outfront tonight we have breaking news. a surge of the day. stocks just jumped to the moon. dow and s&p had their single best day for the entire year. the dow jumps 287 points. so you can say why, the sheer excitement. have we suddenly solved all of our economic problems? have we stumbled upon a machine gun of silver bullets? have we found our terminator? not so fast, arnold. today we got shot up with rubber bullets. it was an arsenal of talk but no concrete action. in europe, the central bank chief said officials stand ready to act and there were reports of talks of a possible deal to bail out banks in countries in crisis like spain. that's a lot of talk. being ready to stand by is different than standing by. here at home, the fed said it may be ready to take further action to help spur the economy, extending unprecedented efforts to ease credit. now, that's still talk and not action. is this what we have come to, so desperate, hanging on to the economic precipice that a little sweet talk sends stocks to the moon? outfront tonight, doug eagan and robert reish, author of the new e-book, "beyond outrage." robert, let me start with you. look, we want to be happy and hope this is for real, but this really was a whole lot of talk. i was kind of amazed. you could look through it, there was very little specifics. it was all hope that maybe, if needed, talk will become action. >> well, erin, i think the explanation is that the market had fallen so far and so deep, particularly after friday's very dismal jobs report, that the market and traders were looking for any silver lining. any good news. bond prices are very, very high. the yields are very low. a lot of global savings are just looking for where to put their money. and stocks are looking relatively good. so everybody was sort of waiting for the first little bit of good news and they would surge into stocks. there's another factor, and that is also there are traders on wall street. there were spec laters. they tend to exaggerate the volatility. on the way down they sell short, on the way up, they speculate. >> doug, what do you make of this? and i guess also because you don't want the guys who run these central banks, ben bernanke here in the united states, to go ahead and do things because the markets think that they should or will. that's, frankly, the last thing you want in terms of driving them to action, isn't it? >> i agree with that completely. i think this is mostly a europe story in the substance. there, if the central bank were to lower interest rates and continue to provide liquidity, it could benefit real growth in the eurozone so traders seeing that had good reason to be slightly more optimistic. europe's capacity to disappoint, however, is enormous. i don't think there's much going on at the fed end. they stand ready to counteract any shocks that come out of europe. there is some hint they might do some more easing and, yes, that could help stock markets but it couldn't do what the europeans do which is push more u.s. growth there. this is just talk and it's not going to help our economy. >> let's talk about where we are, because tomorrow ben bernanke will be talking and answering tough questions on capitol hill and we want to be out front of it. robert, this really is the key. many, many trillion dollar question. does the united states need to do more right now? does ben bernanke need to do more for the economy? >> i think he does, erin. you know, the president of the atlanta federal reserve board branch said that he thought that we're getting to the point where we may need more so-called quantitative easing. that's basically fed speak for buying up long-term interest -- getting long-term interest rates down and making sure that the economy over the long term, those long-term interest rates, will spur additional growth. i think that a lot of people have come around to the view that particularly after friday's very dismal jobs numbers, the fed is far closer to embracing quantitative easing, a third round of quantitative easing than it was prepared to do before. there are still some inflation hawks on the fed that are worried about doing that, but not many. i think they're just about ready to do it and i think it's the right thing to do. >> could you say, doug, that it's like a drug. i inject it the first time and i get this great high and then i get addicted. the second time the high is not as good. interest rates can't get any cheaper. it can't be any cheaper to get a mortgage for all intents and purposes and still that hasn't been enough. so why would qe-3 do what 1 and 2 haven't done. >> i think the. >> go ahead. >> i don't think the fed should move, quite frankly. we did quantitative easing 1 that made some sense. they tried quantitative easing 2. yes, it caused people to buy riskier stocks but didn't help real growth at all. they did something called operation twist. no one has noticed. if they go ahead with qe-3, it would give the stock market a boost but do nothing for our economic problems and they should resist the temptation. >> robert, final word for you. >> let me actually side with doug a little bit on this. if you don't have any fiscal stimulus at all, then if it's all up to the federal reserve board, and i am in favor of qe-3. i think the fed ought to do what it can do. we shouldn't close any doors. but it's not going to have a huge impact because without any fiscal stimulus, a lot of people, a lot of businesses are still not going to borrow. they don't have an incentive to borrow or expand because there's not enough demand out there in the economy right now. >> you're a glutton, you want ben bernanke, you want congress, you want all of it. >> i want all of it. i want to get jobs back. we've got to do everything we possibly can do, erin. >> all right, thanks to both of you. of course we'll be watching ben bernanke tomorrow. it's going to be crucial testimony to see whether this economy is in recession or not right now. outfront next, a huge story in the election involving unions that could have implications for every state. and it happened hundreds and hundreds of miles away from wisconsin. and later, the facebook debacle at the nasdaq and how much it will cost. and later, we've got new video in the case of the man accused of murdering a student, obliterating his body and sending the parts through the mail. how did i get here? dumb luck? or good decisions? ones i've made. ones we've all made. about marriage. children. money. about tomorrow. here's to good decisions. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there. our cloud is made of bedrock. concrete. and steel. our cloud is the smartest brains combating the latest security threats. it spans oceans, stretches continents. and is scalable as far as the mind can see. our cloud is the cloud other clouds look up to. welcome to the uppernet. [ woman on r♪ bum-bum,stinct ] bum-bum, bum-bum ♪ ♪ bum-bum - ♪ ai, ai, ai - ♪ bum-bum - ♪ bum-bum, bum-bum - ♪ [ ice rattles rhythmically ] ♪ bum-bum, bum-bum, bum-bum ♪ ♪ [ imitates guitar noise ] ♪ [ vocalizing up-tempo heavy metal song ] ♪ [ vocalizing continues ] ♪ [ all singing ] the redesigned, 8-passenger pilot. smarter thinking. from honda. our second story outfront, all the wisconsin talk overshadowed a crucial vote last night that dealt a serious blow to public unions. voters slashed pension benefits for government workers in two of america's biggest cities, san jose and san diego, california. the fight against unions is going on from coast to coast. it's those cities and of course it's wisconsin. we all know about that place. but now the anti-tax crusader, who harry reid once called the most powerful man in washington, says it's a free day. states need to follow the example set by wisconsin governor scott walker. after tuesday's results there came this tweet from the one and only grover norquist saying, quote, there are 23 other states with gop governor, house and senate now able to pass scott walker's reforms. they know it works and is safe. grover norquist is here tonight. you said governor walker's reforms are safe. i read that and wait a minute, safe is going through a recall and wasting $70 to $80 million on a whole recall because you didn't go about it the right way? >> well, i think for a long time american elected officials wondered whether they could take on the power of public sector unions. what chris christie did in new jersey was show that you could talk about disagreeing with the teachers union without appearing to be anti-teacher or anti-education. and what scott walker pointed out was that you could actually pass reforms which reform public sector unions, which save a lot of money for state and local government. barrett, the mayor who ran against him, had implemented many of his reforms and saved tens of millions of dollars for the taxpayers that he represented. so it works. it saves money. public sector jobs and public sector work gets done. and even though the entire public sector union leadership through money and resources into one state, they still couldn't take one guy and his lieutenant governor out. so it says to other governors, wisconsin has a history of being very strong for public sector unions. it's a union state in many ways. it's a democrat, liberal state in many ways. >> for sure. >> so if you're from some other state that's not as left of center as wisconsin traditionally has been, it's -- the ice is thick enough. go on out. >> so let's talk about one of those states, ohio. republican governor, gop legislature, tried to push through reforms and cuts to pensions and roll back collective bargaining. there was a rule in ohio, went to voters in referendum, they said no way and it didn't pass. so it's not quite that easy. >> two things, nobody has lost an election over it in ohio. what did happen, of course, they had a referred question. the campaign on that was insufficiently focused on what wisconsin did, which was making local government work. so, yes, you can still have this issue and ohio didn't present it well and didn't raise the resources compared to what the you know 81s did. >> what about the overall point here, grover. you look at exit polls in wisconsin. you were talking about it yourself, this is a state that goes democratic. if it goes republican, that would shock almost everybody, no matter who wants to call it purple today, it's still a democratic state. right now voters according to the exit polls, which i know have their issues, prefer president obama to mitt romney 51 to 44%. do you think some of these hard line tactics, this my way or the highway, if you don't like it, go jump off a cliff, is not the way to do it? >> four years ago when obama ran he won by twice that margin so his margin in the state has fallen in half. the state has also passed a voter i.d. law which a liberal judge said won't apply to this election. so this is the last election you could show up on election day, tell them you're mickey mouse and vote. that can't happen in future elections. so the vote is going to get closer for obama running at the national level. but i'm actually more interested in what san jose and san diego did. >> yes. >> reforming the overspending on pensions and benefits, the teacher tenure laws that allow teachers who have been there three years to keep their job forever regardless of whether they're doing a good job or a bad job. those are reforms that are moving state by state. as i pointed out, there are 23 other states that have a republican governor and legislature, meaning if they sit in a room and say let's do what wisconsin did, texas and florida, georgia, big states. >> let's bring in john avlon and roland martin into the conversation. on that issue of you have two states that would do it, john, let me go straight to you on this. a lot of people are saying that the vote in wisconsin maybe wasn't so much about the collective bargaining but people saying a recall is supposed to be about did the guy break the law. so maybe the vote is not this mandate on collective bargaining or anti-union and more straight down the middle about did the guy do something illegal? >> to that point, we've had recall fever in this country. in 2011 there were 155 instances of recalls on local races. so i do think that there's general lly a rejection of this. that clearly was a part of this. but the fact that walker won with more votes than he did in 2010 also speaks to a certain strength. then, of course, the money differential, you can't discoun democrats take away from that. san jose cut its workforce by 25%. they had done all sorts of things. at a human level hurt a lot of people's lives because they didn't want to mess with pension promises but they voted to go ahead and cut those promises. this seems to be something that is bipartisan, isn't it? >> first of all, when you have a difficult economic time, the public is going to look to anybody to want to be able to blame or make any kind of adjustments. keep in mind, when we talk about public workers, people ask as if we're talking about only democrats. there are actually people who are republican that are teachers, firefighters and police officers. one of the things that we have to keep in mind also, especially when you talk about teachers, i have three siblings that are teachers, is typically the payoff for a teacher is going to be that particular pension. here we are trying to get higher quality folks in the classroom. if you begin to say we're going to cut pensions and we're not going to pay you more on the front end, then we're likely going to lose quality people in the classroom. so we might want to be very careful in terms of how we attack this whole notion of a pension for public workers, because they are sacrificing on the front end to get something on the back end. >> but what if you paid them for their performance all the way through? pay them on the front end if they're good, fire them if they're not? >> first of all, i absolutely believe that if you are not a quality person, you should get fired. but keep in mind, the same people who voted yesterday are the same folks who don't want to pay more right now. so at some point they're going to have to figure out where do i stand on this and the rubber will meet the road somewhere. >> but really the votes in san jose and san diego are in some ways even more significant than wisconsin, because it happens in california. it's not a narrow margin, it's a 70% margin. democratic mayor of san jose saying, look, our pension costs have tripled in the last decade. we're spending a quarter of a billion dollars on our pensions. we can't afford that. people across the political spectrum say that's right. these are deals made decades ago and we can't afford it. we need the freedom to make fiscally responsible justice. >> grover, would you think i don't want to be the standard bearer for the republican party, i admire what the democrats are doing. do you admire the democrats? >> i think you've got some democrats who are put in a very k difficult position, which is one of the most important funding bases for the democratic party is organized labor. they take union dues out of the paychecks of teachers. in wisconsin it was $1,000 per teacher taken by the union and then spent on various things. one of the things -- >> right, so all i'm saying is wouldn't you say that these democratic mayors, governors who are taking on this issue are all the more courageous? the republican guys aren't getting these donations. that's not that hard to take them on. >> no, they are being courageous. they have been put in a situation where the public sector unions and their demands are bankrupting whole cities. they have to do this. you're even seeing rahm emanuel in chicago begin to have some of these efforts. this has to happen. it's bankrupting cities, states. government can't work with these sorts of costs that are being imposed on it. this is happening, but slowly. it should have happened ten years ago. >> grover, thanks very much. >> got to leave it there, sorry, roland. john and roland will be back tomorrow. ahead, a report from miguel marquez. a man terrorizing americans by planteding bombs in every day household items in this country. and the nasdaq forced to pay millions for facebook to whom, to you? is it even the right number? [ male announcer ] this is corporate caterers, miami, florida. in here, great food demands a great presentation. so at&t showed corporate caterers how to better collaborate by using a mobile solution, in a whole new way. using real-time photo sharing abilities, they can create and maintain high standards, from kitchen to table. this technology allows us to collaborate with our drivers to make a better experience for our customers. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better. ♪ the fallout from the facebook ipo continues. although it's fair to say as part of the bounce in the market the stock did go up a little bit. part of the problem lies with, well, where facebook went public. it went public on the nasdaq. you may be aware that serious problems in nasdaq systems on the ipo day caused big losses for a lot of people. it was so bad, in fact, that the ceo of the nasdaq said had he known these problems would have happened, he would have stopped the entire ipo. so much money is he going to have to pay? today nasdaq said they're going to pay. they're going to provide some compensation to people who lost money in a few different ways. this is a little complicated. basically when the stock opened at $42 a share, that was a problem for a lot of people. a lot of people tried to buy stock and didn't know if they were able to boouy it or tried sell it. well, as you know the stock fell sharply. if you were in at $42, you lost a heck of a lot of money. how much is the nasdaq on the hook for? that's our number tonight. $40 million. so they hope. they said, hey, guys, $40 million. they're going to give $13.7 million in cash and then say, you know what, we'll give you a discount if you trade with us and that's how you'll make up the rest of the $40 million over the next few months. we'll see if that will actual work. there's a problem with it because a lot of firms are really upset with the nasdaq. a trader told me today that the losses for the firms were actually nowhere near $40 million, it was $120 million. and those firms, those firms are actually, you know, regular people. your pension, your 401(k). they represent them. that's going to be a problem. as one trader told me, the nasdaq has egg on its electronic face. ahead on "outfront" are intelligence leaks happening at the highest levels of the american government? and bizarre case of the body parts murder in canada. the suspect released videos while he was on the run, and we have them. reat presentation. so at&t showed corporate caterers how to better collaborate by using a mobile solution, in a whole new way. using real-time photo sharing abilities, they can create and maintain high standards, from kitchen to table. this technology allows us to collaborate with our drivers to make a better experience for our customers. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better. ♪ helping you do what you do... even better. by what's getting done. measure commitment the twenty billion dollars bp committed has helped fund economic and environmental recovery. long-term, bp's made a five hundred million dollar commitment to support scientists studying the environment. and the gulf is open for business - the beaches are beautiful, the seafood is delicious. last year, many areas even reported record tourism seasons. the progre