,000 takeoffs and landings a day. Statistically can we go to london . Not on an old jet. P. Becky would like us to talk about the Global Markets report. Kelly evans is across the pond. We wont fly to you. Well do it by satellite. Good morning. Im cringing as i listen in, but im also cringing at some of the market action. Its pretty much red mind me. Not necessarily on any fresh catalyst. Just a sense that risk is generally kind of off. People on the sidelines as we head into next week, yet another eu summit. No agreement expected over greece. Thats weighing on the euro dollar, down 0. 3 . But what i want to show you is the dollaryen. 81. 14 is the level. Ive been watching it flicker here into the green intermittently. Major moves happening in japan overnight. And now current Prime Minister noda has dissolved the lower house paving the way for fresh elections in to december. We can take a look at whats been happening with markets. The n nikkei adding better than 2 for the last couple of days. As the yen weakens, were seeing this rally come into the nikkei, lifting stocks. Why . Because theres basically a view that when the ldp comes back into power, and hell be the seventh Prime Minister in the last six years, but he will nevertheless his party has been calling on the bank of japan to pursue more aggressive stimulus policies. Yes, even more aggressive than its already been basically to join the unlimited qe camp along with the u. S. And in that sense raisin nation towards maybe 3 . Thats the new target theyre floating. In any case, even at a time when weve seen more hedge funds betting against japanese corporations, here comes policy trying to sail to the rescue. A key litmus test broadly speaking as we look at other western nations wondering whether theyll go the way of japan in the future as to whether aggressive moves three decades into your period after a financial crisis can in fact turn the economy around. So some signs of optimism today. Again, it comes against a broadly weaker picture overnight. The shanghai composite, 2414 is the level. If it gets closer to that 2,000 level takes did overnight, you can expect even more jitters return about Global Growth process pe prospects. Back over to you. Thank you, kelly. Coming up, one of the best selling magazine issues of the year. Also a sad commentary on our society. Peoples sexiest man alive. As if People Magazine can pick one person. Its pure pr. Who know what is changes hands between agents and their clients and the magazine. But this week the honor was given to someone named channing tatum. An actor. Thats restricting the term actor in this case. But the magazine highlighted fifty shades of grey. One of these men, one of these men, although the president doesnt he look like he got rid of the gray . I like the gray. Back to no gray. Any way, one of these men will join us next. We told you one of the sexiest 50 shades of gray will be joining us. The answer is our own john harwood. What page are you on, john . Page 925. Youre in with a lot of i dont think brad pitt has much gray. He has some in his beard when it grows in. John, did they ask you your permission some when did you know this was going to happen . I got a message about a week ago from an editor there asking me for a picture. So that was it. They didnt ask permission, they were going to do it either way. Well, i guess if i didnt give them a picture, they wouldnt have done it. Can i ask you a personal question not about you . Yes, you can. The president s gray was gone at the News Conference, was it not . Was that me or did you notice that the president seems like hes got the color back in his hair . I didnt notice that. Maybe i wasnt looking closely enough. He looked great. I have to check it out. Do you think hes using one of those products . I dont know. Possibly. I had the. R people here when they were kidding me about you getting this, they said see if youd let yours grow out naturally, maybe you could have been in this, too. Me theyre talking about. And i still will i swear, like david you color your hair, right . No, i do not. David gregory, hes in his 30s and its white. It just is the way when did you start going gray . It was probably in your 30s, wasnt it . I think i started getting gray hair like in my late 30s, yeah. Sorry, im 56, i swear ive sworn on my life. May i be struck done right now. Stop tempting fate. So youre one of those guys like reagan . Reagan was 75. Im im not kidding. Reagan swore he never colored his hair. Maybe he didnt. I dont know. Its sad to try to prove a negative. I guess i go, i get it cut here, its all done here. And i guess they think im sneaking off to a salon and putting stuff in. But i dont. Anyway, enough. John, we have bigger issues. We do. We have the fiscal cliff which is not as big an issue as the fiscal abyss. It seems like here we are mired down in this 39. 6 hell without really focusing as much as we need to on all the other myriad things like education and entitlement reform and Everything Else that we need as we just, i dont know, its like you cant use that both sides are just trying to, i dont know, just throwing food at each other. And its stupid. And i want them to rise above and im not seeing any evidence of that. Youre not taking any heart in the conciliatory stuff that weve heard from john boehner and yeah, from boehner i am. The president has now painted himself painted those guys in to how many times has he drawn a line in the sand about that high right on 250. Hes made a point and he cant possibly go back on that now, can he . I think he can. Look, i think hes drawing a line on getting money from those people, there people making 250 and above. But he hasnt drawn a line on how he gets that money. Hes said at his News Conference im skeptical that you can do enough in loopholes and exclusions to get the money that we need for a deal from that group. But he also said im open to new ideas. So if there is in fact an effort to close some loopholes that gets you some of the way there, you can certainly see the president , i could anyway, compromising somewhere between 35 and 39. 6 on a slightly higher rate. If shall be caomebody came up w source of revenue which didnt change the distribution of the tax burden, figure out a way to do it without a top rate. I kind of expect whats going to happen is loophole closing and you end up at like 37 ors somethi or Something Like that. I think there is a spirit of both sides wanting to reach a deal. The president is expressing that he has a little higher ground. I have heard people talk about the v. A. T. Tax, a value added tax. I have heard people bring that idea up. I dont understand why it would even be something that democrats would consider when it really is something that is a regressive tax. A much more heavily burdened tax. There are ways in which you can make any tax progressive depending on what sort of rate is and that sort of thing. Certainly some in the Obama Administration and many republicans for a long time have been interested in a v. A. T. As a way of taxing consumption rather than savings and investment and earnings. As a way as part of the rebalancing of the economy that the president himself supports of trying to invest save, invest, develop our productive capacity. I dont think the problem with the administration has been thorough going tax reform including Something Like a v. A. T. , including Something Like a carbon tax for example which would achieve some of his energy goal simply not possible. You cant do it in a short time frame. So i think there are practical questions to that. But i dont think theres a principal objection to it if you somehow combined it with the existing system that in a way that reserved the distribution of the tax burden. He doesnt want to go backward on progressivity. And i think if you can meet those tests, thats part of help saying hes open to it. Theyve always been skeptical that you can did all these things. Spi entitlement reform, deficit reduction and tax reform in anything close to the same time frame. All right, john, thank you. One more thing becky, im afraid to tell you this. Fi phil lebeau, he knows everything about the last major i saw that. Last Major Airline crash in the u. S. With fatalities was the one which was right after 9 11. Horrific. In new york and right after 9 11. November of 2001. There was a 60 minutes piece on that neighborhood because that neighborhood just got swamped again. Belle harbor i believe is the name. It just got swamped again with the huge flooding that came in. 11 years, amazing. Lets hope we go more than that even. Coming up, living on the cliff. S ps warning for what happens if politicians take one wrong step. That and a lot more after the break. Before you hit the road, heres your travelers check. The National Average price for a gallon of regular unleaded gas is now at 3. 44 after peaking at 3. 87 in mid september. Thats according to aaa. So which states have seen the largest decline in gas prices since then . Find out next. [ male announcer ] you are a business pro. Governor of getting it done. You know how to dance. With a deadline. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. T