tv The Willis Report FOX Business June 3, 2013 9:00pm-10:01pm EDT
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stop making it a mom-and-pop on the of wild toe ride. [laughter] >> thank you all very much. b you have been very dynamic and colorful. we will see you tomorrow. gei: hello, everybody. i'm gerri willis. tonight on "the willis report" th irs scandals deepened as video surfas of millionspent on lavish conferences. also, out of controledical costs. an youredical privacy at risk. important fact for all consumer watch out for you tonight.
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gerri: the irs ever-growinlist of scandals is our top story. lawmakers warning the new chief today. the latest evolving scandal. millions of dollars on lavish conferences, including the stands party. gerri: seen. gerri: a taxpayer dollars of work. it's up to the irs to do more than fancy ftwork to gets back togher. ridgemont test of republican congressman of oklahoma. welce ck to the show. >> thank you. gerri: 50 million for 220 conferences, one of the speakers paid $17,000 to discuss leaders through art. are you kidding me?
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>> this is the same patrn that we have seen and gsa and other agencies. i have no problemith doing devepment, but there are cheaper ways to do it that are more efficient. resolve this wh gsa will we did the hearings on that wn i went to las vas in 2010 and $840,000 confence. th have one that conference iny house and oklahoma four years before for $323,000. same conference, number of people, but the contin to profit out. gerri: here is a real-life exple of the kind of money thereere speing. $4 million for in anaheim, california conference. you heard theoman in t video mention anaheim. it did not even bother to negotiate rates. some people say that defense some people stay in sui's the cost literally thousandsf dollars. the irs cannot monitor theirwn spending, how are they supposed to keep track of a balce sheet of america, do my taxes, look over my shoulder and make sure
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that i am doing everything i shou? >> here is the bigger problem. it's a big deal. then expectationhat it will be taking care of. when they see this, the very first place that land that the ira c that it is wasted, they are thinking, i could have used a dollar at my house lot more efficiently and at. let me keep that and spend it debrief let me keep it. gerri: tomorw we expect the treasury department inspector general to fe -- file a report. will t be any surprises? is there even more horrible situations with the irs wasting our money? >> we have some preliminary documents. more on that. also some issues. irs handle their own reporting. what we would be held to account for that they warrant. it wants that. a hearing on thuray in the
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committee that i sit on. so there will be a lot that will come out. ouroal is to fix this. we cannot do this. we cannot continue to have this happen across the government. this is an age of sequest. gerri: you he your hearing tomorrow. there was a hearing today. and he was very apologetic. i want you to respond quickly. i am goi to read in exchange regarding the awareness. this is a interview. in early 2010 there was a time when you became aware apications that referenced other conrvative groups. the answer in mar o 2010, was made aware. question. okay, now was there a point around thisime femina pervisor has to do a similar search for similar applications? the answer yes. the question, did your supervisor give you any indication of the needor rear, any more context? to answer, you tell me
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washington d.c. wanted some cases. says gasol lee back to the whit3 house, the administration or d -- is this just wrote agents? >> this is not road agents. there are jt doing it. is is a systematic plan that they're running with. multiple officers. even though listen the last hearing, they cannot just create this new structure and not have it signed up by attorneys got technicaleople. i have to go up the food cin to be signed off and go back down. this is not a couple of isolate folks. probably not. it will let the facts take it where it needs t go. they will have as many people. gerri: a want to askou about oklahoma. people they're under a lot of prestely. tte storms continued. what can you tell us? >> is very difficult.
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the last two weeks we've had some major tornadoes. one at looks like it would be a major tornado come through on friday. some people panicked. it tried to get safer places. they got on the road and were killed some families try to get down into concrete ditch is near their house where they thought it would be safe and floodwars swept them away. families dying in a flood rathe than their home right next to read that was still safe. it is a panic. people trying to respond. a situation. they become veryeartbreaking we do areciate the praise and support. this is sso teheran. we know it is going to pass. it's very difficult for us right now gerri: congressman, we w wishou and everyone in your district all the time and the workk to follow up i the world. i hope the storms stop. thank you so much. appreciate y coming. coming up in about 2 minutes, more on the tragedidies in
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oklahoma, including how you can protect your home from the sto them matter where youou live or what kind of storm it is. advice from radio host. when it comes t the irs, we want to know what you think. here is our question. to the scandals privilege should ve a simpler tax cut, mbe get rid of the irs altogether? log on to gerriwillis.com and vote on the right hand side of the screen and i was sure the results. well out of ctrol irs out of control medical costs to. health care heren the u.s. carrying a heftierrice. anywhere else in the world, even for common and routine procedures or especially for common and routine procedures. joinin me now, director of the new york rdiac cente thank you r coming back. so good to see y. i was blown away by how fferent the costs are year compared to other developed countries. let me ge folks one example. the colonoscopy, the average u.s.rice rightow, about
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$1,100. offering half that price, and you can walk through a myriad of different kinds of procedures, stainings, surgery. what you find over and over again is the u.s. is more expensive. what do you say? >> more expensive the typ of system we have. the fee-for-service sense of. singapore and israel, a single payer system for some of the medicare and medicaid type patients thateople can buy supplement to get priva insurance. the cos of the fee-for-service system, there is an incentive to do more types o tting, to do more. gerri: definitely. more extensive testing. i understand that there is a cheaper test and the colonospy that could be used. people just d't use it anymore. it is in part because they g into this habit of asking for the expensive tests of there. i read something interesting when i was researching the segment. often doctors don't even know the pricof what they are prescribing in terms of procedures.
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it is not really your job, is it? >> in your own practice you should know what your test costs. when you send patients for a stfruently don't kw the cost. gerri: because you're sending them out of your office. >> and one of the big problems is to send them to a hospital based setting and frequently the cost is two three times gher. one o the big unkwns the people are not aware of is the cost of going to hospital to get test. sometimes the same exact test can be two or three times the co of private pctice setting. gerri: let me giv folks another ample because i am serious about this. take a look at a hip replacement . over $40,000 is the arage price. in spain in 7700. that kind of gap is really telling. with obamacare we were promised that costs would come down. nothing seems to be getting -- >> endo think obamamacareill get cost. that is a big issue. unease to be a major restructuring of other health re system works. no one is willing to takthat
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on. hospitals, pharmaceutical companies, those types of ganizations that spe much more money lobbying and other major industrial groups. really have to look at that and let it with the ceos of some of these hospitals get, tremendous salari. these nonprofit hospitals are really not non-profit a more. they're big profit mhines advertising on television, adverting in the newspapers. there is a big profit motive. they're buyg of doctors' practices in trying to consolidate. gerri: if we can say we are getting betterrcare forhe number of dollars we spend it might make sense, but the reality is when you look at outcomes often the outcomes are not better. i think we hav to fd a better way to doll of this. thank you for coming down. always good to see you. thank you so muc. more toome this hou including a look at high-yield checking accounts. next, our special series to your medical privacy continues toe take a look of what we have learned and that you can't protect your privacy going
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♪ gerri: it is an issue we have been focusing on. "the willis report," your private medical data exposed. everything about you from your medical history, treatment, even your shopping habits outhere for the highest bidder. the founder of pient privacy rights told us recently just how much money you're private data is going for. >> the most valuable information about you in the digital age is anything about your mind or your body. for example,e know that social security numbersane bought
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for somewhere between $0.50 and $5 aece. anything about your health information goes for sale on a sce of about $14 to55. some people want to use the information to sell as products. that is one thing. the far more dangerous problem is the use of dinformation by employers, banks, insurers, and others you can make decisions abou us that will be harmful to our jobs or are futures. gerri: one example of this occurred when the retail chain target, such an extensive that it attracted peoples and permissionhat the company ally figured out a teenage girl was pregnan before her own father did. >> if you use a target coupon or a credit card, if you do anything, open a target e-mail and bring tt into the store, th will try and track to you are and what you bought in the past. one of the reason is that want to know things like who is pregnant. in one case of father came into
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a store and talk to a store manager and sd, i don't understand what is going on. yore sending my daughter all of these couponsor cribs in diapers. baby stuff. she's only 18 years old. you trying to encourage her to get pregnant? the manager was so apologtic. i'm sorry. i don't know what's hapning. a blaze that recall the father again and said, i just want to apologize. the dad said to well, it turns out there have been some activities where not aware of and she is due in august. gerri: not just retailers', insurers are jumping on the action. >> it is a little crazy. tracking as a variety of ways. a lotf misinrmation we are giving them voluntarily by siing a pro things like corporate wellness programs with a track things like the many steps taken to date and how often you're gng to the gym. they actually put these monitors on tir risks.
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gerri: dangerous, ev deadly consequences arising and the use access your medical eo. obamacare push to digitize the medical records i on the escalating this growing problem of medical identity theft. gerri: a director of theorld ivacy form tells us just how dangerous it is to story medical information online. and very co-founder offered is tips to keeping your private information private..3 >> when you have a digital medical file it is something that can be stolen on steroids. instead of walking out othe hospital with a few files, you can walk out with the u.s. be with thousands or tens of thousands of fes. the main purpose is to find names of people and their preferably medicare number or prescriptions. that kind of permission. what the thieves want to do i impress that the people and create
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and had all of those procedures done. you should always be looking at your credit report. i tell people at least annually with your credit report. look to make sure that all of the accountshat are open, bank accounts, credit cardsrell things the you know thahat you opened gerri: well, we are continuing to look out for yr private data next week when an expert shows me just how easy it is to buy medical data on llne. an later in the show we answer the question how you do that to my tips on keeping your hme safe as t big storm approachess
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federal deposit insurance. a senior financial analyst at bank rate t com joins me now. talking about high-yield accounts, but the reality is even high-yield accounts is not that impresssve. take a look at these numbers. average returns according to ur website, highields checking, that's better than a one-year cd, bette than a money-market account. take a look at those numbers the week. what do you make of this? will it get better worse? >> i think for starters, we are in an environment where lot of investors are looking for additional yield but the scent, not neessarily looking to take on risk. think this is the perfect solution. you get the additional yield yet you still have fedal deposit insurance protection and complete access toto the money. its liquid, not tied up as it would be. not immune from he s slower rate environments. but there will also be the first to see yields go up with answers traits inevitably rebounding
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gerri: but there are big caveat status which i find interesting. requiremts of mostly institutions to offer the highest of the high-yield accounts. you say let's try statements. you can have electnic statements. a debit cardransactions. what about that? >> typically the requirements are you have to, as you said, get your statements on-line. yonnot get them via paper. make about ten debit card transactions per month. then have either a direct deposit or pay your bill on line. the idea here is that it t meet those requirements every month you will learnhat higher yield. and in any month for you fall short of that you're going to turn a much lowerate ofeturn for that given month. you can get yourself back to a higher yield the following month if you do meet the requirements. gerri: it' funny because i w making fun of the rate because it just isn't much money at the end of the d. but they are not letting people put a ton of dough into these
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accounts. there are caps on these high-yield checking accounts. $17,102 is the current ccp. last year was 19,000. what is the fear? >> the idea is because they're paying ts above market rates return they don't want to do so on and othe minutes of money. it put this cap on the maximum balance you can have that burns that higher yield. and so we see 15 to 20 your sometimes even $25,000 as being the maximum that you can keep in the count and earn a higher yield. gerri: of course we should mention you fail to meet the requirements that we outlined before, you're going to get a cat your return, maybe as much as seven tenths of a perceage let's talk a little bit about where you go from here. let's say you decide to my one of these high-yield accounts but i don't have it. how'd you shop for one w is stikely offer a? >> these are accounts that a pically offered b smaller community banks and credit unions. we recently surveyed 55 of these
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accounts from all over the country their posted on our website. about hall of the accounts are availaeationwide. is notomething that is necessarily limitedy geography. everybody was watching as a visit will tak advantage of it. gerr of course you can always go to bank rate dot com to get information on high-yield accounts. thank you for enness out. thank you. gerri: time for a look at stories are betting on it. this despite bbd news about the manufacturing and construction sectors. it was all goonews from the auto industry. gm says may sales were t stngest sin 2008. if sales rose 14%. chrysler's re 11%. pickup trucks with the way for all thre automakers. this thing it -- distancing itself from apple a the teams up with the parent of a fire fox president make it cheaper smart phone days after apple sd it was ming some of its busins
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from the manufacturer. now the bad blood -- and one of the most elegant hotels. room service. elton will discontinue the seice in new york cy and a white is part of a cost-cutting measure. experts say this is just the tip of the expert. opening a 24-hour market inead of room service as well. those are some of the house stores right now on foxbiness.m. is the federal reserve doing more harm than good? two is after the tornado, more deadly storms is week. how you prepa your home for the next storm. tips coming up. ♪
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♪ gerri: apps you researc poll on breadwinner mom's sparking lot of heated debate last month in keeping -- incding on this show. women are nowhe sole or primary breadwinners and a record 40 percent of househos with children. lou dobbs says the headline is misleading and last friday he explained why it is important to delve deeper into the study. >> first of all working single mo that is not the reality the reality is that they are paid o average $29,000. i would le you, if you would, to come
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door. beautiful, sturdy, andan take a bank. it can take that kind of abuse and not fall apart. gerri: saido rise gore is ofn a big problem areaor people, particularly in big when storms >> especially true if it is on of the thinner ones. the trick of the trade is to answer toy force behind the door acrosthe back of a to stiffen it up just for the hurricane and then taken down when you're done. gerri: impact resisnt windows. >> they will break but not kind of like automobile glass. another trick of the trade is to look tthe miami-dade building code. if the material waspproved by miami data it will be very resistant to. gerri: because they have to be that way. absolutely true. i think a lot of people are concerned and worried about their insurance coverage and don't know the difference betwee flood insurance and a regular homeowner's policy. >> the difference has a lot to do with floods. homeowners insurance covers floods tt are sudden and incidental. a broken pipe. it will not cover a flood fro a rising tide or a storm like
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sandy. that you have to have flooood insurance for. you often cannot get enough to cover your entire household and it content. a lot of people are buying extended policies to private insurers. >> that's right. really important to know what the cost to rebuild your house will be. it -- you get an idea before you sign up for insurance gerri: you say there are trick that the insurance cpanies used a low volume. >> the are tricks, for example, hurricane sandy what we saw wasncorrect classification insuranceompanies will terminate hurricane. technically when it story was a superstar. hurricane deductibles are bigger. the her thing is they will try to reclassify you. one homwner who was reclasfied. check in the mail r a couple hundred dollars aet premium adjustment. basement coverage is not as thorough as first and second
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floor coverage. there were ting toeclassify him into a situation. he absolutely can fight back. you want too is stratically. get them to intify the reason you have been denied in writing. then work up the chain of the insurance company and then a good thing to do is file a complaintith the state insurance commission because they have to respond to tt. an investigatowie assigned to your case. gerri: insance commissioners a different all over the country. sof them are very active and some of them are not of all. dependsn where you lve. great advice and that you for coming in when we come back manufacturing d constructio spending are down. why the market's near record highs? peter barnes ishe answer. plus, advice on how to play this from cooing up. ♪
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uh, what's this buttono? [ eltricy zaps ] ♪ you requested backup? yes. yes i did. what's in your wallet? gerri: a topederal reserve official today saying that the fed may art cutting back on its bond buying in the next few months, an issue that has rattled the mart er the last week or so. the fed currently buying $85 billion for the @%rtgage-backed securities per month. the balance sheet is up to an unprecedented $3 trillion to be the net latest comments came from dennis lockhar president of the federal reserve bank of atlanta. he made into our various senior shingt correspondent peter rnes on set with us. give us the bad news. when of ending the party? >> remember, a famous fed chairman when said the job of e fed is to take away the punch bowl just as the pty is
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gettin started. yes. i mean, we are getting 200,000, 170,000 js per mon. the fed and dennis lockhart is now the latestember to weigh on this, fed members are starting to lay the groundwork for pulling back on all of the stimulus. the $85 biion per month in bonds at the bank, all designe to pump cash io the system, keep interest rates downo we can go outnd buy new cars and houses and dixie business loans but there's a lot of concern that this could lay the groundwork foruture bubbles, housing bubbles, stock market bubbles, inflation. and so the fed is now very sensitive to this and we are hearing several of them, including law card for t first ti today sing, yes, we are getting ready to take away so of the stuff that we used despite the plunge. the start to cut back some of this bond buying. gerri: l me also say to you,
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like if we don't have a good job growth or your blows up or anyone of aumr of things we could be back on the bond buying road again. fox business stuff leave his options open. he did say he followed the fed's statement fromts last meeting which was thatt could not only start to look at decasing these bond purchases. it could stand by ready to incrse them. for d that meant if we started to see deflationary which i bad we won't get into the weeds on that. if there was some shock to the economhat might cause a recession like something out of europe. gerri: i have to tell you, for our viewers with the fed has done is make them frankly less interested in investing i a ock market. very negative out aut what the fehas de. they're also trying to fix jobs. what does locked r say about e upming jobs report? >> he said that if he saw -- the talk about the nbers, 160, 170,000 month.
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if it went below that in t upcoming jobs report, and that is where economists a looking for abouthat number. that would not be good. it wld be probably less inclined to pull back stimulus. if the numbers cam in better that would be encouraging. we do have a sound bite. take a listen. >> i think we are approachi a time in which it could be nsidered. th is not to say at the june meeting that we are approaching a time in which it can be seriously considered bassd upon the momentum of the economy, whic is not great,ut nonetheless is moving forward. and based upon a confidence in the economy. >> that is in speaking to this issue of whether or not there will start to cut back thr bond buyin. me who want to start doing that as soon as the meeting in two weeks. gerri: does not going to happen. they need to see more
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numbers. they don't want to make the mistake they made previously which was to stop suddenly with all the stimuluand see the green shoots just die. gerri: quickly ecause inow you talk to these people all the time. what to the experts say about when quantitative easing could stop? end of the year? >> closer to the end of the year rather than sooner. he said it today, meeting t meeting, datapoint t datapoint, they want to see the data. if it looks like theecover is growing and the economy is growing and juppe creation remains sid then you will start seeing them pullback on the bond buying another stimulus. rri: great information. great interview. thk you for coming on. thk you for coming on. >> tha i want make things more secure. [ whirring ] [ g barks ] i want to treat mo dogs. ♪ our business needsore cases. [ le announc ] where do you want to ta your business? i need help selling art. [ male announcer ] from broadband to web hting
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♪ gerri: a new report tay says markets around the world are under the spell of central banks, those including our own federal reserve that but some much stimulus out that investors are ignoring virtually everything else. they turned out the bad news. what is next for the market and your money? with us now, author of you can never be too rich. managing partnert paris financial group. and president ceo of a planned financial services. welcome. will start with you. is the fed making investors ignore bad news or are we just deaf, dumb, and blind? >> very much so. if you really think about it, there is a lot of bad news out there. the economy is reallyrowing as
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much as people predicted. unemployments still up. not a lot of great news. you can find scrapes of the year in there, with i interest rateso low everybody is trying to find aces to putheir money to get aittl bit of retuun on it. so wit interest tes so low is making people kind of ignore all that. it's making of fled into the market. it is changed. gerri: is it tim for the federal reserve to take away the punch bowl? we have seen this before. we saw this with tech stocks. ch ipos, the rally, the incredible boston bomb that went on there. are we -- have we gone too far with quantitative easing? >> it's imptant to recognize whathey're talking about. the talk about this bill. there were more talking aut bonn's the naething else. not necessarily stocks. the federal reserve in the united states can only buy fixed in some of -- fixed income
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security. bond prices can never go down. they can only go up and they're always supported by the fed. i just don't think that is something at people should rely on. the starting to hear. is not going to happen tomorro. gerri: it's going to happen. >> it's going to happe sooner later. gerri: and what happens when we start tapering? >> the world can ctinue. i guess that is the good news. people havto realize that there is an interest-rate rk that they have to be aware of in building their bond portfolios, but one of the things that have kept banks from lending as much as the fact that there not making any money with interest rates as low as they are. e of thehings that happe, banks start to add up there lending which will offset some of the tapering. gerri: alan, to you, i really interesting interview by our very own per barnes with the atlanta fed. he is worried about the sorsaultn the jobs market
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which is imptant becse the federal reserve banks as their job to fix the empire a problem. what do you make of this? is ts the right job for the fat and are you thinking that might be a summer sll that cod hurt stocks? >> very well might be. because the historiplea it s traditionay hpened quite a bit. what is an iestor going to do? it out of the market n because unemployment goes up a little bit? try the time the market to get ba in. that will really mess people up a feature writer time the market like that. my bestdvice is to just find good quality of there. ride it outnd don't try to play the market from a day-to-day basis. if you're doing that right now we will be reay tough going. gerri: here is the expectation. new jobs cation, 170,000. what do you make of thi i mean, you really need something more, the weak? >> think about what we learned
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over the last five years. all this extraordinary monetary policy. the fed can buy bonds to manipulate interest rates, but they cant buyobs. that is impor. you have seen pretty constant job growth all the way tough this cycle which means the have no control over it whatsoever. the policy tools they hav won't work. it's impmportant to recognize fr the fos at home that metary policy and jobs don't makes really well, even though it's part of the realandate of the fed. they have to try, but they're not going to be successful. gerri: a disappointment of many pointed dollar even if they come in as expectations which is kind of park, was the impact on the stock market? >> it's going to b fairly minimal unls there is an overshot in the projection or another shot in the projection. we will continue with the sluggish job growth. you look at the area of the job growth that is a pblem, skilled labor and training the labor force. intel that gap gets plugged you will still have higher unemployment which is why you will see qe2 continue and leave
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a left open end until the fed hits its job number. rri: on an it goe there is no end to that money, no bottom to the supply. thank you for coming on tonight. great job. thanks. gerri: wl, on to this day in business. in 1969, the last episode of the polar american sci-fi tv sw star trek aired on nbc. led by captain james kirk and mr. spock, three seasons i79 episodes. some much more. the show was never a huge hit during its regular run, but it had a fan base that grew as the show began airing in reruns and eventually took off a a franchise consisting of five additiononal tv series, books, games, toy, and 12 tons. the most recent, has brought in more tn $328 million worldwide. today, june 3rd, the last
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episode the original star trek thir -- airs 44 yearsrs ago. sohere does it rk in the best tv shows of all time? according to the writers guild of america is the 303rd best. who topped the list? that is tonight's top five. mash. off the air in 1982. that series finale is sti the most watched scripted show in history. the ground-breaking show running from 1971 to 1979. the actress's play tt legendary character died just this past weekend at the age of 94. the 1959 version of the twilight zone comes in a number three. completely unrelated episodes. the show about nothing went off the air 15 yrs agond i still one of the most watched showin syndication. the number on best ready sho
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the sopranos. hbo had showing one of the most controversial in these of all time. the screen just went to black. otr shows on a list, the mary tyler moore show, mad man tossing and tuing have ven way to sleeping. ere sleepless nights yield to restful sle, and lunesta espiclone can help you get there like it has for so many people bere. do not take lunesta if you are alleic to anything in it. when taking lunesta, don't drive or operate machinery until you feel fully awake. lking, eating, driving or engaging in other activities while asleep without remembering it the next day ve been reported. lunesta should not be taken togeer with alhol. abnormal behaviors may include aggressiveness, agitation, hallucinionsr confusion. in depressed paties, worsening of depression, including risk of suicide,ay occur. alcohol may increase these risks. allergic reactions such as tongue or roat swelling occur rarely and may be fatal. side effects may include unpleasant tte, headache,
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gerri: governmenwatch dog group find irs spe $150 million to hold conferences between 2010-2012, is ts further proof we need a simp liar tax code -- simpler tax code. jim says this on my facebook page. go thought. micah, agrees we should abolish the irs, and move to a consption tax. tax money when spent not earned. and ask the question on gerriwillis.com, 98% said yes, 2%aid no. tonight as consumers we have to make srt choices anywhere we
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shop, my friends in this day and e tt includes healthcare. we've been reports on huge difference in price for same medical propedure, tonight -- procedur tonight we talk about how the costs are higr in u.s. comparedo the rest of the world, why does a colonoscopy cost 10 times more in the u.s. than say, switzerland. there are things you can make sure you are notei ripped off, question your doctor, but sometimes doctors do not know the price of the procedure or te. ere are resources on-li, health care blue book.com is s free guide to help you. and i'll talk more about that in coming days and weeks, consumer, ve to empow ourselves, this is important when your health is at stake. that is m two cents more, thank
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you for joining us, have a good night we'll see you back here tomorrow nht. lou: good evening thank you for being with a number of development in two of obama scandals at this hour, house judiciaryommity is determines whether attorney general eric holder purged himself in front of congress, and irs targets scandal has moved to the nation's capital. we know that internal revenue serviceas identified workers in their cinciati office who may have information related to the scandal, some of those 88 pele have already talked with congressional investigators. and ty are pointing tohe irs headquarters in washington. cincinnati, irs. yes telling house oversight
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