on friday, mitt romney joins us i am gerri willis. now doing it like the airlines, stingier service. also, are we really running out of water in this country, and is an opportunity to make money? the latest in healthy eating. the result of a new study could help you live longer. we're watching out for you tonight on "the willis report." gerri: more on those stories in just a moment including the steep selloff in stocks.

thdow falling 215 points today, but we begin with troubling new questions over the government's role in the housing market and how exposed its leaves us taxpayers. the fha ich now arantees a third of all mortgages have admitted the losses could hit, get this, $115 billion. now that number far worse than what we were led to believe. with me now, former fannie mae executive. you and i have talked about this a lot over the years, what gives? this was supposed to be the the transparency administration. now we find thisumber, they sure did not share it with us. why? >> they did not share it because it w embarrassing, not consistent with what they were trying to tell congre. they had some bad news as you recall when they said their economic value was negative to the tune of 15 billion.

at the same time running a stress test, the same stress test the federal reserve uses for large banks and when they ran the stress test they found they could have a loss as large as $115 billion i think they decided if we give congress two doses of bad news, that could really cree problems for us. gerri: the reality is we get bad news all the time, but we need to have the information shared with us, i know you agree with me on that. to hide it in that way is to take away our decision-making ability. if you don't know the facts, you cannot decide what to do. it is a poll in would keep this from us. what do you think? >> i agree. this was done on purpose, with foresight, and to keep information away from congress so congress couldn't do its job.

i think this happens all the time in government, fha has a history of this and it is appalling, but it is not surprising. gerri: there are e-mails that surfaced that proved people in government were trying to hide the information. fha is not underwriting them themselves. will we have to end up bailing out the fha? could that happen? is that in our future? >> i think there is a stinct possibility. fha and what the stress test shows is that if there is economic downturn, tking about next month or even next year, any time in the next couple of years fha will be in a worlof hurt. that is the problem congress has to understand better and by withholding the informion from congress that is where it is a disservice to everyone cluding your listeners. gerri: i couldn't agree more.

i want to show some interesting numbers my producer came up with. what we'r we are doing here is e comparing overtime year-to-year. who has the most bad loans on the books, wre our loans re denquent? it is not even fannie mae and dirty mac, it is the fha. why is that? >> fha continues to ke loans that are very, very risky. they will make lns to someone with a very low fico, minimal down payment, and that alone continues to have a likelihood of defaulting 15 or 20%. they make a lot of loans like that, and that is a problem. i have been talking about this for quite some time, fha is not only doing the taxpayers and themselves a disserve, we are hurting the very people they are supposed to be helping they put

them in homes that it is like being on a tightrope without a safety net and then when the slightest thing ppens the water heater breaks or the roof leaks, they going to default and that is what fha has a history of doing. the last 37 years one out of eight fha families have gotten the loan secured has failed. gerri: you put it so well. i'm all in favor of homeownership, i believe in it, i think it is good for communities and for families, but not this type of price. great to see you. on two hotels. yes, we're talking about hotels ordering breakfa in bed it could be a thing of the past as we told you st night. hiking rates while cutting services. joining me now with details, senior project editor for consumer reports. both come back, always good to see you. so here is what i see, and maybe

u dsagree. i see room rates rising, amenities going down, and i am caught in the middle of that. agreed? >> to some extent. there is no single hotel for everybody. they run from low-cost budget econolodge to the ritz-clton and the four ason there is no one type, people are getting the rates going up, the hotels are starting to get improvovements been neglected fr so long when the economy was in the tk. getting more things like free breakft, not just free continental breakfast but hot cooked to order breakfast. wi-fi througho. these are things people are seeing more of. gerri: here is what we do see, a graphic on this tohow you, new york, atlanta, orlando, miami, new orleans, dallas, san francisco, los angeles, rates rise.

in some citi 10% per year. some 6%. at the end of the day they be people are getting more amenities but are also paying more for them. do you think these hotels are out of control? >> gerri, whe what it comes dowo is supply and dend. not just in each market, but the thing that is the killer with hotel rates, it is not the roo rate, it is the tax. 19% in some cities. this is par for the course beuse there is an old saying travelers don't vote so they cannot vote the bums out when they raise taxes and visitors by 20%. take that into account. gerr happens all the time. i have seen it myself. my personal favorite is not even on her

free wi-fi, of course, free breakfast, free parking. any others that should go on that list, you think? >> it is not just free wi-fi, it is free wi-fi in public spaces. oddly enough the more expensive hotel you stay yet, the more likely you wl pay for things like phone and internet. internet can be $20 per day at a xury hotel where it is free if you are spending $50 per night at a micro hotel. these are the things that drives people up a wall. gerri: i agree. the least popular business perks. business center. who uses a business center? is anybody faxing a document across town? >> wha happened is business centers were very popular business was in the big travel mode. the thing that destroy the hotel industry wasn't that y or me or average people weren't traveling, businesses were cutting ba on these things that was killing them. now with everybody, who the heck

needs it is the center? gerri: i will ll you what gets on my nerves, some of them if you move the stuff around, they charge you even if you don't take anything. >> it is funny, they made it more tempting. they are baskets on top of the chester drawers and motion sensors over them so if you pick up the $5 bottle of water, they will charge it to your bill. be very careful. it is not just the $6 bag of tater chips, you have to pay a minibar restocking fee. as much as $6 per employee to go there and replace a bag of chips. gerri: why do people not like spas? a little manicure, many petty.

you're not going with me on this? >> we can all benefit from a good massage. if you are goin to midline hotel, may not be something you are interested in. you are gog to indulge yourself. gerri: it has its place every single day. thank you for coming on. great to see you. now we want to know what you think, are paying more for less at hotels? vote on the right-hand side of ththe screen. coming up 25 minutes another big headache for travelers, airline es, you will notelieve the fees we uncovered. more to come including how t broaden your portfolio. google new glasses spying on you? wife mayot be a good investment. stay with us.

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♪ gerri: forgets tablets, the new hot technology is wearable technology like living in the cloud. along with the new gadgets comes nthe worries of invasion of privacy. should you be concerned before you buy a pair of google glasses? the senior editor at all things digital. so we were talking on the break about how we are addicted to machines and their becoming ever more intrusive. we are wearing them as glasses, how popular are these prodts? >> a lot of the fitness things.

a lot of those devices are very interesting for fitness. it is a matter of measuring yo progress, keeping track of where you want to go along the way. google glasses is completely a different class, much more vertical, it is not widely available. gerri: are we going to look back at google class, the applele newton part of the day, portable cd, never really took off, do you think? >> it depends on how expensive it turns out to be. whether the consumers can find a reason to use it in their daily lives. really popular in silicon valley, a few around here in new york, usually with the googlemployees. very interesting, i got a brief glance at it. i don't li the distraction. gerri: it is like invading my space a little bit.

yet i am all alone because there are 2% of the folks they wearable technology is where does that and what they want to do. will they embrace these products? >> smart phone starting with a smart phone they didn't have those 10 years ago now they are a part of our everyday life. could easily be something wearable, simply put on our clothing and on our wrist. tim cook kept referring back to how interested apple is. gerri: the same survey i was talking about before, you can improve your love life, boost the confidence, advance your career. , on. >> i would have to wonder where all the data comes from. can it boost your love life and youronfidence? maybe with health and exercise, weight loss. i would like to see more data on that before i go with it.

gerri: privacy concerns, how concerned should we be? >> we had a couple of things, the unexamined life is not worth living. you cannot change and impve what you do not measure. you have this impulse to examine your life as try to improve it. gerri: very impressive, thank you for coming on, good to see you. time now for the best stories you are clicking on. stocks selling off again today dropping 1% to the lowest level in a month. partf the reason for the slide. the treasury department says it will sell 30 million shares of general motors stock this month, u.s. gradually unloading the shares with the gm bailout in 2009. two irs workers placed on administrative leave for accepting $1100 worth of free

stuff at a 2010 cference. employees overlooking implementation of obamacare. in addition to report saying te agency spent $50 million on conferences in 2010 to 2012. pizza hut lowering the price of a one topping pizza to $5.55 in honor of the 55th anniversary. all 6300 locations will offer one time deal but only on carryout pizza, not delivery. those are some of the hot stories right now on fox business.com. and we're just getting started tonigh later in the show more ways to sneak fees onto her bill. how you can avoid some of these costs. and the questions how do you do that. tipsn how to make money on water. stay with us.

gerri: it is one of the most abundant resources on the planet and it would take it for granted. it is water. not as sexy as gold or silver, but very much as precious and a great return on your money if you know how to invest properly. let's ask one the best water experts in the country. you really do have a ton of expertise in this arena.

it is definitely the roger dangerfield of the investment arena. >> the reason is very simple, we cannot devalue anything when it doesn't cost any money. water is one of the most underpriced and underappreciated commodities in our life. you cannot manufacture and thing thout water, u can't grow anything without water and to be a little bit more dramatic, without water you die. it is odd to be paid as much attention to it except it has been a sensational place to be an investor. gerri: the planet's water, mostly planet's surface is covered with water. it seems we have a whole lot of it. how do you invest in this category? >> we have a whole lot of it, most of the time people choose to live where it isn't plentiful. southern california as an example. i focus on not owning the water

itself, but owning the ability to improve the quality of water to make it less expensive to mitigate the impact of the higher prices, and to be able to reuse it over and over again. that is purification, disinfecting it, infrastructure problems, abundance of plans ven that nobody knows it. gerri: you give up infrastructure, we have a ton of wasted water in this country. is there an opportunity there? >> absolutely. we have a well-documented need to replenish the water over the next 20 years. $1 triion. that really addresses replacing

aging infrastructure. that does not deal with anything about the future. the manufacturers of pipes, pumps, filtration design, et cetera are looking at a bonanza of distance over the next couple of decades. gerri: i was interested in how we use our water in th country and i was surprised to see the bigger user of water is toilets. you look down the list, it is all consumer in the household use. what do you make of that and is there a way to play this as well? speak respectfully 80% of the water supply in the united states are agriculture or to the generation of power. not to trivialize it, but the waste of water in the house is inconsequential. how you play it is how we did duuing the energy crisis, this is a real crisis and you play it by purchasing the ki of devices that allow you to use it and reuse it or use less of it.

and you focus on water more plentiful you find yourself looking at companies involved in desalination. there are a number of them that exist and are doing quite nicely. gerri: do u ever worry about running out of drinkable water? ishat a concern? >> no, it is absolutely not a concern. the concern is we wi have les clean water because it is abuse but we can clean up any water supply even the most contaminated and you can make water at homes, factories and all pristine with the kind of devices he put under the kitchen sink or in the refrigerator. that makes very pure water and so we will not run out of water whoever the days of cheap water are gone. gerri: great analysis, we hope to have you come back sometim

thank you. >> thank you. gerri: water is one of the offbeat investments out there. tomorrow fox business will take a look at all sorts of think outside the box ideas. here we takeou to a world-renowned art auction house on how to invest in all kinds of art and i am not just talking paintings. are you flying this summer? if so, get ready to pay up as airlines are doubling down on fees. and new studies are stripping away the benefits of running barefoot. what you need to know about running barefoot coming up. at od, whatever business you're in, that's the business we're in

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>> from the fox business studios in new york, here again is gerri

willis. gerri: congress so far holding five hearings to the internal revenue service is targeting of conservative groups with another on tap for tomorrow. among the questions that remain whether or not low-level irs employees in cincinnati got their marching ords from washington and are now being scapegoated by scandal. on "lou dobbs tonight" last night heosted discussion wit attorneys where they offered up this suggestion to the best way of getting to the truth. >> what i would do, looking from a positive standpoint, i would go to the field offic in cincinnati, and i would immunize them. gerri: obviously scared to death. >> talk to congress or the prosecution because it could be a federal offense. immunize them. gerri: interesting. what are you talking about tonight? lou: we will be talking with those issues as well.

the reason she suggested that is you can't take the fifth amendment if you are given immunity by the government in this investigation and prosecution. tonight we are talking about irs scandal, talking with the chief counsel of the american center for law and justice. that is the group that has now filed a lawsuit on behalf of 255 tea party and conservative organizations against the internal revenue service for any egregious use of power. the big news of the day, the president's defiant choice of ambassador susan rice to be his national security advisor. we will be joined by federal prosecutor who says ambassador rice i simply not bit for the job. at the top of the hour. gerri: i knew you would cover that rice story. at the center of the storm, stay tuned for 7:00. thanks. now we want to bring you the

latest developments for a story we have been covering. announcing his agency has decided not to prevent passengers to cover small knives on airplanes. first put in place after 9/11 and supposed to be lifted back in april but the tsa delayed the change after defending the idea saying agents time could be better spent looking for more lethal weapons. the plan to allow small knives on airplane officially no more. much to the relief of flight attendants, families and regular flyers. if you're flying somewhere this summer, be prepared for prices to take off. airlines tacking on more fees to flyers bills, plus the obama administration wants to tax flyers on top of all of that. tips to avoiding unnecessary fees. rick, welcome back to the show. evy time i have you on it is another day, another fee in this industry.

nobody else gets away with this many fees. >> you had a hotel sment on earlier, all kinds of fees. you have basically some checked bag fees, united filing and all-you-can-eat for a year, legroom and bag fees if you want to pay 1 feet, $500 for lroom. you hve frontier in july paying for water and whatnot. there is going to be a plethora% these fees come in. is a part of the day today. to the tune of $6 billion. gerri: at the end of the day, talking about frontiers drink fee, $1.99 for soft drinks, economy passengers. they say they will start charging for carry-on bags.

now i mean, come on. if i am putting it overhead myself and doing all the work, why do i have to pay more for that? >> because they can, actually. they do it in europe, it is basically a fee for just part of the process of flying. they studied every nuance of flying, and if it has any sort of benefit whatsoever, they ll tag a fee on it. gerri: the baggage subscription plan, you mentioned it before, all-you-can-eat, how does it work, what does that mean? >> for $349, a year year's wortf free checked bags. if you are checking bags a lot, flying a lot, it may be ableo help you out. for legroom, a certain part of the cab has an extra four to 7 inches of legroom so for $500

you can t automatically upgraded into those seats as many times as you want. these are part of the perks people w fly and achievelite status they get typically snub the public is given a chance to take their perks ay. gerri: it keeps going downhill. and this coming up, the federal government charging their own fees in obama's new budget. he outlines more fees. and the irony of that, this is not really a security fee. much of this will go to reduce the deficit. $8 passenger facility charge, telling you these taxes on these tickets are going through the roof. >> of you look at it $200 ticket, talking about an additional $50 in taxes. talking about tripling the tsa

fee, they will double the airport improvement fee if evything is passed through the budget. they have been trying to do this for four or five years. gerri: thank you for coming on. putting up with my ranting. thank you so much. >> just rant about hotels next time. gerri: things, appreciate it. coming back, will avoid eating red meat andating your gens extend your life? and running barefoot? new studies growing alarm on this trend among athletes. don't go away. ♪ alec, for this mission i upgraded your smart phone.

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gerri: welcome it is no secret you are what you eat, but a new study shows what you don't eat could extend your life by nine years. joing me now, registered dietitian. let's talk about the results of this finding which i am very disturbed by. vegetarians live longer th people o eat meat. some 12% risk of dying less than meat eaters. >> i think it is really tough to be a vegetarian but people who can do it well and do it the right way are eatg a healthier diet. they are getting more nuts, more whole grains, getting healthy fat, avocado, all that.

gerri: you don't have to eat red meat, you can eat fish, eggs, cheese, all of that seems pretty healthy to me. gerri: the study vegetarians have a 12% less risk of dying, the people who eat fish have 19% lower chance of dying. gerri: 20% really. that is pretty significant. fish eating vegetarians 19% less than meat eaters. i mean, to be fair, if you are vegetarian who are conscious of being healthy, you probably work out, wearing earth shoes, very in touch. aren't you likely to live longer? gerri: a lot of the vegetarians who come to my office are less healthy because these are the people who are eating bad food, they're having chips because they can't get the beans and the salads and the things that are very nutritious and have

protein. you have to eat right to do the vegetarian diet. gerri: is it is hard to give up meat altogether. you cannot buy things. lowers heart risk by 32% according to one study, you agree with that? >> of you are doing it the right way, yes. gerri: it ma be worth thinking about. >> and then she gets adequate amount, and they want to a presterian diet which has something like salmon and trout, and that also reduces your risk of heart disease. gerri: the word makes me laugh, but it makes sense. thank you. >> thank you. gerri: i'm gointo become presbyterian. waway back in 1963, fdr took

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gerri: hotels are following the lead of the airlines. cuttingprices. what you think do you think we might argue paying more or less for hotels? we asked the question on gerriwillis.com three and 11% said no. 89% have yet to on to gerriwillis.com were some of our daily questions. airline management has created an outsourced a system to save money. for no other justifiable reason, they can't be monitored on a regular basis. the trends clearlyndicate that it has nothing to do with the current fight over federal funding. the faa has been weak on this stuff for years.

threats from idaho says that the hospitals have been ripping people off for years. he will need to check the statements. i have been through it and i know it for a fact. it is always an accounting error, but always in their favor. and a viewer from pennsylvania agrees. he said the hospital is charging them for instruments of the document untrained and even use only. also they are charging me $99 for special tylenol. i've never even heard of this. we love hearing from you. send an e-mail to gerriwillis.com. finally tonight, if there is one thing we should demand from our government, it is transparency and truth. we are not getting it. the latest example we spoke about here earlier. it is about 10 imes bigge than previous estimates for. the new numbers only came to light after congressman darrell ices oversight committee demanded fha come clean. it is not surprising that it tried to hide the numbers.

the fha used to guarantee just a fraction of homeland. by they i mean we because it is our money. should the fha be backstabbing 3% loans to folks with spotty credit? i do not think so. the evidence supports that. guess where the most doing problems are? the fha had to pick up the mortgages that no one else would touch during the financial crisis. but they shouldn't be making the situation worse now. that is my "two cents more well, coming up in tomorrow's show, after dealing with a financial crisis, recession, and recovery, americans have devised all sorts of think outside the box ideas. all day long, fox business will take alook at the unique way that people make money through offbeat investments. everything from arts took off

running. that is importuna "willis report." think you for joining us and don't forget to vbr be be on the show if you can't catch us live. we will see you tomorrow. lou: good evening and thk you for being with us. as we go through the days events and developments, it may help us to remember that we are all in this together. there is a lot to cover tonight. with the white house and this president engulfed in scandals, trust is on the road in eroding. but this president's toxic leadership style are much in evidence tonight. consider this, his approval rating dropped another point overnight.