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tv   MONEY With Melissa Francis  FOX Business  April 25, 2013 5:00pm-6:00pm EDT

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melissa: i'm melissa francis and here's "who made money today". gold bugs. they got crushed this year but they finally have something to celebrate today. gold scored its biggest one day percentage gain since last june. physical demand and global economic concerns helped fuel its 2.7% rally. but losing money today, anyone who owns jetblue. as if the flight delays from the faa furlough weren't bad enough, its first-quarter earnings missed expectations, rising costs bit into the company's bottom line. jetblue shares sunk close to 5% on the news. not good. for the year though, the stock is up nearly 20%. so you got something there. and revving up a big money
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game the ceo of general motors company 2012 earnings fell compared to 2011. dan beinger son his 2012 compensation jumped 44% to $11.1 million. not bad for a company once called government motors. even when they say it is not it is always about money so we all know sometime is money and none of us have any to waste. what is happening to travelers at airports across the country, certainly has airline industry in a tailspin. rich edson at reagan national in d.c. rich? >> airline industry, air traffic controllers, travelers and some members in congress who are trying to work on a fix to try to avoid these furloughs so they don't lay off anymore staff in air traffic control
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towers. it has ad had an effect according faa. flight numbers because of furloughs, 422 delays. 36.7% of entire delays in the system. monday 1221, tuesday more than a thousand and wednesday 863 delays for about 29 to 29% of all delays in the country. now there are a group of supports working on a bipartisan proposal would allow the department of transportation to take funding elsewhere in its budget to come up with $200 it will take to make sure there are no more furloughs. some members in the house are open to it. >> i find that less onerous than within sequestration. but you know what? we're just fooling ourselves if we think that we are doing any, american people any favor by not finding a real solution. >> we're willing to look at what the senate is going to propose but i believe we don't need to pass
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legislation. if we were to it should be limited, very, very limited and in actually directing the faa to use the ability to, flexibility they have presently to not have these furloughs which are again causing great harm to our economy. >> and that's been the republican argument on all this. they say the faa does have the ability to take from its $16 billion budget the $200 million in needs to do this the administration says the law did not give him power to do that. you're seeing movement to congress. if they do reach a bipartisan compromise and it would have to pass the house. there is a bit of a time issue, melissa. the house and senate are supposed to be out all next week. that gives them one more day to solve this thing or we're stuck with more delays at least for next week and a half or so. melissa: or the faa could have made a sensible plan year ago when they saw the thing coming. either way. rich edson, thanks so much. >> thanks. melissa: america is grounded. almost seems like forces are
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conspiring together to make traveling as difficult and as painful and as expensive as possible. from the budget cuts to forced furloughs and now to airlines jacking up flight change fees to $200. did you know that? there is nothing good about the this especially since the travel industry supports one out of eight jobs in this country. joining me is roger dowd, president and ceo of the u.s. travel association. welcome back to the show, roger. let me ask you, -- >> good to be back, melissa. melissa: why should anyone go out and buy a ticket right now? >> you have to go out and buy a ticket right now because travel is what makes our world go round and what business goes round. melissa: i can take a car. go somewhere closer. when i hear about delays and furloughs and i hear they're raising fees at the same time makes me think maybe i should vacation somewhere closer where i can take a car? >> people taking shorter trips are doing that. i have heard dialogue at the train stations saying i took the train because i'm afraid of these furloughs. we really have to be careful
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that economic impact is huge to the economy. we're talking $9.3 billion. 87,000 jobs. 1.5 billion in taxes. so it's insane not to find a fix. melissa: no, i mean you did a lot of research because the economic impact of this is much greater than what we're seeing in the furloughs. tell me more about those numbers. where do you get for example, that one out of every eight jobs is supported by the travel industry? how is that possible? seems like a big percentage? >> it is not. this is such a labor intensive inindustry. the industry alone employs almost eight million people and another seven million people make all the vans, the signs, the flowers, the bakers, all of the things that go into travel. so it is and it is everywhere. not just in one pocket the country but every single in the community in u.s. is affected by travel. our industry has been growing jobs faster than any other industry for two years. you don't want to harm that at this point. melissa: you don't want to harm that but at the same time, when you see airlines are sort of adding insult to
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injury. if they raise the price of a change fee when passengers are already so frustrated about everything that is going on, is the timing on that wise? >> i don't think, from everything i know the two are related. airlines have to look at their business model and make their decision. melissa: i don't think they're related. i think it is coming at a really bad time. united quietly boosting its fee to $200 from 150. at the same time us airways group is now charging 300 change fee on some international tickets. they're doing this. maybe they need that for their business model but maybe they should think about the fact they're looking at lines on television and saying i don't want to travel anyway? >> we have to leave the airlines to do that because the consumer will go to where it best priced and make those decisions the that is up to the airlines. but the main thing, if you look at, we're talking 6700 delays the faa says will be probable. the worst day ever in the last year was july 26. we had 3,000 delays.
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you just think of the magnitude. now we're going into summer and spring storm season. just makes no sense. we have to get this solved. melissa: all this was avoidable. we had the former inspector general of the department of transportation on and said when all this was coming down the pike it would have been easy to make a plan to cut in smarter places rather than doing it uniformly, or rather than cutting in places like new york and l.a. where you have a lot of traffic, right? we could have done this a lot smarter? >> every business in the world, whether you're a small startup or great big corporation says what cuts can we make if we have to that don't harm our customers. melissa: exactly. >> same thing. we're looking at travelers and saying, text delay to 877, 877. we'll get to word to their congress. they are trying to work this out and i applaud that. melissa: roger thanks for coming. >> i appreciate that. melissa: two more embarrassing examples are coming to light. irs shelled out more than $11 billion in faulty tax
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refund last year. faulty tax refund. that is according to a new report by the treasury department's inspector general. the bad refund were paid out via the earned income tax credit. the report says 21% of those payments were faulty. that's not even the best part. the irs mismanagement is violating federal law. the rate of errors on these payments isn't supposed to exceed 10%. whatever that means. nice work. stupidity loves company. the government will blow almost $900,000 on fees for empty bank accounts. nearly 14,000 accounts are open. they were once used to provide federal gant dollars but no one filled out the paperwork to close them. so there you go, your tax dollars literally being spent on empty accounts. speaking of summer travel, bathing suit season is right around the corner. that means it is diet time. nutrisystem thinks it has a leg up. it just announce ad major strategic partnership to sell its five-day weight
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loss kits in nearly 2,000 wal-mart stores. there is a lot of competition and a lot at stake here. the u.s. weight loss market has revenues of $61.6 billion. that was last year alone. here in a fox business exclusive, ceo. welcome to the show. why did you pick wal-mart? >> wal-mart is the largest retailer in america and the world. so we're happy to be partnering with this new product which is a five-day weight loss kit. which is different way the way we do our typical program. we sell our program in 28-day, 28-day program. melissa: right. >> this is $45 kit in wal-mart that is five-day program. melissa: are you going for a lower price point or a consumer added different price point if you're going into wal-mart? does it make a difference? >> it is a similar price point. our typical program is 28 days for $250. this is five days for 45. this is different price point but in differ chunks. trying to make the program more accessal to consumers across the whole gamut.
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melissa: at the same time you pulled back, recently selling single items in kroger. is this a change in strategy? >> i think this is a return to our strategy, back to basics approach. nutrisystem is a weight loss company and we are a weight loss program. this is a program, this isn't a single item program. it is a program that guaranties weight loss. melissa: how does the economy impact your business? >> same as every other business. i mean it is consumer discretionary spend but the economy, if you look what is happening with affordable care act and other things you see that the obesity all those things are going to rise. customers will have to be more accountable. so i think we're in a good spot. melissa: you think affordable health care helps your business? >> i think it does in many ways. we have this product which is for the average customer looking to lose weight, 10 pounds, 15 pounds, whatever it might be. we have diabetic products. i think the diabetic market which is often a customer that needs to lose weight we're well-positioned. melissa: what i think is funny by the diet industry
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if your product works you inherently lose customers. so how do you battle? if it works real well i lose the weight and don't buy your product anymore. >> unfortunately many people need to lose weight and people need to lose weight multiple times in their life. we feel we have a product that works for them. >> other thing i think is interesting in your industry is the celebrity spokesperson. seems to me every time someone gets pregnant the first thing they do is sign up for weight loss afterwards. i noticed you signed up melissa joan hart. she is lot younger than people i've seen you can haing nutrisystem in the past, whether terry bradshaw or marie osmond or dan marino. did you decide to go with someone younger on purpose or how did that happen? >> we were looking for slightly younger celebrity. melissa joan hart is terrific. she is authentic. somebody we feel our customers relate to. we are happy to have her on the team. melissa: how important are the celebrity spokesperson? they are everywhere now? >> it is an important part of what we do.
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we have obviously marie osmond, terry bradshaw, dan marino. melissa joan hart is a great add. we use real people and mix of celebrities to talk about our people. melissa: how do you police that? when i see the people as well, i wonder are they taking diet pills? are people coming to their house every day as trainers? you don't have control over that aspect or you sign some keep after agreement with them? how does it work? everybody is always wondering. >> celebrities lose weight on our product. >> that is it? you don't limit them what else they could possibly do? >> they take our products and i believe that's what they're doing. melissa: okay. beyond wal-mart what is your next step after that? are you looking for more partnerships in other stores, or do you want to drive more sales online? where does your strategy go from here? >> i think there is a lot of opportunities. we want to be everywhere. retail opportunity is exciting and successful with wal-mart and main product and die betic product. we're looking to expand and more work with wal-mart and on tumts with other
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retailers are opening up especially looking at health and wellness sector. melissa: right time of year. that is bathing suit season. good luck with that. >> thanks so much. melissa: up next, earnings are out but the real thing everyone is talking about, amazon's new position in the streaming video wars. going to tell you all about that. plus, would you dive head first into housing? if you didn't have to make a down payment? some experts are saying they shouldn't be necessary anymore. hmmm. stick around to find out why. more "money" coming right up 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 learned 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 years. ♪
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♪ . melissa: we just got amazon's earnings about an hour ago. mix for what everyone is talking about isn't so much the numbers as move in online streaming game. amazon is trying to compete with netflix by offering own original programiig on the prime service. now there are rumors that amazon will start selling its own video streaminggbox to compete with row cue and apple tv. let the video streaming war begin. today's money power panel is here to break it all down.
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a retail analyst. american wealth management president and a stifel-nicolaus's portfolio manager. thanks to all of you for joining us. chad, let me start with you? because weak sales forecast is what caught a lot of people's attention? >> i think amazon is a very strong company. it is consistently grown, consistently profitable and well-capitalized in fact we have a price target around $335 for the stock for a 12-month forecast. earnings were growing, revenues were growing, by 20 plus percent. we look at it as much more of an optimistic look. melissa: i guess. but they missed their revenue from the estimate. they weren't even, they weren't able to get to what the street was expecting? >> right. >> i know that--. melissa: leif, go ahead. >> sorry. >> i hear that but at the same time here is company that continued to expand their revenue. even during booed times. 2001, 2002. i mean maybe not as great as
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we hoped it would be, but still in the plus. melissa: what worries me about this company they go with the low-priced leader in order to just grab with market share. i wonder at that point, at some point that becomes a very tough strategy to keep going. kindle, for example, sold basically for nothing, in order to get people in the door, amazon prime, sign up for the year. free shipping. creates a lot of volume but does it cut exactly what they make? >> exactly your point. all this capital expenditure on the lower priced product like the kindle and fire will hit it where it counts. that is the margins. that is shrinking margin and you will not be able to see that return on investment. they're spending so much on this new technology. you just mentioned that there were about possibly roll out this new box. melissa: right. >> for streaming video. they're investing in a lot of their apps as well for streaming movies. that is a lot of money. and so you're not going to see that having a long-term growth impact for, many
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quarters. melissa: chad, how do you feel about the dive into the streaming business? they started with amazon primee you hear about jeff bezos to have studios and original content? netflix has been incredibly successful thus far. does i make you nervous about them about making too much money and spreading themselves too thin. >> certainly doesn't make me feel nervous. keep in mind amazon has revenues of $75 billion. this will be a long-term strategy for the company to build out their ecosystem. it will cabinet loser for the next several years. but perhaps over the next three to five years, out, it will be a contributor. so, amazon is, strategically focused on the cloud. they will be going against some pretty tough competition with the likes of apple and google. but you know what? you just exclude for these projects. the company still is a very powerful company on the
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growing revenue stream as well as their earnings stream. melissa: leif, i would love to hear your thoughts on that. they're talking about going or we're hearing potentially they could have their own streaming box. kind of remind me. i was around when they said they would have a ereader before they called it a kindle. we all sort of laughed and we see how that turned out. that is along with the ipad pot -- creating a whole business for them. >> amazon is distribution company now. they have a distribution hub. they want to take advantage of that. this box as long as they don't sell it for a loss i think is just a win-win. they continue to expand their distribution platform, you know, kind of so far indefinitely and really jeff bezos, let's realize that his mantra seems to be expand or die. melissa: no. yeah, it is very clever. he makes a great point. they're just a distribution company and you sort of have to broaden your mind as jeff bezos has maybe and how
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you innovate into the future so you can be the number one distribution point whatever kind of media or entertainment we're talking about. >> we're not really talking about also the netflix, them going up against netflix. melissa: well -- >> netflix has its original programing too. while dvd rental was really the, you know, that is what, impacted those revenues and why we saw such big numbers coming out of their earnings a couple days ago. melissa: yeah. >> they're also having original programing and having new subscriptions coming into netflix. i think amazon with their new studios. they're trying to do the same thing with all the pilots they put up on their site. melissa: they're trying to, chad, i get the last word from you. are they too late to that party? i'm apple tv. amazon prime customer. i wanted to look at video. didn't have that much time. mean time i just signed up and got netflix. i'm a prime customer would have gone there but now doesn't care. >> i have netflix and i have prime in my home. and i think that, this is a multiyear staged type of development. so they're getting in early
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and, this is going to take some time to progress and to mature. the companies are very well-managed company. it is highly profitable. it is very, very dynamic in their outlook. and you know, it is a direct play on the cloud. melissa: thanks to all of you. >> thank you, melissa. melissa: coming up all good things come to an end but does it have to be so fast? we'll tell you why the housing recovery. we were so happy about it. may be a flash in the pan. plus uncle sam pulls the emergency brake on distracted drivers but it may drive taught to makers into a ditch. details ahead. do you ever have too much money? ♪ . copd makes it hard to breathe...
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melissa: is it up, is it down? to order starting today here it -- feel the housing market picked up. now it feels like the recovery might be ending. home values barely went up in the first quarter of the year after seeing a promising increase of more than 2 percent the last quarter 2012. on top of that, there is this ongoing fight between housing industry insiders and lawmakers about getting rid of the mortgage tax deduction. some say ending it could cause big troubles for real estate. let's take it to the experts. the former executive vp of fannie mae and to the ceo of chopin. thanks to both of you. let me ask you. when he looked at the staff up there, especially the largest voting, is this a normalization are something more serious? >> there is something else to play here. we simply don't have enough housing inventory. in order for values to continue to go up we have done more properties when the market, or
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properties sold, and there's more demand today there bit -- than there is inventory available. paris toward leasing inventories that lowe's the we have not seen since 1999 in simply have not built yet tosses. this will slow down recovery until we have inventory come into the market. melissa: to you by that? do you think that it is that or are we more dependent on where interest rates are right now? >> i think it is more dependent on where interest rates are. the fed has been, you know, single-minded in its efforts to inflate the housing market and housing prices. has been doing that through lower interest rates in buying all of these fannie and freddie and fha securities, and that has been a big spurt to the market. there are these other things that are going not the same time, but fundamentally incomes are not going up very rapidly, and you cannot have house prices go up on a fundamental basis with incomes being stagnant -- stagnant. melissa: to you think the recovery is stalled?
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what were reduced to characterize it? >> i think it is more normal. again, what was happening, assuming it has even slow down. again, one quarter is not allowed to visit on. but it was unsustainable to expect that rates, you know -- excuse me that amount prices will drop a burton% per year. more normal would be two to 3%. 4% based upon what inflation is doing everything else. so those numbers were really unsustainable. hopefully we're going to come off of those, although i think that the few that i have is, the federal government is single-minded in its determination to reinstate the housing market. the next up is going to be to listen lending standards. you hear from the administration , the fed, the department of justice, from consumer financial protection bureau's. they're all singing the same tune. lenders need to listen up. melissa: it does feel like we may be falling for that trap.
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evidence of that is, there has been more and more talk circulating about this idea that maybe the down payment is not really matter. most recently from the university of north carolina a study as saying that they looked at low income borrowers with minimum down payments from 98 through the end of last year and found that only five and a half% of those people defaulted or ended up in foreclosure meanwhile, when you look at sub prime mortgages during the big downturn, 25 percent went into foreclosure. so there were trying to say, is really not about the down payment but about what else is going on, all lots of other factors. you could not tie those to the other. what do you think that? >> absolutely disagree. when the buyer has skin in the game it will stay in that property. eliminating a down payment requirement is absolutely crazy. you can save the money for a down payment family should not be buying a house. today down payments are not what is being quoted in the media. you keep hearing 15, a tour of
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45%. fha mortgages are under 5 percent today. assembly can save 3 percent of the house that they're buying or 5% of the home of their buying. >> or more. >> is it not be buying up property. melissa: you probably know better than anyone else as a former chief credit officer of fannie mae. outboard is a down payment? >> absolutely critical important. that is a study that has 50,000 loans. allstate doesn't raise than 26 and half million. fha has made 26 and a half million loans to families in the last 37 years. one in eight have failed. that is a study. melissa: settlement -- >> i would add to that, that "on 25 percent of sub prime going bad is up to 40 percent of sub prime. so let's get real numbers. i agree, those numbers are just not grounded in reality. melissa: tennant, they differ coming down. apple will come back. next on "money," a new crackdown could be coming for drivers. of your options at the wheel cause people to pull up their
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phones? plus, x spouses be where. the flush days of alimony payments may be ending in florida. how landmark legislation could sweep across the u.s. thinking about getting divorced, you want to hear this. piles of "money" coming up. ♪
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♪ melissa: no matter what time it is, "money" is always on the move. shares of starbucks are falling after hours. the company reported fiscal second quarter earnings a short time ago. topping estimates for its bottom line and raised its profit outlook for 2013. revenue came a little light of expectations. i guess that is what investors are reacting to. come on. anyway, the open roads are getting a little bit bumpy. you may love the idea of hundreds of different buttons and your car, but federal regulators could put the cup bosch on your dashboard computer. it is a reasonable discussion. do we have too many distractions behind the wheel? without all those options some fear it would lead to let drivers turning back to their cell phones, not to mention the bad of impact it might have on the auto industry. an industry expert and the car coach joins us now. welcome back to the show. it seemed like a good idea. limit the distractions. what is wrong with that? >> the problem is, you can put a spin on any of these studies you
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want. daydreaming. so i can i stop you from daydreaming, although i think ray leonard would like to. he seems to have this thing about really controlling every single thing that we have in our up cars. it's fine to a point, but then there can be too much government intervention and stupid is as stupid does. you're going to be distracted that much and try to shave another cup of coffee and bananas of fun and you will be driving down the road. you just need to get a driver.@ melissa: a year would you're saying. at the same time, when i hear about a new car that has 150 unbuttons i wonder when you are supposed to have the opportunity to push of the buttons. adults to buy the side of the road and do it, so you're probably doing a lot of it when you're in for a motion. >> what you need to know is that millions of dollars have been invested in manufacturing for companies that started like on start, the first ones to hit the market. press a button. turn by turn directions in the person answers to restraint and it will actually down of the information right to your vehicle. you have companies like you
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connect, chrysler, just when in el of technology the of the year award. audi connect. every single manufacturer. ford has sink, cadillac as cute. every single manufacturer has hands free. you press a button and history will, tell them what you want to commend the destination, the address. will do it. the thing is, those of work as long as a connector phone. that is why but it was invented. you usually do that actually works. the key is committees up to you how you bring those distractions back to the road because your hands are supposed to be on the wheel in their eyes on the road. however, you cannot separate kitchen talking in the backseat of fighting, which mine used to %-you cannot communal, if you he a cup of coffee, you can't put your kids and the track. you can't let the passengers with utah and the can't talk india can regulate as often in the car. there's a point where technology is something that you have to control yourself. melissa: i hear you. i wonder if from a liability perspective these things are just guidelines.
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so if the manufacturer does not follow the guidelines and then something happens along those lines, are they creating this potential lawsuit or class-action lawsuit down the road, you know, he told me that i should have done this of my new vehicle. you didn't. now we will also you. >> that is very typical of lawyers. you go after the gps manufacturer, the company that developed it, the car manufacturer rather than -- all problem is no one wants to sell a minimum stake and might cause the accident. what does that any more these days. melissa: why would you ever? that would be stupid. why would you ever say that? >> is true. you wouldn't. melissa: what kind of impact is the seventh car sales? bunds and gadgets, is that what people are after or is it about the exterior look in the way it drives? >> love the big thing that is selling, and that you can get to any other show, technology in the interest of bringing your car into your -- which of fun together, whether it is when you're on the road, no matter
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what your doing, this is where people live. they sit in rush-hour traffic. it wanted builds community with the people. don't have the limitations. you can't use it on the car. it is somehow blocked a signal that means that the kids in the back seat and a logger play games and the other way around. phones don't function while they're moving. they have other issues. traffic is based upon that. think of all the signals that are being prodded your vehicle. you know traffic congestion, where the gas prices dark. all that information comes in the is sell signal, so there has to be applied when you have to decide, what the technology, but you have to use it. melissa: they do so much. i don't know what parents did before there were distractions and the car. the kids just beat each other in the backseat. >> pullover on the side of the rug. melissa: junot's. all right. here's our "money" question of the day periods of the federal government do more to make the into that is always know. should the federal government do more to lead driver distractions who want to know what you think. like us on facebook.
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follow me on twitter. remember, when you're asking a question, should the government do more, it does not matter what the rest is to the answer is no. all right. time now for today's fuel gauge report. oil futures posting the biggest today gain since last august. u.s. intelligence agencies say the regime in syria lightly used chemical weapons against rebels. president obama has said there use is in conflict and would cross the red line. jitters over the middle east. crude up nearly two nappers and selling at $93.64 per barrel, losing money today exxon mobil shares slid following first quarter earnings. beating bottom line expectations but came in light on revenue. like everyone else. costa maintain production levels also soared by the same time last year, and the u.s. is offering up 21 million acres in the western gulf of mexico. the offshore sale is scheduled
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for august. the area could produce up to 200 million barrels of oil. according to recent estimates. and getting. all right. coming up, florida prepares to throw alimony laws in the shredder. those huge lifelong payments to x's could be coming to an end. he will tell you what it can mean for divorce lawyers everywhere. at the end of the data is all about "money." ♪
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♪ contains a feature of alimony, even if you are already getting paid for it. the controversial legislation would cap payments, trimmed down how long it could last and even cut back what has already been leased out. florida governor rick scott is only a signature away from making the sunshine state the second in the country to alter alimony loss following massachusetts. so is this the end of alimony as we know what tomorrow will spouses keep having to pay until death to the park? joining me now is fox business reporter kate rogers and attorney michael gottlieb. let me start with you. give me the basics of the law because i found this pretty
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shocking. there is a great distance between half the length of the time you were married and the rest of your life. emmy gamay could be five years versus, you know, 50 years. >> right. well, what the law is doing is, the bill is seeking to curb people who have been receiving alimony forever, i essentially. there are people who don't go out, don't remarry because they have permission to save their remarry they don't get alimony. so i don't think it is seeking to do away with alimony. it is seeking to curb this system and make it more amicable for both parties. melissa: zillow we really talking about? this seemed like a dramatic curve. >> it is, and retirement and florida, that is where everyone goes to retire. stakes are higher, so we're talking mainly about retirees and women. spoke to people in florida that will be impacted on both sides of the law. as but one man who has been paying and his wife $150,000 in alimony per year, and that is really a step down from the lives of their living.
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sixty-two years old, businessmen and cannot afford to retire with the law as it stands. melissa: and s' gosar? is of leckies leaded and maybe should have been a better has been that would not be paying alimony. at another store results. whites you refills five tsr for the strike? >> here's a guy you might feel sorry 46 another man married for 18 years, which is considered a long-term marriage. the woman he was married to was declared abusive by two psychiatrists after 18 years of then married. melissa: took a drastic turn perry decided to divorce her. nine pager $24,000 per year. he is making under six figures, so it is not a huge amount of money for m. now he cannot afford to retire. he lives in a building, condo with tons of other men were in this same situation and he says that he would never ever remarry, no matter what. he likened this to buying his freedom, like in the days of slavery. that is how intense. melissa: you can always find some story for any law they were talking about here.
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what do you think the implications of this? first of all, do you think it would move beyond florida? and doesn't discourage or encourage marriage? >> i think an argument can be made either way for discouraging or encouraging. i mean, i think it is going to give some people who are not the income earning spouse concern about whether or not they should try to make the marriage work of whether are not -- into ethanol are they can go and get divorced and get alimony for life, as was the trend before. the trend now, and i think you're going to see other states do this, the trend now is to get rid of this abuse of alimony, and that and that is really what it boils down to. was the old system an antiquated system and abusive to the income earnings?
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melissa: does it go beyond florida? massachusetts, is it similar, not exactly the same, but can it catch on around the country, and what about the retroactive part for those divorced, going back in, how would that work? >> well, i think it's definitely something that catches on throughout the country and should catch on throughout the country. i think what this does is when you set the basis for the alimony at half the term of the marriage, it encourages that spouse, not the income earning spouse, to go improve their education and improve their position opposed to getting alimony for the rest of their life. in terms of whether or not other states opt out, absolutely, i think they should. melissa: what about the retroactive thing? should you be afraid if you are out there now receiving alimony that it's going to be taken away? >> no, i don't think you should be afraid it's going to be taken away. i think it's giving the judges the discretion to go back to look at the retroactivity of the
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alimony payments and make a decision, a wise decision, as to whether or not the position should be changed, have the party's positions changed? are people cohabitating in defrauding the system? making more money, less money? face it, a lot of people are making less money but are still tied to huge alimony payments. i think it's just an opportunity to revisit some situations that might not be considered equitable. melissa: a tough one. thank you. >> thank you. >> thank you. melissa: who says true one night stands can't be found at 35,000 feet? how virgin america's helping passengers get lucky high in the sky. oh, boy. next. you can never have too much "money." ♪ [ male announcer ] you are a business pro.
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♪ melissa: it is time for a little fun with "spare change" joined by hillary kramer and jason. there's a new system for the mile high club launching this feature for the in-flight entertainment system to allow passengers to send another passenger snacks, drinks, even meals. i think this is great marketing, what do you think? >> well, it's interesting that the airline's called "virgin."
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melissa: very light on sexual inknew -- inuendo. >> sex and airlines don't go together for me. the airplane, i don't even like going in the laboratory r alone. imagine with the other person. they say it improves arousal up in the air with the motion of the airplane. melissa: oh, my goodness. >> i think it just doesn't work. melissa: jason, are you ready for the topic? >> i've flown the airline a couple times. it's a nightclub. like walking into the bar or a lobby bar, and i think they are killing a couple birds with one alleviating crowding the aisles for people trying to pick each other up, and i think they are generating added revenue selling additional goods to anonymous people on the plane, and if something comes from it, great. melissa: a marketing gimmick
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with them, we said "virgin" 50 times, good for them. would you spend more than $195,000 on a cup of coffee with tim cook? the site charity buzz is auctioning off a 30-60 minute coffee date with apple's ceo. there's others like a tour of spacex, other celebrities. what would you pay for, jason? >> i certainly wouldn't pay for the tim cook interview. you can hear what he has to say on a conversation call, and, listen, i was charitable averaging up near top pick in the stocks, so i've given some sell of the charity in apple, but i think there's some things really neat. you know, quite frankly, going into space would be neat. melissa: i know. that's the one that caught my attention as well. spacex seems cool. >> tim cook is not interesting. that's why shares of apple is
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down, not thriving, and maybe i would want the opportunity to talk to him and give him a little of my own time. melissa: could be an investment if you have an app or innovation to sell to the company, you could have one-on one time with him to pitch it. one of steve jobs is coming true, dreaming of an apple car. volkswagon has the iboot l. they are releasing the app to display oil levels, driving times, and more. if it's not a hybrid, nobody in san fransisco will buy it. what are they thinking? >> i don't like it one bit. it's the third day in a row that my car has been -- it's a mercedes, and i put an ipad where the charger goes, and i put it through the sound system, and it blew all the electrical in the entire car, and for three days straight, electricians can't figure it out. melissa: that could be a
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mercedes problem. that's all the time we have for you. tune in at 1 p.m. when the senator talks about his efforts to -- gerri: hello, i'm gerri willis. tonight on "the willis report," the obamacare scam artists, fraud taking advantage of the law to take advantage of you. also, the new push to get rid of america's favorite tax breaks. is congress trying to kill the mortgage tax deduction, and spending less for your college education? you can do it. we're on the case tonight on "the willis report." ♪ gerri: all that and more coming up. first tonight, our top story. listen to this. they passed obamacare, but no

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