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tv   Cavuto  FOX Business  March 26, 2013 11:00pm-12:00am EDT

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social and religious conservatives in the country, he is -- he has new ideas about political parties and what needs to be done to set the country straight. thanks for bei with us, good night from new york. neil: this just in banks in cyprus still closed, protestor are getting angry, at the banks, just following order from the government. make sure the pointed finger sticks now government is launching a criminal probe into the bank, someone, anyone tell me the greek word for hutzpah. i am neil cavuto, give the sive the -- cyprus government a hand. they are dumping the crisis on the b banks, the banks whose doe podeposits the government rded, whose very lending policy the government created and endorsed
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and supported and from which the government profited. what is that about best defense is a good offense. pardon me, this looks offensive. remember when we put whole meltdown on banks for over lending, when it was the government for years that demand banks quit being suc tight wads and up their lending, the same government that said owning a home was not a -- but a down right birth right. congress does a quick pivot, said tt banks were lending too much to too many, they better stop now, so banks did stop, and congress said he did not mean totally stop. banks whacked first for not lending enough, then not lending ethen not enough, i see a
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pattern, this is disturbing, governments call the shots, they get ugly, create a vilin to just shoot. these thieves have now emboldened governments to keep stealing and just smile. it is brilliant and evil at the same time. but think you can't really happen here anything time to economist and former office depot boss, saying not so fast, cyprus government has it down to an artform. >> you think of it as a small tiny island, it shr i should ite relevant? absolutely, everyone in the world should be scared. you have a situation with banks are in trouble because of the levels of debt in government action. you have the greek situation
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spilling over to cyprus banks, now the government is stepping in and seizing assets, this is an unprecedented step thatas never happened before where governments seize assets. european officials now saying this is say model to take to other countries that are having trouble with their debt levels, this is not just a european phenomenon, we in america should step back say look at our spending our debt to go, tp levels we should be worried about what could happen with this precedence that is being so the inyprus. neil: they are reay seizing generally, rich guy's assets. allows for that. the fact of the government there is going on a criminal probe into the banks, that a top bank ceo had to resign, is it really
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on the banks? or is on banks acting at behest of the government. >> i thought they would have an offshore banking center, it was anything goes that was the plan from the beginning. neil: it was working. >> right, but now that any went. now it all went, now, you know they are looking at them, and who knows what remedy will be, cyprus is -- a unique situation. neil: you don't look at it as a pattern test. >> dutch finance ministe said it was attempt let and he said, i don't mean that. you are worried this it i is temp template. i am concerned about italian. they have a population that puts it foot down said no ons on
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austery. and germans said yes, we have a showdown in italy, cyprus is an interesting side show, but the real center is italy, they are in position to leave eurozone, and easy for germans to push cyprus and stee step is greece. >> we live in a visual median here at fox, we look at imthinks images and people trying to get money out of their banks. the government will police who leaves the country and with how much cash. it is going to get ugly. i think people watching the images will say, there go by the grace of god could go my
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country. neilcountry? my account in my bank, are you worried? >> i thin i people are waking up saying, wait if they are forced to take assets from this country and whether it is a model, the insured accounts were talked about being seized. so why not other country,. how safe are bank accounts in this country. neil: argument is they only going after rich guys, you are safe but it has been cast to go after bank accounts well to do or not is that not dangerous. >> they breached that by saying, originally they should go after all of the accounts then woops, there will be a run on the bank -- >> what do they risk? what if it does notead on a run on the bank but leads to a
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precedent where other countries say, hey it worked for them. >> you got a situation where people will worry that deposits can be grabbed any place, that puts you on a hair trigger. any time someone thinks there is a problem with a bank in and country, the deposits will start leaving and you will create a crisis, you will take any little thing that happens, and turn it to a crisis. neil: do you see it in cyprus. >> i see it outside of cyprus. neil: where is this money going? >> to solid countries, german. neil: thank you very much. my buddy charlie gasparino said we could be looking up, compared to the rest of the world we look pretty good. we're like the tallest midgeet in the room, but that mattered
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in wizard of oz. >> assets will go, bob said it, to the safest place,. neil: are we that place? >> we're one of them u.s. treasury pone bond is one of the sive havens, and u.s. dollar is, our day of reckoning. neil: but what if it our barges that are deemed exposed to this. >> yeah. neil: i'm talking to other countries? >> we could have issues with that, one of the things -- and this still has to play out. we're talking about muddling flew. i don't think that italy will go right into default off the bat. but i have family in italy, that is the moter of welfare states, i don't think they had positive growth in terms of their economy. neil: they are most vulnerable
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after? >> i would think they and spain. neil: how could we resist what is going to there? >> what do you mean resist. neil: i all is falling apart, i can understand coming here because we look safer bet. >> we can keep borrowing, the u.s. becomes by default best place to put your money, and we have a great country, and economy and great assets, there are a lot of reasons to like the country. >> if any of our banks were in trouble like this you know, bank there was, would we try to rescue it? it? >> we did. we did. citigroup this is key, during financial crisis in 2008, citigroup gets first bite of the apple. >> we didn past, but would we do it again?
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>> yes. il: to big to fail. >> it is worse now, you got rid of bear and lehn the assets were assumed, bear by j.p. morgan andly man b and lehman b. more assets are comprised in a smaller number of banks, it is worse too big to fail, and eric holder, he said too big to fail exists. he said we're not goi after one of these too big to fail banks, he said all this nonsense from dodd and frank about too big to fail is over has been cofrocotradicted. the point is money will to be to flow to u.s., until we look weak. neil: i wish you could give me the month and day. >> then i wouldn't be doing this. neil: understood.
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for a clean mouth and kills bacteria for fresh breath. ♪ fixodent, and forget it. neil: nerds rule, quarterbacks drool, if i had a dime for every girl that turned me down for junior prom. i would have a lot of dimes even if i didn't land a lot of dates, in how saying stuff like some day i'll be a world famous tv news anchor did not fit with the face more suited to butcher than broadcaster, the rest i say is history,adies, see what you
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missed out on! but enough about me. to a kid who reminds me of me, well much smarter, at tender age of 15. working on his computer in his bedroom. but what he was working on, a novel mobile news reader called, sumly, triggered an offer from yahoo! i can describe as kingly, $30 million. this is how muchia hyahoo! is nw plays, the 17-year-old very hot nick for his creation. so there you go. makes you wonder, yahoo! recognizes innovation, why not the yahoo!s in washington? gary, i suspect if you were to admit it, you might have shared
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some of that manufacter path but look at you now -- some of that nerd past, but look at you now, we have a company embracing that, i like that. >> i actually was a nerd back in high school. neil: much cooler. >> i don't know about, that but thank you, neil, here is a classic case neil, it just so obvious where capitalism, free market works in in case, to young man tune of $30 million. looking at washington opposite of what they reward, they don't reward innovation, they reward things like being in your job for 30 years, building your dertment bigger could absorbing more and more of the people's money in the form of budget. that is what the buschcrats in washington -- bureaucrats in washington do, they just want to grow their power base, unless it is something focused like landing on the moon, or winning
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world war ii, here in dc it is opposite of e innovation. neil: deedee, you were one of these that always turned me down. >> no, actually, you picked right girl for that, i was the one that always went out with the nerveds over th ferds nerds. the government has no business to be in, they don't know what they are doing, everything they tried to work on business failed. look at solyndra and the companies that have been boondoggled. the government is ifficient, th should try to grab the young brilliant guys because, at that point in the career maybe
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they would be willing to go to dc, they need to do that instead of rewarding, the career, people can't get fired, they are there are in life. neil: rick, you are brilliant. you could live with your washington friends and your powerful democratic allies and be part of thatublic government world, but, you smartly chose not to because it was going to rot your brain? >> the irony of the point youu3 are making is breath taking, there would be no yahoo!, there would be ni young fellow -- >> don't even credit the government for this. >> don't give credit to the government. >> i have to, i'm not going to let have you that narrative. inrnet built by an agency called arpa, created by
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eisenhower. >> oh, my. neil: they would not have any of these guys, then what happend to those dies, where ars -- those e are they now. >> dead. neil: ar they at solyndra? are they at new green technologies? are they making batteries that blow up. >> they are making batteries. neil: that blow up. >> there are two types of government innovation, there is innovation done directly by the government, which by the way, if you want to talk did en no vague novation, people likepy are alive because of the innovation of n . neil: fair enough, gary, he is a live because it of the government. but do you think that we you know say all government bad, all private enterprise good, i was saying we should encourage more
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of the private enterprise behavior we see too little of it. >> well, am not for a no government, i amond of the libertarian camp, does government provide sprouts like arpanet yes, but private enterprise commercialized and caused internet to grow, like the private enterprise that started federal highway system, and rail road system, the government would get out of the way more and let private enterprise doore. neil: the government provides the seed, and gets the hell out of the way, but they don't do it now. >> they don't do anything good for, they need to get out of the way, and takes taxes, corporate tax rate is terrible. they are having small businesses are having trouble because of the government, they are making it difficult for them to thrive.
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>> i like gare's point, government innovation starts a lot of these things. but it is private industry that take its at a point and develops it and makes it better. neil: but you don't think that regulation that piling up faster than planes at la guardia, you don't think that will stifle that. >> you know my favorite saying, big business creates big government. you don't want regulations, none of u wantegulations. neil: i edge to think we nee doa hundred in aiwa. >> i agree we get over regulated. neil: you love regulation. >> no. they will over regulate. jim: i nerd would not see that,
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you were never a nerd, you are a liar. >> if nerds -- >> did you just call he me a l? >> that is ary nerd in me. >> all you oligarchs and russian mobsters that have had it with parking your money no cyprus, go west, try puerto rico, because we went out and asked people a simple question:
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neil: large depositors in cyprus looking at a 40% hair cut and
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soon. if and when barge -- banks ever reopen there. they are setting their sites on alternative havens. this sunny haven of puerto rico is sunnier than y know. foster, what is it with petero reeky, i -- puerto rico i heard a lot of people saying it what is it? >> everything i have been able to achieve i owe here to america. neil: they are kind of like america, right? >> well, it is not the same as being on mainland. neil: i understand. but what are they doing? do you know wha they are up to? how they are enticing the likes
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of rick perry and the likes for that couple. >> it is savvy and smart, i don't know if dodd-frank plays into issue, but there are so many unintendedded consequence because of government actions, talking with senator coburn, he discussed home care to reduce hospital cost areat idea so home care took all of the greatest nurses to the homes in hospitals they were not there. every time weet a move there were all kinds of things that happen that we would "like" to happen. the challenge, to avoid the cyprus hire here. we'lly people can only spend so much money, when people of wealth are taxed heavily, what goes away? their ability to give money away, last night man gave away
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850 million to health c care centers in nebraska and south dakota. if the tax goes through, my ability to give to charity will reduce by a quarter million but my life style is not going to change. neil: by the way, i'm not there, i have too many privateets. but, let me get a sense of what really drives thi we run 3 through various tax rates. and when you were picking out companies, you know, you were great investor, you seek out value, you see diamonds in the rough, how much went into a company's tax rate or its locale? when you made an investment
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decision. on that level alone, puerto rico offers an advantage, even in u.s., but there is more to it than that, did this enter into the equick for you, just what the tax burdens were? >>eil, what was important that when i looked at a company, i wanted to make sure their earnings were real, and paying a full tax rate. i woulddjust up to see what would full take tax rating. i would guess thatmportant thing, how do we become competitive in america, we have highest tax rate for corporations, corporations do not pay taxes, they pass to us, so when presint obama said we're not going to tax people making less than $250,000 but
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puts a 10% tax on wheelchairs, the people that make less than $250,000 buy wheelchairs, do you think they be absorbing that 10%, no they are passing it on to the consumer. neil: good seeing you thank you. >> thank you neil, always great to be on your show, come out to wyoming, see what america could be. neil: thank you, foster, i got my health care guidelines, for preseedures. all filled out, sex, male, as if, height, tall, really tall. weight -- none of our business, allergies, government, registered to vote. what? do you think i made up that? how about all but one.
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neil: ve health care, will vote. why does to sound, if you want health care, you better vote -- for us? it is tucked in 61 page obamacare application along with running through your eligibilitiy requires, it a question asking, would you like to register to vote? for that reason white house officials see nothing odd but white house officials see
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something out of place. to the judge to judge. >> first of all federal government cannot register anybody to vote. under any circumstances. >> what if they link you to a site. >> they canegally do it, but should they be? with the class of people who are likely to think, i better do something about this voting or i might not be getting my health care. neil: do you think that people would get that thought? >> i do, the wrong is that statute, which nobody read. the statute reposed so much discretion in the, knowing he would be president when it kicked in, he can write all
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rus he wants, it gives way too much authority to president, for example if president had been today mitt romney, he could strike that in there. is this type of power that president should have or should congress be making these decisions, which enact legislation, saying to president, you set up the rules, you decide what you want on the form, you want them to register to vote, do you it. too much power in hands of the president, which he gives to those who work for him. neil: is there any implicit harm in that? is it almost too inviting to be scary? >> b . what jul judge would say, what problem do have you registers people to vote? you can't -- >> what is in it for them? they are assuming if you are signing political motives, that
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whoever registers democrat, because this is obamacare. >> because the government gave them something, they assume if they don't they are not going to get this. >> i think that is a reasonable fear. if you are already registered to vote, you still get the benefits, whether you vote or not, you are welcome to register, you are welcome not to register. but when the government asks you, hey, cavuto, you want to vote? wow? i'm getting health care from the government, and they are coming at me like this, i better vote. this is not a statute that should have not caused you, and me and good folks watching us now to be talking and worry about thi this is an example how far afield that government gets if writes laws so complex they don'tave time to read the laws it rights.
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neil: judge -- all right, when zuck is stuck on you. be afraid, mark zuckerberg said everything about you is fair game. [ male announcer ] you are a business pro. governor of getting it done. you know how to dance... with a deadline. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. this is awesome. [ male announcer ] yes, it is, business pro. yes, it is. go national. go like a pro.
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ask your doctor about spiriva. i work for 47 different companies. well, technicay i work for one. that company, the united states postal service® works for thousands of home business. because at usps.com® you can pay, print and have your packages picked up for free. i can even drop off free boxes. i wear a lot of hats. well, technically i wear one. the u.s. postal service®, no business too small. neil: naysay your life is an open book, who knew it would en up on facebook, he is scoing your credit card purchases, and rebsearchs and marital records to help those advertisers and himself. , everye but you. facebook stock watcher, and ira,
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the argument is that this is all fair game. what all companies do, i guess you are expert, but for me he is doing it in hyper drive? am i missing something? >> if is fair came if people are consents they are encouraged to sign up for choppy cards and -- shopping cards, on dmv, there is not concept you on this datal be used by the company, a lot of people feel is an invasive way if they were informed about how the data is used. neil: argument we, you join a lot of sites, you like a carnival cruise ticket, i can't sue. who knew. but, all in there and you just have to be aware. and when you get on to the sites
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you give a lot of su stuff aways it true? >> i think it is, we have remember is there is question of privacy, about how ts affects your financial plans, for example, there are concerns about how health care and since providers look at this, i got a larger life insurance policy, i have a second child, so there is that concern of what is high facebook page that could persuade an under writer to make decisions that could cost me a lot more money for say life insurance. neil: how would that come up on your facebook page. >> not for me, but, let's say if you are a young person, remember facebook is about creating your alter ego, younger people might want to show one side of their life that might include parties they go to and drinking and hanging out with, we're talk
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about gets the stuff to sell, if work on your facebook persona you will be upset to find honda is advertising when you said you only like ferras, i think that will also be a problem for shareholder value. neil: i wonder, ones who use, let's say, facebook for everything, for e-mail, and communication, for updating their own bios, and pictures, and interests and parties, and anything that everything. then you are an open book, right, by that alone, you know, you could learn a lot about a person, maybe zuckerberg is doing nothing unusual than just, using you to get more information on you to provide for stuff for you in that is what he says, but to le's point, people person certain information on it, you can't put
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your entire brain on facebook, it is context so key, so importance, and someone who has another database or agenda takes this data out ofontext, that could hurt you or litigation, someone will take that data out of context, and then i is involved in litigation, years from now you might loss custody of your children based on something taken out of context in a massive database. that is realistic. neil: i hear what you are saying. a lot is out there in public vernacular, you can dig up real estate transactions and deals with little scratching you can get a lot of information on your own, what zuckerberg is doing is assimilating all that, in sort of a one stop advertising shop. well, i think there is a fundamental problem. it is one thing to pull up say, you know tax lean or certain financial record, those are
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records of fact. if that on a disclosure that is a fact. but he is going outside of your experience in facebook you are trying to control, whether do you it you know properly or not, he is taking outside vendors, 4 to be exact, saying you tell he what is going on with these people not alter ego or "avatar" that people want to facebook, have you a clash of what is going to with what you are telling people you like,hat you are telling people you want to be on facebook, now a outside force coming in there, to try to solicit. i think they will csh, i think it will have bad can 87 -- conss longer term. neil: i am thinking of your 10-month-old aan adult, what is going to happen then, thank you. >> great to be here. neil: we knew that electing a president would be a gamble, but gambling on whoou think will be
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neil: what if instead, pete rose gamble on this? i bet you he would be in hall of fame right now. a politician is looking at making political gambllng legal. i am not talking about on-line betting sites. folks putting hard money down, to literally bet on the result. what could go wrong? to nevada state senator richard seger bloom, senator, good to have you, what could go wrong? i wonder whether money, forces a result what do you think? >> not as far as election
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gambles, money is already in politics, this is just would be like a side bet on that outcome. they have been doing it nene flainengland for years. neil: so, nevada, the kingd of all things gambling, do you need more gambling revenue? >> well, i don't think it hurts to expand our empire a little bit, and any money we made from this is found money, so, it would go to state coffers. neil: is betting as well, that people who b with their own money, that is not just a poll that is people putting their money where their i don't know not their choice but their betting is. and it would be a far more possible reliable indicator, you would think than a lot of general polls, am i wrong on that.
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>> actually there are polls like that, where they -- people bet just on-line, and. neil: how would they be different from what you would do. >> this would you have to go to a sports book, in nevada, and it wouldn't be internet based it would be for nevada accounts, but you would -- they would say, you know 8-5 obama would win, you bet whichever way you want to go, as money shifted, line would change too. because that end up making money on the bet. neil: now, how likely is this r passage. still a long road to go. >> this is first stable, i just proposed it, you think about it since england has been doing it and betting on our elections for years, i don't seehy we won't. we have two major english companies in our sports book in nevada, william hill and cantor gaming, they are familiar with po their process.
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neil: i know that brits have never gotten a u.s. elect wrong. >> scary but. brits have it rht. >> thank you senator. >> thank you. neil: any time you have to close barges in a country to banks in's country to keep people in the club, you have to wonder, do they want to be in the club. you have to wonder whether we're just spend in thisountry, two government worlds, the same scary world, a world in denial, i'm telling you this is costing all of us a world of hurt. my mother made the best toffee in the world. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would make money doing what i love.
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no. ♪ what's in your wallet? you got any mustard in there? ♪ ah. 4g, huh? verizon 4g lte. 700 megahertz spectrum, end-to-end, pure lte build. the most consistent speeds indoors or out. and, obviously, astonishing throughput. obviously... you know how fast our home wifi is? yeah. this is basically just asast. oh. and verizon's got more fast lte coverage than all other networks combined. it's better. yes. oh, why didn't you just say that? huh-- what is he doing? 72 step back from banks closed in cyprus, ask you about government of cyprus, is staying in european union worth all but
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dissolving your country. like here, we sou would sooner n t, so government keeps growing in growing, all this for hoops that for a club is stupid, any club that i would join, i don't want to be a part of it. >> the e.u. turned into the ser club, when you have bank runs, can you not get message, we have so much crushing debt, we could have same fate. i hope politicians and american people get it, i think that average american does, they are concned. but the yahoo!s in the beltway are okay, no body of is going to touch our money, they don't have to worry about it. we need to cut their expenses
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s and cut their goodies and their pay, how about that? that will never happen. but, rick, onehing youlean from these various national cases, they come up with creative ways to raise money, not necessaly to sieve save mine there is a common link, like musical chairs, after the music stops, something happens. >> we have to be careful how we talk about debt, only person i can think of who does not buy the fact there is a problem is paul krugman. the issue is. neil: do you think you get to a point you win a big prize, you go into reverse and become an idiot. >> i'm not going to touch that. let me say there are two issues that are rel van, one is when do
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we really hit it, the other is how. there are arguments that say we have time before we have to address it and job is should take price/10, i lean in this direction, the other issue is how do we do about it? we have talked about this, you know i'm open to entitlement cuts, but i'm not open to entitlement cups whether we don't look at defense. we have to be fair and balanced. neil: i concur with that, but i don't see that, i see what happened in cyprus, you end up with a government that would have succeeded in confiscating funds from bank accounts, still they are accounts, they will discover to keep up with the spending and all of the debt, this will not cover the bill. now you have to move down the food chain to fit tha bill, these people standing in line will be going off the wall,hat
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do you think? >> i agree. and unfortunately, i don't see anything changing. there is no incentives. as much as everyone says they want to address the debt, and per rick a point, maybe cut defense and entitlement. what is the incentive to do it? if you are a senator, congressman, a year with a lot of defense carattors yo contracl vote against it, if you representta lot of people with social security, you will vote against it only thing that will change, i see two things, tm limits, some sort of balance budget amendment, otherwise debt will continue to grow since it has grown since the days of bill clinton. >> or making me king. >> well, that yes. neil: we could do worse, because you have a great sense of humor.
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i know that money finds safest or mos secure a half ep, and arlie gasparino was talking about we could shorterm benefit, because we're like the tallest midgeet in the room. but money gets nervous, looking at all of the havens, it is the same as everyone under your mattress. >> i don't know how we don't push the panic button now, we are there, rick we're past that. >> we're not. >> yes, we are. >> we're not. >> even paul ryan. neil: he did that at a context do you think there will be an immeate run -- >> i heard what he said, i think he said more, he didn't say an immediate run, he realizes i think, as most do this is not something that happening this minute. he does say, and i don't disagree, that you don't know when it is going to happen. >> that is scary. neil: that is fair? >> that is fair. neil: look how bad it is in cyprus, we're not that bad. >> we're never going to be that
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bad. >> i and with all respect for my friend, i say that is a real crisis that we ignore at our peril. >> i agree, and under paul ryan's proposed a budget. the government does not shrink, just the rate of growth things, you know that number that growth rate will be severely underestimated. so instead of growing whatever his number was, 4 perspir year, probably will be triple that, like it or not we're going to go down the food chain to collect more revenue. >> gary made a good point, dc is disfunction always these folks will lose their committee position, they may lose their office, and he is right about term limits. neil: rehave our sacred cows.
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they have looked at puts caps on defense spending but very little. >> we need more, we need to be radical in that area of cutting. and rand paul, he is making moves as well asthma, as marco . american people are hurtingg neil: where do you see this inning u >> i can tell you, gary's point, i have to highlight, paul ryan is not a deficit hawk. he is a extreme supply cider, he has a record was not being a deficit hawk. neil: at worst most draconian thing he is doing is slowing the growth of spending. >> i wish some republicans would be stronger about it, nobody is going in there being strong, mo

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