reducing the matching rates than 85 billion limiting highway funding with expected highway revenue. 73 million with a voucher plan for federal employs health benefits for:just a minor adjustment is 2.$4 trillion of spending savings. not bad for those ideas that was concocted to get us out of the mess justice low the spending not to throw grandma off a cliff but make sure she doesn't get there or her children or grandchildren. because the numbers are so vague that the adjustments will be bigger politicians be to open their mind but

first i have to open their eyes. you heard about the consumer electronics show? the device that will kill you. what do you do when hit with bad publicity? there are specialist to deal with bad news. what about the big oil spill? can they help during a disaster? what does the business do when the ceo gets set? what about when a candidate loses? how much bad news is fake?

what do we want? when do one.? is bad news good news? >> "the business of bad news." tonight. john: when bad news hits what do you do when you're at the center of it? with a view to manufacture the of bushmaster rifle or manufacture the company that spills whale or the ceo gets .-- said? rohit bhargava and fraser seitel specializes in crisis management. rohit bhargava is the author of like economics.

you run bushmaster? >> it is a conundrum of sure they differ kept -- difficult was bushmaster the horrible tragedy in connecticut at the private equity company said we will sell immediately. exporting good said we will not sell them but bushmaster did nothing. first express sympathy. it is a horrible tragedy. then say they were never meant for these purposes. get off the raiders -- radar screen. john: but sales are up. >> why you try to express empathy and sympathy and humanity then get off the

front page. john: the bp oil spill? >> that is an example you start off with a talking head reading from the scripted line. nobody believes it. then when the companies realize there needs to be real action then you talk about it and they change. that was a bp. >> but they put a sputtering ceo knucklehead, tony hayward i want my life back. he said i want my life back that is why it bp is known as battered petroleum. he was awful.

john: that was better than the exxon valdez is. >> you have other factors. a different location and issues of people being drunk and a negligent. they did not say anything. john: i don't blame them. the media is hostile to business. >> not talking. they say we don't know what you do. >> we may be in trouble. >> but other people make the story for you. john: then fraser seitel will call me an idiot but public relations is silence grants the point*. now exxon has epilogues and talk to the enemy.

that is you and? to loosen edges -- is a much more communicative person because they learned valdes was terrible for their reputation. john: now they pay for commercials to say to go to the gulf of mexico. >> florida beaches. >> mississippian outdoors. >> louisiana seafood is delicious. >> come to the gulf. >> this is brought to you by bp. john: this works? i cannot believe that. >> pr stands for performance recognition. the key is action. are they cleaning the gulf? then they communicate. john: your book how puerto rico trump's marketing.

>> people don't believe commercials or advertising. john: except for hours. [laughter] so we say character. stand up. communicate what you stand for. public relations today trump's marketing. john: i hate bp not because of the willis bill but we are beyond petroleum for alternative energy. they are lying. is nonsense. >> as a result of the crisis and now they're known as battered petroleum. john: talk about apple. it is a big deal with a significant ceo and he get sick. >> if you tried to right the

pierre playbook based on apple it would be a complete failure. they break so many rules. did not talk about anything. openly hostile to media. and it works for them because they had enough innovation to get away with it. >> steve jobs was terrific with marketing but lousy with puerto rico. they refused to say how ill he was or what he had. he was the ceo. that was material information. he stayed alive with cancer long enough to build up his successor and build strength so when he died the stock did not go down. john: occasionally bad news can be good for business. like the tragic killing of

trayvon martin may have helped skittles. he only had a bag of skittles that was the scene of the protest that followed. >> marching with signs and skittles in honor of trayvon martin rallying wearing a hoodies and carrying skittles. john: skittles said they will not commented its import -- inappropriate to get involved. >> our condolences go out for all involved but we will not exploit this for commercial purposes. by saying that is precisely the way to do it. >> that is an example where a company over thinking that puerto rico gets in the way of word-of-mouth. there is no more powerful

thing than people talking to other people. john: after michael jackson and whitney houston sales went up sharply. michael jackson occupied the top three the week he died also more than 40 times the previous week whitney houston sold 600 copies than 64,000 the next week. >> all of a sudden people think they need to get it. there is nothing for the company to do. >> they want to buy when the star dies. they sold the movie rights, the musical rights, they made half a billion dollars since his death. the have to market that be sensitive that they cannot look empathetic.

john: and on the story of how puerto rico began with john d. rockefeller -- rockefeller 1914. there was a man named ledbetter he realized if he had a press release th media would report to on what he said. what he suggested to rockefeller was carried a bunch of times in your pocket and hand them out. we will make sure the photographers are there. then they will not see you as a man who takes of bubble bath with cash. john: today they would. >> it is a much different environment. >> they are more parsimonious today but he also said tell the truth because sooner or later people will find out.

that is still a modern day public relations. public relations. >> 100 million people will

[poignant music] woman: my father taught me a lot about life without ever saying a word. when i was a little girl, my friends were all just like me. his never were. - hello, hello. - didn't you bring them, george? - i thought you were going to. - no, no. i brought them last time. - you are right. [laughs] i forgot! all right, all right. woman: i used to wonder, why would a jew, a christian, and a muslim ever get together? both: it was him! woman: and then i finally got it. they had a lot more in common than doughnuts. - ♪ love can build a bridge - ♪ oh, love and only love - ♪ between your heart and mine ♪

- ♪ between your heart and mine ♪ male announcer: a message from the foundation for a better life. john: 100 million people will die because of global warming. according to a recenstudy of an environmental group. for 18 years of low-cost over $100 trillion. the report got plenty of news coverage. 100 million deaths should. are we going to die? yes. probably not from global warming. bjorn lomborg worries about air pollution and global warming but says the coverage is junk science? >> it is and very harmful.

it tells us 5 million people will die every year because of global warming. they fail to say it has nothing to do with global warming. just the 3 million people was from indoor air pollution. if anything it is the opposite. lots of poor people in the third world burn cardboard or dong and they die from burning fat inside their houses. maybe give them cleaner fuels our fossil fuels there will be better. they tell us the wrong story and the wrong solution. john: the particulates kill people. global warming is theoretical. >> they say cut carbon emissions to help people

dying from air pollution. no. don't burn down inside your house. we don't think of it because it was 100 years ago we had dirty fuels. john: in the west. but they pander to talk about the big storms caused by global warming. here is out for. >> this storm was related to global warming. the second ones in 100 years storm within 14 months. john: 2012 was below average the hurricanes go up and down. >> globally with hurricane energy index the lowest since the late 1970's. it is partly reality but if

you will help future victims of hurricanes cut carbon emissions. no. the reason why you have hurricane katrina and hurricane sandy is they were unprepared. it is better levies or making york more prepared. not cutting carbon emissions. john: and letting people prosper to move away. last year headlines screamed genetically modified foods caused tumors in rats. it looks like he eight a tennis ball. but of ofhe kinds of rats usually develop tumors 90 percent of the time. >> they said we gave them

genetically modified foods but they forgot to say with normal food there were also developed a tumor. it is irresponsible. but it focuses on the wrong solutions. john: leading some countries to reject it hurting the pork people. "newsweek" warned us the end of casa social unrest could explode in china. if we want to keep eating pasta we have to take aggressive action. it seems like a joke. >> you can also not believe the story which is ridiculous. >> they do have a grain of truth that fundamentally wheat is the most heat intolerance species.

that is true. their word as temperatures rise we cannot produce wheat. we have seen that over the last 30 years it is not proven. temperatures have risen because we are good at that. farmers are smart. better varieties, more irrigation with pesticides and fertilizer. we will save 40% increase of four major grains. pasta is safe. john: we will not die from global warming but "newsweek" died maybe that is okay with their bad reporting. bjorn lomborg. what if the dister bonkers are right? and bigger storms and more pollution? are you prepared? those in in "the business of

those in in "the business of bad news" are prep

man: constant tingling in my toes. woman: i had double vision. woman: they said, "you have multiple sclerosis." man: i kind of had to get a grasp on reality. man: i had to adapt and change very rapidly. woman: i had to learn how to drive with my hands -- yeah, that was interesting. man: a symptom may cause you not to be able to do that anymore, and at one point, i was able to do any of those. man: since i've been cycling, it's definitely helped my walking. woman: it's a fantastic opportunity to be working together with a common goal of curing ms, and sharing is the key.

john: bad news is bad news. but and not for our next guest. aton edwards runs danger shield offering your e emergency survival plan. disaster resistant home-building and janet nelson selves disaster survival supplies. >> freeze dried supplies and water storage. >> business is good? >> right now. 2011 was the best year ever. >> because of the tsunami and he the earthquake. john: use selva mre.

meals ready to eat. why can't i buy a can of food? this is gross looking. >> it taste better than am looks. the emergency food is survivable. calories. nutrition. the military use it. john: foldable shovels? why you need this? >> kerry ability, storage, useful for many situations. ice. john: you go beyond this to give personal instruction? >> i a train people to deal with the full range.

they have to have the training. john: $120 per hour? >> more if you are a corporation but it is not easy to do the you can just learn overnight. john: "national geographic" channel has a tv show called "doomsday prepper" but you by someone how to escape manhattan in case of the disaster. first to have a bicycle that make sure you have your air deterrent. >> move out. >> forgive me. i hate this. it scares people to death. >> at the end of the day people have insurance for

their cars, homes, but no insurance for dealing with a disaster. john: you have your bare deterrent? >> you will use it on me? [laughter] if it will stop a bear it will stop a human. john: this "national geographic" show people wearing gas masks. what kills people as a house fire, falling down the stairs, driving recklessly recklessly, promiscuous, dri nking too much. if you worry about thisou cannot worry about those. >> but the reality is people need to be reality for disasters. john: this is something else that you sell? >> also a kit for people's

cars. it is wonderful there is food and water that is kept up the proper temperature. >> this is a five-year shelf life for the water. john: what is it with a bottle of water? >> between one and two years. john: the use of a close stick that you break and shake? what is wrong with a flashlight? guest: the batteries wear out. john: so does this. guest: after 12 hours. john: after something happens you see a pickup? guest: before and after better to be prepared than scared. john: when i get scared i

think my many will not be good. i was told to buy junk silver dimes and quarters made before 65. then when data cash machine will not work you could go to the bakery with a dime then they will sell you a loaf of bread. >> be realistic. john: you have spare deterrent that is not realistic. >> hitting the wrong streets at the wrong time you better defend yourself. silver and gold? you better learn how to grow a tomato. people need to eat and live. prioritize. john: what is on your wrist? >> this is my survival kit

everything that i need to survive. little tiny lights, tools lights, tools, pens, compass. john: your life is diminished to carry this around? >> people carry technological devices. i patter i pied. something would happen or emergency then we have all of the gear. john: i have a watch. it probably will not happen. >> it might. john: thank you. >> you cannot eat gold and silver but you can eat stored food. [laughter] when bad news hits, famous people called the hollywood

[beep] [indistinct chatter] [kids talking at once] [speaking foreign language] [heart beating] [heartbeat continues]

[faint singing] [heartbeat, music playing louder] ♪ i'm feeling better since you know me ♪ ♪ i was a lonely soul, but that's the old me... ♪ announcer: this song was created with heartbeats of children in need. find out how it can help frontline health workers bring hope to millions of children at everybeatmatters.org.

>> the most potent cancer causing agent in our food supply and who is the most at risk? children. john: this scare that's educated me. when 60 minutes ran the story i believe.. environmentalist said the chemical keeping apples fresh killed kids. so apple growers lost billions. mom sport out apple juice. there is no evidence that even with the chemical are good for you. today the water may be fine but you may need to worry about the bottle. john: it could have a chemical that activists day -- say could cause all sorts of problems psych

hyperactivity. another damages kids livers and kidneys from school supplied -- supplies. julie gunlock as young children with the independent women's forum what did you find? >> 1,000 studies said bpa is safe for common use. it is vilified and people say chemicals are scary. i will listen to what consumer activist organization says. there is no reason for it. john: what to the consumer rights groups have in it? >> money. they still fear. news sells. not just the organization

but the mainstream media. john: the national resource defense council gave us the scare over the apples now have $185 million of assets we could get the bpa out of the baby products spinet that there is a chemical that is dangerous and we will look out for you that the chemicals are scary. they do not even meet their response. >> now it is banned? >> it generates a number of headlines in the public is scared to demand regulatory agency follow the problem. john: they said based on the preference of consumers did

not reflect the concern for safety of bpa. >> the funny thing is many governments have certified the safety of bpa but with public pressure they bay and that all the same. john: this is bpa free. >> once i had children there are so many things i should be afraid of not a real things but my garden hose and the baby bottle and it looked absurd their realized many claims are based on junk science. john: even in campbell soup will phase it out they say they have to respond. >> this is an example.

campbell soup does not have an alternative. john: it does stop botulism that does kill people. >> know they're under pressure to phase out so imagined how much money they are spending on research and develop -- research and development instead of expanding there base other than finding a chemical that is safe. john: another chemical that is found in school supplies. causing liver damage? >> every year when school starts you will see the reports. killer backpacks. the cbc said the only way you could get salivates into your body a trace levels if you consume them.

if your child is eating their binder or backpack that is the concern. until they either did you do not need to worry. john: even then they have to eat a lot. julie gunlock from the independent women's forum. what do libertarian's do with bad news? what about celebrities when they scrap? >> she called 911 on christmas day. ♪ [ male announcer ] how do you turn an entrepreneur's dream... ♪ into a scooter that talks to the cloud? ♪

or turn 30-million artifacts... ♪ into a high-tech masterpiece? ♪ whatever your business challenge, dell has the technology and services to help you solve it.

i look up to a lot of the older heads, you know, the innovators, the heads of the art movements of the past. they kept it really edgy, and, like, a lot of the latin american muralists and the latin american artists, their styles are very unique and new to their time, you know, somewhat controversial, but that's who i look up to mainly. personally, i'm very excited about going to college. it's something new, and it's something different than what i'm used to. i'm definitely going to be a little out of my element, but that's what makes it so exciting is that, you know, it's something fresh. well, there's so many opportunities that i think

i could miss out on if i didn't go, you know. getting into college takes planning and vision. you know, it's just like when i take a brick wall and turn it into a canvas for my art. painting's helped me realize i've got what it takes. john: if i got caught shoplifting, arrested for assault, a starting cocaine i assume that would hurt my career. lindsay lohan did those things but is still working and just played elizabeth taylor. rules for hollywood are different. power bright man understands that and represents performers including the show special correspondent kennedy. you have noticed bad news for normal people is okay

for celebrity is? >> i assume lindsay lohan did not have to sign a morality clause but charlie sinn -- charlie sheen did. john: he lands a show on his own. >> no embarrassment or fear. >> no. he is winning. i ended stand by bad news is profitable. is entertaining. of i was slapping gypsies i would not be highly employed but lindsay lohan? playboy or elizabeth taylor on lifetime they know they will get tons of publicity. people will watch. john: howard you are called the spin doctor? you try to spin for the

better? >> i like that comparison. someone comes to me i have a problem. it is my job to do the test and ascertain if it is a true crisis or just a controversy. it is a damaging or something to blow over? that is the doctor comparison. john: ♪ if you were gay your career was over. >> i think that is true. i am gay and i have been alongside people when they come out. we have openly gay people on news channels and have gotten beyond that. john: rock hudson kept his sexuality secret spinet they bush and send them to brothels.

>> but what do you think they would do when they got in the room? [laughter] john: a few things and.you punished. >> hate speech. >> mel gibson and chris brown who beats up his girlfriend. baby within 1 inch of her life. he plucked her in a hospital record sales are as high as ever. and they're back together. >> tim kerr negative yen married to a man then got pregnant with another man's baby by her husband is the presumed father he could make the many even though she's done to am making

15 million offer from with -- wedding. john: is that really your last name? >> i worked with the man named paul flat. [laughter] john: the idea acting out guesswork is now well-known enough now there is that parity video with former child star. the former cruddy kid. he is 48 so the way for ranges in intervention. >> we are worried about you. your loved ones are here. we just want to talk to you. >> my publicist said do not be seen with him. >> he is not an alcoholic. >> if you were a degenerate?

>> it is not that bad? >> let me say paris hilton was discovered in ways that would ruin people's careers 20 years ago now they make tens of millions of dollars. lindsay lohan does not have a good career now. she had a much better career before. she is considered quote mack uninsurable quote. her movie with elizabeth taylor did not have good ratings. she was a movie star now doing cable tv. she has high legal fees. charlie sheen may have landed on his feet quote-unquote but he had the best job on tv. the highest-paid actor and i

doubt he matches that success. there is a price to pay. everybody has their own dna. people have controversy and come out but some are ruined. john: 3 million people watched that video is true. tom hanks, a dental washington, a tailor's with. >> justin bieber the biggest in the world allegedly doing womanizing but with just photographed smoking weed. what does he do? >> kennedy, a smoking lead with 18 yolk's find one that has not. >> i am all for legalizing marijuana.

john: how the media makes bad news worse. why

john: we in the media obsess about baddnews.

it is our job. we'll have to carry the -- cover the plane crash but if it doesn't hit the studio that is not news. today thousands of plane lands without smashing. it is not news. nobody is out by that back fence gossiping about who was being faithful to his spouse. news coverage distorts life. people think there is more crime and suffering than ever. but people live longer. around the world fewer people are hungry. the divorce rate has fallen in america also with teen violence and teen pregnancy. then shooting of connecticut make us think kids are in more danger but it is the opposite. america is safer.

nice is not news. seven point* 8 percent unemployment rate is unusually high. but that does mean 92 percent of americans who want to work find it. entrepreneurs overcome stupid government rules to create jobs. 1.8 million last year. not be enough to keep up with population growth, but still despite the terrible politicians and crazy regulations, an entrepreneur is did create almost 2 million new jobs. real bad news. the national debt goes through the roof. i hate most of what politicians do. when it comes to what matters, a family, friends family, friends, a house, what you can do and where you do it, it, foremost, things are better. i should keep that in mind

when i cover politics. i see bad news. minute romney offered big government republican as some one candidate attracted thousands of passionate and people of the rules say nominate candidates must submit a petition so they had six dates with the republican leadership change the rules to say he needs eight states so they could not even vote for ron paul. he was done after the primaries. there i go again. only 2 million votes? i should be excited to million americans voted for freedom, a sound money and peace.