tv Cavuto FOX Business April 29, 2013 11:00pm-12:01am EDT
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you for being with us. we'll be talking economics with art laffer. thanks for being with will see . good night from new ork. >> this guy drew the line in the sand. you've heard a lot about consequences. tonight we are going to talk about behind those consequences and the cash that lives there. welcome, i am neil cavuto. the president is in a very tough place right now, he has already warned syria that if he ever got proof he used chemical weapons on the people, there would be heck to pay. even if we can pay can't pay for that. for ron paul who says consequences even if we did have the motoay them.
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you would say don't even get involved at all, but the syrians do whatever they want. >> yes, it's pretty much that way because it's not our business. it smells a little bit like the going into iraq, and he to the line in the sand but for him to worry about going over that line, i don't know where the evidence is. they don't have evidence. he shouldn't be in a dilemma, you should just stay out of it. >> in other words, more than president bush on weapons of mass destruction in iraq. but we did have proof that using these weapons routinely against
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his own people is what he did. >> well, look at how many hundreds of millions people were killed in the 20th century by bad regimes. i would say that the likelihood of that happening is slim. i would argue the case for staying out much they were using it against us and affected national security. but they couldn't possibly use them against us i mean, we are in jordan and we have plenty of agents already in syria and we support the rebels. we ought are already much involved so you are machine-gunned or gassed, still very dangerous. i think we are looking for trouble by being there and the answering of your question, no, just because there is evidence that they do have a weapon. i would say that it's not a justification to send young people over there to get killed. >> in other words, killing people is killing people whehe
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with killi people in the street were with weapons. >> yes, minimizing the responsibility for the american public officials to make sure americans don't get involved needlessly or the nternal affairs of other nations and don't get set and there is a lot of responsibility there. you know, i think going in is the worst ing to do. especially because it takes a lot of convincing. believing that bashar al-assad is that for us. they are healthy and skeptical of this right now. >> we are a lot poorer, we don't have the money, we could put it as we do so much else. your point is whether we can afford this or not, digging a
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deep will hole every time we do? >> yes, that is part of the reason. we don't have the moral imperative to go there, we don't have a downgrade, and spread themselves around. it's going to bring us down. this is one thing the american people can come together left a. wars -- we have nothing to show for it except her enemies. the logical place to cut its overseas. it is a sacred cow that you can't cut a nickel out of the military. having faa funding, causing
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great problems for the american people, when we save this from overseas? they control things, too much money is being spent. >> bottom line, we have replaced this board the workers. thank you very much. neil: mark zuckerman says you encourage enemies call your bluff. and truly could we support if we take on an enemy waiting for us to call their bluff? it is all about we help. >> welcome to a large degree, we should help those countries that serve our own national security interests. we have countries that are very important to us like turkey.
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we have a ron trying to become this power in the region in iran as part of supporting syria and we have lebanon and jordan were reeling from the pressures coming out of this war. so there are some major interest that we have. >> how would you go about it? we chose sides after we helped the opposition in egypt. i think they have pointed out many mistakes. >> we have a lot of intelligence people on the ground.
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he wanted to say the muslim brotherhood would be our friend? >> i don't think anybody has thought that. someone who is working with a double digit iq. it is the world's greatest source of energy and oil. neil: what we get for all that? the point is there's not much. and we try to pick and choose who we think will be in the united states.
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>> we are chelating guides. it has been something wrong with the administration. in a as a leader, there would be consequences for your actions, the consequences would be soldiers, reinforcing the opposition and he would not send troops? >> no, i would not. >> there a lot of things that we have to worry about. things that we can do.
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neil: sort it's sort of like what we did in libya? >> that was one of the things that w did. here is a country that is a major issue that may confront us, which is the radicals in particular, it will have a huge effect on some the other government in that region. it's something that's very serious. we don't have to send american troops in there, but we should to the people whom we call rebels. the outcome is going to be very important for u.s. national security and we have allies when we are convinced that there is chemical weapons being used.
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it will be a game changer and we will do something about it. in fact, chemical weapons were used ad everyone knows we are backing away from the commitment that we make. >> you know, they will have major consequences for the united states in terms of the reliability of our commitment. you have to make personal and verbal assurances to people. if we lose that credibility, it will but diminish dramatically the middle east where so much is based on the united states as a supporter and ally the man we end up putting a deposit down. >> i think that happens.
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but it doesn't always have to happen that day. we have to be wise in the way that we do these things, things that are effective, a serious part of our intelligence community and the judgment that the washington leadership makes. you have to assume that there is enough intelligence and experience in national security that we can make those decisions. it just tells you that it's not working. in terms of what we are doing, that is what we are facing next. why would the president make a statement with a ne in line in the sand if you want to implement it and then to find ways, i can understand why he would want to do it, that he was
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going to do it, this undermines the whole credibility of american commitment. that is very dangerous for country like the united states. neil: grover norquist says more neil: grover norquist says more taxes you hurt my feelings, todd. i did? when visa signature asked everybody what upgraded experiences really mattered... you suggested luxury car service instd of "strength training with patrick willis." come on todd! flap them chicken wings. [ grunts ] well, i travel a lot and umm... [ male annocer ] at visa signature, every upgradedxperience
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laws to allow states to tax across borders, to tax businesses in other states, internet sales is a move in the wrong direction. will undermine tax competition, which is a good thing. i want the government of texas and the government of california tory to provide the best government at the lowest cost. and people will move to the state that provides the best government. if you allow california and texas to do so, it undermines it neil: the government is saying that it is going to pay down a little bit of the debt. it was a token gestureo say we will make a payment on that user
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bill. while the tax revenue, guys li you question how long we will keep getting it. >> well, governments are spending and what we have to do the national level is keep the sequester limits in california they have been raising taxes rather than governing. neil: so initially when that happens, the money comes in. doing away with the payroll tax cut and washington is going to depress revenue return.
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>> they raised all those taxes under brown. liabilities from pensions at the state level and entitlement programs at the national level, they are swamped with a small amount of revenue with a short-term basis. neil: bottom line,. >> if you are eating your own arm, you can only do that so long. neil: at an imaginative way of puuting it. it's good to see you. this just in, cuts strike me as more than over the top.
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that are making people dependent on social programs. look at the explosion. we are headed down the same path. there is no reason for such dependency. people are depressed about it and so forth. but such is life. when you go through physical problems, there depressiin with it. i think that is over-the-top and extreme. >> i see what you are talking about in terms of making people sicker. we are hearing about cancer patient being turned away from
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chemo. that is what we are talking them about. we're talking about the recession causing 5 million more people than any time tre is a cut to care, it's not good for the taxpayers. at the end of the day, health care, medicare,. >> would we do if a lot of people that were laid off? >> i think we had a different situation at that point. >> but with unemployment at it is, it's a whole different world. >> when you take away of the stock, you're going to get sick people and you will get adjustments to both of these
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ladies refer to. >> here is the challenge. you look at the government and accountability in 2011 made recommendations. only 20% of the cuts have actually been made up until now. the money is there to be spent. they're they are spending it on all the wrong things. they said that they will not be able to help 33,000 businesses. that will make people are sick. someone did a study at harvard university in 2009 and they said they were 50% more likely to get an illness after you're unemployed in the 18 months following. >> could give a variety of reasons and it will have an
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effect on the sequestration thing. it is the best example there were some delays at airports they wanted to rescind the furloughs. we have heard of no cuts of making this work. even the minor cuts are uncut. all of this is going on, president obama reluctantly has done this. >> i understand that and this is why the sequester doesn't make sense. they are making sensitive suggestions.
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>> iwasn't supposed to have been. neil: it's better than nothing, was in a? >> we still have -- neil: i guess what i'm saying is that we have a million reasons. i've used them all. the bottom line is the reality is that we hav debt and this is a spending problem. this is not a social problem with them, i believe in a strong military and could but the simple fact of the matter is if we don't find waste money, this will go on and on. >> frustration, theonly side in
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picking is this. >> bob said an interesting thing. we're just not using it. i think that we don't have an abundance of money. look at the faa, the department of transportation, it is all on borrowed money and we are out of line. >> at the end of the day, the problem is that as much as americans say they hate government, they don't. they don't hate what it isthat they get. >> you want what you want. neil: at the end of the world part two when we come back.
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ininformation immediately or pay big finds, what is not to like about this? the government says, we do this, mercedes, because we're looking after you. moi react on that is, why are you going through my electronic stuff. >> you would think that, but i'll give you counter argument we represent a lot of tech companies. including facebook and google, so full disclosure here. the tech industry, you invite the criminal minds to get information they normally would not. neil: how do you compromis with fire walls. >> you allow wiretaps you use technology that can be taken by criminals, and seize this information. neil: you are giving us technical reason why. there is a practical approach, with respect to privacy, it is a premium, there is no
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constitutional right to privacy but there are a lot of cases to talk about privacy, there is a right. it is explored in cases, when you talk about intercepting within fire tapping it has to come to a level, you say maybe it is not unconstitutional but it has to have some good result, there is no result because, when do you this wiretapping you are not getting all of the information you wish, you wil get criminal minds to think we can't use google, andacebook we'll use other methodology. neil: kelly? >> well, i don't disagree entirely with what mercedes is saying but there are laws in place that allow wiretapping, have you get a court order and a certain warrant to access this. the fact that the companies disregard court orders is a problem. and government says we're going to build it in so we don't have to take you to court every time.
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we'll build it scott law. neil: doesn't that just scare you that big tujunga foots its way -- bigfoots its way? >> absolutely, but first argument is what do you do you are so worried they will see. neil: i never buy that, you know, i love you dearl i never buy that argumeet, i should not have so justify my innocence to you, say i'm going nothing but i still get pissed off when you snoop around my e-mail. it is a offensive don't do it. >> okay, i get that but they have to have a court order to snoop around your e-mails. neil: i don't bieve it, i believe they will do. >> the government has license, kelly, that is excellent but, there is a subpoena for this information but government said we're not going to require the subpoena or look for a reason. neil: the government -- calls you say, can you help us with this, the companies, 9 times out of 10, whatever you need.
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>> you are right. neil: there is m no writ or ord, they are doing it because they are >> they always comply, the feds knock on their door. neil: when they comebly, they give away the whole store. >> but they are not complying, they are disregarding court orders, in specific cases they are ordered to turn it over, if they turnover incrypted information or take too long to get it then law enforcement is behind, then they can't get the criminal. neil: you want them to get access to the information and you want them to invade my privacy on the argument, i have done nothing wrong so what the hell am i worried. >> you are right, they are not looking at you neil, as far as i know. you are the exception. >> what can happen with this, now you just cluttering all of the after news of information, now it is we don't have a
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reasonable basis or lead, we don't have to go to court, it is clutter. neil: this is not a pro with either of you, government to me like is the last guest at the party who will not leave, they order pay-per-view movies, and raid your fridge, they refuse to live, once they are in your house, they will not leave, they are squatting, they are abusing, god knows what excuse they will use to kick you out of your house. >> a valid point. but, to say that because they don't have a court ord ser not accurate there is a wiretapping law,. neil: please. >> you're position is based on you think they don't, as attorneys mercedes and i have to look at things. neil: the government will do anything they want to do, during vietnam war with enemy list, and through no court orders no injunctions just their way of
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keeping tck of peoplthey did not ke. >> national security a big issue. neil: sure. >> they is wrap it all under national security, it requires to us electric at facebook enational securit requires us to intercept your e-mails, national security is a huge broad blanket. neil: you give the country away ladies! >> there is no justcasion for it. neil: i don't know why i am getting so upset. >> lack at his facebook account right now. >> i am going to your facebook page. neil: i don't have one. wil.>> will you friend us. neil: i'm not into theriends nonsense. >> i will follow you on twitter. >> there you go. neil: 140 characters circumstance this guy a jerk. you have ticked off a quarterback, you dissed ♪
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neil: a quarterback without a prayer. facebook without a strategy, and j.c. penney with a hail mary pass. issue one, tebow let go, new york jets latest former quarterback never had a prayer, benched all was last seen when jets said he would their next big thing, monica, this is a debacle. because, why would you bring a guy over to just sit on a bench, then after all that, let him go. robbing him of what could be a very productive year? a young guy, but betting older, screwed him older. >> i think most people believed he would be cut loose, last year, i think that big mistake that management made was letting
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this become such a big distraction. neil: they brought it i upon themselves, poorly handled. >> he is kind of a spiritual figure you could say. neil: the jets are now god less? >> maybe, and they are without a few dollar signs you can market him. neil: i don't know where he goes, but todd, look at a business transaction, seemed stupid to me, now i think that jets have a half dozen quarterbacks, none seem to be good. so, like a promise in a recruit, but i tell you, something that lacks people skills, what is going on? >> that sure seems to be the case, neil, or not long-term strategic planning, when he was let go, fred walks into my office, said even a winner like
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tebow could not help the loser jets, i thought that was unfair, jets have been in afc championship games two of last four. but how they handle tebow i agree, he never got the chance from did not help can she sancho was there, to have that controversy. neil: future written in pencil right now. issue 2, facebook, you are losing friends fast book, 6 million fewer u.s. visitor last month, 1.4 million fewer the same month, confirming a trend, that some analyst say have been picking up steam, folks, fed up, what is happening? >> the trend is taking place, i think we're seeing is in left, meaning in u.s. and europe, most of people who want facebook acounts have them. and younger folks are dropping
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off goodoward other social media sites like instagram, that limits number of friends you can have, i have way too many friends, sorry. >> i have 900 friends? >> there is no commandment that says -- >> i don't even have 9. it would be too embarrassing for me. >> there is no reason to believe there should be no assumption you should always use facebook for social networking needs. neil: but so what is going to here larger trend? or what? >> the trend is technology. technology moves quickly, people don't stick with one technology tool forever, but what is working for facebook is that emerging market countries like brazil and india are seeing a pick up of activity. neil: more than make up -- >> a lot of friends to be made over there. neil: they got what, 900 million subscribers or whatever. they say, friends yapping with each other. and facebook is in good shape, and able to leverage off that.
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and been reflected in come back from the stock from lows shortly after offering do you buy that? >> i do somewhat, you they will keep a large portion of this users, i just don't think that -- i think they get to a mature state, different countries very quickly. because you know after you look up you know your old high school friends, what else do you use it for? in old days you had to go to someone's house to see vacation pictures, now they post them on the web. so, you know, i can see whe they are losing people. and who has time for facebook, in today's you know very hectic life style. neil: instagram? would have you more time for that? >> the big difference with instagram. you can limit number of people who are following you, a smaller network that is a little bit more relevant. i'sick of seeing my high
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school frienns baby's pictures and whatnot. >> i didn't have any friends back then. >> all right. issue three, who knew guys with multibillion dollar bonuses shop at j.c. penney, goldman sachs buying j.c. penney, buying a lifeline for a retailer. but whose business prospects look for from rovery, todd, does j.c. penney still by regardless? >> you know, george sorros one of his hedge funds has a 7.9% stake, that means that department stores 9s are not de. >> he ner shrank that stake? >> he never sold, but there are other hedge funds what have been buying into j.c. penneys over the last quarter as their stock has come down, nordstroms is
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doing great, as a department store. i think that jcpenney's if they get right manager, if in there and can excuse it wl, i think they could have another run for it. you need someone like james cash penny or sta stanley marcus. neil: that is my problem with j.c. penney, i don't know wre it standing in retail world, i have walmart, and nordstrom, and saks. >> the last cia could not figure -- ceo could not figure it out either, he tried to make it something it is not it is not hip, that is where all money of thrown, to create a store environment to hang out, a shop within a shop field, the customer who goes to j.c. penneys thas, loves to hunt for bargains. there is brand equity, the company has been around forever,
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it has to fine itself, thissic cution that was played out -- execution was off the mark. neil: we'll see thank you, all very, very much. all right, you bought to hybrid to save on gas. did you think that government would let that last. it is doing what has those going green now seeing red. you hurt my feelings, todd. i did? when visa signature asked everybody what upgraded experiences really mattered... you suggested luxury car service instd of "strength training with patrick willis." come on todd! flap them chicken wings. [ grunts ] well, i travel a lot and umm... [ male announcer ] atisa signature, every upgradedxperience comes from listening to our cardholders. visa signature. your idea of what a card should be. visa signature. but maybe the problem isn'isn't your lawn.
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for hybrid owners, what do you make of this. >> a fair tax, they have the same impact on roadways as well as bridges, reason they bought the cars, was because they wanted to save money and be environmentally friendly, but, as i have always said, nothing in life is free, not even love, you have to pay at some point it starts $64, i have a feeling it the rise. >> but whole idea for many of these buyers in getting the cars, they will save a ton on gas, they are paying those gas taxes just not as much, as traditional fuel drivers, what is to stop other governors other stat to penalize the green crowd? if the agument you made it astutely, look, you use our roads and bringing as much as anyone. >> legislation is pepding in inpending in texas,massachusetse
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bottom line if you look at the federal highway trust fund that pays for roads and bridges and repairs to make the roadway safer they will have a gap of 14.7 billion a year, where are they going to come up with it? some from gas tax, some from federal government. i expect, they will start integrating this taxing people for mile they have driven in addition to people with electric cars that say, you know what i just plug into the wall, they will get them took this is also you have to expect they have to make up the difference, it will get worse, with the new cafe standard, to go up to 54.5-miles to gallon by 2025, well, that means you will useless gas, more fuel efficient cars, which bottom line means more taxes coming in a short-sighted thing to think about.
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>> you say fuel efficient, they will be nonhybrids in that list too. so, traditional drivers getting whammied as well? >> i have a sinking feeling that horizon come up from multiple times from different states they plan to taxing people by the miles, massachuss is bringing that up, ittate you have whether more liberal or conservative, it looks like there will be a federal tax, this is why i worry about the black boxes, right now we're just taking 17 points of information you know we can change that any time,al only a computer program, now we tax you by mile we send you the bill, you think you are getting away a electric car or hybrid car, and you are doing right thing for environment, you safe money you will get bitten in the end. neil: that is it lauren, sad but true thank you very much. >> thank you. neil: if profits are not looking good, why are so many not feeling good about their
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neil: even as the as indeed it's the record closing high today and while the dow has done very well, and companies have done very well, neither is doing as well as the overall trend would suggest. very few are participating in this rally and for most of those reporting those good earnings they're not that good. here to explain, and jared, what is really going on? >> to madrid 35 companies reported a and that of those about 66% beat earnings estimates. only 40% but year-over-year
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companies are making to% less than they were but the markets are up 15%. so looking internally the broad scope of companies are making less money butthe markets are much more expensive. this gives me pause. june 2011 or may of last year the exact same multiple and it felt good and euphic and ree weeks later the market was down 10 or 15%. that is the concern that i have. neil: revenue and expectations people don't pay attention to that and to focus on the bigger picture because it is good the revenue slowdown even in the face of better than expected earnings is a brief phenomenon. >> you have got to be kidding. look at the economy we are expected to grow 2% and europe will probably be negative.
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and we are expecting earnings to grow 20% on average. how do you do it? top down from the revenue standpoint an economic standpoint i cannot possibly see that. neil: i am not dismissing it but we have seen that with lower expectations so it is me at school trying to praise my parents for the bad grades but i know expectations and how they're played but are we missing something bigger and that would seem to be the global slowdown. >> the whole economy has been slowing down. that china was booming and although not doing well and even germany is facing
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grosso that picture has changed a lot. neil: wt about the individual investor? people tell me i saw this come pewter glitch -- computer glitch i remember the flash crash i have not gained money in the last tenures so i don't trust the market. it takes a long time to build trust. >> it does. people are breaking a more into the market these days than they were. but every hurdle investos face is to believe is what we hope wall street is telling us and the analyst is telling us. don't worry about declining revenues somehow they will make money and it will be okay. then also having faith the u.s. government is good with
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revenue -- regulation and policy. young people are more informed more than they ever were. and that is weber problem than anything because they see that. confidence as strong as it may seem right now, we have consumer confidence up to market is not as strong as it should be. that is another reason why i have a problem seeing these. neil: and then that would speak of a market that might like the flip side the more the fed provides the punch to keep it going? >> that is possibly true but we will see how much punch we get out of their. the japanese market was overpriced it went up at 36 before crashing into and thousand but usually doesn't last too long.
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neil: our only job here is to keep you informed double sides. if we do so in the middle of a bear market that may be on the bearish ♪ ♪ melissa: i'm melissa francis, and here's who made money today. the bulls who are all in on the s&p 500, the index hit a new all-time high today topping the previous record set on april 11th. tech stocks like hewlett-packard, ibm and microsoft helped lead the way. the s&p 500 is up nearly 12% this year. also making money, lo lean jobs, the widow of steve jobs. lorene's trust is disney's largest shareholder, and disney's stock rose nearly 2% today. she owns close to 131 million shares of disney. that means she scored a gain of clash 148 million -- $148 million. well done. also, bi
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