tv The Willis Report FOX Business May 2, 2013 6:00pm-7:01pm EDT
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us here on "money" today. we'll see you back here tomorrow and "the willis report" is coming up next. >> mellow everybody, i'm gerri willis. tonight on "the willis report". carmakers are slashing prices to get to you buy. new warnings about one of the most popular cosmetics in the country, lipstick. is it toxic? and the business of travel, you don't have to wait in those security lines ever again. we're on the case tonight on "the willis report" gerri: all that and more coming up. but first the largest u.s. futures exchange in the country in damage control mode after reports yesterday
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that traders were abusing the system now vowing to level the playing field, after the "wall street journal" exploit ad loophole leaving individual investors out of the loop. with more, dick grasso, former chairman and ceo of the new york stock exchange. it is always a pleasure to have you. >> gerri, great to be with you. thanks for inviting me. gerri: talk about the cme. some traders getting advantage over a second here. >> if you start with the issues jurn covered in two excellent articles. there is technology advantage that high frequency traders seemly have on cme. and other markets i might add. cme was right to come out and identify it. have gone to the regulators. they said they're going to figures it. i know terry duffy, the executive chairman, he is a terrific guy, high
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integrity. if he says it will be fixed it is going to be fixed but the bigger problem, gerri, the structure of markets in this country is upside down. gerri: how so? >> more than 60% of what happens each day happens in dark pools and in, i call them ponds, that no one can swim in. and that's wrong. you know, i look today --. gerri: it is out of public view. people can't see it. they don't know what is going on. individual investors can't play. >> exactly. that is wrong. play. >> in the world or year and a washington every nanosecond of the day transparency become a 60% of the volume trades dark. that's wrong. gerri: 61% of the cme. we have a story this week that there was a flash crash because of a tweet that was fake. we have had high-frequency trader stories. is it any wonder that some 76% of individual investors say, i
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don't want to invest in stocks. >> how long is that? this coming monday is the third anniversary of the class crash. for your viewers understand the magnitude of what happened that day, a stock like a censure went from $44 per share to less than a penny, back to $44 less than an hour. that is nunn's. it is three years and we have not seen any major regulatory reform. the sec has had lots of other issues to focus on. it. gerri: s true. some people think these traders should be fine. do we impose a tax? >> sexting is the absolute wrong thing to do. taxing is moronic. that is just a way for washington to put a little money in the kitty. it does not solve the problem. the problem is we have to look at the structure of the equity markets, the commodities markets
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and ask a simple question, are they level, meaning how they fare to the least sophisticated user? if not, regulatory reform is necessary. gerri: of the do it? simple one texas, the people want to impose time limits. >> forget taxes, for its growing categories out. what you have to do is get the regulatory agencies, the sec, cftc, fed and treasury cannot look at the blueprint was created and say failed it's very simple. can buy 192 year-old grandmother understand what is happening? is he being protected? if she can't as long as we're protecting her it is fine. think of this. you're right. the public has let the equities market in droves. gerri: did on trusted. i'm telling you. >> and live with the left on the
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table. last to the market was up 14%. you get two tenths of 1%. gerri: if you are retired it is double jeopardy. look. this problem became so much worse when the exchanges went public. you were there when that happened to the new york stock exchange and presided over some of these big changes. did you see the problem coming? >> let me first say, the exchange went public long after they put the final shuttle -- shovel of dirt on my body. it did not happen under me, but going public was a necessity for u.s. markets because around the world they had gone public. for them to be competitive they had to. gerri: to do that they had to make money. added to make money? they opened the door to the high-frequency traders. >> high-frequency trading category is a strategy that has got to be examined by the regulators.
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if it is wrong, if it is corrosive to public confidence reregulate it or regulate it out of business. let's not keep bringing our hands in. three years since we saw the market dropped 1,000 points in less than an hour and nothing has been done about it. i will tell you a couple of quick things that can change the economics. number one, market centers, all market centers. the data provide financial incentives to those who are market-making on their exchanges, meaning uneconomic trades to become economic. that should be outlawed. the technology that delivers data to all investors should be leveled. i cannot, as a high frequency trader -- faster than you as an individual investor. take those two and you will bring the public back in droves because, remember, this is now 31 years that we are in a bull market. the market has gone from 800 to
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16,000. would you rather for the next 30 years on a treasury bond all watch your money go up 20 times? gerri: i'm on your page in the but we have to make these market's level playing fields for everybody. >> the responsibility of the regulators. now taxation. that is moronic. we learned that years and years ago when we sent the bond business as a result of the interest equalization tax, we sent it offshore and it never came back. let's not be foolish. less to the right thing for the public user in the market. gerri: people have to feel like it is a problem. we have to start grass roots. thank you for coming on. always a good to be with you. you have your florida ten. so impressive. >> thanks. gerri: also denied, of battle for buyers. automakers going head-to-head slashing prices for a chance of a better spot i your online search results. senior analyst at mms joins me now to explain. thank you for coming on the show.
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great to have you here. we saw this story. slashing prices as much as $4,000 in some cases all in an effort to get better representation on these on-line web sites. tommy what's going on. >> well, the japanese automakers are in a better position now to do some pricing readjustment. that is a different company. very bold and aggressive and have a goal to gain 10% market share here in the u.s. it was generally between six to 9 percent, so they're getting close. want to make a big splash by slashing prices. gerri: it makes sense. is beginning to look like something of a trend. nissan, gm cut prices. of these companies trying to improve the value equation for consumers out there? the we see more price cuts? >> we made. eaton -- gm cut prices by a few
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hundred dollars simply because it was a selling well. nissan made this move. they're may be some accounting moves by other automakers, but what has really been happening over the last couple of years is the pricing has been pretty strong for the automakers. there have not been a lot of incentives. not a huge amount of discounting generally. gerri: a shell game. they have the incentives. they play with prices a number of different ways. >> well, that has always been the game. and the fact, what they're doing is instead of doing incentives they use that money to cut the price. it's always part of the game of car selling. gerri: you make a very important point that the sun is trying to get a better market share here in the u.s. commander arrested and really having a place here in the u.s. market. to you see that the yen, the
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value of the and is helping nissan do what it wants people to do your? >> they do build an awful lot of cars here in the u.s., but it is -- it is going to help the japanese automakers a little bit. i was quite surprised by nissan's move of cutting prices. that did not think anyone would be as bold. high think what you may see is a lot more advertising and marketing. more discounting of the. the of a trend that i think we will be seeing is putting more content in a vehicle, like toyota or honda and in keeping the price the same or maybe a lower. gerri: you told our producer that the average incentive right now is somewhere around 2300 that there is potential for pricing to become more advantageous to consumers. how will that happen? >> well, exactly that the whole situation with the japanese and the yen. when they start making moves,
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the other automakers can stand by and do nothing. now, if it's a strong selling vehicle in the way you're not going to see big discounting. we are going to see that around the edges, and we always see that going into summers. the big sell them of the old models and the new ones come on the market. that is where the deals are for the consumers. gerri: good to know. thank you for coming on. >> in queue. gerri: more to come this hour, including a look at the business of travel, one of the biggest airlines making a huge investment in the future. a sneak peek at delta's one and half billion dollar project. summer air fare, a popular destination. he will tell you where the best deals are, plus tips on speeding through security and customs. stay with us. ♪ [ male announcer ] with free package pickup
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from the united states postal service a small jam maker can ship like a big business. just go online to pay, print and have your packages picked up for free. we'll do the rest. ♪ we'll do the rest. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally.
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ally bank. your money needs an ally. ♪ gerri: all day on fox business, we are following the business of travel, and we take -- kick off our coverage with good news. summer air fares are falling. the "wall street journal" reporting big declines in ticket prices to popular destinations, including honolulu, new york, tampa, denver, even washington d.c. how can you get any action? >> translator: my ceo of fare compare. great to see you. you buying the story? i am so used affairs going up. >> well, a couple of things. there were really high last year, so they can't go up much higher or people just wouldn't be able to afford them. it's coming off some serious five-year peaks. the other thing that is
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happening is that to the extent people have money they have put off that european trip for the last for five years, taking that european trip. we see more tickets being sold. gerri: that is what we're doing. >> and then you have some economic headwinds with the payroll tax rebate and the economy. that's good news for the summer. at least prices are going up. some pretty good deals, especially if you have some flexibility. gerri: competition fuels prices. i those things weighing on the small? >> not a lot. there merger with american u.s. airways won't happen until 18 months from now. you have united continental fully merged at this point. everything is baked into the system right now. gerri: good rules of thumb for people if they're shopping for an air fare, domestic or international. the price point that there probably going to encounter starting with these u.s. u.s.-domestic flights. what can i expect to pay?
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>> if you're trying to five if you're going to fight you're looking a $150 round trip. even this summer. when you start to extend out an hour to three hours the wayside along from chicago to a coast, you're looking at a 250-275 range. and then on coast-to-coast flights are looking at about the 375 round trips range. round trip including all taxes and fees. don't pay more than 400. those are the prices you should be shooting for. you will see prices and a 500 range, but you will be a will to find deals on the 400. gerri: as good news. the stock about international flights. >> if you're going from the east coast, looking at prices and the thousand dollar range, chicago, midwest, 11500 from the dollar range. just remember die if you are going to london, paris, rome, add an extra 15 to 20 percent, especially for nonstops.
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those three cities, your going to pay a series premium. if you get to places like germany, ireland, spain, switzerland, the cheapest countries right now, that's your best bet. gerri: let's talk about making the fares cheaper. what do i do? fly early, late? >> i mean, certainly if you could buy your tickets for before the second week in june, little bit of a break. if you can buy your ticket the last week in august and that is an ticket prices drop. kids start to get back to school. in between is pretty expensive tickets are. monday, friday, sunday, up $30 surcharge. if you don't fly on those days you won't incur the surcharge. you want a shot between tuesday and thursday. tuesday afternoon, after the sales occur monday night. everyone matches tuesday morning. tuesday afternoon is the best time to shop. gerri: that was awesome.
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cheaper destinations in europe. now cheaper destinations in the u.s. if i wanted a little vacation in the month to pay up for a. >> northeast definitely right now is the cheapest city, boston. let's go help those folks out. baltimore city. if you go down the coast of florida, as you to the southwest you have austin and san antonio, some of the cheapest place to go. denver and los angeles are your best bet. gerri: lots of history. >> fenway park is my favorite place on the planet. gerri: everyone has the best method -- has the best method for getting their own travel deals. here is what they told me. >> we do have a long line.
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>> your travel agent. >> kayak, travels them. gerri: you feel like you're getting a good price? >> it really is all locked, i think. it really depends on the day of the wheat. >> you feel like you're getting good deals are prices are just going up? >> prices are always going up. >> if you fly you can't go anywhere direction -- directly. >> from a small-town mayor really high. gerri: interesting. the website of choice. making a huge investment in the future. the carrier is building a one half billion dollar high-tech
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terminal. it promises to make the travel experience much better for everybody. a sneak peek at the new plan. >> senior vice president of the art. a great title. the new terminal is about to open. who gave us the idea? >> we have a great marketing department. one of the things that we thought through, won the people to be able to experience a before booking a flight because it is so new for us. such a new experience. >> 8 million in the city, cripple that size in the surrounding area. it opened in 1960. >> was not meant to carry 5 million passengers a year through it.
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>> later this month delta moves from its old terminal to this brand new facility. >> it really is a process. we know will need to get down. we have some dry runs nine now. the first flight out, may 24th among departures at the terminal for. >> if someone is watching and was to come down and see this as well as maybe sign up for delta, you know, be a priority member, where are we? >> ride on the corner of west broadway and broom. 376 west broadway where before you go into holland tunnel. up will be along the way. a great have pretended to pick
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up some brave who will you're here. come check out these parents. >> thank you for joining us. by. gerri: thanks. that the internal opens may 24. later in the show we answer the question, who is lazier? baby boomers harmelin kneels. up next we continue our business of travel coverage and tell you how to move quickly. (announcer) scottrade knows our clients trade
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gerri: a look at the business of travel continues. if you're planning to take a trip overseas any time soon, there's a special new program out there. here to answer the question, how do you do that? author of travel unscripted. you know, global entry is a fantastic program. no one seems to know about it. you can get to the security lines in 40 seconds. >> it's pretty straightforward. all you do is go online apply. you pay a hundred dollars application fee. this casual and interview for you with the customs and border patrol because they want to
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interview. bear in mind, there will duke of background check on you. when they do, if you have anything in your background, if you are under investigation, if you have any issues of immigration or customs and the pastor and a tug of criminal record you want it. you have to be doing those things. once you doing approved any literally was through, go to the kiosk instead of a person. put your four fingers down with the fingerprint, your passport there and to set as their you take your customs form and walked straight to the express customs line and a literally out the door, want to say, two to three minutes from the time you hit the immigration, getting in your taxi in front of jfk. gerri: pretty darned cool. the security lines domestically. you have some ideas. peopling counter this all the time. >> come coming to you from philadelphia, and most of the terminals are interconnected. i'll was pull up, and even from
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going out of terminal b, i take a look at the terminals and some times i check in at terminally. one of the things you want to do is get your boarding pass ahead of time. the conductor in the security checkpoint. i find that terminal a is the best. you get right in and can just walk over to a terminal b, c, rightist. the gay your heart rate up, which is good. gerri: you can go through any security line. >> it's a great way to do it. gerri: is it me or are these lines getting longer and longer? every time i get to the airport i have to give more and more time to doing that. >> and not even have to take my shoes are cut off.
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and not to take my computer out. that's great for heavy business travelers. you can also do that. you can do things like credit cards that key to the front of the line. if you take an airline credit card, you can bypass some of the lines and go right to the priority line to get through security. gerri: i avoid the lines with the kids. it just takes longer. >> the family line, the college. absolutely. with the little ones. avoid that. there are ways to get around the problem areas. of the best things to do is talk to a travel professional because they can always give you insights into the best way to get through security and speed away. also understand zipping through these lines, and all depends on what is going on on any given day. different times of the data fly and you can avoid a lot of headaches. gerri: this is all very smart.
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dress appropriately and be nice. just being nice goes a long way. >> the gate agents to the tsa as catch a lot of crap. so show them some kindness. they're working hard. if you go up with an attitude that will give your attitude back. if you go up and say i'm running late to mccammon to the front of the line and you are presented to a presentable human being it will do with it and helped. gerri: all next -- all lecture him on that sen. some of the most best applications out there.
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there is a free version of this application which gives you real-time flight data for flights around the world, and even with terminals. number four, it is free, but you can upgrade to a premiere version. setting up a mobile itinerary. number three, what you heard about on the streets. this application is just like the site but it provides alerts to your mobile device letting you know if prices change and compares different carriers. if you're looking to drive to your destination, up today traffic news from accidents to traffic jams, plus a lousy tessie speed traps before you have -- pass a cop. the number one travel lap. this will lead book your room if the rate drops. it's like having a secretary.
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a new study answers the question of which generation is lazier. the details and your reaction. morning for you women. a lipstick you're wearing come aid may be toxic. find out what you're putting in your mouth next. for seeing your business in a whole new way. for seeing what cash is coming in and going out... so you can understand every angle of your cash flow- last week, this month, and even next year. for seeing your business's cash flow like never before, introducing cash flow insight powered by pnc cfo. a suite of online tools that lets you turn iight into action.
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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 ev though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the estion is how do you make sure you have the money you need to enjoy all of these years. ♪
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materialistic and all work as hard as baby boomers did. there is a big bite. they also blame the bombers for creating the entitlement culture that these and people living in. so it's mom and dad's fault. according to the study they're born from 1946 to 64. milan meals are before 1999. now we want to know what you think. who is lazar? log on to gerriwillis.com and vote on the right hand side of the screen analysis results of the end of the show. on to a surprising story. women of all ages confined common ground. your lipstick may be toxic. according to a new study, lipsticks and losses may be exposing one into dangerous metals like lead and chromium with more on this, the founder of the campaign for safe cosmetics and author of not just a pretty face, the ugly side of
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the beauty industry. welcome to the show. nine metals. and apparently lead is the best one. tell us about what is unease. >> thank you for having me. i want to say that we have known about this problem for a long time. the fda followed up with its own study and found even higher lead levels in more lipsticks. now this new study by the university of california found a whole range of toxic heavy metals, cadmium, chromium, aluminum, lead. for six years the companies have been shrugging their shoulders. gerri: stacey. i understand your point. let's explain to people how much of this you might be interesting
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because a lot of people think that all white lipstick that much. even if you're an average user, you are applying it just under two and a half times daily. if you're a heavy user you are applying it 14 times a day, and testing 83 milligrams. overtimes there have to be the health effects. >> they did try to gauge how much people are interesting. those of us to wear lipstick no valleys creek bed of on the teeth to make its enough. we swallow it. they did find that some of the levels exceeded so-called maximum allowable intake levels, but with something like let it is not even make any sense to look at maximum allowable levels because scientists, the centers for disease control agree that there really is no safe level of lead especially for children and pregnant women are women of child-bearing age. they should be avoiding all
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avoidable sources of lead exposure. it talks it -- its toxic for brain development. so the levels are low in the talks, but the cumulative exposure, where putting the stuff on all the time, day after day. it's getting into our bodies, and we know that these metals are toxic. gerri: think you for coming on. appreciate your time. thank you. >> thank you for having me. gerri: when we come back, his take. and it a problem that could bring down our entire economic system. the gall way. [ man ] onecember 17, 1903,
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the wright brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪ hi. [ baby fussing ] ♪ [ babat od,ing ] whatever business you're in, that's the business we're in. with premium service like one of the best on-time delivery
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obama's failure to focus on the economy and job growth or as he put it last night, the failure to encouraging create opportunity. >> the average college student who graduated in 2011, the year for which we have the most -- the misters a year for which we have numbers, nearly $27,000 -- i mean, this, to me, is amazing. the toughest job market in memory, $27,000 in student loan debt. and those who do graduate are entering commands i said, horrible job market. young college graduates last year averaged, are you ready, 9 percent unemployment. that's for graduates. and it is supposed to be easier for them. but if you include young people working part-time for economic reasons, the so-called under employment rate is a stunning
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18%. gerri: he joins me now. tonight's chalk talk. >> well, it is great to be with you. in fact, the president is in mexico be with mexico's new president. so tonight we thought it would be well to just wonder whether obama will ask mexico why it keeps sending its uneducated, unskilled, and poor workers to this country. and we also wonder tonight about the issue of border security, with a two men will discuss that what i the odds that president obama will ask the mexican president of mexico will do to secure its side of the border because previous presidents have not asked that question. it will be agreed opporunity. gerri: interesting. interesting stuff. what else are you covering? >> who will be talking with general jack sheehan, former four-star general, what is happening in syria. a global war on terrorism.
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who will also be talking with paul wolfowitz about global terrorism and the options in syria as well. talking about the markets today. another record for the s&p. things appear to be getting better, don't they? gerri: i'm jealous. all right. thank you for coming on. always great to see you, and we will be watching. gerri: good to see you. thanks. gerri: now we wanted to bring you the latest developments of stories we have been following. charter school teachers have voted tea in nuys according to a "wall street journal". the united liberal organization runs 13 charter schools and city. 87 percent of its members voted to join the american federation of teachers. 12 percent of the 5,000 charter schools in the country are unionized claiming they want -- there run more efficiently without them. some much for putting the children first. in florida, permanent alimony is staying for now. the governor reached -- vetoing
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the bill that would have ended the practice. his main issue is that the end of alimony but the fact that it would apply retroactively pieces it would be too great our chip to expect people to pay back alimony they have been getting for decades. also would require marriages to last at least 11 years before any alimony is given. florida would have become the fifth state to end permanent alimony. still to come, "2 cents more" are good news for health care and a dire warning for them in the bond market. is it time to rethink your investment? where looking for you and your gerriwillis.com coming up. i'm telling you right now, the girl back at home
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♪ gerri: armageddon ahead. the sec commissioner issuing this dire warning for them muni bond market if rates spike as cities go bankrupt. ceo of venom and financial securities was at the round table during this discussion. you know, never hear anyone from the sec say anything needed. >> i'm a big fan of dan gallagher, and because of like it is. the roundtable on the fixed-income market place in the battle was on, specifically about municipal-bond. he raised the issue clearly that as interest rates rise municipal bonds, we're facing in armageddon. gerri: give me the one, two,
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three of how it was up. >> interest rates go up, bond values go down. as that happens, consumers are suffering massive losses like this effort in stocks and 08 wondering what to do about this. simultaneously state and local governments are facing higher interest-rate costs which will cost them more to borrow money. they will be able to pay those debts and the pension obligations become a crisis. banks, which have to mark to market as bond values go down and they will be facing a stress test palin -- gerri: your schering ag and of me. as take a look at the municipals filing for bankruptcy. these are the poster children for what could be armageddon. elected california, san bernardino. these are places where they are deciding even now that the people who are going to get paid are not the bondholders who allege he paid. that is what people invest. it will pay their retirement benefits of the workers for these municipalities. gerri: this is a change in strategy.
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historical state and local governments always said we will repay bondholders no matter what if we have to lay people off, cut services, raise taxes, we will do it to preserve our aaa credit rating and pay off the bondholders. now they're saying the heck with it, were going to stiffen so that we can keep the local municipal workers employed. as a result, municipal bondholders are going to find themselves without any value. gerri: let's be clear. this entire marketplace is built around people who want their income coming from these investments to be tax-free. this is the retired market. the people who have not been able to earn a penny on a cd or a savings account, who are relying on these bonds. there will blocked. >> the sec representative roundtable made clear that 70 percent of all the buyers are consumers, individual investors, most of them are retired living on this investment income. if that dries up, the seniors will be answered your personal
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financial risk. gerri: all kinds of problems. i find it fascinating. a story in the "wall street journal". the bond funds out there, the buying stocks. >> it's kind of crazy. it is obscene. if you're investing in a bond fund because you don't want to own stocks and then have the fund manager buying stocks without your knowledge or consent. it is an obscene practice. gerri: wire they doing it? >> look at where interest rates are, the fabulous offering an apple just announced. the question is, why would you buy the apple bondman the stock as a higher dividend. that is why the fund managers are desperately looking for higher yields and finding them in the stock market. gerri: and believable. do you believe that the bond will be safer than treasury? >> no. that's crazy. gerri: people are saying that. >> the u.s. treasury is in a limited resource. apple is a private company. although they are a big, you start today, so was kodak, pan am, eastern.
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gerri: he told me, i have not had my clients investing in muni bonds in years. >> they're simply too risky. heavily dependent upon the tax break. they're dealing with pension obligations that many cannot handle, subject and to trade and credit risk. the yields don't justify the arrest the taking. they just don't make any sense. gerri: scary stuff. give me your outlook. >> it will not maintain the pace of the first few months. teeseven like to see that continue on and on. >> let's not get cocky, but it will continue to do well. if you don't invest you will regret it. gerri: thank you. and very nice tie. >> its offer you. gerri: thank you. we will be right back.
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less work oriented high. >> millennialism more important than generations in the past according to a new study. here's what some of your posting on my facebook page. find that i know who complains, baby boomers always think they deserve something. do not know what to tell you, like can be pretty crappy sometimes. but paul says that the millennial is, certainly, they are entitled to a government provided health care, and education. 9% say baby boomers, 20% a audiences.or is. those who follow this diet have a 7% reduction of dementia related illnesses as opposed to 19%. diets rich in all its oil,
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fruit, and fish. that is my "two cents more". that is importunate "willis report", we thank you for joining us, have a great night and we will see you right back here tomorrow. the two good evening, everybody. another record-breaking day on wall street today. the s&p 500 up 15 points, closing at a record high of 1097. the seventh record for the broader index this year, the s&p up 12% year-to-date, the dow jones industrial is rallying from the opening to finish with another triple digit gain. this is the highest since the time the past six
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