mcafee this. tte gdp first uarer 2013. >> i am melissa francis. here is what is money tonight. president obama fighting climate chae. but one industry is doing a victory dance and it is not leasing. plus, get bend the wheel of the car of the future. groundbreaking technology making even the worst drivers look good on the road. we geta first-hand sneak peek. and who made money. one of the strangest in recent memory. not sure w 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 allamericans, i am directing the epa to put an end to the dumping of carbon pollution and new standards for existi 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. ecomy 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 everyexpectati that the administration will launch an attack like this today. we are certainly ready and poised to take on the challenge. theustry 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 tha is important to aerica. melissa: is at she said fair? >> i think it's fair. it is not a surprise. it was kind of expected since thday the supreme court, about six years ago, simply set the epa could regulate co2 as a pollutant. i think lot of pple who watch the obama administration are wondering what was goi to happen. i would say this. but the real issue now, itwill

be how fast they canet the exports up and running. because clearly the est market for them is not going toe the u.s. it igoing to be n other par of the world. particularly on the west coast. there was one thing that the obama administration opposed. it was to try to get organizations ke the imf o support. so you can see that he already has part of this export ssue. melissa: tht is a great point. obviously, you know, the environment all around the world, we all shre the same error. if we are not on same page with whawe are doing, we are still going to see co2 emissions. how plausible is it that we start exporting coal? we are a nauralresource n al. we start exporting rightway? >> 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 touy che goods. but natural gas is providing cheap ener right now. we have seen a boom in natural gas from shale and tracking for the one thing i was thinng is well, it's good for natural gas and natural gas drille and anyone who depends on that. that'sreat for natural gas, isn't it? >> probably about half of that is ol. i really wonder if the president would've beeable to do this. especially if we hadn't really had a natural gas revolution. but i would say that natural gas

has rtainly been the beneficiary of this. this is a great day for natural s and all the trade associations have come out with this statement and they were very pitive. 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 wanby 2030. so that ws already oing to take away from coal in natural gas. but the price of coal and gas haveonverged a little bit more recently. even tugh 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 industrywatch out if the

president knocks coal out, natural gas is next on the list. >> that is exactly right. they could be oking over their shoulder. the other piee 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 gulate. thats 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 pipelin 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 o 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 eer. at that oint, the carbon footprint is greater because the carbon footprint of the anker is higher and it is moving around the world. i interpreted that statement today 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 victy today. oil is no more likely to cause leaks and other types of crude. that is a report ofhe national research council. critics have alleged that canadian oil increases the risk of pipeline waste.

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

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

of the financial crisis. a fox news contributor, wcome 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 o 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, st as happened in europe, the bottom dropppped out of the markets. it would which suggeststhat 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 marke is no longer clearing. >> in an emergingarket debt, this includes the tip market. i think that that has been a pretty clear-cut case. keepn mind a lot of the banks and financial institution to make the market, they can be as tive as they once were. they can't step up to support these markets. they go down a lot or their. melissa: anthony, what isthe logical progression of that. i mean, whe does it go from here? how thdominoes fall? >> i think you have to e som signs of stabilization. it is emanating fro the

treasury market. a lot of them derive their value from some sort o the street and easury. when we don't have that kind of stabilization, everything is going be weaker. those more sesitive 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 ose who should know this bett, 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 teevision, if anyone should be in control of staying one step ahed, they are losng. >> it seems like the rest of us

are going toe in a nervous state 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 ing on is ben bernanke and the federal serve has to follow through on the idea that they cannot continue buying bonds at th rate. and it is probabl time to start taing 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 mortgagrates 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 themarket it can be stabilized. can they pl that trick off? >> they have to pull that off. the alternate 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 downsi. i think maybe two and three quarters and a 10 year note yield may end this. but it will take a while to stabize. me opportunities are emerging. melissa: you are a brave and optimistic man. we will see if you're right. gentleman, thank you so uch.

if y are wondering why you have to care about what is happening in the bond market, a lot of people close their ears when thehear this. they think it iboring. 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 int. 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 bound? bed, welcome to the show. is this maki you nervouand housing recovery? >> well, actually this is part of the pevious indiduals that

were saying that whave 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 rais monthly payments. but it will slow down the house price increases so tt 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 interes 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 eat. and if you are a buyer, the price will rise in interest rates will rise. does it make sese now versus later? >> houses e a place to live. we should make the decision based uon what your eeds 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 ican let you get off with an answer. you have to tell me. if you were sitting there, would you say,ou know, i should take this n cannot wait to see what happens in the fure? 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 ging forward? this is a big concern. honely they are going. we are wonderi how quickly and how violently. >> it is a pretty big move. it could go up a bit mre. maybe 1.5%, something around 5%. remember if the fed wasn't keeping interest rates down, but we had market tes r the ten-year, we would probably be oking 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 andi thin eventually rates will go ito 6% and that

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

melissa: i think this is your main point. ed, thank you so much for coming on coming up, wouldn't you love someone pickp the tab for your retirement contribution? some are getting that kirk and taxpayers are stucwith the bill. we have detail 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 anywhe. can you ever hae too much "money" or to manyrgers while ye driving?

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 lasweek 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 ock 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 securityystem, but it may have been compromised. it is no secret that californ

taxpayers are ughing up big bucks to cover the employee pension. that check this out. a new report showingocal 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 amazinto me. what am i missing about the name of these ontributions, the employee contritions, their pensions, what am i missing? >> well, i don't buy that you are amazed by this. [laughter] >> all sorts of abuses out here inour native state. these abuses that the state employee unions are sneaking into these contracts.

it is really beneficial in te 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. melia: 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 larequir 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 possibl because we have a one-party rule out here. the public employee unions. we have super majorities in the leslature, every statewide office. it is a rule of the public employee union. they are doing less nd less with public record and access and tranency. so thiis the type of things that happens when there's no

opposition party in one party's ruling the entire state. melissa: some of t more amazing things that i've ead. the bay area rapidtransit system in the san francisco area knows about that. they have picked up100% of th employee pension contrution 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, aster 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 ell in tuition is doubling, the parkare closing, they need to look at these costs. melissa: when everyone see

this, they think that california california is cky. does this haen in other parts of the country as well? have you heard about this haening 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. pefully 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 th thing are ju out of control here. probably about $8 billion in

debt. leaders are talking about how we have a baland budget rig now. really helping to luminate the problems a i hope people take note. meliss that is the main take away point. we are joking, but the state a trillion dollars in debt as they are making up these things that they can't afford o do right now. it is amazing to me that 12,000 retired california government rkers receive annual pension payments of over $100,000. there a lot f 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

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

melia: 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 righnow you have to pay atteion while trouble is imminent. melissa: some of the things at i was reading was that the whole more in tune with you and what is going on and that is he 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 ou have at the gym. except he bioinformation from your hand. your heart wght 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:hat is really cool. the meantime, the stuff you we showing us, i always ndered if itromotes riskier

behavior. so you're more apt to look at your blackberry or whatever. he figured that thcar 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 attentioto the distraction and also pay attention to the road. young people, drivers e just getting out ere, they will focus all their attention on the cell phones and justrust the environment. melissa: melissa: coming up 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."

melissa: wouldn't you want your child to be the next mark zuckerberg and support your tirement? i do? we all do. during your kids towards the right subjects in school. here is that fond of fascinati 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 scien that people pay. the next guest says that we have a crisis an we need to fix it. welcome to the show, laura. >> thank you. meliss i have to sayhat 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 tis id? why is that a good way to get started? >> actually came out here at home srting 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 tryin to do to get kidsn the right foot

but let's talk about the wrong foot and getting no exsure 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 hae kids. unfortunatel that is contagious. but parents like math, that is contagious as wel. so making sure that they put math and the fun parts of the day. so kds 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 educatedlts saying that i'm not that good at reading. it is perfectly okay for a really intelligent eduted rson to say i just can't do math. every time you say tht, the kids pick up to that end we don't send those signals. melissa: getting them volved 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 th in the long run. >> if you look at the top educational books, all the abc ones are really fun. they a 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 littleones. 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 t talk about howy have the uch and theyhave he 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 b they are really focusing on. we have a jobs crisis right now. getting everyone on the right

path. think you so much for comingon, 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. caenthusiasts everywhere are explodg. i guess you c never have too much "money" if you are driving a car. i don't know. we will be right back. i want to make things more secure.

[ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪ can help you do what you do... even better. no child is a lost cause. because a stable loving family can help any child succeed. i don't ink i'm a lost cause. i'm just a kid. ifou agree, find outow you can help. at youth villages.org

melissa: it is time for little fun with "spare change." we are joined by our dream team. otheguests might be little insulted if they see that. this golden bugatti. it belongs to rapper florida who spent $1.7 million on the car anthen decided to cover it in 24 karat gold. once it is likely a stache on the mona lisa. it looks pretty fabulous. what happens when you get a door ding? can you imagin >> 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 f of florida, i danced with him one time at a party. melissa: really? is that on youtube somewhere? >> have no problem with people spenng money however they wish. he earned it honestly. so many of these rappers go bre, they go bankrupt because th 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 wererinding with florida. a big difference. meliss 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. e plane was getting ready to take offin the uk when the ennes inconveniently blew up. have we seen it yet? itit 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 ion the ground or ee 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 worry. melissa: now onto one of my favorite topics, thre drago tac. releasina new flavor. rumors are swirling that it is doritos chile lime flavored ips. 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, greatmore 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 favori making a comeback, youroals and devils dogs, part of the hostess band 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. twkies 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, the following is a paid advertisement for stvista entertainment and time life's music collectiono. ♪ chances are 'cause i wear a silly grin ♪ there are artists we'll always remember... ♪ mona lisa, mona lisa ♪ menave named you there are beautil songs, words and memories that will always touch our hearts. ♪ it's impossible ♪ to tell theun to leave the sky ♪ ♪ it's just impossible this is the musiof your life.