be here. rumor has it are too deep to will be here with him. end i think i will take him. gerri: hello, everybody, i am gerri willis. tonight i'm "the willis report." responsible americans versus an irresponsible government. washington pushes to make home loans easier as consumers tighten their belts. also, don't get ripped off by the repair man. e best advice for all those home repairs. and don't look the ticket until you hear what our expert from consumer reports has to say. we are on the case next on "the willis report." ♪ gerri: we will have all that and

more coming up, but first our top story tonight, the consumer versus the government. it is now clear while washington was lecturing everybody else on responsibility, is completely ignored the lessons of the financial crisis. the federal government wants banks to give mortgages to people with so-so credit. a whole reason the economy collapsed in the first place. the rest of america is mor disciplined with their finances. according to a new survey out, so what is going on? joining me now, mark, welcome back to the show. let's start with the problems in washington. the white house saying the health and recovery is leaving too many people behind, especially people who are low and middle income. do they have a right? >> certainly part of the mortgage market is not here that would be otherwise, but the attitude in washington is trying to re-create a bubble rather

than have supplies and demand drive the market. what they are talking about is trying to get people who do not have a good history, this is not about perfect credit people being kept out of the market, this is borrowers who have a history of not being able to get a mortgage. also, the problem washington created like chicago taking up 1000 days to foreclose on a home. if we have a mortgage market to the lender has to provide three years free rent, guess what, lenders are not going to make loans to those borrowers. gerri: one of the interesting things here is the white house wants to put the pressure on the banking industry to land. here's what they were saying today. going so far to say the banks will not face legal or criminal ramifications if they default. they work, they don't work, now the government says we will tell you who you have to lend to.

>> it is really crazy. the lenders get this. for them to make bad loans, they will take losses and the white house response is don't you worry beuse we won't come after you legally even if they are fraudulent loans. we were already looking at potentially having to put 30 to 40 to maybe 50 billion into bailing them out someday. the administration's plan is less pile on more risk, again it is making the prudent have to subsidize. gerri: here's wh the former senior white house advisor haa to say about this. if those who can get a loan are putting down 25% come you leave out the market and entire population of creditworthy folks which constrains demand and slows the recovery. as far as i know, the fha still making loans 3.5% down.

it seems to me they're telling the story they want the world to hear to make it available to democrats? >> this is where they are being disingenuous. fha has a set of standards that are incredibly low. you can have a credit score in the five hundreds, if you have a score of 580, this is not somebodylse's fault, you have a history of not paying your bills. if you have friends or relatives who format category but it is a different matter than to say they should be giving them a loan. the problem is the lenders are responsible enough making fha loans that are that bad. try to keep it to good credit borrower gerri: a lot of banks are making subprime loans. it is happening all over the place. big institutions are at the same old business that got us into trouble in the first place.

federal government wants people to get loans whether they deserve it or not and banks are ready to make those loans. guess who learned their lesson, consumers. 56% of people surveyed by fidelity said their financial outlook went from scared to confuse. they are n confident. th is good. for a 9% decrease their personal debt and 72%, 72% say this is unbelievable, they have less debt now than five years ago. solet's talk about who learned the right lesson i at who is dog the right thing. what do you make of those numbers? >> since 2007, 2008, they have been getting their house in order. sometimes it has been painful, american families admit there are tough choices and got back on sounder footing.

we've increased our debts, getting ourselves in deeper financial problems, so washington could learn a lot from whathe typical american family has done and they have had to tighten their belt and be responsible to make tough choices. time for washington to start doing the same. gerri: they talk about consumers like they are children. we learned our lesson, we know how to handle our money certainly better than washington does. thank you for coming o today. appreciate your time, great conversation. re on this when i'm joined by louobbs in 35 minutes. also, three and a half months since a mad man opened fire killing 20 children and six adults at sandy hook elementary school in newtown, connticut. at least $15 million has been raised to assist the families, but they say they have only seen a small fraction of that money.

now while there are big questions as to how and where the money is being spent, the families of the victims are petitioning the white house for a national compassion fund to help this from happening all over again. a representative joins me now. i have to tell you, i think this is more important, frankly, than gun legislation right now. people from all over the country open their hearts, open their wallets to people in that small town of newtown, connecticut. they are not really getting the money. why? >> first of all i want to say it is as important as the gun control legislation, but i think everybody is behind this. gerri: everybody has an answer on that question, i want to hear about the money our viewers no doubt send them thinking they were going to help those victims, and it hasn't happened. >> that is correct.

very generous american public tonight ney following any kind of a crisis and the fine print and the nonprofit says these will be undesignated claims, they can be used for any purpose and what that typically means is some goes to the victims, but very often times it goes for worthwhile causes in the community. it could be for creating a memorial, afterschool programming, all very worthy programs but that is not necessarily what the public intended when they made that donation. gerri: a lot of people are frustrated they were trying to give money to these families and they can't. do you suggest a national compassion fund? what would that do? speak of the national compassion fund will be activated as part of a national response to a situation. in the basic form, a bank account. not creating another nonprofit

with staff and offices and overhead, talking about a trusted repository, a bank account for people who want to give their money to the victims, received as tax-exempt so the donor gets a tax benefit out of it. people suddenly victims compensation experts. somebody like ken feinberg who is having a lot of experience in coming into these situations with massive amounts of money floating into a community and they determine who the victim base is. the extent of the injuries. did you lose a loved one, so for extenuating long-term medical problems. gerri: i know you have been talking to people all over the

country. you have this petition up at white house.org. help me understand what kind of a response you're getting. are people sympathetic to your cause? yes, we have to fix this, or are you being ignored? >> everybody who hears about this gets it. they understand this is a need. when something like this happe happens, people think they're giving money to the families and they are being helpful. unfortunately that is not always where the money ends up. everybody loves the idea. we created the petition slate threshold is 100,000 signatures and if you get 100,000 signatures in the white house says it will provide a formal response. we are proposing something that is to be conducted at the federal level, people sign on. gerri: thank you for coming on

tonight. please keep in touch and let us know when you get some traction on this, we appreciate your help. >> thank you. gerri: we have a new addition to "the willis report" wall of shame. check it out. reality star chloe kardashian ander husband. the charity they run was set up in honor of odom's mother. it was supposed to give to the research, but the network investigators say not a penny of more than $2 million raised has gone to cancer related causes. they say the money was used to support a youth basketball travel team and a quarter million dollars went to odom high school coach as salary. odom said it is my money. his wife is denying the allegations. i say all of shame.

why don't americans seem to trust big business anymore? and are you sick of paying too much for simple home reprs? looking after you and your money coming up next.

gerri: spring is here were almost here. if it requires a pro reer going to go out and hire a contractor, how do you make sure you're paying a fair price? and make sure the job turns out the way you wanted it to. joining me now, tom, it is great

to see you, thank you for coming in. this segment started with me and my water heater, which is not working that well. so it goes out, my husband brought them to me to take a look at it and they said you have a blown circuit breaker pump and that isoing to set you back $400. so my husband went online, there's a part number on everything and you can find anything on the web. he found that it cost $150. s point was it is a ridiculous markup hoping you don't know and you're not smart smart enough to go online. >> certain types of repairs that are emergencies contractors feel no shame trying to get as much money. >> we want it right away, but we don't have to have it in the next 20 minutes. >> when it comes to plumbing something that has to be done pretty quickly and with those kind of repairs you are more likely to fall victim to that sort of predatory pricing.

>> how do you know? we went online, is that the best thing to do? >> if you don't have a relationship with a contractor, that is the best position to be in so you are not jumping around for an emergency repair job. but the best thing to do is to look at, go online and look at sites that have real reviews of consumers. gerri: i want you to help me with when you hire the contractor, he is going give a statement of what he is blling you for, what the costs are going to be. where can i say look, obviously it is parts for some things, which is charging you for the elements he is using, what else? >> i would look at the parts because it is easy for you to quantify. is it reasonable to have a market? yeah, but not double the price. look at the labor.

sometimes they have the lar assigned to every part of the job but what you're doing three of them at the same time you can reduce that amount you are paying them. gerri: we have worked with a lot of contractors, yorarely see that and it was nearly triple the price. just shameless inflating of cost. what is the best way to approach a contractor about your concerns of a price and you want to be reasonable, you want to be fair. so you can get good service, but at the same time you don't want to get taken. >> i wou say i know you're in business to make a livin i understand that it's your job. there's a lot of labor and vote for something a small project or whatever the particulars are. talking on their level, they will respect that. you have to do your research,

sites like ng list, other reviews of the contractors gives you an idea of who is the best. gerri: i still like knowing what the things cost so my company i know what i'm looking at. >> if you are planning a project, developed your own specs. if you are planning to do some work in your bathroom, you go out and figure out what exactly you want. that is your specification. in the contractor comes in and bid on your price you are not buying into what they want to sell you, you're developing your own specificatns to get an apples to apples comparison from contractor to contractor t contractor. gerri: i like that. thank you for coming in, i really appreciate it. later in the show, scandals erupt at the most well-known universities in the country. is this what parents are paying for?

and if you don't trust washington, but do you trust corporate america? details next.

gerri: big government and big business have one thing in common. americans don't trust either of them.

gerri: whether it is a bad government, bureaucrats run amok for the fat cats on wall street, one thing is clear. the american public doesn't trust any of them. public trust in our government is as full as it was during the watergate scandal, 73% of americans say they rarely trusted.

corporate america isn't off the hook either with less than one fifth of the general public believes business leaders will tell the truth, so what gives? and america's largest institutions change? joining me now, author of "integrity, the indispensable element." a pleasure to have you on the show. this is a question i ask myself all the time because it is becoming increasingly clear americans don't trust institutions of any sort. where the government and big companies go wrong? >> it is true, there's a lot of distrust in america today. but all is not rotting in this country. there are plenty of people and plenty of institutions that are standing monuments to integrity. but all too often in the recent past ther that has been lack of emphasis placed on integrity and as result of that we have seen an endless stream of high-profile scandals, ethical fiascoes, conflict of interest and the likes which have all

been highly publicized. gerri: you say they have been highly publicized, and we covered them on our show. unfortunately what some of these scams do, insider trading scandal, it undermines the trust of consumers, investors, small investors have in the market. they don't want to invest so it seems this loss of integrity has had a bad effect on the country as a whole. >> i agree with you, but we do need to keep in mind everyone does not lack integrity in this country, and not every company or official has no integrity. the scandals he referred to and the publicity surrounding them have had a great deal to do with undermining public trust and public confidence across the

board. gerri: a great example of somebody who handled it right. tell us about that. >> that is a landmark case of corporate integrity. in 1980, eight people died of poisoning upon taking tylenol, and it was believed in the general public that tylenol was at fault. in fact, it was not. but the chief executive officer at a great cost to tylenol and they great loss of sales took his product off the market tirely until the matter was completely investigated. when it was found tylenol was blameless, he brought the product bac back to the market d tylenol sales were greater than ever because consumers could then trust johnson & johnson. it is a landmark case.

gerri: i think there is a lot of take away from that example. the executives told the truth, and they were very well-regarded for that. thank you for coming on the show tonight, fascinating story, fascinating book, thank you so much. >> thank you for having me. gerri: now we want to know what you think. who do you trust most, government, big business or neither? i will share the results at the end of tonight's show. coming up, lou dobbs gives us his take on subprime mortgages 2.0. and how upset would you be if the money you pay for your kids education went to abusive coaches like this? our panel weighs in on the disturbing new trend in education.

learn as much as they can in the process you cannot do a background check on every professor. teacher kids if you see misconduct. gerri: but talk about the rutgers coach that parents would be appalled at the institutions and what you make of that story? >> it is about money. athletics mean money. this goes on all the time just think bobby knight but universities and colleges turn the other cheek because it brings in some much money >> but it doesn't he had three years of a losing

season making $650,000 per year and was a terrible coach. why didn't they fire him whenever first came out? i don't know. >> it is disgraceful what this coach did and it is awful -- awful fusillade fired now when it becomes public. students need to be a the whistle blower. i don't know not one of them came forward to. >> the director of physical development the student's name came forward and he was fired. >> it is not about money? >> they turn the other cheek. >> i don't like sports. i was a piano major if up professor through a metronome at me i can tell you he would we fired.

the state-funded rutgers university is a state university was afraid if they stick action it might come out and become public. >> and now they have a good on their face. gerri: we should have the education panel. [laughter] it you did a great job. thank you for coming on. when we come back how to avoid the travel fees and more on the president's plan lou dobbs tell me why it is a dangerous path. stay with us. ♪

♪ gerri: who want to bring you an important update to a story we first reported monday night. the federal government and turns jumping is dragging their clients to hve dragging their feet paying claims. we spoke to one homeowner who said he was getting the runaround for officials. >> the thing is, there was a complaint line. i called a complete line. they answered it and said they were not taking any more complaints. now, you know, is -- its very frustrating. gerri: maurice contacted us today to say fema and his insurance company, they call him after he appeared on the web -- "the willis report" to say his plan was settled.

because when you get the check. who want to make sure it happens. president obama is pushing for everyone to own a home, even if they cannot afford it. no one in washington learned the lessons of the housing crisis. for more let's bring in lou dobbs. lou, this is one of our favorite topics the -- >> of favorite topic. he combines two of those old adages. the government is here to help and the check is in the mail. i think in the incense of the fha and this call by the obama administration for them to lower their credit standards, it is almost incomprehensible that this demonstration, no matter -- suppose no one is more critical of this a administration and i am, but even i am stunned by the stupidity of the statement. we are just coming out of the worst economic crisis since the depression. it is certainly without any qualification whatsoever the

fault of the agency's that permitted this securitization of mortgages. and they're at it again five years out from the death of the crisis. the. gerri: the administration say we will let holder fee to the fire of these people go belly up. the government is so involved in the banking process. there'so daylight. gerri: that is true. you would like to reserve the fact that this is the obama administration and not necessarily the government. there are a lot of people who know better than these fools. this demonstration is demonstrating incompetence, intransigence because of their alogical impulses and initiative. this is got to stop. we have to rediscover who we are , and this administration is

now functioning and some new levels to be what i marvel at is that the news media takes this man seriously. this is a president who is growing up everything he is touching. gerri: enola like, we have to rediscer who we are. the bailout of fannie and freddie, the housing programs and the money forfeited. you could have bought out more homes than went into foreclosure. >> in 2008 we could test the $1 trillion picked up all the mortgages for every house in foreclosure. think about that. we spent trillions and trillions. we lost seven jillion in the housing market alone. and to think that, you know, that was -- by the way, this is equal opportunity criticism. that was abolished

administration. when john mccain suspended s campaign in quebec to washington . just stood there side job. the white house without a thought as to what to do. gerri: one issue that gets brought up time and time again, people said that government should not be in the business of supporting housing. that is agreed. government should not be the lender of last resort, government should support private property rights and make re that there is an even playing field and lending, and that is it. gerri: that is the traditional role of government and in that sense i agree with you 100 percent. they're there to secure our soety, not there to secure mortgages and sub prime lending in the marketplace. gerri: anyone who can fog americans alone. gerri: some of them are not even fogging mirrors it turns out. gerri: what you have on the show? >> we will be talking about this the north korean direct threa

to the united states saying that they could launch an attack against the united states, nuclear attack within the next thereto. how much of this is, in fact, something that they can carry out, we don't know. as he said, the defense secretary, we cannot afford not to take the threat seriously and r.h. respond. gerri: only a few moments away. thank you for coming on. more to come. my "2 cents more" iron sequestered sarkozy. things you need to hear before your next trip. stay with us. ♪

gerri: to fees have you fed up? clever ways to cheat the system the next time you fly.

♪ gerri: whether you are flying more driving to your next vacation, chances are you'll get nickel-and-dimed the whole way. airlines alone collected more than two and a half billion in baggage fees from the first three quarters of 2012. even on they expect the fees to get worse. senior project editor for consumer reports joins me now. it's great to have you here. you're the man when it comes to this kind of thing. think you understand better than anybody. i feel like with their lenses of the year, feed there.

>> extraordinary at their ability to the extracts you from your money. almost a billion dollars in total fees. and everything from the choice of the seats to when you board to when you check your luggage to even now you pick up your ticket. there is no end. gerri: said thk it is part of there game plan for making money they have all these different kinds of fees. which of these airlines have the worst? >> it used to be the discounters to other low-priced airlines. spirit is well-known for its add-on fees. in terms of what they charge for it. a 12 page menu that you can choose. these so-called legacy airlines that don't, delta, united if you check the details you will find that most of these airlines sneak in fees here and there.

the u.s. to do it baggage. you may actually be charged more . gerri: charged for going to the bathroom. he should travel light. that is kind of obvious. he also said trial love the airline. the last time i tried, they are not necessarily the cheapest. >> and the change from day to day and moment to moment. but the good thing about those as they do some things, like they will let you check at least one back for free. gerri: that is good. critical. when limit is 50 pounds. >> they differ. some have a lower threshold than others, but it can add as much as $200 to will whatou are paying. it is extraordinary. gerri: frequent traveler by year, get a credit card, an airline credit card. gerri: you d't have to be that frequent flier.

you can get perks like preferred boarding : no change fee. that's a big one. if you want to change your flight it could cost $200. so it is that the preferred boarding and maybe even get to check back for free. it can pay for itself. gerri: charging by weight which is amazing. let's turn to hotels. the hotels are notorious, and there are sneaky fees. if you want to stash your bags they may charge you. >> i reported on a hotel fees for years. about a $2 billion per year in history. not just the many bar. you expect to pay five bucks for baggage chips, but you ill pay a restocking fee to have an employer you put that bag of chips back. gerri: that's ridiculous. >> internet service, the ira until the more you get whacked. if you don't cancel a lot of

them are attacking, one nuys service charge. it's hard to back out of the deal. it's rough. gerri: great to have you here. thank you for coming in. >> my pleasure. gerri: we will be right back with our answer to the question of the day. do you trust more? my "2 cents more" and why he is heading to a white house while groups are being turned away for taurus. don't go away. ♪ with the spark miles card from capital one, bjorn earns unlimited rewas for his small business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake up call.

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gerri: earlier i spoke with other jim thomas to told us why americans don't trust governments or corporations because they lacked integrity. what do you think? could you trust more? the government or big business.

here is with some of your posting. big business, not even close, that big by winning customers. those to blame for this country's problems. when will the american people wake up? we also ask the question. no one said government. 80 percent said neither. that is telling. finally, your money pays for the white house, but their money helped the current occupant get elected. that is why tours are no more, but the obama's hosting a star-studded ccncert this month. take place april 16th and feature stars like out green, queen latifah, cindy lawford, justin timber lake, the people who are supporting the government, not to mention this week's easter egg roll went off as planned. once again, this administration's priorities could not be more of a walk. that is my "2 cents more," and that is it for this tonight's "the willis report."