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. ♪

melissa: boy, you think you had a tough commute today, commuters in san francisco expected to face the largest traffic jam since 1997 today. two of the biggest unis went on strike haltintrain service r the first time in 13 years. derailing half a million writers. the fifth-larges rail system, so what other cities could be paralyzed by unions? is yours one of them? with me now, transportation expert and author, labor policy analyst. gentlemen, thank you both for coming on the show. let me start with you, was interested in drilli down right away on what their demands were. they want a 5% increase in pay evy year for the next three years, which may or may not sound like a lotf money to people out there, but if you look awhat everyone else is making private iustrorkers in 2013 saw thr salaries

increased by 1.7%, less than 2%. state and local govement workers across the country so 1% increase, so why do these folks think they can turn aa entire city upside down because they want so much more? >> the reason is because they have the power to turn the city upside down. the average worker in the metro system makes $80,000 per year in cash pay, not $50,000 in year for benefits. average composition of $130,000. they want a 15% increase on cash wages or they will shut the city down. the city said look, we can't afford it, so that is what ey're doing. commuters are stuck in traffic. they have the powe to shut down the transit system unless they get their way, and that is what they are using. melissa: th the show is called "money" and wewant evyone to get as much money as ty can, but do they realize they are trying to get 5% per year from

the people who are making may be a 1% increase per year or ls or nothing who are unemployed? those are the people who are paying for this larger increase for the public transportation workers. >> that is absolutely correct. it is ironic when you consider the bay area has 6% on average across various cities unemployment rate at least as far as i can calculate 250,000 unemployed, and that is using sort of small counting process the government uses these days not counting people who have given up. a lot of unemployepeoplea lot of who ahead seen their wages stagnate or have taken jobs that earned less than before t recession. to say we need 15% and we need 15% because we have the power to disrupt people's commutes is pretty brave.

lissa: especially when they're demanding it from folks are not seeing the pay rate increase themselv. they make the point we have the power because they can paralyze the transportation, it strikes me and our viewers at this could happen watching this example folks at work in new york on mass transit or in boston or in d.c. chicago, where people are very pendent on public transportation, could this happen elsewhere, and where else do they have a lot of leverage? >> it did happen in new york around christmas time. the transit union went on strike for several days, causing millions of dollars in economic damage. in the private sector if workers at general motors on strike,

a lot of us we can buy cars from other companies. if the unions go on strike it is not just affecting them and the company, it affecting the entire society. melissa: i can hear the union folks in the audience said that is why we are unionized and that is why thank god we do have power to do something about this and maybe we don't have power in other industries and that is a shame. how do you respond to that? >> we have wages above average for the region and we want more, we certainly wouldn't have that if we didn't have a union if they had to compete for those jobs a lot of people would take those jobs for more reasonable salary level than they are asking for. they are using the fact that we have this monopoly power. they can hold people over a barrel to get the money out of

our pockets and into theirs. melissa: i saw so many interviews with folks traveling three hours in each direction, two hours depending on how the traffic is, basically spending the whole day's wages getting in because of the problem, it is crazy, thank you to both of you for coming on. >> thank you. melissa: anybody with outstanding student loan debt starting now you could p $2600 per year since congress could not reach a deal, the rates have doubled overnight. were those fates good for students to begin with? mike has more. >> congress is not here to address it, so the students will wait to see how is all plays out. as a bipartisan senate plan, independent leading studt loans to the financial markets

rather than having congress separate. >> it is about policy, it is about what is good for the country, not what is good for either party and if you can game someone to make them look bad to elevate yourself, so what you have is a group of people with varied interest saying to let. let's stop this and start doing something that helps the country. >> among the concerns on the student loan issues if they fluctuate from year year. a large group of democrats back of a plan extending current rates forwo years and some of them would like a one-year extension. one of the key players says they could figure it out soon. >> i'm not so certain we can't have a good bipartisan agreement on ts in the context of the higher education act. we are not that far apart.

>> experts say cooling off, little time apart with lawmakers back in their home districts may help the matter. >> the broader point is in some ys leading the right expired uld actually be a good thing that it brings people back to the negotiating table. once they see this will hit them in their pocketbook it tends to get people back in a compromised mood. >> the access to aid has made students spend mo than they need to, many don't finish and have a pile of debt. more than 40% failed to complete their degree within six years and prices have skyrocketed. a 13% bump that more expensive private schoo. melissa: that is what people don't reale is how much have gone up as a result of the access to funds it is a tough problem to solve, thank you very much. more bad news r bonds, but before you to note, did you know

a reco $80 billion has bee pulled out of bonds since june, twice the amount that rafe exit in 2008 at the height of the financial crisis. does that mean you're about to lose big money? with pronounced money manager, president of the delmont a project. it has been interesting to say the least to watch everybody run r the exit and it has had some impact across the line. we have seen $80 billion run for the door and in some cases talking about citibank in particular, they have not let redemptions go through, they stopped people from getting their money back because they have reached this threshold that lookike panic. do you see that getting worse? >> it is interesting. talk about yelling fire in a crowded theater. this is it the worst kept

secrets i've seen in my entire career. they believe the rate has nowhere to go but up. whenever i see there in universal agreement, i get worried because i think it will not pan out. melissa: you don't think the rate will go up? >> how do you knnw the vision is not crowded by the past 40 years? melissa: we're already seeing it. we're seeing some big moves. folks like jamie dimon saying this is going to come to a violent and, it has to happen, rates have to normalize. it is normal to think the bike will wobble before he can ride off into the sunset. >> i agree, but how much of our vision for the future is slaughtered by the past? high above inflation yield, how

to ignore the view of the future is not crowded by that? ample precedents for the rate from 1933 to 1948 we had a big boom, rates were at 1% or below for the short-term treasury for 16 years consecutively. how do we know we are not ing a situation like that? melissa: lets say people are not persuaded and still feeling somewhat panicky. when you see people running the exit fro the etf and the likes. by having so much money in these funds they all trade in the same direction because that is what they are for, it exacerbates the up-and-down and makes the volatility even more. all the sudden to these moves get more violent by virtue of the number of people who arell

trading in the same direction? they are still panicking. could the etf situation makes this even worse, and is that some of what we are seeing with the $80 billion pull out of the last month? >> it is possible. they did not want to be the last guy caught with holding theag. the situation with it, they provide great access printer asset classes wiih liquidity throughout the day. mutual funds could only get one time per day liidity. we have extremely driven costs down on transition cost and management fees to all-time lows. tax efficiency that rivals irs. melissa: that all makes sense until citigroup says you can't

have your moy back. interesting discussion, we're out of time. melissa: as if california residents didn't get taxed enough. the average g tax nationwide is $0.49 per glon, still too high in my opinion. and the power grid operator for residents cut back on power use. don't use your air conditioner, how about that. power prices at five-year highs. plus the shutdown of a critical nuclear reactor is only exacerbating the problems. wait until winter to use your ac, it will be fine. concerns of massive protests in egypt and e future of the government helping to drive the

rally. all right, next on "moy," maybe one of the biggest pr campaigns of all time. the white house is using everyone to promote obamacare. we have the details on high-profile recruiting. can't you just rent out your home for one night if you wanted to? all of those short-term sites could be in for a rude awakening. it could eliminate lots of your travel. coming up.

melissa: whether this on wall street or main street, anybody who owns zynga. it scored a major queue today. the head of entertainment products at microft. the current ceos are to handle over the strings.

we will see. investors clearly happy with the news, soaring more than 13%. david einhorn, in the offshore gold fund, his gold fund has lost 20% of the value this year. chris paul is single-handedly revise the franchise bng rewarded with a five-year $137 million contract. that is s why is smiling. i would be smiling even bigger than that. i mes deciding what to do with health care, president is hoping they are because the white house is recruiting professionally long with librarians and stents to sell you obamacare.

hard to believe it has gotten to this point. jim. >> that it's right, they have launched a full-court press seeking help from any and any one to promote the health care law. they agreed to help the ministration inform people about the options. listen. >> libraries are where everyone goes to ask questions and get answers. >> libraries have become the hub for people who want information about the affordable care act. >> also looking to get sports leagues like nhl and madeley baseball to join the campaign, but that went nowhere. they're better off focusing on team loyalties rather than political loyalties with the new lot remaining so unpopular. >> does not like saying g to get 60 minutes of exercise every d

da wearing pink for breast cancer, this is a highly charged political subject and i think everybody needs to stay in their lane and the nhl agreed that was the right idea. >> the nfl medically they would not be promoting the health care law saying we currently have no plans to engage in this area and have had no contact with the administration about the law's implementation. major league baseball and the national hockey league says white house first scheduled etings with them and then canceled them. the obama administration trying to make the social media skills spending a million dollars in los angeles to get young people to help sign up the friends and families. >> too little is known about the changes, the fear is only the sick will pay to join the exchange without young, healthy people to foot the bill. and all costs will furer skyrocket, they will find exchange is so costly that the administration is drafting to

pitch obamacare. good grief. >> the rules in the law mean young people have to spend a lot more on insurance than they do now, and if they don't sign up thinsured population will be older and sicker, obamacare will be much more expensive. melissa: it all hinges on them, but they have no incentive to get involved. thank you so much. it is crazy. turning to travel as a base cutting down on travel costs, the growg popularity of rental websites may be working again them. renting somebody else's home or apartment to make a lot of sense while saving you a few, but did you know offering up your home for rent to be against the law. david lee miller has the latest. >> the business of providing short-term rentals is a

$24 billion per year industry and growing thanks to the polarity of the websites you mentioned encouraging anybody with a room or an entire house to advertise availability. some cities have restrictions requiring things like permits and out right prohibition. afterew york city resident rented out his manhattan apartment for three days, soon discovered he had violated sta law with initial fine of $40,000. >> i flipped out, ere was a few days, more than a few days, some weeks i was not sleeping, was stressed, i'd never been in this kind of situation. >> he is still fighting the violation. his legal fees are being paid by the website whe he advertised his apartment. the company says new york law is unfair and empathizes it is not illegal.

ththey cautioned potential customers to check local laws. as advocacy group says sht-term rentals are good with the overall economy, but they say damage to property value, unrelated security and safety as well as unfair competition. >> obviously hols a losing millions of dollars in revenue because of this cottage industry of short-term rentals that has developed over the last sevvral years. >> by most metrics is ear it brings internal benefits to communities resembling to work with anyone who is concerned, creating fair and reasonable rules that benefits all stakeholders. >> one state wants to make it easier for short-term rents even passing legislation prenting local governments from imposing new restrictions. attake, florida tourism is the nuer one industry.

liz: more government in our bedroom, just what we need, thank you so much for that report. amazon and appleunquestionably the two titans of tech, but morphing into the biggest bullies before our eyes crushing everything in their way. stick around, plus frightening images out of egypt shows tahrir square swarming with protesters. and the army gives president morsi a chilling message. do you ever have too much money?

♪ melissa: apple and amazon may be making the top grade with their product, but they may be this schoolyard bullies of the tech

world, and here is why. barnes and noble announce they're no longer makng their conduct public. it sounds a lot like what apple did so the web o s a few years ago. so that next casualty might be the blackberry is struggling to compete with the iphone reporting sales numbers so lousy this bel 30%. are there any companies that stand a chance against apple and amazon? here to weigh in, chairman and editor and analyst, fortune's editor at large and a fox news contributor. let me start with you. it seems like what these guys do , somebody comes up with a great technology. they work out the kinks, get people excited and then swooped in and just sortf either make the technology better or bully the guy. i wrong? >> part of it is they establish a mket an reap the rewards

which means deploying capitol where other companies have the same opportunity. pandora comes up with radio service. the other side of it, isn't this great. there's a certain fatigue about some of this stuff. the way people just go with coca-cola or pepsi. even if you like it. melissa: i feel like you cannot compete with the ecosystem the both of

everyone else of the market and then have the pricing power. as the consumer i may or may not end up with the best product. i definitely in the but the highest prices. >> you may have to choose between prices and features because they're is a movement in asia and the emerging markets to incredibly low price cell phones. the negative views. so you have t home market for smart phones that might cost

$100 before subsidies. you might decide to make fun going for price there are a hundred options or other funds i could get. melissa: what i wonder is to is the next victim. i'm thinking of netflix. it looks like the same movie that we ve seen so many times, whether it's blackberry or paul. >> i'll tell you. melissa: here comes amazon. apple is sitting here. they're both going to gang up. right now a lot of people love netflix. they recreate their business. it's pretty fantastic. the bullies are coming for them. >> i think netflix is certainly going to be under pressure from amazon in particular which appears to be copying their strategy. netflix as its own strategy which is to commission expensive, exclusive content. autos you who the next victim is. it's fairly obvious. apple is not the leading subscription music service.

apple is no longer the leading smart phone maker by market share. varioumanufacturers who used to will android. by the way, prices plummeted. kendall offers -- amazon offers a candle. it's something like. melissa: says the point. that is one of the points. you y for all of the other products. >> consumers benefit. >> but not if they're charging more. they're want to get you so that you are a prime subscriber. those prices go up because you're in the store already. lots of other things they're trying to get you to buy. but even o the jeep device. in the meantime they drive you out of business. a man of hillside for them, but am looking out for the customer down the road. >> you defined the five from like amazon, apple, they are very formidable over years.

because very hard to break-in. there were not the first one. they decided it would take the risk of trying to go up against the amazon. it is very, ver hard, especially in the consumer market, to try and break-in after someone has established the dominance. azon and e-readers, it's very hard to come in anday, we are a great other products. melissa: i don't know, but a lot of others of gotten there first and still got a questions. no matter where you get and they still beat you. next on "money," egypt on the verge of collapsand the clock is ticking. less than 48 hours to solve the crisis before the militaryteps in. we have the latest. plus, if you are paid to give a birthday show to a dictator, should you research in and see what his all about just a thought. stepper lopez got an controversy

after cozyiying up to a tyrt. plenty of company. piles of "money" coming up. ♪

♪ melissa: all right. very unsettling futures out of egyp chaos eruptedor a second straight day with protesters calling to oust the president.

earlier, the egyptian army gave him 48ours to respond to the people's demands before they step in. it seems like the stage is being set for a possible military coup the military is denng that as of now. presidenof t american islami forum for democracy. what do you think of this 48 hour warning? how does that play out? what does that mean? >> well, from the beginning many of us talked about the fact that revolution was around the corner, even back fromhen he took over a year ago and was inauguted. i had said, and manyf the liberal muslim movements, give us to three years to get organized. re enough, was fuelled the organization of the non islamist, than non freedom, those who really believe in freedom, the fact that they prove they were neither for freedom or justice. there were just autocrats all about theocracy.

the military steps and. you know what, we may need to do the same thing we did, put in place to council to bring forth a real constitution, not of the credit one. bring forth real economic prosperity. they he been economically failing the same if not worse economic complaints as they had at t time of the first revolution. egypt's primary sector of success is tourism which has been failing. he put in the governor into the biggest tourist area which was the head of the terrorist group and they then went to the streets. within three days he had to resign because people were saying, what are you doing putting terrorists in charge of governorships. we are finally seeing a unification of theppition, the non the islamist groups. melissa: what does it mean if the military comes and says, you have not responded to what the people want, so we are taking you out of power. do we trust them? and they just overturn any election they wanted?

>> that's a great question. the problem is they don't have a parliament in place. it has been taking too long. they were not happy with the constitution. they signed off as a result of the constitution. they're is a lot of maturing debt has to happen. we cannot go back. a lot of people are saying, let's get that type of secular dictatorip. that would not bring in economic prosperity. what they need to do is be the adults and allow them to really have not democracy, but freedom d liberty to allow economic free markets and other aspects to really come into play so that it is not politically oppression through basically saying that the election gives thugs the right to do what they want. melissa: what should the role be for the u.s.? this seems like we have lost whatever leverage and prestige we had. we do not have it currently. and it actually seems like russia is the one that is calling lot of the shots in the middle east. what can we do in this

particular situation? >> how about if we wake up from our slumber. the bottom line is not only are we in the backseat, we are we at the bk of the bus. the president last week said he wants a democracy. this is beyond democracy. this is about freedom and liberty. they have signs in this tree does say obama administration supports terrorism. this is what they see america, defending the brotherhood. the people are telling them o stay out of egypt. we are silent. our pentagon said, we are going to look at what the egyptian my is talking about. when i take this opportunity. this led by to let russia and other autocrats control. we take the opportunity to s we stand for freedom or liberty from stand against theocracy, against controlled economies and putting terrorist into governorships. what the people are talking about. there were people on the street.

this is not about islam. this is aut political islam. we slept through a month ago. we better not this week in caiio. melissa: wise rds. thank you f coming on. >> anytime. thanks. melissa: coming upon "money," everyone has their price. evidently jennifer lopez had hers met. critics are up in arms. not the first celebrity to rub elbows with a brutal despot. when is it worth the damage to the brand? at the end of the day it's all about "money." ♪

♪ melissa: this is one of those times that it might have paid to research. actress and singer jennifefer lopez give a very questionable confererence -- concert. she wrapped up the show with a performance just for the president who, by the way, is a tyrannical dictator considered to have one of the worst human rights records in asia. watch this.

♪ >> happy birthday to you. happy birthday, mr. predent. melissa: she is for sure not the first time that a superstar me millions like this. what does it say? damage control? one marketing guru joins me now. this is why. hurt people tried to say she did not know until the very last minute that they would ask her to sing happy birthday. they just kind of master a she did it. she did not realize that it was an evil despot. the human rights watch called in the worst of the worst in terms of dictators. freedom of the press is second only to north korea, but this is my question. she w paid by china's national petroleum company to go and put on a show there for executives and local politicians.

chinese oil money to go to an oppressive country where this question of human rights everywhere they looked to stop the flat. without even singing happy birthday it seems that this was questionable. >> i know that you think i am an expert on turkmenistan. the tru this, i am not and she was indeed there. is exactly what you said. i went, i would have pulled out my ipad, searched, and made an inrmed decision. ignorance is no loer an excuse melissa: it really isn't. two seconds, anyone on her staff, whoever bucks this should be fired unless they knew and made a conscious decision. that is the other thing because there are lots of other people, kim kardashian, beyonce a, various people who have been paid to go to libya, a similar event. you know what you're getting into and decide to do it because it seems to be worth the money.

if she decided at a time, i'm going to get embroiled in this fiasco where the president has ordered of stories to exterminate all stray cats and dogs and then escalated it to killing house pets because he did not want them. this is a dictator, driving down the street and see a dog with people in these like i kill that dog, literally he did. this is what he did. so if she knowingly knew that this is what this country was that she was going to and decided it was worth the money, maybe no one cares. i don't know. what you think? >> i think nobody cares. hun rights watch says it's one of theost repressive regimes, but no one really knows who they are. don't forget, every singer is just dying to couple of marilyn monroe and sang happy birthday, mr. president's.

kerosene many. melissa: and i'm glad you tried to say his name and not me. i was going to get through the entire segment without trying to say it really quick, paula dean is publisher yanked the book that is supposed to come out. it was one thing to cancel all her upcoming books, but it was number one on the amazon less to pre order which, by the way, was like her number -- normal southern stuff. was that a good business decision? it was a best seller. they decided not to publish it. this is random house. >> athink it's a vy big business decision because people aren't buying this book because they need another cookbook. they're buying it because it is a souvenir. everyone loves a train wreck and here is someone selling the book. she has pont's. those people will still buy

pots. these people will still buy cookbooks. her goose is cooked. get out, pau away, and cut the losses. melissa: a lot of money down the drain. always great to have you want. next up, apparentl nothing sells like crime. the erin hernandez murder charge creates one of the hottest collectibles on the intert. we have it all with "spare change." you can never have too much "money." ♪

♪ melissa: time for a little fun

with "spare change." joining me today, jason weisberg. thank you for joining us. first up, the new engnd patriots announced this coming weekend is pro shop. there will allow anyone who has an aaron hernandez jersey for exchanging. but now looking like a hot commodity. his jersey is selling for more than doubled the retail price. one went for almost 300. what would you do? sell it? exchanges? >> i would absolutely selig. almost a thousand 500 items from katy's selling on ebay. my question is, the same people that are buying these must have a jeff dahmer signed refrigerator. melissa: what do you think? why would you wanted? i can see selling it. i would never be a buyer. >> i heard the rumblings that

they wld a stains the jerseys. let me go out and buy them and turn it into an arbitration. melissa: you are such a trader. you are immediately after to make a market in jersey. >> then i figured, that will never work. my kids across jersey would be worth more. an when i look, some of these prices, was blown away. melissa: you are admitting you were on the absolute wrong side of that tde. how can you do that? we will rewind and redo. moving non. this may be time for a nap time for a nap. great advertising was behind the successful cpaign and has quit the account. a commercial was in the finished. you think they should keep the talking baby? i'm sure in real life he is very cute, but in the ad is ptty creepy. >> creepy but still funny. very funny. i think unfortunately people

that are caught up in madman can afford. fighting back and forth, i would keep the baby. melissa: what do you think? >> i would too. there were saying that his clients come to them and say we want our own e-trade baby type of situation. so i think it's sor of -- melissa: even though they're losing. they still have rights to the baby, the intellectual property? is there some sort of adoption proceeding,ustody battle? >> changing the diapers. melissa: as surrogate bab having some ugly battle. gino's. >> the voice is getting his own talk show. melissa: to visit? melissa: b homes. melissa: i have no idea who that is. it's creepy. what is good about that?

>> we have a talking back go on tv. what's the difference? melissa: that's all the "money" we have for you today. we will see you back here ♪ >> in the '50s,@ there was a new sound. >> @♪ wake up, little susie @ ♪ wake up @ >> it harhythms and lyrics that spoke to us. >> @♪ maybellene ♪ why can't you be true @ >> and all across america, radio stations gave us the latest hits. >> @♪ well, you can rock it,@ you can roll it ♪ ♪ do the stop and even stroll it at the hop @♪ >> there was chuck berry,@ jerry lee lewis, buddy holly,@ and of course, the king. >> @♪ well, since my baby left me ♪ ♪ well, i found a new place to dwell ♪ ♪ well, it's downt the end of lonely street