your coverage was the most impartial and thought out and fair. >> thank you. we are on the fiscal cliff now. we are not stopping.

[applause] gerri: chris, jay carney comes out a few minutes later anhe says, well, the president says he will raise taxes on wealthy.

so where is the compromise? >> the hope is that the compromise lies in a broader reform. but as you know, this mes down to chime in. you have the fiscal cliff. what democrats want to do really -- what they want to do is use this moment with maximal pressure to force through a deal on taxes that allows the 250,000 and above grateful backup to the clinton rate and then push through a long-term extension for everything under that. now, you also have the sequestration cuts for programs and kick it forward six months and try to make it part of his bigger broader plan.

gerri: republicans want to do is fix some of these loopholes that make the tax code so poplar as far as does lycos. >> you get more revenue because you are simplifying th code. the economy gets a boost, but maybe you cannot deductions for upper income folks. maybe they do end up paying a little bit more. the president still makes me sound out like he is talking about race -- rates.

gerri: if he wants to raise taxes, so be it, it will put us into a recession. and they're willing to go along with the administration pay the price for do you think that's the right interpretation of what is going on? >> not exactly. i think that yes, they want a president to take the fall. they are willing to talk about taxes. it's not tax reform, they are going to have a hard time getting it through the house. the question is for barack obama, is he willing to do it. is he willing to do it amid an across-the-board a tax increase if you really wants to play this

game. gerri: the leader of the house, what would happen without? >> speaker boehner and obama were close at once and they were doing the borrowing during the borrowing limit deal. but i would point you to this. he is inside the white house, calling on republicans to do this or that. that is not assigned time to do serious quiet things. this is how him saying i'm going to break you, republicans gerri: he actually said that in his seat. chris, thanks for coming on.

>> you're welcome to. gerri: now we have over norquist. is this a man that wants to wants to have a heart to heart and negotiate taxes? >> if you read about woodward's book on the negotiation, you realize how uncomfortable obama is with anyone not telling them how swell are right he i. anyone who wants lower taxes when you want higher taxes, there is going to be conflict. the president doesn't have the min in his personality for that. but he double counts $2 trillion

that is already reduce. he counts 800 billion. of course, that was going to end. money that was going to get spent, yet another terisk on the -- gerri: yo know, i have to tell you, grover, when it comes to the president's budget, it is certainly a motivating trading in the stock market. diminishing peoples for one trip -- four o. one kays. 401ks. will you release any information

about that promise? >> obama squeaked by with 2% margin at the presidential level, way down from 7% four years ago. republicans have the house of representatives. they were elected with a written commitment to their constituents, not to me. clearly they are committed to opposing his tax increases. gerri: grover, you're not asking my question. if they were to come to you individually, will you work with us, what would you say? >> the same thing that happened

two years ago. when the exact same situation would have been. holding his breath until he turned blue. the republican said, thank you very much, we're not going to raise taxes and the president signed a two-year extension. gerri: but will it happen again? you think we wilget anywhere on this or will we find ourselves flying over the fiscal cliff? >> obama has several problems. one is he doesn't want to throw the country into a worse economy and he's already created. he will extend the tax cuts for another two years. exactly what he did two years ago. the cuts in spending from the sequestration -- those will take it back. that is good for the economy because it is the only spending restraint. gerri: some people don't think

so. especially with iran right now in parts of the middle east up in flames. we slow down spending on defense, let me say that? >> first of all, it is a defense of the spending increase. everyone knows there is a great deal that can be saved. we had their pensions that were saved. there is a lot that can and will be saved out of the budget. that isnot his agenda. at the end of the day in the last election, he promised that he won't raise your taxes if you make less than $250,000 per year his promise, it is for one year

only. he does have his tax increase for the rich people and he is still $7 trillion short. that is his goal. gerri: wow. i don't know where that comes from, but that's fascinating. i need you to come back and talk to you about this more. this will be a hot topic for the next six-week period. >> absolutely. we can have an argument about the government's situation. gerri: here's our question tonight. how has president obama handled the fiscal cliff? has he got the job done, will

you blow it, or hassey kicked the can down the road? logons gerriwillis.com. >> by going over the fiscal cliff, a divided congress will hurt you and your kids when it comes to paying for college. will lawmakers get their act together in time? leader, more u.s. navy seals in hot water. fox news lis wiehl has the fox news lis wiehl has the shocking new details on theve l.

but because of business people like you, things are beginning to get rolling. and regions is here to help. making it easier with the expertise and service to keep those wheels turning. from business loans to cash management, we want to be your partner moving forward. so switch to regions. and let's get going. together.

gerri: not only is the u.s. about to go over the fiscal cliff, it is about to hit the bt ceiling as well. if congress doesn't reach a debt

deal, we could see a worldwide financial calamity. joining me now is peter. it's always good to see you. i just want to tell people, w have $16.2 trillion worth of debt. the debt ciling, 16.4 trillion. very little to go to reach the debt ceiling. do you think congress will extend the debt ceiling? >> the question is will the president let them. extending the debt ceiling is not that big of a deal. but the question is what price will the president juan? will he insist on a tax increase? if so, it's just like dealing with sequestration. >> and wants you to hear harry reid for a second. here is what he said about republicans. >> they have tried it before. to shut down the government, we are not going to raise the debt

ceiling. if they want to go through that again, fine, but we are not going to do that. gerri: these guys can't agree on anything. what you make of his comments? >> he is right that the republicans will insist on cuts. but the president will insist on tax increases. i cannot see how taxing job increases can make any sense at a time like this. this economy is awfully weak. imposing taxes to not be reduced at a time like this -- that's just not good. gerri: son's he took office, it has gone up trillions of dollars. what's the best way to get this done? you don't like raising taxes, but how do you go about the most expected way to get more money into the federal government. i hate to even say that, it sounds like a horrible thing.

but if the economy were to go, how do we deal with this? >> in the last year before the crisis, the budget was only 161 billion. now it's over a trillion dollars. only half of that can be justified more and more. the rest of it is additional benefits and programs and so forth that mr. obama, anbefore him, speaker nancy pelosi insisted on. why don't we roll back pull back to the level of real spending adjusted for inflation that we had when president bush took office. this is obama's deficit. it's not bush's deficit. 161 billion, we had all the tax cuts in place. thkfully, w have the prescription drug coverage. gerri: is that obama for anther four years?

what's going to happen next? >> we will either get a deal and there will be some tax increases, but real spending reductions or some of these onl reductions that the president likes to cook up, is he going to and the war for the 11th time? gerri: he scored twice. my real question was, what would happen to the debt president got elected? we have $5.6 trillion in the last administration, will we get another 5.6 trillion? >> i think we will get another five or $6 trillion. if we cut the deficit now about doing the things we need to do to undo the mess so the econo can grow, we will go into a recession. so once you cut the defici you lose it all right there. that is exactly what's going to happen.

gerri: the economy really matters. not just for the people putting food on the table, but also whether the federal government can operate in. the cbo has said that if we go over the fiscal cliff, it will send us into the reception. what do you see happening? you think that there will be economic consequences? >> if we go over the fiscal cliff, let's talk about $6 trillion in additional taxes and spending cuts. all ones. if that happens, we will certainly go into some kind of calamity with that kind of breakdown, we will lose our aaa rating. people will be willing to buy our nds. i think that would bring the perfect storm. yes, we would have a global economic calamity and it would not be a recession but a depression. gerri: i was hoping you would

say something that would be more upbeat here on this friday night. peter, thank you for coming on. we appreciate your time. well, a very big shakeup in the intelligence community today. david petraeus is out. he went to the white house yesterday to tell obama he was resigning. the reason is because he had an extramarital affair. late this afternoon we learned that the affair was with his biographer, paula broadwell. this comes just days before congress gets set to have a hearing on the killing of chris stevens in benghazi, libya. no word but that will still be the case. speaker boehner saying that obamacare is the law of the land. ccming up next, what to expect

with the floodgates that are coming

gerri: cod

gerri: former house speaker nancy pelosi and an analysis of obamacare. >> we have tpass the bill so you can find out what is in it away from the frog as the controversy. gerri: i never knew what that meant. now we are about to find out what is in the bill.

it is a lot now and a lot of you may not like what you see. the popular stuff like keeping students on their parents insurance is already a reality. but paying for the bill for the new entitlement, that was saved for after the election. first off, payroll tax raises up to 2.9% for couples earning $250,000 per year. president obama has already promised to raise income taxes on this group of people. this is on top of that. by the way, the end of the payroll tax holiday, that is separate. now, if you have the desire write up your health care costs, that will change next year. it will go to 10%. it will make you harder to do if you have a big health care problem. retirees are getting hurt you.

corporate deductions just goes away. in other words, if you are retired and get your health insurance from their former employer, it may not be around for much longer. then there is the 2.3% excise tax on medical device makers. the individual mandate goes into effect on those who don't have health insurance. and the penalty on employers who don't offer insurance coverage, that comes into effect, too. there are 18 taxe in total. also, obama raises taxes by 6 billion to pay for obamacare. 36 billion coming next year. 716 billion for medicare, what could ultimately be the last entitlement program ever added in this country cause we sure aren't going to be able to afford others.

finally, if obamacare is better quality care for everybody, that would be one thing. but many of my doctor friends they know, they worry that the law will ultimately discourage doctors from private practice. ushering in a draconian method for deciding what kind of care to deliver to people in this country. i believe obamacare will crush health care quality and raise prices. we can and we should do better. stillahead, after pouring billions of taxpayer dollars and failed green energy companies, obama wants to do it again. what to expect in the next four years from this administration when it comes to managing your money. i'm a conservative investor. i invest in what i know. i turned 65 last week. i'm getting married. planning a life. there are risks, sure.

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gerri: today was the first day of gasoline rationing in new york city and long island all because of hurricane sandy. gas rationing. drivers can only fill up every other y were put into place to stop the panic buying and it is borderline anarchy that was going on. long lines that took effect. you see a lot of calves in the line as well. governor andrew cuomo says it could top $50 billion and it would make it that second costliest storm behind hurricane katrina seven years ago. president obama is scheduled to visit the new york area next thursday to see the recovery operation firsthand. the definition of insanity is doing the same thing over and over and over again. and expecting different results. so how does this apply to

obama's next four years in office? the green companies baced by your taxpayer dollars? they just grow and grow. many of them are hemorrhaging cash by the day. others have gone bankrupt altogether. our next guest is you can expect nothing but the same under this administration. a senior fellow joins us now. robert, always a pleasure to have you on the show. we assumed that it was safe to bet that the president would be doubling down on his green debt in his new administration. i hope he takes a different path. because we have seen solynda and beacon power and a123 systems. it has been extraordinarily costly. i think a better path if he is

interested in green technology to reform the research and development efforts at the federal level. so that f there is some breakthrough to be had, the federal government can fund that. but clearly this venture capital model has failed. >> would in some private company have found it already? that seems most logical way to go. you said you don't know what the president will do. he gave us a sneak peek in his acceptance speech. >> we want our children to live in an america that is not burdened by debt or threatened by the destructive power of a warming planet. i look forward to reaching out and working with leaders of both parties to meet the challens we can only solve together. we have more work to do. >> well, i watch the president's speech and on global warming,

and really stuck out because what has happened? the iea, just a few months ago said that the u.s. has reduced its co2 emissions. why hasn't happened? because of natural gas. clearly, what will happen the next four four years, the obama administration and the epa are going to continue imposing regulations on the coal industry, whh will lead to more natural gas fired generation capacity in the u.s. but i think it is clearly also going to leave to more cool exports from the united states. gerri: so that is not reducing demand -- listen, here's what they had to say about this. current administration policies conclude the new cool lace plans. these have skewed the market against coal. you agree?

>> well, i think that is kind of the case. you have a lot of regulations in place that are putting cool behind the eight ball. further, you have natural gas in many parts of the country that is priced under coal. what is happening? the u.s. is going to be exporting more cool. last year, in 2001 alone, global coal consumption increased by 3.9 billion barrels of oil. that is equal to all global wail and when combined. the idea that the u.s. alone is somehow going to solve the co2 issue is fundamentally flawed and i don't know where the president is dreaming that he will be able to solve this issue. gerri: probably on hold. robert, i know we will hear from you again soon. thank you for coming on, have a great weekend. >> thank you, gerri you want as

the clock ticks, there is another group of folks that will be hit hard. i'm talking about college savers. many families will be worse off next year compared to this year. could you explain is the founder and publisher of finaid.org. what is the fiscal cliff? is the fiscal cliff? were we going to duplicate those budget cuts? >> one is it will cut things by 8% across the board. the pell grant in 2013, it will also be cut automatically by 8%. the american opportunity tax credit expires at the end of 2012 as well. gerri: it sounds like, and here are the numbers here, it could

result in a% cut in federal student aid. so clearly, people will see higher costs for college. how can they cope with that if they have to do that on their own dime and a camera money? >> well, they be disabled for college. start with scholarships on websites like fastweb.com. gerri: you definitely want to make sure you're saving. let's break this down. what is the impact on pell grants, federal student loans and college tax credits. let's break it down. >> the pell grants have been on an unchand basis for last two years. but they still face a shortfall would have just come from someone. you have to cut something to

retain the pell grants and that's probably going to be subsidizing interest on student loans, which gives you three quarters of the way and they might tighten eligibility on that so that fewer people will qualify. gerri: what about student loans? >> the subsidized stafford loan would go away and the 3.4% interest rate got extended for one year in the midst of this election, that won't get extended beyond june 30 because there is no election next year year's. gerri: gerri: college tax credits? any change their? >> the american opportunity tax credit will expire at the end of 2012. if it does not expire, we refer to the hope credit. 2500 a year or mmybe $1900 a year only two years instead of four. gerri: mark, thank you for coming on tonight. it's a pleasure to have you here. we were so worried about other

stuff like taxes, defense dollars, nobody thought about college students loans. thank you for breaking it down. gerri: a grim arket still ahead. seven navy seals. punish for consultg on a video game. lis wiehl is here with that story. story. stay here with us. 4g lte is the fastest.

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constant contact can help you grow your small business. sign up for your free trial today at constantcontact.com/try. gerri: classified details on the osama bin laden great. allegedly leaked in one of america's popular video games. defense officials telling fox news they are accusing seven navy seals s working as paid consultants. lis wiehl is your break it down. write this down for us. what happened and what do you think these guys are being unfairly penalized? >> what the government is saying is that you disclose this information. you sign a nondisclosure agreement. you violate a nondisclosure

agreement and in violating that, you gave information to this company that was really only something that should be known about. on paper, when i look at it, it looks bad for them. the government, the obama administration, they were all into this. completely opening the doors. gerri: you mean they gave people access of specialized information. >> it looks on the surface like that is one thing -- there was a

violation of a nondisclosure. but it is the same thing. >> all right, the defense department said you're going to get in trouble. i havescoured nothing has happened, and oracle records and so far it just has been from the pentagon. i hate to see this. they have worked so hard. but there is the ability to break it as well. >> it always makes sense to me. thank you for coming on tonight.

gerri: millions of people now playing video games on their smartphones. some find it a great way to pass the time. for every time you take the phone out of your pocket, the higher the risk of it is that it will be lost or stolen. it all depends on where you live. on tonight's top five, the cities with the highest rate of smartphones that. at number five, newark, new jersey. number four is long beach california and oakland california is next. and number two is seattle. a lot of smart forms there. and the number one hotspot for smartphone that is philadelphia. that is a shocker. across the country about 30 million phones stolen, lost or stolen and the most likely place is a fast food restaurant or grocery store. coming up next, the market has taken quite a hit over the last

few days. you will have

gerri: here is something that you may be wondering about. the dow has fallen nearly 5% and as a result, retirement accounts are taking a big hit. chad parks joins me now. he is the ceo of the online 401k. welcome back to the show. shell. people were just getting ready or maybe they had just put their toe back into the market.

finally they are getting back in. what happens? is this going to kill investor confidence all over again? >> in mind. they can't just blindly follow the herd. they really need to pay attentioto their own account and pay attention to what they are invested in. they really need to pay attention to what is their magic number. what rate of return do they need in order to secure their own retirement. a lot of people don't know that number. >> it's a hard number to come up with. i think a lot of people worry about that and there were a lot of answers in the marketplace. i think people have been nervous about this market. they don't like it, they have seen the electronic glitches and they wonder why should i even get that. at this point what the market is

doing is getting back in or should they be running away? >> there are three major things that happen. you can determine how much you can save and how much you want to earn in retirement. now come of the three, which ones are more in your control? how much you can save is in your control. what you can expect to earn or take take-out and retirement is someone in your control. gerri: but you don't want to be too optimistic. so used to cancel my clients3 so what i used to cancel my clients on what is he really need to have a plan in place that will require as little risk and exposure as possible either. that way you can sleep at night without having to overspend herself into an equity market which could be volatile. gerri: that is a tough stance. you can't just say, well, i'm going to be treasuries for the rest of my life. there is a bubble building that is often heard a lot of people.

you know, the average 401k balance right now according to fidelity. it depends on who you talk to. some people say it's less than that. not enough. people need more savings and in the market whereyou can't find a job, it's hard to set money aside. what's your advice to people who are looking for ways to? >> i tink one thing to know is that it usually doesn't take into account other retirement assets. so we hope that people have this as well. to answer the question, what can people do to save, you see. gerri: i see what you're saying. so do you have money not for new

shoes, but for retirement. it gives you peace of mind. that is the good news there. okay, we found our silver lining. thank you for coming on tonight. we will be right bak with our qution to the day. how will president obama handled the fiscal cliff? stay with us. [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start.

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the. ♪ gerri: earlier tonight, we asked with the looming fiscal cliff, how you think president obama will handle the ituation. here is what you told us on

gerriwillis.com. 58 percent said kick thean down the road. 36 percent said it blow it, and 6 percent said he will get the job done. be sure to log on to gerriwillis.com for online question every day. we love getting your e-mails die and we have not shared them in a while. here are a few. gene is fired up about election spending. a total waste of 2 billion. that division limit contributions to $1,000. companies or individuals. it would far short of the nonsense and the campaign of last about a month. great idea. as greg writes this about a looming fiscal cliff. it is not about compromise. the economy does not have feelings. it works or does not. even if both parties given it would not be enough. debt spending and taxes to increase revenue. we love hearing from you. send me an e-mail. that's it for tonight's "the willis report." thank you for joining us. don't forget to record the show