neil: all right, i just down a pint. welcome, everybody. i am neil cavuto. i knew this irs scandal was not about to quit because when they weren't so much on to say a word to those investigating guys over the notion of this scandal being short and sweet, that can be done because it doesn't apar to be happening. my advice,o he may want to:a special prosecutor. a ect i raised with marco rubio seconds ago. neil: do we need a special prosecutor?

>> there is some downside to having a special prosecutor but we may need that. in way that will get to the bottom o it. neil: a guy who knows this ve well, robert gray on this. should they have more cause for a prosecutor >> when they take e fifth amendment, that spells trouble. more trouble than it was earlier in the week. it has been for at least eight days, they have to make a determination fairly quickly if they are in for the long ha or have to set in motion calng for the special prosecutor. neil: what difference when a

special prosecutor expecting information from anyone else? >> they will have all the powers department of justice will have witt one significant advantage, presumably publi sentiment behind t fact they would be able to conduct independent investigation. if that special prosecutor or special counsel is appointed, decisions that would be made will be made by the special counsel. do you grant that witness immunity for what they might know about contact with higher-level officialwithin the irs? neil: is this a pattern you are seeing that people don't talk?

i don't want to talk. they hope it goes away. can it fu what will be a lengthy, perhaps summerlong scandalous environment? >> sure. on the one hand personally for the witness on advice of counsel otect yourself serving a fifth amendment purpose. neil: i see that as just a naive person, but to the american people it looks ke they are hiding something. >> schmidt statements under oath. because of the potential of inconsistency, but understand the purpose of the fifth amendment waa to protect the innocent, not just to protect the guilty. it is not an insignificant step.

i would also suggest to you it means her government career is over. neil: at the very least. if anyone at the irs is doing this kind of stuff, hiding informatio and targeting groups, they should go to jail. >> it is not the underlining conduct, it is the cover-up which causes the problems. if they were obstructing justice or mak and

the man who used to head up that department, with the you make of the foer top prosecutor saying right now it is looki more than it did before, we do have a need for somebody to st back. >> i'm not convincedased on what we know today is special prosecutor is necessary.

i have issue with prosecutor. people have this notion special prosecutors today are independent of the white house. the independent counsel statute expired ecause congress realized there are serious issues with the authority and scope of authority of an independent counsel. we can appoint a special counsel but how much independence i have from the department of justice under the independent counsel statute. i think the department of justice is in e process of evaluating what the case in this particular matter. neil: i'm sorry, i just want to be clear, you would recommend what get the response a lot of folks

hope, this seems like a kangaroo court what is going on now. would have to somethinghich would seem more effective, what would that be? >> engage in an investigation. in thiinvestigate and prosecute. that would be unwise at this juncture. you don't want to do anything in congress that could jeopardize the investigation. i still think we have to give ditional time to make some decisions about the best way to% ensure justice. i do agree with your other guest, the assertion of e fifth amendment is it practices it up.

neil: did that ppen when pleaded the fift i see your point about c with a justice goes from this on s own, but isn't that against the fox pleasing henhous >> i have confidence in the department of justice, and they may make a decision that can't move forward here, but if the department makes decisions contrary to the department of justice that visit with career prosecutors stepping forward with these becoming politicized at theepartment of justice. we he to be very careful making the decision. neil: someone always sings. normally deals are off if you make the sing.

buthat is the next step. if that is the case, how soon? >> that is hard to predict frankly. it will depend upon what evidence ttey are able to communicate the case we can present to someone in terms of they can put pressure on the individual and that individual is willingo come forward for a de that may be critical prosecuting somebody for wrongdoing neil: very good seeing you again. thank you. what do you do when irs agents get out of hand? >> let's find out what happened here. either one

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il: recently filed an amendmenthat would call for punishnt of ir agents who leaked. what wld that embark upon? >> it would be a felony if they do that intentionally. you're turning over documes to a govnment agency, somebodyy cooperating with the press in an effort to embarrass you. separate from the nonprofit section, another thing that hasn't gotten enough attention. it has to be criminalized. neil: forget aboutf you should cut them, any agent who normally go throu documents should know they should go to prin. what do you think of thaa? >> i think it is terrific. this is like irs agents gone wild. what we thought were a bunch of

frat boys causing s trouble, we're finding it goes all the way almost up to the top. why no hold them to a standard second to the military should be one that we give our most cred of information, why should we sit there and allow them to get away with this type of trajan? neil: how doou know when you are targeting a group who are leaking a group that it is actually long term best of intentions to get either money or suspicious activity revealed out of a group. it is stifling that activity. >> whatever happened at the irs, we don't know how much was politically driven from the top or a culture the thought

departed groups were scary and we should follow them cloly. diffent from choing a group and selectively leaking to the press they have pretty interestingtax status you ought to look at. that is super creepy. not necessarily under discussion here. we just had the ministration going after fox reporters and other reporters using the espionage act. dy miller going under for the intelligent identities. both were designed to stop leaks. they give prosecutors more with thosgiven information. i understand the sentiment, but it might just be another ruse to after journalists and other citizens even more than we already are.

neil: in washington is seems rampant to pick everything apart, to strong-arm your way. if you're just trying to lay the foundation, without the boss saying aything. >> it is definitely intimidating. whether they let the irs at the time directed it. whoever is at the top is absolutely aeptable. unfair targeting of the tea party groups, the other thing could be cultural competence. to get tax-exempt status you cannot be engaged political activity. but it is not always clear. neil: media matters in texas. >> i don't work for them

neil: i amot saying you do. >> if you contribute on your work-related blackberry, is that polical activity? they say theyound political celebs do due diligence as opposed to groups who are cancer related or disease-related. >> it was like constitution, right-wing politically. president obama ha acknowledge this, they improperly weighed the political terms, corrected for it anddthen they went back. >> cut your short load. neil: to these gentlemen's point

whether it was deliberor accidental, if you are out of the loop, you know about it. i don't know if that is going to cut it. >> everybody tried the obam administration. he pointed out several times they hired 16,000 people to handle omacare. we had to instruct these guys artothe same high standards we e the irs agents would have. iif you know how much we make as well as medical records, it is very dangerous. neil: somebody on the whole usama bin laden raid mterial, stuff thatoesn't make them look good, we will be on you.

>> go read the new yorker article. what part wasn't a leak? no idea if any of it was true. neil: where do you think this is going and as a compromise these institutions. >> what pains me is this is like a slow pitch across the home plate. obama needs to acknowledge the wrongs, move on and not let it compromise the agenda. >> he has lost hisesponse to this. >> so far yes. why aren't we talking about dodgg llions odollars of taxes? i am fascinated and amazed we are not talking about apples.

neil: apple still paid close to 24%. legally using the tax code..% >> that is an unethical use. it is very m reled. oh, myoodness. they are vry much related. neil: weill have them all back six out of 10 voters say the gornment has simply gone too far by seizing phone records. now kiss your internet privacy now kiss your internet privacy goodbye. are you still sleeping? just wanted toheck and make sure that we were on schedule.

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neil: this is getting weird. the government e-mails and messages, like irving is the leader of go daddy. he says washington has gone too far. it is a little unnerving. we are curious about who is on your side. >> i've never had at conversaon with the irs. i would say we protect the privacy of the small businesses. there is overreaching. we're in the business of putting small businesses in business. when the economy is ildren a little bit people turned

themselves in ameca to say i'm going to go start my own business. they wwll take thattep and the easiest place to do that is online. neil: became a cottage industry in and of your own. i assume you get powerful political atntion. the government thinks a lot of people to your site, we want to know who they arr. just like essentially ming that way to google and to verizon. weant to get these phone records, i'm always shocked they just say yeah. >> i think it is not right

neil:hey are suspicious characters. >> and the evidence is? where is the proof that is actually happening, is the a subpoena? quite frankly we are trusted by these little businesses to protect them. protect them from hacking, protect them from thselves. trying to figure out how to make something real out of it. providing the service that does that for them. neil: two people overreact? i have people who have stopped e-mailing me the sources i used, by pizza guy, to make the pnt

is a clling, corrosive effect doing quite well, but you might think twice and i really want to call these people were set up a site knowing they may be handing over valuable information. >> y policy that creates fr, worry, doubt in the heart ofthe brain, i want to try this. you can send mail back and forth. there are a lo of things you can still do to protect yourself. neil: as a human being, your

reaction to this, what do you think? >> it was very awkward f a government agency seeking the truth on all matters, i was surprised. neil: do you think the governnt is more intimidating or lten to it after this? >> afterou supposedly taking pictures, taking pictures of the individual to take that position was rather interesting. neil: there might be a legal reason for it. >> we will see how that enros over the next uple of weeks.

neil: go daddy, what is behind that name? >> he was trying to figure out, this is interesting with domain names, it was not a very catchy name, big daddy was taken. go daddy was en, so we took that. all over the wall. they will do whatever th do to get a name that is unique and might be catchy. 800 new top-lel names, tir own unique name. neil: when we come back, another terror atta. this video today is very, very chilly.

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bny mellon. >> we must fight them as they fight us. i apologize women had to witness this today. neil: an eye forn eye, but is a making of a nightmare in london as we speak. a terror attack, that is what the mayor of london is calling it. an issue so serious they cut

short a trip to france to me with top security officials to find outtwhat went down. new paragraph beheading of a soldier at the hands of that guy who are now behind bars and being aggressively questioned authors. there in lies the route raising hackles again, they will do it and bragbout it and even on video. what have you connected with this? >> it is something that very mean, very vengeful and the perpetrators are asking to take out their aggression to punish the british mility for some

support of u.s. the train line is homegrown in the uk. it has a huge mmgrown population where a high level of terrorist activity. it is very much point this whole thing. today's attackllustrates what it can do, make no mistake about it, these guys are probably motivated in part because they believe we're at war with them, they had been commanded. when i have issued this oer, peopleo uuderstand thi a command.

this resonates with people like these two guys and the more christmas gifts, thais what they want. representing whether it is the british army or the u.s. army and people have to understand that is what this illustrates. it is not a random act. neil: the part of gruesome killings put on tape and sent out to the world. we are not only bad, we are awful. >> you can imagine how this visual resonates on the public. you could say for example the attack that took place at fort

hood could have gone another way. there is an attack inenmark not unlike this one and in france. where do we see this all coming? it is very difficult to stay ahead of these things. what is to be tivation? if they believe that, we believe we use drones indiscriminately, that ie way they view it, have to exact revenge. we look at it, his revenge does noend because the ceo says we didn't have a good quarter.

revenge goes for these guy five10, 15 years. it is not going to disappear. we havto be prepared for it. neil: thank you very much. meanwhile the foxbusiness alert, a rare dow jonesindustrial. he would n thank you orville and wilbur... ...amelia... neil and buzz: for tehing us that you can't create the future... by clinging the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.

i did? when visa signature asked everybody what upgraded experiences really mattered... you suggested luxury car service instd "strength ting with patrick willis." come on todd! flap them chicken wings. [ grunts ] well, i travel a lot and umm... [ male announcer ] at visa signature, every upgradedxperience comes from listening to our cardholders. visa signature. your idea of what a card should be. neil: investors not geing homesick, he is getting sick of facebook and the shares are on a wicked streak. first up, ise one, hewlett-packard, the biggest gainer thisyear. boosting its outlook. numbers afr the bell showing hp is on a big role.

bias? >> a big role on the side. it ia big part of it i make within. -- meg whitman. lookinat what she has done with ebay, what she did at the pass corporations including disney. in my opinion youook at abc, consumer revenue down. it is about what the market is believing in. neil: pcs are going down, a straight line, everybody is usintheir mobile device. 20% comes from printing but this is an interesting point that

came out. hp cut the expens by 9%. that is one of the reasons the bottom line looks good. neil: you are not a believer? >> we had one disaster after another in the past fr yeaas. a good distanc businesswoman. neil: issue two, facebook losing hi cool. david, is facebook ready? >> one thing about facebook that is clear, it has a guy running it who knows what he is doing. i know there's a lot of talk about teams trying to look for something else but there really hasn't en anything to replace it. we're hoping to to get into the social space but there hasn't

been anything to replace it. the problem with facebook is it is not making money. even thougit has come down from theop price, it is still so ervalued. it is 2001 is the price equity ratio, it is ridiculous. the stock is overvalued. it will be here for a ile, the stock i still overvalued. >> zuckerberg istill in charge charge, but he will not have the control he has. cool kids are not using facebo. he is a drifter.

>> there are lots of alternatives that do not show the adin your face. the valuation scarcity, but linked in is also high. neil high-end homes, bouncing back? >> if you are lucky enough to be holding the stock it is at its top now. neil: to you by this? >> i don't. nevebuy other top of the market. i have been wrong past two weeks. the net inme of americans had not increased, that eventually

comes back inerms of what they're able to buy. the fed getting ready to stop buying those mortgage bonds, interest rates will go up and that hurts the housing mark. neil: even aowing for the fact amicans have a much shorter income, the value of homes as such percated of late, it is a far cry from 2006, 2007. what do you think? >> 1 year lows in homeownershi homeownership, 18 year lows. think about this, home prices have come off of 40%. those foreclosures were gobbled up by hedge funds and now they have gobbled up inventory are

now renting back to op who cannot afford to buy homes. thbottom line is this, if you're going to be a buyer, do it with the middle of the road home buyers. look at lumber. neilyou dot think it is back with a vengeance, right? >> no, i don't a lot of the excitement will die down. >> i would love to see houng come back. neil: the viral video making conservatives solutely livid. she will be my coanchor next week. until then, thousands of people

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>> every in cleveland got obama's vote, keep obama president. he gave me a phone. you sign u you have low income, disability. neil: be careful what you wish for because 44,000 of those folks who did indeed get fre phones got a very unpleasant surprise. personal information posted on the internet. investigating this major privacy mess. here we go again, but it proved that would be very loyal, lovg

of the president. what happened? >> here we have a private sector company responsible for the data theyollect, they make in india alone $370,000 per month off the contracts they promote. are holding tm responsible for securing the data ey've collected. we don't look to others, we look for e people who've collected the data and they are responsible for maintaining security. neil: i guess the timing of this is such you wonder the irs gettinstuff on conservative groups going beyond just conservative groups, the justice department cracking down, i was alarmed at the foxnews family. and on and on and on.

hitting up pvate compaes. it is icky. >> companies who collect data have to be responsible for it. neil: is very intimidating. the irs knocks on your door and say want some info. nine times out of 10 those companiee give the info because it is frightening when the government comes asking for stuff, you give it. >> we have a companyointing to the media saying they have been hacking their systems. i will not listen the argument we didn't do enough to prect, somebody hacked our servers.

neil: a poor woman who got a free phone for whatever rason trying to get info on her, that is a little weird. >> left temple as a studio th were showing me they literally found all his information in a google search. it has to begin with the people who make money off of these databases. the government comes in to verify. when there is a breach, now 26 attorney general's looking after this. most number of people are nsumers who ve the information accessed. we have a responsibility.

neil: it probably is too good to be true. thank you ryuch. >> so good to be with you. neil: now washington is snooping on everything.the ocean gets wa. the peruvianncvy harvest suffers. itaises the price ofishmeal, cattle feed and beef. bny mellon turns insights like these into perful investme strategies. for a university endowment. it funds a marine biologist... who udies the peruvian anchovy. invested in the world. bny mellon. ...ameli.. neil and buz for teaching us that you can't create the future... by clinging to the past. and with that: yore history. instead of looking behind... delta is looking beyond.

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neil: it isnoopapalooza. this out-of-control, going on and on and on. >> i live in the south, we pride ourselves as being great snoopers. the is a reason james madison put the first amendment of the bill of rights because he realized if the freedom of the press is er taken away all other freedoms would soon be taken away also.

we're seeing this more and more. this is being used as kind of intimidation to noever think about going up against the administraon. neil: you would think people would see this and say no more. i think they're even more intidated by organizations like the irs. look at what they did. >> who is going to tell us what they can't do. i don't even understand it so i have to send a check to someone. neil: it is supposed toean something. >> it is a punctuation. jonalisto to the first amendment card for understaable reans, but is the fourth amendment he voted with all this. expectation of privacy, the

rights to berocted against search and seizure. in a bipartisan way, especially th the drug war but the last 12 to 13 yrs with the response to 9/11. now happy to preside over an apparatus snooping into millions. millions of private individual phone records and cell phone records without us even able to know if the justice department or anybody else is doing it. both parties have leslated into being. nothing is safe. neil: do you think technology did th? >> it is funny imagined technology. when it goes right, you take it for granted. when it goes wrong, it pays

attention toitself. neil: we are not using it any less. >> snooppng does some good presumably hoping to catch the boston palmer suspects. neil: that is the battle. we have this tuof-war, balancing act of keeping us safe and realizing in order to keep us safe we compromise along the way. >> i'm going to have to disagree. there's a huge differenc between the governmt listening in and somebody talking about their grandmothers cookie recipe. and those who are known to speak out against thebama administration. you don't see this on other networks, you see this coming out against fox. have you checked your phones being bugged?

right now nobody is truly safe. neil: where is it all going? >> they will be a backlash because it's against the press. they are going to disband the flames of this for a while. neil: is make making a decisione this. we get targeted. >> they don'want to encourage the double standard. thats a bad thing. the press should always be against it. neil: it seems like ministrations taking a note of it.

>> nixon, if we had the same press "money" with melissa francis is next. have a good night. melissa: i'm melissa francis and here what's money tonight. silence is golden, well, unless you're lois lerner, the woman at the heart of the irs scandal refuses to speak up in congress. why should i pay my taxes, that's what i'm wondering? tesla is like the coolest kid in school right now but we're grabbing a bucket of cold water to throw on that love-fest. wh made money do? e company who is helping brinthe beginning of the end of cancer. keep watching to find out who that is. even when they say it's not, it is always about money. >> we have you authenticate the simply the questions and