so if you're one of them people who gets heartburn and then treats day afr day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zero heartbur lou: we're back with the a-time, as we reported. the cruise ship, the triumph is coming into port in mobile, alabama. it has been called stink boat.

talking with a passenger. it has been an ordeal. >> if any of have you been on a cruise, this is such a astonishing situation, these people, these poor people, are stuck in the worst of conditions. the stench. the filth, they can't get off the boat. >> the truimph is ironically named. named. lou: yep. >> they give them as a gift $ 500 and another cruise, who is getting on another cruise after this, they must be insane. neil: chad simmons the passenger, said it right. lou: he will give them money to get the heck off, thank you for being with us, joining you tomorrow, go the flie good nighw york. neil: where is the love this valentine's day in not in washington, it is clear, john boehner and barack obama are on the rocks. and we're two weeks away from going off a cliff, kind of. tonight i'll tell you why this

time, that kind of love does not stink. that is a good thing. welcome i am neil cavuto, forget the chocolate, rip up the roses, no way these two parties will work this out, miles apart, i think that john boehner just said he is spent, out of here, and cupid can stick an arrow up his you know what, he didn't really say that, but that is kind of where things stand. now before you think that is the en of the world, and the spending cuts, over 10 years, hit us hard in two weeks, i'm here to tell you, relax, sometimes recognizing a bad rape for what it is, -- a bad relationship for what it is, is a good thing. and republicans risking more spending cuts could be a good thing, bring on this sequestration thing, weadock worse, i think we are. to ford oconnelly, on whether

the washington disconnecttion could be good. >> i think it is good, john bain are playing hard to get on valentine's day, saying democrats and senate can negotiateo with president obama, then kick it over to the house, i'm done being the guy who gets blamed for everyone. that is a good aproach for him, it gives democrats a responsible for not having a budget, doing other things, but also gives the republican party unitty, which s something we've not seen for last couple years. neil: something has changed, christmastime they wanted to postpone the sequestration cuts that was a nightmare. for republicans as well as democrats, republicans more so because of the defense cuts. but now they seem to say, we rather that hell than the hell of higher taxes on offset them. >> i think that if john boehner

is playing hard to get, the best thing for republican to do is sit back and wait for president to negotiate with senate, but this sequester is not a bad thing, i think it is a good thing, because we're really talking about taking 85 billion, out of 3.2 trillion, in federal spending, that is nothing. then saying to federal government, guess what, you have to cut 2 to 3 pennies out of every dollar you spend for 10 @%ars it will make government more efficient. the fact that president does not want to egotiate with john boehner, may bring some fiscal santy to this country. neil: you make sense, we should explain 85. that you talking about is up front cost. when you hear 1.3 trillion over 10 years, over the scheme of this 10 years we're going to have a higher overall debt, no matter what they do. so, i look at the so-called cuts and realize, one thing, they are

cutting off the growth of all of the programs, including defense, and a lot of entitlement. >> yeah, fact is that higher taxes, say that republicans give democrats a tax hike to offset sequestration, higher taxes are not sustainable, we cannot continue to raise taxes and expect them to get paid for, president obama in his state of the union made it clear that entitlentitlement programs are t getting reformed. neil: i think that democrats are looking at a different universe. i got a senate state of union, he said, i'm one and done with the debt. this package i'm close to, and math does not up that is it fur

further more, come ponding this. -- compounding this what math is he using, is he saying that because he is paying for more tax hikes? >> i think his math would make enron accoun accountant proud, g he does will add to the debt. he is fooling himself. neil: why would he propose? we crunch the numbers here. >> he wants to raise taxes. neil: hundreds of billions of new spending, he -- and not a dumb politician, he is shrewd enough. if we don't talk about this spending problem we don't have a spending problem? >> that is right, he thinks that basically we can raise taxes to cover what we're missing with the deficit, that is not true this year we'll run $800 billion deficit, if we take everyone here who made a million and taxed them 100% we're not even

going to roach that. all the president wants to do is continue spending and he will raise taxes he think that care and nurture of the public second to is the way forward for prosperity, he is ignoring the private sector, as a result the growth will be 1.4%. neil: you know what i read into, katie maybe you can help me, john boehner saying i'm done. he is tired of it, he is not playing the game if it means he will take some heat, he is willing to take the heat, my own reaction, i wish he were of that mine set about 8 weeks ago, but coming as it does now, i argue better late than never. >> goodly is realizing it, the fact is that republicans have passed budget after budget, plan after plan to reform entitlement and they are not getting the

credit for plans they have passed and democrats have somehow pinned blame of all economic problems on the republican, joe john bain are saying look we're not getting credit for the work we're doing so why continue to put the hard work in to the plans, if is time for democrats and white house to pro sent to us what they want, and minoritity will look at it when they are done with the heavy lifting. neil: you know what would worry me more, i think it is a do something that pushes the sequestration cuts down the road again. however they cobble together a deal. i think that markets fall on impact on our credit rating would be worse. >> i agree with you, because i think what the president will try to do is to raise taxes and not actually address the deficit problem, as such you will kael so much uncertainty and bring down the value of the dollar, i agree with you. neil: it scares you, totally scares.

>> you it scares me. >> yes. >> it scares the bejesus out of me. >> thank you very much, and all of the hits fan, two weeks from tomorrow. meanwhile, today, on this valentine's day. cupid might have to start walking, tool be too expense offer to -- it will be too expensive to keep flying, two airlines are teaming up, the ceos of those mega-goliaths on why you just might have to pay up. with fidelity's new options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity option.. evaluate them with our p&l calculator...

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or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. neil: social security, not looking so secure, it could be tatapped out by 2033. and it will get worse because washington will not address the problem. gary, that is pretty powerful statement. for outgoing social security

king pin says we're running out of money, and we're going to run into a buzzsaw, what do you make of that? >> in 2005, my radio show and others were asked to come to white house do interviews, it was all about the bush administration, wanting to do something about social security, within minutes you heard scare tactics about how the elderly were not getting it, it would be destroyed, within days, they dropped it fast forward now, same thing going on, politicians are afraid to do anything about it and days of running as we get closer. already running a yearly loss right now, but everyone seems to worry about the next election until this changes, i think it will be the same old. neil: i think that even, administrator would agree right now it is in pretty good shape with funding necessary, and set asides to continue operating well. by compare son to other programs

out there. but i guess what worries me, this is not a hoesch left or ri, but why do we have to wait until we're on the brink to do something?

neil: about what does wall street do then gary? >> right now markets love printing of money, my big issue is we hear 200033, but when have they been right when they toil us it will be fine until then, other part is just demographic its was 30 workers, now i think 2 or three, and it is gets worse anders on as people live longer, but are day as it goes by, they don't do something it gets tougher down the road, you said, this is small things that can be

done here. that would really shore it up for a good long time, we can't get that done because everyone is worried about getting yelled at and the scare tactics and getting reelectioned. >> thank you so much. neil: two airlines are merging it has one senator worrying, really worrying, th ceo here to say, ca calm down. i'm lorenzo.

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neil: no sooner had american and u.s. airways announced their merger than rockefeller of pointing on the deal, warning it could hurt consumers, to u.s.

airway ceo douglas parker, and amr ceo douglas horton, welcome to you both. mr. parker to you first, on the senator's fears it would hut consumers, what do you say? >> well, we're happy to address the senator's concerns, this merger is great for consumers, we have two complimentary networks over 900 routes served by two airlines only 12 have which overlapped. we putting it two airlines and fly to more places for more people, it will be good for consumers. neil: do you get a sense. address this to you mr. horton, that there is a consolidation going on in the industry. after delta bought northwest, and united and continental, and southwest, and they are 4 super

carriers here. so by just the virtue of fewer choices there is a fear that they will get stuck behind the 8-ball, lay the elay them of thr concern. >> i think it enhances competition, before this deal you had two mega-carriers with delta and united, now a third that is fully competitive with those two on a global basis if you look in global context, you have their global alliances, sky, star, -- star, sky team and one world, this team bringing u.s. air why the fold of american makes one world that much stronger, and a more robust competitor with star and sky team. neil: i guess, as a regular flyer, and looking at industry now, you will be largest whether all said and done. but there is still so man planes out there -- the demand has

picked up. consumers are used to more you'ded planes, but there is a concern about fees going up. from where you sit on the plane to what you get on the plane. are we going to see still more? >> well there is more of a trend of having customers pay for things they value most, and not pay for things that's would rather not purchase. it has been constructive for the industry, it has been one part with consolidation and other things that led to a more profitable and healthy airline industry. a healthy airline industry is good for the country, it allows the companies to reinvest, and hire and grow, and that important for the country. neil: you know, looking at this what is going on you get that off and running.

you could have other things to do with your cash, vehicle looked at other opportunities this comes at a time when a lot of companies are sitting on a lot of cash, maybe not degree of apple but so many for are -- are electricking aarelooking at thig different. is any of this indicative or a statement on your part about the economy or the environment? how would you describe it? >> less about the environment and more about the value you create when you combine airline networks, there was no better tune in our viewer for our shareholders than to enter into this merger. this creates the value.

this will create a billion dollar a year in synergy, that goes to the shareholders. >> from our perspective, you know at american we have completed what is most successful restructuring in airline industry, because we have done that we were able to negotiate a deal with doug that was very sensible and in fact means that the owners of american will own 72% of the newly merged enterprise. neil: finally, your view of the economy right now, and notion that president and state of union address other night that things are getting better. that, is back. markets are storming back. and that in this environment, there is more room for the government to spend, more room for companies to look forward to what he has to offer, do you share that view? >> i've leave out the political

view on government spending but as it relates to the economy, it does not feel lik like it is storming back by any means, but there is a gradual growth, not dramatic but it is growth. we've seen it in our industry, more and more people returning to the skies. >> mr. horton, a lot of people seeing their taxes go up. will that impact, that tax hikes have you seen impact travelers, do you suspect? >> well, in general higher taxes are not good for the economy or for discretionary spending, but as doug said, in near-term, what we can see, airline demand looks pretty robust, because supply and capacity environment has been tame it makes for a healthy

environment revenue environment in the airline business right now. neil: and finally, i do want to get into something you keep one eye on washington, this idea they could be on a verge of a brink in a couple of week of automatic spending cutting that kick in, you heard that, do you, as ceos, and big mucketty mucks, let this affect you, it is noise to you? is it worrisome chatter to you? your business plan? it didn't affect your merger announcement today, but many of your colleagues say it does and it worries them, what say you? >> well, i think you control what you can control. for doug and i we can control the outcome of the merger. and we have seen this as an opportunity to create value for the companies, irrespective of the environment in washington. neil: one final line for consumer travel airline, this

echoes back to what you said at the beginning. the benefits of it deal will go to corporation. not to consumers, this is growing anst among the groups that represent customers there could be hell to pay from this. why do you think that is so rampant out there? that fear is so ramp arndt. >> i don't know -- rampant. >> i don't know, it is not warranted overtime, as the airlines merge it has been good for the business and industry, and investors. we certainly expect it to be the case here, this merger in particular, for reasons tom already stated two complimentary networks and don't reduce service, and create a third strong competitor to two large airlines that are out there, it

is great for consumers, and time will prove it to be the case. neil: thank you for taking the time. be well. >> thank you. neil: all right, heads of u.s. airways and amr, parent company of american airline on paper signining what could be largest carrier in the work. >> in the meantime, chris christie visiting the facebook guy, remember him, the guy in the hoodie, now some protest ores in his hood, his neighborhood. right to his house, they protest both of these guys, what is that about? plus a 50% annual bonus. and everyone but her likes 50% more cash, but i have an idea. do you want a princess dress? yes. cupcakes? yes. do you want an etch-a-sketch? yes! do you want 50% more cash? no. you got talent.

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neil: the left believes it has a right to protest at people's homes. they were demonstrating outside of mark zuckerberg's house last night, they are not angry about his hoodie, they are mad he is hosting a fundraiser for chris christie. a tea party has tried the same stun very different react. mark what do you think media would say? >> they would be accusing us of same thing they have accused us of, i am sure they would find a way to throw in racism, say we were threatening people.

whatever we do there is a double standard. andby have gotten so used to it, it is kind of amusing. neil: when you camp out, outside someone's home, that is a big dial, but a lot of this in new jersey outside of executive homes in new jersey, the strykers, they got a pass. in this case, this is liberal groups who don't like the idea of zuckerberg meeting with chris christie, a famed union buster. double standard? >> absolutely. you see this is the new modu moe mo of the left, trying to intimidate and massive protests not against politicians, this was a political events. but at people's home, the unions

at the forefront, they engage in a corporate campaign they try to intimidate their opposition, through these type of tactics. and now also translated into a a politicalittlepolitical sphere 3 with zuckerberg. neil: i don't mind the protests. but in a go to the home, and the kids are there. they have nothing to do with these issues. i do think that the tea party, pulling the same stunt, you guys would be all over the place, as nuts, and cooks, we saw the occupy wall street crowd, more incidious and mar more objectable, it was barely an issue, it is galling. >> it has been going on for so

long, they attack us no matter. we hold a protest with a million people on capitol mall, there not a gum wrapper left at the end, not a single violent incident, media never talks about that, they talk about occupy wall street folks who break windows, destroy personal property, attacking law enforcement officers they elevate them like they are doing a great civil service, there is a double standard but it asko absurd at this point we just laugh at it. neil: you know. if zuckerberg did an even with barack obama, he has done, you would not see the same crowd protest, is that to say any high technology title of an who bolt -- titan who builts from prewritten environment tha scriu

shall only deal with democrats, will get punished? >> you are seeing that. the demonnation of the coke brothers or with alec. it is evil suddenly, that is when you see massive protests and politicians even domonnizing -- demonizing these people, i was at the 912 march in washington d.c. with the tea party, there was barely a gum wrapper lift, they cleaned up afterwards they were polite, and you juxtapose that with the union protests and left protests, and occupy movement it is night and day. neil: tea party losing public support. what happened in two years? >> well, what happened is,

nothing really bad. everyone is trying to paint this as a tragedy right now, latest polling shows 8% of american voters who consider themselves tea partiers, you talk about 12 million hard 8 hard-core act, now other political movement in this country that can claim 12 million people who would raise their happened and say they are a part of that movement after billions of dollar media spend to vilify the tea party. >> the 9 94 other polls -- other polls, now down to 20%. that does not worry you? >> it does not worry me. i would rather it be 40% but what have you mainstream media year in and year out, you have politicians on both sides vilify the tea party you have to expect there will be some effect on

favorability rating, but when you end up where we are over 12 million people who claim tea party affiliation that is extraordinary. neil: a good point, mark thank you very much and vince thank you. >> thank you. neil: creating jobs by cutting unemployment benefits? the lawmakers say that is what it takes, that is what he is doing. let nothing stop you. good job ! it's red hot deal days. get the nokia lumia 822 in red for free and discover all the things to. or the droid razr m by motorola in pink for $49.99. everything droid does in an edge-to-edge display. hurry in, because the sale ends february 20th. powerful devices. powerful network. verizon.

neil: north carolina wants to cut jobless benefits as a way to jobs, lawmakers approving a big cut to unemployment checks, companies don't top move there because of the current system that system, leaving north carolina owing washington about 2.5 billion bucks. senator, what is this about? >> neil, well, it is about trying to get north carolina in a position where our businesses

can create jobs, they are saddled with this debt, that if we don't do anything, it will take until 2019 to get it paid off. that is a tax on jobs, we is a plan that will pay debt off by 2016, and reform our system so benefits for those know employed are more -- those unemployed are more in line with our neighbors and enhance the aville bill to create jobs. >> cut from what to what. >> coverage -- average benefit would be cut, maximum benefit is over 500-dollars now, per week. that would be cutback to 350. that would still be highest in the southeast, but not quite what it is now. neil: and idea is that if you are looking at less of a benefit, you are less inclined to look for one?

>> the idea is one of reason we owe federal government 2.5 billion that structure was so out of line with our neighbors we ended up spending more money in the unemployment fund, we wanted to do was reform the system so next time we have an economic downturn we'll have built up a balance in the fund, and not simone go out as fast. neil: you know, the wrath have you on the left on this senator you can't do it, it is not legal, you can't just willy-nilly take a benefit, and just, cut it down from those who are getting them, what do you say? >> and that is true. neil, we're doing is, this will go into effect for those who apply for unemployment benefit on july 1. of this year. >> and prior ones? who get them prior they getzlaf the grandfathered benefit.

>> under the bill, people who are ke currently receiving state benefits, the would continue with the current benefits. neil: how likely is this for passage? >> it has already passed. a matter of governor signing it. neil: and inclinnying of that? >> governor macquarie, who was just elected in november, has indicated publicly he plans to sign the bill. neil: so it would take affect july 1. >> july 1, correct 92 senator thank you so much. >> thank you, neil. neil: dennis kozlowski talking with me behind bars, remember that, he economy walking free,e? soon are than he thinks.

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neil: we've been following his story single most the moment he was locked away, now dennis kozloswki could be a free man, sooner than expected, new york supreme court overruling a parole board decision to not spring the former tyco boss free, the board initially denying parole saying that kaz in kosskozloswki wasa men a men. we have judge napolitano on if the board could be blinded. we'll get to a statement center kozloswki's parent in a moment, bubut.

your sense of whether dennis cos kozloswki should be out now. >> i want to make it clear, i don't know him, but i have looked at some record information there. that record information in my opinion, i would assume any other right-thinking individual would bring us to the conclusion, he should have been released. neil: why wasn't he? >> well, we saw the reasons that board gave for not releasing him. they think he would be a public risk. a threat to public safety. they think that releasing him would promote disrespect for the law, think it would be incom potable, -- incom income incomp.

i came up with the opposite conclusion, he should have been paroled. neil: in latest case, he had been a model inmate, in a work relief program that he is in now, evidencing no such threat. so, it was still ignored and parole board still decided keep him in prison. or modicum there of. what guided that? is it the idea they done like wall street or him, or something to his case what do you think? >> i think the thing that i -- it was a nef in neff rouse casee were other cases corporate heads doing things they should not have been going in the opinion of the prosecutors, and but his,

he did something that many of the others donor didn't do. he took his case to trial. so you takero your case to trial, and you loss, in the state of new york you pay a price, you get a longer sentence, he could have pleaded out, according to him, and received a sentence not of 8 years, 4 months to 25 years but of 4 to 6, had he gotten it 2 to 6, and paid back money as he did, he would have been home. neil: i want to bring judge napolitano into this in a second, but this final element of a potential threat to society or he could bolt, how realestic? >> that is ridiculous. absolutely ric, absolute ridicut happen, where is he going and go, if he decides he does not

top live in the u.s., he would notify the parolees, they would say good-bye, if you come back, you are still subject to parole supervision. neil: could they let him go? >> they could. neil: judge, you heard a lot of this, what is at stake, now reexamining this, what is next thing. >> the next thing is for the same parole board that denied him his freedom, which was overruled by new york state supreme court justice, will hold another parole hearing. i think that they will probably let him out, and probably let him out quickly, not even ledge olengthof time it would take, mr. hammock knows parole board procedures better than i, but having been chastised by the court, that parole board is just

threw down reasons for keeping him locked up, without facts to the case, i think they woulds to be wash their hands of him, and be rid of him. neil: could it go the opposite way, they might say, if you want us to attach a reason. we will come up with one, but we will make up 1, we made our decision. >> it could go that way, it is unlikely to do so, i have reviewed same records that mr. hammock as reviewed, there is something in record to point to to justify he is a menace to society. if he leaves, what do they care? it saving them money on supervision, he is living in a halfway house, to get there, there is a conclusion these is not a menace toes ses society.

he leaves, he comes back, there is no evidence to support their conclusions, they would be hard pressed to come up with the same answer this time. neil: what we're seeing you, he was not in the halfway house. this is when he was in the hard pen. mr. hammock do you get a sense that this would be reversed when it is taken up? they would be under pressure to reverse itself. or they could be angry, and say don't tell us what to do. >> let me say, in are many cases, that i've seen where, we get a judge, who makes a good decision in a case, in my opinion, and he orders a new hearing, or she orders a new hearing, in many cases, the guy goes back, and they give him new ryans and they deny him, what the judge is saying i hava oo

ooha agree with, if they were frying to justify a decision, in a would have difficulty identifying a factual basis to support the decision to deny release, but there is a new factor here, i just learned today, the attorney general's office, has filed an notice of appeal, and when you attorney general files a notice of appeal they get an automatic stay that order, of judge huff, to governor kozlowski a new hearing is on hold. until the appeal is decided. >> he sits and stews in prison longer. >> the new york work release program is an excellent program.

it does put the guy back in to community that is number one that mr. kos kozloswki, there hs been movement from him in work release, he is home. 5 nights a week, only in the follow two nights a week, he really is back in the community with no adverse occur answer so far as anything. other thing, whichs board references when they interviewed him for release, they have been mandated, effective in november 2011 to use risk assessment instruments in their parole release decisions, they did that in the case of mr. kozlowski. i've not seen the compass report, guaranteed he is a minimal risk to reoffend.

neil: judge, to mr. hammock's point about attorney general intervening to appeal, how unusual is that to you? >> well, i don't think it is unusual here because this was a notorious case with, and mr. kozlowski is someone the state aggressively pursued, and was angry he did not accept their plea offer, and forced them to go through a expense expensive trial. neil: much longer than case otherwise they got him. >> you know what, it is not enough of a pound of flesh for them. so they will take another shot at appellate court, i did not know about that, he will not be mouth in two weeks appellate court could take months before is accepts appeal much less rule on it. neil: we'll have statement from dennis kozlowski's lawyer in a second, but did you find it

surprising that you would see the attorney general office intervene on what is essentially a parole commission matter. >> i -- first of all, attorney general is state's lawyer. so, if parole calls up and says, we don't like this decision from judge huff, we think you should appeal it. the process -- >> is that how they do it, they call him. >> attorney general would not be involved until parole notifies them. we would hope would happen, and it, it happen in this case, we would hope that the attorney from attorney general office would get this, and review the record, and reach a i determination, what are we appealing? why are we doing this? i've seen cases where the attorney general reacting

reflectively, they do the appeal, and say let the chips fall where they may. in his case, his parole eligible guilty would be in january, he would see the board in september of this year, they see them 4 months before they can be released. neil: by the way, to that statement, from koss lo kozlowss attorney. we're elated by the court's ruling, it validates what we've have said all along, after being a model pris morer ine pris mory years. neil: what do you make of it. >> i hope that attorney general

-- say that parole board we're not going to file this appeal, we don't think it is merit orous, we're not supposed to waste the court's time with frivolous appeals. it is up to the appellate court. these types of appeals are not normal. neil: all right, an. why to this day? we have no idea. that will do it see you tomorrow.