tv MONEY With Melissa Francis FOX Business June 17, 2013 5:00pm-6:01pm EDT
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the may housing starts. economists are expecting them to rise by 11%. april, notably disappointed plunging more than 16%. david: thank you for joining yes. melissa: i'm melissa francis command here is what is "money" tonight. moonlighting has never played so well. and it's a thousand dollars for private consulting. working from assam. former senator scott brown talks about the power of "money". next time you buy a fake bag you could end up in the big house. in new york city bill with no knockout punch at knockoff goods. but will they suffer? intimate "money" today? they're making a deal that has hollywood's mouthwatering. they tend to find out who it is. even when they say it's not, it's always about "money." ♪
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melissa: our top story tonight to my question that has been gaining traction since we first asked last thursday. is edwards notes and a double agent for china? today snowdon himself address the accusations writing this is a predictable smear that i anticipated before going public. i have had no contact with the chinese government, just like with the guardian and the washington post. i only work with journalists. not everyone believes that including former vice president dick cheney. here he is on fox news sunday, justice survey. >> at think he's a traitor. think he has committed a crime, in effect, by violating agreements given the position he had. i am deeply suspicious obviously because he went to china. that is not a place where you
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ordinarily want to go if you're interested in freedom, liberty, and so forth. so it raises questions whether not he had that kind of connection for did this. melissa: fox business peter barnes is in washington. this story just keeps turning. what's next? >> reporter: their will be a hearing tomorrow. the head of the national security agency, the one that created these two programs that edward snowden based on and lead to the press, he will be testifying publicly for the first time on these programs. i believe it was the house intelligence committee, so we will continue to year -- likely here alexander defend these programs along with a number of -- along with the white house and the number of key leaders on capitol hill. and that should be the major development to mob. melissa: we will keep our eyes peeled. thank you. while everyone is trying to figure out the real motive of edward snowden, things are heating up even more for those
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who has implicated. a conservative group freedom watch has filed two class-action lawsuits against the government and the companies involved in the nsa -- nsa scandal. they're hoping to score a whopping $23 billion victory. joining me now, freedom watch founder, the man behind the lawsuits. have you, but that number? >> well, the primary purpose, melissa, bringing these lawsuits was not for the money but to stop this illegal activity which is a violation of our constitutional rights. to do that you have to us stop the companies and the individual's response will with a large penalty. that is where you come up with the 23 million. between these two lawsuits you have one dealing with the verizon situation and the other dealing with the other cell phone providers and internet providers like facebook and skype. you have potentially over 300 million class participants as plaintiffs. if you break it now with all of the people, it may turn out not3
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basis, but we do want to punish the companies and government officials because this is an outrageous abuse of privacy. melissa: you say that the lawsuit, in the lawsuit claims that the program violates the reasonable expectations of privacy as well as the rights to free speech and their freedom from unreasonable search and seizure. do you feel like you're going to get a lot of traction with this? are you hopeful the you're going to win, or is this about making a statement? >> we're hopeful we're going to win and we're hopeful that the judge of we got will follow the law in not be influenced by washington politics because judges are appointed by politicians, the president, recommended by senators and others. but if the judge places straight in the fee is natural he has to rule on a favor. never before in the history of this country have we had every american under surveillance. that is outrageous. listening to the comments of former vice president dick
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cheney during that interview, even said we did have a right to even know. should be kept secret. is the establishment here in washington against the american people, not a conservative or leftist issue. melissa: the state into that because you mention the american people. there was a recent poll that found that 56 percent of americans think the program is acceptable way for the government to investigate terrorism. does that this we do? do you really think that a majority of americans do think that his is going too far? is in sight in the not. >> 44% that say no, and that's a very large figure. there has been a drumbeat here in washington in the last three days in particular, particularly the sunday shows are all of these government officials from obama to a former republican officials that but a similar program into effect. it did not take it to the extreme that obama has, there'll defending themselves because they're culpable, guilty. basically this kind of dialogue that is going on right here in
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washington with these establishments is influencing people out there in the country. it will change once they find out that every internet posting and text has been recorded by the government. melissa: then make a compelling case. on the one hand they say you should not be doing anything. if you're not doing anything wrong you should not care anyway because that is all we're interested in. then you have people like peter king him on this program last week and said it is absolutely essential of hundreds of thousands of new yorkers by borrowing the 2009 subway bombing plot. melissa: -- >> did anyone do anything wrong with the ira scandal when conservative groups retarded? melissa: i hear you, but that is a different issue. we're trying to focus on this one. i'm trying to get you ready for your day in court here.
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dianne feinstein will, with evidence, she says, to show that this world the turn -- the times square bombing. peoppe say come on one hand i know really what the government, you know, keeping track of my phone calls and everything i do. on the other hand, i don't to block of a subway. >> number one it has not been shown you could not do it another way. number two, you have to remember, and i have clients to have been critical of this of ministration, families of navy seals for instance really complained that vice president biden released the name of seal team six, put a target of their sons backs. there were shot down in afghanistan. their reason for this is coercion. if you go back to 1776, the king did not want us to do that either, and he was being
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repressive, but he did not have the technological tools that our government has that can beat the people into submission. melissa: do you feel like edward snowden is helping or hurting your case right now? he is off the vocal. he is out there doing that live chat answering a lot of questions. i feel like with every word he says he makes sense but that he also makes political points. it seemed like he wins people over and elaine is the not the >> he is going to help the case ultimately because they have confirmation that this was going on. this was the first time that we get it from in effect an official source. i think all americans knew there was something going on, but never like this. and sarah said it well on your other network, fox ews. it's really irrelevant. the issue is hat the government was doing. and these companies, they're collaborating. what are they getting in exchange?
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while i am not equating president obama or anyone in washington to what happened leading up to the years of the third reich in germany, it was the industrialists the supported hitler, the industrialists of allowed him to take power. while that is not the case, it shows you the dangers of having the government and industry work together against the american people. meliisa: and it is the classic slippery slope. thank you for coming on the program. stay out of the domestic affairs. and the policies. that have lost at least a billion dollars of the past two years, a billion dollars lost to my gone, burned up in the solar system. an effort to sell the division failed.
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shocking. 280 workers are expected to be laid off. oil futures briefly hit their highest levels since last september. concerns fueled the early gains that oil turned slightly negative selling at $97.707 per barrel. next on "money," moonlighting for hundreds of thousands of dollars as a consultant. while working full-time for the state department. you and me. that is exactly what they have been doing. we have former senator scott brown to weigh in on the power of "money". plus, is buying that fake bag were going to jail? a crackdown on counterfeit goods in the big apple can put regular shoppers behind bars. more "money" coming up. melissa: in
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characters from shrek, come to panda, and other popular franchises. investors clearly loving the news. want to make a play in the housing recovery? this is interesting. home builder confidence unexpectedly hit a seven year high sending shares up 10 percent almost. good for those investors. more powerful than any locomotive or box office record, superman, man of steel. taking in more money than estimated. the biggest in the opening in history. should government employees be able to work full-time on the taxpayer diamond have another highly paid on the side? hillary sentence top state department aide who is married
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to former congressman anthony wiener sign-on for outside consulting jobs. a back door ways for companies to buy government influence scott brown. welcome back to the show. when you drove down on details of this story, in my opinion it looks to sheer and fisher b this year she is with a full-time job working for the state department. she takes onnhis other job as a consultant, but it pays more than double what her main job as. she's making 150 working for the state in something like 350 doing this consulting job on the side. it seems like and how could this part-time job is a much more than her full-time job if there was a something to it? my making too much of it? >> well, i think, listen, she was one of hillary clinton's top advisers, top assistants. they're is a tremendous out of work being needed at the state
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department obviously with benghazi and everything that happened. you would think that that would be enough. but that is just like washington. they're is a lack of trust between not only washington and the workers in washington and the american people, in washington can you get a great gig like that. and there are about 100 other people doing the so called consulting jobs. they're is a process to get the approval, but like senator grassley said, he is wondering if there is more to it, just like you're asking. melissa: right. no wonder what should it possibly do that would be worth 350 or $355,000. in researching, this company she is going to work for is doing consulting, a consulting firm that was founded by bill clinton , and if you look get just what they say in their mission statement, it gives you some insight into what she could be doing that would be worth some much more money than a regular job. says our team working at the highest echelons of public and
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private sectoos forming a rich knowledge base and a global network of relationships that we bring to bear on behalf of our clients every day. so their workers had a global network of relationships that they bring to bear for their clients every day. to me that sounds like i'm buying influence. can my wrong to read it that way? >> at that level -- and when you're at that level am working for the secretary of states and your top adviser and top assistant, to think you're also going to be working for a consulting company that allows and provides access pursuant to the website, it just doesn't pass the smell test. there's something of the senator has noted. he's asking for answers to his very real questions. i know the senator is thorough, methodical, and the justice not go willy-nilly because if you want to make sure that there is no conflict or impropriety or appearance of under influence. if they're is a problem they should fix it.
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this is another example. i pass the insider-trading bill. it was mine. in the middle of the day in about 14 seconds in the senate 20 seconds in the house there reversed it and made it so it does not apply to employees or the executive branch. it is just another way to make, listen, you do everything that we pass laws for, but we don't have to. we are exempt. melissa: to want to make money on the side is what it feels like. you mentioned that she said she went through the proper channels and that their approval and secure that which to me means that if there is the proper channel to go through in order to get this done that there must be an awful lot of people out there are asking for permission to do this sort of thing on the side. she was given approval then there must be a lot more people out there who are also working at the state department or ever else on our time and learning much more for their influence on the side. my right to assume that maybe it is -- that she is the tip of the expert?
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>> i would assume i understood that there were at least another hundred that had been approved. the bottom line is the need to review this process and shut it down, especially when you're working for the secretary of state. first of all, with everything that happened, did you think @%ere were busy enough? what can you do to make another $350,000? the senator will be all over this and rightly so. there's a process we should shut down the process and make sure that if they're working for the american taxpayer and they're going to get a good value for that dollar. we're going to get a good value for the dollar's. melissa: and i was a little kid my dad used to say, people go to washington without any money and make a hundred thousand dollars a year and leave and suddenly they're rich. something you should keep your eye on. i think that's absolutely true. thank you for coming in the show. >> great to be on. thank you. melissa: coming up, buying at papers could lead you in the lockup. an unprecedented bill in new
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york city aims to crush the multibillion-dollar market for knockoff goods. plus words of wisdom from one of the foremost franchise owners in theecountry. how his plan to help hiring could have a huge impact from coast to coast. he is here to speak out on why he is not holding back from expansion. can you ever have to much "money" are too many firehouse subs? ♪ my mantra?
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a brd new start. your chae to rise and shine. with centurylink as your trusted technology partner, you can do just that with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more liable - secure - agile. and wi responsive, dedicated support, ♪ melissa: from product to prison, maybe if you live here in new york city in by any of those counterfeit bags or watches or fine city is known for. designers have been trying to tamp down on the sale for years. new proposal could hit customers
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where it hurts most. in the first bill of its kind in the u.s. anywhere, buying a cheap knockoff could come with a pretty expensive price tag of up to $1,000 for year in jail. for a lot of tourists buying that stuff is as much a part of the new york experience as times square. here is fox news legal analyst. they're going to go after -- i'm not saying i do it. i'm saying -- melissa: in chinatown. c'mon. that's not going to work. here's the deal. a couple of things that work here. number one, new york is always looking for a way to give more money. more money. more money. you get some poor person from ohio who is buying a bag. they give them some sort of ticket for a hundred dollars. and i think it will be a thousand. i can see, there you go, new revenue stream. number two among obviously a lot of pressure from the big boys to
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mike ricci, for saatchi, findlay, not the know anything about those places, to get these knockoffs of history because it puts a dent in their pocket. so if you attack the demand, then you don't need to supply. and a half to be honest with you, the first time in my career the first case -- ♪ i have a real career? >> trying not to take myself too seriously. they caught a drug dealer. usually the way it works is there a somebody in the try to go up the chain. for the first time they caught a gannett , a guy and went down the chain. detectives phone and all these texts and e-mails. 1 gram of coke and my grandma pot and when and arrested the buyers, the consumers which is really never happened before. that's what they're de, going after the consumer. no one wants to buy the bags are afraid they will be the ticket, then these guys i've going to be a selling them because that will make any money. melissa: i wonder who it really hurts. i mean --
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>> the ceo. melissa: oh, you know, it's a billion dollars a year. whenever it is. huge numbers. but if somebody is going after this tree in buying a $50 knocked off low is the time, that is not the person that was actually going. it's not actually stealing business. the argument in make is, well, you see the knockoff out there and it looks like crap, some people think airbags a terrible. >> can you say that word on tv? melissa: i can say anything now want. >> i understand your saying. obviously there was enough pressure here to get in new york city council woman to bring this bill to the floor. again, you will see bloomberg in support of this because his job is to a tax us without taxing ask a man that is what is to my new opportunity to bring in money. those people who are selling and usually don't have the appropriate licenses at the vendors on the streets of new york city have to pay 46 they already don't have the proper
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licenses. it always surprises me when i do go to chinatown, really anywhere else. is not just chinatown. it's on every street corner. his own website with a cart. and they have not got stuff on it. there are police everywhere. they're walking by. seems like for that vendor on the street corner who has things that are clearly marked and aren't. got help people make you think you're buying a real back in the corner of 48 contests for $20, you really are the most gullible person in the world. exactly. so why don't -- they can get revenue from just picking of everybody who's on every street corner selling this stuff. >> first of all, is that how we want to -- what we won our cops to be doing? or read about knockout bags with the guys -- melissa: at thousand dollars ticket. and then the people go home. they tell their friends and i came to new york city in the give me a ticket for buying this bag on the street.
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i'm never going back. you shouldn't go. >> you and i should go out on a professional date and go to the public hearing. melissa: what is happening? >> a professional state where we give voice our opinions and say we don't think this is in the best interests of the orders. that is how the city council works. introduce a bill. this is as good to talk about@ it. the passage, don't pass it. melissa: and bring a camera? woodman has been approved? i have a lot of questions. >> with a great camera anywhere. yyu just turn on your phone. the bottom, bottom, bottom line is that of the this is going to be like a life altering experience or a new york coulter experience for tourists. even if it does pass of the council be tackling people to write them a ticket because the bottom knocked off and back. they want to get an element of the street, that a legal element in making new york that puritanical place. melissa: i hope they are able to because then the -- thank you so much for coming on the show.
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we love you. all right. here is our "money" question of the day. that was fun. the thing customers should face fines or penalties for buying counterfeit goods? a mixed bag of responses. some say yes because customers generally know the difference, which i think is true. a lot of you said you think the punishment should be limited to those are selling the counterfeits. interesting conversation. you want to here from more of you. like us on facebook or follow me on twitter. all right. next on "money," no matter how the economy's doing, apparently you can always bet on a sandwich. a huge expansion in the face of obamacare and stiff competition. the ceo joins us to explain how. but should executives be allowed to dump their company stock? bread before i ceo steps down. details on a growing controversy the chairman, that is all the work of the street. this is a good one.
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at the summer event, going on now at your authorized mercedes-benz dealer. hurry, before this opportunity cools off. going on now at your authorized mercedes-benz dealer. we replaced people with a machineer, what? customers didn't like it. so why do banks do it? hello? hello?! if your banksn't let you talk to a realerson /7, you need hello?y. ally bank. your money needsn ally. melissa: this is one of the issues that we talked about on our show. jobs in the economy.
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we know that it has been given how close the last few years. one company has been given 800 new jobs just this honor. i am wondering the same thing. how is this? let me welcome the ceo of firehouse. bob, you have locations in 35 states. but still, 800 just this summer is a lot. 2400 workers in 2013 have said that you have done a lot of expanding even though the economy has not grown up fast. >> yes, americans have an insatiable appetite for great food. while the restaurant business is very competitive, they are continuing to grow in this environment. we have the second highest birthrate since last year and we -lways hoped to do one better than that.
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melissa: i'm sure that's right, given the climate and everything that employers are facing. wal-mart recently said that they are only hiring temporary workers at many of their u.s. stores for a number of reasons. honestly they want to be more flexible in the have to deal with benefits. we think of their decision and how does that compare with what you are doing? >> i really can't speak for them. in our industry, we will continue to rely on part of our workforce being full-time employees. whether it's our management staff or cease hourly employees it is the nature of this historically that it is full and part-time employees. melissa: so of those, what percentage of those would you say are part-time? >> we have a typical restaurant
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that has 55 or 75%. that is not much different a typical firehouse restaurant have 19 employees and about $18,000 per year will be full-time and the balance will be full-time. melissa: this is the economic argument. given the way that the law is structured now in the way that our economy has changed by obamacare and everything else, the new job that is going to replace the jobs that went away and the downturn are more jobs like the ones you're talking about, where they are part-time and perhaps do not have the same benefit and issnot a fair characterization and what or do you think that means for our economy?
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>> so it is just not a matter of just those positions so this includes the restaurant management team and our medium income wages. so this includes how there is the opportunity for growth. melissa: because good jobs are not discounted. >> we have developed a very sound plan on how we are going to implement health care in our restaurants. we own and operate the balance
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of our system. so many have more than full-time people and certainly our organizatioo is doing the best that we can as a large employer under these kind of provisions of the law. we are going to move forward with the same number of full-time employees that we have. we do have to change some things in the way we manage our business. the way that we schedule employees. i think we can do some very positive things to make ours more predictable and make it a win-win for us. melissa: i read that every dollar diverted to washington through tax policy, you said this is a dollar if you don't use to expand. or that you don't use it to hire people. what is the argument against that? people say that this is a dollar that you are not putting in your pocket or horror that for yourself.
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are taking those earnings and paying down existing debt and saving up. in the case of firehouse, saving the next $80,000 after taxes that they need to be able to go to the bank and borrow the other money that they need to create a healthy business. the general contractors, those who have to build it up. when the government goes then,. >> it is not always a point of view. i promise you'll come back and show. melissa: coming up next, the stock of lulu lemon. a controversial stock just in the nick of time. it is all the word on the
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melissa: so you want to know the behind the seen secret. "money" has it all tonight. here with the word on the street is spencer spencer from "the wall street journal." this is a fascinating story.3 this is the chairman of lulu lemon, who had been considered an insider, chairman of the board committee knows what's going on inside. you read that he was able to dump $50 million in stock right right before it was announced that the ceo is leaving. we found out bed this ceo is going out the door. he was able to do this and it was not insider trading.
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why is that? >> the reason is something that was devised by the fcc in 2000. you don't even have to buy it with the sec. it is basically a sales plan that you can file as an insider. melissa: >> executive of a company can go out and you can be completely3 unaware of it. then when they sell they can say that this was sold through merrill lynch or whoever and i filed it some months ago. the only requirement is that you file it not with the sec but the broker added time you are not possessing an information. melissa: so he decided to make the sale. i don't know how he would've had knowledge but at that time it seems he didn't know. so he could say i made a plan.
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but should he have canceled his order. there is a very high likelihood that he knew what was going on, or the other thing i was thinking if you just cancel it if there isn't nothing going on. and in this case, it's like, i have that in place, i can sell this and i can say what when i file that i had no idea. >> you think about making this as an insider profit. and you make a killing if you buy the option. >> in this space, you also -- it is also a foregone maas of profit. so you don't know if the
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executive had a plan to purchase that and cancel it. so you never know. because this only comes out when the sale occurs. they can have overlapping plans in place and you don't have to know the criteria. >> it just seems like an honest ways to fix it. he agreed back in december to sell this. in this case i have to say in
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his defense that he was more open about it and transparent. but he was more transparent about it. also he is still a very large shareholder. melissa: but he still think himself a $.5 million. but it may not make the front page because he didn't do anything illegal. you were one of the ones that got crushed their and it didn't make you feel really good. that's one of the reasons that they are talking about this story. thank you for coming on, we appreciate it. coming up on "money", vladimir putin may have his own esoteric and leader, but do not call him a thief. he is fighting back against claims that he stole a super
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putin is 2005 super bowl ring. the coach says that vladimir putin swiped it and he could not get it back. so now vladimir putin is offering to give the coach 25 thousand dollars. but he is not offering to give back the ring itself. [laughter] so it's like, wait, wait, wait -- what happened to my ring? >> there are two different versions. one extending factor is that the pr person for vladimir putin says that he was there in 2005 when the exchange was made and president vladimir putin was telling the truth. i don't think there is anyone who would doubt the veracity of the kremlin. [laughter] melissa: i wasn't sure how you're going to wrap that one up
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check out this nonstory. this balloon carries computer equipment and it collects power from solar panels below to provide internet access to an area of 745 square miles. it's just that it doesn't look like -- is this something that google does to keep track of this stuff? no, i'm just kidding. anyway. so anyway, here is this beautiful thing, and it is very interesting. >> error 223,000 registered gun
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owners. one of them has to declare open season on one of these balloons and then we will have a problem. melissa: fascinating. i have not even thought of that. you can save a in the cabinet for a week while the roaches come in and finally taken to the compost pile. does that sound wonderful or what? >> well, when you think about all of these fantastic things to deal with on new york summer nights. that sure is interesting. >> i am all in favor of this. should we do this this evening in new york? [laughter] >> this is what happens when you
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have six months left. when you have nothing to do. you have bicycles on the streets of manhattan is beyond that is all the "money" that we have for you today. %-gerri: hello, everybody, i am gerri willis. tonight on "the willis report", important new information you need to know. also, the markets can't stop thinking about the feds. we will have the money moves before this week's big meeting. and the new diet craze sweeping the nation. we are watching out for you tonight on "the willis report." ♪ ♪ ♪ gerri: our top story tonight is to automakerve
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