tv MONEY With Melissa Francis FOX Business June 20, 2013 5:00pm-6:01pm EDT
5:00 pm
pharmaceuticals, a whole slew of companies that transferred. nyse has problems. >> we expect to get a statement from the new york stock exchange in the morning. he is on the phones. next is money with melissa francis. david: the hand story we'll talk to you about that tomorrow. melissa: we are starting tonight with a market massacre. ben bernanke saying if the economy continues to improve he will cut back on his 85 billion-dollar a month bond buying program by the end of the year. that reality terrifying wall street. because the market may have to stand on its own two feet. combine that with a massive credit crutch in china and u.s. markets got absolutely slaughtered today. the dow closing down a staggering 353 points. look at that. 2.3% there. if you control down on this market massacre, christian dorsey from the economic policy institute. sam stovall, chief equity strategist at s&p capital iq. gentlemen, thanks so much for joining us. sam, shouldn't have been that
5:01 pm
big after deal. all ben bernanke said, if the economy continues to improve we may taper back on the buying by the end of the year. not that they will stop it all together. not that they will sell what they already have. look at the big gyrations we've seen. doesn't that tell you how ugly and messy this does point -- dismount actually will be? >> it tells me more, melissa, we're end of june which is quarter ending month a lot of portfolio managers are engaging in window addressing which could end up exacerbaaing the situation because they don't want any stocks really beaten up on their list of holdings as they go into the third quarter. plus i also think that bad news comes in threes. so when we have come months from fed chairman bernanke, when we have liquidity concerns coming out of china, i think people then start asking, what's next? melissa: christian that is another big story that has been pushed to the backburner what we saw in the market today. there are big things going on in china right now. lending between banks has basically seized up.
5:02 pm
how concerning is that? >> it's really not a huge concern at this point because unlike us in 2008, melissa, china has a lot of policy tools at its disposal to make sure that this is a fairly soft landing. so to believe that this is going to blow up into a full-fledged u.s.-style 2008 crisis i think it is way too early for that. melissa: then why do you think they have let those rates, we're looking at the rate right there. they let it skyrocket to all-time highs. they do have the tools to do something about it and they're specifically not. why? >> well, they have a growth in their shadow banking system that makes our shadow banking system of the 2008 period seem small by comparison. so it seems that china's trying to instill a little discipline and to get the banks to actually follow through with some necessary reforms so they don't overleverage themselves and drive themselves into a u.s.-style crisis which requires a huge central bank bailout. melissa: sam, are you buying that, especially when we look the purchasing managers index in
5:03 pm
china came in, that was lower than expected. seems like no matter how you slice it there's a slowdown. can they manage this easing and a soft landing? >> i think what the bank of chain is trying to do basically say we'll let interest rates rise. by telling people they can only own one home has not stopped the rise in real estate prices. maybe we'll let interest rates do it for us. so i think the government is basically saying, we want to slow things down a bit. we will do so through policy mandates but if we also have to do so by restricting liquidity, seeing rates rise, et cetera, then we'll take a shorter term dip back below the 50 level threshold which implies expansion. melissa: let me ask both of you, christian, i will start with you, this is really my biggest concern. we're watching interest rates respond. there is a lot of selling which is coinciding with the stock
5:04 pm
market. interest rates are going back up. i think that threatens this housing recovery which has been the foundation for the recovery overall. people point to the fact that the economy is not doing that well. the job market is better but it is not good but the housing market really recovered. that is because interest rates are so low. if we see interest rates going back up sooner rather than later i think it could take the footing out from under the whole recovery. christian what do you think? >> it could, melissa but i'm not seeing the data on the ground that justifies the volatility that we're seeing in the markets and the incredible erosion of the bond market. you know, what ben bernanke did yesterday was what people have been calling on him to do for a while and that's provide a greater degree of certainty than what the fed has been doing already. really what he said as you alluded to, melissa, what any of us could have predicted. if things con ten to improve, look better, the fed will ease back. we always knew that would be the case. to see such a rationale volatility based on what for me was a very expected response
5:05 pm
from the fed, is just irrational behavior on the part of the markets. melissa: what does that change? sam i will ask you. just because it is irrational doesn't mean they will stop doing it. or maybe it is rational because we have to start trading on real fundamentals real economics, based on what is really going on, not liquidity any longer. and it doesn't look that good out there and market has seen too much after run. sam, your thoughts? >> i think you hit it the nail on the head. we're going through a painful metamorphosis. it was droven by liquidity. now it has to be fundamentally driven one. melissa: exactly. >> fed said we think the con in is able to stand on its own two feet. what the market is saying with the selloff last two days is, we don't believe you. i think what the fed was also saying look, if we're wrong we'll stop the tapering and we'll reverse course. i think the market has and will
5:06 pm
probably be overdone in a little while. >> i hope you're right. gentlemen, thanks for coming on. appreciate your time and thoughts. >> my pleasure. >> amid market chaos, dreamworks annimation and netflix signed ad blockbuster deal. jeffrey katzenbergs ceo of dreamworks animation joins us next on the his game changing plan for hollywood. more "money" coming up. ♪ at od, whatever business you're in, that's the business we're in. with premium service like one of the best on-time delivery records and a low claimsatio,
5:07 pm
5:08 pm
it's debilitating when yotry to talk, when you're trying to eat, when you're trying to sleep. i'm constantly licking my lips. water would address the symptoms for jt a few minutes. the hygienist recommended biotene. it's clean and refreshing, i feel like i have plenty of fluid in my mouth. i brush with the biotene tootaste and i use the mouthwash every morning. it'snged my life. it is the last thing do before i walk out the door. biotene gives me that fresh confident feeling.
5:10 pm
♪ melissa: now to an icon of the movie business. jeffrey katzenberg, cofounder and ceo of dreamworks animation. the studio just signed a major multiyear original content deal with netflix this week. it is largest deal of its kind in netflix history. it gives members exclusive access to 300 hours of new tv episode. the dream works shows will be inspired by characters from its hit franchises like "shrek" and kung fu panda. the big question will this launch dreamworks annimation from a movie studio to all out-media platform business? that is where i started when i
5:11 pm
spoke with jeffrey katzenberg earlier today. it looks like it will throw off quite a bit of revenue for your business. 100 million the first year. you think by 25th teen that it will kick up to 200 illion annually. break that down for me. how is cost structure different from doing a series than doing a big movie? >> well the thing that i think is really great about this is that it's, doesn't have the same volatility to it. you know, this is a very substantial long-term output deal. we have the stability of netflix as a great platform, you know, for family entertainment today. it really has become the go-to destination. because of the size and scale of that, as well as the size and scale of this order, it allows us to really build up what will be an ongoing, almost utility business for us that doesn't have the same, you know,
5:12 pm
volatility of movies. melissa: no, absolutely. it is much more predictable of course what you will get for it because you presell the series but does it cost, i have no sense of the business. is it half as much to make 13 episodes of a series as it is to do a big movie if you consider marketing? what is the proportion like? >> well, you know what, i have not done the math on this but what i will say is that, we are going to produce about 1200 episodes over the next five years. it represents just under a billion dollars. and, we'll probably see about a 30% margin on that revenue. melissa: oh would you. that is terrific. what is a margin on a movie? >> ours are about 35%. they're very, very high. the animated movies, traditionally for us have been in the, sort of mid to high 30% margin business. the movie business typically is
5:13 pm
closer to ten to 12%. melissa: hmmm, interesting. why did you pick netflix versus, there is so much competition out there right now for people trying to get original content because this is really the key. when amazon is trying to get people to come in to be dedicated to them with prime. you have i tunes and hulu out there. there are a lot of different distributors and outlets competing for premium content. why did you pick netflix? what did they offer you? >> well i have to say a combination of things. first of all netflix picked us. i have to give them, you know, a large degree of credit. melissa: what do you mean? they came to you with idea or what do you mean by that? >> yes. very much so, yes. so we got in business with netflix several years ago. we were one of the first companies to make an output deal with them for our animated feature films. they made a tremendous, tremendous commitment to us about two years ago and then
5:14 pm
last year, at the end of last year they started to go into original content for family entertainment the way they have already taken a great leadership in terms of broader general @ontent like "house" of cards and "arrested development." we committed last year to do "turbo," a tv series of our movie coming out in a few weeks. out of our working with them, i think it really exposed both of us in a really good way to their ambition and what they're doing growing their platform. frankly them to us in terms of our bandwidth, our classic media library. the opportunity to do something significantly greater than just doing a one or two one-off tv shows. >> mentioned "turbo," your new character coming up. it is a snail, right? >> he is a garden snail from
5:15 pm
van nuys who gets that special power and can go superfast. melissa: i can't wait to see that. it looks like it is your first crossover product that would be in theaters and also have a series online at netflix or on your tv at netflix however you view how you're getting that systems. that the model you see going forward that you want both or will you create characters that have exclusively found on netflix? >> well, we'll do both. we have some original content that we're doing for, as part of the netflix deal. we have some of our classic media titles that we will be making for them. and for sure, we will be taking those properties off of our big feature films that can be adapted. that has been very, very successful for us. we had three blockbuster hits for nickelodeon with "madagascar," "kung fu panda" and "monsters vs. aliens." a great success for cartoons
5:16 pm
network with our "dragons" tv show. we had a good track record with that so this is really expanding on it. melissa: you mentioned "house of cards" and proved to be one of the fascinating phenomenons on netflix to how quickly people consume content there were a bunch of people, a big percentage, that went through the "house of cards" the entire first season in 48 hours. we watch cartoons. >> guilty. melissa: my kids consume them very, very fast as well when they like something. do you think there is going to be pressure on you to come up with even more content? do you think you could grow this business beyond the 200 million mark annually? >> so the answer is we hope there's pressure on us to do it and we're confident that we can continue to scale this. you know, we have a great
5:17 pm
foundation of talent here. we have the bandwidth to do this and to the degree it really proves itself out which i have a high degree of confidence in, more importantly netflix does, this is something that we'll be an ongoing long term business partnership between us and netflix. melissa: what do you think it says about the movie business, that you're moving in this direction and, you know, we know what it says for broadcast television, that a lot of series are moving on to netflix and other devices where it is, it is pay as you go and it is watch it when you want it in streaming and not the normal way people used to consume, television shows. what does it say for the movie business? do you think that the movie business is getting smaller? >> no, not at all. i think these are, this is about, you know, a growing opportunity for dreamworks, particularly for our brand and for the success we've had in the movie business. i mean the only reason this exists today is because of what you talked about at the top of this, which is madagascar and
5:18 pm
"shrek" and "kung fu panda" and the "the croods" and, "turbo." there are the heart and soul of what we do. they create so many opportunities beyond the life of what they're doing in movie theaters. we grow the company to take advantage and get full value out of it. we see these things complimentary to one another. the movie business continues to be very, very strong for us, a very important part of our business and it is the foundation of the company. melissa: we'll have a lot more of our interview with jeffrey katzenberg a bit later in the show. he talks about the recent $600 million hit, the crudes. and how the industry makes more money in the future. coming up on "money," $7 billion in equipment, that is how much stuff the u.s. military is about to throw away in afghanistan. we paid for it. is this really the best option? we'll explain. do you ever have too much money?
5:20 pm
trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those whomen are or who may become pregna and children should avoid contact where axiron is applied as unexpected signs of puberty in children or cnges in body hair or increased acne in women m occur. report these symptoms tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsing prostate symptoms; decproble breathingnt;ankle, f; enwhile sleeping; breasts; and blood clots in the legs. mmon side effects include skin redness or irritation where applied,
5:21 pm
5:22 pm
5:23 pm
hello? ally bank. your money needs an ally. melissa: whether on wall street or main street, there are people who made even money today. investors in gamestop and die-hard gamers breathing a huge sigh of relief. microsoft will not restrict used games on its xbox one console. that decision reverses its earlier position. gamestop gets one-third of revenue selling preowned games. this set gamestop up 1% on a tough day for the market. good for them. clearwire offer for wireless carrier $5 a share. that top as rival offer by dish network by 14%. investors can't get enough of the bidding war. shares of clearwire soared more
5:24 pm
than 7% today. robert downey, jr., proving he is the "iron man" hollywood. he signed up for two more avengers sequels. the terms are not out yet. down any's last four es films grossed $3.9 billion. insiders say he is likely to get paid a king's ran some. boy it pays to be a superhero, wow! >> no doubt we get all the money, but as we draw down the presence in afghanistan, we'll be leaving $7 billion worth of equipment behind. just leave it behind. it is standard proper to leave left over equipment but military officials call this unprecedented. this is a massive waste of military spending at worst possible time. people are shocked by this amount. i understand this is what we do when we leave a theater but, it's a lot of money. what are your thoughts? >> melissa, thank you, a
5:25 pm
pleasure to be with you this evening. it is unprecedented. i would like to correct one misperception out there. we don't as you do this it depend on where and when we fight. for example, coming out of iraq we moved at least as much equipment out of iraq as we currently have in afghanistan. because we had direct asset to port facilities in iraq and kuwait, it was much easier, much safer and much cheaper for to us return equipment from iraq to the united states. it is just a couple of hours a drive from baghdad down to the kuwait border. from there you can load ships in kuwait harbor. you float that back to the united states. afghanistan is a totally different situation. it's a land-locked country. the only way out is either through ground routes through unfriendly countries including pakistan, former soviet republics tajiiistan and turkmenistan, et cetera, and russii so it is a flying it out so it is a very expensive
5:26 pm
situation. melissa: we 25 billion worth of equipment in afghanistan. 19 billion will be sent back. 7 billion is what we'll leave behind t would cost 14 billion in order to get gear back. that is the cost of sending it back. 5 billion in shipping expenses. 9 billion to repair the damaged equipment. what is the danger of leaving it hyped? i mean is there, it makes me nervous that this is something that was valuable for us to have but we'reeleaving it there. what happens to it and what's the danger? >> well that's a great question, is a very good example in the near region actually in afghanistan. in the 19 # 0's we provided mujahadeen with significant soviets. to fight against the after the soviets leet afghanistan some mujahadeen became taliban and used the same weapons against western targets. so there is always a danger that any military equipment you leave behind will be wind up being used against you. that is why the military, pentagon gone through a careful
5:27 pm
planning process. we're only bringing back the most useful and lethal weapons. weapons we're leaving behind, weapons and equipment, is being destroyed or disabled in place to make sure it can't be used against us in some future conflict. melissa: some of the stuff we're talking about mine-resistant ambush protected vehicles. we no longer have a use for 12,300 of the roughly 25,000 we have around the world this is a piece of equipment that cost as million dollars. we can't fix it up and make it into something fabulous for the future? >> well, here we're getting into a very unique aspeck of military budgeting. the military has to pay for stuff exactly when it is used or exactly when the cost is incurred. for example, say the cost for bringing an mrap, mine-resistant ambush protected vehicle home is $250,000. for that big of a vehicle that is not unreasonable cost. melissa: wow. bring the million dollar vehicle
5:28 pm
home, it has to pay $250,000. melissa: why does it cost that much to put it on a plane to bring it back? >> the cost per flight hour for beg heavy cargo aircraft is extremely expensive. the u.s. has two heavy cargo lift aircraft. the c-5 and c-17. they're both very good aircraft and expensive to fly, maintain and operate and there is no civilian equivalent. melissa: that costs $250,000 per vehicle flying it back, really? >> if you amortize the entire cost of air frame, how many flight hours available, cost of the crew, training the crew, the fuel that is used, yes, it can cost up to about $250,000 to bring one of these 60,000-pound vehicles home. the mrap's come it different sizes. they each weigh different amounts. we can spend the money home, not spend the money. destroy it in place and if we need more mraps in the future we can build more. melissa: i need one of those.
5:29 pm
that would be so tough to park. such a quandary. thanks for coming on the show. we always appreciate it. >> have a good evening. >> bully other people of the out of the parking lot, right? who will pick a fight with me in one of those? >> turning back to our own shores, a mac mack's franchise in pennsylvania could be in big mc trouble, she was paid high fee prepaid credit card and she requested to pay direct deposit. outrageous fees on debit card she was required to use to get paid actually brought her salary below minimum wage. here with details, are natalie and her attorney, mike. thanks to both of you for joining us. now, let me start with you,. >> thank you. melissa: what were you told and what was your response? give us your side of the story. >> >> i was told they would only
5:30 pm
pay on the debit card. when i got the debit card and checked out the fees, i decided it was outrageous all the fees that came along with it. melissa: you said to them, i would rather be paid any other way. this is just too expensive. direct deposit into my existing account or cut me a paycheck, which by the way they did cut you a paycheck the very first week because you concern set up yet. what was their response to you when you said you wanted to be paid any other way? >> first i asked the manager and the manager told me we can't. only way we pay is on the card. i went to the higher ups in the main office they told me, sorry you can activate the card or we can't pay you. so, eventually i had to reach out to legal assistance. melissa: mike, you know, the fees are very high especially if you're making minimum wage. you know, $1.50 charge for atm withdrawals. $5 for over-the-counter cash withdrawals. one dollar fee to check the balance every time. 75-cent fee for online bill
5:31 pm
payment. $10 a month activation fee if the card is not used for three months that money goes to jpmorgan chase. what did mack mack's get out of forcing her to do it this way? >> well, we're not really surety point but we're getting e-mails from lawyers around the coontry that say that we should check the relationship between chase and mack mack's. and -- macdonald's. some of them indicated mcdonald's would get rebate or paycheck, remuneration from all the fees that employees would pay. that is just not fair, not fair. it might also be illegal. but it wasn't fair in this situation. and what we did we sat down, we did our research. we got affidavits from other employees. we reserved the law again. we went over the complaint and when we finally, we filed a complaint, and, there has been a groundswell of activities from all over the world. i mean we must have 300 e-mails
5:32 pm
from people in all states of thh union. melissa: i can imagine that. mcdonald's are washing their hands. franchisees are their own owners that make employment decisions. >> that is nice for them but. melissa: what has been the response from mcdonald's and the franchise. >> we haven't had a response but mcdonald's can tell you where you can put your place. where you have the parking lot. what colors you have. where you place your tables. how you clean the floor. when you have the employees. what are, uniforms. what they wear. when they work. how, what kind of meat you use. what kind of potatoes. now all of sudden mcdonald's is saying we're washing our hands? i don't know what the answer is but we'll find out. melissa: natalie, let me ask you before we run out of time. you worked for three weeks. what are you seeking? your damages are not that high. you didn't lose that much money
5:33 pm
if you were only there three weeks. what are you seeking to get out of this and what damages are you seeking? >> there are about ten days left that was not fade for. i never received any kind of payment for it. and, because the card wasn't activated they couldn't pay me. melissa: so you're basically looking for your money? mike, you guys aren't seeking anything beyond that? >> oh we're looking for punitive damages. some government agencies have called us. they have asked for copies of the complaint. the labor department, representative of the united states attorney's office have. you know, this is something that we're going to get to the ground floor and what we're really looking for, we're looking for legislation which will control out people are paid. and obviously, payroll cards, now the new venture. we also need legislation. so that the poor people don't get slammed. melissa: all right. thank you so much for coming on the show. keep us apprised of this case. you heard what mcdonald's had
5:34 pm
to say. >> we will. melissa: we reached out to franchise owners an invite them to come on the show-and-tell their side of the story always. thanks to both of you. >> next on money, are tiered ticket sales the new goldman for hollywood? jeffrey katzenberg tells us where he sees the next cash cow or for the film industry. "piles of money" coming up. ♪ ♪
5:35 pm
[ agent smith ] i've found soware that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines whildramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a om. [ static warbles ] how old is the oldest person you've known? we gave people a sticker and had them show us. we learnea lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living lonr, one tng that hasn't changed much is the officiaretirementge. ♪ the question is how do you make sure you have the moneyou need to enjoy all of these years. ♪
5:36 pm
accomplishing even little things can become major victories. i'm phil mickelson, pro golfer. when i was diagnosed th psoriatic arthritis, my rheumatologist prescribed enbrel for my pain and stiffness, and to help stop joint damage. male announcer ] enbrel may lower your ability to fight infections. seous, sometimes fatal events including infections, tuberculosis, lymphoma, other cancs, nervous system and blood disorders, and allergic reactions have occurred. before starting enbrel, your doctor should test you for tuberculosis and discuss whether you've been to a region where certain fungal infections are common. you should not start enbrel if you have an infection like the flu. tell your doct if you're prone to infections, have cuts or sores have had hepatit b, have been treated for heart faile, or if you have symptoms such as persistent fever, bruising, bleeding, or palens. nce enbrel helped relieve my joint pain, it's the little things that mean the most. ask your rheumatogist if enbrel is right for you. [ doctor ] enbrel, the number one biologic medidice prescribed by rheumatologists.
5:38 pm
melissa: money and is always on the move. taking a big hit after hours, reported fiscal fourth-quarter earnings. oracle's own forecast came at the low end. sales are also dragging on earnings. they announced that they would switch it. movies like switch and madagascar. how much money does it do to the company's bottom line. >> anyone who has watched it, it is being very tough business and not everytting can be a huge hit like shrek. dreamworks animation. >> i know, i know.
5:39 pm
[laughter] melissa: do you think this turns this around? >> well, first, let me answer the first question, which is dreamworks animation is 13 years in the making of animated movies. eighteen years of those 19 have been profitable. i definitely don't think there has ever been a more consistent profitable movie enterprise.
5:40 pm
the average box office of those 19 movies is over $500 million. because we do produce movies at a very expensive high-end, we can have something amiss like this. so yes, we have to do this. but the movie business has been extremely profitable for our company and expanding into television does not lessen that risk. what it does do is creating some stability and other revenue horses. but you know, we love the movie business. definitely we are not shying
5:41 pm
away from the business. we have three big titles next year. >> at the same time, people talk about the volatility that you mentioned. this is something that steven spielberg talked about where you have a blockbuster ticket prices and the ticket prices for what you would call smaller movies. there is this idea you have popcorn and that sort of thing. is that interesting to you when you charge different prices for different tickets? do you think that would work better? >> not really. you know, our movies are for the family audience. they are the teams around the world that are 65% of our business is done outside of the united states. you know, we are about being inclusive and creating experiences that the whole family can share together.
5:42 pm
they are not a replacement for our own business. you know, i think it is the fact that our movies are so accessible and also reasonable frankly. if you think about it, and average ticket prices under $8 and it is almost no better value in terms of going and finding two hours of entertainment anywhere on the planet. melissa: they always get you in the end with merchandise. it is the endless stream of facts and cars and everything else. i digress. >> what you meant to say was how much you appreciate this and false love with these wonderful and talented things and be able
5:43 pm
to become their best friend and we also want to say thank you, we appreciate that. melissa: that's right, if only he would institute some sort of rebate program where i can get points and get dollars back or something. let me ask you a little bit of a question here. you started dreamworks. in 2005, disney stock is up 133%. is this something that irritates you that keeps you awake at night. am i the first person that has ever mentioned it. what is your reaction about? >> well, the disney company is a great company. bob has done a stunning job in the last decade. you know. i have just the greatest admiration for him. we are just very much trying to
5:44 pm
build our own enterprise. i have great confidence in where we are today. more importantly, where we are going in the future. i think that dreamworks has come into itself and it's a great brand and recognized around the world. opportunities are opening up for netflix here in china here, themepark being part businesses. it's just a great horizon for us. the stock market will be up and down. we appreciate you. they don't appreciate your you at times. you know, i think that it is something that i'm confident about. the future. melissa: we wrapped up afterwards and he said that wasn't really a mean question, which i was so glad to hear. anyway, coming up, an overhaul for white-collar punishment. and it is all the word on wall street. stick around for details. at the end of the day, it's all about money.
5:45 pm
with fidelity's options platform, we've completely integrated every step of the process, making it easier to try lters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stetevens, and i helped creat fidelity's options platform. it's one more innovative reaso serious investors are c. now get 200 free trades when you open an account. if you've got it, you know how hard it can be to breathe and man, you know how that feels. copd includes emphysema and chronic bronchit. spiriva is a once-daily inhaled copd maintenance treatment at helps open my obstructed airways for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bride inhalation powder do not replace fast-acting inhalers for sudden symptoms.
5:46 pm
tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathin suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems ssing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. does breathing with copdeigh you down? don't wait to ask your doctor about spiri.
5:49 pm
behind-the-scenes story. we have it all here on "money." and the word on wall street. the gossip on what is going on with white-collar crime. we are talking about all of this with steve cohen. jeffrey is six years into his 24 year sentence. as much as it is. here we have spencer. thank you so much for coming back. people are talking about this. there are a lot of things that could happen with what's to come. >> the legal experts think that they could get as much as a decade off because of the way the sentence was calculated. i gets to the heart of the issue. they bring these very high-profile cases.
5:50 pm
i don't think he deserved 24 years. enron was the seventh largest company of the year. a lot of people lost their jobs and savings. he was definitely culpable. ii was an accounting fraud, but 24 years, putting that into perspective, the average murder sentence is 49 years. you have a lot of people who get off with the standard sentences or prosecution or those who are in the thick who you have never heard of. melissa: and because he irritated the judge comment has to do the weight of a it. is that right? >> about 70% is based on the economic cost. that is also if you look at what enron was about. and what it was worth at the end, which was zero.
5:51 pm
if you plug it into the formula, you get 24 years. >> it is so hard to sit there and evaluate what is the damage to you. that is sort of what you are looking at. honestly this is only money on one hand. on the other hand, when you think about the scummy thing about bernie medoc and their whole life savings were wiped out and people committed suicide. there was death involved in these cases. i mean, how do you weigh that in going forward? do you think this is the beginning of a trend or we will see lighter sentencing for financial crisis is that you're not just going to see this with whatever people like to say -- people should go to jail if they commit crimes. they should be punished in some way. but why are people sentenced to prison in the first place? well, because they might be dangerous to society.
5:52 pm
that is almost never the case. people, if you look at it, if you look at how they can be in the same business. they have fallen from a very high social position. this is like no money for them. >> we mentioned some others. >> every time you have a crisis, their there are people losing money. the public wants this. while the sentencing guidelines might be changed, the american bar ssociation has a commission. resources are misallocated. it costs a lot to have this. there are lots of people who don't get this. melissa: that is a matter of opinion. you don't think it will be a big change? >> not in a big way. >> okay.
5:53 pm
5:56 pm
5:57 pm
laundry list of complaints. to top it off, they don't even get great gas mileage. at that point? for claims its 47 miles per gallon. consumer reports says that it's more like 37 miles per gallon. >> it is such a funky looking car. what is up with that? >> i just rented a monster. it got more than 37 miles to the gallon. the point is you're paying 30,000 dollars for this and it drives like a 20,000-dollar car it cost too much. the cost that much, you want something more and not less than maximally people are buying smaller cars and make a great fuel economy.
5:58 pm
>> okay, onto on to the perfect car. i love this. this full vote self parking car actually find a parking spot by itself. it's like the perfect valet. you don't even have to tip it. then when you come out, it picks you up. at first i dismissed the story. but that is not what happens here. you call it from your cell phone and it comes back up to the front of the restaurant to get you. >> that is how bats determine what is around them. [laughter]
5:59 pm
6:00 pm
>> i love him. he was such a good actor. melissa: thank you both for coming today. that is all that "money" that we have today. here comes "the willis report." gerri: tonight on "the willis report", the markets rocked by the fed. a two-day loss for stocks. also, the 50-dollar movie ticket. that is what some people say when they see the new brad pitt movie. and will this be the new norm at the movie theater. we are watching out for you tonight on "the willis report."
172 Views
IN COLLECTIONS
FOX BusinessUploaded by TV Archive on
![](http://athena.archive.org/0.gif?kind=track_js&track_js_case=control&cache_bust=1068231732)