tv The Willis Report FOX Business August 4, 2013 4:00am-5:01am EDT
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show for you right here next week on fox business. in the meantime, i hope to hear you on the radio. have a great weekend. here's. ♪ gerri: hel, everybody. i'm gerri willis. tonight on "theillis report" it's tax holiday time. eliminatin sales taxes and giving consumers a break. also, making sense of complex cell phone contracts. you might be better off not signing them. and dinner from a test tube. consumers are about to get their first pay stub. we are watching out for you tonight o"the willis report". ♪ gerri: all that and more.
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first, our top story. x factor creator facing the music. the discovery of the simon callow, a multimillionaire music mogul was having an affair with his best friend's wife is being slashed on headlines and the route newspapers around a world adding spice to the scandal. she is pregnant with his fir child and her estranged husband has named cal in a divorce papers. now, this is outlandish behavior from all sides, but there are lessons we can take away from this. here to weigh in, fox is legal analyst, divorce attorney, and welcome to you all. a great group of people to talk about this. i want to start with you. so clearly he does not have a corner on the market f stupidity, but he sure is a trailblazer when it comes to this. i want to ow how much money he could lose and all of this. >> a lot. he has 350 million that has been reported. what will happen, but with the
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divorce proceeding in the child custody proceeding. we will find out exactly, forensic analysis about how much money he has. child custody is usually set up on the lower grade. you have s much -- more money than god. he will be paying a lot of money gerri: but let me ask you. is the biggest issue the child or is there somebody else coming for his money? >> it is secondary. there is no paternity test. once we find out and determine scientifically he that he is the father of this child, then there will be a child support issue and hearing. first and foremost it is how did they get divorced? get seasick and i'm going to take less becausese i don't want him to testify during the vorce hearing and open up all of this. that is what is happening. we can late, but -- can't wait. but in the courtroom every day weon't want him to be testifying. so subtle. get less out of the deal.
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walkaway sayingveryone found out you cheated. gerri: we already know. apparently he said i will take care of this child. to you. it is so interesting. 35million estate. the husband sayg that he once -- clearly is trying to get himself of all that having to pay anything. what is at stake here for simon and the wife? >> well, certainly it is a public-relations nightmare. but there is a lot of prejudging going on. first of all, his track record in other situations has been good. he has not run from responsibilities. there is no indication he will do that here. gerri: to that point, that tv hosts in eland. he gav her $9 million. a fiancee that he also supported. this is a guy who makes good on his promises. he has already said c'mon going to take care of this child.
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would it be a trust? >> exactly. a trust could be t up. he won't g custody because they are not married. gerri: i don't think he wants it. >> the other thing is alienation of affection with silverman to the husband because he could fi a whole separate lawsuit. gerri: would that be? >> alienation of affection. you took my wife. the medieval rt of standard, but it is possible. >> this is what it will be. he will h of custodial parent's rights. albee's advocate. a legal standpoint,hat he did is dgusting. but she is obviously very currently. we will happen is you will pay a lot in child support over the minimum guidelines. the child shouldenefit. child care, nannies, cars, clothing. this child will not want for anything. trusts, college funds. gerri: what about her? >> she doesn't work.
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>> the point is, first of all, even though there is no fault divorce in new york, our conduct may obviously play into this. but from the standpoint that don't see why we a prejudging him and all of this negativism other than getting involved. she may embrace. he may when we take care of this child. gerri: well -- >> she has that - he has not denied. they used to travel together. come on. he honestly and the really bad plan and poor judgment when he did this. you can't really -- i mean, you can't support this guy for doing that. >> i'm not saying that. but i think there is prejudging going on. the divce settlement less than she would -- less than the divorce settlement that would have been issued yet have the divorce and the child. you're the one that wrong your husband because you're right. new york is no fault.
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he didn't go with no fault. even with adultery. this is the fault divorce. unusual estranged. gerri: we do it a lot of times because we want to pay back that paramour. on pern that actuay cheated on you. everyone will know about it. that is what we do. research. that is what happened. >> jurisdiction over this guy. >> what about him? the fee is named as a respondent. >> legitimate. so clearly a few problems. he has done this sort of thing before. what should he do financially to protect himself if he know that occasionally things get out of hand and you want to protect your assets from her husband. or should you do? >> a tough call because with every does now will look like he is fighting it.
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>> the insurance policy, go to the insurance company and say i won an insurance policy. gerri: life insurance for child support because god forbid he has to underwrite that. >> all of his assets. he would not have control over it. the end of the day nobody would. >> anybody that has a lot of money has to anticipate this. >> any type of trust to protect your assets from creditors. fortunately. >> while. i'm glad we did this. thankou. great job. thank you so much. well, i hope you heard that. coming up next, a big tax breaks this weekend, especially if you live in one of the states. all about it. did you know there are over 700 wireless plans to choe from? picking the right one is a nightmare. how do youo that? we have you covered. ♪
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luckily there are 16 states offering sales tax holidays, wi many coming up this weekend in states like florida, south carolina, alabama clothing, supplies, and they vary by state. that's pretty cool. most state sales taxes fall between four and 8%. that is a great discount. tips on how to get the most of those sales. kate rogers. good to have you here. i know everybody out there is trimming their budget this year for back-to-school. i hear they will spend 8 percent less. if you use these tax sale holidays you could save a ton of dough. let's get to tips on how to save money. >> a lot of different ways. families will be snding about $635 on average per kid this ye. the first way is to buy discounted this -- gift cards. gon sites. giving cards for certain
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stores that are discounted by about five to 10%. you use them during the tax holiday and go get a double discount at some stores. gerri: also, checking circulars, newspaper ads, for on-line coupons. you're trying to double down on savings. >> if you know you want to shop at macy's and are in one of the 16 states that will be offering a tax holiday get a coupon and go and double down. gerri: shop early because everyone in the mother will be out. >> experts say it is not quite black friday crazy, but if you have a child or a teenager in particular the wants certain sneaker or type of clothing in need to go early. a lotf sales start this weekend in alabama, arkansas, florida. they say you should go on the number one. that would be august 2nd, today, tomorrow, sunday. really take advantage. gerri: we have to find out. you s also online discounts are key. andrew napolitano no. >> we have to be in certain
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states. some of them are more lenient. all the breakdowns for the 16 states. it depends on what state you're an m-1 state the stories in the you're ordering from. gerri: that's cool. i did not know that. check to see which items are exempt. >> exactly. we have these tips of there. in certain states like texas, there will have clothg that will be exempt. but certain items like climbing boots will be part of the tax holiday. climbing boots will be included. gerri: the devil is in the details. >> check what you want and make sure it will be able to be discounted during holiday. gerri: thank you for coming on. appreciate it. great job. well, i case of buyer's remorse. we've reported capitol hill anxiety after going on the obamacare insurance exchange since it was on kick -- on fair. the white house saying today that the office of personnel
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management has decided lmakers and their staff will go on to the exchanges but the governmen will keep subsidizing coverage. my next guest says ts fight is just starting. the heritage foundation. thank you for coming on. how is it possible that this is just getting started? at how we were done. the office of personnel management has ruled. >> we have not actually seen the ruling. they have three years to rule. they have not. now suddenly at the end of the game they are. we are you in a paper, my colleagues and i just published, one of my colleagues being a former general counsel of the office of personnel management, they don't have the legal authority to do it. one of the many messages in obamacare. congress screwed it up for themselves as we as everybody el. now congress is trying and the administration is going to give them a fix. it looks like the administration
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is saying we will do this anyway , do sometng we're not allowed to under law, but we are not worried becauseou will benefit, you, congress. you won't complain in the public won't know. gerri:hat do you think this is being done in august? >> so that y and i don't know about it. gerri: how did ty think it will get away with this idea? the rest o america has to play by these rules, but when it cos to congress and their employees, no way. >> this is the thing. thus the problem. there are a lot of arguments that said the pvision does not work. the other provisions that don't work for businesses, unions, they're complaining. that i thehole problem. i think maybe what happened is that the fact we're coming out with this analysis forced their hand sooner thaan it waed to. gerri: very powerful. the deal here, the botm line for taxpayers is that the government pays 75 percent of premiums for health care.
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workers in congress as i understand it andow the office of personnel management says the governnt will keep paying. you say,, before i go any further, maybe not. congress has to rulen this. it seems to me if your taking people out of the pot that should be paying in, doesn't that hurt taxpayers more? >> what happens is these are employees. the program runs. this is true of all federal workers. they pay 75 percent the premium, like anybody else, up to a certain aunt. the problem is not so much the money. the problem is that congress, like so many other place in this legislation justice of together job. it and know what they're redoing and in of wrigley kick themselves out of their o health plan. okay. fine. they've done a lot of other silly things because they did not pay attention. now they're the only ones that get a deal over. but the consequences for
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businesses, insurers, hospitals, unions. i mean, why don't they did a duul over? sohat they're trying to do is avoid wt really has to happen. gerri: you know why they don't want to do that. they're afraid busy developing flames. republicans, yet again, the 40th time trying to defund obamacare. >> and this is why people keep calling in obamacare, but if you think about it this lousy bill was written by senator reid. we show them the legislative history in great detl, you can see exactly how the senator put this together, grassley actually tried to fix it and got voted down. again, what happened. when scott brown won in massachusetts and then no longer have the filibuster proof majority it was nancy pelosi is said take the we have an shove
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it through. that's what they did. gerri: of fascinating study. a legislative nightmare that exists. unfortunately where the ones picking up the tab. eat job. thank you for coming on. now we want to know what you think. here's our question. should congress play by its own rules? log on to gerriwillis.com, vote on the right hand side of the screen. all she the results of the end of the show. we have more. would you pay 35 percent more for something tha is actually worth less? it turns out millions are. we will explain what's goingn there is smart phones could be killing your relationship. i believe it. coming up. ♪
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♪ gerri: well, the most confusing pricing options ever offered to consumers. you know what is wiress phone plants. one carrier, at&t, offers 30 different plans and that is just for an individual. if you are a family comestible the choosing the right to -- right plan can be real headache. the "wall street journal" just concluded a huge investigation. welcome to the show. great to have you. 700 plants. 688 is the actual number if i'm
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not inflating it. i have no idea how to even get started trying to figure out the right one. >> we were startled when we went through this analysis. took us three months tout this together because there are nearly 700 different combinatio. at&t alone has more than 500. how is the average consumer supposed to figure this o? gerri:c and interesting thing. they have plans that contradict each other. >> if you look at the family plans, and is a legacy family plans, nearly 4 40 percent of thos plans are aually more expensive than the mobile share plans that at&t offers wit more data and more voice minutes. there's all these conflicting plans. sprint does the same tank. part of it is when you have confusion in the marketplace people don't know what to do. they end up staying which is with these carriers want. gerri: analysis paralysis. that's a good way to put it. you mentioned that the wall
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street journal has a calculated that people can use to navigate the process. where do we find that? >> it's free. and again, we are trying to simplify this and bring transparency to the marketplace. we saw all of these plans and people complaining constantly, we tried to find a way to make it easy. it's four simple steps. you can type in the number of lines you need, how much text, voice, and data. t-mobile, at&t, verizon, sprint. gerri: i may n know the right answer to that question is the other problem. shouldn't he just go on limited everything? >> it's a good question. sprint and t-mobile both doubt that. their networks are weaker than at&t and verizon. most people, you're really talking about dataecause most people with their smart phones consume a lot of data. most people use under one
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gigabyte of data, which is not a lot when ou look at the tiered options. so you really are often paying a lot more than you should. a lot of people -- research analysts say people o overpaid. most consumers probabl are. gerri: i have a theory. i think you're trying to confuse us of the king give more money. >> that may be part of it. the carriers will say that, but that's when you looked at data. the tiered options. the carriers like t-mobile and sprint to are desperate to get peop to come from verizon and at&t will do the unlimited and take it. the other carriers realized by having options, you'll probably pay more. gerri: i think that's great advice. you have to tell us one more time or go for the speculator. you have to come back. more questions for you. i'm not done yet.
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thank y. well, now it's time for a look at the stories are clicking on tonight. michael ell and his buyout partners are upping their d t take dellomputer's private here. the new bid is $204 billion includes a special dividend for shareholders. shareholders will vote on the latest offer in september. the federal government along with 33 states are getting closer to deciding how to penalize apple for price-fixing. the fed accused apple of conspiring with publishers to up raise prices. among the remedies proposed making it easier for consumers. delta airlines said friday it but fewer passengers in july. cost-cutting and baggage he's to help the airline make more money. delta is the second-largest in the country behind united ntinental. and the stock market ended the week on a high note. dow and s&p 500 closing a new recordighs. even though the latest jobs report was weaker than most, and
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♪ 'cause we know how to jump ♪ ♪ we'll roll it out ♪ 'cause we know how to skate ♪ what to eat ♪utnow ♪ we'll swap it out ♪ we eat healthy stuff ♪ ♪ can we do it? ♪ yeah, you know that we can! ♪ ♪ can we do it? announcer: just moving a little and eating better every day can help make you and your child healthier. search "we can" to find doable tips and activities that you can use every day. ♪ gerri: consumer alert. time warner cable as black o the cbs television network in a major markets affecting milons of customers. this is what those viewers are seng right now when they tune in to cbs. faillng to reach an agreement by the 5:00 p.m. eastern deadline causing blackouts in new york city, los angeles, dallas, and other markets. the two companies have been negotiating over fees paid by time warner for the right to carry cbs programming. cbs says it deeply regrets the
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ill-advised action and accuses time warner of negotiating in a combative and nonproductive spirit. time warner is warning it could put another network and a cbs but permanently. the cable operator said this is in talks with several programmers take this lot. moving on. chances are what you're watching this show you were also scrolling through a mobile device of some sort. according to a new survey americans are expected to spend two hours and 21inutes per day this year on their mobile devices the size making calls. now, what you might have a cozy relationship with your device, how is it affecting your relationship with the people of around you? with more on this. >> it's a pleasure to be with you. gerri: this is something now worry about. not only do i see my own family, but everywhere i go. people obsessed with these devices, and then never seem to look up to talk to somebody. >> that's a problem
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relationships. we are now in many ways this in one another, if you will, disrespecting one another and relationships. i have seen folks who want to talk to one another and the other partner will actually look at the mobile device as a way to not even get into the discussion gerri: i have seen that. i have seen that, and it is @%most -- it is a disconnecting, and it is also disrespecting, i think at the end of the day. i want to show some numbers. digital time surpassing television. people are sppnding more time on their devices than they e with tv. take a look at that. this is really a pretty young trend, but it is always seeming to take over. >> were seen at cascading effect. more accidents. on the way over here i saw the driver and a passenger on mobile devices sexting away. that is bad. secondly, what is happening is this disconnecting from one
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another just becomes worse and worse. and we are finding that peop are complaining that there are more addictions to these mobile devices. it. gerri: addiction? >> in addiction. gerri: i think it's a choice. >> well, not if you have the world than t palm of your ha. what would you rather do? >> guest: your partner you may be having some intimacy issues with him, emotionally speaking, of course, or just plugged into the world and talk to anyone else. and the social media you're talking to a bunch of other people so these are real ssues. people putttng in their own personal information about the relationships out into the world instead of disiscussing it 1-on. gerri: of solutions. wenow wh the problem is and experience it every day. how do you gate your family to reconnect it everyone is on a device? >> you have to have rules.
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ground rules come as we say, with any situation or couples. , a certain time you have to put the device is down. you can't turn them off, but you can put them down. at the dinner table they should not be allowed to read at certain times of the day where you have that 1-on-1 time. you are invited, but the mobile device has to stay outside. going on family picnics or o vacation have a mobile-free time. we he to follow these rules or our rationships will continue to suffer. gerr and it's up to mom and dad to make that happen. >> except mom and dad. >>ell, they're the ones laying down the law in any family. so the new thing. does this make it all worse? >> i think it makes it much worse. kugel glasses and people with certain bracelets. yes. that transmits information. there is nothing wrong with being in the future without
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devices. it's really about managing them and not letting them manage us. gerri: i love that idea. they're working for ross. are not working for them. thank you for coming. good to see you. >> great to see you. gerri: can stuff. well, earlier today we were all talking about the story. the dismal job report reveals hiring slowed in july. stocks still managed to eke out improvements. is totally confusing. economic news bad. the dow posting its 19% 0. 1% increase to close. the s&p and nasdaq also ending in the green, but just barely. our economy adding 160,000 jobs in july missing enomist expectations. the types of jobs added are no cause for celebration. joining me now, scott martin, chief market strategist for
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united advisers. thank y for coming in. appreciate your time. we look at these numbers. 0,000 jobs created. i know the rate was down, but that's probably not the most important thing. hourly earnings fell. may jobs gained -- made job gains were down. what do you make of all these news? >> you are making me depressed. i think your point is well taken you said it earlier. anybody with half a brain that looks around the world of this economic data coming out of the u.s. is like, there's no way want to get into stocks. the investor at home, the worst this date is the better it will be for stocks because from the fed is, pumping this money into the economy. you're rht, they have this target. the unemployment rate which is just a few tenths of a percent off. we will get there because there will be millions people that will drop out of the labor
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force. even then, the fed will not do this tapering, this injection of money of bec they know that the ecomy is bad. grri: and you make a great point. we will get their sunday, but that does not mean the economy is better. that's not what we have seen today. less talk about part-time workers because we have numbers tonight that blew me away. jobs so far in 2013, the part-time proportion, 77%. 77 perce. i mean, this is just unacceptable, don't you think? >> there is a measurement out there called the you six that everyone should look at. you don't want to let get the overall unemployment rate. that number is 14%. that includes part-time workers plus those marginally attached to the work force. those other groups of people that are out there that are really affected economically by the situation. gerri: listen.
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i am so disappointed in this that i will tell you, regular america looks to what goes on. another record high. the news for regular americans is so bad. who are those people? what are they doing buying and selling stocks? why is there such -- you talked about ben bernanke. at what point will wall street say, you know, this has got to get better? >> well, the administrative policies have not been great. congress on both sides of the aisle has done people no favors. median household income is down since president oma got into office. one big asset is our homes. those are down. things that are really big factors are not goi well. the fat cats on wall street are getting fatter and fatter, but the policies, higher taxes and more rulation, we can all agree is not working. gerri: the policies are benefiting the wealthy more than
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their benefit in the mdle class. that's right. they are n making t impact that the president or saw his car is like us to think because the numbers speak for themselves gerri: and they'y're not saying anythi nice. thank you for coming on. good to see you. >> all right. gerri: have a goo weekend. up nex july new survey that may change the way you think about investing. syntheti, the twist for dinner. really. gerri: in úúúúúúúúúúúúúúúúúúúúúúú
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gerri: you wked hard for your money, and here on "the willis report," we are making sure you get the most for it. and new study by crles robb finds that very few investors comparison shop for bonds despite potential savings. you will want to hear about this. joining me now with ways to get the most for your money, senior
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vice presidents of charles robb. thank you for coming on the show. the study was really pretty shocking wheyou get down to it . >> absolutely. it was pretty shocking. we think about investors today. even more savvy than they ever have been. they used to comparin shop and make sure they get the best deal, particularly in this challenging economy. what's remarkable about it is, there are three times more likely to shop around for a $500 barbequed and they are to shop around for the best deal on bonds which may cost them thousands of dollars. making it even moremazing, the current low interest-rate environment where investors are looking around under every rock trying to find a little bit of yield, saving a few percentage poin on bonds can make a big difference. gerri: you have to get the best price. that's the bottom li because of the end of the day the yield is so tiny. you have to get the best price. we complain on the show all the
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time about the uneven playing field when it comes to buying stocks, but elected bonds and it's even worse. such an opaque market. buying individual bonds, the market could be anything. tell us why that's a problem. >> that's a gre question. unlike the equity marke which, as younow, is an exchange market. you buy a share of apple and pay a fair price. the bond mart is an over-the-counter market which means that every dealer is free to charge whatever they want under some certain broad parameters. and so that can vary dramatically from one to the next. it can bas low as a dollar. some will charge 20, 30, $40 which equates to two, three, or four percentage points. when you consider that they yield two and a half% on a corporate or five-yearni,
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you're paying your broker a year or more of interest just to buy that one bond. gerri: a want to pull from your service for a second. if on the average consumer and the buying a car, 80 percent of it comparison shop. 77 percent comparison shop on airline tickets. 71 percent comparison shop on a high-definition tvs. we start looking at financial goods like mortgages. what are people doing? >> you seem mtgages are sort of in the range of other consumer products. gerri: 55%? >> yes. credit cards are a little lower. and in the bottom of the list as bonds. that just goes to if you're going to go out and buy a television which eed a couple of months ago, you type in the model number and you have four or five different choices. ere is no analog, at least until recently there has not
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been anything like that for the bond market. it'sertainly more challenging. that's also changing now. gerri: and you guys have a product out there right now the you're talking about to allow consumers and investors to get a better view into the bond market. tell us about that. >> well we have is a bond sores whichllows -- it's essentially if you, or want to show as a bond, perhaps thinking about buying some morales, we can look out on theemarket and do that comparison shopping for you, scour the market trying to find the dealers and make sure you're getting the best price. it. gerri: i like it. thank you. interesting story. who will truly have to follow. >> thank you for having paris shop even when you're buying investments. no one in ten americans point to their co-workers as the biggest source of their workplace stress
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. gerri: tonight's top five, number five, off a slob. face-to-face. you should see my office. number four, nasty aitude. a person's bad attitude rubs off on other people off. number three, it makes. workers. office romance, you knowhat's the problem. working with a lot of people of e opposite sex increases the possibility of divorce. number one, trash talk. nearly one-third of all employees get company news through office gossip. -gossip is three times more common as positive chattered. a real buzz killed. and that is tonight's top five. still to come, scientists are cooking up new ways to satisfy our growing hundr for me. people will t their first taste of synthetic beef.
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♪ rri: all right. here is food for thought. scientists are serving of the world's very first test to burger. this monday an anonymous person summer and london will have the chance to each synthetic meat. cost $384,000 to create..3 joining me now, dr. dmitri alden, surgical oncologist focusing on the liver and pancreas.
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you are an expert in your own right. are you as crest out about this as i am? >> i'm mostly fascinated. the reason i'm fascinated is because we are very close to making a real artificial production meat which means that the technology could be used in medical fields, i feel that is really geared to me to produce solid organs in the future, available for transplantation and save lives. gerri: use the power for good. in the meantime, the hamburger is bad for you? what is in them? if they are not from a cow, what the heck is this? >> they actually from a cow. there may add a stem cells. year after the slaughter of the council r you can make themselves will be used. however gerri: who thinks this is a good idea. i'm a little confused because
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and thinking of it cost 3,804,000, we c afford that. if. a lot of research made. we will be able to bring the cost down and make it worldwide available. let's get down to what's in this. it consists of 3,000 strips of cultured muscle tissue. takes nine weeks to grow. i already gave you the price tag on that. is there any impact on that eating? would it be bad? any reason to think is right in food? >> today in the laboratory if you read that to -eat that particular burger what are you. one day -- gerri: it will be an industry standard? about this was just a one-off sort of funny -- >> i think the future is he.
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the future is here just like we have a lot of artificial things in the market. it is very important to understand that as the industry gets its hands on it, there will be a lot of variety of things that will speed up the process of growth. instead of nine weeks the industry will want to grow it in two weees, which means it will use antibiocs, genetic modifications and other substances that we really don't know what will be used in the production of that meat. as a result of blood down the line i think we will see some unusual diseases and possibly cancer. gerri: how soon might it be on store slves? >> they say that probably within ten years the technology will become available. i am not as optimistic. they were talking about a quarter century. gerri: i'm talking labeling. i need to know what's in it. thank you for coming on.
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>> earlier in the show we talked about coverage to the obamacare exchanges. we asked on gerriwillis.com, should congress be forced to play by their own rule and 98% said yes and 2% said n. log onto gerriwillis.com for online question every weekday. here are some of your e-mails. home ownership should be the primary goal of every american, tom says. it is part of the american dream
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. and ron from louisiana says there should be no death tax. howe going to take from these idiots in the federal and state government. send me an e-mail at gerri willis.com. finally today's jobs numbers. the economy stinks. if youare in the jobs market, you know this is true. much of he part-time work is retail outlets and you get the picture. as we noted tonight, so far the overwhelming majority, 77% of all jobs created are part-time and that means no pay and no benefits. at that pace it will take seven years to close the gap left by the recession. it's not good enough. t by a longshot. the president spent the better part of the last two weeks talking about jobs, because the
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economy isn creating them. the policy seems to bebe benefiting superrich rher than our vanishing middle class. that ♪hat ♪ >> the president is out giving a series of speeches to his state concern of lack of jobs. most of his ideas are nothing new but his grand bargain he outlined lower taxes on corporations after raising taxes on small business owners. we're talking does the president really know what it tes to grow the economy, right here and right now. >> tom: thanks for joining us. here is at the top of the stack. we are all routing for job growth but you can't grow jobs unless the economy grows. it's growing but not enough to give employers a reason to hire. most economists think the economy
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