Tunore because he miyou ct, maf perhaps, he will print less this fall. This show, rea ov to roll. Varney company is about to begin. [ male announcer ] how do you get your boue . Bounce is great because the freshness lasts for weeks in the drawer. Why cant everything stay fresh that long . [ male announcer ] how do you get your bounce . [ man ] lasting freshness. Lets kick off the show with breaking news. The ap reports that president obama is canceling his meeting with russian president putin over tensions because of the nsa leaker edward snowden. Russia granted snowden one year temporary asylum last week. We didnt like it, the meeting off. Lets get the policy, president obamas plan to keep the hougs recovery going, here it is, winding down the role of fannie and freddie and give private banks a bigger role in lending. He wants more loans for credit buyers and exert more control over the bank telling them what to do. If things go wrong, the taxpayer will still have to back the housing industry. Social engineering like we had ten years ago, yes, say the critics. Others support it. But remember this, do you remember this from a few weeks back, the government is using census data for a fair housing rule. Theyre making a racial map of every neighborhood in america, grabbing Demographic Data to make sure there is no inequality. Special engineering and housing back at the top of the president s agenda. Lets get to the market. Check futures. Were looking for a lower open today. Maybe 50 points down, probably there. A 90 point loss yesterday after another hint that the fed will start to pull back on printing. Before he we get to the markets though, there is always this. Were calling him coffin man Anthony Martin jumping out of a plane handcuffed inside the coffin as it fell at 130 miles per hour, picked the handcuffs and freed himself, wish we could see that, we cant. He got out of the coffin and parachuted to safety. He says he was disoriented, and there he is, parachuting down and it was a calculated risk much like investing and he landed schaffel 70 miles south of chicago and more risktaking later in this program today. With fidelitys options platform, weve completely integrated every step of the process, making it easier to try filters and strategies. To get a list of equity options. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens, and i helped create fidelitys options platform. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Like carpools. Polly wants to know if we can pick her up. Yeah, we can make room. Yeah. [ male announcer ]. Office space. Yes, were loving this communal seating. Its great. [ male announcer ] the best thing to share . A data plan. At t mobile share for business. One bucket of data for everyone on the plan, unlimited talk and text on smart phones. Now, everyones in the spirit of sharing. Hey, can i borrow your boat this weekend . No. [ male announcer ] share more. Save more. At t mobile share for business. Folks have suffered from frequent heartburn. Butetting heartburn and then treating day after day is a thing of the past. Block the acid with prilosec otc, and dont get heartburn in the first place. [ male announcer ] one pill each morning 24 hours. Zero heartburn. Bjorn earns unlimited rewas for his Small Business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. Produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less . Ahh, oh [ garth ] great businesses deserve limited reward heres your wake up call. [ male announcer ] get the spark Business Card from capital one and earnnlimited rewards. Choose double miles or 2 cash back on every purchase every day. Whats in your wallet . [ crows ] now wheres the Snooze Button . Youre getting a little frustrated with all of this wall street tea leaf reading, checking out the latest statement from a fed governor, you are not alone. Its upsetting a lot of people. Every time the fed governor opens his mouth or her mouth, as it may be, you get some hint as to whether or not ben is going to rein in the Printing Presses. Will it be this fall . Will it go into next year . Who knows, but every hint that emerges and is put out there in the marketplace, the market reacts, case in point yesterday. A hint from a fed governor that yes, indeed, this tapering, this reduction in the volume of dollar printing will begin this fall. He said it, the markets heard about it, down goes the market. At one point we were down well over 100 points yesterday and closed at 90 points lower. Here it comes, a couple of fed governors are scheduled to make speeches and they will be closely analyzed and scrutinized line by line, are they offering any hint that the Printing Presses will run less frequently this fall . Any hint to that effect and youll probably see the market go down. The opening bell is ringing, trading has begun and were expecting a 50, maybe 60 point loss for the dow industrials when things get up and running. The opening trend is indeed to the down side. Remember, were barely above 155 and thats still a strong level to be at. But we are looking like theres going to be some selling again today. Watch the fed, watch for these hints. Thats going to dictate the market today. Weve got individual stocks for the moving, in particular, disney. It expects to take a big loss on that summer flop known as the lone ranger. Adam is down on the floor. Did that affect the stock . Yes, it did. This stock is on its way down, 3 already as we begin trading here. Its actually pulling the dow down and disney is down roughly 3 . This is expensive stuff. If youre looking to make money on disney be careful now. Stuart i think its a pullback in lin the general market as opposed to an a pullback for the lone ranger. A couple more stocks for you, the solar market apparently getting too crowded. Ge says its abandoning plans to manufacture solar panels, its selling the technology to first solar. Look at ge, no real impact. Its down. 49 and holding there at 24. Meanwhile, first solar, theyre getting the technology from ge. They reported a 70 drop in profits and they say business will not get any better for the rest of the year. Look at that, down 11 and that was a day traders favorite. Very half heavily traded. And ibm, their hardware unit is struggling and the company is furloughing. I social furloughing with government. And theyre furloughing most of the staff of that Hardware Division and cut wages by twothirds. Any effect on the stock, adam . Yes, as it continues to trade down. Less than 1 at this point. But as you pointed out. Theyre going to have the mandatory furlough. Executives will not get paid during that furlough, but those who are furloughed within the systems and Technology Group are going to get a third of their pay. We had the downgrade from credit swiss yesterday, stuart and think that this stock could go as low as 175 a share. Weve been following it closely because it was well above 200 and now it dropped below 190. And were following i know youll follow it for us, adam. Thanks for being there, again today. Youve got it. Stuart ed butowsky is with us today. Im picking up nervousness and hearing these whispers. You know how that goes. Time to sell, the fed may stop printing money. Its time to sell. What do you make of it . Look, the fed. Youre going to have you ups and downs depending where the computers are positioned with the feds comments, but the reality is, stuart, stocks, even though were at an alltime high and i have clients asking me, were at an alltime high. 1987 in october. We were 40 overvalued and today were about 15 undervalued based on expected earnings. If youre invested in the market, dont worry as of right now. What should you be concerned about . Be concerned about europe, about china, about things happening outside this country, including one thing here in this country and thats top line revenue. Watch those numbers. If the numbers arent coming in well, thats a sign that things are weak in the stock market. Stuart tell me, why shouldnt i just as opposed to selling individual stocks, why shouldnt i sell the broadbased indexes . Why shouldnt i sell a broadbased mutual fund. Ive made money, most investors made significant money and everybody is jittery. The fed has to get out of the money printing business. Why not sell it . Sell it now . Sleep easy at night. You dont make much money in a cd or a bond, but youll sleep at night. Why not do it . Well, because one, you can make a lot more money and two, over time, if you invest in the cds and money markets hold it, wouldnt you not agree. Okay, you might not make a lot more money, but surely, the risk factor is against you. The likelihood of you making another, 10, 20 on your money from here, surely, thats very slim, isnt it . Not at all. In fact, dont shorten your time horizon. If you have a time horizon one month or two months, no one knows what youre going to do. If youre a young person and youre going to invest for five years or longer, put your money in the market and go work and make this economy strong because you will make money in the stock market over time. In the short run. No one has any idea whats going to happen. I agree with you about youngsters, especially if theyre investing 401 k or ira money, im with you all the way up until age 45, but someone of my vintage, for example, well into his golden years. Yep. Stuart i dont want no risk, ed. You know what, you have other risks, theres other risks, there is purchasing power risk. In some people watching now, theyre living off some number, and harder and harder to make ends meet. The total growth income. You cannot get rid of the idea youve got to get rid of some growth in your portfolio. Stuart, ill be careful about the vintage comment. Stuart, you have a lot of years to live and youve got to continue to grow those assets. Thats the problem. Thats my big risk, longevity. If i live for another 30 years, i mean, is that possible . You will. Stuart if i did, ive got to make my retirement money spread out over an enormous period of time. Anyway shall appreciate you being with us, ed. Im still inclined to sell and run away and take my money oaf the table. Dont, dont. Stuart all right. Stay fully invested and continue to do this great show. Stuart i dont have nerves of steel. The dow jones average opened 60 odd points lower, only six minutes into the trading session and were down 60. This from the house ways and means committee. Can you see this . A parttime nation. This is the house ways and means committee. Parttime nation, america. Looked at Household Employment survey from the bureau of labor statistics and their findings, seven out of eight jobs created on president obamas watch have been parttime. The congressman is a member of that committee and joins us now. Congressman, thats looking at one survey showing seven out of eight jobs were parttime. I mean, thats not born out in the other surveys, which showed that weve still got a lot of fulltime jobs created. Youre looking at just one side of it. The equation here. Good morning, but were looking at an economy thats not growing jobs. Only 162,000 jobs produced and economists were looking for 180,000 in the last survey, you know, weve had almost 37,000 people drop out of the work force, and ive got to tell you, there are a lot of parttimers out there. Ive left the National Chain restaurant where the general manager walked up to me, im put in parttime congressman because of this president S Health Care law, what can you do for me . Theres going to be a lot of people moving to parttime because of the president s health are law. Stuart we faced this question, can we defund obamacare and get rid of it . Can we . The majority of American People are not happy and i think as the next year or so as this is implemented more and more people are not going to be happy. We need to continue to defund aspects of the president s law. We need health care reform, ive said that all along, this law is not doing it. It is causing us to become a parttime employment nation. Stuart yes, now, at the end of the day, congressman, would you shut down the government because you want to defund obamacare . Would you be prepared to pay at that price, shut down the government, to close down obamacare . Well, stuart, i think we need to look at all options. We need to make sure that were moving forward in a direction to get obamacare out of the way. I am not, you know, at this point im not going to say whether i would vote for or not for shutting down the government, but i think we need to look at any way possible of making sure that we get the president S Health Care plan out of the way because we have to get the economy moving again. And get fulltime employment back as a fulltime nation, fulltime employees and get us back to growing this economy. Stuart i think growth is the word to use. We desperately need 4, 5, 6 growth. Yes, sir. We appreciate it. Thank you, stuart. Stuart i was talking about this a moment ago. Would you want to live until you are 120 years old . Now, wouldnt you think that most people would say, yeah, ill give it a shot . However, most people would not even want to make it to the century mark. Are times really that bad . We will ask dr. Keith ablow, a youngster, 10 17 this morning. And to the big board, yes, weve opened lower, down 66. 154 is where we are now. The writings on the wall. First detroit, next chicago . A billion dollar budget shortfall by 2015. Whats next for chicago . Well deal with them next. Announcer where can an investor be a name and not a number . Scottrade. Ron im never alone with scottrade. I n always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer scottrade proud to be ranked best overall client experience. This is a very low volume wednesday in the first part of august and the market is down 57 points. How about the price of gold . Fell below he 1300 recently and still below 1300. 1283 is the quote now. Dead flat. Look at disney. It is the biggest loser on the dow, why . Well, losses from its flop film. Lone ranger is hurting them. Plus, disney is coming off a high and its down near 3 . Ive got troubling news on chicagos financial problems, the city is predicting a 1 billion shortfall by 2015. John tillman from the Illinois Policy Institute is here. Lets assess the general situation for chicago. It seems that either chicago gets more money from illinois, most unlikely, or chicago gets money from the obama administration, probably unlikely, or it gets huge concessions from unions on pensions or it goes bankrupt. Is that about it . Those are the choices, stuart, and i think the key thing here is chicago. We should compare chicago of today to detroit of today, we should prepare chicago today to detroit of 20, 30 years ago and this is the fulcrum point for this mayor. Is he going to take on the Public Employee unions, nine out of ten city workers are unionized . His political power comes from the unionized work force. The trick the mayor is, how does he take down his political face and cut expenditures and 78 of the budget spending. Right, i want your judgment because hes got to get, i mean, serious concessions from those unions. He just got to do it otherwise, theyre i mean, they really are in deep trouble. So, my question. Right. Stuart can he do it . Could he get the concessions from his own base and get them to give back a ton of money . Can he do it . I think he can get some of it. Hes going to try to convince the Union Leaders and rank and file that they have to take a hair cut and never get enough money from the state of illinois, from the country and the federal government is also broke and theres just no money and no appetite for a bailout of chicago let alone detroit and hes going to try to do a hybrid program and sneaks in more revenues and cuts from the unions and tries to find some way to get more money out of the federal government. It wont come from illinois. He really cannot cut Services Much more. He certainly cannot cut security, Police Services in the city of chicago, you have he got a crime wave going on. Can he cut other services enough . Can he do it . He needs to open up the City Services and take away the monopoly they have. The union force is a monopoly of the services. Were down to the same population and africanamericans are down 200,000 people, and these are signs that theyre not longer serving for the reasons we discussed. And hes got to use this and force the unions to the you cant do that in the shortterm. You cant send an executive order, all right, were privatizing this and that. Does he not have a city council to get through, some authoritative body that would stop him if he would try to do this . He has a fairly contentious city council. So far they have he rubber s m stamped most of us. And most of the districts are controlled by unions themselves. The great challenge for him is to apply pressure in my view, by being transparent, opening up the city spending, let the people of the city of chicago know whats going on. Were getting a bifurcated yes city. There are 2400 city workers making over 100,000 a year and poor and working class people paying high property taxes and sales taxes to fund these. And its the city versus the working class and the mayor uses that to create the political leverage he needs. If i had money i would not lend it to the city of chicago. I presume other people feel the same way, therefore, the cost of borrowing money to the city of chicago is going straight up. Am i right . Youre absolutely right. In fact, i think that bond buyers should take a hard look at illinois and the city of chicago and advise them not fhae those bonds. And thats the borrowing that allows the crisis to continue. If there were no more borrowing because the bond buyers walked away, that would give the mayor more leverage to negotiation with the unions. The rank and file members arent the villains, the basic system is corrupt. Stuart you know, detroit was the writing on the wall, wasnt it . John tillman, Illinois Policy Institute. Thank you very much indeed. Thanks, stuart. Stuart take a look at this, please. Coffin man, tightrope man. Jet man. Risk takers all, daredevils, yes. Dont tell the president. My take on risk is next. [ male announcer ] imagine this cute blob is metamucil.