increased d blood cell count, headache, diarrhea, vomiting, and increase ipsa. ask your doctor about the only underarm low t treatment, axiron. charles: a phone fight with billions of taxpayer bucks at stake. welcome back i am charles payne in for neil cavuto, remember this woman? >> you got obama -- >> you know. gave us a phone. >> how did he give you a phone. >> you sign up. you got low income, disability. charles: she is thrilled to get a government subsidized phone but now a push on capitol hill to hang up on that program. it has grown to $2 billion, now

track phone, is fighting to keep that money coming in. it is attacking my first guest with ads like this to pull the plug. louisiana republican senator david vetter is joining us now, must be a little intimidating going up against the richest man in the world. >> let's be fair, i think he bumped down to second richest. he is behind bill gates, he really needs the income stream, we're denying him these rate ppying dollars, talk about a welfare corporate king. this is the poster boy. charles: we did not see him like this during carter administration. to your point, his company, they get $9.25 per month from every welfare track phone to goes out there, talking about a whole lot of phones, a bunch of money. >> yeah, i think it will is a

smaller amount but still very significant, i think about $2 .75 per phone per month that is why they are handing them out on street corners like candy, that is happening in many cases with no control, no real verification of eligibility i, it big money. charles: perhaps, a friend of mine got one of those phones, he was thrilled about it, saying he had better self esteem. >> folks like free things, they like give aways, i'm sure some

the recent this, but there are more folks paying for it anybody who pays any telephone bill, land line or cell phone, is paying for this, every bill, every phone, every month. for family with a few kids that adds up to real money for middle class family, a lot more of those folks who are paying for this sort of entitlement mentally gone wild. charles: we must point out the connections here, ceo of tracfone, he just last year had a $4,00 $40,000 plate dinner for president obama, his wife is known as a bundler. what is your comment on that? it seems like a quid pro quo at taxpayer's expense? >> those are the facts, he cannot dispute them, this is entitlement mentally gone wild

arriv.this is rife with fraud, d abuse. the most who are benefiting from them is the two yo you highligh, including the second richest man in the world. senator we wish you luck on this, this out of hand. it is unfair to taxpayer, good luck in this battle. >> thank youkin thank you, char. charles: okay government, they are giving out free phones but now doctors give out free prescriptions for food stamps, a quid pro quo also, two new york city hospitals started a pilot program, they will have low income people to use them to buy healthy food, katrina is worried thatteedthat the food stamp pros growing out of control. >> let's call them double value

coupons with a written prescription from your physician. charles: how does this work? is it because of th the -- you n go to your nearest doctor get health food. >> where there is a will there is a way with this government, never mine fact tha states shoue in kr0e8 control, there is a flr what they call low income, this is new, they are backed with federal grants, but in the end it is you know picking winners and losers. because clearly charles your local grocery store has produce they decided is not very healthy for you. charles: okay this is a pilot program, i don't know how they will measure success or failure,

we have on scene, the 101 million people in combined food program, that is an extraordinary amount of people, it does not look like there is any end in siggt, to your point, administration is promoting these programs, getting more people on them not less. >> it is the age of department see, in light -- age of dependency. they included a graph from heritage foundation that shows these types of resources do not go to families with an immediate need, they go to nonelderly adults and children who have been on assistance for greater than 10 years this is the age of dependency that means that federal government is out of control. and well boion it yondits -- wel beyond its scope in size tie.

charles: i can remember growing up in my neiggborhood, people born on food stamps and died on food stamps, generation after generation, how come no one talks about it? this is a trap, you are not helping people you are harming them, you are giving them a way of never participating in the greatness of america. >> that is the purpose, they really are not trueing helping americans, when you give away things, and we know this through, birth growing up, i lived in a neighborhood that way took some of us escaped, many of us don't. it is a helping hand not a life style, that is what we've seen the government do. they have control, now food, and like your previous segment a ceel phone. charles: senator made a point that people like free stuff. >> they do. charles: free is not always good is not ease to articulate. >> it not, and it very easiest

thing is accept it but, more and more people are starting to hear, and understand where the money is going, and coming from, which is yours and my pockets, groups are getting word out to average voter, this is not my kid who is eating organic produce, we still have to shop the grocery store, when more and more people find out about this, i think you will see more attention. charles: i hope so, 100 million people, and 100 billion-dollars if that does not wake the american public up, maybe nothing well. coming up. apple, already looking shaky. it is getting worse, next big thing could be a bigger bust. but first, detroit is crumbling, we know, that and union are fuming, the labor big wig who is suing to keep the pension money flowing.

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♪ charles: detroit is going bust, just days after city officially filing for bankruptcy, labor unions begin filing lawsuit, they are suing to keep their pensions, edward is a union representative for one of the groups suing, why do you think

that detroit can still pay its bills. >> because detroit has not shown that it is insolvent, a prerequisite in filing for bankruptcy they have to prove that, detroit is paying over 20 million in consultant fees, $2 60 million in vendor fees, they have not collected $800 million by people it is sod. and employees continue to work overtime. charles: so, the idea is kevin oorr said that unions did not really make a lot of points, you had a enough opportunity to make these points and bring your arguments up but things like you didn't top negotiate, have you problem is signing agreement,

always something that kept unions from bargaining table. hence where you are right now. >> well, that is just disen genius if say that mr. orr haa never met with me, he told other individuals he understood he is an obligation to get back to me, he has never got back to me. i sense him an e-mail, and taped a letter on his door to get in touch with him, mr. orr is being disengine wise when he said he indicates he has bent over backward to meet with unions, i have been in 4 different sessions, mr. orr was in first session at airport, that of the just a preliminary session, other three suggests was also preliminary but held with the law firm, in these particular meetings we talked to them, as well as we gave back questions,

sent information back, while we were waiting on them to get things back to us, mr. orr has not been available. charles: we're running out of time, but i want to ask, how do you feel, when a well the of people, including myself to be frank, from outside looking in, feel that unions bear a huge amount of responsibility for problem that detroit has right now? >> well, i think that is a wrong statement to make. i think what people should focus on, that you have a governor who took an ocean of offic oath of p hold state constitution, he is now in violating of the constitution, i think that and i issue that people should be concerned about, you haae a governor that raised his right hand, and now in violation of the constitution. charles: i am sure a lot of people will talk about what shaping right the here and now, but evens that led to this moment, it did not happen

overnight, will say what happens? >> i think there will be a fast track hearing, what happens in jsteven rhodes does not decide in your favor when is the next move? >> i think we will continue to move we'll appeal the decision if it comes down the other way, %-lookyou have to electric at at what mr. orr has done. they have not met the prerequisites, people need to stay focused and look at how this governor, as well as mr. orr has not been transparent with the public or workers, in city of detroit, even though he said that. charles: right. iican tell you that is the largest bankruptcy in america's history, we will stay tuned and stay focused and probably ask you back thank you for your time. >> thank you. charles: you inlanding gear

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[ bleep ] >> open the door. >> calm down. >> we're not there. we take your seats. charles: that was brand new cell phone video of hard landing yesterday in new york. due to front landing gear

failure, add that to fatal plane crash in san francisco just two weeks ago, and boeing's dreamliners nightmare, charles said it is time to worry about plane safety, charles, there is no doubt with these images, in our mind over and over, that there will be serious growing anxiety what can be done? >> you continue is summertime, planes are hefry used because of weather interruption, and the we tend to run out of time when it comes to maintenance. it happened every summer. sadly our most accidents happen

in summer. it is usually be traced to a mistake, or weather. but planes are safe. >> yeah, i like how you did that, you had me drinking a vodka and sweat bullets then tell me they are safe. from what i read for planes that have an accident, you need perform storm, a black swan even, 6 major things in a row human error have to occur. and you say that these that we're seeing is an example of that? just this closely back-to-back, a huge red flag? >> sure, let me add that, 1 have you an accident, which is highly publicized ued such as asiana ft 214, we look at what is going on in country, we have a plan taking off this united states, commercial airliner about 30,000

times a day. there is a take off and a landing, so volume is huge, we do have accidents, most of them thank god are in the fatal, not even serious. but they do consider, given the volume. and the number of people, so it does occur, let me say, planes are the science of aviation is almost flawless, however people do make mistakee in summertime %-don't have as much experiences might find in winter months that is because, the more experienced pilots need a rest, the young guys have to learn to fly. in san francisco, had what really came down to pilot error, here, some guy on the ground probably did not check maintenance of that nose wheel. and when it came down it crushed or pilot came down at too sharp

angle it hit too hard it broke. that pilot, probably does not have as much training as guy sitting next to him. charles: let me jump in here, i want to ask, are we seee saying for most part, this all goes back to airline, who have taken a lot of planes off of the system, so all these planes that take off they are filled to capacity, they can maximize profit, just about all this at fault of airlines, who probably are trying to save money, and running into typical seasonal constraints? >> i can't say that, it depends on what caused a plane to fail. and itt may be airline or strain on the pilot, it may be sudden storm. maybe a break down in weather tower. so i wouldn't want to put the buzburden on airline.

>> okay challenges before we let you go -- charles, airplanes for safe? >> i tell you, i would rather fly in a plane than drive my car around thh block in midtown manhattan, how about that. charles: life it, charles slepian thank you. >> thank you. charles: looking at president obama health care law score card, with eva longoria, jennifer hudson, and -- now against it. anyone see a problem here? chase. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake call.

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this easy-to-understand guide will answer some of your questions, and help you find the aarp medicare supplement plan that's right for you. charles: my house is your house at the white house. several celebrity attending a private white house pitch. president giving stars hard sell to help him roll out his new healthy care law after the unions turned their back, and nfl said no way to helping out, and hollywood is only support that president has left, if it is, that is not too bad circumstance it? >> i don't know if only support but, president needs hollywood. to sell his healthcare plan, hope they get the young people in exchanges they need young, in healthy and subsidize the sick and hold, if they don't get that, if everybody changes that open october 1, the bill will be

in trouble. charles: jamie, considering the busts this year, at the box office, can they sell anything? >> have you to convince young people to give up a lot of money, for coverage they don't think they need, it a tough sell, but you should jim carrey trying to get out in front on gun issue he made videos that he thought were funny, no one thought they were funny, that hurt his selling power, sometimes you try to sell something it comes back, as unpppular and hurts you. charles: are they going to be tasked with being honest about it? reading the bill, if hey do they will join a select few, are they going to be tasked with given pros and cons? >> well, i don't think they will give a very in2 intellectual

discussion on health care bill, i don't think they will read it, i don't think that many people in congress read it, i think they will preach when the president wants hem t them to preach, i don't think you will get a pro and consaid argument. charles: they like the president, they share a lot of traits, but, also this last fiscal cliff, where everyone took a big hit, morn public there -- american publics there are a $40 million carve out for hollywood. so tv and film production could be made in america this is to a certain extent, a quid pro quo. hollywood benefits from takes pair dollars is outrageous. >> they love the president, so he could give them you know $400 million or nothing, i think they would come to president's

aid, they are in love. charles: they may love the president, it will be a tough hurdle, you think playing hamlet is tough, jamie appreciate it. >> thank you. charles: okay from desperate housewives to desperate celebrity, spike lee using kick-starter to help fun his froproject. rich celebrities begging for cash is not doing the right thing, i was shocked by this, is this the guy that sits in front row seats or $10,000, at a game. @% yes. this is to fund a movie, he does not need this money, his last movie made $186 million. he does not need this. charles:sao the web site, he referred to the people who made -- faithful, like this is a calling not about money, just a

calling to help him out. >> you have to have faith to believe that spike leonine lee,o money, it is absurd, he told people for $5 donation he will tweet them a thank you. are these people's lives so empty they will give this manmohan jusmanmoney just to ge. charles: i have a filing that spike lee is cutting and pasting a thank you 355 times and more. here is the thing, he is not only one dig it zach practice of braft, 2 million, and veronica mars, someone told to that spike. >> if they want tooous their social capital and celebrity for something good, there are so many better things to do, me and

spike lee are nyu.kyu alum needy not direct that to a college scholarship fund or homeless or hungry, why help himself save money. charles: where do you put this? ego, arrogance or i am a star you are not. >> he knows he can save himself a few bucks, at the end of the day, this is america. i hole it again the people who are giving him money to perpetuate the cult of celebrity it is beyond the pail. charles: it is, you can go to public and say send me money, i will tweet you a thank you, a thank you? are i am not sending you anything. but there are enough people out there cult personality society we live in? >> sleetly, you know worse thing is that spike lee has been bemoaning the hollywood executives that you know it impossible to make a movie

unless you are doing something about a hero or exploding planet. about he said it is about human beings with an,dictio, addictioo drugs, and there is a lot of sex in it too. charles: we'll do something else on fracking and how to harm the environment. you know something like that. but, it is just your basic run of the mill, flood, gets and sex, and you know you can kick in the cash i'll make the money, catch me at knick games and i'll tweet you now and then. >> is it that easy? if you come up with a 3 word slowing know like yes, we can, you can probably get yourself elected president. charles: i bet someone will figure that out. let me write that down, yes, we can. anything or just we can?

>> i think just yes, we character let people project what they want. charles: thank you, david. >> my pleasure. charles: from abou baja to booh. big government lawsuit that is putting administration on notice. (horn, ding, ding) how long have i d carinsurance? i don't know, eight, ten years. i couldn'tell ya' but things were a lot less expensive back then. if you're 50 or over you should take a new look ayour auto insurance. you may be overpaying. actually that makes a lot of sense. old policy. old rates. d thanks to your experience behind the wheel, you might save $350 by switching to the aarp auto insunce program from the hartford.

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i'm gonna call. i'm calling. m calling. i'm calling. call today and make the switch to the aarp ao insurance program from the hawhy wait? >> apple stock jumping after hours, big iphone sales, but big trouble could still be ahead, ipad sales missed mark we're hearing reports of production iphone' 5s is hitting the roadblocks. scott martin and dave mainy on plates it out, you think that apple has missed its comeback shot already?

>> yeah, i do, here is the -- i guess, the issue with high-end phone market. it is all going low-cost, so without this breakthrough product, we have heard about what itv forever now, it has not come out, now phone prices coming down to get more people, any time you have a product that was a higher margin product you have to cut prices on to get exposure in a new market does not sound like good business. charles: dave, no doubt that apple benefiting from low expectations in afternoon market, but it is not the juggernaut that had the amazing pricing power of the past. >> it is not. i think, let's give them a little bit of a break in that it is very hard to be that innovative cutting edge world changing company with a new product all of the time, you think of what that looks like in consumer electronics, you really have to stretch, the panasonic

with the transisistor video in 60s, and vcr, if you say can they keep doing it are they going to bat .500, i don't think so it looks like rough water. charles: if they can't bat .500 any more, where should the stock be? >> you know, i don't know, i i am not a stock price predictor guy. but if you ask if there is positive or negative momentum, if all of the air is out of it, it does not feel like it to me. charles: scott, you feel the same? >> i do, other thing we are not mentioned is competitors caught up to them, they were the big grower, now competition caught up, dave is right, the arrow is down because the other arrows

are up. charles: taco bell, telling children no mas taking away children's menu, focus on college kids. the 20 somethings coming home late from night partying, scott, is this a good move on their part? go for munchies? >> for what it worthy still go there and eat tacos late night that is their demographic it smart, look at revenue in u.s. and worldwide it is not the kids menu. i think it is smart to get out of that business, mcdonald's gets attacked every other month about their markets to kids, that is not a great place to be in fast-food. charles: in a way this is interesting i never knew they had a kids menu, getting out. >> this is a funny story to me, i look at ceo quoted today saying, it is not consistent for

an edgy 20 something brand to be to have kids meals, i thought, boy to me nothing says, edgy and 20 something like artificial cheese, you know, that is where it is at. i don't get this one, i was on with you last week we were talks about kfy makinga similar move, a another yum brand company, now i am waiting for pizza hut to announce they will have mp3s on the jukebox. charles: i think, 1:00 in morning friday and saturday night is key. >> one more, homeowners flipping out, housing prices are rising fast, and more people are flipping their houses, is now the time to take advantage of housing, which, is going to be a topic we'll delve in to terse

dathis thursday 8:00 p.m., heren fox business. >> i think all things are harder than they look, popular culture notion of what it takes is what they saw on hgtv last night latest of two identical twins house flipping that is not a good basis for making an investment. it is a good thing for the housing market this is happening, flippers are arbitragures, buying low, putting lip tick on. they help the market be more efficient, this is a good thing for the market, i can't say whether it is a good strategy for a individual investor. charles: i like that point, not necessarily an indictment on housing market but, a group of people who are adhering to a

business model, they took a big shot when the housing market was falling apart, they have been rewarded that was their goal, do you think other people who are not necessarily professional flip irs should try it? >> no, i think it will be tough, your point is well taken, this is cyclical, now that housing prices are on is up swing, i have to disagree with dave, fundamental of housing market today are not that strong like in mid 2000s, there is not a lot of supply there are more buyers, that is an issue that i think with flippers they are drying up and liquidity because actual buyers who want to buy house say long-term are getting beaten up by the flipper guys. charles: if someone is watching this, rates are bouncing a little bit, prices have come back nicely. they have been on the fence for a few years, should they just jump in find a home of their

dreams. >> if they find one. you know, best thing for housing market higher prices, i tell you that will get people off of keisters into the market and buying homes. charles: dave, you think that is sort of right way to look at this? >> i -- well i don't agree it is a bad thing for market, markets are efficient, they are efficient in part because they are allowed to be efficient with people like flippers. right now, on your core question, is it a good time? i voted with my feet bought a second place for our family in mountains in colorado. it feels well -- acheegreat time to me. charles: -- it feels like a great time to me. it would feel great to me as well, as usual. >> ccme on up. charles: i will. >> you are fantastic. thank you. >> thank you, charles. charles: when government is watching you, here is a question for you, who is watching the government? next a lawyer suing because

agency meant to protect you is doong anything but.

charles: this agency was formed to protect people, my next guest said it is way too powerful. they are suing the bureau -- the consumer financial protect bureau, kimber please. who got you -- what started this? walk us through this series of events that brought to us this point. >> well, i represent people all over connecticut, they come to me, to represent them. and to protect their confidential information they have given to me, everyone i think in america, knows what attorney-client privilege is, when clients come to me, they

expect i will keep their confidences,' fortunately what happened here is that, the -- unfortunately the government has overstepped their bounds, and tried to come in take that confidential information that my clients have given to me, in confidence as their parent, that is what brought us -- as their attorney that is what brought us to where we are today. charles: your clients in connecticut, are they hedge fund managers wealthy people? why would consumer protect financial bureau be interested in your clients? >> no, actually, the 07 sit. my clients -- opposite, my clients are near indigent, and lower middle class families who are in middle of financial crisis, which is destroying their lives, by the time they come to me, it is destroying their lives and marriage, and families, these are the people

next door who are barely getting by, these are people that i representative, these are people that government want their information. charles: randy, how does this happen? they pull a name out of a hat? i cannot see why she would be targeted on the face of it. >> this is an agent gone way beyond its mission our lawsuit targets, really emanating from structure of the cfpb we think they look typical oversight, it does not have types of internal checks and balances from an agency like ftc . with a mull -- >> what -- what know that the goal of it? they were putting it together saying this agent are not powerful enough that was not powerful enough we need a

superpower full agency on go out, destroy and protect. >> that is the idea, it is an unconstitutional idea, our system is about checks and balances and limited power. not a super agency that goes on does what it wants. we see two steps, first demand for this type of data, this is personal financial data we have information to indicate they are ag gateaguanga -- agragating it. and lawyers practicing law this is not pervue of a federal agency, we think that is all sort of a consequence of fact there is no sufficient checks and balances. charles: kimberly, what support are you getting so far within

lawyer community. >> i think that everyone is concerned. this is a slippery slope. if this government agency is allowed to step in take, middle america's information, at will without control all attorneys in every type of practice of law will havv to be worried that, we no longer have an attorney-client privilege,,@ people are concerned. charles: we hear a lot of things happening in dc are unconstitutional, working through the system will take a long time, will you be able to keep your klei client's informan confidential. >> we're doing all we can to keep it confident. >> randy, your firm right now representing two clients, but this seem like something that could spread like wildfire,

could that grow into a large class action type of event? or keep it small? >> we're trying to do is ask court to expedite proceedings and enter a preliminary injunction to stop the agent right now until the court has time. the agent got its first director mr. cord a, on july 16 he was confirmed, they have to have a senate confirmed director they are ready to fly into action. charles: he is chomping at the bit, waiting a long time. >> he has been at starts gate, we're asking the courts to just hearing.rakes on until we can charles: i have to tell you, kimberly, everybody understands attorney-client privelage and confidentiality, a corner stone of america, this is not the direction we want to go in, thank you, we wish you luck, come back keep us filled in

appreciate it. charles: thank you. charles: remember the pick of anthony weiner that he texted out. guess what more are coming out, they are worse. is he toast? they're the days to takeare ofe business. when possibilities become reality. with centurylink as yourrued partner, our visionary cloud infrastructure and global broadband network free you tfocus on what matters.

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and blood clots in the legs. mmon side effects include skin redness or irritation where applied, headache, diarrhea, vomiting, and crease in psa.cell count, ask your doctor about the only underarm low t treatment, axiron. charles: the scandal that is now more scandalous, there are more texts and pictures, they are so bad, we can't show them to you, is new york mayor hopeful toast? we ask john david ree jedediah . >> this is nee york, they still glorify bill clinton, do i think it will hurt him?

yes. do i think it will help his wife stood by him? absolutely, we never know what is next with anthony weiner, but he is a disgrace, he lied to us, to his wife, and american people, and regardless of what do you i in your living room, if we can't trust you to actual us the truth about this, what can we trust you about. charles: julie, you dressed alike, maybe you are thinking alike? >> i think that new york voters are forgiving about personal foibles, the question is, is this something you want consantly hounding your mayor, it distractions from business at hand. charles: that happened after the other scandal broke, he was contrite, and apologized. what is wrong with him. >> there are issues that i don't top grasp for begin to think

about, more buzz his wife -- nor does his wife, horrible. >> i would have loved to see her extricate herself. not stand beside him. charles: you know, new yorkers are forgiving and americans are, but none of us yet have seen these pictures that i understand are -- >> i saw them. >> oh, excuse me. >> people have to understand, when people show you who they are, believe them, he has shown us he lacks credibility, as a candidate, and as someone in was, he did this not only when he resigned from congress this happened after the resignation from congress, he have to recognize, that he has

rationalized this, and tried to tell voters, but i told threw would b--i told you there woulde that tells me you cannot accept responsibility, you tell us, i warned you. you did not tell us you bought her a condo, and she is 22 years old, and he sense her pictures of his last name to her, come on this is absurd. charles: his name was carlos danger. >> you have to give him credibility for -- >> carlos danger. >> i can't believe you have so much disrespect for the voters, these are people, what about people whh pore gave yo fore ga, you know what i'm going to give yoo another shot, and media that

said he is a changed man now, he cares about his wife, and family, you have to say, he has proven himself time again to be a disaster. charles: julie, how can a politician respect voters if they don't respect the themselv, but we have a habit, one hand is forgiveness but on other han, we keep voting in these kind of guys. >> anthony weiner is leading in polls right now or was until today. i will tell you why, it is because people know his name. why? not because of his great work in congress. but because of the whole celebrity culture, "people" magazine, why? because he had a whole scandal. so, if you are a celebrity right now, either side on the aisle, odds of you becoming a

congressman mersenator is better than someone mosticking their nose to the grind stone. charles: we put up a poll, christy quinn now taken a slight lead, jesse, what do you think? does this speak to new yorkers or voters or maniac? >> he is narcissistic, people have to think about, not that he just lied to voter, but his wife, she was pregnant when he resigned from congress, this went on after he said he caught redemption, counselling and help then he did it again. the temptation is too deep for him to resist, getting on-line, and doing inappropriate activities, pictures with sexual conversation over telephone, promising someone to purchase a condo, this is beyond what he has done to voters, how can you trust a man who would lie to his own wife to this extent.

charles: we'll find out, you are fantastic. audience, watcher my special thursdays, making your market, 8:00 p.m. thank you for watching tonight. dennis: tonight on "the willis report." find out why unions are calling it an all-out war. and the food police strike again, taco bell dumping kids meals. what is nice, no more happyy meals in a fast fo establishment? you can't have a govnment program without waste,raud and abuse. this one is ha to stomach all coming up tonight on "the willis report."