18.6%. hey, things could be worse. thas my two cents more. that's all fr tonight's willis report. have a gret >> who do you trust from the leader you are supposed to trust may be can't he trusted? president obama: when it comes to telephone calls nobody's listening to your telephone calls. that is not for this program is about. charle tonight the proof the government is listening in and that's exactly what the nsa program is all about. welcome, everybody, i'm charles payne in for nei cavuto. the documts show the nsa is listening in on phone calls and collecting e-mails from ordinary americans and worse yet it is holding onto these recordings for five years. reason magazine says it is tough to trust the governnt saying

one thing and doing another. it seems like every day some new news comes out that just totally belies what we hear from the president. >> absolutely. we are not listening to phone calls isn't actually the original answer to the original question. the original question is can you listen to america's phone calls. he was asked again, it was do u know the phone calls. they say that is not something weo. it is not something we are for. everybody seems to be dodging the fact this is something they are capable of and something they do. the documents intthe guardian, basically what they said was occasionally nsa analysts listen to american phe calls and they don't just, they pick up a conversation, th listen to americans, they

don't just stop listening when they pick up an american conversation. the protocol says listen to the conversation as long as you need to to determine if it is important. the data is stiil collected, t phone call is still collected and held for five years. charles: everyone can agree a lot of phone calls coming into my house from yemen or the mountains of afghanistan i should be a target. maybe you want to delve a little deeper into what i am doing but if i call my cousin a couple of times in the phone call is picked up, ere should be a distinction, it shouldn't be so hard to understand americans wa safety and we car about this but there should be a line in the sand as well. >> to people who say it shouldn't matter to you or you don't care, there are a couple of obvious good responses. the federal governmen in congress have been adding an new crime per week to the code for the last several decades. there is a chance you are a

criminal. charles: that is a stat i have never heard before. >> we got the house over criminalization committee looking at rolling back federal law. basically said at a hearing last week on average because we now have approximately 4500 laws in the federal code that on average the congress has been adding about a law per week or a crime per we forhe last several decades. when you think about all the possibilities for someone to commit a crime about any crimal intent you should be nervous about thgovernment having access to your private communications. on the other hand, if you don't care about listening to yo phone calls, is there anything you care about them seeing? i have shades on my window, lock on my front door. charles: some people value privacy justecause they value privacy, not because they are trying to hide anything. what do you make of the pr effort this week, 50 terrorist

plots have been foiled sie 11, do you think that has made a dent, doesn't mitigate the real headlines of what has happened? >> i have seen some of those claims dunked by conservatives and tech advocates by people all over the place, and i think there's another distinction to be made, could any of these events been avoided without tapping americans? there is a good argument they could have been. a lot are thwarted like everyday crimes are thwarted byood police work. ithat is not require violating the fourth amendment or pushing or stretching or even breaking the boundaries of establisd federal law. charles: first of all you are fantastic, we appreciate it. i did not know new laws are giving new taxes a run for their money. >> they are neck a neck. charles: i appreciated, thank you for the news.

meanwhile millions are right about their privacy, president obama meeting with the privacy board to discuss the nsa scandal, but at this, meeting with them in private. the secrecy this administration does not fit with the army. it is getting worse by the day. >> president obama is doing the same thing he did in benghazi. i am going to get to the bottom of it. in doing that, what he hopes to do is preempt any gitimate investigation and to co-opt the press and do saying he is a good fellow, he cares about us, he knows how important it is so we ought to stand back and let him do his work. the fact of the matter is he is very skillful at public relations, and think he has a serious lack of respect for the rights of the american citizen, couple ttat with gtesque sense

of how much power should b vested in government whether it tax laws or invading our privacy. i have been fighting these issues for a long time, and there was an explosion initiative in the government after 9/11 when they were ae to couple their desire to snoop more into our lives with the question how much privacy should we give up for security. the factct othe matter is one of the things we fht for against people like al qaeda ithe protection of our privacy rights. we should give up nothing on th. make them do diligent police work be it charles: that is a fanttic point. we give up our rights, what are we fighting for inhe first place. you mentioned the public relations aspect of this. maybe this time it is not working. the polls have started to

waiver, someing occasionally the mainstream media even picks up on. i dot know that this will fade away ever so easily. >> first of all, charles, cap to understand they wrote the song the great pretender, that is what we have in the white house now. he is pretending to care, pretending to do something about it, but the fact of the matter is when they went after members of the press he attacked the brotherhood, and all the sudden spending the last six months swooning over this guy said wait a minute, he is after us. and they have gotten serious about it. charles: president obama the candidate was against a whole lot of this stuff, hhas taken the same things yo he didn lik and added steroids to them, would he be able to call out pele like you who may be in the pastor for this saying you are just against me because i am

a democrat, president obama if president bush was in office, you would be okay with all of this. >> that is not true at all. years i was in congress, bute this president i lieve feels he has a right to direct an administration that gets away with what they persecuted nixon for talking abou doing. john f. kennedy gogot away with watching the irs. the fact of the matter is it is not republican or democrat, it is if we as american citizens have the right to not fear our government coul. charles: dick arm, we thank you for your service and thank you for being on the show tonight,e appreciate it. the nsa is not the only one listening in on your private stuff. every lawyer in america want to take a peek.

and then, burning bridges with ll street? mayb not. taki a punch bowl away could be just what the market needed.

chars: that top-secret nsa data could soon be making a not so top-secret appearance in court rooms. a florida lawyer requesting phone records from the secretive agency claiming they will exonerate the client for murder charges. the government refusing to hand over that data to fox news lal analyst and the attorney on whether this means private information will become public information. this is kind of scary stuff. >> how necessary, theman's life is in the balance. either way, murder charges, it will risk all oo the liberty. i have to get this kind of inrmation, if it is yours it can be done in cera, by motion. probably because of all the media intert surrounding the fact that had been a subpoena to verizon, that is why the lawyers said verizon actuay gets rid of the records within a limited

period of time, maybe nsa has it. speaker turn out verizon had destroyed their records slay said i heard about this proam and the maybe keeping these records longer than verizon and guess what, he was right. the point is this will have to be some fairness and wishing and mercedes is right. if somebody could be exonered and there is a phone record, that will give way. in general kind to get these records the court procedure and have the same national securities, i don't think people will be so scessful automatically. >> thi happens once, it could happen again over and over, the more the super private stuff starts to find itself in the courtroom with all of these different measures to talk about, different security parameters it could be anywhere. >> the courts have a lot of discretion because the doj will

come forward and say we are not going to release these records as natiinal security but they can say what are we doing here? we have to balance the rights of the government vsus the rights of the individual wh significant charges against him. charles: can this judge in this case order the nsa to turn over records? >> yes, but i like your thinking. you have to be very careful hereve the government a fair opportunity is a national security is involve the judge can look at information in a particular case privately in camera, kind of a difficult term. the judge reviews it privately and perhaps call the attorneys in privately. charles: you can't make the fedel government hand the stuff over. >> the judge had a lot of discretion depending on it might not even be appealable because discretion the judge has on a case-by-case bas.

yes, lot of privacy issues that may be at risk talking privacy versus liberty, i think he is exactly right. talking marital disputes, i fell on a sidewalk, it is not going to happen. when it comes iminal. charles: so we have a distinction here. capital cases may be we start to let this stuff in,nything less than that,t, don't even ask. >> the judges will follow, wait a second, t's be careful here. if an isolated case somebody liberty is at stake, absolutely. charles: it is murder, somebody's life is at stake here, just another blow to this program that we were to it is algorithms, we don't do anything, just watched the algorithm in the computer, we

don't knowho they are, they are faceless, nameless and yet it feels chip by chip by chip, guys, but it is not such innocuoutype of deal. there isome real civil liberties. >> it fits broad parameters. 9/11 is still very fresh in our minds. that is when evething changed. the government said we have to step forward, be more aggressive, do a broad sweep because that ihow we will be ahead of the terrace. i guess that, but you have to balance that against it. >> you'r you are right, th commd argue in congress how bad it may be, and all of sudden i get a trump card, we prevented 50 attacks. and th you don't have it. charles: i made the comment it is can to an electronic version of stop and frisk but we are also specs.

it inot like they're being selective about this. what the records of every single customer from verizon. we want google, aol, all of you to hand over all the records and give us access to all of it. to your point in a case like this hopefully they are being very unique, but it could open up another can of worms with a very disturbing program at the stands already. >> the court will be very careful what it grants and what they don't. charles: let's hope so. sten, i don't want anyone to go to jail for murder, but golly, this program is a gift that never sto giving. have a safe trip this weekend. facebook founder mark zuckerberg iselling immigration reform but critics say he i

charles: the facebook ceo is facing a ton of criticism. mark zuckerberg at the head of a group of 100 tech titans pushing congress for immigration reform. same in a looser immigration rules we can get more skilled immigran to come to this country. these folks are trying to help themselves instead of really fixing the problem. explain. >> these companies are thinking out themselves, not necessarily for the solution for the country. wthey are looking at an increase which in the current senate bil takes it to 115,000. this gives them an opportunity to from an expansive pool of not only american workers business case for an workers' this helps them be more competitive in tes of bringing people into their companies that can give them innovative ideas that n

help them in access to the companie but the embassy group is ring a very different message to conservatives saying this is a conservative plan that the senate is proposing and as we know the conservatives are literally, except r bill o'reilly, rolling their eyes saying this is not a conserrave plan, you have to toughen up on border security. charles: your boys, are they trying to help save the entire planet? >> i am failing to see what the ideological issue is. i don't know what is conservative about an immigration plan although i do understand what we're talkg about. tually the issue over high skilled immigrants has been on the table for years, silicon valley for years has said it has trouble hiring the number of skilled people of phd at once, it has wanted the ability to hire more, it has never been

able to do that because washington on both parties has said we can't really get to your questionntil we solve this larger issue of immigration policy whathese companies is doing is quite appropriate. of course they are acting in their self-interest. that is what any shareholder would want to do, toct in their self-interest. they are not trying to save the world by hiring morephd's. charles: a lot of people say he is trying to have it both ways. >> some udies suggest 40% of the fortune 500 companies are created that way. apple, google, oracle, cgate, ibm, home depot, eing all treated children of immigrants or immigrants. a better economic multiplier effectith a loosening up of

the visa program because instead of government spending you have companies created by entrepreneurs in fact one out of four for every job tread in the tech industry, for more bs are created so it is a great multiplier effect. charles: ao-brainer to allow more smart pple into the country. >> it has been bureaucratic for way too long. >> i agree with that. if you look at the congressman's bill in the house, they have this version where they would allow for more graduates, increase to 155,000, more than what we see in the senate bill. this is good it allows for greater competitio and also so that the companies are able to pick amongst qualified woers. so i thk at this point high

school workers is something we need in our country, and it is helpful. charles: do we hold the high skilled workers coming in as hostage for the rest of the bill? you said you didn't understand the ideology but it is clearly politics or we would have had immigration bill a long time ago. what do you ma of that somehow it is being hung in the balance until everything else is figured out? >> you are right. as i have said many times, democracy isenerally a good thing, but extremely uglyso to make the observationhat one part of what we'reryg to accomplish is being tied to another partf what we're trying to accomplish is nothing earth shattering, that is just the way it is. to marriott to this other part of the legislation. when i said i don't understand how this is conservative or liberal, if you listen to what the program is trying to accomplish, there is nothing

coervative or liberal about . i don't think there's anything conservative about the republican opposiiion to the immigration bill as it stands, they are just against immigrants. charles: you have the last word. >> that is outrageous to say republicans are anti-immigrt. >> people against the bill seem to be >> they want to make sure the border is secure first. we don't want to see wha happened in 1986. >> you won't find one american against secure borders. >> ended up with an influx of illegal america. it has become with border security and modernization of the thesis system. it is outrageous. >> i don't think it is outrageous, you won't find anybody who disagrees with the statement. charles: talked about all the

great companies created in this country because immigrants, these people you are talking about don't like immigrants, they are the sons and daughters of immigrants, why would it not like immigrants? >> great point. charles: i will give you the last point. >> stop being so liberal on it. charles: we have 2 million jobs going begging, we need albert einstein of th world to come to this country and we need border security. it was fantastic, really appreciate it, have a great weekend. lawmakers are saying they should t the heave, not just republicans. both parties joining forces and that could force eric holder out.

charles: attorney general eric cole are holding his job, for now. but maybe not for long. six in six republicans a accounttng coffee attorney general's resignation and 7 democrats waiting to hold them in contempt. the attorney general is running out of suppt and running out of time. chris. >> that is a true fact. the situation with the attorney neral right now is that he is much detested on the right but has become quite inconvenient on

the left for democrats he is an ever present reminder of some of the things the liberal base dislikes t most particularly overaggressi tactics in dealing with reporters and dealing with leaks. there are things in theast, the fast and furious most notably but when it gets to things like the associated press and overbroad subpoena for associated press records and james rosen e-mail accounts an phone records, that's when democrats starts to get a little queasy and theonger he is therend republicans can continue to demand his dparture the more uncomfortable democrats will become. charles: president obama must realize he has become such an extraordinarily lightning rod every time his name comes up in the press is always in a negative manner. >> there is that, but remember this, it is a complicated thing for the president, president obama doesn't have very many people who have en around and have mucwashingttn

perience. eric holder is an old hand in shington dating back to a key role in the obama administratioo. he knows his way around this town, he has a lot of friends on the inside. the other thing that is important is just as eric holr may discomfort some on the left and what he did with the department of justice and the porter records, he is also a hero too many the left for his efforts to try to try accuse terrorts for his very gressive civil rights unit at the agencyso the president will pay a price especially th doesn't sound like it is on good terms. charles: to talk about his experience but also a personal relationship. can we say that eric holder, he president obama's boy, does that play a role also?

>> i don't know what level of friendship they ve, but he has been described as the president's conscious. sort of conscientious liberal inside the administration because again the president doesn't have a lot of people who know how the system works but are also ideologically peer as holder is. a conscious, the lodestar for as what it ought toook like. charles: chris, if this does happen, if we started out talking 66 republicans and counting, 17 democrats, would it happ before the midterm elections? >> certain the democrats would hope so. republicans self-intert we would hope holder continues to be found in contempt and is a distraction for an administration that has enty of problems on its hands. i suspect the timing of this will come may be in august, maybe a little ter butou

wait for a quiet moment in the attorney general decides he will pursue for other interest. the problem then becomes who is confirmable by the united states senate to replace him, that will be a tough ne. charles: had to spend more time with the family. it has been a rough couple of years he had think lot, really appriate it. soon you can text, suite, e-mail cavuto while driving. could bdriving the auto industry off a cliff. and the brawn now ready t serve up a big win for the white hohouse. really. find o how the pre

charles: on the longest day of the year it is time for an extra long blitz. welcome to theummer solstice edition of "the blitz." we have some real hot issues. issue number one, you think

recalls are bad, now wait until the next generation ofars. volvo the latt to build a car that parks itself. so, with a ton of recalls this montalone, how badly would all get? >> i never thought i would say thisn a million years, but how smart are the cars going to get? the imagine the police reports? i wasn't driving, my car did it. i don't know where this is going to go, this will be like the law of unintded consequences. recalls will go up. the tort system will come under fire and an indirect impact on earnings the first time a cars find liable for an accident the driver did not cause. charles: will the have the car testify at the trial? all of these smart devices, i am getting dumber as the world is getting smarter. >> i'm disappointed, i grew up watching t jetson. i thought it would have a flying

car by now. i will be very disappointed when i get cut off a parking lot by somebody, they get the parking lot fore me, i want to road rage at them and they are not there. this is a recipe for recalls, but so what, part of the automotive business. charles: good for the chip companies. alec baldwin, listen up. it turns out you were kied off the flight for nothing. for years passengers have been punished for not turning off the devices durg takeoff, now the faa says there is no proof in flight gadgets pose a ri. so why the rush to judgment? >>

what they are struggling with his catching something that will change the way we live. i spent a few more billion to be taken off that cap. charle you said it would be the jetson's time by now. i am not impressed by any of these guys now. a little feature here or there,

they had to stop and blow us away. >> what are they going to do, come up with a chip you put in your brain and you don't even have a device?e? all of the thnologicalceó improvements you will see from here will be incremental. this one takes aittle bit better picture than that one. this one has this function a ttle better than that function. it is a device, a commodity now and samsung is basically getting to the point it is beating apple in finding out it is beating itself because the competition is gotten so tough these are basically commodities and you guys are right unless they come up with new technology, will be due. will i wait overnight like a grateful dead groupie to get the next iphone? i don't think so. >> the next slogan will be so good even the nsa can listen to -@your chip. charles: the less executive pay them more than half of last year

as a company continues to report bad earnings. can another compy learned something from this? actually connecting pay to performance. >> what a concept. interesting thing to me about this is it is abo time as far as i'm concerned. you ask the guy who owns the gas station, coffee shop, lawyer, doctor, you don't sell come you don't eat, you don't eat, you don't feed your family. it is taking the executive to task for this. >> i noticed this was a taiwanese company, not an american company so that speaks volumes. they lost half their pay and still light years ahead of what the average guy in taiwan makes. there is obviously room to cut and there is room to cut even more. pay for performance, that is what they always say on the upside, where is the performance? charles: they could have been

candid in singapore for missing the numbers. i can tell you that right now. >>hey would have a car to drive them home afterward. charles: you have to lay down in it. it is interestg this week we saw the guy from men's warehouse get dumped, we could go the woman at lulemon get dumped, it feels like in america maybe they are not cutting pay but there is more accountabity coming on. >> you just mentioned to ceos who did very well. george zimmer has done fantastically and the ceo of lululemon has done well. we were just talking about recalls in the automotive instry. it was not a rean to step down. what bothers me arehe bad ceos are the ones getting fired. charles: i know you wanted to say something. >> i am right there with you. the bad ceos are not getting

fired. the good ceos are actually getting canned. something is wrong with that equation. charles: see you guys later. all right, and nba star, oh my. every day something crazy ccmes out about the health ca law. now the need basketball s

charles: while lebron is lebrating, you should be worrying. things are getting weird and desperate for the health care law. he detailshe government wants the nba to help sell it. and felons to operate it.

accepting cvicted felons given access tyour confidential health information. she is appalled, the people with records, so many people with records who have access to your record. it is just crazy stuff. >> what the program wi do is give federal money to these navigators helping people sign up for obamacare, health insurance and these people are then going to have access to your social security numbers, access to your income report, and the rebate is dangerous dangerous is because the heah and human services department set the standards so lo to become a navigator, a convicted felon can becomene. these people will have access to all of your personal information. charles: y you know, michelle, i remember when they aounced the program and you talk about transparency, it seems like a get out the voteort of thing. they go to your home, we'ltell you about the program, a

platinum, gold, silver, bronze and you should register to vote while i here. they wil be paid top dollar to do this. >> oh, yeah. this will lead to identity theft, fraud, and really we should be intimate in programs that have safeguards that protect people's privacy but the concern right now for the obama administration isn't about how to implement the obamacare law -@as good as possible. the number one concern for them is doing pr for obamacare. that is why they're trying to team up trying to get some basketba playerso sell obama cares we might have lebron james as an obamacare spokesperson. charles: let's talk about that. lebron is not cheap. >> the government doesn't have an allowance. they havtons of money they can spend on lebron james. charles: how did they come up with the nba, not the nhl? >> am not sure.

maybe obama is a fan. i don't knowhere they came up with it but the idea we will now inject polits into sports, i feel like spts is the only institution where there isn't this partisanshi now we will have players speaking on behf of obamacare, such a partisan law. i think it is unfair. charles: i agree with you. at least sorts inot like hollywood, for me a whole bunch of hypocrites who come out all the time, zero idea about but don't do it to our sports stars. leave these guys alone, let them duke it out the field or the basketball court and let us enjoy it without thinking about the health care law. >> exactly. if they team up with theba, that is what is going toappen. the only institution there isn't partisan politics and this politicization in the industry and what they ought to be focusing right now is on the

implementation of obamacare. it hasn't even been implemented and we see small business owners freezing hiring, they are not hiring as many people and their kicking people out, they are scared of obamacare. charles: how ironic would have e been busily maki $80 million per year to promote a program that will see a whole lotta lotf people see their weekly hours worth go from 40 down to 29 so they don't get hit with the obamacare penalties. >> exactly. it will be awful if they do this. charles: michelle kelly have always been great with ts. >> thank you. charles: what i told you the biggest threats to this summer is not zombies taking over, it is really been, who is finally rolling over and the market could

charles: the first day of summer and for wall street could be a bummer. wind to wind down the seamless program sending stocks diving big-ti liz macdonald says anding the support is actually a good thing. we brought her back anyway. at omissions he also. what you mea >> listen, if we stayed even longer in this we would have a long bumpy winter. even worse than what they were feing now. i think the artificial stimulus is bad for the markets, you see in certain currenci to my duties very junk level corporate bonds. not everybody's boat so great and deserves to be floated. a lot of assets were recittd to levels we should not have been and noback to the basics, back to fundamentals, back to solid corporate earnings. charles: take the medicine now even though it is painful, a lot

less painful than later. >> exactly. >> i feel it is attachment parenting is what i call it. so dependent on the parent it cat let go we saw this inhe past couple of days where in fact they were thinking the feds were too optimistic so they are getting very optimistic and the effect on the stock market in the end we have to ask ourselves is this economy ready. therthey see bernanke stepping k saying it will not happen immediately buit is going tt happen. it has the invesestors very ncned. charles: and economy bumping along at 2% per year, is it worth it? >> we shouldot lose sight of the fact b bernanke, is reflected the most basic level the economy is improving. were not facing the crisis we have faced for so many years no

reacting to what the meanis of these things are, but i choose to see it as the cup half full, getting the worst behind us. which is very encouraging news. charles: at them, what do you make the idea of the stock market should come down hard and fast what is supposedly good news. ryone who is in the market has to choose what it is the are interested in as an investor please send i am an investor. i don't care what happens today or yesterday with my personal investmentn the way ipproach the market, that is somebody else's problem. those people i a not saying they'rr using poor judgment or acting irrationally, i choose to understand that the long-term is

looking pretty good and the market coming down hard is not my concern today. charleles: more to your point te fed is not going to stop this stuff overnight and when they do they will taper. it may not be 85 billion per month, that i still a time bomb making it larger. >> they could restart it again, they could restart a i have done itwi before buying the bonds again. charles: kind of like you tell your kid you can have this but if they throw a temper tantrum u give it to them anyway. coaxing them into not getting so whiny abouall of this >> to have got to let go of the pacifier. we're also having to have a couple of factors. china's growth is slowing down and have a look at what is going on in the worlan in the national

monetary fund tapering off over to crease. this will have impacts. >> that is a great point. the question the wall street wrestles with his has the stock market gotten ahead of the recovery and i would say this, on ealuation basis by certain measures stocks are still historically cheap compared to what they were ba in '93 even back to 1994. charles: at them >> deste what it lks like the fed concern is not to op up the stock market, that may be the result of what the fed does. it is to ensure the safety of th economy. if you want to bring it back to the child, to make sure the child is safe, right? that is the primary concern. the economy is getting better, in theory the stock market will be okay and i think liz makes a

very valipot. the market is getting ahead o itself or miss analyzing the recovery. the recover is solid. chars:'s stance with the fed is trying to do and have always tried to do is kick off the virtuous cycle. grading an illusion they a much better, your house is worth more, this makes people go out and shop, the shopkeeper hires more people and they in turn have a job now and spend and the next shopkeeper hires someone now we have this virtuous cycle, positive cycle and it sms to matter wt ben bernanke tries to do it does not click, it has not clicked in yet. >> in fact it has clicked. we are in a period of ecomic growth, we can debate the level, it is not satisfactory and so on. the hope is when you do all thesthings and there are other forms ofmulus other than the

kind we are discussing, the economy takes on a life of its own. we can debate if we're in a situation like that. charles: isn't it contradictory to sayhe fed has to pump in money, but the economy is doing well? >> slow economic growth. letting go of the dependency they have on the government in terms of t era of easy money. when you lk at for example st. louis reserve federal reserve president who came out today sayingen bernanke's comments were premature and inappropriately timed, there is something to be said that it causes such chaos in the stock market. charles: i am inclined to agree with elizabeth macdonald in the sense american corporations are doing well, muchetter overseas robbing the bottom line but the federal reserve t us in something of a bind taking on

too much risk and i for one would be vy happy when they pull the plug on all of this stuff. absolutely fantastic, appreciate your have a great weekend. lou: good evening, everybody, and thanyou for being with us. breaking news tonight, federal prosecutors have filed charges against ns weaker edward snowden. they have arged snowden with espionage, theft and conversion of goverent property. a jurisdiction with a long story of prosecuting espionage cases must warthe developing ory throughout the broadcast. and the president officially nominated this m to replace robert mueller