i'm john stossel. see next week. e is that confett. >> hello everybody by m jerry lewis. the housing market is roaring back what a great way to end the trading week. also the new tax are the buyers getting the shaft? what is going on with celebrities? thumbing their nose at the law? >> our top story tonight, if

you own a home or have the four erwin k., listen up because there is great news. stocks setting new records today crossing 15,000 for the first time in history.

>> for that is good news. you say it may be overvalued? >> stocks are starting to get overvalued it doesn't mean they will start declining right now but the price earnings ratios are on the high side. well i had predicted 15,000 we in gun there and it could go the 155, i am starting to get a bit skittish. as soon as the s&p 500 gets to the p/e of about 20 that is the time to pull the plug. i am more bullish on housing. gerri: when it comes to the stock market as long as the fed continues buying $85 billion of mortgages fromant and they have said they might even increase that it continues to

draw money. they're looking also for safety. that's why you see stocks like mcdonald's and coca-cola. financial restitutions, some of these private equity firms. as well as the big banks. the regional banks and others still on the process of recovering. gerri: i have to give the props for predicting this not too long ago. here is what you had to say on our show. we'll bring it back. >> companies have a lile more cash now. they earned more money. the payrolls are tighter. they can afford really tough take the market higher. market heitor -- higher. the dow could go up to 15,000 easily. >> we will hold you to that. [laughter] gerri: props to you for calling it. you think it will go to 55 or 16

this year? do you think that the stocks are overvalued? >> i think that it could. a lot of times as markets go up their start to become more of a mania. as the investing public is more comfortable with it. fortunately they come back into the game late in stay a bit too late. they get the most confidence right at the end. so the s&p, the dow, the most overvalued. obviouslwe are in stocks and stocks but we have the key of eight or 10. >> you can find value out there. you watch this a lot and the market going from here on the balance of the year? a lot of people out there, of individual investors', of yours have totally missed this rally. would you tell them? >> the market will go higher. i'm looking at least 165 on the s&p 500. just because we are at new highs is not mean that we cannot go

higher. this is the same thing that happened with investors. it was two years before the internet bubble actually burst. and take a look. if you are an investor. ipo, biotech, of growth and opportunity. gerri: let's switch to the housing market. if you are a consumer out there, there are two things you are concerned about. your retirement savings and the value of your house. so many people of the underwater housing prices up. to you, what do you make of this? is a real? or, if is it as some people say is just prior spot here? >> well, i do think it is real. obviously the first initial phase was institutions that are coming in with cash that did not need bank lending. as this thing progresses, as unemployment continues to ratchet down, banks will lose some lending and more people deal to get loans, refinance and make purchases and that will be will will take the next leg of housing even higher.

housing is that the value. low interest rates and low home valuations. the capability factor is just tremendous. gerri: let's look at those rates. are you kidding me? i mean, come on. this is the opportunity of a lifetime. >> it is demand that is why inventory is so low and the real opportunity has been in the lower-priced homes where the inventory is tight, where the action is right now. overpriced homes, second homes, vacation homes. that is still an issue. right now the great news, first-time buyers, home buyers for primary property, they are in great shape because of 30-year mortgages. the bank's sole more willing to give credit. of course, home builders have had a lot of pressure on them. now commodities and drop which makes it easier to pass prices through. gerri: who will keep an eye and a market for short. with housing agassi still have to wait and see if this is just yet another bubble. thank you so much for coming on.

great job t both of you. look, if you want to be part of history listen up. in honor of the dow topping 15,000 for the first time fox business and it out these hats on the floor of the stock exchange today. you could own some of these yourself. it even says fox business on the back. all you have to do is treat me. why you should have it. the best reason gets a hat cannot money, not perks, not kids, just the best reason. volume of their way and on our question. in light of all this news, do you feel richer? log on to gerriwillis.com, on the right inside the screen. i was sure the results of the end of the show. coming up, hybrid and electric car owners are furious over a new tax that is just for them. here is what is going on. hybrid cars use less gas, which means travers also pay lower gas tax. to make up the difference handful of states are slapping those drivers with a special fee .

virginia is the latest imposing a $64 per year tax on drivers. with us now, one of those drivers. he joins us from the sea. he is in front of his car. thank you for joining yes. so, let me just ask you about why you bought that in the first place. did you think you were saving mother earth? >> we have very good word of mouth. and we needed a new car. no, we were delighted that this had the energy conservation technology. we actually are finding we're getting like 43 miles per gallon. it is really more of an economic and frustum although we care about the environment as well. gerri: how much you saving? >> well, i drove over here to this point today. the dashboard told me i was getting 43 mpg. now, we have another car, and on the average home.

that is the 18 miles to the gallon. that is, you know, less than half the cost of getting from one place to another. you know, depending on how far we drive that could be like 1500 or more dollars per year in savings. gerri: all right. virginia is on to you and wants a piece of your action. it will charges $64 per year in a tax or fee just because you drive the pri's. what do you make of that? >> well, i could not believe that the first time i heard it. i thought that this has to be miakes. it's almost like a reverse cash for clunkers. and we -- you know, it is not going to put us into bankruptcy, but i wonder if it is the foot in the door because it goes on top of an already very high state car personal property tax. gerri: right. you're really being taxed twice for the gas that you do use and then this fee. is that fair? >> i don't think it makes good

sense from a public policy standpoint because we really in this country need to reduce our imports of foreign oil and reduce our dependency on some very dangerous areas of the world. try to divert some of those monies away. just because. but alsot is kind of a guy you. we are conserving, doing good things. and they come up with this fee. gerri: that's right. it is unbelievable. it seems to me here you are helping yourself, helping the environment. virginia politicians wanted to cough up more money. the you think you would never sell a car sort of in protest? >> not at all. we're keeping it in protest. that is the way they are sometimes. if it moves that want to tax it, but we are very happy with it.

even with its current level, it's very economical for us. i just hope that it does not lead to a bigger fee in the future as more and more people get hybrids. they reduced their gas consumption and gas tax revenue drops. i hope they don't go for a bigger bite of the apple at the expense of the owners. gerri: we should point out that most owners get a big fat tax credit. did you manage to get that? >> no, we did not to my knowledge get tax credit. gerri: okay. well, darn it. there was a way you could have saved some of that. thank you for coming on. it is a pleasure to see you. thank you for telling a so what is going on in virginia. they did you coming and going. there is no way to avoid it. thank you so much. gerri: we are just getting started. a lot more still to come this hour including billions of taxpayer dollars billing defrosters. plus how the rich and famous are breaking the law and getting

away with it. our legal experts breakdown the latest shenanigans in hollywood coming up. 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 easy... 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...

♪ gerri: celebrities skirting the law and getting away with it. we are bringing your roundup of the latest high-profile cases of celebrities on road. joining me now, high-profile divorce attorney. and fox is legal analyst. as to my want to start with this video of reese witherspoon after she got -- her husband got stopped. she was with him. do you why. check this out. >> what the judges tell you to do. >> i would like to know what's going on. >> is under arrest.

>> i have to obey your orders? i am being arrested and handcuffed? the name? >> i need to know. >> not yet. >> okay. you're about to find battle i am gerri: to you know him. have you been down this land before? you have represented all lot of celebrities. >> it is a new world. twenty years ago there were not video cameras everywhere. soap normal people surrounded by people that protect them, publicists, good lawyers. gerri: normal people don't act as badly. seriously. >> come on. everyone has their moments. >> you don't pull out the celebrity card. i really wanted to defend reese witherspoon becauss we are both from harvard law school grads. i cannot defend my alone here. what she did was so outrageous.

then saying, do you know who i am? your going to know my name now. gerri: here's my question. does it ever work to say, do you know who i am? >> of course not. but the problem as do everything they do is magnified. it is so bad. they are desperate spirited want to go to jail. she thinks she is powerful comanche is. but to work. she is under the influence. gerri: keep going. >> she was in character. sometimes he should not be in character. she was not a lawyer. >> trying to litigate their way of this. >> what did she do after? she took care of it, may direct comments and apology. thank goodness she is good people surrounding or she has good instincts. she did the right thing. >> she did the right thing by coming forward and saying, i

made a mistake for her pr image. legally she still looking at the same counts. it does not matter. gerri: the stock about lindsay lohan. there is another good story. a woman who was always in trouble. she has avoided jail time, but she is in trouble. she was supposed to show up rehab. she skipped out. what next? >> that is a different story. this is a repeat offender. it doesn't feel like she has hit rock bottom. people don't get better until the realize what they have done is inexcusable. she keeps getting into the same kind of trouble. she should kw there are cameras everywhere. >> you're talking about her getting better. i would love to see her get better i hope all the best for her, but the problem as we are kind of excusing it. out there driving, draw, not doing what she should be. she could be hurting other

people. if it were just a regular us, if this were any of us we would be put in jail for a long time for that kind of behavior. >> that's true, but it is a two-way street begins i have seen unrepresented people who are famous and judges give them a harsher penalties of that everyone else thinks, oh, my gosh, i should not do that she came forward and said that it wrong. a normal rson would because that is admitting guilt. for her is more important to the help admit guilt ever public image better. lindsay lohan, a public image sooner or later will take it. some are later the best directors will be calling her. it wanted to rest on our. gerri: that has already happened. already at the bottom of the pile. the city represented a lot of famous people. let's show fol to that includes. michael jordan, sure. i mean, you have been down this road many times. >> we have dealt with a lot.

all i can say is they're real people with real issues. when it comes down to criminal or family issues, they bleed to my care, crime just like everyone else. >> my heart is not league here. if you know you're going to go with your husband and drink too much, multimillion-dollar, higher driver. afford a babysitter, nanny. a car. >> it comes with the territory. they understand that there will be under the microscope. they really do have their hardships, and it is hard to beat sympathetic to be to make great money among but they're out of a job based on teenine. there is some sympathy that they deserve in my opinion. gerri: you guys did a great job. i think those are crocodile tears. that you for coming up tonight. great job. appreciate it. coming up later in the show, we will tell you what you need and don't need to get when buying a car.

in filing for unemployment even when you have a job. the multi-billion dollar scam that is costing taxpayers big time. stay with us.

♪ gerri: fronters bilking the government by billions. next, we break down an

♪ gerri: more than 3 billion of your taxpayer dollars went to a fraudulent claims for jobless benefits in 2011. that is according to a new study by the st. louis fed.

two is ripping us off and how are they getting away with it? dave rogers has been working the story. how is this happening? >> this is happening by and large because this government employment program has gotten so big poster session that there are so many more people in it and it is harder for the government tkeep track of who is telling the truth and it wasn't going from 40 billion to over 100 million. gerri: that is a lot of money. >> i spoke to some private investigators. one of the really stunning things that they told me is that people are actually filing for unemployment claims from inside prison. gerri: one philadelphia prison has $7 million worth of claman's coming from inside the jail because their friends and family on the outside were filing claims in their name in cash and checks. gerri: the money wasn't even going to them in prison. that is hysterical. >> another really wild story from an investigator. he was watching a man in connecticut.

the lake front palace. all on unemployment money. gerri: these people are so creative. people who break the law. you have to give them credit for being creative. huckabee put an end to this? >> the department of labor declined to comment. what they did do is put their release on their website. $170 million worth of government grant money toward states to beef up and bolster their unemployment insurance integrity programs within the state. hopefully this money will be put to good work and move more people the job. it remains to be seen. gerri: when government gets on the case you don't know how will turn out. thank you. time now for some of the top stories. the bulls are running while on wall street. we told you about this earlier. the dow crossing near record 13,000. the s&p carson 1600, both up

around 13% this year. good for your retirement. berkshire hathaway reported earnings a short time ago. warren buffett's company earned 5 billion beating estimates. liz claman will have a special interview on monday morning. you will want to watch that. and 60 minutes commercial free, all whole host of special guests including bill gates. must-see tv right here. also, older workers are a hot commodity. the experience, we are told, is back. especially looking for people with management skills. even people over 70. and the irs is allowing a new method for calculating the home office deduction. you cannot simply deducts $5 per square foot up to a total of $1,500 per year. you may find out doing the deal will save you more money. those are some of the stories trending right now on foxbusiness.com. coming up, desperate times for desperate measures. find out the latest trick up their sleeve.

next, we answer the question, how do you do that? tips on buying add-ons for your car. who will make sure you are not taken for a ride. ♪ ♪ if you have high cholesterol,

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♪ gerri: although lenders under investigation. the consumer financial protection bureau issuing subpoenas over extended warranties and other add-ons. dealers trying to sell car buyers. something consumers need to be aware of before shopping. how do you do that? joining me now, the car coach. it is always great to have you on the sho thank you for helping us out today. i want to walk through these one by one because you have some great information for our

viewers. which ones to buy, which wants to avoid? extended warranties. what do you say? >> i always say if it is a factory warranty in you're buying it from the dealer for the brand of car and you're buying a used car from that lot, okay, that makes sense. if you're buying the after market extended warranties, lot of dealers have been bitten. some don't you carry any more. don't buy those. always a little bit of scam in that. with that big print giveth the small print taketh away. the repairs are not done if the repairs are done and some other place. i would say avoid the after market repair warranties and go with the factory once if you're going to do it. gerri: and i have to say, what a lot of people don't take into consideration, the margin has virtually vanished. warranties is where they make their money. >> absolutely. the money is actually made in the service and repair. the car sale itself is great for

cash flow, grief for the, but there is not a huge margin like there used to beat the warranty is an add-on, especially on a used car. gerri: what about rust inhibitors to moscow start? this does not sound good to me. >> you can buy cannon's got cut for $10 a less. do-it-yourself. the truth is, most of these have russ protection. unless you are building up of truck it probably doesn't make much sense to get the rustproofing. gerri: here is something new. prepaid maintenance. >> in some cases it is. a lot of the higher end luxury cars to have it, and it can actually be a benefit. they are negotiable. to oil changes per year in the tire rotation, and that will make the difference right away. this is important because i get a lot of letters.

get a free oil change and that the use the right oil because i've had people say, they put in regular. no. make sure it is on the receipt that they put in the correct will, otherwise your the one that will play on the warranty. gerri: what is that and how does it work? >> you have no choice when it comes to gas insurance. you are financing more than the vehicle was worth. i recommend that insurance in case you lose your job or something happens and you have to figure out how to pay the payment. that is a difference in case the cars told between that and what yo hope. so you can also negotiate by checking with your own personal insurance company. but the best thing is not to ever be upside down on a car which means you all more than its work. gerri: that is so easy to do because the minutyou drive off the lot you lose some much value. it is almost impossible to keep the value in your car. when you look at these to my here is one thing that bugs me. you really have to look in the

fine print to understand. how will this closes this? >> let as said before, with the big print giveth the small print taketh away. tickets, and treated. this is so confusing. ticket to a friend, ticket to your bank, take it to someone you trust. you will see in the small print there is always a deductible, always -- we are not actually doing it. only major failures like air-conditioning on the whole engine. that may not be the case. i always say avoid the aftermarket warranty spirit if you're buying a used car or a new car and you drive a lot it may make sense. gerri: this industry is on fire. auto lending has picked up speed some 700 need 3 billion. the most in four years. will this action by the federal regulators slow this down? could it hurt the business? >> it could. when it comes to financing these

cars, there are a lot of things they want to get -- whenever the government gets involved in anything, especially the auto industry, it will be positive. no like the fact of the help them get through bankruptcy, but that is a matter of opinion. as soon as they start putting more regulations on when in reality it is up to the consumer to make choices, if we are babysat too much and bill read things that we will get bitten whether it is your car, home, buying a refrigerator or whenever it might be. it is all is buyer beware and your responsibility. you know have to know little, but you can ask somebody who can. you can get on the internet answers these things and find people based upon the brand of the manufacturer who would tell you the truth. people have had experience commend you can learn from that. gerri: a lot of sources. thank you for coming on. great stuff in great information and always a pleasure to see you >> always a pleasure to see it, too. gerri: on to the stay in business history.

this day bac 1991, the long running prime-time soap opera dallas aired its final episode. the show originally debut in 1978 as a 5-part miniseries. because it was such a big hit it turned into a regular series. most famous for its cliffhangers including the who shot j.r. mystery after 357 episodes dallas remains one of the longest-running full-time whole hour prime-time dramas an american tv history. in june of last year that, returned just finishing its second season, its third season will premier early next year. it was today, may 3rd, dallas aired its final episode of cbs 22 years ago. when we come back, we go in fashion at one of the quickest and most fun sporting events of the year, the kentucky derby. and next, j.c. penney still trying to rebuild its image and bring shoppers back to the doors to reid can and apology work? stay with us. mowing your lawn isn't always easy.

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♪ gerri: $170 million, that's the reward for failure in corporate america today. that is what j.c. penney paid its former ceo, ron johnson, and his top three executives. during that time the company also fired more than 40,000 people. it all started to really fall apart for j.c. penney when it ended what it called fake prices. what really drove sales are inflated prices knocked down so shoppers think they're getting a great deal. j.c. penney has a new ad campaign and admitting their mistakes and begging shoppers to give them a second chance.

>> we heard you. now we would love to see you. gerri: with us now, the president of talent to bond. welcome back to the show. apparently it takes a village to record company. ron johnson could not do it by itself. we were looking at the recruitment costs on some of these executives. it is unbelievable. michael francis, the president, getting in 12 million cash bonus the co the 4 million. getting in a million signing bonus. before these guys even did a like a word they get all of this cash. what does this tell you about the business? >> it tells me that the business is inherently flawed. unfortunately you have to spend all this money to attract this so-called talent to fix the broken company. but what you got in the process. ms. gerri: it's a mess. do you think that this ploy

apologizing is going to work? >> at think it's ridiculous. all last-ditch effort. if the lead with the apology year ago and then rolled into the whole palin to generous thing and then rolled into the doe, by the way, we won't have any more couponing think he might have had a prayer but i think it is ridiculous. it is laughable and sad. gerri: think it will be will talk customers and using those coupons and coming back. >> now that you have the old ceo a bunch of reworking. pay no attention to the man behind the curtain. that's not -- let's do what i want to do. cost a ton of money. it's just ridiculous. go back to these old tried and true processes that got them

into the graveyard that they are in right now. i just think it is a recipe for disaster. >> you have to ask yourself where is the board and all of this. gerri: unbelievable. quickly, j.c. penney has been jacking up prices as much as 67% on some items. surprising? >> not at all. blood in the water. they have to make a profit. they brought in all these brands. now they're getting pushed back from the people who said, that you are going to promote me. what happened. all these concessions. of course that does not surprise me in the least bit. gerri: we are showing a table that have marked way up. of course we are seeing the coupons already out there for $10 off, $15 off, 20 bucks off. i guess it will have to wait and see if this strategy really plays out. thanks for coming on. good to see you. >> thank you. gerri: welcome a company apologies are nothing new. many other ceos have had to come out with me at hopeless.

tonight's top five. netflix. 2011. ceo read hastings wrote customers and e-mail with the first line i messed up. after netflix hiked prices by 60 percent for people used both streaming in dvd services. however, the company went ahead with putting them up anyway. barclays last summer the ceo of the world's third largest bank said we are sorry and recognize we have disappointed their customers. number three, bp ceo. he was deeply sorry and will make this right after the huge oil spill in 2011. number two, coca-cola. hemistich is becoming popular punch line for anyone who live to the 80's. the company introduced new coke, the first change to the soda in nearly a century. after getting 1500 complaints per day the company returned to the classic taste less than three months later. the number one corporate apology is apple.

who could forget the disaster that was apple maps. tim cook has apologized not once but twice saying we are extremely sorry for the frustration that this has cost. those were some bad maps. still to come, my "2 cents more" on another obamacare broken promise and we go in fashion at the most exciting two minutes in sports, the kentucky derby. a look at some of the spectacular attacks next. ther, it puts a big smile on my face. he was so warm and loving. he died from melanoma when he was 31. every hour someone dies from melanoma. it doesn't have to be someone you love.

gerri: we are gog to the kentucky derby in fashion. female spectators are known for their big c

♪

gerri: in fashion tonight, 139th kentucky derby which, of course, takes place at churchill downs. the event is synonymous with big cats. joining me now, someone who has designed a half or two in her lifetime, suzanne newman, head designer and owner of suzanne in new york city. one of the few custom milliners left in the world. we are pleased to have you on the show today. thank you for coming on. >> thank you. it is a pleasure to be here with you today. gerri: let's talk about your hats. why is this your biggest season? what is it about the kentucky derby and hats? >> horse races and particularly the kentucky derby is the biggest hat event of the year in

america. of course we not only have the kentucky derby, but we also have the day before and it is also -- gerri: what is that? >> the oaks is the race of the phillies. it is the race of the, obviously, the girls race. gerri: hence the name fillies. >> that is why a lot of ladies wear pink on that date. it is also a day that represents breast cancer awareness day. so a lot of paint worn on the friday before. gerri: that is awesome. we brought in a line of that year. you designed these yourself. tell us about your process and how you do these. >> offenders are gathered and selling of strips and then the strips are sewn on around and around the had until you --

first of all, you make the shape and then you throw the strips around and around on to the base of the hat and tell you -- and then used in them up and get them all light and fluffy. gerri: they are fluffy. tell me, who will wear a hat like this? and when you wear it, custom for the occasion? >> probably yes. and it is very specific for a derby hat because it is a large hat. the colors will go with anything that you would be wearing. a black dress. gerri: pink, orange, cream. >> exactly. so it will go with almost anything. gerri: how much will highlight this set me back? >> around 1500. gerri: wow. not inexpensive, but their custom. how did you learn to do this? >> well, i started doing it 20 years ago.

obviously i have progressed over the years. doing things a little more intricate. i have traveled to europe over the years and found fabrics and materials in europe and with trial and error i put things together. many times i will put something together and not like the results so much and take it all apart and try again. gerri: scrap it and start over. i know that game. so, you know, i am used to seeing these in london that begins with the queen. you see the hats. take a look at these. just amazing. how do you decide what is a good shape for a face? for example, if you were going to choose a half for me what would you choose? >> i would probably choose something like that. i think it was sued you very well. not only for the kentucky but

you could wear that to a wedding the bridegroom. it would be a very beautiful at for you to wear. gerri: i'moing to put this on. how pretty is that. i love it. it's great to have you here. thank you so much for coming down. your hats are just beautiful. >> thank you. my pleasure. gerri: isn't that terrific. for more affirmation you can log on. we will be right back with my "2 cents more" and the answer to our question of the day. do you feel richer? ♪ the boys used double miles from their capital one venture card to fly home for the big family reunion. you must be garth's father? hello. mother. mother! traveling is easy with the venture card because you can fly airline anytime. two words. double miles! this guy can act.

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>> the stock market pushing into record territory after the jump from not only last month but march and february as well. do you feel richer?

so on paper id and he says no because expensive have increased more than income. and with the on-line question every weekday and here are some of the e-mail's. store brands are the way to shop and. >> white is in congress cut benefits is the del is going after what we the taxpayer benefits we have worked all our life for m&a and they were a couple of years? >> left is that dan is a physician has no problems stemming from the taxpayer will congressman up to ask the administration when is enough enough with taxes on the american people? send me an e-mail. gerri willis.com and obama

early this week praised his signature law 78095 percent who have health insurance already this has already happened. their insurance is stronger and better in more secure than it was before. >> not so fast. turns out one of the most popular aspects of obamacare uld be ending according to the associated press manney is running now for the pre-existing condition insurance plan that to these thousands out in the cold. said officials are being told it is not their problem as the federal government shifts the cost on to them. more broken promises from obamacare. that is my $0.2. don't forget the dow 15,000 this hat could be yours if you give me a good reason. to meet me and i will even autograph a and a quick

thing keogh the last show for a number of our team for over two years he is joining the fox report. good luck. thank you for joining us. notwithstanding you for being with us. there appears to be a break in the obama administration's seven long effort to limit the public's knowledge on the terrorist attack in benghazi and that resulted in the murders of christopher stevens and scene smith and glen do you her at this. four career employees are seeking counsel from private attorneys to represent them in the face of white house threats to prevent them from divulging classified information to congress about benghazi. the perspective