In our power to assure a robust recovery in the context of price stability. After hearing all of that, the dow actually adding more than 50 points yesterday to close at 15,876. The s p 500 up another eight points to finish at 1790. So its right within striking distance of 1800. And if you look at the futures this morning, youre going to see right now there are some additional green arrows. Dow futures looking to open by about 26 points, s p futures up by about 3. 5. The white house says it could extend the obama care fix beyond 2014. President obama announcing the plan to let Insurance Companies extend those policies that would have been canceled. He pointed blame at himself for the troubled rollout. I think its legitimate for them to expect me to have to win back some credibility on this Health Care Law in particular. And on a whole range of these issues in general. Thats on me. We fumbled the rollout on this Health Care Law. This fix, though, is on the Insurance Companies. Its hard to say in reality how any of this is going to work out. It took months. Months for the Insurance Companies to work within the law as laid out by obama care. Were going to talk about in this morning. In just a few minutes, weve got john harwood. Hell join us to go through the politics on this and some of the realities on how it can possibly work. In the meantime, lets send it over to andrew. We have a lot of Corporate News this morning. Kimberly clark announcing its board of directors authorizing its Management Team to pursue a potential tax free spinoff of the Health Care Business which has 1. 6 billion in sales. Take a look at shares of the Consumer Products giant closing at an alltime high yesterday. Were going to talk to the companys ceo tom falk at 7 30 a. M. Eastern time this morning. The play station 4 officially now on sale, a little over six hours ago that gamers were able to get their hands on sonys new game console. The price tag, 399. Were going to have a product review of what it is and what it means. Its 6 30 a. M. Eastern time. And were getting a peek into the portfolios of some of the worlds biggest investors. Warren buffett, snapping up stake in exxon. At yesterdays Closing Price of 93. 22, that stake is valued at 3. 74 billion. And a couple other notable 13fs that came out, carl icahns stake in apple now valued at 3. 9 million shares. He took a large position in apple. Before i send it over to you, john, the other one that struck me was the fedex stake. Weve talked to dan loeb at that conference, the conferences just two days ago about fedex and we found out yesterday that soros piled into fedex and we found out that john paulson piled into fedex. Yeah. And warrens move is interesting. You know, hes got a lot of i dont know if it was warren or right. Berkshires move. Because but, you know, im sure warren knows whats going on when almost 4 billion. But its one of those its a very liquid stock and its a lot of money, but not a lot for a 400 billion company or whatever exxon is at this point. But its sort of so solid and so blue chip and, you know, theyre going to keep finding oil and gas and were going to keep buying it from them and running things. And its just like a buffett you know, you dont have to be too you dont have to think about it too much. How many ice scars can be find . He tries and goes all over the globe. Reminds me of ibm. But i dont know, it seems like its maybe a better move than ibm, more of a nobrainer almost. I like what yellen said, too. Just one comment about that. She said we will continue to ensure a robust recovery with our actions. Its like the one youve been able to orchestrate for the past three or four years. Now i know that arguing counterfactual. The counterfactual is there, but just the uberous that, hey, we will continue to make sure we have a robust economy. Well, nothing youve done so far has given us even over 2 . So im glad you think you can. The other thing, all the papers have that she said she will continue the possibility of tapering near term or whatever as long as the economy recovers. Well, thats the same datadependent statement theyve had all along. Fuller said when he was here it could be the accumulate ewe lagz of th accumulation of this tepid growth. Remember he said that. I was trying to figure out how the fed was going to talk their way out of this corner. That was one of the things that he provided. Yeah. But hes the one who said it and i hadnt thought about that until that point. How do you talk yourself out of this corner . Remember the former quarterback money manager that had three different fund managers. One was up 40, one was up 30 and another was up 30. He said he was up 100 . Did you think that the hearing was about yellen or was it about it was like the hearing was really actually for our benefit, as if it was a you like that i said gellen with yellen and someone said i copied someone from a month ago who came up with it earlier. Who said gellen with yellen, when the commercials were on two or three years ago. Now we really are gelling with yellen, right . We are. Thank you. No, i looked because the new ones are might be are a little different, too. Im looking. Looking. You know what we have . We have a shirt and a tie. Thats all we can do. You wear your jacket once in a while. But really, all we have short of facial hair or earrings or something, this is all weve got. You could do a watch, i guess. You could do bow ties. If you spill something, you cant cover it up. You know, my sweaters. It hasnt gotten gold enough, but im breaking out switers. What about suspenders . I could try suspenders. Because you dont wear a belt. I guess harwood is going to try and you know, i know the journal is cynical, admit that. But obama cares nonfix. You still cant keep your plan, but democrats get political cover for 2014. I think everything that washington has done to this point has been politics on both sides on this. Nobody is trying to actually fix the problem. This was political, too. They tried to step ahead of the republicans. The democrats that are panicked are still want to do more to pretend that they really care about their constituents. Well, this is like toss it back out and its the Insurance Companys fault, yet theres nothing that gets done. Rs, theyve been working on re for months and months and months. To set them up and now its like anyway, lets get to our chief washington is he our chief washington . Yes, he is. If not, he should be. There he is. He gets up for you could wear a bow tie. He gets up for our show, washes his hair, and hes not a blow dryer guy. Later in the day, it will look totally different than it looks right now, right . Its still wet, johnny boy. A little bit. Lets talk about this. I want to hear johns take. I do want to hear johns take. You wish it was going better, i know, but you will tell us the truth about how this is not this is confusing, isnt it . Is this going to quiet anything down, john . Well, thats the goal. It is as you were quoting the journal i think a moment ago, it is more or less a nonfake fix because its not going to change all that much. What the president did was something to try to deflect some political heat from himself and from democrats by saying were giving permission for state Insurance Commissioners and Insurance Companies to do something if they want to do it, knowing that they dont want to do it. So it is not likely to change very much. Let me try to break it down just for one second. But i do want to disagree with something becky said a minute ago. Everything is all politics. Thats not really the case. The reason and thats the reason why this is a nonfix fix. Is because the administration believes that they have a strong substantive answer to the problems of the individual market and by fixing it, really fixing it, you would undermine those changes. Thats a substantive position theyre taking. But, john, i think what the average american hears and what i hear from every sturchl speech from every one of these guys that has gotten up and spoken in the last year and a half, i have not heard anything other than this partisan rhetoric coming out trying to blame the other side and there have been millions of americans left in the lurch on this and i have not heard real fixes from any of these politicians. Ive heard them try to grand stand. The Obama Administration yesterday got in a fight with the republican whip who got together to talked about their planned fix. I think what obama did yesterday was ridiculous, to not reach out to Insurance Companies and not reach out to republicans to try and come up with some legitimate fixes. And then to get out and say, look, heres a fix were offering. Its a nonfix. You said it yourself. And if youre wasting the time of everybody to listen to these speeches no, no, no. Theyre not saying what youre saying that we cant do this because it undermines something we think is an actual good fix. Youre right about that. But look, they passed a law. That is not political rhetoric. They passed a very large law that im talking about the fixes theyre offering up right now. Thats not a real fix. And this is political cover. John, youre saying they they as in democrats and there are people, even if the plans are better, i knsee what your point is, eventually people that thought they wanted to keep their old plans are going to like these new ones for the same price. But people chafe when the government says ive got all the answers. Youre going to do it my way. Sure. Yes. And even if it is going to be better, its like, thats the whole thing about, you know, ive got a hundred really smart people here in washington and youre its like a nanny state type of thing, where this is the plan youre going to have whether you like it or not. Big country, a lot of different opiniones and making change is hard. That is what is so horrible about it. Sure. John, the other issue is, look, if you allow to your point, if you allow these people to keep their plans, the ones who like their plans before tendeded to be the healthier people. Because thats who qualified for a lot of these things. They didnt have preexisting conditions. If those people get to keep their plans, as the president said he would allow them to do yesterday, it means those enrolling in the in the new obama care plans are going to be the ones who have a lot of medical issues that come along with it, are not going to be the patients who are along for the ride type of thing and thats going to make the whole plan that much more or less feasible. Absolutely. But thats why they dont really want to fix this problem and why so everything they said yesterday was not to be believed . Thats what im talking about with politics. When people are getting up and talking no, no, i dont think thats fair. Look, he talked for an hour. Most of what he did was defend the law that he has passed. And wleefs it. And democrats believe it. And it is very difficult to implement a major change like this. Forget the website. Thats another set of competence issue. Im with you on that. Whats more important is fixing the underlying law. But come january 1st, the website and the rush and the crush to put these things on, that created the immediate problem. What hes done yesterday is not a real solution. The Insurance Companies cant undo what they set up that quickly. Right. But what you just said, the important thing to fix the law, that itself is a political statement that the administration disagrees with. They dont think the law is broken. No, thats not true. There are a lot of democrats, including squeak emanuel who will say yes, there are a lot kinds of things that need fixed. Yeah, but there are very few people who think theres nothing in this law that needs to be change. Right. Thats not my point. My point is that the turbulence surrounding the implementation of this law is about the basics. Its not about details and small things that need to be tweaked. On the point that were discussing right now, the dislocation of those people, those younger, healthy, tend to be younger, healthier people who are either going to pay more for the same plan or its conceivable they could pay more for a plan that isnt as good. Okay. That is what the from a democratic point of view, from the point of view of the people who did this law, that is pain that has to be experienced in order to get to the higher benefit for more people of the law. Thats just the way it is. Some are winners and there are losers. Thats actuarial math. Thats right. And they think the number of winners justifies the number of losers. If you think that nobody can lose and need to fix the fact that some people are losing thats not the argument im making, though. Thats not the argument im making. If you go along with obama care, then look, you are agreeing that the people who are healthy are going to have to pay more to take care of the people who are less healthy. Right. I think at this point were past that. The obama care has been rolled out to that point. But there are all kinds of massive dislocations in the meantime. By not being willing to open it up, you dont address these issues. You have millions of americans are going to be without a Health Care Policy and those are the people who are afraid they dont get sick. No, no, theyre not going to be without a Health Care Policy. If you got candlesed and the Washington State insurance guy says that theyre not going to go ahead and allow this, theyre going against what obama said yesterday, there are no clear fixes to this stuff but theres nobody who if they cant get through the website, which has been very difficult for heem to get through and tried to figure out. You cant figure out if your doctors are even in any of these plans. Its kind of a crap shoot if youre going for these things. Its a fix getting kramg cracra. There will be people left in the lurch, no matter what. The if that you stated, like if there are people who are unable to buy health care, theyre fought going to theres going to be a huge change, repeal, whatever, if they cant buy it. But i dont believe that thats going to be the case. The people who are getting cancellation policies are getting told that the model that youve been buying is no longer being offered. Heres the new model youre going to buy. Go to the website to see if you get subsidies. The problem right now is people cant get that information. If you cant buy it, Something Big is going to change, very big. Yeah, yesterday, one thing the president is always able to fall back on as so many liberals can always fall back on good intentions and it was you know, for a hundred years, we havent covered these people. I saw a quote from the guy from m. I. T. Who said if you werent genetically advantaged, you havent had health care, which is a weird way of phrasing it. If youre born into a neighborhood in a moneyed place, you have it. If youre not no, no, thats not what he meant. I meant healthy. What did he means of genetic lottery . Hes talking about people that tend to be healthier. Because i thought he meant if you were healthy. I thought it was feudalism in no, the reason he made that argument is because oh, so that people that are sick cant get thats right. On the individual market, its been difficult for people to buy coverage. Well, cancer, potentially. Joe . Yes . Can i get back to just a little no, but what i was going to say real quick is so everybody wants to cover you cant argue with the president that you want everyone to have access to health care. But as weve always said, a lot of good intentions, you know what they pave the path to hell to when its gone done right. And you feel virtuous and noble that youre doing it. Its almost like you dont even connect the dots to where youre taking the entire system when you do it the wrong way. Tease what scares me. Because he kept coming back to that, like hes doing this noble thing that had to be done. Finally, we did it and torpedos be if its just a cluster bomb. Can i say cluster bomb . Did i scare you . If it continues to be a cl t cluster bomb into january, the torpedos are going to hit and something is going to change. But i just want to in case our viewers are confused about this im sure we all are. Fix nonfix, i want to walk through it for a second. The way it has been work sg you can have these noncompliant policies up through the end of 2013. However, most states have been allowing Insurance Companies, if they want to keep offering them and if customers want to keep doing them to extend them into 2014 as late as next december. Some companies have said no, you cant do that. But the Insurance Companies, also, are going to have to say that they are going to want higher rates for those existing plans. Exactly. I just took care of my Health Care Insurance and costs have gone up an average of 5 or 6 . Theyre going to have to keep up with those regulations. That has taken months in the past. The question is will the state regulators say okay and fix these things immediately and step through its a lot of bureaucratic red tape to cut through quickly. No question. But what the the effect of what oh bam in did yesterday was to say if states want to go back december of 2014 they can go to the end of september 15 in the states that let that happen. But for the reason that becky just mentioned, companies dont want to it because its complicated and difficult. And most state Insurance Commissioners are not going to want to do that because they everybody wants to get to the new system. So that is why it is possible that the same kind of heat that is being put on democrats and the president will be put on state Insurance Companies and Insurance Commissioners to make them do it, but i wouldnt expect it. This isnt going to calm the anger. I dont know. I think its going to be tough to put the jeanie back in the bottle for all this, toothpaste back in the tube. I came up with like ten of those. Theres some really good ones. Anyway youre gellen. Gellen with yellen, dude. We are. I know. All right. Were going global now. Thank you, john. See you later. Well talk to you soon. Right now, it is time for the Global Markets report. Ross westgate is standing by in london. Ross, you must be loving this conversation watchin