lou: to your comments, david will son wrot wrote me on faceb. that is it for us, thank you. we'll see you tomorrow, good night from new york. neil: whatever happened to hope and change? look at this "newsweek" cover. i think it got up and went, welcome i am neil cavuto. in the end it comes down to tina brown wanting to make green, so maybe a hard turn to right will do it a cover that has salon sick and huffingtons huffing. that hits president hard and demands barack obama hit the road now. before you think that tina has seen the light, it is like tina has seen her wallet. this was not an editorial

choice, this uber-liberal news wig this was an economy one, the president should be worried, it proves that hope is small change to publishers. it does not sell magazines any more and it does not make money any more. you can't make dough . try to convince people in this administration is making them dough . and liberals by questioning his opponent's firsties has not been a financial barnstormer last time i checked old "newsweek" january cover, did not sell out. probably because it is wrong. probably because even the most wide-eyed liberals realize there is no money in it hence "newsweek"'s move to the right, this is defending the left and

the right, either way barack obama should just read it and weep, he is not only failing at making his political case, but his policies are losing his financial case. it is not liberals do not still believe it, but they have discovered there is no money in it, that could be the most worrisome sign of all for the white house, saying his biggest backers must not be make money off him like he used to. singing his praising as president. nothing speaks like losing a lot of green, right? >> that is right, neil, i think that -- i watch your show for years. you are the type who is interested in charting market indicators, we're seeing something clear, "newsweek" time and again with their new motto to put out one shock left wing cover after another. the bachmann cover comes to mind, the one you just put up, romney supporters or obama

critics dumb? >> the list goes on, it is not doing the job for "newsweek." remember that "newsweek" has gone through quite a bit of turmoil, changing ownership, and losing money, and rumors they might stop printing actual hard copies. i think they are grasping for anything, something to turn the ship around, if that means dumping on barack obama, the man who one of their editors 1 s -- wans once called almost god, that perhaps shows desperate straight they find themselves in. neil: interesting, looking at print publication those that were moderate, they are stabilizing if not growing. they are increasing subscribers at a time more liberal colleagues are losing them, the businessman in me would say, there is money to be made in

fair and balance. now leaving that aside, i think -- to your point, this could be bigger, a sign that the left is frustrated with the guy they lionized more than a few years ago. there will be more coming i suspect? >> and a couple things in response. when it comes to this business model issue for "newsweek." i think they are not making a long-term commitment to become a conservative magazine. >> no, no. >> but i think they are try to do is have one provocative shock cover after another, it might work in blips here and there. i saw the guest host today for rush, encouraging them to go out and buy this particular issue of "newsweek." i think that is not stable long-term, what is stable long-term is fair and balance. i think fox has proven that over

14 years now, when the idea call question that you raise, i think you are right, there are real troubling signs here for obama supporters. you open the segment by asking, what ever happened to hope and change. i was asking myself that question today, as i witnessed the presidentsur surreal news conference, where he was blaming mitt romney for running a negative campaign. neil: what do you make of the timing of that conference today? >> well, it was -- it was incredible to watch, in many ways, he came out there, he finally answered questions to his credit. as i said, almost to the day two months since he faced white house press corps and was not answers questions from local dee jays like ha your favorite color. he was asked about tone and tenor of his campaign, i think

he telegraphed he is perfectly 100% comfortable with the way that campaign is running. he tried to even do this piece of political jujitsu. the problem here is nasty negative romney campaign. i think we saw it on display in white house briefing room today. neil: all right, guy, you are young, but here is something i know. i came to this network 16 years ago. today. fox news. >> wow. congratulations. neil: time flies when you have fun, not all liberal leading outlets leaves the president, "new york times" all but doubling down, arguing in a front page story that the president did not spend too much when it comes to rescues housing, he has not spend enough. he tried to finesse the clean up

times right. -- facing for foreclosure, democratic congressman kucinich said that times has it right we should be spending more, he is joining us from washington. that argument always flabbergasts me, i respect the heck of you, but i think we spent more than enough, you say otherwise. >> the question here, neil, by the way happy anniversary, the question, who do we spend it for, the banks got a bailout, homeowners were left behind. it would have been in country's interest to have mod cas modifif mortgages, and fed could add bank equity and keep people in their homes. neil: every reworked program we did, failed. a lot of people we helped out still went belly up. we did not see go the results. a half dozen different attempts

to shore up folks in arears on their homes, they still got kicked in the rare, what do you make? >> the times is right, if you have a leaky roof, you don't spend $10,000 to build a new garage, you fix that leaky roof. we still have leaky roofs to fix. neil: maybe we spend that money where we should not. we got distracted with while carat a time there was a leaky roof we should have addressed, called jobs that would have helped everything out, including housing. >> it's not either/or. i could argue, we should not have given the banks any bailouts, we should have worked on mortgage modification, and add bank equity through the fed. we did not do that i want to tell you a story, tim geithner came to the democratic caulks --

caucus afterr administration tok office, i am concerned mr. geithner never tried to save people's homes. neil: i don't think he should have bothered. we go back aways. i was not for the bank rescues, i am not for the any recuse, it distorts the market, and drags out the inevitable. any money you spend, they have to be bailed out and rescued. stop writing the check, by the way we don't have the money to write the chick, so stop it. >> picking winners and losers is one thing, but helping to keep people in their homes is another. neil: where do you draw the line? you need a litmus test to keep them in their jobs, people look to the government to fix anything that goes wrong. >> neil, we create jobs, i am

not talking about give aways, give the american people a chance to keep their homes -- >> congressman, i tell you, every time we have done so we made it worse. you are arguing if we double down, triple down -- >> i'm not talking about throwing money at a problem. we need to help keep people in their homes. neil: we did, we tried half a mortgage rework programs to about $450 million, make it billions but that argues that more money is getting you different results. >> why is it okay to give hundreds of billions to the banks and not help joe and jane home opener make their mortgage games to keep them in their home. home. neil: i am not to give money to anyone, not rescues or credits, not one individual or another, we have a slippery slope.

>> the slippery slope is the corruption on wall street, mortgage-backed security. neil: no, no, that slope is $45 trillion in more debt, it is leaving all of that -- all of that, you to the tax payers, everyone is paying that bill, not just those in arears. >> how do we get out of the mess. neil: stop spending, that is how we get out, just put the shovel down. >> get america back to work, people can pay taxes, this is not rocket science. neil: we sppt a lot of -- spent a lot of money, and not a resu result. i leave you speechless. >> that ove never happened. but i will say help modify people's mortgages, keep them in their homes, and then also,

create jobs, that -- then we can get the economy moving. i want to see this country prosperous. neil: i want us to stop spending to stop guys like you even though i love you, congressman, thank you. he does not feel the same way, dennis kucinich. by the way, i am covering these issues from the speeches from both conventions next week. live at republican republican in tampa and the following week democratic in charlotte, north carolina, i am sure it will always go well just like with the congressman. >> not only is your every move tracked. but what if i told you your next move is as well. the judge on how mobile companies don't just know where are, but where will be. >> and zucke zuckerberg needs te

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the affordable care actade as have strength ended medicare, and helped seniors get better carat less cost. neil: president, today at white house, a quick briefing, but, the be owners saying that the white house is getting predict predictable, they are here to tell the president to stop making things wore for them, but first, california's house is burning but governor office is blaming someone else. >> i am back. >> moody's warning that -- in california may go bankrupt, but

instead of finding a way to fight on, governor brown said this, they are in direct result of job losses that occurred when republicans occupied white house under democratic leadership jobs are coming back. you don't quite see that? explain? >> no, and i think that rule of thumb is people who live in burning houses should not throw gasoline. you know, i think that the governor and others, try to make a distracttion about the mess we're in by blaming those who were in office years ago, not just in california but federal level. i don't know that california public and americans buy it. i don't think they buy the blame game. neil: i have talked with many people here and abroad. when it comes to washington, we have spending on republican administration, and crazy and this one is crazy, there is a lot of blame to go around, i am

sure arnold schwarzenegger was nobody's cup of tea, the time for blaming is over, you waste precious time just playing that blame game either side. >> absolutely. let's not forget, the governor or president, signs bills, but forget we have legislative bodies that need to get their house in order, the governor's own party dominated legislature in california for years, his own party, governor has been trying to create tension reform, his own party has been killing any incremental measures to fix the pension system, let's stop the blame game, make sure we're doing no harm, no more taxes, no more regulation, no more hurting small businesses, and make sure our elected official are listening to the people. neil: well, they are not listening to people in your fine state, they are talking about adding fees, and sales tax because they are not getting it from spending cut.

where do you think your fine state is going? >> you are right, i think that the house burning. we need to fix it this year, i think there is hope, i do believe so. you know, we're finding a state that is truly in a hole. and the electorate has a chance to hold their officials accountable, bring new people in who get main street and understand jobs, get those out who don't get it, and get main street jobs back in the economy, there is hope in california and the nation, that is the hand of the voters. neil: i think that moody's is right about this. john, than thank you very much. >> was this guy right. >> since you mentioned north america -- this crisis was created in north america. neil: and they believe him, they are listening to him, you can be

make a killing on all of those companies, europe is killing them, and outrage use thing is that guy is not even french he just sounding french.

neil: in our fox financial flash, apple is now the most valuable company, ever, ever. the previous record was microsoft. back in 1999. gas prices hitting a record, but not good, drivers paying $3.72 a gallon, highest ever for a

august 20. then, what is french for, get the hell out? i think that french bankers are saying their country blows. 75% top tax rate has an escargotting, going gone. anyway. now they are chucking through chunnel for a better less tacking life in chile old england, -- chilly old england, combining both accents for you. and on wall street, tech analyst are recommending buying companies with expert use to europe, and selling companies with exposure to america. but, as bad as things are here, lizzy said still a better investment but jonathan disappears, lizzy? you think a bad idea? >> yes. the population is about the same size at the u.s., they have 5% of natural resourcing in oil, they don't have a microsoft or

an ibm, gook els google or an am not hot on europe right now. >> her analysis is that of a reporter, not an investor, europe is a mess we know that. but old market adage, you have to buy when there is blood in the streets, there has been blood in the streets for months, this is a contrarian play, not up like say letern america in late -- latin america in late 1990s. neil: there has been blood in the street for last couple of years, you could have gotten in then, and you would be badly bloody. >> you are right, liz has hit nail on head, in short-term u.s. technical companies are performing, but beyond today's media headline -- >> i'm looking beyond today's headline, talked with joerg version witj.p. morganchase andd

merrill lynch, if you top play northern go north europe europe, not southern. i would say, strictly germany, the problem in u.s., politicians going into dc, suddenly they get stockholm send ro since syndromr some reason, we have a sluggish recovery they are not thinking right, they are misdiagnosed the problem from the beginning they have given the wrong cure for the economy. neil: john, you argue that shares or some reflect that, there has been overkill, some investors should -- >> remember, in early 2000s, after the internet implosion. no one wanted anything to do with internet stocks, in hindsight, names like amazon and priceline were good buys when they looked most terrible, i

think, liz has hit the nail on the head, the economic under lying fundamentals in europe are terrible. but if you are looking further out and have a stomach for risk, like france telecom for example, could make sense. >> but you' to give companies with exposure to emerges markets, but i am thinking like this is a long-term play, which jonathan is talking about. by no means is europe going to be out of the woods any time soon, neither is u.s. we've been on conve conveyer ben the u.s. california is looking more and more like greece. neil: i want to see what i get. >> probably give it to you. neil: i'm saying. have a parthenon in your portfolio. >> look at this, shareholders'

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neil: i think it's time for a certain billionaire to bolt. give the hoodie the heave-ho. not just because the stock is tanking, but because mark zuckerberg rational for facebook. the most loyals users are wandering and how it lef leveras off those users and make money

is a question. that does not mean he is not a genius, but he is not a corporate genius, facebook is a public corporation. this is not a dorm room this is a boardroom with a board ha is not cuts it. and leader who does not grasp the dimensions of either, there was a time when no less than steve jobs of caught off guard, and failed to appreciate that, and lost his job at the very company he created. but came back an older and wiser visionary to lead that company he changed. i am not saying that zuckerberg could do the same, but i am saying keeping zuckerberg in hiss reseptembes re-- his preset facebook is insane. for the good of the economy he has to go, now. i guess the question, is whether he will, lie? lee, what do you think? >> i don't think he will, the

best thing you could do is be that chief yahoo! type of thing. the chief code writer or facebook. but i don't think he would leave as figure head, investors need to remember the fears that you have and i have, are not unfounded. this is not u.s. steel or news corp with a fixed asset where ceo might say give us a couple years to generate profit at your own pace, this is a dot-com company that works on internet speed, as we saw in last few weeks with announcement about getting any gaming in united kingdom and to get you know young tweens too get as subscribers, that shows they are grasping at straws, i think we could have a mutiny where zuckerberg is just a figure head, you bring him good management, you know pluck someone from google, and then start getting the ball rolling. the big elephant in the room,

which has never been answered, is how you get my wife on her iphone to clip on an app on the you know, ad on a facebook app, until they answer that question, wall street the send the stock no place. >> i think you are right about, that also, you have to explain your business model, you mentioned google, google those founders, some say turned to eric smith to turn things around, but. i am wondering if this is the same thing. google was easy to describe. and its moneymaking potential easy to fathom. i am not sure of your point of whether the other applications and uses leverage the brand or whether the brand as we know it, is not what it has been hyped to be. >> i think there is some truth to that, i would give facebook the benefit of the doubt, there was a study year willier this

year that looked at -- study earlier this year that looked at brand identity, we see coca sola acoca-colaas a brand, but facebt end up in top 50, people say facebook at a utilitiy, people say, isn't facebook a utilitiy? i say -- google a utilitiy, i say no. and until it is a brand, it may be as you said, not -- it may not matter if they get people to click on ads or a mobile app, and if they can't do that, and they can't differentiate themselves, there may not be a basfacebook as we know it 5 or 0 years from now. we may be using a different platform by 2012. neil: yeah, i can remember prodigy. >> and i remember myspace, it is

a weird gaming site right now. >> lee thank you. in albuquerque. >> in meantime, how is this for carla, electric carmaker recalling karma sportss sedan after a car "catching fire" because of a faulty cooling fan, coming up, my picks are "catching fire." >> but next your cell phone company could know what you are doing this week before you do. the judge with his verdict, the war on privacy got creepier, a lot creepier.

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neil: well, from cell phone to psychic, new technology uses

past data from your phone to predict where you will be in future, where you have been, what time you were there who will be in contact with, making predicts for tomorrow, that sounds like a dream come true it is but judge napolitano said it is a nightmare for your privacy. >> this is creepy, general petraeus made a speech, in it he predicted that soon central intelligence agency, not allowed to spy on americans will be able to predict where you are, where you go in your house. i wrote a piece about this, the cia in your kitchen, they did not like it, they call our bosses. neil: they burned whatever you were cooking. >> technology is so precise, records so many -- so much information about us. that it enables the government and advertisers to predict,

where we go, what we want, and where we're wanted. do we' that service or bombardment from advertisers? do we want that kind of monitoring from the government in return for what? >> convenience. >> right, in terms of -- government they argue safety, and advertisementing retaiing wl taylor to your needs but we'll have so little privacy we'll be subject to what they want us to do. neil: it makes it icky here. is that they are taking all of the past data, or conversations e-mails and text to chronical where they think what you will be and likely be doing, and companies and firms product makers that are geared to providing the services you seem to have a history of going to. this coming weekend? in other words haunting you?

>> right, by predicting, saying, almost, mr. cavuto we know you and mrs. cavuto will be in such and such a place saturday, would you like to look at -- an and yu ask yourself, how do they know? would to be safer or more convenient if they knew everything about us? yes, but who wants to live ins a society like that. neil: what would it mean, if they say, it will keep you safer, we'll be tracking the bad guys, we'll get them before they get you. >> here is the distinction, i can tell google and amazon to take a hike by not using a product, i cannot do that with the government, government need doing changed with attitudes and values of people in it companies that say, good-bye, try that with the feds.

neil: a very good point. the judge his ruled, everyone be afraid, don't go to the judge's kitchen, he is being monitored. >> and speakers for the upcoming democratic convention are just about set, did you notice two guys from massachusets? massachusets are democrats that worried they have to keep folks that that safe, that happy. they are about to tell you why they are not happy. you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways.

on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. nding more so companies and communities can expand, grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank.

neil: well remember the meltdown, how bad things were in

2008? people don't think they are a heck of a lot better right now, more than half voters in swing states are saying they are not better off now, business owners dave mccarther, and patty, and butch say this is because the government has made things harder for them to be better off now, david, we begin with you. explain what you mean. >> well, big thing we've seen, when you say worse off. the dirty little secret is food inflation has gone up. we have 33 or 34% increase in food prices during a recession? that is unheard of. we have seen the costs increase in food, and fool and our insurance, and all of these, have you the consumers, money in their pocket less than it was due to things they have to buy, me being in the world of the disposable income small

business, my customers have less of it in their wallet because of the high prices they have to go to, and feed the family. they have to put fuel in the car, it has gone from bad to worse. neil: let's stick to food group, same for you. >> same thing, nobody -- everyone is so unsure. neil: what do your customers do. >> we have to be creative, give them a lot of value for the money, they can afford to come, but you don't see people going out as often, indicate erring halls they don't get extras, it is basic, they are worried. neil: patty, you are a communications person. so if you -- have you seen you know could a more emboldened customer, more jazz or engaged customer, 4 years ago we were told there were no customers. maybe not so easy to compare? >> well, when you really see now

are people who are looking to get valley for their money -- value for the money they spent, it is important to give that extra piece for what they are paying for. you know times are tough out there, this just -- it is hard to be in business right now. neil: you have taken this to the president. and stated this case, no one shot you in the process. dark humor, but my point is, have taken on the president the holding to that thingnotion thaa stride, what react did you get? >> the president said, when i talked about health care reforl he said i would get tax cut to offset increases, i do not believe, that what is said, we're not better off 4 years later, look at what we have looming in future, the health care reform in 2014, what are we going to do? we cannot absorb those costs,

and i am sorry, dare i say, we need to unchain the economy. neil: thank you. joe biden. do you get a sense, it was the unknown, the uncertainty what does healthcare mean, we hear, no two doctors can agree, no two business guys can agree, so guys like you, in the baking and butcher, better part of valor is to do what? >> you know, i am telling you, this is to a point of it is treacherous, it is not uncertainty, it is very certain, we know what is going to happen if obama gets re-elected. we have more of the sale same an escalated rate, there are thousands of business people, setting on the edge of the fen, waiting it out, if if goes like it has, they are going to pack

it in, you will see a real estate commercial real estate desert, we've invest our life savings, we're gone back and remortgaged everything we have got, we have trimmed it as thin as we can get it, i am the world's greatest optimist, but, i cannot maintain it at this level, and at what point do you go, 4 more years, guaranteed? nope. >> i agree. one is enough. i see people you know, they don't -- they are not retiring right now, they are afraid, kids are afraid to leave home, where do they go? i have people come to work for me that have masters degrees, they are happy t to be -- be a waiter or a waitress, who is going to get health insurance, are people who get the insurance through spouse at a government

position, are we going to be responsible, so is the government, nobody knows those answers. neil: do you get frust rated patty, if president said to go back to the policies democratic say got us here, what do you say? >> you know here is what is really broken about washington. and it is not just the president, it is congress as well. they are so concerned about keeping their jobs, they are not doing their jobs. it is just -- it is the some point i believe that american people are ready to have somebody tell us the truth. we know as be people we have to deal with budgets and the economy, we know that we cannot -- there is no simple answer for this, we need too get serious, and sit down and say, hey, i would take a tax increase, i would pay more, if i thought that it was going to be used responsibly, and if i knew where it was going, but all it does is

encourage them, then they spent it we have spent away our children a future, it is scary right now. neil: dave, if you had the ear of the president for 10 seconds? >> dig, drill, and build. because you put a dollar a gallon back in this retail market, for every gallon of gas on the market today, this economy recovers in 6 months. neil: butch. >> help, you need to get more people spending, people cannot be afraid to spend give us direct we have no direction. we need to know what is happening. neil: i want to thank you all very much, i know you have pressing schedules, we appreciate your coming in. >> meanwhile, plug it in, we'll turn it off, how a new electric car proved that i changed the industry. i debated they decided. i was right, they were wrong. ref me up. and just start me up.

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neil: the news that could make the news. cut the cord now. and city came up with a plug bn it you don't have to plug

bn at all. drive over the plate that magnetically charges. it is said game changer. a marriage sabre. couples don't have to fight over who forgot to plug in the car. no sugarplum at yes suite take it the forgetful full. i want a divorce. in 50 to the rescue. a wondered nobody else did not come up with this sooner. it is a concept car it could be in the showroom in less than two years and 50 clearly understands anything you have to plug it will not take off.

or get better mileage. but for every other car maker to charge electric sales take the plug out of the wall. if they only list send it to me they could save themselves money. but it turns out i knew everything. did you hear what is going on in in florida right now? concerned about space program cuts the ceo is tick off the last man to walk on the moon be over the moon. annie he is talking to me fromen