liz: 2.4%. you have to watch this. tte gdp first quarter 2013. >> i am melissa francis. here is what is money tonight. president obama fighting climate change. but one industry is doing a victory dance and it is not leasing. plus, get behind the wheel of the car of the future. groundbreaking technology making even the worst drivers look good on the road. we get a first-hand sneak peek. and who made money. one of the strangest in recent memory. not sure who it is? we will have the details. even when they say it is not, it

is always about "money." >> ♪ >> today for the sake of our children and the health and safety of all americans, i am directing the epa to put an end to the dumping of carbon pollution and new standards for existing and upcoming powerplants. melissa: it is pretty much over for the american coal industry. the president announced he is using the epa to impose tough new regulations on power plants, those that could end up killing coal. the death of coal could have dire consequences for the u.s. economy at large. more expensive energy and the cost of everything goes up. and that is passed right on cue. here to break it down is john kingston and lisa miller.

lisa, let me start with you. how do you feel about what happened today? you feel like you are under assault? >> today's announcement was a disappointment. but it didn't this seem to be any surprise. we have had every expectation that the administration will launch an attack like this today. we are certainly ready and poised to take on the challenge. the industry has invested over $100 billion over the last 30 years to reduce emissions by 90%. this administration if this administration isn't willing to take those kind of achievements variously, this administration is looking at a legacy of closing down an industry that is important to america. melissa: is what she said fair? >> i think it's fair. it is not a surprise. it was kind of expected since the day the supreme court, about six years ago, simply set the epa could regulate co2 as a pollutant. i think a lot of people who watch the obama administration are wondering what was going to happen. i would say this. but the real issue now, it will

be how fast they can get the exports up and running. because clearly the best market for them is not going to be the u.s. it is going to be in other parts of the world. particularly on the west coast. there was one thing that the obama administration opposed. it was to try to get organizations like the imf to support. so you can see that he already has part of this export issue. melissa: that is a great point. obviously, you know, the environment all around the world, we all share the same error. if we are not on the same page with what we are doing, we are still going to see co2 emissions. how plausible is it that we start exporting coal? we are a natural resource in coal. we start exporting right away? >> we have two your supply here in america.

but let's keep in mind if we turn off coal, we are ceding competitiveness in the global economy. it is disappointing for american business. let's say that. melissa: that's right, you need cheap energy for the manufacturing sector to rebound and consumers to buy cheap goods. but natural gas is providing cheap energy right now. we have seen a boom in natural gas from shale and tracking for the one thing i was thinking is well, it's good for natural gas and natural gas drillers and anyone who depends on that. that's great for natural gas, isn't it? >> probably about half of that is cool. i really wonder if the president would've been able to do this. especially if we hadn't really had a natural gas revolution. but i would say that natural gas

has certainly been the beneficiary of this. this is a great day for natural gas and all the trade associations have come out with this statement and they were very positive. the other thing that is driving us, even if the president hadn't done this, a lot of states have renewable power mandates that they want by 2030. so that was already going to take away from coal in natural gas. but the price of coal and gas have converged a little bit more recently. even though there has been a big switch away as the price of gas fell, we're starting to see the trend reverse is coal gets a little bit more cost competitive. melissa: the u.s. co2 emissions had a 20 year low. that is according to the government's own numbers. it seems like that is not mentioned and no one gets any credit for that. would you say to the natural gas industry, watch out if the

president knocks coal out, natural gas is next on the list. >> that is exactly right. they could be looking over their shoulder. the other piece of this is that the government agency that does look at these numbers and considers this research also has said that because the adjustment is coming, and it's coming this year, more coal consumption will go up in these prices will regulate. that is a great talent here that all of us have something to be concerned about as it relates to regulation. melissa: i would like to point out to you a response from speaker boehner. he said the standard the president said today should lead to speedy approval of the keystone pipeline. it's time to put americans back to work. when you think about that? is that tongue-in-cheek, or is it -- some are saying that his speech today gave him cover. >> i think it was positive. he said it has to be shown that

there is no net increase in carbon emission as a result of the pipeline. if you are under the assumption that they are going to get to this regardless, that essentially could get exported to china or the east coast or where ever. at that point, the carbon footprint is greater because the carbon footprint of the tanker is higher and it is moving around the world. i interpreted that statement today as being positive, but not everyone agrees with me spew and thank you to you both for joining us. it is time for our fuel gauge report. a victory today. oil is no more likely to cause leaks and other types of crude. that is a report of the national research council. critics have alleged that canadian oil increases the risk of pipeline waste.

that is not true. wal-mart is completing solar installation with 10 of its stores in maryland as part of a joint project. the installation will provide five to 20% of each stores electricity needs. in natural gas reaching a new low. mild temperatures will dominate much of the country for the next couple of weeks. that is lowering the outlook for natural gas. it has fallen 80% of the last four sessions. next on "money", investors are dumping bonds like there's no tomorrow. maybe it is a canary in the coal mines for the markets. we will dig to the epicenter. important information that you need to hear. there is more "money" coming up next.

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melissa: aayone with money online is watching the bond market where nerves are rattled. it started last week. with this in mind. with these are the gremlins that we have heard of the beginning

of the financial crisis. a fox news contributor, welcome to both of you. dan, let me start with you. we see the bond market getting sticky and starting to react. are we seeing this? >> yes, i think the bond market is starting to react along with all of the rest of the market and the volatility of the stock market has just been extraordinary. i think the mainstream that i have been looking at is the fact that the moment that the federal reserve even hinted that it was going to withdraw the stimulus, just as happened in europe, the bottom dropped out of the markets. it would which suggests that they haven't been propped up by anything other than the promise of it being on there is nothing real behind it. >> where are you seeing this stickiness.

the market is no longer clearing. >> in an emerging market debt, this includes the tip market. i think that that has been a pretty clear-cut case. keep in mind a lot of the banks and financial institution to make the market, they can be as active as they once were. they can't step up to support these markets. they go down a lot or their. melissa: anthony, what is the logical progression of that. i mean, where does it go from here? how the dominoes fall? >> i think you have to see some signs of stabilization. it is emanating from the treasury market.

a lot of them derive their value from some sort of the street and treasury. when we don't have that kind of stabilization, everything is going to be weaker. those more sensitive includes high yields and as bad as it is in treasury, they will probably fare worse before we get some melissa: another scary thing is that those who should know this better, the largest bond fund in june for the month so far, down 3.56%. that is somebody who has been out there talking up the market. they are always on television, if anyone should be in control of staying one step ahead, they are losing. >> it seems like the rest of us

are going to be in a nervous state of mind. let's face it. you have been operating in a very unusual environment, which is nearly 0% interest rates. it has been there for a long time. i think the real message what is going on is ben bernanke and the federal reserve has to follow through on the idea that they cannot continue buying bonds at this rate. and it is probably time to start talking about this. they must stabilize the markets by returning to a more normal interest rate environment. and that means withdrawing and letting interest rates rise gradually so that these people can adjust to this. >> people at home need to focus on us and need to care about this. you're watching mortgage rates go up. we're going to talk about what it means to the average person. what it means to buyers and

sellers. the real question is does the fed have control. you said that they need to get out and show the market it can be stabilized. can they pull that trick off? >> they have to pull that off. the alternative is not doing it and look at what they had happened when they suggested he try to withdraw. i think that is ben bernanke continues to try to do this, it will adjust as it always does. melissa: will this be a smooth exit or violent? >> i think we have seen the bulk of the violence. melissa: really? while. >> i do think that we have a little bit more downside. i think maybe two and three quarters and a 10 year note yield may end this. but it will take a while to stabilize. some opportunities are emerging. melissa: you are a brave and optimistic man. we will see if you're right. gentleman, thank you so much.

if you are wondering why you have to care about what is happening in the bond market, a lot of people close their ears when they hear this. they think it is boring. it affects you. it affects you like in the housing market. housing could be hit hard by rising interest rates. mortgage rates have jumped nearly an entire percentage point. on 300,000-dollar loan. that is about what is average across the country. the one percentage point adds $173 to every payment every month. payment. could this be the end of the beginning of the housing rebound? bed, welcome to the show. is this making you nervous and housing recovery? >> well, actually this is part of the previous individuals that

were saying that we have to start moving in the direction of normalizing this market. i wrote about three months ago about the fact that the fed was pushing this rate and that was causing house prices to go up fast. we have seen them him going up 10 to 12% for about 15 months. yes, it will raise monthly payments. but it will slow down the house price increases so that the monthly payment doesn't change that much. we can't have a situation where the house prices are going up. the fed is pushing down interest rates. melissa: has a really interesting point and it could take over our viewers. whether you are a buyer or a seller, it probably makes sense to do this now versus six months from now.

so if you are a seller, that is not great. and if you are a buyer, the price will rise in interest rates will rise. does it make sense now versus later? >> houses are a place to live. we should make the decision based upon what your needs are, your family needs, how much does it cost to rent. how much can you afford. not whether house prices will be a faster or slower. melissa: i hear you. we can't time the markets. there is no way i can let you get off with an answer. you have to tell me. if you were sitting there, would you say, you know, i should take this now cannot wait to see what happens in the future? or would you wait?

>> i would take the offer now. certainty is worth something. melissa: yes, absolutely. what do you think will happen with mortgage rates going forward? this is a big concern. honestly they are going. we are wondering how quickly and how violently. >> it is a pretty big move. it could go up a bit more. maybe 1.5%, something around 5%. remember if the fed wasn't keeping interest rates down, but we had market rates for the ten-year, we would probably be looking at mortgage rates around 6%. so if we get to this, i think that that is getting us along the way to where we need to be. that is probably as far as it would go and i think eventually rates will go into 6% and that

could take another eight to 16 months, buu they will eventually go to 6%. melissa: were present during the process? >> every increase of 1% changes the debt to income ratio by about 2%. it will require people to buy a small house, you know, i think that ultimately we will see these prices pull back some. i have looked with where they are going up the fastest, places like california and some other states. those are the places for the last 40 years houses went up 50% in california. the california, riverside, san bernardino, they are posed for booms and busts.

melissa: i think this is your main point. ed, thank you so much for coming on coming up, wouldn't you love someone pick up the tab for your retirement contribution? some are getting that kirk and taxpayers are stuck with the bill. we have details on these revelations plus a dream coming true. i can't even imagine it. we get a firsthand look at groundbreaking technology. do not go anywhere. can you ever have too much "money" or too many cheeseburgers while you're driving?

up up up up up up up.

melissa: whether it is on wall

street or main street, anyone who owns men's warehouse. the face and founder of the country was ousted last week of men's warehouse. the stock climbed more than 5% following the revelation. meanwhile, losing money today, investors at barnes and noble reported lower earnings would revenue from its stores. it will also stop manufacturing in-house. the news hammered the stock with shares rising 17%. also losing money, the federal reserve in new york. carrying a shipment of $93 million in cash. it was destined for the new york fed. when it arrived at jfk airport, $1.2 million. they have a state-of-the-art security system, but it may have been compromised. it is no secret that california

taxpayers are coughing up big bucks to cover the employee pension. that check this out. a new report showing local governments and agencies pushing the envelope. taxpayers picked up the tab for contributions. their pension contributions, to the tune of $221 million, that is the part of the pension that the employee is supposed to pay. that is why this callback. here to weigh in is a former spokesperson and governor, arnold schwarzenegger and aaron mcaleer. this is amazing to me. what am i missing about the name of these contributions, the employee contributions, their pensions, what am i missing? >> well, i don't buy that you are amazed by this. [laughter] >> all sorts of abuses out here in your native state. these abuses that the state employee unions are sneaking into these contracts.

it is really beneficial in the long run. it shines a light on the problem of pension costs. they are crowding out all of these other services and priorities that people in california care about. melissa: you say that i should not be shocked because it's based on everything else. i have to tell you, this one really did catch me off guard. especially because california law requires public workers to contribute a 10% of their gross pay towards their pension. the law requires that. but the unions have been able to negotiate this. how did they even manage that? >> it is possible because we have a one-party rule out here. the public employee unions. we have super majorities in the legislature, every statewide office. it is a rule of the public employee union. they are doing less and less with public record and access and transparency. so this is the type of things that happens when there's no

opposition party in one party's ruling the entire state. melissa: some of the more amazing things that i've read. the bay area rapid transit system in the san francisco area knows about that. they have picked up 100% of the employee pension contribution will 99% of their employees. is this a particularly wealthy transit system. they charge $100 a ride? how can they possibly afford this? >> it is a very affordable system in these abuses re happening. smaller systems like that, blaster the legislature did away with some of these abuses. they admitted that they don't track this stuff. so hopefully this shines a light on some of these abuses. when they talk about why the schools are not performing well in tuition is doubling, the parks are closing, they need to look at these costs. melissa: when everyone sees

this, they think that california california is wacky. does this happen in other parts of the country as well? have you heard about this happening elsewhere? >> i have not heard that happening elsewhere. i think the pension problems that we have are more pronounced . places like rhode island are deep blue state. hopefully we can take this and start fixing it out here. melissa: can we have taxpayers quite cover my car payment insurance payment. [laughter] 's beyond what would i have to do? maybe we can form a union. >> you have any ideas for me? >> i have a great idea. we should do whatever they want. it's a wacky system. i understand why people across the country think that things are just out of control here. probably about $8 billion in

debt. leaders are talking about how we have a balanced budget right now. really helping to illuminate the problems and i hope people take note. melissa: that is the main take away point. we are joking, but the state is a trillion dollars in debt as they are making up these things that they can't afford to do right now. it is amazing to me that 12,000 retired california government workers receive annual pension payments of over $100,000. there a lot of people in our audience tonight that would love to be one of those people whose pension is six figures. thank you so much for coming on. we appreciate it. >> okay, think you. melissa: coming up next, a car that goes from .1 place to the next. a car with a mind of its own. a first look at life from michigan.

will your next chubby like steve jobs? would you like a mark zuckerberg to support you? the author of the best-selling book piles of "money" coming out it's a brand newtart.

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melissa: a forward collision warning when a collision is imminent. it is still the drivvr's job to break. >> trying to make sure that they are paying attention to the road ahead. the driver is driving in the lane. keeping a camera pointed at the road. even gently nudging the car back between the lines. >> if they are going across the lanes, we will warn you that that is about to happen by the electronics in the car.

melissa: the autonomous vehicle is little legs off. but what they have now is technology that reminds the driver that you have a task at hand and right now you have to pay attention while trouble is imminent. melissa: some of the things that i was reading was that the whole more in tune with you and what is going on and that is the idea. >> they are talking a lot about the biofeedback. they do years and years of research out here in the lab. they are developing sensors kind of similar to what you have at the gym. except the bioinformation from your hand. your heart weight gets out of whack. it indicates he might have diabetes if there is an attack that is imminent. but there's a lot of information it takes a long time to hash all of that out. melissa: that is really cool. in the meantime, the stuff you were showing us, i always wondered if it promotes riskier

behavior. so you're more apt to look at your blackberry or whatever. he figured that the car will tell you if you are veering off the road. >> the stats will show that people are already doing it. we found out on the simulator that you give people -- a little bit older people, my age and up -- when we are given a distraction, we will pay attention to the distraction and also pay attention to the road. young people, drivers are just getting out there, they will focus all their attention on the cell phones and just trust the environment. melissa: melissa: coming up next, make sure you are not making the biggest mistakes that other parents are making.

at the end of the day it is all about "money." we went out and asked people a simple question: how old is the oldesterson you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone w's lived well into tir 90s. and th'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 need to enjoy all of these years. ♪

melissa: wouldn't you want your child to be the next mark zuckerberg and support your retirement? i do? we all do. during your kids towards the right subjects in school. here is that fond of fascinating facts. when it comes to math, american students rate below average compared to 33 other industrialized countries in the3 world. these are leisurely type majors other than math and science that people pay. the next guest says that we have a crisis and we need to fix it. welcome to the show, laura. >> thank you. melissa: i have to say that i have a 3-year-old and a six-year-old and we do this at home at night. the whole idea is that everybody

is reading their kiddo bedtime story, but actually you can do a math problem. how did you come up with this idea? why is that a good way to get started? >> actually came out here at home starting years ago when my first child was two years old. we started doing a little math problem after our book at night. we started adding and subtracting and our third child actually came in one day and said he wanted to do the math problems. melissa: it is kind of the perfect time to do it. >> is a great time to do a math problem. what are parents trying to do to get kids on the right foot?

but let's talk about the wrong foot and getting no exposure to math. -hen you get little kids out there, but you don't always develop the math. what are parents doing wrong? >> a lot of parents don't like math and they have kids. unfortunately, that is contagious. but parents like math, that is contagious as well. so making sure that they put math and the fun parts of the day. so kids love to do math when they art doing something else and you teach them math skills one-way. melissa: if you do set early, it goes on. and culturally we think it is funny to continue the matt stigma. so many jobs in the future based on this idea do you have basic math and science and engineering

skills. t-shirts that say i am allergic to algebra. what should you do instead? >> i think it is important not to succumb and buy those things. but it is also how we talk. you never hear educated adults saying that i'm not that good at reading. it is perfectly okay for a really intelligent educated person to say i just can't do math. every time you say that, the kids pick up to that end we don't send those signals. melissa: getting them involved in programs early, i think of it as parents are out there getting their kids involved in music and spanish in this matter. but they don't think about computer programming or math, which is something they could get a job with in the long run. >> if you look at the top educational books, all the abc ones are really fun. they are the ones that did bought. but the ones for matter all workbooks. melissa: that's a great point.

this is a sample problem for the little ones. readers will survive your soul. that is really young. most people don't think about trying to do math with a child that is through salter five years old. you say that these seahorses are each carrying six eggs and how many are they tearing altogether. >> that one was on father's day in honor of greek gods. they talk about how they have the couch and they have the eggs and these are the little kids. depending on how far along they are, it is a great opportunity for the young kids to help out and solve the problem. melissa: and then there is a great illustration and fascinating story. getting involved in the whole idea of seahorses, and they don't even realize that it's math but they are really focusing on. we have a jobs crisis right now. getting everyone on the right

path. think you so much for coming on, laura. the book is called bedtime mathematics. a fun excuse to stay up late. but next on "money", the market is about to crash. a theme that rapper rolls out a $1.7 million car, and it is covered in 24 karat gold. car enthusiasts everywhere are exploding. i guess you can never have too much "money" if you are driving a car. i don't know. we will be right back. [ male announcer ] i've seen incredibhings. otherworldly things.

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melissa: it is time for little fun with "spare change." we are joined by our dream team. other guests might be little insulted if they see that. this golden bugatti. it belongs to rapper florida who spent $1.7 million on the car and then decided to cover it in 24 karat gold. once it is likely a mustache on the mona lisa. it looks pretty fabulous. what happens when you get a door ding? can you imagine? >> these are beautiful cars to begin with. and million dollars. you can get a lot of other cars.

lovely car. florida is not one of my people. a lovely car $.7 million to blow on a gold card, go for it. melissa: why is that, does she come with the car? >> i'm a huge fan of florida, i danced with him one time at a party. melissa: really? is that on youtube somewhere? >> have no problem with people spending money however they wish. he earned it honestly. so many of these rappers go broke, they go bankrupt because they spend their money on stuff like this. melissa: how much has he actually made that he is going to put gold all over a car that

is already $2 million. >> you were grinding with florida. a big difference. melissa: i feel like now you're going to get in trouble. let's move on. from a car to a plane. as the engine explodes on the runway. the plane was getting ready to take off in the uk when the engines inconveniently blew up. have we seen it yet? it may have already happened. think goodness they were not in the air, right? >> something this catastrophic is going to happen, think i'd happened while the plane is on the ground or else this would have caused a catastrophic air crash. >> the planes can fly with one engine. this is why you don't take off from manchester in the uk.

take off from london. things happen. planes to fly with one engine. have you been on a plane when it has struck by lightning? the pilot came on and said we got struck by lightning, don't worry. melissa: now onto one of my favorite topics, thre drago tac. releasing a new flavor. rumors are swirling that it is doritos chile lime flavored chips. what are the only ones i don't like. said to be spicier than nacho cheese and cool ranch versions already available. another bestseller to you? >> i am a cool ranch girl, they will float this and see if it sells, if it does, great, more power to them.

melissa: they have been selling like hotcakes. >> this is a perfect way to switch from coal to natural gas. >> i have been since i was a little girl, i would be so sold on this. melissa: even saltier and more delicious. my food favorite making a comeback, your goals and devils dogs, part of the hostess brand sold during the bankruptcy now it will be back to rival returning twinkie this summer or early fall. this is still fabulous. >> fabulous news they are all coming back. twinkies is the one everybody wants. >> all of these brands are american icons. my favorite, devil dogs. melissa: the snowball is too much.

>> it is great when you have $1 in your pocket and you need something quick. melissa: we will see you back here tomorrow, here comes "the willis report" " >> hello, everyone, i am lori rothman in for gerri willis. tonight on "the willis report," taxpayer-funded drug abuse. millions for dubious sources. and want to take a test drive, but don't want to deal with the salesman. how do you do that? well, we will show you. they are all the rage, cleanse diets. arr they doing you more harm than good? we are watching out you tonight on "the willis report."óomç fraud. story tonight, taxpayer the shock