tv Cavuto FOX Business July 1, 2013 11:00pm-12:01am EDT
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neil: why just tick off americans when you can tick off the world? welcome i am neil cavuto,ive ed snowden some credit. he knows how to alienate frien friends. we might not have to worry, we'll soon be down to no friends, reports we bugged europe union offices including those in washington and u.n. e.u. foreign policy chief demanding urgent clarification, and fnce would say such acts if unconfirmed would be unacceptable. >> then the germans, let's say
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none of this ii going down well. and the fact where we're not denying any of it, is not helping matters any. leavingside whether you think mr. snowden is a hero o a hack, here is what he has wrought, global outrage. no wonder our enemies are loving this. at the rate we're going, we'll have no friends, that is not vladimir putin smiling that is vladimir putin smirking. now we're hearing that ed liked vlad so much, he wants to stay in moscow for good, and vlad is glad to make it happen. what now for us. to kt mcfarland, nick gillespie and john browne, what now? >> ipresident obama said this is a 28-year-old hacker, i'm not
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going to even bothero deal with him, let my under lidges deal with him, he has done harm to the government, and destroyed america's faith in the government. neil: that was suspended some time ago the trust part. >> that is not snowden's fault, this is the american government spying on a people, and lying about it, that destroyed trust, long with watergate. i don't think that snowden should take the wrap for decline in belief in america. >> i am saying the entire administration, but he has managed to get our allies insulted. the dirty secret is, there are no secrets any mor everyone is spying ern, you have to openly admitted it what happens to intelligence communities of our allies ty are not going to
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share stuff with us. neil: is this really like a fox alert, we long suspected that this kind of stuff was going on. maybe som brits are in a snit about it. but should they be? john can you hear me? >> i can. >> i had you en raptured in it all? >> i agree. putin is smirking he is playing a very clever game it is embarrassing when an insider squeals, and it makes news, but this is not news, sing has gone on for centuries, this is a game, every major nation know its and play its. for domestic reasons, people like merck ol merkel has to kica terrific row, she has elections coming up, but the fact is, it does not surprise anyone in the government, this system bar
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embarrassining short-term. but it will not harm anyone, for once i agree with president obama. he will do no damage to america. >> i would take issue from the things that i read about whether or not snowden and llaks have hurt nationalecurity efforts and whaot. i don't think it is as big a problem as it might seem. >> secretary of 78 john kerry said peoplwill die because of this. >> well, you know, they have also said that you know that nsa you know kind of dragnet surveillance was good for 50 cases, now it is 20, they talked about two. i don't think they have a lot of cred billow this but it shows how bad the american security system really is, if snowden can get in, work for a few months and get out with a wunsc bunch f stuff, clearly we're not doing a good job of keeping our secrets, ther is a lot of fake outrage,
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but by the same token there is a demonstrated failu of like keeping your assets in le, if we're talking to the eu.k. about a trans-- the e.u. about a transatlantic trade pack this gives them some leverage. neil: we don't want this get them ticked off more. >> do you see snowden as a harryheroor a hack. >> it is important to know what he revealed from how he revealed it. whistlblowers and heroes do not go to moscow or china or cuba. neil what if they heard about treatment of prior whistle-blowers, life was not easy ? >> except that if he was a real hero, he could have gone to congressional committees, if he likes republicans there are republicans in the house. neil: but he went to china, well
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hong kong. >> we need to separate out snowden as a person, same with assange, nobody's idea of a hero in terms of a personal life, but what they are doing is radically the way that governments and corporations and power players can work. i think it's all to the good, we are living in the end of power as we've understood it for centuries, threw corporate power and political power, these guys are the change agents, we need to keep a focus on what the government is doing to us. >> i agree with nick, a threat to power. but the fact is, it is in every american citizen's interest w know what is goingo in other countries, and their intentions but no inmerican's interest to have their own government spying on them without due cause. there are two big issues, a, agree with nick, this is about power, and power lead is facing a threat on the internet. >> but, i look through my own
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little warped world of wall street, right? if this were jarring us in a threat to us. then we would see it in the markets, right. now the markets have been coming ck, i think a lot is having to do with fact that ben bernanke may not be taking the punch bowl away. >> i think there is a big news story, it gets everyone's blood boiling. the fact is that we are and we have been spying from the beginning of time. people know -- there are no secrets any more. neil: are you surprised, given your background, the degree to which we spy? >> i'm surprised at it the abuse of power. in this sense, yes, i am sure we've -- >> exactly. >> if we had this conversation without irs harassing conservative groups and fbi wiretapping jrnalists and
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without health and human services doing a shake down of medical companies over obamacare, but now we don't have trust, we don't believe anybody >> take obama saying, you know i will have the most tra france m- transparent administration ever, the fact that obama is doing more and lying aboutt. such a hypocrite, you know we keep talking about the you know fisa crts, we need to remember -here that came from it was 30-years ago or 35 yrs ago we learned about -- >> we keep smiling, we settle down for a while, all of the safeguards put in after watergate. and then we ended up using irs as a bully pulpit again. >> i think it will have a major
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effect on internally in america it is quite right to be debated. but as far as business and trade, i don't think it the have any affect, and i think that markets are brushing it off as a nothing, bu internal politics in america there is a lot to be examined with gate engineer, and and -- energy, and i don't see that energy coming from congress myself. neil: nobody is worked up about it. >> what is happening is a steady erosion of trust in the u.s. government, in god we trust. if you get to a point, people say i don't trust anything they say. >> no individuals turns out individual donors, first thing with justice department going after ap reporters, turns out it was a lot more, i just don't believe anyon >> it is eroding it overtime, you won't believe in your government, then why you do you ything to help your government. >> ironically, might be people
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like tea party libertarians and republican like rand paul who'll regenerate belief and confidence in government by actively investigating and uncovering the abuses of power. >> quite right, including an audit of the fed, i find it amaze a private company, can go unaudited. neil: thank youking all very kinall very ch, forgetwhether cg more for their student loans, at is the lobby for all of the at is the lobby for all of the taxpayers who already i want to make things more secure. [ whirring ] [ dog barks ] i want to treat mo dogs. ♪
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supporting college loan programs that get pricier, as a result college tuitions that get pricie so where is the lobby for us guys? tos these guys, hadley. >> our president likes to talk a lot about fairness, i would frame this policy debate in terms of fairness, our current policy is not fair to not only tax payers but others as well. we're rewarding bad behavior by subsidizing student lending, put it in perspective we're returning to a rate we had 4 years ago. neil: back to historical norms, but this is sticker shock circit not? >> iile bad for you know student that has toeal with the loans, a paid mine off about 5 years ago, you know what happened i thought i was done. with having the collectors over my head, i just looked at my
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share of national debt it is bigger than school loa that is what aricans need to realize. which, is there is no free lunch, there are great costs to the big subsidies like the student lone program, there is a good in getting our kids college education, but there has to be a better way than impoverishing us all. neil: you could make a case, the more weelp students with subsidized education, and low rate loins, the more the colleges feel empowered to jack up the college tuiti. i would like to think stop that process tonight issue mighting a good long-term thing. you might have a good point, i think, stepping back, less than a half of a percent of total budgeted ut outlays a year, that is really a small investment if when you think about it. neil: that not my point, what about any help manuftured
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interest rates are manufacring an excuse for colleges to hike their tuitions? >> i think one way to address that, is you tty to divert or focus more kids to maybe going to community colleges for first two years, their tuition is about 33,000 a year. neil: you would not force belie set rates. >> no. >> i applied same to ben bernanke fixing rates in an unnatural way. >> i think it wil happen naturally, my daughter looked at my experience with student loans, i'm still paying them will she got into scholarships, she worked very hard. neil: she your kid, she is a generous. no everyone is so blessed. hadley, i am hope tag my point that -- hoping to my point, colleges will learn there is no free money from washington that
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emboldens you to keep screwing kids, i think if they know in is no more money at the well they increases.his drip, drip of >> right. i say let the individual students, and families decide what is a good investment for some people, we're all individuals,f there is one thing that is true we pay more for things we try toay forking it. neil: we have it mixed up, all i know that my plumber has people, his people have people. that he is doing something right. i do agree you know with this notion. that it is a sticker shock, you double rates on people that are used to raaes low,y could say the same about medicare tax, when it was put back in was it a sticker shock, i get annoyed whether weorce ibly try to fix going that creates a bigger fix?
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>> i mean, in this case, everyone can look at president obama, and i suppose the republicans and democrats on the hill, say this is one of the consensus are not getting a big 10 year budget deal, this is an emergency that students and parents are looking at. and this auto put mo pressure on the president. hi serogates who are blaming republicans for this, that is irresponsible. this is something that could have been fixed in those budget negotiations. neil: but it wasn't, wasn't. >> it was not. the other side that china is about to pass us in correct of intellectual property. we need to be the one pducing the intellectual property,'m concerned about as we try to fix this issue with education, let's not change ourselves and our
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future, i think this is a national issue, it is almost a national security issue. >> you know, when it comes to education, there are some who would argue that we have oversold king. and -- college, my concern that individuals people who pay are the college can no longer hold universities accountable for what they are selling, looking at a generation of young dealts, 50% of unemployment or under. ed. we have a question whether or not to degree is getting bang for the buck is promises about 32% of pple who go to college do not graduate within 6 years. neil: the more i hear you, i hear a future mom say, sorry kido, you or your own, we'll have you back later. >> maybe its hot outside, forget gri and bear it more like grid and bear it that is if
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>> tax to the max, but actually powered by fossil fuel like coal and natural gas, 70% o the grid. preside obama part of his new climate initiative. wants a war on coal that will further tax the grid, then with the new continuing mandates, higher fuel efficiency standard, and subsidy almost $10,000 per electric vehicle, we have electric victims coming on line to the grid that will really max it out, average household increases their electric load 50% when they start using an electric vehicle plug in. the "new york times" has written about this, ts will be a huge burden our grid and maxing out our transformers,in in additiono heat waves like this and restricts on coal. neil:ou know here is where i respectfully disagree, i don't
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think we have to worry about this right now, because the appetite for these cars is not there. you can force fed them up the people's floats, up the credits and allowances, but we're not near, that but you worry with enough incentives we'll foresee the issue, this will be the huge issue. >> the tesla is about 9,000-watts per hour use versus average air-conditioning that is 1500, people say you use a smart grid, you plug it in certain tis of the day, you can mitigate that a little bit. but between fleet sales and subsidies, and mandates and higher fuel economy standards, now continuing with tens of billlons of subsidies to the cars, they will keep increasing, no matter what the consumer choice circumstance they are being force -- choice is, they are forced and discounted. neil: they counter, dang i'm
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administration counters tt is why we're all for infstructure spending and improving not just royds and brings but o grid, your problem is mine as well, it is their solution to fixinghat powe grid is prenting it from relying on very things that are so cost effective. >> yes, and abundant like coal and natural gas. neil: everywhere. >> we're go to start a war on fracking, you have a lot of -- shall we say, environmentalists upset at high-definition tv buzz of power consumption, they get up set, japanese government telling environmental ministers telling citizens to go to bed an hour early to cut dow on emissions and energy use but with electc cars just soaking outoal and naturally gas of our grid tre seems to be no end. it depends on what energy-sucking thing you are, but i would argue if electric
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cars a viable, bring them oour grid shouldd able to handle it if we had a rational energy policy, i find is funny somehow there is a blind spot. neil: did you say the japanese are going to bed an hour earliy. >> their environmental minister is urging home to. neil: we have no idea. >> now -- yes. neil: see this is where my mine mind goes, very good seeing, thank you. >> thank you neil. neil: all right, you eat right, yyu exercise, you do everything you should be doing to stay highly, your reward? a healthy insurance bill that will give y a heart attack. before you even work up a sweat.
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activities you are getting screwed more. what is going on here? this is contrary to common sense? >> well, it is but it rail isn't. because what happened is if you are healthy now you can buy affordable insurance, if you are not part of a group, individual plans, ifick, mos states you cannot buy health insurance, now starting january 1st there will be no more preexisting coitions, so, what is going to happen, is the exchanges, as part of the affordable care act will now allow really sick people that could not afford shurndz because ainsurance, buto are well, are goingo the same level, there is a big loophole we have talked about for last few years, if in is no
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preexistg conditions, and you are healthy, and you are not needing insurance, why buy it, just pay dollars 95 penalty 1 for the year, and wait until you get 6 then buy it. neil: that was a lot of points you made with me, years back. first of all, you were among early ones including the good doctor here who said tha the math did not add up, now we know that reward and risk behavior does not add up. >> well, there is no question that we have added a lot of fees and taxes that raises everyone's expense. now we're bringing a lot of people into the risk pool who are not there before, clear those who are not hlthy, those who are healthy, and young will pay more. this is in the past 3 years it has been a little bittal conversation with republicans saying, premiums would go up, and democrats saying no, we're at point it is going from polical to a arithmetic.
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neil: we upended our entire healthca system. to cover the 10% of those americans most of whom are told don't want in on this low wageworkers who cannot afford this and young, the buttress and support this want us to butt out, and nothing to do wh this. despite effort to promote and win them overthrow advertising a guess on nfl and nba, this is weird. >> well, i mean, that is the problem. insurance is insurance. so, there are all kinds of risk pools, now this affordable care act said there will be guaranteed issue insurance, to hedge their bet they have to raise the memium, because -- premium because they are
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bringing people in, no matter their medical problems, unfortunately the healthy who don't really need iurance, that balance out the risk pool, it is not going to work unless the health people join into the risk pool, that is what i'm worried about. what happens when they pay their $95, instead of $500 every month and wait until something bad happens to them,. neil: i tell you what will happen, the rich pay more or those who have it pay more, taxes go up. and it will have to be more than just the rich to fork over sustaining this? >> this does constitute a massive shift in assets, this is whole subsidy metd they are using, basically shifts wealth from one group to another in this case, it shifting wealth from those who are healthy and
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those who are young to those who are not healthy not quite as young. neil: so they are not going to kill this thing, they will keep promoting this thing. so, short of finding a massive overhaul of it, that is the best we can hope for, doctor? >> well, again, i mean, i know the insurance should not be tied to your job, the exchanges are an attempt to do this, this is only for people that were not able to get insurance as part of a group -- neil: group is growing, right? >> wel the group is growing, but the key is, you have to have an en risk pool, healthy people, mixed in with the sick. most people agree there should not be preexisting conditions, the insurance companies are trying to protect themselves, it is through rring premiums, i have talked with executives, they are wondering who will be ab to afford the products, they will be costly, they need
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>> dick tracy calling hem lock holmes. >> go ahead, tracy. neil: by this fall, apple applied to trademark the term iwatch in japan, which makes me to think this dick tracy is about to make a big global splash and soon, how big a market for talking watches, apple could make it, what do you think, dom? >> look at price of stock for apple.
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it has had a decent fall. neil: a little bit of a bounce back. >> a littleit. really about margins, iphones and ipads, you know a lot of competitivors are coming in cutting off sales forcing app told grease its margins, they have to find a new it product, watch, 60% margin for iustry average. neil: really. >> 60% average margin, if you can get in that market, that is a $6 billion market that could help the bottom line. neil: what about costume watches i get my wife -- she is not watching ? >> roll ex is such, but no. this is a hh margin area. we heard a lot about itv not come through yet,. neil: what do you think gary.
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>> i'm a little worried they are finally hitting the wall, a normal watch is $6% margin, putting in the add ins it may be less, apple better come up with something, there are a couple things at work, number one coolness ftor is down, and the traffic is not there. neil: all right, let's go to issue two, starbucks wants to put pop in its fizz, testing sodas that could bring aounger carve natecaffeinated cash-rich. > i think it is a good move,. neil: they only have so much space. >> but, when you have a -- get near 20,000 stores, you can leverage, that you might as well
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test some things out, if it doesn't work it does not. if it does, a profits. and just realize, a cple years ago starbucks off their logo they took coffee off for ts reason, they want to broaden out a little bit, but coffee still the mainstay going forward. neil: i. >> what do you think? >> i agree, real start to m is mcdonald's, creating a mccafe brand in that represents 4% of their revenue, they take big chunk out of you know their profit, so, what is starbucks do? they have to go back to i think mcdonald's world, and sodas are high margin products. neil: how much are the charging for soda they charge 50 bucks for a cup of coffee. >> they are talking 2r 3 bucks for a cup of soda. neil: really. >> you know custom crafted wh a special label. i think they are going to try to grab a piece o the pie from
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mcdonald's on this one. neil: give them time onhe pie. then china, more news that manufacturing sector is slowing. just as ours is increasing, in china some industries they have ground to a halt. growth estimate to barely growth at all, that could affect the world's other economies are they done? >> i think only thing that surprises me in the data, anybody surprise. if you look at u.s., and europe, and china they are i've other's largest trading partners -- they are each oth's largest trading partners, europe in a recession no shocker. china not stimulating the economy,hey don't want to recreate the problems, what a shocker their earnings their gross domestic numbers are slower, the question is, a revolving door between the 3 economies. neil: i would never believe any
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of numbers i get out of china, they are admitting slower numbers now, a lot worse? >>you are 100% correct. first off, you have a housing bubble there have you stays that have been built by the government, not buildings but actual cities with no peopl in it. that goes toward their gdp, i never trusted baggaged anythingt theirumbers. but i trust what the markets tell, the chinese market have been the ways market forvery the last year that speaks for itself. neil: thank you very much. >> thank you. neil:r rethink chick flick. and start thinking chick flick. a lot more (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading.
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neil: well chicks rule, hunky heroes drool. this much is not. sandra bullock and melissa mccarty made mince meat, channing tat tatum and jamie fo. they proved highest for both actressed but second most watched film o the week behind monsters university. to a leading lady in her own right in this business, entertainment reporter katrina. >> ion't know if i can say this is about women draw to the
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booffice, per se, but these two, they are an amazing comedy duo. these two wom do this effortlessly, this is not a chick flick this is funny. neil: i'm wondering, rid was that men could be, you know hope -- it is very different, this proves, you know, appealing. it restrategyized hlywood or should. >> very much, there is alrea a sequel in the works, befe this hit theaters, they sd this big. neil: who is the audience going to this. >> someone said they were ones -- i male, audience, they wanted to see this film. these two women are funny, you are getting women, you are getting kind of a lot of the younger audience that everyone is going after. as everied by disney pixar success. you ow i think audiences are not looking for that typical
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shoot 'em up blow them up summer blockbusters. neil: i do know enough about the films that i have seen, usually dragging my sons in yos in tow,l super hero movies, with incredible productions, expensive but eye-popping, w various wayso destroy the world, and rescue it and bridge bring it back, they are getting repetitive. >> i thought, where did i see that film before? it is men in plaque all over again -- "men in black" all over again, the same movie degenerated . >> are we decen decenttive z tos like this. >> it gets boring whether the
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same story. we've seen it before, maybe interesting to see i film that costs a lot less to make. making us laugh and engag in a different way from before. neil: do we think we are tired of some male stars in and their soap opera lives off film? >> i don't think that is a sexist question. neil: really, give myself time. >> all right. taing about brad pitt known for his family and a ar abysmall number 5 ad he did, not really so much a movie star, and tom cruise, jumps on the coach, and will smith accused of noxious nepotism. ihink people are just sick of these celebrities being more than just actors.
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neil: there is a build in base fo those kind of movies ? >> course. neil: who is going to see this one? you know now female stars, by the way we leave out so many others, why are they going to be the new future draw? >> you know, i think people can identify with them, they can relate. maybehey do i think of success of brides maids, women a are lie okayny friend my friends we tha. neil: a lot of people like rosie o'donnell they relate to the comedic character. >> right, does not have to be after over the top sci-fi, we ent want to necessarily see everyone fall in love, we want to laugh, see women be funny maybe raunchy neil: do they really like the -- heroess i saw man of steel, it was about 80% guys, i think they
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really thought they were super heroes. >> sure. this is a suspension of one's oon disbelief. i think, maybe this is my sexist comment but saying that a lot of women traditionally or studios think that women like to see that because there is a really hot guy in it, i am sure some are not that interested in more, i am sure some would like toy is brad pitt looking cute and fighting amazo zombies but thers more. neil: i always remember the. katrina thank you. >> thank you, nl normal the tow.neil: remember the town hal, they are back, they are mad
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neil: and you thought tea partiers were only ticked off at irs, you should see when they set their si sights on their ow. they say trade their party and conservativism in general, tea partier lining up prinary primary challenges, do they risk shooting themselves in the foot next year, hadley, were and are we about t to relive history. >> i don't thinkkwe'll see the same level of outrage with immigration reform as with healthcareeform. main reason whole coalition of groups and individuals who identify with right-hand side of politics, conservatives, republican, libertarians, they were all out raged about obamacare, but not with immigration reform. it is more divisive onhe right 92 enough on the right, extreme right, might have been annoyed
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by senator john mccain, and lindsey gram and othersho pported this, to say, atery least we hope you retire, if not woe hope to run someone against new the party. >> i is amazing to me that have you nearly eve democrat vote for this in senate, yet they are focused on one-third of republican senators who supported it, ty need to look at bigger field, the is a debate that goaferz day i goes n washington, a bunch of republicans did vote for this bill, not because they think this is a perfect bill but they know house will produce a much more conservative bill, we could get to a good place on this topic, it would be fabulous, i would just, inourrage the activists, they are so great to have in our party and movement but give this a chance to work. neil: cool it, right. >> what do you think?
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steve? they are in a take mo prisoners mine set. >> i am always in favor of republicans beating up on other republicans, i am in favor of people going out there protesting, i think this right and duty of every american, if they see something they don't like, i'm not in traf or of them -- favor of them protesting the town hall meeting, one few time a year that every american gets a chance to interface one-on-one with your congressman and nators. neil: what is wrong with getting in your congressman a face? >> there is nothing wrong with that but there are other constituents, in their district could and state tt is their one chance, any other timef year to interrupt, and get arrest that is fine, but i don't think they should disrupt the town hall meetings. neil: you know, you are similarly against it after those for iraq war? >> i was, we talked abouthat. neil: se. so, addly, bottom line, i think
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that republicans are on verge of potentially you know dragging defeat from certain vehiclee victory, and i -- from certain victory, i wonder why? >> it is a good point to make to compare the two, there one commonality between health reform, and immigration reform, americans are skeptical of bills that are a thousand pages long, as they should be, i wld encourage republicans, and conservative, and tapper groups as they pro -- tea party groups as they protest this, be specific about what it is you are protesting, otherwise the narrative is that you don't like immigrants, as matt mentioned there is a great way to do immigration rorm, free market way. wehould work toward that and protests are a welcome part of our rights, but, it has to be the right way, and specifpick what you oppose and suprt. neil:oes that mean just go along? >> ni, i would think hav to get
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real, our economy suffer z because of a poor immigration policied on the books, if will take a lot of pages some complications to get it fixed. there is a second thing that conservatives throughout, need to realize, they will never get other pick another conservative just out supreme court, unless we fix the political situation, so that as thage blow% -- anglo percentage drops and asians and hispanics and other immigrants grow we have to welcome them. neil: that means accept anything -- >> no. neil: i know at you are saying, the impression could be that, for fear of losing the latino vote, that they settle for anything, and it is not a given you overwhelmingly lose a latino vote. >> we latinos are watching i am part latino. mitt romney got 27 per of the vote last time,.
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neil: in 00 george bush got more than half. not as if is locked out from republicans ? >> i don't think it is. but i think latinos are watching carefully, how republicans handle this issue, if the tea party is really get afternoon republican incumbents they force the republicans to g to right it will be damaging to the republican party in be 20 plane. neil: you don't think it is going to happen? >> i don't know, at end of day tea party has different elements within it, one is tt they support a free market system, i wouldis freeing market allows me people too become citizens and find a way too contribute to the economy. as long as people want to be peaceful and productive citizen ttey should support. neil: i agree with all of you. next year at this time, it will be an issue. but, for now.
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it is a issue dividing republicans, mainstream, and the extreme. this will be their waterloo. really? we'll see, seeou "money" with melissa francis is next. melissa: here's what is "money" tonight. one of america's biggest cities in gridlock, union workers on strike in san francisco could spread to even more cities, plus her love may not cost a thing but will serenading a tyrant cost j.lo her p? and who made money today. stay tuned to find out even when i say this not not, it is always about money. ♪
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