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NEW FEARS THE FEAR MONGERING WILL KILL MEDICARE REFORM
Dagen McDowell: These fear mongering tactics work because the vast majority of Americans don't want Medicare touched and don't want to sacrifice anything, they what someone else to sacrifice. People who have Medicare or are close to it are taking out more money than they ever put in to payroll taxes into Medicare, They don't want it touched and look at Tom Coburn, it's a shame that he wanted to cut additional, what, $130 billion.
Charlie Gasparino: Right, but remember the premise of reforming Medicare now is bipartisan reform and when was the last time that ever happened? I think this is pretty simple. Bipartisan, the last time I remember anything bipartisan was the Graham Hollings reduction that never occurred. You want to reform Medicare, change government. The President has a plan, that I think filled with holes, but it's a plan to basically to keep the sort of mandate and infrastructure in place. And Ryan has a plan to take away the infrastructure and I think to preserve Medicare for people who need it and the American people want to deal with it, they will vote Republicans in and the Democrats out and that's about as simple as it goes.
Charles Payne: It's punted to them, but Charlie and Dagen both make the same point and it really comes down to one word, re-election, and whether or not you want to sit by principles or play this game and in Washington they call it gridlock and compromise. The fact of the matter is nothing gets done and the idea that senior citizens now will be so afraid of the Ryan plan, means, to your point they never looked at it, but, the scare tactics worked. Unfortunately at some point we all have to say we want to make a sacrifice not for ourselves, but for future generations.
Adam Lashinsky: I love it when I get to play the optimist among all of you sour pusses. You have one Republican leaving the gang and six and saying he's going on sabbatical, that's code for tell me what I want to hear and I'm going to come back. We have a discussion going on tremendously positive. Neil, it took a long time to get here. We can't expect to solve this problem quickly. You're right, we won't solve it quickly, and we're having a bipartisan discussion.
KEY PLAYER IN GLOBAL FINANCIAL CRISIS FIGHTING JAIL TIME
Charles Payne: What we know, they got billions and billions and billions of dollars from America to really sprinkle it around to a bunch of socialist countries that don't really in a lot of ways like America. Now what's going on, this weekend we got an election in Spain and a lot of people are afraid what we're going to find out there's even more hidden debt there. And more hidden obligations and Norway turned down Greece on money this week. It's so ugly what's going on there. For Norway to say you've gone too far you've gone too far.
Dagen McDowell: You know what happened? There wasn't good evidence here in New York City, because the New York District Attorney and all of the attorneys in the District Attorney's office do not care about Europe.
Charlie Gasparino: There's no way you're saying is going to happen. I'm not saying the evidence is good here but it's not going to happen.
Adam Lashinsky: Not only will the New York courts not let him off on this, but I don't think our state department cares either. He's not the only one who can figure out how to bail out Greece, there are other people who can do this. No, he's going to be prosecuted and tried and see what happens, it's a serious crime.
LINKEDIN'S 1999-STYLE DEBUT PROMPTING NEW 'BUBBLE' FEARS
Charles Payne: The year after 1999, in March of 2000, a company called World Online went public and the day it went public it found out it had a 12 billion dollar valuation and found the CEO had already sold all of her shares, every single one of them for only 60 million dollars and that was the beginning of the end. A company that did 15 million last year with 10 billion dollar market cap. I know it's exciting, I know, but when I get the LinkedIn e-mails, I don't know who they are.
Charlie Gasparino: The same thing that happened back during the tech bubble between 1995 and I guess March of 2000. When you have interest rates near zero people will reach for yield and they'll invest in things that aren't worth what they should be worth and you can't help it. Where are you going put your money, buy a ten year bond in that's why LinkedIn sells at market cap of 135 Billion dollars.
Dagen McDowell: You're comparing people looking for yield to somebody who's buying a company. People are bidding up the stock because they think it's a legitimate business, the only danger is they cannot keep growing the base of users.
Adam Lashinsky: There's no question this is extremely overvalued. There's been a dearth of IPOs and that's one reason why people are excited about it. It's worth pointing out that the companies that are going to come next, Groupon, Facebook, maybe Twitter will be higher quality than LinkedIn. It's not a bad company, but not it's not worth 9 billion dollars. I mean it could in theory grow into that valuation and the next ones will grow into those valuations.
STOCK PICKS: BARGAIN STOCKS
Charles Payne: Whirlpool (WHR)
Adam Lashinsky: Black Box (BBOX)