tv The Willis Report FOX Business March 27, 2013 6:00pm-7:00pm EDT
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to the name kleenex. >> five seconds. that's all the "money" we have free today. we will see better tomorrow. ♪ gerri: hello, everybody. tonight on "the willis report", the retailers think americans are just as stupid? apparently they do. wait until you see what one of the biggest store is doing now. also, shops are falling your every move, and not just on line. even the stores manikins advice. another celebrity goes bust. millions of dollars in back taxes. why these deadbeats are getting off the hook. "the willis report" is on the case.
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well, an about face by j.c. penney is our top story tonight. the former department store giant is backed offering sales and discounts hoping shoppers will notice hikes in sticker prices. with more on this, an executive director of pnc venture rubin the president of talented blonde. all right. i have been looking at the story of date. here's what understand. marking a price is only to martin down. they think we are going to notice? >> oh, how the mighty have fallen. last quarter, we sat on the same call every other analysts said on and listened to him talk for ten minutes about how they don't need to mark up things to martin down. we just don't do that. we do everyday low pricing that is fair and square. basically this is an admission saying that we don't really know we are doing in a kind of lost. rear going to go back to marking things up to market these down. gerri: i am blown away by this.
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so a former apple executive. the guy who designed their stores, famous for that. he worked at target. what a difference a year makes. so many high hopes for bringing in fresh knew labels and brands. it is not working. what is the feature for j.c. penney? >> dismal. [laughter] gerri: okay. >> i will always give it to you straight. it is dismal. said, the death of a great american brand. the problem is detect there eye off the ball in the consumer is not shopping there anymore, they're trying to build this temple and recreate targets where people are already shopping a target for reason and j.c. penney lost their customer and they have fallen and cannot get back up. end of the right people doing all the right things in this is not resonating. gerri: this reminds me a lot of netflix. there are going to charge people for getting out the hard copy to the dvd in the mail and taking an online. people he that.
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do you think that j.c. penney could get a similar backlash? >> i think they absolutely will. they are praying for daylight with this new brand from canada. it is great, innovative, moving the needle, but why? because every other brand that they have is a terrific. so by default they have to do something. gerri: so i just have to read a couple of quotes. back when they were doing fair and square as everyday low pricing. things like -- this is the ceo, ron johnson. coupons are a drug. we have to wean them off of this and educate consumers. i guess education is for the birds. >> get off the junk commentary. gerri: these coupons are going up to customers right now. members of our staff just got them at home. our viewers tonight are seeing these coupons in the mailbox, partly reacting to them.
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one quick question to finish up before you go and come back to is it possible that the middle-class is getting stung here? this is one reason that j.c. penney is having such our time jack people just are not seeing any kind of income increases. the job market is tough. what do you think? >> everything you said is that on. we have salaries that are decreasing, prices rising, gasoline rising, no jobs out there. middleclass is really trading down. shopping and dollar stores, not shopping and middle-market stores anymore. they are strong. it's like who moved to my customers. it's gone. gerri: keep that attitude. we will come back. you will be joining our panel for the latest controversy let later in the show. but shopping, our next story sounds like science fiction, but it is reality. retailers track is on line, but now they're doing it when you physically walk into their stores.
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it is like a theme from that steven spielberg movie minority report were tom cruise walks into gap. ♪ >> hello. welcome back. how did that tanker got free? gerri: not quite at routine yet. hidden cameras with facial recognition that no your age, sex, even your mood, even the store mannequins are watching you. consumer reports have just completed an investigation of the issue. the senior project editor joins us now. welcome back to the show. love having you want. what are we looking for? wire a spying on us? >> so funny. we used to read the book and3 talk about 1984. everything is done far worse than that. we are used to being lost when we stop.
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cookie's track or every online move and salespeople falls around the stores to see if we are stealing, but now retailers are actually taking spying to new heights. video cameras are recording our every move from right to iraq, what we stare at, for how long, our facial expression tracks will real looking at. you know, we can sell. what is going on here? it is all about marketing. you can think about nefarious things. it is trying to develop, not trying to got to the bad guys, but get the good guys to spend more skin, see what you respond to, maybe even what you sell the when you see a certain kind of type of clothing. it is a total thing about marketing. gerri: what i here and what blows me away is even when you're looking at a shelf there may be a little camera their recording your eye movement to see what brands you stop that, where you delay, what really catches your attention. i mean, i sort of feel like this is an invasion of privacy and want to read you wal-mart's
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privacy policy. and i have to tell you, i have never seen a privacy policy like this. they have them. kylix your information when you visit, websites and in stores such as via video cameras. is this legal? >> well, that is the thing. it is pretty much legal. this is there private property. they monitor you in the parking lot. shimano your license plate, and the car you're driving, when you're at the checkout the aclu are online, what you're buying, what you're paying what amounts are spending. you basically sign your rights away without having to sign anything. when you're online a new shop, how many of you read those disclosure statements? come on. nobody does. when you get to restore you basically -- companies are not doing a good job of disclosing. the president last year proposed a bill of what rights that would require them to, but is just a recommendation. gerri: i want to talk more about
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this privacy issue. you must -- and the biggest mall operator in the country, personally and identifiable and fell in order to use the free mall wide wi-fi network. any information to many of permission we collect may be retained for an indeterminate. of time, have a debt of this? i don't want the knowing everything about me. >> in fact, if you cannot opt out, how do you about technical? the customer service says, listen to might want to be tracked. stop bothering me. with cell phones, smart phones, they're terrible because once you have the internet activated the only contract friday just from having the cell phone on the the contract your internet -- or you go from place to place , store to store, how long you stay there, what you're buying, you're doing online price comparison, this stuff. the only way to opt out is to go to another place or maybe they aren't. you have to assume that you're
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being watched, and there's really no practical way to get out of it. gerri: but by carrying that cellphone you really are opening the door to them watching you. on the other hand, there are times when they look at you with cameras off. tell us about these manikins. >> they are called pinhole cameras and around a long time. you like a stack of jeans and go up and down the shelf looking at this stylus nest island may be here is a camera you cannot see. again, it could be your response to your mr. response to what you're looking at. i wonder if that is my stuff. they can do this. the mannequins, what you're responding to, maybe they target and add to you, especially if you have that smart phone. she likes this type of dress. i will put a coupon for $20. is all designed to do that. it's creepy.
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gerri: sneaky, and i feel like they're making money off of my walking into their door and it blows me away. i guess i will try to find a way to opt out. thank you for coming on. great to have you here. >> my pleasure as always. gerri: unbelievable. a fox business alert one week after recalling its pricey black in yoga pants, you should be able to return them with no problem. you remember the answer see through. this after a new york post story on one woman being asked to bend over to prove that the pants she was trying to return more come in fact, to share. i would not do that. the company said no demonstrations are needed in order to get your money back. they're just saying that. a lot more still to come including advice on raising a child genius. could your child be the next multimillionaire? and three major companies and three pretty controversial ads.
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♪ gerri: nike has a new ad, and it is not a winner with everyone who has seen it. declaring winning takes care of everything. appropriate. with more on this, president of working solutions, director of public notice and with us. let's start with you. i want to you what you think of this. >> i am a big fan, so let's just get that out there. tiger woods has done a lot for the game and everyone has their own personal problems. sometimes i think we read too much into it. gerri: but -- >> it is a little hard.
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they love a comeback story. he was on bottom. a lot of it may have been because of his personal issues, but he has come back. we have seen him, you know, starting at this for the past few years, so it is a really big comeback story. they want to take the advantage of that. gerri: and look at this. i am a golfer. you cannot help but love to watch and play because he is so good when he is on come on, rolling. this is sort of offensive, i have to say, is this what got him in trouble in the first place? any behavior was excusable because at the time he had a great career? >> i think nike is saying what he is thinking. the love controversy. they're right. people that heated and hated him, and that he is winning people that love him are going to watch him. say what you want, it does not offend me. i think it is par for the course . gerri: par for the course. all right.
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what do you say? >> i am a mother first. a 15 year-old son. also a business owner and president of a business. winning is great, fabulous. we all love it. i'm not so sure it's everything. to try to chilly 15 and 60 year-old who are very competitive in athletics and academics that winning is everything is a tough message to deliver because it is certainly not the truth. gerri: other things count to, especially if your mom. want to move over to a ford ad that has gone nuts and attention, scantily clad women bound in the back of a car. this was a mockup. it was never shown anywhere. i will start with you, your reaction and are you surprised? >> this was an ad that was going to be run in india which should draw more concern for americans in the world as well that there would be able to put something out like this considering the big issue that they had last year with rape and it is such a big issue in that country.
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completely insensitive and something that should not be tolerated at all. it. gerri: well, they apologized and the ad never appeared anywhere. it was produced by an indian company. it never came to market, not here. it was planned for this market. what do you say about this? ammine it is kind of ridiculous and out there. he thinks this is tasteful? >> absolutely disgraceful. quite frankly there were shocked. they have been shipped chopping a lot of jobs, so this is obviously someone who knew that there were going to be led to the unemployment line. the mock up. someone in very poor taste. any time a woman is nude and in bonn this is disgusting, nothing that does anything for bland or wanted. the opposite of shock advertising and no one is winning. gerri: stupid advertising. victoria's secrets. they have a new ad campaign
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which is highly controversial, not only for the pictures, bright young things, but who they're targeting. the company says we are not targeting teens and that passes says we're targeting teens. one of the pictures i saw showed a t-shirt, very shear, low cut and said can enjoy this you. this is going to go to at least college students. what to you make of this? >> i have boys and i am certain there would like it. no telling what they would do, but i have to tell you, it is beautiful. the colors are fantastic. it is bright. the words on the apparel is disgusting. call me on the bottoms. no, my goodness. i cannot even imagine. it is really, to me, very distasteful and that think they have a fabulous product. i think maybe they have really, certainly kind of cross the line here.
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the girls in the absently did not look like college girls. [laughter] gerri: are we just being too uptight? is this okay? we are just too concerned about young woman? >> i don't think so. i think it is about reinforcing a stereotype that women and they're to be seen and not heard and to look pretty and to be picked by boys instead of them doing the picking. i just think it reinforces a stereotype that as of women back and that we could be doing more if it were not playing into this stereotyped and could be in more positions and more offices and marbles. gerri: and the company is making money off of the message. you guys were great. thank you for coming on. appreciate your time. >> thanks you. >> have a great evening. gerri: youtube. thank you. coming up, while one celebrity may not have to pay taxes. is your child a genius to back this child's mother can say yes at presold and that he created
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so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. plus, my local scottrade office is ti trade like me. i'm with scottrade. (announcer) scottrade. ted "best investment services company." gerri: only 17 years old and just sold his company for millions. howdy you raise a kid like that? in nature or nurture? next.
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not just markham also business savvy. here he is talking about his invention and the big pile of money he just made. >> keep it safe. the money was not the main motivation. if i was to do anything with the money it would be angel investing are looking to help other young people create their own. gerri: to you have a little einstein entrepreneur running around the house? joining us now to make radical psychologist. welcome to the show. good to have you here. >> a pleasure. gerri: first of all, nature or nurture? obviously this kid is super smart, right? can mom and dad help? >> certainly they can, but it is a combination of nature and nurture. it is the age-old controversy that we have had for a long time a feeling is now that nature is
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51 -- nature is 49% in nurtured is 51%. so there is a lot of things that parents can do to widen the scope of their children's intelligence. they cannot make ingenious if they don't have the natural ability. gerri: the first signals that you might have a genius and enhanced? every parent i know things they have one. in reality, what are those things that tell you, yes come he/she is really smart. gerri: a couple of things that define a genius to know whether we can actually bottle that are not is in a more of this kind of thing. but the top 2% of iq from either 140 or 180, the broad range, considered the potential for being a genius. also that bit of creativity to the curiosity, and the ability tests have the ability to see something in connect the dots
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were no one else has been able to afford. gerri: as a mom or dad to value in paris that? >> there are ways you getting courage and push the limits of your child's ability in any case , no matter what the iq of your child is. one of them is to ask open-ended questions. don't ask questions that involve the yes and no questions but like, what would it be like if we took another route to school? what do you think that we would end up? where do you think the sun would be if we were across the street? gerri: i can't even get the answer to these questions. >> they encourage a open ended dancers. it encourages the child to think about possibilities rather than to create a concrete yes no kinds of things. gerri: one of the questions i am interested in and i know my friends are worried about, the ipad. a very popular product that everyone seems to have in there household these days.
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i worry about young kids, and when i say ammine under two years old. worry that somehow it will turn the child's brain to jelly. gutter bad? >> i don't think that will happen. one of the things that is so terry salient for me in looking at this young man, this 17 year-old is that he was born with electronics. he was born with a computer. his brain was never wired to thinking different ways. his brain was wired for electronics right from birth. when i for started to use the cell phone or in ipad or computer it was a new thing for me and took me a long tiie to figure out how to learn it. my son is born with it. a different kind of brain waves, a different kind of brain root. so i think the ipad is part of our society. we will not eliminated. gerri: use it right away. >> that might as well use it. it will probably look for colors
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of one. then it will figure out patterns at another point. we don't really know how the brain will develop an electronic age. we really don't. we don't have enough of a distance that. gerri: early indications from the steady is it is a positive, as you say, as the parents should not be too afraid. fascinating these kids are entering a world in a totally different way. fascinating to watch. thank you for coming down. appreciate your time. >> thank you. gerri: of toledo, we want to bring your latest developments in the story we have been following. a glitch in h&r block's software, which will do about that, not as bad as first reported. they say refund delays will be shorter. in fact among some of the 660,000 taxpayers impactive have already have their refunds. the delay affects those who claimed education tax credits and only those who filed returns in february. again, this short delay was the result of a glitch in the h and r block software, turbo tax
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than $10 million in back taxes, 10 million. in a filing she said she earns nearly $21,000 per month in income and spends 20,900 on expenses. talk about not living within your means. the lack of funds is not the reason she has not and probably will not pay the ads. according to one bankrupt attorney she met have to pay anything because the tax obligations reach way back and most likely would be discharged will. she stated she was $7 million to the irs from the 90's and more than 3 million in business taxes to the sip of california making 20,000 a month. let me get this straight. she does not have to pay when she was because she took too long debate. how does that make sense? the message i'm getting is if you want to pay your taxes or lease the penalty -- penalties and interest, just don't. if you wait long enough, you don't have to, especially, especially if you cali would
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come. that is what i think. now we want to know what you think. celebrities get a free ride on taxes? log on. already inside of the screen analysis of the results of the end of the show. unbelievable. well, you will not get a free ride on taxes any time soon, especially with obamacare. held -- health and human services secretary admitting some folks may see their health care costs rise. no matter, they went on the defense and said premiums will go down. let's check in with someone in as the answer. president and ceo. thank you for coming in the show. you know, we have this study from the society of actuaries this says insurers will pay up 32% more for medical claims. why is that? >> well, as part of the legislation, there are benefits that have been expanded their required to be in these products , much like going to buy a new car. a few of the upgrade to leather
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and a better sound system you'll pay more money. health insurance is the same thing in the does not matter whether it is being underwritten by private companies, which is what obamacare does or government underwriting it. the more you put into a parked the more the cost will be. it is pretty basic economics. gerri: to they have a right or maybe higher? >> welcome and is hard to know. so much speculation. people in the administration saying that costs may go down. part of the promise was that costs would decrease. others saying it will increase. we will find out. what is really about is having a lot of people in the pool. fundamentally insurance to all other health insurance automobile insurance, homeowners' insurance, it's all about how many people participate. gerri: but does it pay to participate and pay. if you don't pay the cost does not go down it goes up.
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and it is the government paying your tab, the cost goes up for taxpayers. let's be clear. and don't want to be political, but don't want to put across the message that we think obamacare will burn as down. an update is true. >> away to bring costs down is to have a lot of people participating in what is called the pool because with health insurance you will have some unhealthy people who are higher utilizes. you need to counterbalance them with more people who are healthy you are not utilizing a lot. gerri: that does not answered all questions. representative back to the issue we just talked about. it is not about how many people are in the pool but how many people pay. and if you are not paying, if you're relying and taxpayers to pay your tab your now reducing cost in any way for society. you might be reducing your own cost. >> but that is why we built in the legislation. 400% of the federal poverty level. gerri: that's right.
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>> and not defending the legislation. that is a fact, the law of the land. it was contested by the supreme court. gerri: before you go like to get to the results of your own survey because i want to talk about this because i think it is interesting. your own survey about increasing cost, premiums for health insurance with comprehensive benefits. tell us about that. >> what we did was took the benefits being mandated in the affordable care act, the products today. what we found is that those products are more expensive with that benefit and products that many people are buying. you could surmise from that the people are going to be paying more in prices will go up, but want to come back to an important point which is you have to have a lot of people in the pool, and part of this legislation builds government exchanges to get people and. try as they may come a big job to do this. i happen to run the largest source of individual health
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insurance in the country. we see 15-20000000 americans per year. what we want to do is help. i am perplexed because we're having challenges with some states and the federal government letting the company -- gerri: it looks like we're going down the political path which i don't want to. i appreciate having tonight. thank you for coming in the shell. sometime we will come back and talk about the facts and figures and not the politics. thank you very much. >> who would love to. thank you. gerri: not just health premiums are going up according to most sources. the head of fema says we should expect a rate hikes. he is talking big like going from paying hundreds of dollars per year to thousands. blaming congress for a new rule the program must pay for itself. increases will be phased in over three to four years. watch out for that. when we come back inside the new york international auto show. we were just there. even james bond would be impressed.
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♪ gerri: well, if you are an investor who likes to live life on the edge you want to consider growth mutual funds. they can be risky and volatile, but they can also have above average returns. senior equity strategist joining me now with the list of top growth mutual funds. good to see you again. i want to start with this, why growth and why now? >> okay. when you hear the word growth, two words should come to mind, elevated risk and no dividends. no dividend, higher risk.
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growth is good because it is one of those things, if you are young grim investor with more risk appetite it allows you grow your capital, keep up with and place in another thing we are not getting like interest rates. so in areas you should look get command least for part of your investment our portfolio you want to grow. right now is a good kind to allocate a portion of your investments. gerri: five funds. interesting. here is what i am wondering. if i drill down into each of these. 15 percent, and will i be overloaded and some of these that have done so well? >> you will not have that. to be standouts, but let's clarify one thing. mutual funds are actively managed, most of the mark, looking over the portfolio making sure you're not getting too heavily weighted worth there is a fundamental change. gerri: some of these guys don't care about that. the overweight because they're
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performing well. my guess is that you did not pick funds like that. >> no. and that's a really don't. when it comes to managers, believe there not there are all different. i agree. but there is one year. the growth fund, i like it. it's well the verse. it's not going to invest in companies like apple, a smaller capital. gerri: sell the u.s.a. a. 18 percent. is it over? of the debt? that is pretty darned good. >> it is. here's the thing to remember about the returns that we have seen. the past rally of the past six months has been led by small caps. if elected the russell 2000, small-cap index, trailing along. i think it can continue. i do believe we will have rocky times ahead, but i think small caps will lead. people sick of apple, intel. they want to look for something
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different. it might be a place to look. gerri: a lot of other interesting names that we will show transamerica. franklin flux cap, all interesting. after leaving there. thank you for coming on. great information. appreciate your time. all right. on this business stay back in 1790 that harvey kennedy invented shoelaces. even though they had been around for centuries registered and we see two and a half million dollars. pretty good. today they're made of various synthetic fibers which are more and more slippery and unlikely to come undone -- more likely to come undone than those made from traditional fibers. 144 shoelaces produced every 30 minutes and there are almost 2 trillion ways to lace issue.
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annually u.s. consumers been taught to billion dollars on footwear with the average american buying seven pairs. modern shoelace. 223 years ago. i don't buy this kind of shoes anymore, especially if you travel. lace them back up in line at security. still to come, my "2 cents more" on my pitch for a new reality series and they take you inside the new york international auto show with a look at the best luxury brands out there. are they right for you? ♪
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market looking to buy new cars, so we polled 12,000 consumers in the market for a new car and asked them, important about these brands and rent them and get a sense of which brands the most important. >> lots of detail in these awards and in the studies. you guys are known for nothing but data. i want to talk about the luxury car words. what came out on top and why. >> the overall winner was bmw. as we have seen in terms of trust and performance, this is what consumers said was most important. expert to of after polling customers we found that bmw came out on top both in terms of performance, reliability, all those factors that work ranked highest among the consumers. gerri: any surprises in that category, the kinds of numbers command permission to use soft. >> it actually lined up with what we expected to see. polling in talking to consumers all the time to get the perspective on the marketplace and what they're looking at.
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not too much in the way of surprises. gerri: the best darling category. some of us in the industry. >> they came up with a resounding answer to the crisis. so there was the better looking cars. >> i know people buy trucks, they love tracks, huge sellers. >> great incentives. toyota was the brand that emerged. it's kind of interesting. those owners are quite loyal and
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really love that track, not to mention that to, which is the only that is dominating the market right now. that helps. gerri: i wonder what the people of fort think. >> that is a great question. fantastic product, but we as customers. they point to this there. gerri: what is interesting is that they kbb people would be people care about value and even have a resale board, resale value award. that is the data you are known for, how well these cars retain their value, what came out on top? >> that is exactly right. known for used-car values in getting a sense of where they will depreciate. and we found there was a japanese brand that came out on top. the best overall brand in terms of how the vehicles are expected to hold their value. gerri: right here. >> here in the right spot. the number one overall. alexis won the luxury brand. gerri: thank you so much. interesting stuff and appreciate
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your time. >> thank you for having me. gerri: you have to tune in on friday for the weekly in-fashion segment. we will take a look inside some of these top-selling luxury vehicles with bells and whistles, including one car which has seats that massage while driving. chemical is that temecula want to miss it. it will cost you more to drive these cars depending upon what state you live in. tonight's top five, the hottest auto insurance rates. number five, washington d.c. number two, michigan, the police said the guarantees lifetime
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personal injury protection after car accidents louisiana, more bodily injury claims than any other state leading to a $2,700 annual insurance bill. the national average is about $1,500 a year. in maine is selling 9304. pretty good. we will be right back. ♪ we went out and asked people a simple question:
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how old is the oldest person you've known? we gave people a sticker and had them show us. we lened a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these ars. ♪
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i work for 47 different companies. well, technically i work for one. that company, the united states postal service® works for thousands of home businesses. 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. gerri: more than $10 million in back taxes. some suggest you never have to pay. that is because obligations are so old they are considered is chargeable. celebrities get a free ride? here is a sum of your posting on my facebook page. no.3 my husband and i pay our taxes. what does this seem like people who can afford an accountant cannot seem to pay their own. charles agrees no and that goes
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double for politicians. we ask this question. 1 percent said yes and 99 percent said no. agree but you. you got it right. finally, more waste, fraud and abuse. this time it is to the tune of $8 billion. a government watchdog group said the u.s. government owns summer between 55 and 75,000 vacant properties. that seems like a wide gap is because nobody really inventories these properties. uncle sam cannot even tell you how many buildings he owns. despite the huge tax selling these properties is not easy. federal law states that have to first be offered to other federal entities followed by state agencies. and the other problem is that government is afraid to sell because officials may need the office building sunday. this same excuse if you are on an episode of orders. i cannot get rid of that piece of plastic. i may need some time. maybe they should set a reality show.
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