7:00 p.m. happy friday. thank you for joining us. have a great weekend and i'll see you back here on monday. ♪ gerri: hello. i'm gerri willis. tonight on "the willis report" the banks are at it again. they figured out another way to squeeze you, at the atm. also, the best way to travel with your pet. and in fashion tonight, the unique way for consumers to try and get a little back. >> they are just so cute. gerri: watching out for you tonight on "the willis report". ♪ gerri: all that and more. first, our top story. is the recovering housing market

covering a possible? median home prices are surging up 15% from the year before with sales through the roof. this is not helping curve fears that housing is growing too big too quickly. with more, a finance professor at george mason university. welcome back to the show. when the national association of realtors says that prices are growing too quickly, that is a @%gn of something. what do you say? >> well, absolutely. growing too quickly, you really need to take a closer look at the data. and they are. gerri: well we saw was an 8 percent hike month-to-month which is coming you know, it reminds me a lot of 2006, 2005, 2004. is this a bubble? >> -- >> let's take a look at this carefully. on the surface, yes. if you look at mortgage purchase applications, they are at 1995 levels which means this is not consumers.

these are investors and wall street jumping in and buying paying cash. so there is a bubble, absolutely it is not going away anytime soon. gerri: one of the issues at play here, rising interest rates. expectations out ttere that rising rates could kill this bone. i want to show you some facts. the average 30 year fixed-rate mortgage across the country cruising just under 4 percent in many markkts. you look at just under 4% on the east coast, the same on the west. it is by region. like that. and then you can start to consider how much of these rates will go higher. you already have expectations that rates will be at four and a half% early next week. imagine what happens if they get a 7% all across the country. these houses are not affordable. cities like denver, los angeles, san francisco, seattle, miami,

washington, new york city. we are a long way f

rocked for a second day after the fed nearly hinted at a potential pullback. check out fast green. it is rocking out. retirement savings taking it on the chin. how you manage this year in this marketplace? joining me now dr. keith tableau, a psychologist and fox news contributor, chief equity strategist. i will start with you. i have known you a very long time. we want to talk market

psychology. our professional investors just losing it? >> what is happening is investors are making more out of a move that we have seen because we have not even declined by 5%. historically we have a plan of 5-10 percent every year since world war two. we are really just doing will normally do. gerri: people have lost their minds. i agree with you. you think about this thing all the time. market psychology. there are lots of lines in the sand. we decided that the yield on the treasury is insanity. what do you say? >> i say that the reason that you have that kind of panic is, try telling an alcoholic that there won't be any alcohol available for four or six hours. in other words, when your drug

to with free money and irrational interest rates that are artificially low, the idea of a poll that brings reality back. wait a second, it has been a bubble. we have been addicted and dependent on government fixing the system. guess what, it cannot be sustained in people get their pulses of. they get panicked. they should. gerri: you make a great point. government standing behind. the federal reserve keeping this market afloat for four years. a 4-year bull market. we have to transition to something else. how do we do that as individual investors? >> we don't really have a choice in the matter. we will have to be dragged along, and it depends upon how we -- gerri: i don't want to be dragged. i don't want to be dragged. i want to lead the charge. >> don't overreact. my feeling is that what the fed is trying to do issto avoid a

japan-site deflationary environment. there are the only game in town because congress cannot seem to get its act together to come up with any kind of measures that would help to support the economy, and so interest rates are artificially low. they did not hands. they told us. we start our tapering program in the latter part of this year and end by next year. basically we are just getting back to a non stimulus environments. gerri: back to normal, but people feel like it is now back to normal. it is something new. how'd you advise people with low will be a very volatile summer and then fall? >> number one, you don't want to be our own psychiatrist or your own financial planner unless you're one. i think that the other thing is to say, look, now getting to sleep and not having nightmares or waking up in the middle of the night should be in a you have conveyed to your financial timor adviser the effect you

want to be conservative, preserve your position. you don't want to be subject to bipolar disorder which is what happens when you sever reality and that your marriage flow from high to move to five high to low night. you're going to come down to the ground level. think people should be telling their financial advisers, make the landing as easy as possible because it is coming. gerri: when i think about this, i don't really make decisions based on what the market is doing with my retirement account or savings. instead what i do is put money in all the time. i take out all of that anxiety. it's possible i don't even look at it as much as i should. what do you tell people who know they should not operate off of their got. >> more like you and realize that we have had declines of five to 10 percent every year since world war two and have

gone back to break-even in only two months. twenty declined to attend to 20% and got back to break-even amelie for once. you're probably better off buying and you are bailing. the only way you're actually lose money is by selling at the bottom. don't get -- don't let your emotions rule. you're paying your advisor to hold your hand and tell you not to self at the worst possible time. gerri: last word. >> the last word is this. since we have seen even the internet bubble, when that person that was not such a quick recovery. that ruined a lot of people. for the folks who are at the manic high i will be their psychiatrist and say, don't have irrational exuberance. rain in yourself, planned for stormy weather to come, and i agree with my coat guest. don't panic.

gerri: keep your head when others are losing theirs. then make a ton of dough in times like this. this is what they live for and want. as an individual investor, you don't have to play that game. you can be smarter than wall street. thank you for coming on. great advice. love it. now we want to know what you think. vote on the right hand side of the screen nd i was sure the results of the end of the show. more to come, including tips on how to bring man's best friend with you on your summer vacation we have dogs in the house. coming to an atm near you, prepaid debit cards. why this is a big idea next. ♪ vo: traveling you denitely end up meeting a lot more people but

a friend under water is somethincomplely different. i met a turtle friend today. avo: atever you're looking for, expedihas more ways to help u find yours.

♪ gerri: we are looking out for your credit score.

money moves in on your history for years to come. joining me now with tips to boosting your credit score, consumer education president for smart credit. welcome back to the show. always good to have you won. want to start with this credit scoring and how long it stays on. it is a long time. if you have that information how long is it? >> the credit information is a self policing industry, and when you screw up, missed payments or have accounts go into default or collections are unfortunately most recently foreclosure, that is a 7-year penalty. if you do something more slight file bankruptcy or have a tax lien on your credit report for an unpaid student loan, those can stay longer. bankruptcy's up to ten years. tax liens can stay indefinitely. gerri: why does the good stuff go away sooner? >> it is interesting that you bring that u interesting that yu

bring that up. the federal law that defines when bad things have to be removes actually does not address good things. it is silent. technically the credit reporting agencies can maintain good information's forever. they don't. the bureaus and policies in place that they will remove inactive old accounts after a decade which is probably not a big deal because by then you have likely established other accounts. there is no other guarantee that your old credit that you established when you were in your teens are in your 20's is going to hang out forever gerri: that does not surprise me. what is your number one piece of it highs for improving the credit score? >> that is an easy one. but something that is actionable. the number one way to improve your credit score quickly is to pay off credit-card debt. that does not mean yyu have to take it from 20,000 to zero. if you can start chipping away at its, you would be surprised

how quickly it will i is because it does not have a memory, meaning it does not know that you had more debt yesterday then you do today. the medicos down the score will go up. gerri: a big story coming atm will issue prepaid debit cards. if you want to give one of those , go to your corner atm and pull it out. you talked a lot about prepaid debit cards. banks are charging big time fees. what you make of this? >> it does not surprise me, and eventually you kind of thought that the atm machine would be used for more than just balance inquiries and taking cash out. the fact that now some big banks -- undisclosed at this point -- is essentially a rewors?ng the atm machine to be able to give out a prepaid debit card.

it does not surprise me and is another way to monetize the atm machine which for many years they have not had a way to further monetiout a and now theo gerri: when you say further monetize, it means taking money out of my pocket and putting in there is because what are we talking about? we're tals?ng about selling their product or have to pay to get access to my money. >> not only -- remember, when you go to an atm machine unless you are in the work you will pay a fee. it is likely you'll pay one to get this, because you have to activate, load funds on to it. these are things that cost them money. it will subsidiout a by charging you money. just because you have the card, that does not mean that the teeseven did. you will likely have to pay the same types of fees. this is your money. after tax money.

already been taxed on it. now you're getting the bank tax when you want to put not piece of plastic. gerri: not just the pop stars, but the financial advisers as well. a lot of attention. ides -- i just don't want to pay that much for access to my money >> i don't want to pay anything to access my money. gerri: you know what, it's your money. >> it is my money. [laughter] >> stipulated in the greed. gerri: have a great weekend. gerri: you do the same. time for a look at the stories you're clicking on. enough is enough. the bleeding stopped on wall street. to pater a 2ornay plunge the mat ended in a green today. maybe they will not get so spooked next time the fed talks about ending stimulus measures. get reasam to pay more for your latte. starbucks is hiking prices on average by 1 percent nationally

on tuesday. that comes up to an increase of $0.10, but for those who drink lattes, it will be more like rc.4cen the vintage computer from 1976 goes on the auction block at christie's ne tht week with the bidding starting at $300,000. estimates have a calling for3 closer to half a million. more competing action. about 200 of these computers remain, but only 40 still exist. good news for alec baldwin. the government is moving toward easing its -- restrictions on electronic device used during takeoff and landing. those are some other hot stars right now on foxbusiness.com. coming up later, the government getting involved in the housing market, but are they going to far? next we answer the quest that. we have doggies on set people. stay with us. ♪ my mantra?

alwa go the extra mile. to treat my low testosterone, i did myesearcra? my doctor and i went with iron, the only underarm low t treatment. axiron can restoret levels l in aut 2 weeks in most men. axiron is not for use in wom or anyone younger than 18 or men with prosta or breast cancer. and children should avoid contact where axiron is applied as uneected signs of puberty inhildren or changes in body hair or increased acne in women may occur. report the symptoms to your doctoror. tell your doctor about all medical conditions and meditions. serious side effects could include increased risk of prostatcancer; worsening prostateymptom creased spercount; ankle, feet or body swelling; enlarg or painful breasts; problems bathing whilsleeping; and blood clots in the legs. mmide effects include skin redne or irritati where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa.

ask your doctor about only underm low t treatment, axiron. how old is the oldest person you've known? we gavpeople a sticker and had them show us. we learned a lot of us havenown someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you ed to eoy all of these years. ♪

gerri: traveling with your 4-legged friend can be stressful. had on the journey in 60 seconds.n,

♪ gerri: well, don't turn your next summer vacation into a guilt trip. leading -- leaving behind your nk vacation, but bringing them along is not night -- easy either. joining me now, welcome to the show. >> thank you for having us. gerri: let's introduce our friends. >> this is hannah, a 3-year-old golden retriever.

this is a 6-year-old english spaniel. gerri: i know so many ps is pleo want to take their dogs on vacation and it is not the easiest thing in the world. >> you really have to plan ahead. you have to find a destination that is bad friendly and also safe. gerri: what does that mean? where you find places that are nce >> i s not sgest that you starth aaa. they have that pet book, and e-book download. they also have great representative soup and help you plan a vacation. baseball games in the summertime . lots of activities. but rice. the beach, even in chicago. and then san diego this week is having a seas ih dog competitio. gerri: i am presaycupied. they're pretty. so, steps that you can take. what do you need to do to get ready for the vacation?

>> well, make sure that your dog is accustomed to but ng either n a crate or the standard bag which you want to fly with. this way your dlis is protected weather in the car or flying with her on a plane. next, flea and tick projection. really i is people to go with something like winiple protection because you want to make sure you're not bringing fleas home. gerri: you have foo. they >> yes. food is important. for example. this is -- we at do like the fat that it has meat because it is high trading. approaching boost. what food hydrates? >> there are some hotels that are happy to have pets and dogs.

>> there are k-9 ambassadors. that's really important. also, you don't want to forget. your dliss are out of conwinol. gerri: you're making this like a vacation. >> last but not least, a lot of people are ank bad bugs home. gerri: a pet in the room. >> a lot of times what hporpens is if you have your great work your bag people put them on the hotel r not s. i s not sgest you put it in the bathroom. this way the bad b not ss won'to in. all natural is good.

gerri: of want to keep an eye. thank you for coming on. been a pleasure having all of you here. you have to come back sometime. >> thank you for having me. gerri: coming up, do not fall for it. why she -- were you should not pay someone to take care of your student loans for you. planning eminent domain. our les.al panel wut ghs in ne . ♪

at od, whatever business you'ren with premium service likene of the best on-time delivery records and a low claimsatio, we do whatever it takes to mak your business our business. od. helping the world keep promises.

♪ >> from our fox business studios in new york, here again is gerri willis. ♪ gerri: a growing number estates are taking another look at using eminent domain tessie's

underwater mortgages. now, instead of folks losing their home to foreclosure of a goveul.ment would buy the mortgage for the lender and cut the loan princalsal. is it les.al? with us now, attorney doing case . i will start with you. you said the point is that there needs to be a way to force lenders to make decisions that are good for them. >> some of these things are in winust, and they cannot write these backed by law. if they follow the trust they cannot do it. there has to be away, and they they cannot, so there needs to be a mechanism. this-lust seems like a way to do it. the government started this mess . >> i have to become very clear with you.

what it means, generally the federal gover itent coming in and taking your land and property because they need to build a road or do something. gerri: the local government wants to run this. >> out the window with the checks and balances are? i do not trust this idea. gerri: it s interesting is here is what is going on. in the name of trying to help people who are under water, and i read in a lsayal newspaper, te editorial where the writer say we have to save these communities. >> and they are. i had a client that owed one half million on his house and winied to set live with the lender from million. the 5-yea6--yea the alreasam pad which was everybosam breaks even in a start over. the lender said know when it

went into foreclosure and the lender loss $250,000 the house sat likecant in a high end comestany for a year-and-a-half and killed everyone else's property value because. gerri: i'm sorcli, and that's horrible, but i have to give the lawyer slippery slope argument. we allowed e -nent domain which should be very rarely used. in this context the ne tht time, the next timlaw the ne tht time, local government and municipalities wills anse with e federal gover itent has and go in and take your stuff. >> you have tos annderstand that it will be supervised by a court. the government just does not get to go in and do whatever they want to. they have to set up parameters. gerri: evecli listed q,00stion. supervising by courts is not make me feel better. let's talk about real estate. the editorial was saying ido these communities are going down the tubes because ps is ple are under water. these particular programs, it is all being suggested by a company called morrri

partners, the people selling the saudi all over the countcli. what they say is this will save those people. the communities will be better ofly u how will the comestanities be better off? you're still talking about pe oule who are having ae nery diarelicult time even of boardig home. how then maintain propertieavi this is not benefit for the community, is it? >> absolutely. if they write that morrri these ps is ple have flexibility and can sell their house. gerri: no way. >> the gover itent coming in at a local and municipalities state and taking ps is plgerri tas annng their house is good fr the government? >> wait a minute. you are way oarel. >> no, isat not. >> no, they are taking the mortgage away from the morrri co is they're not taking anyone's house. you keep your house. they're repackagedo to where you are not under water and sell it to another morrri

co is you sell your house. >> mn domain which is a very frightening thing. gerri: i want to ask this question. to my way of thinking as a homeowner m. itent comes in and takes my house i cannot think of anything scarier here is one of the pror-ems. here is one of the problems. we have seen a number of federal prlisray, to tcli to help out pe oule who are behind on mortgages, under water, cannot pay, don't want to pay. they have not worked. a stunning lack of success in that category. why would this be a wa dm. >> it probably won't. i am a free-market person. i thia f free-market o not se ao take ove hi the problem is, we have gone way passed allowing the free market to work. it's something. we have to do something to help. gerri: do we really? really.

>> let all of the foreclosures go and start another cycle. gerri: it does not start another cycle. >> a plus for effort. gerri: you have been really patient. thank you for arguing. okay. thank you for coming on. good to see you. i love my job, but most of us donumt. a third are completely satisfied. that list is tonight's top five. wasatiington d.c. they may be satisffoed with ther job, but they are not doing them. the most satisffoed.

san francisco, always seemed to be happy. i have lived there and i wsell. an hour south and you find the number one city. san jose, californir s hard not to be hporci with some of the biggest employers in the city. bottom linlaw if you want to be happy to move westward elected to congress. still to come, my "2 cenl t mor" and a warning for college grads. don't go away. gerri: in

♪ gerri: scanning bar or struggling to repay student loans. i put a new report from consumer watchdog up charging to offer debt reliely u some firy, reportedly charging customers initial fees of up to $1,600 for services that they can get for free. senior vice president and

publishers of the advisers. thank you for coming back on the show. i look at this and think here we go aprobin. we see these kinst of stammers generally targeting people having troglle with that, but they are smart eno not sh to knw the students have accumulated trillions of dollars in debt. >> they are charging a fee for something that the government provides for free. the gover itent prov?es consolidation, income based repayment, rehabilitation of defaulted loans all for free. gerri: let's look at what some of these folks are doing, charging high fees for progr sts that are free, selling in one-size-fits-all approach. they provide inaccurate information and tell you things about government programs that are not sure onlinlaw discouraging borrowers from handling cases and focusing on saledo how d? these companies typically approach students and people with student loan d puer o

>> some of them aloaertise on tv with names that are similar to the federal gover itent direct loan progr stu. you hear these advertisements for services that the gover itent offet an. instead of simply giving you the federal government income based repawe gerri: gyou. >> just try searching consolidation loans or d put reli b. you will find dozens of them. they started popping up in the laat fngr yeat an. gerri: we tcli to avoid not talking about scams that you would have to be stu fold to fal fo hi this may not be anything. this may be a scandal a lot of peli stanytenl t in debt often don't know what to do. what do you aloaise? what gover itent progr stus are there for people who are in over their head?

>> d berments and forbearances which are temporary suspensions of the obligation to repay the de d. then you can ae pro consolidate with the direct loan program. get something like income bselld repawe if you happen to have defaulted, there are roaming d put litation prlisray, and opportunities settle for less than the amount you owe. gerri: all at art ley le for fre lacom the federal government. a lot of people who watch the trhossdo not l fre these progr s because at the end of the day people do not repay the debt that they'll. for gppedness sakes don't get paid by one of these cameras. >> the federal gover itent. there is rppem for these scay, o exist simply because the government does not tell borrowers about all the optiowht that are available. gerri: thank ou for coming on

and explaining it to our viewers. people know where to go. thank you. >> thaa f you. gerri: on to this stay in business history. 2003 the fifth harcli potter bpk on the s stue day amazowhat shid out more than 1 million copies making it the largest distribution day of a single item in e-commerce history. a total of 55 tionllion cli resolved in 2007 opening to arab world wide fyou. $233 mt llion remained daose ta billion dollars. the fifth harry potter bppek wsl pur-ished todaynedune y th1st ad just ten years ago. still to come, my "2 cenl t more." next, fsellhion fri tvy. the of clothes designed from the liberals and themire brn

casaginatiowhat. trtay with us. ♪ [ male announcer ] with free package pickup from the united states stal service a small design firm can ship like a b business. st go online to pay, pnt and have your packages pick up for free. we'ldo the res ♪ vo: ta friend under water is end usomeing completely different.ut i met a turtle friend today so, you don't get that very often.

it seemed like it was more than happy to have us in his home. so beautif avo: more travel. more options. moreersonal. whatever you're looking for exp you find yours. owner of an online shopping girls expreain their individuality well hel folng a good cause.

gerri: with more on this, founder and ceo of polk could not. so, tell me what polka dot what is? >> well, it is a leggings line for girls two to ten years old, and we do is aimed to empower creativity ended still stuff -- self-esteem and teaches the importance of giving back at an early age. gerri: they are so cute. different colors. it's great. the kids can kind of pick what kind of combination of want on their website. >> yes. we offered a template to go online. the colors and prints are given in powering names, personality traits. gerri: so a couple of years ago, two years old. >> exactly. gerri: you're doing it on line right now, but the big success,3 your breakthrough has been getting these dads on the bodies

of celebrity kids. if i have learned one thing from this fashion segment it is getting to celebrities is the key to success for fashion designers. tell me how you did it. >> i worked with a wonderful pr company based in out of l.a. they were able to see. just my luck i got an alert that halley barry, her daughter was wearing our unique and sweet leggings. wearing our awesome and sweet leggings shown on the mannequin year. got lucky and it was wonderful. gerri: i know your background is in advertising, but surprised to about running a business that you had not encountered before? >> i started this alone. i kind of did everything by myself. i did not have a team or partner. so basically running off to factories, filling orders. all of the finances and fixing web errors on my site if here

were any. it was challenging doing this on my own, but now i have a team that i can rely on and work with on a day-to-day basis. gerri: you did something interesting where you were making some of these goods overseas. you say, next year everything is going to return to the u.s. for manufacturing. >> we believe in a made in america product. obviously supporting job growth in the u.s. as well. the greattthing about it, the first two questions were done in the u.s. what i loved about that was the fact that i can go to the factory throughout the whole process and touch and feel the fabric and correct things as we go. it was tough dealing with international factories, the language and the time difference and all that. gerri: everything that is happening. another interesting thing about your story is that you work with the charity. >> 10% of our profits go to the lunch box fund which is a nonprofit organization based in

south africa. they provide daily meals to schoolchildren impoverished in at risk areas. so how it works is five meals are provided to these kids in schools in south africa for every pair of leggings sold. gerri: fantastic. what is, you know, the next stage for your company? where you going next? >> we started out with leggings only, and now with of a great response we have received from parents and children and celebrities we are going to be expanding tent tops and dresses as of next year. we will be expanding. resail overseas. expanding the family. gerri: in case that your's can i see. congratulations on your company. good luck with the family.

so uch fun to see what you're doing in that the people of the kick of it. >> thank you. appreciate it. ♪ gerri: we will be right back with my "2 cents more" and the answer to our question of the day. do you invest with your head or your heart? ♪ this man is about to be the llionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. coratulations you e our one millionth customer.

nobody likes to miss out. that's why ally treats all their stomers the same. whether you're the first or the milonth. your bank doesn't think you're special anymore, you need an ally. ally bank. your money needs an ally.

>> a fox business alert for you now, the food network announced it will not renew polity and contract i missed the controversy surrounding the admission of using racial slurs in the past. coming one hour after she posted online the first of two videotaped apologies to try and repair that damage. it all came out as a result of court documents for discrimination lawsuits filed last year by former employee revealing she admitted to using the n-word saying yes, of course, but it has been a very long time. her contract with the network

expires at the end of the month. well, after a two-day stock plunge, stocks are much more stable today moving between small gains and losses, so do you invest with your heart orr% with your head? we asked you on gerriwillis.com. okay, here are some of your e-mails. just discovered your show, keep up the great work and i will continue watching. thank you. and hank from new york says to solve the overdraft fee, don't overdraft. keep a small balance in your check the account and as you write checks, transfer that amount from your savings. pretty simple, he says. david says easiest way to avoid getting the fees on your debit card, going to your bank and tell them to set your account so if you try to use your card and there isn't enougg money to cover the transaction, the transaction is denied.

why don't we just do it that way? we love hearing from you. and finally, you may be breathing a sigh of relief after the dow industrials ended higher tonight. the pain may only be beginning and that is because the yield on the 10-year treasury was up 40 basis points this week, a lot. the biggest rise since 2003, a decade ago. it may well be the bigger issue for most of us consumers. we can sit out the noise on stock gyrations, leave the worries to professional traders. but you and i cannot ignore higher mortgage rates whether you are underwater or eager to buy, it could hurt the economy. one report this weekend individual investors throwing in the towel on 17 billion in bond fund investment.

before you give in, remember the highest ever mortgage rate back in early october of '81. 18.86%. things could be worse. have a great weekend. lou: good evening, everybody, and thank you for being with us. breaking news tonight, federal prosecutors have filed charges against nsa weaker edward snowden. they have charged snowden with espionage, theft and conversion of government property. a jurisdiction with a long history of prosecuting espionage cases must warn the developing story throughout the broadcast. and the president officially nominated this man to replace robert mueller