gerri: vice president joe biden says the white house could go after guns by executive order. and ed new warning from aarp with social security and medicare. will they be held hostage? welcome to the well as report. ♪ gerri: hlo gerri: hello, everybody. g i'm gerri willis. every night on this program we showed you the waste and fraudwt on capitol hill, the abuse in the markets, and the overreach l hill and the abuse and over reach of government tonight we have a doozy imagine if you came home to a letter in

the mailbox saying you are in violation of city code. get rid of the vegetable garden or pay a massive fine. my purse to gas say orlando city officials told them that are faced a fine of $500 per day. here is their story. jason, what happened in a nutshell? >> first of all thank you for having us. but we started a front yard garden for obvious reasons. we only had the front yard because of sun. that is just where nature dictated.

but it started with the landlord that lived 1,000 miles away to visit his property and complained and went back home. >> you own the property? >> yes. it is not condominium rules, said townhouses. here is the letter that you got. violation from the land development co has been identified code has been established to improve the character of our city. are you bringing down orlando? [laughter] >> understand how to take earth's that cannot grow to make a fertile brings down property value. gerri: we tried to figure out and talk to the office

of the mor and here is the e-mail statement quote they put the case on hold permanently and will not be fined or help to compliance that was originally issued under code violation quote. the city violated the law and we will give you fines but now they say no? why the turnaround? >> what did they say? we will put it on hold? gerri: is a surprise. they said the existing landscape code never contemplated food production like you cannot use it anyway you want. tonight they say this for the first time they have put

your case on hold permanently in you will 90 find or held to a compliance schedule. to using public attention had something to do with this? you are getting attention clearly. >> they have extended our expect -- inspection date in that mean they could undo itself permanently. why don't they just close it? our idea is i don't think it is over. we have given a new proposed code yesterday that they just announced and with the new proposed code we are in violation and the garden will once again get a new

violation. i don't know. gerri: and somebody told me i could not grow tomatoes? i would put up a sting. are people coming to you? saying this is bad? >> everybody in the neighborhood loves our vegetable garden. neighbors have broccoli and lemon grass. they are upset we have to remove it. >> been neighbors little girls planted the seeds and pick the fruit and play with the chicken. it is as much of educational outreach and increase our interaction with our community 100 fold. this is the second season. this has brought us closer to our community.

gerri: if you cannot grow a vegetable garden, i do you have any rights at all how to use your own property that you pay for? >> we pay taxes we have owned the land 20 years. it is our property. when they take our garden, what is next? >> asserts with food they slowly take away everything. it is not a hobby. gerri: it is not like it is marijuana. right? >> not surprising that a business show was the first national one to pick it up. it is about money we save thousands of dollars per year because of our healthy

nutritious organic garden. it re-read to a garage restore it would cost a lot of money and we get that for free. gerri: somebody has to tend the garden. not totally free. [laughter] let us know what happens. says the city really go away? keep us in the loop with what is happening. we're interested. i believe in property rights and desperate to know what happens. jennifer and jason we appreciate it. what do you think? should you be allowed to grow a vegetable garden in your own yard? of course. log on to gerriwillis.com. by next guest says a growing

trend in the country, the government continues to violate property rights. from the cato institute center for constitutional studies, is this an increasing trend, trevor? >> absolutely. codes and cities across the country how you can use your property. they talk about community what about the neighborhood? government controls how neighbors use property. that is not part of the american plan. gerri: can i control my own property? by and not doing anything harmful? no marijuana, not dumping chemicals bad for the environment, a growing

vegetables, how can that be something in violation? >> is a head scratcher. the municipal code is about political power. and right now stay at home gardening is on the rise so more cities will overturn the code but do we want to fight to grow our garden? gerri: it should be a given. more and more cases like this house are the courts responding? >> it is heartening. it is disturbing because property rights are a cornerstone of liberty you can say this is mine and you cannot say anything about it.

with eminent domain of use and the epa is a huge violator have been doing a pretty good job they have been slapped down to the epa because they declared someone's land a wetland in you cannot challenge this while be fine you $75,000 per day. gerri: we heard about that. i knew about them in the domain. good reasons and very bad reasons. can and should americans fight back? >> absolutely. politics is messy but one rule is they will find the easiest path to get what they want. there is the case next week involving a guy who had a permit the city said you

coulhave it but you have to pay $150,000 for our land. this is a big benefit if we don't stop them. politicians can use no tax revenue to get the land approved. gerri: trevor burrus comeback. i hope nobody comes after my tomatoes. >> with the american banking website how great is the threat? a new warning over social security and medicare. how much trouble are they really and? stay with us. stay with us. ♪

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gerri: if there is anything to be sure of at the wallace report you guard social security benefits. who can blame you? the aarp demand congress not touch benefits as it discusses the debt ceiling. there is said general agreement social security is not the most troubling program for the president calls it structurally sound but others maintain it is stable. but to academics from dartmouth say that may not be the case. they say the security administration under estimates how long they will live in under estimate as much as $800 billion short

and the fund will run out of money before the government even says with people ging up smoking and eating better that live longer and demand benefits longer. forecasting has barely even changed since 1935. 77 years we do it the same way. to ignore the future social security is a big mistake now spending $49 billion more of benefits and to cover the shortfall people age 65 and over will reach 80 million and 2040 social security payments will jump 70% in the decade ending 2011. it is a system that is broken and raising the

retirement age are tweaks that need to be made to see if congress has the stomach for it. what do you think? drop me an e-mail act gerri@foxbusiness.com. >> targeting your bank account? a recent wave causes the government to point* the finger. is your money saved? next. winning issues for the top of the list for the real -- reelection campaign. he fills the cabinet with all white men. predicting the collapse of the housing market into thousand eight will he be right about your stocks? the author of aftershock explnshy we should prepare for the worst. next. "the willis report."

a new threat from iran. why the iranian

gerri: is the rand targeting your bank account? hackers are backed by the iranian government behind the recent wave of american banks. eric, welcome back to the show. what is the evidence? >> we don't know. they have not officially acknowledged. the wall street journal picked it up and i wrote about it but they point* to

iran. >> if you are a big bank you are on the list. >> probably with this particular case not so much. it was intended to make it difficult to access. gerri: when did consumers see? if i go to the bank web site you could not get in the front door? >> like going to the branch you will not get to see the teller. >> they just block the doors >> is called denial of service it is well understood for almost a

decade. gerri: the cloud is a part of this? >> this is troubling. cloud service like amazon, microsoft. they are in the cloud with them large data center. they are computers for higher. you sell software to get a high capacity model. you now have to run a big web service but anybody can have an account with amazon or googol or microsoft. there are smaller companies as well. >> are they using technology against us? >> yes.

u.s. has been conducting the cyber war with israel against iran since 2009. we are attacking nuclear research with now where. in one case we caused us centrifuged to spin out of control and explode. gerri: we go after what is considered wrong and illegal but they go after the consumer personally. >>. >> golf tear with love and wear -- war. if you consider the fact we are at war covert iran has retaliated for the attacks carried out. >> the above the administration put out in order that declares

cyberspace functionally equal with warfare with the ground and air and cyberspace it is legitimate domain for warfare. covering this over a year-and-a-half, the logical problem is u.s. and israel have the undeclared war. >> but there is a good reason. it is a different kettle of fish. they care deeply. thank you for coming on. we appreciate your time. fox business alert. apple may introduce a cheaper i phone.

it speculates it will fight back against the interphone. investors don't like the idea. apple could lower the price by using a cheaper material for the casing. the "journal" says the new phone could come out this year or it could be scrapped. the countdown is on for another showdown. fresh criticism of the obama administration shaping up. details after the break. ♪ ♪ with the spark cash card from capital one, olaf gets great rewards for his small business! pizza! [ garth ] olaf's small busins earns 2% cash back

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>> i don't know if you heardear this, but the white house iswitn moving ahead with gun control with or without congress. vice president joe biden, who i the torch bearer for the administration on the gun issue saidt the president there is ans executive order for strict gun measures. joining me nnow is doubtlessmn holds equal director of public notice and republican strategist. al turn to you first, doug. what do you make of the president using an executive order on this topic, of all thin? ld doug eakin. >> would you be shocked? immigration, union rights,ng the immigration reform

issue. gerri: tyler. >> well, this is like mickey mouse band-aid. a compound fracture. blem.does not give it -- ge a >> this doesn't get to the root of thet problem. ns for people who are law-abiding citizens. this is not addressing safety or violent crime. gerri: you know, i guess you could run the nation on executive order. as doug was suggesting, but it is nothing i am in favor of. let's move on to a our debt and our nation's crisis with the debt ceiling. we default on february 15th. happy valentine's day. doug come -- doug, do you think we will avoid this or have big problems? >> at think the answer is

simple. we don't have a fight or a crisis over the debt ceiling. we have a fight in crisis overspending that causes debt. if the spending or cut and there was an agreement but place on the way to rein in explosive and -- entitlement spending and brought the debt under control, no one would even mention the debt ceiling. the key will be to focus on the real problem, which is the debt. acknowledge solution for anyone not living in budgetary fantasyland. make some progress on that. gerri: at think it's budget fantasyland for us. well, the senate has not backed the budget in 1,351 days, gretchen. come on. we are going to -- our debt is going to get downgraded by standard and poor's and moody's and everyone else, and we will have a sell-off of 2,000 points in the stock market, right? >> you're right. on top of not having a budget, we have also had $5 trillion worth -- five years worth of trillion dollar deficits which

is what we are heading toward. the four past years, and the cbo coming out saying we're headed into our fifth. gerri: unbelievable. tyler, to you. a poll shows americans have a higher opinion of cockroaches then they do congress. [laughter] gerri: i mean, think about it. >> it is not hard to see why. you have a congress and administration that is -- solutions challenged. they are not interested in the solutions but the gains, and that is all that the american public is seeing. unfortunately the people who really pay for other taxpayers and the people who go to work every day. they're going to pay for this continuous game -- [talking over each other] gerri: clubhouse somewhere, three or four people who are taxpayers. me and you and everyone on this panel. >> i know. the people in this city, they don't understand that.

they're cut off from the world. gerri: go ahead. >> ec these polls that say 7 percent of americans, we always ask what is wrong for congress. those americans. gerri: they have lost their minds. >> officeholders. [laughter] >> family members. gerri: now we have pictures of the cockroaches. very nice. if you're a new yorker, you have seen that before. i want to turn to you for a minute. one of the big things we have been debating is the number of women now work for the presidents. it looks like it is all fellows working for the president. that is not technically true. do you think the president has a woman problem? >> it seems like he does. this is another area where the rubber does not match the reality, just as it has on his spending agenda. but when it comes down to it, women have complained about the

access they have had to the president in this administration. they have also complained about it being a hostile workplace environment. i think the president to campaign to as being the candidate for women now has an issue with women. all talk. now we are not seeing him deliver on it. gerri: looking at all these people being put up for new jobs. they are all fellows. dino what is more, they're all politicians. you know, you may have disagreed with tim geithner, but at least he ran the new york fed. he knew the players, the wall street bankers, the issues. of the company's work. what is he going to tell us? i think it is rare for him to be in charge of the treasury. >> he has a great head of hair, which for i am calling from counts for a lot. [laughter] >> obviously has the confidence of the president of the portfolio, the treasury, the secretary of the treasury is

enormously crucial. and one would hope that we are going to get the that we need all the things we have talked about, the segment on entitlement reform, the gst, the growth pattern in this economy which is absolutely appalling. gerri: and the labor department, the leaders in that, the positions are opening up. it will be interesting to see if that woman is replaced by a fellow. thank you for coming on. great job. thank you. >> thank you. gerri: now the latest developments on the story we brought you yesterday. aig. now, the company itself will not be joining a $25 billion shareholder lawsuit against the u.s. government over the terms of this bailout. now, the suit, seeking 25 billion, was filed by star international, a company run by aig founder and former ceo, hank greenberg. suit says the government took nearly all the stock as part of the bailout without giving investors proper compensation.

never mind the fact that the insurer would no longer exist if it was not for the $1,802,000,000,000 we, taxpayers, gave the company, the biggest bailout of the mall. aig board refused to join the suit and made immense backlash. just the thought of it. let's of complaining, and the timing would have hurt them as well since the company is in the midst of a thank-you, america, ad campaign showing aig gratitude for being rescued by taxpayers. ed think you should say so. so far earnings season seems to be a popular one, but how long will the good feelings last for investors. that is the prediction. what it means for your investment. a battle in illiois going down to the wire as the pension crisis threatens the entire state economy. the latest from chicago coming up. ♪

gerri: pension battles heating up across the nation as ballooning costs continue to crush state budgets. nowhere is this more acute than the state of illinois. a massive deficit reaching 96 billion, and state legislators are not doing a damn thing abt it. is there any hope for the new year? ceo of the illinois policy center joining me now. thank you for being with us tonight. how bad is it an illinois? just how bad is it? >> worst in the country. $96 billion, the normal discount rate that people in the private sector use, 200 billion. another 54 billion in unfunded health care benefits for retirees and 9 billion on top of all that in unpaid bills that

have been taken on by the vendors to the state of illinois, so it is a big problem 263 billion in total. gerri: worst in the nation, and it is not the biggest state by a long shot. it's not california. governor pat quinn is office had this to say about what will happen in the future. by 2016, the state is on track to spend more on government pensions than on education. how can that be the case? that sounds crazy to me. >> it is amazing. in fact, we are the ones who put up that report and reported that $0.71 of every new dollar the state is putting into k-12 education is going into pensions and $0.80 per dollar is now going to pensions, and eventually that will crowd out all education spending for the pension payment. it is outrageous, and we have to reform the system. what we saw in a lame-duck session is there is no courage yet. the democrats have supermajorities in both chambers if they want to fix it, they have the power.

gerri: but they are not doing anything. >> no, they are not. gerri: you have ideas with the best things to do, starting with suspending cost-of-living increases for state workers. give us that soup-to-nuts thing. >> it's actually very simple have a fix the problem in terms of the policy solution. you have to freeze compounded cost-of-living increases which would eliminate half of the unfunded debt. number two, raise the retirement age to 67, like we have in the private sector with social security. number three, convert from a defined benefit, which is essentially a ponzi scheme to defined contribution. 85 percent of the private sector -- gerri: i have to do retirement. white of government workers? >> because government workers want the taxpayers and future taxpayer earnings to be at risk to fund pensions forever. these are millionaire pensions. the average teacher after a 30-year career its 67,000 per year and will get a little over

two and a half million over there lifetime. on the backs of working-class and poor taxpayers who are paying for it. it is unbelievable. gerri: what is wrong with the legislature? this is an obvious problem that will only cause the state more and more money going forward because the longer this exists the more expensive your debt is going to beat. why won't they do anything? >> they won't do it because they are terrified of the public employee unions. the largest political contributors in the state of illinois are public employee unions. and they get cut 70 percent of their money to democrats, 30% to republicans. what is bizarre, the media and some other groups and politicians are blame republicans for this when the democrats have a majority in the last session and a super majority now. republicans are saying, don't do a fake reform. do a real reform. they should be applauded. gerri: wow. unbelievable. come back any time. let us know how this goes.

an amazing story. frankly, playing out all of the country. as illinois goes, possibly the rest of the country goes. thank you for coming on. >> thanks. gerri: well, well, as states struggle with this public pension crisis housing is a bright spot in the economy. even with the recovery, some states are having a harder time unloading foreclosed inventory. how to sell these houses needing the rebound is not taking hold. according to the "wall street journal," the reason is, some states are nonjudicial and others are judicial, meaning 23 judicial states forcing lenders to go to court to initiate foreclosure which can take months, even years to settle. as a result, 14 of the top 20 states with the biggest backlog of delinquent mortgages our judicial states. that list makes up tonight's top five. in new york, the empire state, right where i am setting. nearly 13 and a half percent of all mortgages are not current. that is a big number.

on average it takes nearly 1100 days or about three years to of foreclosed on a delinquent borrower in new york. numb four, nevada. despite being in nonjudicial state more than 15 percent of mortgages are not current. number three, new jersey. another judicial state, facing a backlog of more than 60% of its mortgages. another nonjudicial state, mississippi, nearly 17% of mortgages are delinquent. the number one state with the biggest backlog of foreclosures is, you guessed it, florida. almost 1-and-5 mortgages and the sunshine state are delinquent. it takes an average of 858 days. it nearly two years. unbelievable. ironically, the state with the best record on foreclosures, north dakota with less than three and a half percent. judicial state. still to come, my "2 cents more" on another teacher fight. the dow is already up more than 2% for the first six trading

days of 2013, but will it continue? one of the authors of the aftershock continues gives us his predictions coming up. ♪

gerri: i your investments ready for the next financial crisis? important tips for protecting your ass

♪ gerri: heads up, investors. the next financial collapse could be just around the corner. two more bubbles have to burst that could send shock waves through the economy, according to our next guest with a solid track record of predicting the market. managing director for absolute

investment management and best-selling author of the aftershock investor, a crash course in staying afloat in a sinking economy. tell me what those bubbles are. >> well, the bubbles are the government that bubble and the dollar bubble. essentially a massive increase in borrowing that we have seen in the last few years. over a trillion per year, and the dollar bubble, which is a massive increase in money printing. those are certainly helping pump up the economy, but they will pop. gerri: and what happens when they do? >> welcome all of the others come down. if you look back to our financial crisis, we started pumping these things up big time, printing money, borrowing a massive amount. it helped keep the stock market up, real estate, consumer spending, private credit up, but all the bubbles come down. gerri: tell me what the dominoes are. all that debt out there, the fed's, all kinds of liquidity in the economy now. the bonds, bonds are expensive.

yields are low, low, low. at some point someone will decide, i will sell these because i can do better somewhere else. >> well, first, what is interesting is the fed has manipulated the market. manipulated the bond market, so it will try to buy the bonds, but it will come a point when that starts to scare people. more and more people get worried about the amount of money. a lot more concerned, and you do get inflation. the combination means that ultimately used to scare off investors. but at first, you know, the fed gives you a little bit of leeway, but it's like any manipulated market. it goes up, and it falls rather unexpectedly. gerri: you would think that we would learn from the dot com crash. how many times have we been through this. the housing bubble, housing crash. it happens again and again. is this the fault of the fed? something specific to the american economy? why do we keep having these bubbles?

>> we like to believe it. anytime you're making a lot of money, you like to believe it is for real. you may think it is a little bit over the top, but you hope that most of it is for real. the kind of all hope that the government can keep doing this forever, we know it probably cannot. if it could, the government can simply spend all at once and not tax and borrow the money and the fed would pile of bonds and we would be fine we would like to think that somehow some magical, and make it all worked at the end. gerri: you predicted that the housing market with crash. it's hard to remember. now we know the way back when people put the housing market could not crash. what was the one signal? maybe we can think about this all over again. what was the one signal you saw that made you think we were headed for trouble? >> unfortunately, it is not one signal. it would be great if it was, but it seems a little hard to tell. the crash in march of 2000.

the one signal there? even today it is hard to say. you have to be careful. you cannot time this perfectly. they don't ring a bell and the market is the top. will they don't when the bubble pops either. you have to be careful going into it. gerri: we will be careful, watching you to find out when it pops. thank you for coming on. it was a pleasure speaking with you. on to something different. the stay in business back in 1906. campbell soup register its trademark. you know that one. today nearly 100 million u.s. households consumed campbell's soup each and every year, and the cans design has not changed in 100 years. the inspiration came when the company executives, a big fan of cornell university red and white football uniforms, decided to use the same colors. sales account for more than 60 percent of the entire u.s. supermarket. the company tells us zero -- total of almost 2 billion cans per year, and the favorite

selections to match a canoe, title, and cream of mushroom. registered on the stay in business january 9th, 107 years ago today. we'll ♪ [ male announcer ] how do you make 70,000 trades a second... ♪ reach one customer at a time? ♪ or help doctors turn billions of bytes of shared information... ♪ into a fifth anniversary of remission? ♪ whatever your business challenge, dell has the technology and services to help you solve it. whatever your business challenge, we replaced people with a machine.r, what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7,

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♪ gerri: did you hear the story we have at the top of the show? a couple from orlando facing fines for grilling a vegetable garden in their front yard. as much as $500 per day. is that fair? should you be able to do what you want in your own yard? matt says this, if you own it you should be able to do any illegal activity you want. unfortunately the garden is illegal per city code. while many are ridiculous,they are a lot. john writes, why not. it is your yard. you're paying for it. we also asked on gerriwillis.com. 90 percent said yes, 2 percent said no. log on to gerriwil.c