unless you're scared. i'm not scared, it's... you know we can still see you. no, you can't. pretty sure we can... try snapshot today -- n. neil: well it's respect card time. -- report card time, will you make the grade. get ready for real problems this quarter. welcome. i am neil cavuto, think quick, what is difference between alcoa and washington? alcoa does not have luxury of kicking the can down the road, they are kicking can now, giving buyers a kick in after-hours trading, stock up more than to 2%, reporting earnings, well out the gate. imaybe we don't need ben any time. maybe we could survive ben

bernanke's slowly taking our training wheels watch, and discover we can move nicely on our own. that is why second quarter numbers coming in are so important, alcoa seems to be hinting we're on our way, say what you will about problem in the world, and violence in cairo, and a euro less than a zero, at last we're kicking can in the good old usa. are we? one could read into that relief all seems okay? not as bad as feared? >> i would say, for the moment, they traded up, pulled back a little bit, the numbers did come in slightly better than expected for earnings share and revenue, that is goo good news ultimatelr alcoa. they have an array of companies

and areas they cover from aerospace, to autos and industrials, however it is not as indicative of the equities market. also, as you noted it really is tied to the fed. as we get in the earnings this week from alcoa and yum brands, if you have beat, beat is just means they are looking better ultimately, and tells fed, hey maybe you can taper a little bit. neil: do you think we're better prepared for that day and moment, jared, when the fed says you are doing okay on your own. i think we can take the training wheels off? >> i think we're still living in a irrational world slightly, i say that with disqualtation, markets can remain irrational

longer than markets can remain insolvent. we were supposed to have 12% earnings growth in first quarter of this year, moved to q4. we've gone from 4% growth year-over-year to breaking just above break even, i think we're still a little dillusional, i do not believe that investors have corrected for a non-qe world, i think that estimates need to come down fa -- farther than they are now, we're believing this fed will nurse us along. neil: gary, what if we get more indications, that is really the waiting -- moment, we might realize, you know, we're doing okay? >> yeah, i guess, jared just really cheered the heck out of me. neil: bummed me out too. >> he put a big smile on my

face. neil: i have been in my iring al king kin--irrational world all my be. >> we all do, i think we've been in that world since greenspan has been here, we have been pin pricked enough we know that fed tapering is coming sometime. the sooner the better, get them out of the equation, why do we even talk about the stock market and the fed together. we see a slow, steady build, it started with housing market. i wish the unemployment numbers were a little bit better, but at least they are kind of creeping up a little bit, i think as this stuff starts to steam roll a little bit, i think we'll get auction way from the fed, fed focus, and more on the earnings, which i think will be positive. neil: you know, nicole, you talk with the guys on the floor about the mood, there is it they are

nene that second quarter earnings numbers will look good regardless of what fed does or does not do, underpinnings, are sound or not? >> i think that they will say two things about earning season they take hem headline by headline, they agree it is a volatile time, and money enters into the market during this time. during earnings season, as you saw the dollar dropping, treasury yielding dropping and equities moving higher, second part, if you notice our panel used word like little bit, housing improved a little bit, unemployment improved a little bit. that is not enough for the fed to say, let's cut it the fed is not doing that any time immediately in near future, traders on wall street think that fed will keep the kool aid coming for near-term, they dorm they know things are improving with you not good enough for fed to cut it. neil: to jared and gary b .

what we can expect out of second quarter, alcoa leading the way but much more to report, as to nichol's point. >> look for a fair amount of earnings beef, number of earning about 2/3 come down, i think you know, listen, we'll do okay, companies are making money, they are growing much slower. neil: just okay, you say? >> just okay apply conundrum, when do we say that valuations are too high and we market correct. for now we're doing okay and we'll chug along. >> if jared said okay, i have to see his okay, and up him a double-okay, i think we'll be doing better, it will be sector dependent, bright spots in financial and tech, i think

people will be surprised. neil: all expectations, from my parents when i was a kid, okay was not getting any more deficiency slips that is okay. this just in 50 people killed in latest violence in cairo today, military said it is on top of things, maybe that is o is the problem. >> to henry kissinger to why almost anyway we play this, we risk making a even bigger mess of it.

>> kick out a democratically elected government, this is what happens. the ones kicked out don't take it nicely. 50 killed in spreading violence in cairo today, closing in on a hundred since military stepped in and bumped the muslim brotherhood out. remember we gave the muslim brotherhood billion, white house said cutting that aid now would be a mistake, many in congress would like to do that, to henry kiss en jer enkissinger on whetd with the wrong guys.

do you would think we did? >> who do you think we sided with. neil: if we supported ed muslim brotherhood. >> most important thing to understand this is a strategic problem. before it becomes a form of government problem. and the muslim brotherhood is dedicated to imposing law it cannot be democratic even if it lets itself get elected it cannot accept that the islamic aspect can be changed and they systemicly attempted to establish a dictatorship. which is one of the reasons they were thrown out. so it is against our interest to cut aid to egypt at the moment, we should dry to d try to do ser

a secular oriented government can be created, we should understand this is not primarily our job to do. but this is where the direction in which we should go. we can't talk about coalition government of all of the groups that are killing each 94 right other right now there, has to be a government that can govern, then try to support it to see whether it can bring about an improvement in the living conditions, and then we can talk about the meaningful elections. neil: why bother? right? why place our bets in a region we seam to make losing bets, i was with secretary ron paul, saying cease and desist, we're putting good plenty after bad, we have groups that end up hating us, not liking us,

killing us, and stop it. >> the reason we have to be -- the degree of our activity in the region, is different now than it would have been 40 years ago when i was involved. but egypt is the key arab country, the largest population, the one that is cultural leader to the others, cannot be in our interest with a reduce law that whole islamic world is aflame. and turned against the united states and part of that hostility to the united states, results from fact that we look increasingly irrelevant. neil: is part resentment we keep throwing good money after bad, and our money does not buy us friends. >> we should not give money to buy our friends,. neil: what is what we do.

>> we should give money for an outcome we believe will improve the situation. in early mubarak period we had a very fruitful relationship with egypt. there are people in cairo, and in the country, and also among the military, from whom you can create a government if however the muslim brotherhood -- are encouraging the more radical. go into the government, that cannot possibly work. so we should try to encourage -- i'm not saying right now. we should not cut our aid at this moment. neil: but, play this out secretary, this is what i

wondered about. egypt is not a big oil player, not an opec member but it does control the suez canal, it is a neighborhood of oil players, fears are as they sort this out, suez canal is vulnerable to shut downs or terrorist attacks or sift war strikes that you know stifle oil supply from that region. and that leads to what you remember -- do you think it could happen? >> it cannot happen -- it should not happen if there is a firm alternative. if the radical -- >> do you see one? >> i believe it is possible. to create out of the combination of the moderate elements in cairo and the military, a government that can maintain

itself. and any rate it would be the height of toll i for u folly fo3 these people to bring back the name a group that we know is dedicated -- >> i understand, but what if people elect group like that whether it is muslim brotherhood, what they did in iran after the revolution, that we might not like what they elected. they were groups not friendly to us. >> one of the greatest assets of american foreign policy, we act -- in everyone throw of the shaw, it would be more democratic, and far more peaceful if the revolution in 79. we must not make that mistake again. of course, if the whole situation turned radical, then

we can do nothing. neil: what is the worse, that we risk? if we just say the hell with it? good money after -- good lives enough. >> if we say the hell with it, we'll going to wind up in the situation you described. in which radical groups are fighting out their intern nal battles and may use pressure on the west, whether we're giving money or not, in order to bridge about their own -- bring about their own domestic. neil: one way or another it will be festering. >> it is going to be a very difficult situation, we ought to think a bit about our attitude two years ago. when mubarak was over thrown, the ease with which we celebrated. >> let me, it comes at a time,

doctor, that our markets or economy, compare to the rest of the world have been holding up well, not that we're the best game in town, but i think we stink the least, maybe. that has prompted capital to come here. buyers to come here, and look at the united states, as a haven. do you think that is true? >> i think it is true that the united states has emerged out of the crisis. certainly the strongest position in the western world, perhaps of any major country in the world this is true. but, we -- that does not mean that we have no real strategic interest left. we have to adjust ourselves to the new circumstances, there is

no question about it. but we cannot come back to a fortress america concept, and let the world explode. nobody is talking about military force in egypt. i am talking about the fact that in our day-to-day diplomacy, we should throw our weight on the side that is most in the strategic interest of the united states and not get involved in cutting aid when the people in power, may be demont ranly more favorable to a stable world, than the people it replaced. neil: let me switch gears, if you don't mind, a lot of countries meeting vying for snowden's citizenship, venezuela the latest. do you think he is a spy? a hack?

>> well, i don't know what lake tollabelto give him? neil: you don't think he is a hero. >> this is a revolts display of self righteousness. that really damaged american intelligence capabilities. intelligence capabilities this exist for benign purposes to protect the united states, even if mistakes are sometimes made in the execution of them. neil: what do you think of the way russia has handled him? >> well, russia has handled him partly for -- they have made him a hero, trying to push him out. and i think he is a despicable character. neil: and how about the way that world is played this?

in his case, putin 's case, much made, the meeting at g-8 conferences looked like the president and mr. putin could not stand being in the same room with each other. does that make a big leader when two leaders personally do not like each other? >> one would hope that the leaders of countries whether they like each other or not look at long range interest of the countries whose fate has been entrusted to them in whatever manner, they would handle -- would not let the snowden issue become the dominant element in their relationship. neil: but it has. >> not the commen dominant elem. but i don't think that personal feelings they have for each other. i think that fact that russia

has not made him a hero, and russia made it clear they would like to get him out is not as much as we would like, but not as bad as it could have been. neil: interest, secretary, great seeing you again, you come by soon? >> i would be happy to. neil: henry kissinger, think of history, t epic evens under his watch. when we come back, do you think that traditional tv is dead internet is king? i bet you billions, that you are wrong. the boys used double miles from their capital one venture card to fly home for the big family reunion. you must be garth's father? hello. mother. mother! traveling is easy with the venture card because you can fly any airline anytime. two words. double miles! this guy can act wanna play dodge rock? oh, you guys!

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neil: so much for being a dinosaur, traditional tv knows a thing or two about being hip.

weeks after gannett forked over $1.5 for 20 tv stations. good for those stations getting the cash, but brad make man said this is a good reminder that money talks, money on television really talks, political ad buying really talks and works, boy these are eye-popping numbers? >> absolutely. thank god the broadcasters would say for citizens united case that said you can advertise up to during, and after elections cycles, if you are fortunate enough to own a decision in a battle ground state, virginia, new hampshire, south carolina, florida, this is what the doctor ordered to boost your revenues, people seeing advertisement between election cycles as aggressively as during the elect cycles. neil: good old washington, d.c.,

the abc affiliate is making hand over fist money, that proves it anything that whether you or left or write right the green ie thing. >> when you can shop around, you put a public policy ad up, and hone down on your type of viewers you want to attract, you know how many people are tuning in, you know when they are and their ages, this is type of advertising information that public policy people want to use to inthroughence the people that are trying to reach, you can also learn biometrics, and polling, how effective the advertisement dollars are, you will see more and more advertising in the big money states, of battle ground states, probably earlier than we have seen in our history. neil: to your point, warned me, that this was the trend, you

also, pointed out that just because there were these new technologies, out there, from anything that not like direct mail to email campaigns, and texting and the rest, there would always be you know a needed venue in tv. that is reaches the audience that people want. i'm not saying self serving, more wer you then, but that you could have all in the mix but tv better be a big part of it. >> absolutely, this trend will continue as for as the eye can see, television has become a mainstay. whether it is switches now more to internet, it does not matter, people pay fo for thize ballsiie balls that see it. neil: the guy who was flying the

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neil: looking more and more like pilot error, a junior pilot at that asiana flight 214 crashed at transinternational airport this week may have more to do with the guy flying it than the plane, that pilot had not much experience with the boeing 777 jetliner. it makes you wonder about the

dreamliner, that very few have flown at all. to michael boyd on whether this makes him nervous? >> well, let's be careful, read the news stories this captain, who is trained, you think he just got out of crop dust irschool, he has been a captain what failed in the cockpit were both people there they let the plane get out of their control. neil: there were 4 people. but you are right. >> then one other ones was a highly qualified check captain, we're not dealing with neofights, somehow, there was a total failure in the cockpit. i don't think it was mechanical, does not look to be, but it looks like someone just took their eyes off the ball. neil: michael, if you indulge my crass businessman inside me, boeing stock was up today. not to make a statement but to relay something that was intriguing, normally after a plane crash, the maker of the

plane, stock falls, until the questions are resolved, are investors jumping the gun? are they giving boeing a pass? i have no idea how it will end up, thinking it falls back on pilots not on the plane? >> there is 1114 of these that have been put in airline service since 1998, only 10 that are not flying, 4 in storage, three scrapped for parts, and others -- these planes are incredibly reline will. i don'reliable. i would question, why did top of the airplane burn but that is a different issue. the real issue, i think it will be captains and pilots not the plane. neil: is that how it is a lot of times? on record of crashes this was not a major crash not to minimize the loss of the lives, but, it was not a -- but, are

those crashes you know human error? >> usually they are. but in the case of triple 7, this one weaker had one, we hah airways and an jef egyption pla, that caught fire on the ramp they wrote it off. neil: you know, if you will indulge my paranoia, i get concerned, after the fact, that particular copilot had no experience landing at san francisco, with this plane or a lot of hours logged on a 777, i know that 787 dreamliner, and by definition, people have not had a great deal of time to fly it.

should i be concerned? >> no, i don't think so. there is a lot of save the that's goes into it. you do bring up a good point, not a lot of pilot have a lot of experience in 787 because it has not been out, we're looking at same sort of thing, the more experience a captain has, the safer you will be, they know what to do or not to do. we have to build time some place, these people would not be in the cockpit if they were not deemed safe. i think that is a system we live with. neil: do you think there is any risk to certain airports that reagan national, you know, sort of just, right at the water side, in france tha in -- san fy nature they are trickier? >> well, true, washington reagan is and laguardia, san francisco is not a tough airpo

airport. no one has been killed before, the point is, i would rather have a plane splash short into the water than into jackson heights. neil: you know that is a very good point. michael boyd thank you very much. >> thank you, neil. neil: well later whether your favorite tv show is canceled. before you scream, screen, netflix has fix that is turning media world on its head. i want to make things more secure.

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after like, shaken hollywood to the core. netflix signing a deal to allow the cult hit. year blitzes first with very thing that changes our lives, tv. here to get blitzing, garey and monica, gary, what do you think? >> i think the world is changing. i don't think that tv will ever go away, but there is major competition for your eyes and ears, a lot of original programs and old programming that coming on streams, hulu is doing a bunch of soap opera that abc got rid of, and net flick signed with dreamworks for kids programming. >> but they still need the content. it comes back to me, they need me. i don't care the device of

venue, how you get it or stream it but they need me. >> that is a very important distinction, contact creation is still something that network ex accel in last time i checked there was nothing like a "mad men" coming out of netflix. neil: or cavuto. >> absolutely. neil: just work with me. i don't think that this is nearly upended cable companies? >> this is a natural revolution you see in a variety of industries when the film industry started seeing changes with the vcr they thought that was the death of the industry but it is a brand-new revenue stream for them, they make more money off of home video sales now. neil: not with the lone ranger, but i i did greece. digress. issue two, desktop pc.

friendlier to traditional pc users, does not mean practical pcs are back. microsoft itself is betting on new tools and music options that exploit the web than any program that is in the hard drive, a drive away from a dinosaur? >> microsoft has to adapt, pc business was down 8% year-over-year, it is only going to get worse. new application that came out with bitte -- better for touch . neil: what do you think? >> garey is right, they have to adapt, and follow the money. if you look at sales numbers, they -- pc sales were down 10% in same period of time tablet sales almost doubled,

. neil: he said now i am free how do i get my good name back, or can they? >> there is a line in this

legal, what happened in my industry. financial stray, there is a ton of settlement. you walk off into sunset with a ton of money, i do not know, i'm not judge napolitano whether they are guilty or innocent. but i know there has not been a level playing feel in my industry for bad guys. seems very well connected politically in financial business they get off, i remember in '07, and-'08, tons of felony committed by institutions, not one person was convicted. convicted. >> i think that tricky thing is proving criminal -- there was criminal activity, there may be wrong doing. i think in case of funds that participate under are even traded driven funds they make money swerving in and out.

with activities taking place that is compelled by having special information for there to be something improper going on is possible, but able to prove that, that is where challenge is. neil: hard to stick, thank you, very much, thought fan may -- fannie mae and freddie mac were to big to fail? wait until you hear how these guys how the government game of this the hook. s your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week.

neil: the government kept them alive, but left investors to die, funding suing government over its handling of fannie mae and freddie mac. also this goes back to the financial meltdown, where

government all but too over mortgage lenders and placed them into conservatorship. now visitors say, on our dime. and they are a an eclectic bunc. saying it was their investment rights and cash that was trampled and worse. do these investors have a case challenging a housing and economic recover that's ran rough shod over them, matthew miguel is one of the attorneys leading the case, very god have you. >> thank you -- very good to have you. >> thank you. neil: a lot of tax payers say they were burnt too, are your investors in a unique club? >> taxpayer have not been burned. one of the amazing things about the nanny and frid -- fannie and fred story, next year taxpars i, $189 billion and interest,

taxpayers have come out ahead in this deal. it is the private investors who have been wiped out by the government. neil: this would not be first time something like that happened. in case of auto company, chrysler, rescue, and the gm rescue to a degree, bondholders who are typically first in line when everything hits fan were rel gated tedreligated to the be line. >> it is and sudden what happened. it is unprecedented for government to take ownership of ththe company, without resorting to bankruptcy procedures, wipe out the existing shareholders. >> how would bankruptcy have changed that? they would have been screwed in. >> no, you know, one of options available, to put the company into receivership rather than conservatorship. and creditors, and also the

equity holders would have had available to them a number of procedural protects, but for its own reason, treasury and fhfa chose conservatorship. >> what do you make of the argument, i raise this with hank of the aig fame, that in fast times, tran fix times, overheated time, mistakes might be made but the intent of to save tax poise not visitors, that your guys got. you know short end of the stick. >> the irony is we're not in these fast times any more. when we were in the pran tick times of 2008, congress made decisions about how the government would intervene, and

fannie and freddie. neil: they knew better than to turn contract law upon its head. >> they did know better they told -- if they will do a conservatorship, you have to conserve and protect assets -- >> then why did they do it this way? >> well, i think you know, president's fiscal -- you know 2014 budget tells the story, we got the president saying that over the next 10 years, they will collect $2 40 billion in profits and fanny and fred that's would go to treasury. neil: wow, you or to something big. a lurk -- task going after the government. government. >> all right. who says one weiner at a time? not client number 9, said it is his time. when rogues rock after getting their rocks off, is the end of

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neil: now i know why they say new york is for lovers, they love everyone, even those who love people even though they should not be loving publicly. like eliot spitzer. setting his sight on new york city controller and has a good chance client number 9 could be working with anthony weiner who has a good shot at this new york city mayor, and just weeks after a lazarus life return from political dead, when south carolina mark ca mark sanford gt elected to congress. >> they all say, give us a

second chance. well, yeah, i believe in second chances, i believe in forgiving people, but i don't think that political arena is right place for them, they put themselves in a situation where they have access to same temptations of before. you have a chance to rebuild your family outside of the public eye. neil: let the people decide? >> if, to say. you know, you really recovered or rehabilitated, this is like putting the recovering alcoholic asking them to bar tend, you don't want them in this situation, i don't think it is wise for anyone involved. neil: or me in charge of your fridge. don't go there. wayne, what does this mean to you, i like the flip side, looking at the positives. anyone in entertaining and running for public office, who is skittish about cell top -- ss

in their closet, they have nothing to lose. >> they do have nothing to lose, they all have some sort of sexual event going on while they were in offers, thi offers, thi- office? >> case of governor sanford. he apologized to people, said i put my mercy on you, they voted him back in congress. with team deciding this whether they want rogue in or out. >> i mean, you know for me, the problem is just where are other candidates? you know, where is the pipeline of new idea, new candidates, new people running. neil: that is a very good point,

excellent point. >> we are recycling candidates. i like this idea of maybe having other people who you know who don't have scandals running for was on the. but i will say -- running for office, i will say if we start cutting people out of doing public service because of their cheating, i don't know how many police officers we could still have, cheating is an american problem not just a political problem. neil: this does raise issues. think that there is a certain level of attract weirdness to the weiner thing. the spitzer thing has its own elements, but i am looking at what it says about people when they elect people like that. maybetations are so low, they are fine with it? what do you say? >> i think it guess back to america's short attention span.

people -- >> what was that? >> people's short attention span. they cannot be bothered to pay attention other than, that guy's name sounds familiar, he did something bad once, now he is okay, we'll move on. people are frustrated with government, maybe because they are electing the same people who put themselves in these situation. neil: one thing this ladies hit owayne, it is a problem we don't go out of th petriyerksie dishek at other dishes, we always go to the same types. >> you can't -- you know, you can't be the moral judge all that, it is up to the voters. we're allowing too many people to vote. we allow morons to vote, you have to have a driver's license

to go buy booze. neil: we allow morons to vote? >> yes, o, of course. neil: malia, what do you think? >> god bless america, we let morons to vote when we only let white land owning men to vote only. neil: okay. okay, guys, guys. elizabetliz, stop. elizabeth, do you think there is anything wrong with electing people with a controversial past. >> i think it does raise some

questions. it should raise an eyebrow. neil: that is a an a yes. >> guys, we'll continue this tomorrow, go vote. gerri: hello, everybody. i'm gerri willis. tonight on "the willis report" new details on why the ag on a flight crashed in san francisco. what investigators are now focused on. >> we are working to interview all four pilots. gerri: also, even more changes to obamacare just days after the white house reversed another key provision of the law. the latest details. and is -- its money-saving monday. how to avoid the ripoffs and supply charges next time. we're watching out for you tonight on "the willis report"