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>> republicans sharpening their budget knives. democrats just licking their political shops. frankly, we don't know what all the fuss is about. ♪ welcome, everybody. i'm cheryl casone. republicans planning to outdo paul ryan with a budget blueprint that has democrats crying. we are wondering why. this is a ten year plan. in the lot can change into an years.

does look at how things change the last ten years. ten years ago barack obama was unknown. in years ago lance armstrong was like to. in years ago there was no iphone. i think it was called itunes. a lot has happened in ten years. it makes you wonder what will happen in the next ten years which is making our next guest wonder if the fuss over these cuts is all for nothing. to lori rothman, steve more, and taught on a very real and scary calendar working against all of us. no, i have the feeling that you have a lot to say about what is not going to happen in the next ten years which will probably be this budget. >> well, you know, when i first came to washington in the early 1980's i never taught was in the reagan white house at that time. the convention was to do to end a three-year budgets and then it became for year end and five-year. now we are doing these ten year. they come up with these fantasy numbers. they projected they are going to cut spending in six, seven,

eight, nine, ten years from now. the predictions never come true. i think we ought to get back to the idea of just budging and maybe one or two or three years. you know, the projections, as you said, you cannot have any idea what the budget will look like continues. just one statistic to demonstrate that point. you go back to the year 2000. we had a $200 billion budget surplus, and most analysts thought throughout the next decade we would have surpluses. in fact, we ran a 6 trillion in debt. cheryl: you know, if you look back over the last ten years and look forward to in years, i think most of us can agree, we don't trust what congress will duke. approval ratings and now the single digits. we are expecting them to come up with a plan that will balance the budget. >> this function is the name of -- the name of the game. kicking the can is the best way to describe what happens. think of the economy and where it could be in tin years. unemployment, the rate of inflation with the federal

reserve policies, we might be looking in a significant threat of inflation. so in the amount of budget cutting that they do, the value of dollars cut will be diminished. cheryl: she has a great point, and there is another issue. in fact, if you look at overall what congress can are cannot do in the next and here's, they're going to change their minds. we have seen that with the fight over entitlement programs. everyone comes in saying there will address medicare, social security and medicaid, and they never do it because reelection comes of senate and later. >> well, in fact, we should be celebrating an anniversary, popping champagne corks because it was exactly 12 years ago tomorrow that alan greenspan testified before congress and said the biggest challenge this country has in terms of fiscal issues is that the budget surplus is getting so large that we will have no choice but to buy stock in private companies.

twelve years later it turns out he was partly right. we all stocking general motors. the budget surpluses, as steve mentioned, never added up. things change, of course. we could not imagine the iphone, the internet, the long underwear. some things don't change in the the behavior of politicians. one hundred years ago mark twain city's top politician with his hands in his own pockets that does not change. we need to put handcuffs or manacles or something of politicians, some discipline that they cannot read aloud of. cheryl: i wish that worked. we have seen so much discipline and out of our in washington across the border command at the same time i looked at the issues facing the country right now. it is all about that debt. it keeps ballooning. we will have this debt ceiling

fight which will begin in a few weeks and then we will be back to square one. what we have faith in these guys? >> well, let me mention another statistic to give emphasis to this point that they cannot predict with these deficits and the spending will be like. you know, on the interest-rate issue, if we just have a 100 basis point increase in interest rate, that adds $1 trillion to the debt of the next ten years. these numbers are incredibly sensitive to changes in the economy, employment, interest rates, inflation. but when congress cannot find another. that is the problem with these budgets. it emphasizes, start to make long-term changes in the law with respect to the way these entitlements work. and if you do that you can change over a long time the direction of how much these programs like social security, medicare, medicaid go into debt. [talking over each other] >> i just wanted to come in

here. they would not even consider another ratings downgrade last the medium term budget was not satisfactory, so they're not even looking for a short term. they're not even concerned about the timeframe. >> look, we can talk about all the unknowns. we do have something that our not -- something that is known. americans are getting older fillies 76 million baby boomers, 10,000 a day or so going to retire. number two, we will have to pay off the debt we're racking up. we do know that we have a problem. no, steve's point is well taken. in fact, as he recalls, it was back during the early 80's 30 years ago that ronald reagan when with alan greenspan and congress ted gets social security on a path that will leave it away from going over the cliff. that was a good long-term plan for which reagan, of course, never got credit. but he has saved us overtime trillions of dollars. some long-term planning intendments is absolutely necessary. cheryl: want to bring in lori,

and this is a key point. talk about long-term or short-term, it's about the fed. this is one thing that will change with a congress likes of our not. they will be budget. if inflation rises in the next to you know, 18 months. >> a lot of economists are predicting. continues to be more. even if they rise 100 basis points it could broil the market. so we will have to see, but i think that is a risk a lot of people are not ready to talk about. cheryl: arrest to the economy and that is somewhere steven was going, but i'm not a time. thank you very much. good to have all your michele. later on the show, were going to go old school. been there. does not like where this is headed. and after sandy, the approval

rating through the roof. what about thousands still without our roof. coming next, the homeowner who is better because he says fema left him out in the bitter cold. ♪ ♪

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♪ cheryl: governors are on fire. approval ratings have never been higher. they are handling of the storm in the push to get aid for victims pumping up their popularity. but three months after the storm thousands of people in new york and new jersey are freezing and still getting the cold shoulder from steep -- fema. displaced from his home. why are you not getting the assistance that you were promised by fema? >> we are dealing with the rapid repair trying to get a boiler and hot water heater. it's not working so well.

cheryl: are you in contact with them? and calling you? does anyone come to check on you? know you were displaced in an apartment now. the cost of setting up. are you getting in the reach of all? >> we signed up with them on the 15th of november. they came on dec. third, that the boiler and hot water heater and left and we have not seen until last week. cheryl: with the decision last week? >> last week they came and drop the boiler and hot water heater off and put it. it's still not in yet. it's still not finished. there are still waiting on parts. leaks. it's just a fiasco. you get very frustrated. you try calling people. no one gets back to you. all numbers people call you from and those numbers a disconnected . you try to get a lot of the contractors to call you, they don't get back to you prodigiously you hanging. before i got on the phone with you guys went to the house.

i still don't have the parts they promised us for this boiler to turn on the spoiler. i call customer service and their like, well, we have to get to the contractor and see with the contractor says. i call this person from the contractor that i have a number of currencies in the customer service and does not know anything about it has to get all the other contractors. i call this super and he has no clue. parts yesterday, today. is just a whole fiasco. cheryl: you're getting the runaround. your definitely getting the runaround, and we have heard similar stories. the timeframe is shocking. i mean, what about the insurance company. i mean, lord knows that they have warble reputations for being anything but helpful. have they come through for you and all? did you have the proper coverage? >> we have flood insurance and homeowners insurance. they just came to us like the beginning of january with a check. two months down the line.

a lot of stuff that we need work on. my roof fixed i'm curious if you have neighbors better in the same situation and if you could talk to the governor right now t would you say? would be your message to the governor? >> you know, he needs to revamp his rapid repair thing. it is not working like this status posted. we have people next-to-last that don't have insurance. they are pretty much relying on

fema and rapid repair for all there, you know, repair work. and it's not getting done. it's a starting to get done now. you know, you talk to people in rapid repair. the governor's department. you know, so many people out there that we have to take care of. is just overwhelming for us. then hire more people. you know, you have the money. hire more people. the contractors down there in breezy point submitting work payment for work. they have not finished yet. cheryl: i have to tell you, the new york taxpayer myself, i speak for many people when assailant like to see my tax dollars go to you and the people and breezy point. good luck to you. thank you for sharing your story. we appreciate it. >> thanks. cheryl: well, forget about how much apple is selling. what about what bull is a feeling. the internet china is going public with your private invoke. it don't bother telling themy 6.

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♪ cheryl: let me be brief. tonight we are not going to be so brief. our lawyers taking on two topics tonight. the first, privacy. critics now saying that google is working with the government to breach your privacy. in the past six months nearly 70 percent of all law enforcement requests for your information are coming without a warrant. lawsuits were rightfully come from this. but what they're doing is perfectly legal. i have to start with you on that one. what do you mean, perfectly legal? how so? there has to be a limit to what is shared with the tories. >> well, any time you sign up for anything on line you have to read what those very long terms

of service are. and in the case of bill will it does not say that your information is strictly confidential or that it cannot be shared with law enforcement if it asks. so you have to know what you're getting into. it is a caveat. read those terms in your service agreement, which most people to say, you know, they get to the end and check the box and say, i agree. cheryl: a thousand paragraphs. >> well, i'm not saying it's not. and the stand that, but if you're going to sign a contract that you are now reading then you are on the hook for what the consequences are. so anytime you put something on line you need to be aware that other people may get it. and so do has the right to do what it is doing. if you like to go to another service that may give you more protection. cheryl: but the fact that the authorities are in on this command i understand that now, you know, federal and local authorities use these types of searches to find criminals. recently want the bad guys to be

caught, but at the same time, you know, the regular right of an american to have a certain amount of privacy when they're not doing anything wrong, had a weak balance that? >> good job. you cannot wave. you have to think about, do you have a legitimate expectation of privacy? you have a legitimate expectation of privacy in your body to lie in your home, in your papers, and i would stay in your private e-mails to people. that is what they were talking about in this situation. if you have a legitimate expectation in your private conversation to your boyfriend, to your friends, three your e-mails, then the fourth amendment comes in. that means that the fourth amendment prohibits unreasonable searches from the government. the police officers. they cannot come in to these private areas without a warrant. in this article talked about that we are all referring to and

what bill bluestocking about, hey, we don't want this to be happening either because only 22 percent of the time they came in with a warrant. they went in and took 15,000 people e-mails without a warrant. and we don't want this to happen cheryl: and you're talking about the law, the contract and this is the way it is. but at the same time, a 26 year-old law, though we need to kind every write the books? a lot has happened in 26 years. the internet was invented, for instance. >> i'm not saying that there should not be some the stricter regulation, but as it stands now, google is not doing anything wrong and franklin should be applauded for letting everybody know what is actually going on. the law can be changed. so you know, we have to start somewhere. to say that schools should not be giving misinformation to law enforcement when it asks for services -- asks or serves a

subpoena clammy you have a privilege with the person you're communicating with which bus people don't. there is no legal privilege to communicate. >> getting confused. [talking over each other] >> clear headed. thank you. [talking over each other] >> the privileges from the government intruding. there is a privilege with the government intruding. and if you want to go to the bar and bend over a chair backwards with the minister on what you are doing about ma and drinking shots and it gets taken a picture and it hits, you know, the internet, you're right, that is not privileged. that is the internet and facebook, that was your fault because it was in the public and is your problem because dignity is something that -- we protect the norms of respect for each other. you messed up. cheryl: none of us would never do anything like that.

ever. i need to move on to the next topic. we are good girls. i want to bring this next topic to you. the controversy that could cause a subway lots of bread. lawsuits popping up claiming $5 for longs are shorter than a foot. one person even claiming that customers were ripped off to the chair of $142 million would seem ridiculous. the lawyers. subway seems fair enough. esther, do they have a case in this misrepresentation of a foot long sandwich which turns out is not a foot long? >> i guess in this case size does matter. you want to have -- if they had just said they had a large sandwich. this is more fun with just the girls. if you are saying that you had a foot long sandwich as opposed to a large sandwich or a big sandwich, then you're taking the risk that if you're not going to be the entire foot people are going to get upset.

what i would say is that, anybody following the subway diet, if they had an inch less of cards and whatever else is on the sandwich then maybe that's a good thing. but if you're paying for the 12 inches, people with the pitchfork. so either say we have really long sandwiches for start serving the ones that are actually foot long. cheryl: but literally about to sue over into the sandwich. this is amazing, and it is a great story, but at the same time, more than $100 million in damages? come on. i'm old school. being a criminal defense attorney i think the court is sacred. real important things. and i think that their commitment to their customers is tarnished. the reputation is heard. think the punishment right now is significant. i think that the case that they're talking about, he has 57 per year for 14 years. if he had thousand subs, you

know, and it is an inch, it's like 500 bucks. you don't sue over that. i just think it's ridiculous. cheryl: do you think that this is just another example that we need tort reform in this country? >> well, i don't know if i would go that far, but this is -- you know, this is a strange case. but i will say, i think he is trying to do to make a point or maybe get some publicity. again, someone has to start somewhere if you're going to try to hold a big company like subway accountable. i guess this is the way you start. but i don't know that the lawsuit is really going to get very far. they would have to really prove that the company knew that it was selling some stock less than a foot. i don't know if the plaintiff is going to be able to prove that. cheryl: the lawyer in this case to keep a straight face. that is the moral of this. how will he stand in court and argue this case. stranger things have happened. ladies to my have to leave it

there, but thank you. very fine to have you on the show. all right. okay. the mainstream media still thinks that he is dreamy. meet the billionaire media mogul who says he is a nightmare for the economy. >> i feel like i should pitch myself right now. i cannot believe i have this vantage point of history in the making

♪ >> need your president. be your president. >> i feel like i should pitch myself right now. i can't believe i have this vantage point of history in the making. cheryl: okay. halftime. the media is going full throttle with a barack obama love of on. while the mainstream media is saying he is the president of their dreams, new york daily news owner and publisher says that there really think he is the best and for the job, they must be dreaming. voted for the president in 08. buyer's remorse. you know strike me as someone that would never have buyer's remorse about anything, but on this particular point you do. >> well, i had enough exposure to the obama administration during the first term, both directly and interactions answer his policies, which i disagree

with. i just became disillusioned with him and therefore could not support him going into the second term, particularly because i thought his policies dealing with the economy were very shortsighted, and effective, and, shall we say, wrongly focused. cheryl: but he had been criticized in the first term for picking the wrong advisers, if you will, leading on someone who came from the university of chicago. now he has a second chance in the second turn to bring new blood in. what do you think of the cabinet he is forming. >> well, i think some of them are pretty good, to be honest and announced -- also bought austin goals be was pretty good. i still think the policies that he ultimately decided upon were driven more by politics and ideology than by their pragmatic effect on the economy. that has been the problem that i have witnessed directly, firsthand, as i was the decision making process. that cannot to me, was what was the core of the problem.

this is not exactly an easy problem to solve, but it is not an insoluble problem either. you know, there are a lot of practical businessmen and economists who have very different views. he followed the fuse that he decided to follow and in my judgment there were the wrong views and did not work. cheryl: what do you think that he could do in his second term to be a true leader and not a politician? and when i say leader ibm manages and manage a business of the united states. what do you can keep could do differently? >> well, he has to be pragmatic rather than ideological. by that i mean you don't go ahead and attack the business community up down sideways every occasion. you have to rely on the conference to some degree that they have to have, not only in the economy, but in the administration of the economy. that confidence is absolutely lost. i have never seen more dismay in the business community in terms of what they feel about the national leaders of the economy and when we are now witnessing. i have been watching it for 34 years.

so i think that is a real problem. if he doesn't care, that's his problem because it's going to have direct and negative effect on the economy. cheryl: but the problem, i would say for csn leaders the c'mon the business network like yourself is on the one hand you're frustrated with the policies are seeing, extra regulation, texas, but at the same time this is what we have for four years. you still have to have some type of relationship with washington and with the administration. how you balance the frustration with doing business on a daily basis? >> i balance it easily. i write editorials attacking policies which i have done quite frequently on the economy. frankly, it is clear. you can see, no effect. does not mean there were wrong. i still think it or recommend that big a lot of people feel there will right. a response, except from the administration. cheryl: i would say you are the person to ask, how would you create jobs?

people are working. they would feel just a bit better. >> these are not totally original fonts that i have. a massive infrastructure program which i would finance the federal money and have them be told projects so that ultimately the users would pay for them and it would not be in addition to our national debt which we cannot afford. i would really expand that dramatically, just as the interstate highway system so improve the efficiency of the economy to make cause the economy to jump, this is something that would have an absolute multiplier effect as these kinds of investments always have. it would be beneficial on many levels, including the fact that we have something to show for the money we're spending. number two, there is a huge shortage of trained people in the economy. millions of jobs are literally sitting empty because we don't have the qualifications and mocks the people looking for those jobs. i would dramatically expand the education, particularly the science, technology, engineering , and mathematics education at all levels. that is something i would do.

provide additional scholarships, bring in the foreign students to come here and want to stay here and work. we're educating them, they're going back. they're competing with countries and companies that are direct competitors, and we will let them work here. this is insane. cheryl: a lot more to say about this topic, and i will be looking for your writing on it. thank you. >> you're very welcome. cheryl: paul ryan was accused of throwing granny off the cliff. remember this? wait until you hear what critics are saying republicans are throwing every one of the cliff. ♪

♪ cheryl: republicans saying their new budget will cut more than paul ryan. rembrandt democrats reacted to that one? well, we are hearing this one has been even matter. my next guest says that these cuts are not nearly what it's going to take to fix the mess that we're in. wall street legend.

and to you first to my want to ask you, why does nothing gets done in washington? isn't the low approval rating of congress enough? did leaders in gear. >> well, it should be, but the real truth is it is really hard to get people to vote for these cuts and changes in the budget, increasing taxes. the truth is it is political poison for whoever votes for it. and so it is really hard to get people to do it. we did it in the 90's and the mid-90s and we got the budget balanced. it was really hard. so i understand what they're going through. cheryl: at the same time, you know, americans have to budget their books. we have to run our bank accounts, make sure we pay our bills on time. isn't there a feeling now in washington that this has got into a critical level? something has to be done. the politics has to be pushed aside. >> yes.

i don't think you're going to put politics aside. but the two parties do have to come together and compromise. i am actually rather encouraged by the developments of the last few days. sounds as though we are going to have the republican budget out of the house budget committee and probably passed on the floor. i am not point to like it, but at least we will have that side represented, and then with any luck will get a democratic budget out of the senate and a compromise between the two. we have got to get back to the regular budget process. we have abandoned that. super committees in all kinds of other things that have not worked. so i am hopeful that know that we have a republican budget to my democratic budget, the president can win and we might actually get somewhere. cheryl: i think the big concern here is that more of the kick the can, if you will. i know it is an overused phrase, but the economy will continue to

suffer. licking it estimates that half a percent of gdp, 1% of gdp will be impacted just from the fiscal glove debacle that we just went through at the end of the year. now this extension of the debt ceiling free or four months. the economy cannot withstand at this point. >> well, that is one of the biggest problems. >> definitely not optimal. cheryl: exactly. you're right. what do you say? >> it is one of the biggest problems we have had in the economy, investors like certainty. they want to know what their tax rate will be, what their credit rating agencies are going to do. delicate washington and scratch their heads because they're not getting much certainty. the only certainty they have gotten is the fact that their taxes are going up astronomically. and a lot of business people across the country are hoping that would be coupled with a lot of spending restraint so that we would not give further downgraded by the credit rating agencies and that we could actually get ourselves on a glide path toward a balanced budget. you have to give paul ryan a lot of credit. both of your guests are doing that by saying he is at least putting a plan out.

harry reid is not put a plan out for four years. talk about breaking the regular budget order, i agree. the need to put a plan out and we need to get together and figure out how to give some certainty for businesses. cheryl: talk to me about the politics of all of this. if you or paul ryan and you are looking -- licking your wounds, back to work a half to do business in washington, rough election for them. how does he handle this from a political standpoint? >> well, in the end i think politics is good policy. so everybody has got -- they have to get down to work and put out their best budget in that house and the senate we would to an extraordinary procedure having budgets summits in meetings between the president and leaders in congress. as i said a minute ago, getting the votes for this stuff is really hard. i hope they can do it with the

regular process. as the way it's supposed to work. if it does not work they have to get into smaller groups and get down to brass tacks of what it really takes to get this budget straightened out. cheryl: you know, the back room deals that we almost at this point have to depend on because publicly when they go to the microphones they know that they're speaking to the folks at home, if you will, that have to vote for them or not vote for them and with their approval rating solo you have to wonder if there really can work together behind closed doors. >> well, i saw it happen. i was on the simpson bowles commission and i co-chaired another group with my friend, republicans and in both groups we had bipartisan controversy first and then a compromise of around a grand bargain that reduced their rate of spending growth in the future and raise taxes. we have to do both. and i am now hopeful that we can

come back to the table after the election, after the various to buckles and try again. i think their is a new spirit of wanting something to happen here in washington. cheryl: but i cannot help but wonder if that spirit will be quashed when they start talking about entitlement reform. we know the republicans want to see something changed. economists in this country, many here in new york city these entitlement programs have to be addressed, and there is no political appetite unfortunately. harry reid about fell off the lectern when he was asked about entitlement cuts. so what happens now? >> i actually think there is an appetite in the country to do something. i think the american people get that the situation for this so much worse than it was. we are in a much deeper hole that we warren, and the economy was growing back then.

it helps in this situation. so i think the american people get it. i think it is hard to get there, but here is what is ironic. republicans who were accused of getting these programs were the ones who were putting ford plants in the budget context to try to put them on a glide path so they could be protected and be there for all of us when we get to that stage in life. i think that is what the american people get, and i think that is why we don't solve these problems now they dramatically worse, exponentially every year. cheryl: of want to give you last word real quick. do you think that we will see a sea change in washington with these negotiations that begin in less than two months? >> i really hope so. i think, as he said a moment ago, we have to have certainty in the economy. we have to have a clear path over the next income of 20 years that we can get. do things are really important. the first is that everybody has to understand this is shared

sacrifice. everybody in the public has to be willing to let their representatives and they're senators vote for some tough things that will make it better for everybody. the second thing is, we have to keep our eye on the ball. the goal here is not just cutting the deficit. the goal is to get economic growth and jobs created in this country. if everybody stays focused on that we can get the hard things done that you need to do to get there. cheryl: send you back to washington. i don't know. thanks to all of you. appreciate you being on the show. the discussion will continue, i'm sure. all right. light up, everyone. and it's lights out for your job. a lawmaker who wants to fire all smokers. what is next? opening of the number of the workers. ♪ it's a new day. if your a man with low testosterone, you should know that axiron is here. the only underarm treatment for low t.

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♪ cheryl: when there is smoke there could be firing. an oklahoma lawmaker wants to allow companies to fire smokers. he says their health care cost is higher, so bosses should be able to fire. republican state cantor david holt is a lawmaker with that bill. senator, this is controversial. you know that you're going to get a lot of backlash of this. this is have a chance of making it the law? >> well, you know, little background. i am a free-market conservative, and oklahoma has a statute on the books that makes smokers a protected class. that is very rare. were talking about race, gender, national origin, and smokers. i think employers ought to have the ability to operate in the free market, and the problem is compounded by obamacare because obamacare is coming in, and as your viewers will know most employers are going to have to

provide health insurance moving forward. in oklahoma or employers cannot make a decision about hiring compensation or benefits based on whether that person smokes and not. that is rare in the united states. it is very unusual, and that the good is a testament to get lobbying more than its estimate to a public policy. cheryl: do you worry about the constitutionality of a proposal like this? you are going to be charged with the men you know, going against the u.s. constitution. are you worried about that? >> no. as a matter of fact, you are employed in new york in a pretty sure that you could be fired for smoking today. you could be fired for writing a motorcycle or having a tattoo. these are not things that the law or the constitution protect. your employers have the free market ability and should to make decisions based on their bottom line. certainly does not violate the constitution. cheryl: how far is too far? you mentioned the york, and i am a resident. a lot of backlash against mayor bloomberg because he is now

taxing soda, fatty foods, calories have to be posted. he says it's for the greater good. and now you're saying this is for the greater good for companies, but what about that person that takes the job and says to my going to quit, i want to quit, i'm going to work on it and any the company to support me. >> well, you understand, i'm coming from the opposite philosophical viewpoint on this. those types of nanny state policies are exactly what i'm trying to get away from here. oklahoma is encouraging people to smoke. it should not discourage or encourage people. i just want a free market to rule and get everything out of it. people want to quit, that's great, but honestly away our law is written if the company hopes to pull by subsidizing their, you know, program, that's breaking the law. our companies would break the law if they charge people different deductibles or premiums. i think those are common-sense compromises when you know that smoking employees cost more in

health insurance. cheryl: you know what, i have to tell you, i know what companies do and don't do, and the easiest solution to all of this is to not hire. fortunately we have had several ceos come on and tell us, not going to hire because of the health care costs rising from my company. i mean, do you think this is something that we can stop? >> well, you know, i think we can try. obviously the federal law is what it is, but at a state level we can try to inaugurated by dealing with things that compound the problem. and here the fact that smoking would be a protected class compounds the obamacare problem. obamacare mandate is bad enough, but what we punish ourselves of the state level and make it to where employers cannot make any decision based on the bottom line when it released to smokers , we are just, you know, shooting ourselves in the foot. cheryl: we certainly will follow this story and see where all this goes. oklahoma has been very responsible and we will see what happens. thank you.

>> thank you. cheryl: well, if it is so bad for you wire you loving and so much? next, how everything the government will do about fast food could actually be wrong. and mcdonald's. ♪ ♪

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he took my shield, my lady. these are troubling times in the kingdom. moreiscounts than we knoweth what to do with. now that's progressive. cheryl: bad for your diet, but good for business. mcdonald's profits growing last quarter. big make rib's sales, a big factor, even though the food police are cracking down on high-fat foods, people keep snapping them up. what's going on? could stuff. i do want to let's start with you. i'm assuming you don't like the fact that they are selling so many. >> yes. i don't like that at all. i mean, they're really not that good for you. what is in that meeting anyway. it is formed. i love that there is no real bonus. it is just kind of fake. so i am certainly not jumping for joy.

when you put them on the dollar menu people see a value and that, and i guess that is what your doing. cheryl: and now you're laughing, but people like pat food. that is just life. i love chocolate chip cookies. it's kind of sick, but i'm going to eat them if i want them. you cannot deny people what they want. >> first of all, need a nutritionist myself because i have a pretty lousy diet. and the worst person, but i looked up some of the statistics for the show. the fast-food industry right now around the world, not just in the estates, but is nearly a trillion dollar industry. so we are talking about big bucks. this is big business. you know, but i am the kind of guy if if you ask me if i want make rivers are carrots, of take the maker of selig. i guess what i'm saying, this is an important industry for jobs, business, and for the stock market. i think that is what we're seeing. cheryl: what we saw on the business side of this, you see stocks rise. people were going for beer and

agitate us. >> you agree with me. everything in moderation. >> yes,. cheryl: i can agree. i am a moderation. but you know something, taxes are going up. people have less discretionary dollars. >> you kind of get it. but i will say that there warning same-store sales globally in january are supposed to be a little softer, so there are some global economic challenges. cheryl: may be as the economy gets better in certain areas, but i have to ask you. that is a really good point. only at mcdonald's and someone feed a family of four for $10. when you don't have a lot of money to spend, mattel's becomes your best friend, whether it's true for you and your children and not to my they are there for you. >> come for food, emotional food >> at the day she would fast food in general is it has the benefit of being quick and convenient. we live very busy lives. >> and cheaper. >> but it is not necessarily good for you. and i think that there are a lot

of quick and convenient foods, even stuff from the can, canned beans have nutrients and then. jenniferish. so there is a good balance there. i see why people go to fast food as a nutritionist i have to say, high in fat, and salt. you know, maybe you can strike a balance their somewhere, get a sandwich, don't make it worse by adding the extra large fries and a drink in the desert. you know, maybe get some sandwiches for the family and you could buy those back salads and the store and whip up something that looks colorful and balanced, maybe we could strike a happy middle ground. cheryl: in all honesty, i had a pretty sick all day long, in this segment is killing me. but here's the thing. if you are hungry, if you're broke, there are a million reasons to go to mcdonald's. they're selling them. it's working, capitalism. i mean, is there really anything wrong? >> first of all, i like the previous ideas about thinking outside the barn as a war because i think that is good

nutritional advice. i would say, this actually ties in interestingly enough to your previous discussion about smoking. one of the things the we do in this country is the kind of subsidized obesity. and, you know, people should be responsible for their own behavior. if you read poorly and you get fat and you're more susceptible to heart disease you should pay a higher health premiums and somebody who each of the. cheryl: i knew there was a health care debate that was about to pop up. okay. fair enough. it does drive up health care costs. trying to curb the pad. but i'm going to go back to my comment and belief. everything in moderation. if you eat the little stuff it makes you actually start to create a healthier stuff and satisfy that urge. i bribe them with fast food. they are five and three, but i stick the apples in there instead of the french fries