adam: thank you guys for joining me. melissa francis will be back eventually. we have to say so long. romney policy director will be with us. "the willis report" is next. gerri: tonight, hurricane isaac downgraded to a tropical storm. we are live in new orleans. paul ryan is ready to introduce himself to the nation. we have new details on what he's going to say. welcome to the "the willis report." ♪ ♪ gerri: to welcome everybody.

i am gerri willis. we have up-to-the-minute coverage on tropical storm isaac. as you know, it has been wreaking havoc on the gulf coast. the deadly storm making a painstakingly slow trip inland with major surges and flooding expected throughout the night red fox news anchor shepard smith is in new orleans with the very latest. what is going on there? >> if you are in this french quarter of new orleans, you would say we got a lot of rain and there was a little flooding. but if you were here in plaquemines parish or east along the mississippi coast, you might think you are revisiting of this from seven years ago. in fact, the plaquemines parish president said today that the flooding in his area south of new orleans was worse today than it was when hurricane katrina struck mississippi seven years ago. 750,000 louisiana residents are still without power. the storm has been very close to hurricane status.

you said painstakingly slow, and you are spot on. the storm is moving at 6 miles per hour. it is expected to drench the new orleans area tonight as the rain comes in over the next couple of hours. the storms velocity is expected to be felt into mississippi for the next 48 hours. in all of their years with storms like this, it hurricane betsy in 1965, locals say they have never seen anything drenched the area and away like this. numerous rescues in plaquemines parish throughout the day, dozens of people taken from their homes. a nursing home was evacuated a short time ago with governor bobby jindal on scene. across the state of mississippi, south of highway 90, which is the coastal route, flooding across two counties. in st. louis, mississippi, some homes are said to be underwater. a number of roads are impassable and impassable. wave one is out. louisiana is expected that people may not get their power

back in some areas for at least a week. the trucks to restore the power can't even go yet. in some areas, they are still facing winds so strong that it would be difficult for emergency workers to even get there. for a category one storm, this thing has sat in spohn for so long that the flooding has been ridiculous. in some louisiana towns come they have rain totals about 23 inches and counting. gerri, it is a founding. gerri: that is a stunning. this is the first big test of the levees down there. how did they do? >> the levees held up well. they didn't get a test that they thought they might. we had 7.8 inches of rain officially in new orleans. a little bit more at late-onset train. they say they can handle. the eye of the storm is still slightly south of new orleans.

that'll be another test for these levees. the tests are not over. in fact, they are telling people don't get out of your house is just because it seems like it's dry and not windy. the winds are coming back, and so is the rain. they haven't signed on it yet, it hasn't been handed into the teacher, but right now it looks pretty good. gerri: it has been fascinating to watch her coverage. did i hear you say do you have covered 70 of the last 70 hurricanes or do i have that wrong? >> i think 38. this is number nine in new orleans. as far as new orleans goes, it has done very well. the power never went off in this part of town. not here in the business district or french quarter. but just south of here is another story. gerri: we will be covering the damage and what has happened in the wake all throughout the hour. updating people on flood insurance coverage and what they need to know. shepard smith, always a pleasure to see you, sir. >> it is my honor, gerri.

thank you. gerri: for the very latest on tropical storm isaac, turn into our fox news channel. meanwhile, $1.5 billion. that is the latest total for isaac rampage on the gulf coast. joining me is doctor robert hartwig read bob, thank you for joining us tonight. you know, i think you and i have been talking about insurance coverage and hurricanes for seven years now. we just see these numbers get higher and higher. if the current estimates are right, they are going to be about the average of the flow of us is that happen every year, which is about 2.7 billion for this is to make about these losses and do you think they are on target? >> about $1.5 billion, hurricane gustav, that produced about $2.2 billion for private

insurers. you could wind up from a billion or two more from the national federal insurance program, a federal program. most people in the new orleans area have coverage through the program. but we found out that a lot of storms since katrina, unfortunately they have not kept in place. both in the new orleans area as well as in other areas. if you have wind damage, that is covered under standard homeowners or business policy. gerri: that is a headline. if you think people got complacent, we will have a lot of people paying out of pocket for this devastating flood and storm. that is going to be difficult for those people down or. i guess we just can't reiterate enough. almost everybody needs flood insurance coverage. it's not if you live in a coastal zone. >> will particularly in louisiana and mississippi.

you have rivers and lakes everywhere. the majority of people see the coverage, and if you don't have at this time around, you need to run out and buy it now. we are not over with hurricane season. gerri: you have to do it at least 30 days before as well. hurricane ike was the 16 billion. remember hurricane ivan? 1.58 billion. this doesn't really score with some of those. certainly not as big as katrina. but the damage seems even more widespread. how is the storm differ from others? >> it is very different from hurricane katrina and the following respect. we have not had the breaching of the levy. that created tremendous business and corruption losses in the city of new orleans. businesses could make it back on their feet for months. that looks like it will not happen this time around, and therefore we will not have the losses that we saw last time. that is good news. it looks like this event, while

it is slow right now from the city of new orleans from the state of louisiana will be able to get on their feet much more quickly than we thought before. much more quickly. much less expensive. gerri: if you have one thing you could say to folks, robert, but what they should be doing tonight, if they are in the eye of the storm would have been passed by the storm, what would you say about coverage? >> i would say based on right now, start to make an assessment of the damage. get ready to file your claim with your insurance company. you can call the company directly or call your agent and companies will be swarming the area over the next several days. gerri: it will be hard. some people don't have telephone service and you will have to watch for those pop-up agents that often visit the communities >> yesterday well. they will be in the area as soon as possible. gerri: bob hartwig, thank you for your help. the other major economic impact is the price of oil and gas.

the price for a gallon of gas skyrocketing nearly 5 cents to $3.80. do you believe that agreement that is just the national average. across the gulf, gas prices jumping 10 cents in early 24 hours thanks to isaac landfall. it is not just in the south. ohio is also getting hammered. cincinnati is up 23 cents per cleveland 17. columbus 18. many critics say it is all little hard to believe that prices, especially on the other side of the country would jump that much. can you say price gouging? oil production also hit. taking a hit of 94%. it was shut down ahead of isaac's arrival. today, the second-largest producer in the gulf of mexico, chevron, shutting down all production. the company operates for oil platforms in the gulf, which can bring in 285,000 barrels of oil per day. as a result from the white house

today repeating what has been saying. the option of releasing oil from the strategic petroleum reserve remains on the table. they were not ready to announce a move like that. still waiting to hear. coming up, should lobbyists and big banks be kept away from political convention? when we come back, as the cost continue to mount, it's not just homeowners that are paying up. taxpayers are on the hook to. i will break it down. so... [ gasps ]

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we asked total strangers to watch it for us. thank you so much, i appreciate it, i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money ? if your bank takes more money than a stranger, you need an ally. ally bank. no nonsense. just people sense. gerri: isaac may be only a tropical storm now, but the damage it leaves in its wake will still be at least a billion dollars. flooding will be a major cause of loss. that means we homeowners with flood insurance coverage are likely to get help. most of that coverage comes from uncle sam. and the national flood insurance

program. many of isaac's victims removing fema insurance program was one of the rare, nonpartisan issues or congress could actually agree on. legislators passed a five-year extension of the program and extended it for another five years. the program gives national flood insurance stability, but that doesn't mean problems are over. far from it. first and foremost, the program is deep in debt after hurricane katrina and rita are underwater to the tune of $18 billion according to a 2011 gao report. premiums for homeowners just not enough to make up the difference. the insurance program was originally set up to be self-sustaining. it has 17 funding extensions and almost went out of business completely four times. worse, statutory authority has had to be implemented to borrow from the treasury.

the gao says the financial hole is so deep that it is unlikely the money will ever be repaid. to top it off, the gao concludes with the program that is actuarially unsound and makes nonsense. the gao report had other bad news. the assistance is antiquated departments of the local, state, and national level can't easily share your documents or review old ones. i know this is hard to imagine, but apparently it is true. the folks at fema did not repeat the fact when we asked them about it today. the result of that management philosophy, getting something done is nearly impossible. according to the report, because many of the most processes or manual, the culture had been dependent upon people relying on personal relationships to accomplish tasks. the gao called for an assessment of the fema staff to make sure they are assisting and how some

people it needs to operate efficiently. in other words, the whole program needs a revamp. if you think poor fema is having problems because it is understaffed, no. the agency has grown. the extension passed by congress this summer address very little of these problems. it made an attempt, but addressing the bigger issues, not a chance. another can take down the road until the next storm and the next time, which will happen soon enough. that's what i think. let me know what you think. send me an e-mail at gerri@foxbussiness.com. >> coming up on "the willis report." our bankers getting a bad rap? financial institutions use to keep a high profile in the past. not this year. our expert explains why they are staying low-key nights. and he has become the gop's branding for conservative policy. will we get to see paul ryan softer side as he prepares to

give the most important speech of his career? also, all yours turn to ben bernanke. is he ready to take the plunge to save us? ten financial ceo weighs in. we are on the case next on "the willis report."

gerri: up next time you won't be seeing many bankers at this year's convention. the banking baking sheet is here to explain why in 60 seconds

gerri: things are certainly different than they used to be. big banks won't be feeling better at either of this year's conventions. my next guest says there is a very good reason for this. neil weinberg joins me. he is the editor and chief of "american banker."

>> there has been a huge change of the last four years. four years ago come the most famous thinkers in the country were at the democratic national convention in denver. gerri: rahm emanuel was partying with the jpmorgan bosses? >> right. susan sarandon, a stalwart type was there as well. they were also a mob with bank of america because it was investing in green technology. there is a real lovefest that existed between the banks and democrats have been. gerri: even republicans don't want to be seen with bankers, is that right? >> if you're running for office come you don't want to be seen with bankers. but there are other issues as well. of course from the republicans had been receiving a lot of money from wall street. at the same time, they don't want to be seen publicly in the banks have been having their own financial problems and they are not looking to drop a lot of money on these parties either. gerri: one of the issues being

seen with bankers as if americans don't trust anchors as the user. only 9% say they have a great deal of confidence. >> which is almost as bad as our confidence confidence in congress. gerri: that is interesting. that is very close. congress actually breaks double digits, which is nothing to brag about. let's talk about the factors that go into this, the lack of trust. >> doctrine has been a real divorce issue among the democrats who have been sponsoring it and the bankers. those who are the seemingly opposed. big banks don't like it because it could potentially cost them a break up or it could cause them to have to deal with regulation and to the smaller banks, they complain that this is targeted at the big banks are killing us. the democrats and the banks are totally at loggerheads over dodd-frank.

gerri: it's interesting to imagine that lenders stopped giving and stopped contributing to the political party. that's not happening, right? >> you are seeing more of an inbounds thing you've seen since the 1980s. namely, the banks are giving more of their money to the republicans. of course, bankers, particularly wall street trading types of attention their pennies. but it's been well a conference for the republicans. gerri: certainly what we hear is a lack of confidence in obama and money moving towards mitt romney. >> if you're talking about the banking industry and wall street, absolutely. they are not too happy with what has been going on in the administration. that is an understatement. gerri: and you for coming on tonight. always great to see you. >> think you've. gerri: coming up, we had today three of the republican national convention with a big night ahead. what should viewers expect the vice presidential nominee, paul

ryan, to say? and ann romney and chris christie. the other woman making headlines, utah congressional candidate mia love. you won't want to miss it. [ female announcer ] need help keeping your digestive balance?

try the #1 gastroenterologist recommended probiotic. align. align naturally helps maintain digestive balance. ♪ ooh, baby, can i do for you today? ♪ try align today. gerri: budget hawk or small-town guy? what side will paul ryan show in his speech and what appeals the undecided voters? let's ask robert gibbs of ohio and the democratic strategist. welcome pupils, thank you for helping us out tonight.

i want to start with paul ryan. a likely quote from his speech, he says so here is our pledge, we will not spend four years blaming others, we will take responsibility. congressman gibbs, this was a theme by chris christie last night and is continuing, do you think it will work? >> i think the american people are ready to hear what the facts are, spending is out of control, the massive debt. we need to have adult conversations. we can't keep kicking the can down the road like what has been going on. we have to be honest with them. i think mitt romney and paul ryan will talk about what they need to hear to be honest with them and move forward. we will have a frank conversation with the american people. gerri: i wanted to go over the results of a fox news poll with

you. the favorability rating 45% unfavorable, 35% we don't know them, 20%. do you think he is capable of getting people on the fence next to come over to the g.o.p. side? what do you say? >> i don't think that is really the goal tonight for him. 30% of the american people say they don't know enough about rummy to make a decision about it. i think the real important thing for this convention is not sort of push off torok obama so much, but to define what the ticket is about. and romney did a great job with that. governor christie spoke undecided, you don't want to beat up on obama in a harsh way. that could turn out and get them all excited, but won't turn on the undecided voters.

ryan has to make the case but in a positive way. i think his youth and vitality works for him, but look, the next day here and tomorrow and when we go to charlotte, this is really going to make the decision about whether romney-ryan really define themselves or not. gerri: and we still have work to do. joe brought up chris christie. i want to get your reaction. the governor from last night. >> we believe in telling our seniors the truth about our overburdened entitlement. we know seniors not only want these programs to survive but just as badly want them secured for their grandchildren. our seniors are not selfish. gerri: the governor went on to say he thought the case could be made not just seniors but all

americans some sort of sacrifice is necessary. is that an easy sell, congressman? >> i think mitt romney and paul ryan are. people 55 and over, no change, it will go on the way it is and we will have to look at the next generation and make changes to make sure the medicare and social security shift for them, the prices last year came out and said doing nothing insures it won't be there for the next generation so we have to talk to the american people and get it done and not take money out of medicare to fund new entitlements like this administration is doing. gerri: medicare is a big issue. democrats thought they scored big when paul ryan was chosen to be the running mate mate becausy feel he is tarred and feathered. other republicans actually changing this to their advantage? >> i think that'll be a fight

that goes all the way to the wire in november. the deciding issue could be the campaign. one of the things that happened, we will really only be on to tell the truth, both parties got us into this mess. not just the bush administration, it is everybody. and we are going to have to have a fight about how medicare is reformed, the president has his plan, ryan has his, both sides are looking at how they're going to cut. we will have this debate, and that is one of the reasons i was actually happy romney picked ryan. i actually think obama has a good plan, my friend the congressman i'm sure we'll think romney and ryan have a better plan. that is what we should have the fight about. and how we're going to address these issues. i think it is a really good debate for us all to be having. gerri: congressman, some of your congressman's discussions were

about how much he spoke about it. do you agree with mark >> we havhadto talk to the american p, mitt romney and paul ryan have solutions and we're putting those forward. as far as starting a frank conversation, we need to have how we move forward and provide opportunities for all americans. gerri: apparently tonight paul ryan will reiterated the promise of creating 12 million jobs within the next four years, do you believe they can do it? >> actually i think the cbo estimates there will be 12 million jobs created without the romney campaign or anybody doing anything, so i don't want to play the political game, but that is a pledge that the government estimates will be created matter who is president of the united states.

i did want to say governor chris christie did himself a lot of good showing he will be a player in the party for a long time beyond 2012. gerri: it was an inspirational speech, for sure. we appreciate your time, thank you for coming on tonight. now we want to know what you think. our question tonight, is chris christie right? are you willing to give up government benefits you earned? i will show you the results at the end of the show. a big night ahead, big, big, republican convention in tampa. here's a look at who is on tap to speak. the focus of the last convention, senator john mccain will speak about national security on his 76th earth day. following him, our friends florida attorney general, do not

miss her, she is dynamic. starting at 9:00 p.m. eastern timetime, former governors and former presidential candidates take the stage. tim pawlenty of minnesota and mike huckabee of arkansas. everybody is waiting for the 10:00 p.m. hour, condoleezza rice returns to the stage. she's expected to say president obama has created a chaotic and dangerous security environment. in mitt romney's running mate, paul ryan, will be the main attraction tonight likely to take the stage towards the end of the evening and he will not want to miss a second of that and you don't even have to turn the channel. tune into fox business at 8:00 p.m. and we will have complete coverage by neil cavuto. now a fox business exclusive, new internal polls from g.o.p. showing just how well that romney is doing in battleground states. the first indication is if he is getting a lift around the g.o.p. convention.

the exclusive details from charlie gasparino joining us live on the telephone. what are you hearing? >> visa details given by campaign aides to top fundraisers in tampa. in a private briefing occurring at 3:00 p.m. today, lasted about an hour and a half to two hours. here are some of the highlights from those inside the briefing room. we should point out these are internal polls, just before the convention so they do not reflect a convention bounce. what they're telling their people. showing essentially an even race nationally. with romney gaining momentum. gaining momentum in battleground states, states they believe are now in play. romney needs to tell fundraisers leading by 11 points. that is good news if it is true, but these are internal polls.

they predict interestingly enough a romney victory in wisconsin. that is paul ryan's home state, but big-tim the time for presida 2008. now here is the indication of how tight the race is, and the momentum shift, they are down by seven points in connecticut, that is a pretty blue state and if that is true, it is not good news for the president. it is not bad if you are mitt romney or paul ryan right now. romney aides say the upcoming attack ads, planning hundreds of millions of dollars postconvention that these will focus mainly on the economy and jobs and will not be purely negative in attacks. obama is a president who is way over his head. back to you.

gerri: to th do the republicansk they will get a bounce in the convention? are they satisfied with how it is coming off the public? >> people here are cautiously optimistic that mitt romney, remember what happened before he brought on paul ryan, the train coming off the tracks, nine-point lead for the president, looked like he was losing momentum likely showing a tighter gap. that is not what people are saying now. these internal polls are right, you believe what you want, but don't think these guys gain anything by lying to the fundraisers. it looks like the momentum has clearly shifted, it looks like mitt romney got somewhat belated bounce from that ryan.

gerri: thank you for bringing us that story. still to come, as wall street on vacation? by many investors seem to be staying home, and she may have been overshadowed, but my next guest brought the house down with her speech yesterday. the newest rising star the republican party. they're going to want to meet her after the break.

gerri: the question on monday, but last night everybody knew the answer. she is the newest star in the republican party and her convention speech last night is only fueling her rise. mia love joins me now, also a congressional candidate and mayor of sarasota springs. welcome to the show, great to have you here. you were well received and part of it was your personal story how your parents came to this country, tell us a little bit about that now. >> my parents immigrated to the u.s. with $10 in their pockets and they worked hard for everything they have. i remember on the first day of college i took my dad with me and he said her mom and i have

done everything we could to get you here today, you will not be a burden to society, you will give back and i've taken those edibles everywhere i've gone. gerri: talking about the values of hard work, the views of republicans in the party, tell us a little bit about breaking barriers because you are hoping to break one in congress. >> look, these principles, fiscal discipline, personal responsibilities ring true. they ring true for everybody. we looked in the speech trying to portray the america that we are and what we remember about this country and the direction we could be going in unless we do something about it and get our fiscal house in order. gerri: you want to get into congress and propel that message forward, obviously. the democrats say the republicans have a war on women.

last night and romney spoke on this issue, do you think she was successful in thinking just the opposite? >> i think she was successful, she was extremely successful at getting people to see mitt romney as the husband, mitt romney as the father. we know what his business background is, a successful business owner, he knows what to do to get our country back up on its feet economically, so i think first and foremost painted a picture of him of who he is as a person because you have to know somebody's heart to know where their principles are, what they're going to do instead of just the issues. i think she did that successfully and i cannot see anybody doing this without wanting to go and learn more about mitt romney and learning more about him as a person.

gerri: unbelievable, very positive, and yet our very own juan williams was critical. speak to mitt romney's wife, ann romney. the story she told about struggles, hard for me to believe. she is a very rich woman. >> first she talked about eating tuna fish, so i have to tell you she's irked they didn't start off as being wealthy. they work their way all the way up and that's what's great about this country, why are embracing that? isn't that what we want for everyone? that is what my parents hope to achieve for me, we want people to be successful, i want my children to be successful, i want every core american out there to feel they can go out and earn a living and be successful. that is what this country is about. gerri: that is for sure,

everybody knows they have a chance, if you work hard you can really go far. one of my reactions to the coverage was it seemed like people were really trying to appeal to those undecided voters saying here is who we are, we have many of the same goals, are you guys trying to open it up, tell people who might be on the fence to go with the republican party this year? >> anybody who is concerned about our debt and anybody concerned about the deficit spending, anybody can send a stifling economic growth, the time has come that we can s send the sidelines and let washington try and solve our problems. it hasn't worked in the past four years and it will not work unless we get actually engage.

gerri: appreciate your time. >> thank you very much, appreciate it. gerri: thank you. switching gears, fresh off of the legal battle with apple, samsung announced a new version of the galaxy phone or you di ve and a half inch screen is more narrow foot longer than the first version is a little different. running on the google operating system. they're asking a judge to ban a group of phones, some of samsung phones violated apple patents. still to come, my two cents more, another rough day on wall street as investors take a wait-and-see approach on cranky and bernanke next.

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. lending 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. gerri: september is the worst month of the year for stocks. will hi this up coming month bey different? coming up next.

gerri: in focus tonight, september's stock slump. the ninth month of the year doesn't have a great track record for the market. the s&p fell 7% for the month. so can expect more of the same? the ceo, should just put my

money in a mattress? >> absolutely not. i love looking back on history, since 1950 the s&p is down three quarters of a percent. it is the worst month of the year. i am cheating, but the year before that the s&p was up nearly 9% in september. the average for an entire year in one month. is there a lot of reasons we should be? sure, look i was going on on around the world. i am going to stick my ground. gerri: i think individual investors are spooked right now. i don't want to be in stocks, and that is a bad decision. i was kind of making fun, a lot of people do have trepidation. what do you say to them? >> it is tough. i have had several clients signed giving up on the market.

they have at least a decade and my question is what are you going to do with your money? they are really so scared they're going to cash. they're losing money with inflation but i understand the trepidation because of all the negative headlines but what are you going to tell investors? trying to time the market is extremely difficult because that investor wants to get back in. when the headlines are going to be at a higher price, unfortunately. gerri: let's talk about ben bernanke, people are expecting a ray of sunshine from mr. ben bernanke, will they get it? >> it is pretty much priced into the market. i am split with this. i think something happens with the fed guaranteeing the fed comes out with another round of quantitative easing.

i don't think that will do it because if he does come out, qe3 is gone, what everybody is expecting. there will be pressure on it. something big has to happen. i think the september meeting and the reason for that is it maybe a conspiracy theory is in me, they want to do it ahead of the election. gerri: that implies ben bernanke is doing the bidding for the white house. you believe that? >> i do. that is just my pure opinion. it will make him look good, making it a couple more years to come out of this recession. gerri: it makes ben bernanke look better, not just the white house. >> it is extremely powerful.

european central bank tied in, if you want two weeks, take two weeks. gerri: get ready for stimulus. we will be right back. [ male announcer ] at scottrade, you won't just find us online, you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar trades are just the start. our support teams are nearby, ready to help. it's no wonder so many investors are saying... [ all ] i'm with scottrade.

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