department of education, and teachers unions. nancy and mike e-mailed to say, we think highly of you, your show and your opinion, we watch your show all the time. thank you both. thank you all for joining us here tonight, good night from new york. neil: a freeze that does not put a chip in the ice could welcome i am neil cavuto. 60 billion off 16 trillion, i think they call that a rounding error off a rounding error. the president's move extending a two year pay freeze for federal workers, total savings $60 billion over two year, total debt about 2.5 trillion. allow me to explain this. it is like using a teaspoon to dig through an iceberg.

picture our debt as an is berg and the rest of us as the titanic. the spoon is not cutting it. far from acknowledging this the president bragging about the brave fiscal course he is charting, and letter to congressional leadership stressing we must maintain that fiscal course, does this guy have rocks in his head or just ice cubes in his brain? i am worry that president is talking up these savings at same time he is doubling down on spending, savings dwarfed by more spending. those are initiatives? someone tell me where anyone shows any initiatives. neil: not in washington. but in los angeles, where i see or of this. l.a. council considering not one but two tax increases, and most

minor of city pension adjustments, that is just to get by, all but giving up is serious spending cuts. gimmicks are easier, seriously addressing systemic spending problems, not. there has about washington national entitlements still stand. and it is as if we knew they are out there. but they are not a threat until the captain hears a bump, then he sees the ice, i'm telling you, same ice, sak same icebergo ship. if you are massively overweight, it is like cutting yourself to a half gallon of chunky monkey ice cream is going to make you any less chunky. simpson said we're all getting creamed, senator, we're going

nowhere fast? >> that was a rare monologue there, sharp as a tact, delightful, i was thrilled listening to it here in cody, wyoming, dazzling. neil: thank you, but, it's sad, i said what you said many times, i had the coming ma congressmanw york saying that debt conditions and recommendations were all over the map, not every agrees, better to leave them out of the debates because if is just folly -- i am paraphrasing. i say this is everything that senator simpson warned me about. >> the other thing is, the warning is come true, everything that president is doing now has not one thing to do with policy or reality, it is all to do with politics, i suspect now we have

30 million a day, something emotional, get people all juiced up that he did this stroke of generous, got rid of the latest $60 billion. that can go so many with as, they are not going to do a ric, they are doing everything possible to get reelected that means everything, and that is nothing about mentioning about things that have to do with thing that got us 5 democrat votes, 5 republican votes, and 1 independent, 60% of commission, they just have to do a plan. unless they do a plan, they will hit us between the eye. neil: when you hear congressman nadler tell me, look debt commission is not only idea, when i stressed it was only debt commission, he said, well, look, if you going to raise it in any

of the debates, you should raise the other ideas, i said why? you have one debt commission, chosen by the president, occupied by republicans and democrats. why not debate these points at a debate, he just nullify that argument. about what do you make? >> he is in the same league with jan schakowsky she was a member of the commission, she participated fully, she was there to sock the rich it seemed the thing was, sock it to them, the old "laugh ins whic"line, ls not just hear objects but hear who he says. neil: i know his plan, he relayed it to me, what do you make?

>> i said once, anything that earns over a million buck a year, let's confiscate everything they have. their yacht, the kamans, -- caymans, the 5 homes, take it all, and that would run the country for 5 months, who is kidding who? the interest a year is 250 billion, that is more than the budget of 8 federal agents, defense, commerce, i mean, if 1% increase in interest rates and you are looking at 600 billion in interest payments, and do you nothing it is a trillion in 2020. who is kidding who with these absolutely stupifying -- hope to thrown out to a poor old gullible american public. neil: it is choking us, we're

spending so much of what we make collectively toward our credit line, and finance charges. >> here is one for you, every day we borrow $3 billion every day, and every day, we spend a buck and borrow 41-cents. where are the people with the brains? we don't do bs, we do math. and that is -- and you -- we can get in a room with people for an hour, let them ask any question they wish, democrat, republican, lefts, rights, and they will list them, we will usually get a standing ovation, people are so sick and tired of pure guff. >> you are right, you and erskine both are putting it out

there i commend, what i do not commend is those in congress innorring what you put out there. >> you you're welcome, carry ond god bless you in your warrior work. neil: and saying it is time to stop the spending. >> do we want to stay on the path we're on? a path of debt, doubt and decline? or do we want to get this economy going again? by getting back to the people who are the nucleus of this economy. neil: barry sloan said it is common sense, you can only run off credit lines for so long, and business guys do not have the opportunity to make their credit lines like the government. >> we can't borrow money asz government has, we know that total debt is approaching $16 trillion, that is 25%, the

ryan plan wants to cut that to 18%, if but back to history during fdr times it got to about 10% of gdp, the government is is -- borrowing way too much money. and that is really what the electorate needs to pay attention to. neil: you raise a crucial point, when government confiscates money that is money that would otherwise be in the private world's hands or could be. it is strangling that. i think people miss that. >> they don't get it, and shame on the politicians for not being able to articulate that. >> 40 billion a year in interest. >> the scary part is we're in a low interest rate environment, and u.s. industry, now managing plans sheet is taking long-term liabilities and turn them to

short, that 16 trillion goes to 20 trillion. neil: a half point like that. leaves that aside. do your guys in the small business world, and women, do they say, this is why i'm uncertain? this is why i'm keeping my cash tight? my staff lean and mean? this is why i am not expanding? or is there more? >> neil, we deal with 100,000 business customers in our portfolio, we len money lend mod give them services they are holding back. neil: what would they like? >> a reduction in the side of government, in the size of government would put more money in their hands. neil: have you not told them to hold their breath have you. >> a few are turning blue. neil: what about regulations and/or taxes. >> that is problematic,

obamacare will put a cap on their cash flow. why would they spend any extra, whenwhen -- with that in the fu. neil: i want to remind folks, i know i obsess about this. but we're drowning in a big old national visa bill, we could barely keep up with interest rate charges. and as barry said we're lucky because interest rates are low, if they go up just a little bit, katie bar the door, the whole ship, ugly stuff, i will be on this like stink on you know what, because it's not fair, not right for us, our kids grand kids, it has to stop. neil: meanwhile. rnc now on hurricane watch, a storm is forming, it could hit next week, but now another hurricane. >> a man who will be the next president of the united states. >> god rest your soul, your mom

is still alive. >> put you all back in chains. neil: hurricane joe. coming to tampa. trying to steal thunder from republicans with a number of campaign stops there next week, we'll be there live covering it and you bet you, we'll be on biden watch, if they get bad, promotional shots will show me grounding. >> president could lose key date he based his campaign on. >> and hollywood moguls telling clooney on get a clue. after this election democrats could be seeing stars. my how things change. >> we'll have ga gasperino on facebook insiders trying to save

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neil: all right now the national urban league, selling nike, just don't do it, saying it needs to drop the $300 pair sneakers because it is too pricey, i say don't buy them, but nike has every right to try to make money off them. if you are my kid, don't think about asking for them, okay? they are speakers. i don't care if you walk bare foot. >> facebook stock is still face planting, even the company's cofounder is dumping his stock, selling 450,000 shares in last week. that is generally not a good barometer. charlie gasperino? >> this speaks to a thing going

on in tech investing, i think small investors should worry about. i was always very critical of a facebook ipo for a lot of reasons. neil: by the way, to your credit. >> i did not think it showed enough revenue growth, i did not like the way they hyped it. neil: you distinguished between them and google and promising one. >> first of all google is a growing company, and i did not like the way they sold it they hired this brunswick group, a pr -lobbies firm he was a pr for the white house, i thought it was too over hyped and all of the sort of reason, the financials, the other thing, if you look at early tech names, googles, that sold in 2006 i believe. excuse me 2004, the ipo. the investors those who put money in they left a lot more room for the small investors to

make money. they didn't sort of -- >> did any of them leave any money in the company? >> you continue looks like that -- yeah. i think -- >> 5 shares. >> right, a few bucks, but if you look at how they are structured issue the early tech names, the apples, the ciscos and microsoft, there of upset left for the small investors, they were all signaling they were going to sell. neil: is this going to chill the waters? a lot of average investors who feel they got snookered buying at the full price. >> i hope it does, it is about time, if you don't know the wall street hype machine, and you want to get involved.

then you know, you -- only thing i take ofins t offense to is tht investors were not warned, they were warned, i talked about it we wrote about it. neil: they may have been rashing theiwatching another financial channel. >> i will tell you there were people there that were cautious, that were talking caution. neil: what do you see now? >> i hope that stock goes to therthere are 12, i do not say t because i want people to get lose money, i say that because, one thing that we miss from the market, these days, is the notion of consequence to your actions. itf that goes to $12 a share, investors will know they have to stay away from these companies or understand what they are getting into. maybe a long-term play, do not expect to make a lot of money right off the bat, know your company, google was a big

difference, the sign eder eder - insiders there were not a tremendous amount signaling they were selling. the insiders were talking about selling. neil: is 12 a random number you picked? >> i think that is a good price or even lower, if you want to start buy, buy, but more hazard has been created when there is no consequence to risk. neil: i think this will put a chill on investors getting into the market in general. >> you know, don't buy hyped stuff, that was over hyped, thanks charlie. >> news corp is not over hyped. neil: do you remember this? >> their main goal is to create we'lwealth for themselves and

investors. >> they made a lot of money, but they devastated the communities. neil: cashing in on private equity. how fears of more pump pain is making the president -- e. boston. boise? same flat rate. alabama. alaska? with priority mail flat rate boxes from the postal service. if it fits, it ships anywhere in the country for a low flat rate. dude's good. dude's real good. dudes. priority mail flat rate boxes. starting at just $5.15. only from the postal service.

neil: t-mobile is teaming up app unlimited data plan. verizon and at&t scrapping their all you can eat plan. >> home sales are heating up this summer, existing sales rising by double digits in july compared to last year, prices rising but not that much, but prices and sales are still well below. >> and luxury homebuilder toll brothers reports best sale in 4

years. >> and meantime, the president blasting big capital, all private equity guys, but now we learn that white house work with one of these evil fat cats to-save a philadelphia refineo. if that went bust there is a better chance gas prices would boom before the election. jonathan hoagland said outrageous. >> the hypocrisy on behalf the obama administration, and president obama himself. he does not miss an opportunity to demonize "thize the investors own administration is doing backdoor deals, because it suits his own political whim.

this is hypocrisy. neil: i think if this were raised in a debate, president would say, i made a shoul issuen because i don't hate private k4r58, capital, what do you say? >> you know, he certainly cites the greater good. that is cronyism. we either have a free economy or we don't, what ended up with 25 million of pennsylvania taxpayer dollars, they suspend the eparegulations for one company, time and again he is able to put aside his own professed morals when it suits his short-term political goals, that is the essence of cronyism,

that is why so many people hesitate to put money in the economy because they know it is being run out of washington right now, not out of wall street 92 he criticized wall street. neil: he hits them up for money, because he needs money, he criticized private capital. he tries to have 3t both ways they just make it, transparent. >> they do, unfortunately, the blame would go to the free market. controls -- >> in other words, if this screws up. >> right, they will say, if there is all the result of bad timing of the economy. the very nature that this refinery is unprofitable was the result of the regulations, instead of fixing it, we had

more intervention from the government, more taxpayer losses and more cronyism, it is shocking, but part and parcel of the hypocrisy of the obama administration 9. neil: jonathan thank you. >> when mainstream goes lame stream, leave it on a guy saying we have to stop, now. you know what i love about this country?

trick question. i love everying about this count! including prilosec otc. you know one pill each morning treats your frequent heartburn so you can enjoy all this grt land of ours has to offer like demolition derbies. and drive thru weddings. so if you're one of those people who gets heartburn and then treats day after day, block the acid with prilosec otc and don't get heartburn in the first pla. [ male announcer ] one pill each mornin hours. zero heartburn. neil: for what it is worthy think jake tap sir right, we're all tapped out, it is time to what white houseomyish issues correspondent jake tapper was talking about we are not talking

about the economy enough, media may be chasing the wrong stories, and failing the country, he is right. so many journalists were enraged today, they know he is right. i like to think we're here at fox never stop talking about the economy. it is wrong to obsess overall of the money these candidates are raising more than the money we as a nation are spending, that is what tapper is tapping, this frustration, the things that are really important are those issues that media is missing. actually ignoring, not saying that mitt romney with his dog on his car roof is not interesting, but that this economy still being in the dog house is more interesting, i am not argue that president at hollywood fundraisers is not neat to cover

but more folks in the unemployment lines is more important to cover, this is not about red or blue, it is getting it right, that does not mean beat up the president or the guy challenging him to be president, how about debating both their economic arguments then decides who will be a better president, that is what matters, we should throttle those who argue this other nonsense, but that is just me, i am a nerd . >> so scott barton saying it is the economy stupid, and the media and the rest of us have to get onboard with that, this is ridiculous. >> it is. just look at will polls, the young voters. a lot of debts building up, that is a place that we should be focussing, as we look to kate tory the vote, that i -- kat cao

va vote. >> i will say this, i people thought it was a buyering field to be in, i reminded them, my point was, just because something does not excite you, does not mean you have an obligation to explain it to people in a way that does not intimidate or make their eyes glaze over, we are at a point where this is big enough, people's eyes are very worried. >> i think they are extremely worried. the nice thing is. the saves grace is, we have two very distinc camps, we have the obama camp, and we have a choice, that is one thing, in 08

that was not as clear, so people have a way to choose between two things, of course, the result between medicare and social security staying the same or fix it some way with the ryan plan, that is another choice to make. neil: you know, we talked about this many times it comes down to, it does not matter what side you are on, it is government, do you want more government or less government, some are keen on more government, that is fine, there are other people big on less government, that is also find, but it comes back to that as a central issue, not whether mitt romney has a dog on his car or for that matter who barack obama is palling around with this hollywood. we get back to that stuff, i think then both of the candidates are doing the public a huge service. >> i hope they do, now one thing that keep in mind, that i believe is that, a president can only do so much, he has this congress that is out there now that does not want to do anything but blame the federal

reserve for low employment and things like that, when is ridiculous, but the president is also at least hostage to economic cycles and winds of change, outside of their control, president will step in either way with a chance to make differences with choices. that is a great opportunity for either one. neil: you hit on another keen point, that is finger-pointing and blame game, i do not care who is to blame for the debt, president before him was not a great fiscal stewart. i am not interested in who is at fault. i am interested in slowing this down and fixing it, growing $ 4 billion a day, our debt, we can't keep going like, that those serious issues are side tracked by what a particular said of candidate said about rape, and what another candidate said about astrology, on and on

we go with nonsense, they are great press fodder, but throughout those debates, and just this latest one with a certain senator, we have added about 40 billion to our debt. >> right, and the debt is something that whether we're talking about it or not seem to be really the main thing this is affecting business, with regards do hiring and capital investment. that is really going to be key going forward, how to unlock that business risk taking to get them to go out and do that hiring and spending so that the economy really begins to grow, that is all we need is growth, that is not a bad word, there are other 4 letter words with regard to debt that are out there. but as long as we don't grow that is the problem, we have to get growing and get business confidence back. neil: i think even mitt romney a oiold dog would recommend the same. >> that would be cool. neil: scott thank you very much.

>> see you. neil: scott martin. >> a fox business alert for you, michael jordan raising big bucks for the big guy today. but movie mogul behind rain man and batman, no fan of the white house, coming right up. -[ taste buds ] donuts, donuts! -who are these guys?

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happy. >> well, i think that they are dis80 pointed idisappointed in , they expected more, just this president would be a magic man, somehow would cure-all ails, he was just a man, a first termer, he had not run a big business or companies, he not chase the -- face the challenges too goodwill even with hollywood he went silicon valley, a lot of people who have been doing fundraisers and supporting him have real questions, will there be change in second term, will it be more of the same, should they make a change. i think that issues are out there, and mostar ardent

supporters said that the first term was not the most stellar performance. neil: you know these guys better for i do, but you don't see them really stormin for the mormon. >> i think that is correct, the question is will they remain neutral or not vote. or endorse him. probably not. neil: why are they so monolithically as a group liberal? >> i think you know, not so much that, they are in the arts, arts are more liberal, they are more social relevant in the arts, you know grow into that volatilit et i don't think it is necessarily new york or hollywood but it is the people in that type of industry, i know for example, even myself, very physically conservative, and socially

liberal. have you that dichotomy. what is interesting, people -- that is a distraction, no one is going to vote for somebody because sarah jessica parker is holding a fund-raiser for him, you know, they are not dufus, but they are start coul, they ge attention of the public. they get on air, and news because they have the big events with the celebrities. so it always been that way, i was at sony, and every single republican or democrat would come through california for two years before the main election, i would have a lunch with them, and give them both money, and support both sides, we had to be institution alley equal.

neil: what did you make of that report all major media organizations gave to both candidates, why do you do that? >> you know, i think we're equal tunatuna, buskers, it has been proven that neither party is good. >> i think you cover your bases just in case. >> i think that is right. neil: i think hollywood much like other work groups, there is .001%ers, and general who might not run down your case. it is not a big deal where they pay 35 or 39-point 6%. to them it is like a whatever. it a very big deal to those just at cusp. there might be two hollywoods. maybe the one that not making

that 1% is beginning to bitch now. >> this is like an iceberg, they stick out with the george clooneys, and clint eastwoods, but that part under the water, all the gils -- guilds and crafters and workers, they are hugest part. you are correct, it is not monmonolithic that way, the scrn credit is a distraction with the big issues. it will tip the iceberg over. neil: peter, you might have a future in this business, peter gubber thank you. you. >> thank you. neil: not just the rich and famous, now the young are getting restless. i'll explain. @a

neil: i think generation y gave the economy an f, worker between anes of 19 and 30 are having trouble finding jobs, they are getting low-paying retail jobs. the same group that was giving the president overwhelming praise years ago, and we discuss, it might not be a matter of keeping the base, but as much could be a problem there well, as you mentioned study shows that young voters, were 30, are working more retail jobs, they are not high paying jobs. so, the bad economy is reflected on this generation, they were a huge support for president in 2008. it will be different in 2012. he will not have this base of

support. the question is, for the voters, will they not show up or vote for romney. neil: you know young people, in a dire straight 4 years ago, unemployment rate was lower for them. but it was still 9.7% then, over 12% now among this group. they are treading water could question is whether they trust either party or just stay home. if they stay home, then hope and change is looking hopeless and searching for change. >> right. so 4 years ago they were in a retail job, if they saw the president's message, and they believed it, he would turn things around, 4 years later, if you are still working in a shopping mall, selling t-shirts s it eye well the morsa lot hardeg polls and vote for change,

nothing has changed. that is interesting he was in ohio this week campaigning about student loan rates, that matters a lot to voters under 30. neil: you know, i do notice some crumbs, i notice weird stuff, but i notice the young people as pointed out. but what is going on in florida, among. 68% for president. african-americans were about 96% for president 4 years ago, a little bit less now, i think down to 9%, stil% -- 90%, but, u know, you bleed off enough of your base, the other guy does not have to win the base but it could be close enough. to florida 600 votes separate the winner and loser in 2000,

could we be looking at a situation like, that this turn from the base is enough to turn key states? >> i would not be surprised if we saw turn off drop, that would be index kate wher indicative. people were turned off by the president's base, i would not be surprised to see a turn down, 4 years ago features historic turn out. neil: what about turn out for the base on republican side? they have to be jazzed up to the poll, ryan i understand might have changed, that but doeny nammidynamics.>> this is a realg and enthusiasm dynamic for the republicans, they are excited

about getting barack obama out of the office, they are not too excited boo mitt romney, they are more excited about paul ryan. so we'll see over the next couple months how much that is, we've seen a series of polls over the course of this year, that show the republicans are generally more enthusiastic about voting this year than democrats, a very different electorate on other side, democrats are loyal, a different coalition from 2008. but not as eager to go to polls, but do they need to be? barack obama won by a landslide in 2008, now way we'll see a landslide in 2012. >> you are right, thank you very much. >> thank you, neil. >> 30 bucks a tow? not thi dad!