sides. if we do so in the middle of a bear market that may be on the bearish side.cool not red or blue. just green. your money. s "the willis report." gerri: tonight on "the willis report" comes six months after hurricane sandy, homeless homeowners say they have been abandoned. also, putting the brake on trading. new efforts to protect small investors. and staying safe, how do you do that? we are on thecase tonight on "the willis rept." melissa: all of that and more coming up. but first,he consumer financial protection bureau. they are trying to accelerate

their power this time through car loan they want lenders to guess the race and ethnicity and gender of car loan applicants. with more on this, congressman john campbell of california who is on a conference call with the agency's staff, trying to get an explanation. all right, congressman, what did you learn? >> well, just what you said, the consumer financial protection bureau and a lot of your viewers may notbe familiar with this or have heard of that. it was set up as part of the dodd-frank law. we call it an acronym forhort. they are supposedly there to protect consumers we are supposed to be protecting from predatory lending practices 2008 crisis. what is interesting is that car loans were not a problem in the crisis. they didn't take anything down, there wasn't a problem.

they were the cause of anything they didn't make anything go bankrupt. the consumer complaints are vastly lower. gerri: from your op-ed, which i read with interest this morning, it was mystifying why they would have these lenders get these details of people who were applying for car problems. i guess what theare trying to do is make sure that nobody is being discriminated against. the biggest problem wasn't people being discriminated against, it was the fact that the lenders made no choices. they allowed anyone to do this. what is their thinking? >> you hit it right on the button. people based on race or gender or religion or ethnicity are not getting car loans for that none of that nformation is on the loan documents. so the people making the car loans don't know you are

ethnicity or ethnicity or race, they don't know your gender. they don't know anything. what they are saying to the lenders think you guys have to look at a person's name and their address and try to determine from those two factors are they african-american, are the hispanic. are they male or female. are they jewish or catholiccand that is just crazy. gerri: here is my question. these rules get in the way of business being done. what will be the impact on this very strong marketplace? >> that is what we are worried about. the companies that make car loans, which are based on a lot of finance companies and credit unions, these people have to look at this and say, what if we are wrong and what are we supposed to do once we know.

gerri: maybe it would be better not to do the loans. when a business is maybe getting sued, they just back off. gerri: i wanted to share some numbers that i think it shows why this is so confounding. sales of new cars, sales of old cars, complaints since march of 2012, 1585. ut of 30 million transactions. so where is the beef? it looks like maybe this is a power grab. >> there is no doubt about it. the cftd wants to control lending at all levels for anything they want to bring that and have complete government control over that and this is so

clear, such a clear example of that. here is a long market that h no problems were you can't discriminate because you don't know who you are discriminating for or against, but they have decided to weigh in. the only reason to do this is they want to control these transactions rather than wat you and your financial people do it. there are hundreds of entities making these loans. it's very competitive out there speak to congressman, thank you r coming on today. intesting topic. if you find out something new or different, let us know. we are totally befuddled by this. >> we will keep you informed. gerri: unbelievable. we also have this. federal investigators are looking into who made money after that fake tweet hit the market last week. the issue put traders back under the microscope and with us now is the ceo of liquid net from los angeles.

high-speed trading is one of the hot topic there. thank you for coming on the show. it is really great to have you here. i want to start with this twitter hoax. you know, just so surprising, what do you make of it, and do you think that the regulators are really on top of it to see who made money or? >> this is the kind of financial disaster that is the latest cyberwar that can be waged across the country in the financial institutions. you know, i think that that would be very important to find out who, in fact actually committed that crime. gerri: the dow snapped back pretty quickly. but i have to tell you that it puts individual investors on edge. they don't like it. another thing putting them on edge is high frequency trading and it is now 70% of th market

ple. igh requcy trdngaccot for 0,dyou thik t cou harul tindidual instor >> do. is diduainveors d aninvtorsnvesthei mon with mutual funds you know, the institutional market and what we have is the entire volume of the market was made up of retail investors and institutional investors. the trading volume really has absolutely no regard for this versus the underlyi company in the fundamental values. gerri: it'not about that. >> we need confidence of the

market has integri and that helps the companies who want access to public markets for capital to grow this company, for ipos, for the general investors to be able to understand what the rules of the game are. computerized level becomes problematic forhem. gerri: when i have people on to do this for a living, and believe me, i share your concerns about a level playing field for individual investors. but when i have these traders on the show, what they tell me it is we serve the market because we increase liquidity. you have of you a view on that. what is the? >> well, when you are asking somebody when they make so much money whether it's good or bad for the market, what are they going to say? well, you know, i have to say that not all of it is bad. unfortunately there is a whole segment that takes advantage of

inefficicy in the market place. because there is computerized trading and not human beings looking at the fundamentals, that is when you have computer that drive the value of the stock down. they don't correspond the value of the underlying fundamentals. people and investors can rationalize and keep the stock market from falling into these huge things.

>> it is a complicated situation. you have written some great stock -- some great stuff. thank you for coming. we have more to come this hour we're just getting started including are you on the cloud? one way to keep your information in one place but it also makes you easy prey. how to keep yourself safe and six months after superstorm sandy the region is still dealing with the recovery. we will give you an update coming up.

gerri: it has been six months since superstorm sandy struck the east coast and our people are still homeless. consumer reports just completed

its largest ever survey on natural disasters in the wake of superstorm sandy and you're going to be surprised by these details. with us now is paul reynolds. thank you for coming in. you guys did a big job here. please tell ushe most eye-popping number out of that survey to . >> i think the most eye-popping number might be that two fifths who have mjor damage -- of those people, 40% have not been made whole in terms of getting the return on their insurance, their flood insurance. gerri: the numbers that we have, and these are from you and your survey, nearly half of all claims for $40,000 or more are still pending. in other words, the people who had the worst damage are still waiting. is that right? >> that is correct. one of the things is that when people need the insurance companies the most common they tend to let them down the most.

we have seen this before. we had a pretty good record this is more like katrina in terms of the satisfaction we are seeing the one that is very interesting. and it's not a vote of confidence for any of our viewers right now. interestingly today, the governor of new ersey and shaun donovan who runs the department of housing and urban development came out with an announcement saying that we will get the $1.8 billion in grants in this area, possibly just new jersey. we really don't know the details. we don't know who is getting the money. initially 60 billion was approved. this sounds like a drop in the bucket is a long way from being settled. >> i don't know about the numbers, but anything here that helps homeowners, were survey

finds his there were 30% of people in our survey who were not covered at all by flood insurance. even the people that did not really been made whole. certainly room for a lot more help here. wherever it comes from for those people. gerri: i have had to report on this extensively. during hurricane katrina and over and over again. who is holding things up? is of the insurers? is at the map? is it the federal government. how does does get bogged down so that no one gets the help that they need. >> up a good question. i don't think we know entirely. the indications might be that everyone involved in doing things to process insurance from fema to the insurance companies everyone else, needs to be really prepared ad what this suggests that they might not hhve been as prepared for this as they were for her tonight and a lot of it was not having a lot of troops on the ground soon

after the event? >> after the event. gerri: you have lots of good suggestions in the wake of the survey. i will mention one thing and we will have to come back and do it again. you say that if you have a generator, make sure it stays in place. >> that is correct. it makes a big difference particularly if you have one that wasn't dependent on running and getting gasoline. people had no surprise. gasoline was a big problem for a lot of people and to keep that generator going was a problem. gerri: would've really interesting conversation. we can talk to about it more. thank you. later in the show, it's another quarter for earnings, a banner quarter. next, we answer the question how do you do that we will have tips. don't go away. @

gerri: stormy weather

rri: all right, storing your files on the cloud is more popular than ever. just how safe are the sites and what are the dangers that we are facing? jeff rerts joins me now with how to protect your data on the cloud. i ha to tell you that i am so worried about this.

because all of my stuff is there. my group on coupon is up, personal data where i live, anything about me is they are. >> i do think you should be worried. the consequences can be a lot more severe, as he said. it's your photographs and documents and your life. gerri: what does it mean to be on the cloud. >> the best way to think about you've ever had a hotmail or gmail account. many store things on flash drives, cd-roms, the services and our documents and photos in these remote storage deves, it's like having a personal law.

it's very convenient, but as you point out the. gerri: look at what has gone on. the twitter folks, the major media has had major break-ins. anywhere you look, it seems like nothing is secure. >> you are right. these big companies are more vulnerable than what they let on. they do their best, you have criminal gangs looking for credit card information. they do the best they can, but sometimes the hackers when gerri: i wanted to something that steve had toto say. he said with a cloud you don't own anything coming berti signed it away. i think it's going to be horrendous, and they're going to be a lot of horrible problems in the next five years. is he just too negative? >> not really. it's dangerous. i think we're all doing this. but if something goes wrong, it's going to go really wrong. gerri: wow, i was hoping you and inspire me to be confident.

look at some of these popular cloud sites. skydive, tell me what i can do to keep my photos and information safer. maybe i can take the basic steps to try to protect myself. >> the good news is a that a lot of these incidents are within your control, do not have a weak password don't me your weak password because that is where the breaches happen. so that is common sense. we've seen some great things used authentication. that means if someone is accessing your caught on strange computer they will ask for a text message confirmation. gerri: i like that. i'm sure our password. >> of course. alot of the so-called hacking, sharing passwords with friends, boyfriends, that is a recipe for

trouble. gerri: you say watch out for public wi-fi? banking. just be careful. gerri: this sounds like common sense. our viewers need to hear this because a lot of this is we don't realize were using the cloud and we need to do things right away. thanks for helping us out today it's always good to have you. a look at some ofe. the stories turning on fox business.com. chrysler, profits of 65% of costs reducing models. the details are still strong. the housing market, san jose, san francisco, these markets are

seeing some of the biggest price increases right now. that is according to our housing market website below. the third story, some stayed home. , can make and take into account the income of a spouse or partner. and the first ever bond sale. companies are taking advantage of record low borrowing rates. apple has just cache cache cache. those are some of the top 10 stories tonight on fox business. check it out, it's a great website. coming up, shocking numbers on food stamps. you have to hear it to believe it. and another record day for the s&p. should we be waiting for the other shoe to drop when it comes to earnings report. our financial panel weighs in coming up next. bny mellon combines investment management & investment servicing,

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>> from our fox business studios in new york, here again is gerri willis. gerri: consumers partying like it's 2006. spending jumpein march. americans incomes rose by $31 billion in spending jumped by $21 billion. all of which would seem to be good news for the economy. joining me now is malcolm gibs, founder of his company and another entrepreneur and owner of a business. welcome to all of you. it is so great to have you ere. david, i will start with you.

remind consumers are spending every penny that they have. is that good? >> accounts are going up, i don't want people to do that, but the average american consumer has money and the spending that. gerri: what do your clients a? with you people tell you? i don'think people feel all that optimistic even now. >> we have had a lot thing and asking if we should be getting out of the market, is 2008 coming again, we hear a lot o conscious investing. gerri: 76% of the people they talk to are shying away and we had seen one of the biggest runs of my lifetime, i have to tell

you. what are people telling you? >> i think people, as we heard from the other guests, they are cautious, but they are wondering where else to invest. this is become the economy and people feel safe investing here. when they look at europe and other places, they are not as comfortable. that certainly doesn't appear to be an attractive alternative for many investors. gerri: i talk to somebody last week that said emerging markets are the place to be. and i can't get people into our market with much less emerging markets. david, one of the interesting things, we have great profits out of this earnings season, taking along at about 3% and better. that revenue it has has lacked. >> that is to be expected. the reality is that consumers aren't rushing on spending a ton of money but a little money. this bull market economy has

been a very gradual one. the companies have had great earnings because it had reduced cost. they are borrowing money cheaply. that is giving him great foundation to be on my theory is that can fudge the numbers from here to next week. but the topline revenue line, t is what it is. >> revenue drives profits. it is like you said. if you don't have this gas going into the high-octane engine, there's nowhere to go. >> if you look at europe, consumers are not spending money. we have seen the company after company saying that sales are declining. the companies have acted responsibly, they have cut debt

and spending. they are looking very attractive gerri: yay for corporate america as you look at this, what is the right strategy right now? >> welcome i don't believe in that theory, but here's what i will say. the question is what is the asset allocation. you started at 60% equities and 40% bonds. but today, 80% stock from 20%. enjoyit, we will see a pullback in summer. we almost always do.

>> you are going to get people arguing on both sidesof it unless you look at your portfolio and have proper risk management measures in place, it becomes very imptant. it would be him market time. gerri: i am one of those people, always in the market for some level. it is just what i do. i am not retiring tomorrow, i'm saving for the long term, hopefully i can buy some stuff really cheap. i don't want to pay the highest price in the world for this stuff. would you tell your inveors and clients? >> i have good news, a recent study shows every six months, it was discovered that from april to october, the market does not grow as other times.

but during that six-month timeframe,here are sectors that have historically done very well. i think that it is a question of finding the right sector. so for example, health care, utilities, we think that those sectors look attractive and will continue to look attractive over the summer, particularly where you can get yield. investors are looking for yield everywhere. gerri: david? >> i would say yield also. when you build a portfolio, you're going to be putting money in the market and i would drag his feet in the market right now. i would be buying mutual funds, a yield of two two and a half to three and a half precent. >> one of my favorite investments, check it out. gerri: okay, what you say? >> some of these markets are not on the radar of most wall street analysts. the return trade-offs are improving frontier.

gerri: do you have a kicker for me? >> one fund is mafax, and we have a bunch of others'. gerri: you for helpi us out. we appreciate your time. what a good job. now, what is the state of your personal economy? are you spending or saving or paying off debt? vote on the right-hand side of the screen and i will share the results at the end of tonight's show. one of the things consumers are spending money on is their homes. some want to spruce up where they live. for those looking to put their home on the market, it can lead buyers to spend thousands of dollars more for your home. the most popular home improvement is number five, hardwood doors. this is a generational thing. only 17% want them, nearly 30%

of those 54 and younger are willing to take $2000 more for a home with hardwood floors. and granite countertops. number three, a master bedroom. 60% of home buyers are willi to pay extra for them with walk-in closets. the number one most popular is new air conditioning. number two is the new kitchen appliances. americans said they would spend much more for central air. when we come back, china's new green card push is making its way to california on the backs of taxpayers. we will explain. and a ridiculous pace. lou dobbs is here.

lou dobbs is here. stay with us. the capital one cash rewards card gives you 1% cash back on all purchases, plus a 50% annual bonus. and everyone but her... no. no! no. ...likes 50% more cash. but i don't give up sy... do you want 50% more cash? yes! yes?! ♪ [ male announcer ] the capital one cash rewards card gives you 1% cash back on every purchase, plus a 50% annual bonus on the cash you earn. it's the card for people who like more cash. ♪ what's in your wallet? why? and we've hit the why phase...

loves food stamps. according to senator johnson, the number of people skyrocketing. the annual spending on the program has doubled one in seven americans illegal immigrants are using it as well and it should be addressed. it is an issue that lou dobbs recently addressed. lou: 47% of americans receive some sort of welfare.

this is to criticize the government that over the course of a decade has squandered billions un billions of taxpayer dollars. they have lied to our faces while doing it. it goes on because the idea the american people have, that they can continue to accept this nonsense that is coming from this administration, the previous administration as well, this is not a republican or democratic issue that a government.

it is malfeasance on the part of a government that should be responsible and in tune with the national interest and it i not. gerri: you know, i love "chalk talk." what are you doing tonight in "chalk talk"? lou: we are doing in thinkable. we are going to examine why it is mitt romney lost the election last year. it is a series of democratic numbers are very compelling and economy working against them, this two-term president setting historical records with winning a reelection tonight in the "chalk talk". gerri: thank you, it's always great to see her. still to come, my "two cents

more". we will have the details coming up next ♪ [ lighter flicking ] [ male announcer ] you've reached the age where giving up isn't who you are. ♪ this is the age of knowing how to make things happen. so, why let erectile dysfunction get in your way? talk to your doctor about viagra. 20 million men already have. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to your doctor. this is the age of taking action. what is it that makes a husqvarna? it's not all the brilliant engineering, no.

it's this that makes a husqvarna! gerri: american taxpayer

gerri: well, you won't believe it. good old uncle sam helping china expand in the u.s. the chinese carmaker is opening an electric sembly plant in california and receiving a federal u.s. subsidy to do it. here to weigh in i the senior research fellow at theeritage foundation.

how much money i'm spending on this? gerri: they are only coming here because they are getting federal dollars. what is this? some policy that we have for the chinese? what is the thinking of washington doing this? >> maybe someone would buy their buses. but instead we are deding that these are good buses they don't get any subsidies. what you want is cheap and green products. so this is a lose lose policy by the administration.

gerri: unbelievable. is ischine cpany the evea maet f the oduc? >>robay o. and they go bankrupt. because that is probably a pretty good head but here that will be the end of that. gerri: i am confounded by these stories. you know, if i lived in china and had a company of any sort, it only makes sense. do you expect these chinese companies to try to take advantage of these u.s. taxpayer dollars. >> absolutely. they did this in europe and green energy. big european subsidies before the europeans ran out of money. now they are american subsidies. why would a new?

behavior makes perfect sense, it is our behavior that is crazy. gerri: to what program are they doing this under? is this one of the ridiculous green programs with these awful companies? >> a whole set of programs out of the department of energy. to pick out what the government thinks are good technology. it's not what people actually want. they routinely fail because nobody wants the prodct. the story here is a government money, turn a profit. american companies try to do that and now other companies are trying to do that as well one it should be uncle sam -- but i

don't want my money and your money to go to subsidizing i. gerri: i sure don't either. goodness gracious. there has to be an american company out there that should get the money. thank you for coming on. it's a pleasure to have you. >> thank you. gerri: on and on it es. well, now on to stay in business. you won't believe this, 100 years ago today the zipper was invented. that is critically important. a swedish born engineer received a u.s. patent. it was so popular he was producing so many zippers within the first year of operation. but it didn't come about until 10 years later when a civil war surgeon called these zippers, it was another 20 years before the zipper was used on clothing. but it all started with one engineer who got a patent estate april 29, 100 years ago.

what is the state of your personal economy? stay with us. we will have more when we come

gerri: americans spent more in march. investors think this is indication that we will survive the tax increase that we were hit with in january. what is your opinion? here's what wh some of your posting on a facebook page. joanne says paying off debt that for the last couple of years, we have not gone on vacation. by next year at this time, we will be free of debt. congratulations. and whitney says, putting the spending category. a lot of people are there.

we assess on gerriwillis.com. 4040% of spending, 18% said savings, 38% said paying off debt. here are some of your e-mails, michael from california writes that i adamantly do not believe that government should be involved in our nation's retirement system. and joe from tennessee says although obamacare is a travesty, the health care math is part of positions not working together. fee-for-service was a predominant form of payment. insurance companies came along and promised positions they would get reimbursed 100% of their charges if they find out. being a poor business people that we are, we didn't think insurance companies would be that moneymaking machine for they currently are. if doctors would drop the middleman company can return to fee-for-service it is practiced in the past. finally tonight, the latest crisis to hit the eurozone, italy. the harsh economic times have italians flocking to the inexpensive sector.

there is a shortage of 6000 pizza makers. pizzerias are having a hard time and italians think there is not enough dough in slinging pizza dough for long hours. ny just want plush lifestyles, but they are not prepared to work for it, one man says. 3 billion pieces, it is time for a time to up their sleeves and get in the kitchen. i don't think the inf will go for this. that is my "two cents more". coming up on thursday, fox business has a daylong special. and how has the work been going for you?

that is that for tonight's "willis report." thank you for joining us. don't forget to dvr our show. if you can't just like him have a great night. we will see you tomorrow. lou: good evening, everybody. thank you for being with us. the s&p 500, up 11 points, an all-time record high of 1593.61. the dow jones a late rally to another triple digit gain. the dow advancing 106 points, closing at 14818.75.