A lot of Economic Data out this morning, jobless claims coming in better than expected. Core ppi in line with consensus. Retail sales light. As for the picture in europe, take a look there. Really following the cues of the u. S. Markets this morning. Our road map today starts with the fed announcing a new round of stimulus as chairman ber bernanke warps the fiscal cliff is hurting growth. House Speaker John Boehner expected to talk on the cliff talks 11 a. M. Eastern time. Told you this week, of course, they were talking actively, now, Sprint Nextel offering to purchase the other half of clearwire it doesnt own. Surges of best buy surging on reports that the founder is on the verge of making a formal takeover bid. And google maps has found its way back into apples operating system. Of course, we have to start off with the markets. Dows fiveday winning streak has been snapped, despite the fed announcing a new round of stimulus. Chairman ber bernanke say worries about the fiscal cliff are resulting in softer Business Environment and waning growth. Members of Congress Told not to make plans for the christmas holidays, citing the urgency of striking a deal to avoid the fiscal cliff. The speaker set to given a update out state of negotiations with the white house in two hours. We will bring brink that to you live t did the mark its job to deal of what happened with Ben Bernankes comments and now the target in terms of tying Interest Rates to unemployment, which is a very new and Big Development for the fed. Cnbc is talking over and over again, 2 million jobs to be lost, not if but when we go over the cliff. Ben bernanke is listening to what this network is saying, recognizing there is going to be a dram mat Hillsborough County job loss if we go over the cliff that is force austerity, that is firing people. Look at spain when they got serious. Italy. It meant a lot of firings. He says i see what we are going to do follow these countries that have fiscal responsibility a lot of people are going to be fired. Dont worry, im going to do my best. What what are you going to do to keep people employed . Keeping the heat on congress, came up a number of times, of Course Energy the press conference that followed the fed announcement but unclear what impact it will have. And as far as ben bernanke can do only so much he can do we all know the markets addition to the additional stimulus and the more increased transparency in terms of what the fed is going to target in the future, that causes the stocks to go up for maybe an hours worth of time and then resume trading as if nothing happened. In the years i have been following the fed there is always a strange dichotomy, seems like the market initially gets everything wrong. But what i have always felt, in the end, we take solace, if the fed says things are Getting Better we get nervous. Say things are says things respect good. When you decide to target unemployment, what he is saying, listen, things are gonna get bad, initial reaction, oh, good, going to support stock values, fall back on the idea that stock val ruse supported by profits, stock values supported by how much competition bonds have, make that easier, but i came back and i said, wow, i guess he is really worried. He sees the mentioned directly the Small Business sentiment, mentioned directly consumer confidence. I says, geez, maybe im too complacent. Maybe i got to be more worried. Keeps in place, not that we had any doubt that it would be in place but seems to endlessly keep in place this dynamic in the mark thats we have seen over this last year or two i would argue is one of the key oneser the ability for corporations to borrow at extraordinarily low rates, some way, return the resulting increase in Free Cash Flow to Share Holders in the form of buy backs and special dividends. But not to hire. Not to spend the money. And sandy cutler on mad money last night, this is the guy who is now the head of eaton cooper, they call it eaton, saying construction is better, where im seeing some, some positives because the fed. We saw a number today that dazzled me, Southern California best home sales in six years. Have we ever gone into a recession when the home when the housing industry, excuse me, is on an upswing . It is a huge part of the u. S. Economy. Obviously, if you just look at the breakout, only 10 . But the spinoffs of housing, automotive, very good, both in bull market mode. I attribute a lot of that to what the fed has done. Gave lot of credit to the fed, perhaps, but also feel the debate shifted yesterday in washington. I began to hear way too many people say, you know what the president is curiously unengaged when it comes to cuts. I have always felt the president had the upper hand in this debate. I listened to bernanke and bernanke says, listen, i know they arent going to come to deal. I see a lot of republicans on air saying we start to understand what they are they want as cuts. Not hearing anything from the president. Made me feel grim about the fiscal cliff, good about what the fed wants to do, very grim about the power of the fed, beyond what its already done. The wall street journal nbc news poll of americans about the fiscal cliff, some very interesting findings, just to that point, jim, twothirds polled Want Congress to strike a deal and cut the budget, even if that means Social Security and medicare cuts. So, according to this poll, the people are saying, yes, go ahead, cut entitlements and say that obama has a mandate, among those that did not vote for obama, they have that they say that there is a mandate of obama to actually raise the taxes on top earners. I think a mandate do both. The fed a lot of people blame the fed for everything, seems a little ludicrous, what the fed is saying, listen, guys, compromise and if you dont, you got to expect stocks to go down. Consumer confidence coming down, Small Business coming down, compromise or else here is the future. The future is lower stock market. Right. So i think that there is a there is a very funny thing going on. We have rich people coming down to washington saying, listen, we will take our taxes but got to give a compromise. Theres this curious wheres tim geithner with specific doubts really get this thing going . What do they come up with . What did eamon javers come up with the other day . Raise taxes a little less than you thought. He comes out and says, listen, medicare, make it this new able. Wed deal. But its the president that is a deal if it gets done, how you get there is a question mark. Does he finally need to know they are going to proceed to the increase in tax rates that he wants or close to it, then come with the spending or what comes first . The chicken and egg, we are starting to lose interest in the chicken and egg. Who knows what goes on on the calls described as tense between boehner around obama. Move on to a story we told but earlier, a story we have been talking about since that fascinating deal between sprint and soft bank was first announced back in october. We are talking about sprint this morning and 13 d filing saying, yes, it does want to bite remainder of clearwire that it doesnt already own. Give you some of the stats right here off the bat. It would be about 2. 1 billion in cash sprint would be parting with to get the deal done, 2. 90 a share for each share of clearwire. Held by thec and large shareholders such as intel and comcast are bright house, Time Warner Cable already having sold, eagle river already having sold it would be subject to review by soft bank, something we reported on tuesday. We told you this deal was coming. In fact that their talks had reached a very significant stage and another key to the deal would be that it would require the softbank deal to happen, sprint doesnt want to be out there alone suddenly having to buy clearwire around spending all this money that, again, not unexpected. But a significant increase in clearwire stock prices taking place since the sprint deal was announced. As i have been reporting at that time and of course followed up on tuesday, they did want to and do want to own clearwire. They want the spectrum, most importantly, to add the what will be the sprint softbank deal, because the man who will run this company, sprint wants to offer lots of new services, compete with verizon and at t, be creative. In order to do that you need the bandwidth, you need the capacity u why is the stock in your opinion, trading at 3. 11, not at 2. 90 . Second, where i wanted to thank you for clarifying a level that is far more realistic than what wall street was looking for. A firm saying 5 bid, a lot of irresponsible on the part of brothers, get things exciting here but i try to measure 3. 11 versus 2. 90. Tuesday, we reported the deal was near, i said roughly 3 a share that is 2. 90 is. Some people coming out 5 that is not in the cards. Softbank would need to sign off on t they are going to be price disciplined. The fact is even though you do need a vote of the majority of the minority under the Shareholder Agreement currently in effect, not the sprint shares that are owned, they have a lot of rage has a lot of leverage, the way it goes. The fact, that is what you get into when you have a company that is already a voting control by sprint. But we will see. You got a special committee of clearwires board that is review this conflicted, not conflicted. Free port. Not free port. They are going to weigh in. Do you get something that might be higher than 2. 90 . Certainly could argue you go up. 500 until synergies, you are talking 750 million shares. Dollarwise, given everything already put in here, everything happening, it is not that significant in terms of actual money but at the same time, you know, they are not going to go well above 3 bucks. At the end of the day, does this help sprint compete better the verizon tremendously . It does. But even more deals they need to do down the road. This is national footprint, not available to sprint without clearwire. Correct. Their strategy all along. I should point out, my sources indicate that if and when do you get a clearwire deal agreed to, you still would not see it closed potentially until june, just so people know. A lot of state approval is needed in this. The de the deal closes in april. Something down the road to look at to your point, melissa to add more of that important bandwidth and spectrum. What was his quote on the initial it deal, said Something Like i am a man. A man. Im a man, im a man and tell you so apenc davis group kind of thing . Not forget the bonds on clearwire. Because that is again, since the softbank deal was announced, benefited enormously, now sprints Credit Rating are softbanks behind clearwire. That has been the trade. In other words, the other way, so youre making the money as the yield comes down, the price soars. Didnt possible to a knew two years, clearwire would have been in a chapter 11 situation . Even sooner than that. That is the leverage here. They have liquidity issues. Significant liquidity issues. Even if share hold ers do vote it down, the majority minority, the Shareholder Agreement does expire the end of next year, sprint could always come back. Lets talk about shares of best buy, we are seeing this stock soar in premarket trade. According to the Minneapolis Star Tribune, the retailers founder, Richard Schultz, will make a bid for take jove they are week. In the 5 to 6 billion range before fully financed and could come as early as friday. David, i think you have done digging on this. I cannot tell you whether it is true or not a surprise to many people out there but that being tribune, the home paper for best buy, stories dead on, ears little not so much on. There is a deadline it is december 16th for him to come with a bid. If i he does come with a bid and rejected, he has the right to come back with another bid in january. Do you make a bid in december and come back in january knowing what christmas sales will look like . Whether or not this is true or not true, we will bring it back. What is the record of deals that get done in a dedeclining cash flow situation where it is not strategic, a la clearwire . I dont have any idea. Must know, the Minneapolis Tribune must know, they are down the block. You are asking a this is still a big check for private equity. It is financing that is most likely could get done, a difficult one because of what you said. Generate august lot of Free Cash Flow, not the right way. For private equity to step up in a situation like that even with schultz rolling in his ownership stake, even at 16 or 17 a share, still 1. 5 billion that you would need hard to imagine but i dont want to, you know, we dont know. If you were putting a bid in as a place holder before the deadline, how long beyond that . Just wondering if the that would include the first the Fourth Quarter sales, get any indication on best buys sales . That would be the key. Would want to do that so you would get a look at christmas, adjust or wanted to walk away. Possibility of the employees kicking in. Thinking of carter holy hail, a terrible deal in the 80s, tribune corps. Coming out of bankruptcy . I a week or two ment is that something . Stay focused on these. The money could come from, unfortunately, think you work at best buy one hopes. One these doesnt happen. When companies are desperate to do a deal. More likely by the way, dont know how the board would react either. Im still somewhat dubious. We will see. Right. Okay this morning, a company backed by millionaire elon muss sex going mub. We are talking about solar city, known for solar panels, musk, who is the companys chairman and ceo, lyndon life, will join us this hour. Nship. Together for your future. Google maps returned to apples i phone and ipad. Google maps replaced the default application with its own app but that was a target of widespread criticism. The google maps available as a download from apples itunes store. So it is available as a download. I mean, does this change anything, jim . Google is huge. Yeah it s apple are we really trading on every little review now . Oh, wow, google maps. There is a un really an unreality about these stocks. They should not trade on whether google maps is sudden lynn better than apple maps, should be trading on profits, earnings. Google missed last time, apple missed twice. Maybe apple doing better. We look at the review and say i got to take out some google. It is not going to drive googles earnings, if you display ad does drive googles earnings but nothing to do with display ads, sit there and think maybe am, people will buy it, maybe not, but the idea that google is up big and apple is down big just shows you how fanciful this market can be versus the reality. Makes no sense. Google could drive a lot bigger margin if they wanted to, fascinating company, i agree. All the thing these give away for free they could possibly monetize u kansas city, delivering one gigabyte for 30 a month. So interesting to follow this company, generating enormous amounts of cash flow. Trade off of that. Invest in it, they are investing so much in the future. The idea of a superior map product driving google over 700, starting to climb back where it was after that horribly disappointing quarter . I got facebook at 20. I get that. Facebook said we got a way to monetize, but the idea, wow, you know what, those maps, which we know are superior, we should buy google off it . Maybe just the people are taking money out of apple and putting it elsewhere in technology and that could be google. Talk about data points that change every single day apple trades, one day, sales are strong. Next day im minisales. Blah blah. Cvs, the quarter better than expected. Dont trade off of whether the times says says that google is review. Thats how people get hurt. Last night on mad money, cramer set the record straight on market misconceptions surrounding the fiscal cliff. He is about to give you the head start investors like. Find out about it next in this mad dash. 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We wanted to talk technology. So often, jim we talk about technological advances in thi