mcafee. he will be with us tomorrow. >> 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 ke a test drive, but don't want to dealith the salesman. how do you do that? we, we will show you. they are all the rage, cleanse diets. arr they doi you more harm than good? we are watching out you tonight on "the willis report."óomç our top story tonight, taxpayer paid drug abuse and fraud. the shock report shoing

therapies, dietitianand other ofessionals writing millions of drs of prescription drugs without federal authority to do so. medicare ipicking up the tab. with more on this, former policy advisor to the centers for medicaid and medicare serces. this report from the department of health and human services is shocking, w does it happen >> some of these are people licensed in a particular state to prescribe, the pronents of government run health care talk about how cheap it is to administer the program, now we know why. they don't do any utilization review. lori: in other words, there is no oversight. >> there is no oversight. we have thousands of providers to see what is being done. if you look medicare, they don't provide providers to do that. they require documentation if you're ing to cat the system, you are going to fixhe documentation. >> word in this report, a florida massage therist wrote

3700rescriptions for drugs in 2009, hocome that didn't raise any red flags back in 2009? >> it is not that hard to cheat the system if you're willing to break the law. me of these prescriptions are fodangerous drugs that should be prescribed to senior citizezens. ri: do you agree this is taxpayer-funded drug abuse? >>hat is exactly what it is. >> this reportone 2009, four years ler has it compounded? it has to be worse, do you agree? >> we are doing right now to look at these things, more we of focus on the fraud and abuse in the program but this is run out of washiton. this is what ppens when you run vast bureaucracies. lori: these entitlements are so desperate for reform, do you agree medicare, medicaid can be

reformed and prevent criticism from beingart of a big government? >> part of the honest is on the government. the plan have some hands tied behind herack to ssme degree. they will be freed up to go off the waste an abuse but many cases these are generic drugs, cheap drugs so really nobody looking at what is happening with the cheaprugs. lizlori: intesting. social secity is providing sability benefits to people, any of whom denied benefits on the state level. speaker that is right. when youet denied at a local level for cial security disability benefs appealing to administer the law judge, 1500 in the country, and in many cases they will affirm the benefits, 200 judges from t benefits and 75% of cases. lawyers who make a case of going befo these judges.

lori: there is no follow-up. numerous news reports showing people who have back injuries playing basketball. >> supposed to be review of e program to make sure people still have disability and preserve their benits. people qualify who can keep them unemployed f at least a year. in many cas iis resolved but there is no follow-up di. lori: thank you for sharing your expertise with us. yesterday we told you about anotheher case of waste, fraud d abusat the irs the agency said more than $46 million in tax refds to a sleesingle address. a growing list of scandals the irs has faced and today we're getting more information on that last one, mishandling of government credit cards. rkers use agency credit cards to b 28 expensive bottles of

wine for 2000 luncheon. there used to buy romance nove novels, diet pills and baby clothes. two credit cards used to buy pornography that the employees had reported those cards stolen. alalso tay, we are finally seeing some relief on wall street, stocks back in the green writiig the most in two weeksr thmarket has been on a downward spiral as of late after the fed hinted at possible pullback of the record bond buying program. all that stimulus in the marketplace. all that turmo rking the world's ggest hedge fund fi. not weathering the market conditions. sending its retns deep in the red. martin, lcome to you. >> thank you, great to be here. >> how does it drop eight and .5% so far this year when the

broad market is up 8%? >> as far as i can tell a couple of things. they used borrowed money, leverage in order to trynd amplified returns, and the bond market got pretty beat up last month. that hasn't been as widely reported as the stock market pullback. the fund was positioned to take advantage of risg inflation or falling inflation as well as a rising econo or a falling economy and the fact is ation in the economy has flatlined, that has probably been a headwind for them as well. lori: is there such a thing as an all weather fund in this climate, if you will? >> i guess cash, i don'tnow. bridgewater s a wonderful track record long-term, i am sure they are very smart over there, if they think they can pull it off long-term, who am i

to take that? >> you are a professional in this industry and for average investors there is a lot of confusio we have haduge swings in e stock market. kind of scary, what is your advice to average investors for navigating all of this? >> it is always scary. beindful of the fact that remember less than two years ago looks like the world was coming to an end for ocks. since then stock prices have rallied about 40%, so we have taken to giant stepsorward, it would not be usual for uso take a step backward rightow and e a correction. my advice to individual instors is just to know what you own and be patient. one of the things we kw of long-term investing is patience more important than intelligence and ultimate success. lori: interesting pushing yield

and interest rates a little higher. is this good news for people pushing retirement age? or is it an economic overall headwi >> interest tesare jusso low, at the end of the day we'v gone from 1.8 to 2.1, not exactly earthhattering unle your investment strategy is dependent upon cheap money. we advise they make sure that what they own is not healy dependent upon the price of money staying cheap. we don't know if it is this month or next year or five years from now, but at some point things will normalize and interest rates will go back to normal and if that were to happen the five-year bond, 10-year bond instead of being 2% will be five or 6%. lori: you're not advising investors dial back the risk profile then? >> i think the impornt thing is for clients, dividual inveors to determineo come

to terms with wh the time horizon is and if their time horizon is tly long-term, wh they need to do is know what they own and buying great businesses at good prices and good businesses atreat prices is still a good long-term strategy. lori: cked the fund managers. blackrockannocing dropping funds because they simply weren't performing. they backed the simple question of the bridgewater all weather fund not performing, whais going on here? do you think the do-it-yourself approach is betthan perhaps some of these big, high profile money managers? >> thais such a wide question, and i think a lot of people they should use an advisor a probably should be in a collective investment program whether it be a mutual fund or separate manag accounts, that st of thing. what is happening atlac blackck, they are the world's largest asset manager.

it is twice as big asset wise as the number two competitor. but in the active management of business, they haven't been quite so successful. people have to remember blackrock is a publicly traded company so the guys running the siness are not only beholden to theirrcustomers, but also the shareholders, so they needed to improve that business and the way they dided to improve the business was to cut costs. lori: any advice on the fees? can you go straight index fund because of the low profile? that is a huge benefit. >> in the absence of any value, in the absence of fling like you are with someone who can navigate you through the storms wellfees are important, and fees are alwaysmportant but at the end of the day it is really results. lori: martin, thank you so much, appreciate your time and expertise.

>> my pleasure. lori: hwants to hear what you think, so here is our question tonight. are you smarter than a portfolio @anager? log on to gerwillis.c. i will share the results with you at the end of night's show. a lot more still to come this hour including the debate over ethanol in cars. it is heating up again thanks to the supreme court. and president obama fired up over a call saying it is time to putimits on power plant pollution. president obama: it is not right, it is not safe, and it needs to stop. lori: but is it really more time for him to give up his war on coal??% details and reaction after this break. with the spark cash card

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lori: president obama's new war on the coal industry. they run around congress president ordered the epa to

createirst ever limits on existing power plants cuing carbon pollution. our next guest says the war on call translates into a hits to your bottom line. welcome to you. >> thanks for having me. lori: so, coal our biggest source of energy in this couny. how much impact will househos feel if the president starts putting it out othe equation? >> we have modeled what will happen if we start cutti coal out and buy 2020 see unemployment going up by 500,000 above what we would have without this plan in place. typical family of four would lose $1000 per year for the next 15 years so it is really costly. there is a lot of collateral damage when you have a war on coal. lori: the president today outlined his push toward green energy, as you know, and how it may offset some of the pressures

created on the economy by cutting back coal. take a listen, and i will get your reaction. speak to the plan i am announcing is to double our energy from wind and sun. today i'm drinking interior dertment to greenlight enough private newable energy capacity on public land to power up more than 6 mlion homes by 2020. we have the look after our future and grow the economy and create jobs. we can do all of that as long as we don'tear the future. lori: do yougree? >> not at all. we can double wind and solar, but a small base. when you get rid of co, three fourths will be gone by 2030, 30% cut in total electricity provided. it'll make up 1.4 of those 30%. natural gas away from the

mafacturing which has really hit them hard. lori: the ministration had to know the statistics. why did he decide to kill coal? speak of tis from the environmental left. they wted to go after it for a long time, ignore the fact the coal industrand electrical power industry has spent billions of dollars cleaning up coal. air quality has improved, the six main toxic pollunts have been reduced anywhere from 36 to 96% since 1980. we have made a lot of progre, spend a lot of money and to paint e industry as an industry that sn't done anhing about pollution is not right. they're talking about co2 it will be really expensive and have almost no impacon global warming on top of that. lori: you mentioned the billions of dollars to clean upts

emissions, so is there a true economic and environmental impact? what is the pollution profile? >> like i said, we have se mica's oxide and so on, they havell come down pretty substantially. carbon dioxide people have to understand is non-toxic, does not smell, a very small percentage so you see pictures sometimes on tv when they talk about carbon dioxide. carbon dioxide is what the plants breathe. we will cut some. it will not get to its target. that is not enough to reach the target, but even if we could reach those targets, and almost intercept will changen world temperature even if you believe them by 2050 you would not be le to tell. by 2100 maybe a couple tenths of a degree, moderation i if the hh sensitivity numbers are correct.

lori: in our push for energy independence in this country, why n't there room for all energy sources? coal, all renewabs, all of these things, an in a perfect world, maybe i am o pollyanna, why preferred one over the oth outside of environmental issues? >> we don't, but the market does because the renewables are so deep a mac expensive. we have 500 years worth of coal aat current usage rate, we're finding more and more natural gas, we don't have to go to wind and sar for energy dendence. lori: thank you very much, david. speaking of that, we want to bring in the latest developments we have been following. the present weighing in on the keystone pipeline duringhe common speech sayi it should

only be approved if it is not worth then carbon pollution. the president still insists he will not me the decision to approve the project but the state department is in charge he find out if the jce your coworks are on is doing more good than harm. and should you put ethan in your car? the debate continues after the break.

lori: the supreme court clearing the path for gas, t will

lori: ethanol getting the green light, supreme court refusing to block the sale of e15. despite criticisms from the auto and refined ring industries bid associate editor, great to see you. do you agree with the preme court's decision that keeps e15 on the market. why is that? >> e15 an ethanol substitutes are the only alternatives right now in this country. ey have not been able to sell enou alternative fuels of e85. it has been approved for use in all cars since built in 2011. lori: a lot of the cars bore

2011. aaa saymore testing has to be done because it could really screw up the engine in cars built before that time. >> ethanol is corrosive. they have addressed that from the standpoint in the materials used in the engine and the fuel system, but they are still fusing to warranty cars from 2007-2010. cars before that are little more questionable. the government has studied these cars and the oil industry and the auto indusy have different inions, they've done their own studies, they say their studies are flawed becse the cars have been prone to break anyway. it is actually marginal. the country from an economic standpoint to avoid exporting half a trillion dollars per yr

overseas to bring in more oil. lori: doesn't have a better or worse mileage per hour? >> ethanol in general is a littll worse than gasoline. reduce that the factor of 15% of it. we expect it to have an affect of at most 1 mile per gallon. lori: marginal environmental benefit, less fuel miles per hour and what about overall car performance. has toe something in it for the driver. >> car performance is about the same. the engine could be tuned to take advantage of the ethanol th a higher octane than gasoline so if automakers were able to plan for thi a assume all feel would be higher percentage of ethanol, they could take advantage of that and tweak a lile bit more performance and even downsize the engines a little bitoake

up for some of the fuel economy. lori: currently avaed the mac available in multiple states. how is it being received? >> people in those states are buying the fuel and are terested in it, but it is not getting much traction outside the midwest so f. the pus at the gas stations, the gas stations have to install one of the pumps to pump the hier blend of ethal. lori: are we going to be in a gas market with regular ade gasoline? what is it going to look like? are we going thave choices as drivers? >> potentially. you already have choices of higher blends of ethanol in some of these midwestern states. it is not going much beyond

that. more refining of ethanol, this kind oo the question what it would take to get the economically going but one of the things to get that working is have a larger market for it. lori: it is peak driving season, price has to be a factor. cheaper? >> my understand is it is a little bit cheaper. lori: thanks. appreciate your analysis. let's get a look at stories you are clicking o tonightn foxbusiness.com. good economic news sending stocks and the green after weeks of worrying about the fed, traders see more optimistic. reacting to a sharp rise, more than 12% jump in he pres in april from year ago. a 2.5% increase in april from march.

biggest month over month gain since 2000. all cities except detroit saw a home prices riie. men's warehouse shedding light on george zimme he had difficulty accepting the ct they were a public company with a board of directors. investors seem to be happy about the news. more than double from a year ago thanks to the e-book readers. it ill stop making th nook colr readers. still ahead, find out how you can test drive a new car without having to go to the showroom and deal with a car salesman. xt, all the rage right now, but we will ask if they really work and if they're really all that good for you.

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lori: have you ever thought about test driving new model cars but hate dealing with the dealership? one startup can ease the pain of car buying from your doorstep our next guest to explain a new game-changer. ceo and founder. welcome to you, tell me how it works. >> thank y for having me. the first of its kind at home test drivvng and buying service. users go online, they picked the car they are interested in, auto expert shows up at the time and place of their choosing, ey do an exterior walk around curbside or in the driveway, explain the interior of the car, the customer takes the experts on a 15-mile test drive that last about 20 to 30 minutes. lori: you are n dropping off the car and leaving uil the next day, somebody's monitoring.

>> if a customer has a trade-in we can do an oveight test drive. $19 per car. lori: how do you makmoney? do you get paid by the dealer? >> yes, we do. a flat fee on the shopper's side and a flat fee on e dealer's side. that is portant because our employs are not incentivid sell aar. we had a mother looking at a honda versus a toyota. or honda versus a bmw may be incentivized to sell the higher priced car but because we have a flat fee, there is no commission, no pressure on the customer. lori: there is so much information, iis almost less painful some would say to go to the car dealership becausehe salesman know you have e latest and moscompetitive pricing information on vario car mols. is that an issue for y, a challenge of had to deal with? >> that is one piece of what we

do, help with pricing. but really our belief is there is much more, the price is the single most important factor. lori: i wonder if dealing with salespeople is as uncomfortable as it was five years ago because of all the available price information. not as much haggli. >> the average consumer spends 11 and a half hours a car dealership when they buy their car, and you're sort of doing that from the comfort of your own home. i've been price is getting more transparent and a good thing for the industry. i do tnk the experience is getting better at the deerip. lori: how do you plannto expand? are you available all over the country? >> we are currely just avlable in seattle only. lookinat a number of markets with dense populations in urban areas anwe get e-mails and

calls from dlers and customers all the time sying please come to atlanta to buy a car, come to atlanta to help usut so we're definitely looking at expansion plans but at thetime we're focused on seattle. lori: are you taking any more investors? >> sure. lori: in terms of your expansion plan, are you going out? >> it is very capital intensive concept, thers marketing, operations, a very large market opportunity. so in terms of whether we will be raising more capil, can say for certain. we are fortunate to get a solid group of investors with solid skill set. some come from consumer startups but down the road we may be looking to raise more money.

lori: i'm curiousl curious the t popular, most in demand cars people looking to comfort from their very own curbside. speaker that ihighly classified information. no, it is not at all. the most ppular brands are ford, subaruhonda,oyota. a lot of exes and audie. lori: have you ever had a call for high-end lury for ari, something ridiculous that you could not provide? >> tesla is pretty popular here, which is awesome because it is an excellent company. so we're in thprocess of talking to various companies wi delivering their cars in the range right now, but the most premium car we deliver is around porsche. lori: i hope he starts delivering to new york soon >> we are common. we hope to be there soon.

lori: the ceo of tread, at home r service. good luck to you. summer is a good time to take a baseball gambut before you head out to the ballpark, we will tell you which one gives you the most ng for your buck. with the spark miles card from capital one, bjorn earns unlimited rewas for his small business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjor] just put it on my spark card. [ garth y settle for less? ahh, oh! [ garth ] great businesses derve limited reward here's your wake up call. [ male announcer ] get the spark business card from capital one anearn unlimited rewards.

choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? lori: are baseball'sgógógógógógó

figung o what they want to see. lori: like a ticket website? >> stub hub is a perfect example. the avage price on the resale rket, the teams winng percentage, and the quality of theopponents. so basically a team like the pittsburgh pirates did really well. average price $15 on the resale market, very competitive this year almost first in his division and played a good schedule so fs are getting a lot for their money basically. lori: if you are a true root root root for e home team are you more or less willing to pay that price and should youo through the secondary pricing o go dectly through the team? >> it depends, i would say go through both options. look at what kind of deal you can get at the club. also think about concession prices. some stadiums are doing great deals on concessions. we talked about the $1 $10 beer.

you can factor that in as well.. lori: the next hot dogsshameful versus the dodgedogs i grew up on in los angeles so there is something to be said about that. charles, great to have you, thank you so much. we will be rig back with my two cents more and the answer to our question of the day. are you smarter than a portfolio are you smarter than a portfolio integer?

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>> a $70 billionortfolio managed by bridgewer associates is held by many hedge funds a advertised as a fund that will survive in a latile market b it is a big loser in recent weeks. are you smarter than this portfolio manager? 41 percent said yes. 59 percent said no.

u are notmarter. log on for our online question every day. >> the income-tax suld be abolished it is intrusive and overly powerful for a democratic society and too cumbersome to minister. the devil should collect taxes in the marketplace to take death year of abuse of power away. >> was time to abolish the s. >> it is time to gt rid of the irs. go to the flat tax or national sales tax somethin that everybody ca understand th feat can get rid of the bureaucracy. we love to hear from you. i i have had a blast. thank you for joining us. do not forget to dpr the show. have a wonderful evening.

lou: good evening. a triple digit rebound in the stock market todaynd the latest report on the state of our economy t reason for exuberance and a celebration of you never would have guessedatching and listening to president obama is a speech out of climate change today. dow jones industrial average rising sharply up to out of three days after investors decided the federal reserve was ending quantative easing prematurely. sure enough and at dow jones industrial average dropped more than 500 points between wedsday and thursd