that is my two cents more, that is it for tonight's willis report. have a great night, we'll see you back here tomorrow. lou: goo evening, thank you for administration continued roll back of "law & order," sends attorney general eric holder to reveal latest initiative to cut prosecution of person drug crimes to withhold information and certain prosecutions about amounts of drugs involved in the crime. to reduce prison sentences in some cases. an to free some particularly alderly inmates not -- elderly inmates, not convicted of violent crimes for humanitarian reasons, administratn acting to reduce drug crime sentences, obama white house ordered federal prosecutors to revmp statut to help shield certain

drug offensers from the mandatory sentences without congressional approval, here is attorney general holder today speaking before the american bar association. >> i have to today mandated a modifition of the justice department charges policy so certain low-level, nonviolent drug aend toers wits offensers o drug cartels or gangs. lou: how will our attorney general fine drug offenders who use drugs that have not beenn@ provided by as he put it large scale organizations, gangs and cartels. does not their useie them to those trial organizations and enterprises? this administration displaying in some cases utter disregard for legislative process with which to changeaw, last month

president suspended mandate portion of his signature healthcare l, and defied congress, and dared congress to stop him, say, i'm not concerned about their opinions, very few of them by the way are lawyers much less constitutiol lawyers issu as i noted them a third of the house are lyerslmost half in the senate. but never mind. also last month, supreme court clearing way for state-base voter identification laws, by removing a vital provision of 1965 voting rights act that required several states to seek preclearancy from department of justice before making changes to their elect law, holder calli supreme court decision, wrong. and he is fighting new voter i.d. laws in texas, and north carolina. among others. then, present obama's decision in june of last year, to halt de

deportation proedings for the illegal immigrants who came to u.s. back in february of 2011, president decided that defense and marriage act was unconstitutional. instructing his attorney general to noolonger defend the law in court. obama administration ordering centers for disea control to research gun violence, which congress had halted nearly a decade and a half ago, and went around congress to waive the work requirement in welfare ogram, attorney general holder didontrict himself in a substantial fashion, federal prosecutors cannot, and should not, bridge everyase or charge every defendant who stands accused of violating federal law, some issues are best handled at state or loc level.

lou: nearly all issues are best handd at state or local level. but the attorney general statements dismiss rereality of a year wrong involvement by the obama justice department in prosecution of george zimmerman. mo than 2thousand federal inmates populate america's prison almost half doing time for drug and drug-related offenses, now more than 1/2 years since he took office president obama decidedime it right to reduce mandatory minimal sentences, james rosen with our report. >> we in federal government can become smarter and tougher on crime. >> to thosens attorney general ericolder announced new

guidelines for federal attorneys to follo low level nonviolent drug offensers, individuals with no ties to gangs, kin syndicater cartels. >> they do not serve public safety, they let's be honest, some of the enforcement priorities we've set had a destable rising effect on particular community, largely poor and of color. >> reporter: federal statistic show while american population grown by 33% since 1980, u. prison population has grown by almost 800%, and african-americans make up 12% of u.s. population, they comprise nearly 39% of all federal and state prison inmates. holder cited come saying, in directing jusce department to consider early release for elderly inmates who are non-violent and have unevent

fully served significant portions of their sentences. >> it will enable to us use our limited to resources to house those who pose a greatest threat. >> reporter: federal prosecutor will craft indictment that may emit a key detail. such as volume of a key drug, so as to avoid triggers a mandatory minimum sentence. >> if clients i represent in federal criminal cases personally left out information or misstated information some document they filed with the government, they could be charged with a felony, attorney general of the telling his prosecutors to do the equivalent of that to avoid triggering the mandatory minimuus. >> reporter: oth thoug notes fel prosecutor handle 5% of federal prosecutions and america. >> i think this istrict attorney across the country are

shaking their head, almost impossible to get a u.s. attorney to take a quote, low level drugossession case. i see his announcement as telling federal prosecutor to not plus cute ces they are not prosecuting. >> asked why the reforming were undertake en now, when prison overcrowding and related issues have been well-known forecade, saying that darren 1 10 - attorney general took similar measures years ago. lou: james rosen. >> whilehe attorney gener focuses on changing a criminal justice sim, fox news is reporting, that the obama administration's lax immigration policies are having major consequences on our boredder with mexico. -- border with mexico, illegaa immigrants are flooding processing centers, claimin asylum. to put detainees up in hotels at

taxpayer's expense, this number of people now seeking asylum will swamp the system. they say, it is planned and they believe in many instances coordinated. fox news correspondent william with our report. >> reporter: illegal ill grands are not typically treated to taxpayer funded hotel rooms but after 550 immigrants claimed asylum in one week near san diego, armed agents were forced to escort a flow of families to hotels. >> this has to have been orchestrated by somebody. this is beyond belief that dozens or hundreds of thousands of people would simultaneously decide they should go to the u.s. and make this climb. >> a i acai or is has a well for of futur persecution.

>> reporter: asylum claims stop any deportation proceedings among micans such claims are rare, and 91% are denied. critic say the are meant to overwhelm the system, andin a immigrant a temporary release, pending a heari for which few show up. >> w we have a large number of people be o blend back in to the community. >> reporter: immigration agencies transferred 30 illegal immigrants to this hotel and 70s others released to addresses in california, texas and florida awaiting the immigration hearing, they claim they are following the law, an official told fox the legal/32 hole for credie fear and broad and low. -- have the tune of to have their case heard. before an immigration jud.

why now? well last week the administration approved the release and stopped deports 9 mexican nationals who claimed asylum. many believe that decision those were dreamers, you know president supports policy they spent some time in u.s. they should be legalized many believe that ruling provided the template, and also, the precedent for the surge we're now seeing, opening the floodgates, that is the fear. lou: opening flood gates, and these detainees, those seeking asylum, are no longerimply, well, within the pere of what would have been the dream a at had been passed. >> correct. the mexican nationals who were allowed in, they did spend some time here, but 7 those 9 were living in mexico, now theylaim

they can't live there because they face persecution, why some feel disinjen wise about the decision, and many feel they are entitledo live in u.s. because %-others living there who receid a temporary reprieve until hearing. lou: thank you very much. new develop in two high profile criminal trials, a federal jury found boston mobster james "whiy" bulger guilty of committing or playing a role in 11 murders that dead back to 1970s, 83-year-old faces life in prison, his attorney said he ill will appeal. >> and more than 10 witnesses took snd on day 5 of the fort hood mass shooting trial of major nadal hasan. some of those wounded in the attack described how they initially thought that shooting

was a training exercise. >>o far hasan who represents himself has said little in his defense. gives a 5 a speech on why he and president obama are entitled to set the rule of law or ignore it our dobbs law panel, next.

lou: north carola's republican governor pat mcrory, signing into law today o of country most eensive voter identification laws requiring north carolin voter to show government-issued photo i.d. at polls and shortens north

carolina early voting period from 17 t10 days, just hours after signing the au and 2 other groups announced they filed a lawsuit challenges the voter i.d. law. justice department suggested it may as well challenge it. by the way justice department es not have a good record on challenging the i.d. ls. in aadition t justice department deciding to ignore the rule of law concerns mandatory prison sentences for drug offenders. for more on the attorney general so-called smart on crime policy, i am joined by legal analyst arthur idalla and criss christian adams. exposing racial agenda of obama justice department. od to have you with us.

we have heard from a number of people today, the basically, as controversial as this seems, that the attorney general is really asking prosecutors issue u.s. attorneys, to do what they are already doing? >> well, i think that general concept is a good concept, heading in the right direction, ste courts have beenoing this with drug laws for a long time, we did it in new york, overhauling what we called rockefelr drug laws there were too many people in jails for the drug crimes. lou: this is a novel thing, too many people to have been guilty offendi a drug law. >> americans have me people in jail than any country on the planet earth. but here is the problem. the prosecutor, chief prosture is changg law of coness outgoing in and changing the laws of congress, he is doing it in a simple way, telling

prosecutors don't put in the amount of drugs that would trigger aandatory minimum ntence. the judge has no discretion. lou: christian that is perhaps the most insulting part of what the dodg dang is doing -- administration is doing, tling prosecutor to with hole evidence. >> why do we have a attorney general always on the side of the law list, prosecutors are will concealg relevant information from the court. if the judges -- if federal judges are smart they will asksk u.s. attorneys in court, how many drugs did he have? we can debate federal drug law, but one thing our attorney general ought to do is tell the truth, he has a problem, add mering to the rule of law, and telling the truth. lou: let me tn to another challenge, that is the border surge. in asylum seekers we're looking

at what now many authorities feel an attempt to swamp the system by claiming asylum from mexican nationals who typically had not claimed asylum, they just simy crossed the border, what is going on? >> i don't know what is going on. what do we do? the foundion of america is to welcome people in as long as they come in legally and tax paying and reported members of of r society, what do we tell you, no we're not going toheck you. you. i don't know what to do. what is happening? i don't kno what is happening, do i think there is an organize the efft to crash the system, i don't want, do you. lou: do i? >> the system. >> i have written about 3 books

on it. christian? >> there is an organized effort, justice department is gives orders to cut peopleoose, once they catch them, if they invoke the magical words of i have a credible claim asylum or i am a dreamer or putting them up in sheraton san diego, they belong in detention centers before a drug can hear their claim. this is a deliberate effort to swamp the system, this is what the level ways does. why is this presidential way on side of radicals and lawless why are they always aiding the lawbreakers. >> you he a lot more experience in the department of justice than i do. however, you have to -- i think you would agree that drug and drug policies right now just are not working. something has to happen. if you look at local government systems, what has been working, is more programs, more

rehabilitation -- if you look at you know no one should get if they use a weapon, they ares talking about schmucks as we ll them this brooklyn. lo they are not being incord rated by federal government. >> they are now, and judges who want to give them a break can't. lou: christian do you agree? a job for congress not a king or an attorney general to change the law. this attorney genal is changing the law, over and above what congress is doing. there should be a debate in congress about federal mess of ridiculous drug laws. it is not the attorney general drug laws to apiece the interest groups. lou: federal judge ruled that nypd violated civil rights of tens of thousands of new yorkers with so-called stop and frisk

measure, a law enforcement measure but also, tactic. but also an anti-terrorism tactic >> a hume- huge ruling, one thing she found, showing it was either 88% of people stopped were let go. which means pice officers who were saying they had reason to believe they were doing something wrong were correct 12% of the time. she saids, you are stopping people because of the way they ok, not because youaw them in a known drug location. lou: that is a powerful piece of infer en shall logic on the part of the judge, could you have not said, they are thorough, and have are taking -- casting a wide net? you would not have to infer it was profiling. >> she took months of ttimony. all the way down.

lou: i just want one statistic that these is racial profiling? i don't' to hr the logic from a judge who in all likelihood, i won't say. christian. >> the rule of law, these are things that presuffer a country this obama administration is been hostile to the great american traditions of liberty, and honesty andule of law, every day we learn more things. lou: we do. we appreciate it. christian adams, and arthur thankou. >> turning ting to wall street quickly, a mixed, flat performance on a low volume day on wall street. does not sound very interesting. the dow down 6. s&p down 2, nazdaq gained 10, 2.7 billion shares traded. now to weekend box office, matt damon's new science fiction thriller edged out the

competition. earning 30 millions for sony. short of expectations and hopes, warner brothers, came in second th tech stoc -- 26.6 million, as in third. >> attorney general holder blaming mandatory minimum sentence for the high prison population, but could america's criminals just be getting dumber? the chalk talk answers the question. we'll leave out the prosecution, next. right now, 7 years of music is being streamed. a quarter milln tweeters are tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one at's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow.

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♪ lou: for why the -- >> thentire u.s. population has increased by about one-third since 1980, the federal prison population has grown by an astonishing rate, almost 800%. it is still growing, despite the fact tt fedal prisons are operating at nearly 40 percent above capacity. lou: that is attorney general holding announcing he wants a shorter jail time, if at all, for some drug offenders. for the past four and a half

years this administration has been talking about economic fairness, leveling the plang field. now it appears we are catching too many criminals. this is not fair to them. law-enforcement is just too good, smart, effective. attorney general holder used the example of 1980 incarceration ra as compared to today. take a look at this. back then there were 146 prisoners for eve 100,000 people living in the country. 146. now in the latest year availae, to a dozen 11, there were 492 prisoners for every hundred thousand people. i mean, is that some sort of an anomaly? is there some problem? teeseven makes it sound like a problem. now he wants to even the playing field has is administration always seems to want to do.

take a look at these statistics back in 1980. in 1980 there were 5950 reported crimes per 100,000 population. 5,950. in 2011 it is down to 3,295 report crimes per 10000. and the murder rate plummeted as well. in 10 just over ten murders per 100,000. it has been cut by more than half, down to just over four and a half murders for every 100,000 people. what is happening with the nation's incarceration rate? may be mandatory minimum sentences are to blame, or maybe your criminals are getting dumber. la enforcement is just getting too smart. what is the issue? is it really that we need to release people from prison earlier tha required under mandatory provisions? those mandatory provisions are

fundamental to of the incredible decline i the crime rate in this country. did you know thatarlier this month a tennessee man actually called police to report a home invasion when criminals allegedly took a save phil -- full of marijuana, pills, and drug money? dumber criminals. a little advice to that tennessee fellow, don't ask the police to help find your marijuana and other ill gotten gains. some advice to the attorney general, leave the legislati to congress. supporters of the attorney general's reduced guidelines int out that three of our past presidents, had they been apprehended under their current tour guidelines for drugshat there were taking, they would not have become presidents of the united states that would be a shame. bill clinton, george bush, and barack obama. it seems more like an argument

for mmre energetic greg apprehensions, not more leniency. ♪ forget the recess, forget detente. president obama's prescription is not exaly the first move toward a cordial relations. national secury analyst next. ♪ join us at projectluna.com

♪ lou: president obama denying that his relationship with president putin is bad, b then he said this about putin. you figure it out. >> i don't have a bad personal relationship with putin. when we have conversations they areandid, blunt, oftentimes constructive. i know the press likes to focus on body language, and he has that kind of slouched looking like the board to kate in the back of the classroom

lou: well, if that is a good relationship and i don't know. those comments after canceling a moscow summit over the edward snden assigned -- asylum. behaving like teenage ways. joining us now, former national security anasts, great to have you with this. there is sometng disconcerting about hearing the president use that kind of language talking about any leader. not presidential. >> to a boy on a playground, and it will be a joke and it would be pawnee if it were not for the fact that the world peace hangs in the balance. there were both in a very bad place. obama's said he looks bored. putin says, i'm going to humiliate him and grant asylum. lou: it has not been personal. ♪ never made a personal statement about the president, as you just heard.

that is really unbecoming. >> well, it -- well, just because putin is outsmarting obama at every step. he makes this grand, sweeping gesture d says we will reset relations. putin said, you did not even translate that word rig. obama's says, we will cancel the missile shield as a goodwill gesture. putin says banks, but i will continue to help the iranians and their nuclear program. obama's says all you know it -- unilaterally cut and hope you do the same. the russians say, thank you, but why not you can solve all missile defense system, too. it is just not working. the president does not realize that he is just not playing. the russians have faid to develop anything other than oil and natural gas exports. they're whole economy is built on the ability debt export them and a high price. --

lou: but they hold europe's the road in their hd. >> but who also just found natural gas deposits? poland. why don't we stop in poland on the way tohe summit and talk to polanabout developg. lou: strong positive leaders. this president continues the pattern that he s established in the first four and a half. >> not really because you could start having a turnaround. if he gave approval for the keystone pipeline. lou: he won't. >> she has made it clear that he won't. lou: that's what i'm saying. >> a new president comes in. lou: absolutely. a little bleak. i apoloze. >> it is right there within our grasp. it is such a shame to see him not exploit the situation. the russians of failed to develop any other economy. computers, clothes. you buy oil andatural gas. if prices are not high --

lou: russian warhes. >> or russian warheads exactly. i think if the president of the united states wen and said, here is the game. you guys need american technology and foreign investment to develop your eastern siberian oil field. that is not going to happen. as a result they look like boys on the playground. lou: speaking of that, nine is having more fun thanenator john mccain saying that edward snowden is for a year and regeneration. his assessment, jason bourne. >> i don't quite get that. around the world invading everyone. but edward snowden has done real damage to the united states, not just the secrets, but the sours and methods. the chinese and russians know how we go about intelligence gathering now. obviously there is the opportunity to accumulate the president, which putin loves. lou: always great to have you.

>> thank you. lou: a major smart phone maker signals they are ready to sell the company, sending the stock soaring. s&p chief equity strategist joins me next. ♪

♪ lou: well, what the marke over two and a half billion shares. the dow and the snb did almost nothing but extend losses after posting the worst weekly performance since june last week my guest sayshe odds of a second summer smog and though our -- are you ready? i will let him finish the sentence. joining us with his outlook, chief equity strategist we have %-hearing a lot about.ding and another pause or correction,

full on. some people talkbout all sorts of things. but what do you see ahead? are we looking at the prospect year after last week particarly ofnother decline? >> a lot of people are worried that we will have another decline in august. certainly the reputatn for starting such a decline. the third worst month going back to world war two. i did a little bit of research digging. i found that basically every other year we have a decline of 5% to more, but in 90 percent of those observations we only had one per summer. we already had hours from may 22nd through the end of june, down almost 6%. ifistory repeats, and we know that it will, we have already had it and if we have another it will be late this year or into next.

lou: so everyone can read the -- breed easy through the summe i heard you say 90 percent. we have not accounted for the other 10 percent. >> that's right. 1967, 1986, 9999, and 2006, to declines. usually investors focus more on their tans than their portfolios, but there are times when ty get nervous and say maybe i should be taking more money off of the table. market tends to climb a wall of worry. right now i think it is putting -- has been largely factored into stock prices. there is nothing to say we won't get something out of the blue the will and the surprising answer. lou: the likely head to the upside or ateast holding , what doou expect? >> we probablyould work our

way a little higher. the s&p 500 right now is about 69 you're so. we could probably work our way up to 175 mainly because i believe there is a biggpossibility that there will not start the tapering program in september. the economy remains very weak. market will probably say, great. interest rates will stay low for a while if they begin the tapering program in december. lou: the minutes of the fed, and i feel lonely talking about this it seems i am the only one concerned by it. but talking about specifically sinflation and the prospects and possibilies of disinflation. are you seeing any sign of anything beyond this inflation? is there any indication that price levels are rising to the point that they would alleviate his concerns about disinflation

and investor concerns? >> everyone that goes to the store says i am paying more now than i was before, but if you look of the government measures of consumer prices, producer priceshich will be coming out this week, we are seeing numbers that are below what the fed would regards the safe speed. numbers that are one and half, not the 2 percent that they would prefer. they know how to fight -- fight inflation. theyave not had a lot of practice with deflationary. lou: retailers', housing, automobiles. >> areas hat are actually doing relatively well. the consumers continue to spend. expectationfor a gain in retail sales this week on top of the number we saw last month. autos are still doing very well and housing is improving even though inventories remains fairly low. lou: always great to see you.

up next, congratulations, anthony wiener. setting a new record. we will take that up with our next guest. i am joined tossess the performance of the winner. ♪ with the spark miles cd from capital one, bjorn earns unlimiterewas for his small business take theseags to roo12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spk card. [ garth why ttle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimed rewards. choose double miles or 2% cash back on every purchase every da what's in your wallet? [ crows ] now where's the snooze button? [ crows ] a quarter million tweeters is beare tweeting. an900 million dollars are changing hands online. that's why hp built a new kind of rver. one that's 80% smaller.

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♪ lou: disgraced politician anthony wiener and eliot spitzer, lg way to go if they are to win their respective races. a new poll finds 68 percent of new york voters find their candidacies etf candidacies to bearrassing to the state of new york. also setting a record, his unfavorable rating is a record level 80%. in san diego the mayor

completing 13 days of intensive behavior therapy after 14 women have accused him of unwanted sexual advances. his attorney says his client will now begin outpatient treatment. joining now, the "a-team" command is director for the tea party news network and juan williams. thank you both for being here. does it get better than this? [laughter] >> i have never heard of numbers like that. i guess he really did something wrong. [laughter] lou: and spitzer is out there still behaving as if he is the arbiter of what is good husbandry. is that a word, husbandry? >> i'm trying to decide if he is a politician or trying out for a movie. as you watch the campaign, it looks like the rl world new york city. you never kno what will happen

next. they might get elected. lou: indeed there are, i'm sure, a lot of local journalists that are praying they do. obviously most of the voters think it is not such a brght idea. let's turn to in eric holder today on h own initiative and private if reducing minimum sentencing and trying to do everything he can through executive action and orders to make it more lenent on people who to break our drug laws. >> i think it is a smart move and something where holder will find a conservative and liberal backing. republicans and democrats. he has never had that. the house oversight over fast and furious and other items, this buying issue has come up which heard him. here is a moment where he will get bipartisan suprt and it will go beyond executive action.

the president, it's interesting, has not picked up much in t press. he will pursue thishrough the fall in terms of real legislative action. and you will get people like rand paul and mike lee who are tea party guys to say we agree, too many people in jail for nonviolent drug-related offenses lou: you agree? >> some might. 77 percent of criminal's right now are repeat offende. how will we sit here and a fine one of for another. we need to identify tho that have up potential that again. lou: as we asked at the outset of this broadcast, how can the attorney general meet his own metric here? drugs that are not distributed and sold and provided by a large-scale organizations, cartels and gangs. absolutely insinuated into every aspect of the trade.

what in the world is the attorney general thinking by putting that as a condition for leniency? >> i think he wants to be clear that this is n about people who are major league drug traffickers. these are -- lou: where are theyoming from an? >> the questionnaires, the kid standing on the street corner, they guy in the restroom at the big law firm, or a guy in charge of sending them out through a diribution network to people like that. that i the distinction. lou: do you agree? >> i think there needs to be a distinction. we need to look at the motivation of eric holde for doing this. he brings racento this issue. this is not just the guy in the white suit that is upstairs. he actually brought race into the iue saying there are too many hpaics and african americans in jail and this is a solution. lou: and no commensurate call for action by community leaders.

>> that is exactly right. to me that is the outrage. you neverear from eric holder or the civil rights leaders. anyone saying, we should have a march against the drug dealers. these guys are destroying our community, families. this is what we should be doing. i think it is the missing part of the puzzle. lou: activists and leaders, stepping up in the case of the horrible beating by those police on a school bus. but think about the millions of lives that have been devastated and disproportionately in the lives of minorities in this country byave failed war on drugs. and these same leaders to not open their mouths on this issue. it is terrible. >> it is an outrage, and it goes beyond that.

it devastates real-estate. you cannot live in the neighborhood. retail business cannot operate, and the people say, how come can't get a good restaurant wakeup. it is because nobody says, these drug dealers who are operating some cracow's are making it hard for anyone to do any kind of business. lou: and to be clear we're talking about a nation that is being devastated by this. this reaches through every economic class, race, ethnicity. and it is -- it justs such a tragedy. people try to be cute saying no war on dru. we are too sophisticated for that. their object fools. >> that is the biggest issue for rand paul to face. he believes in the legalization of all drugs. lou: one more thing that will have to be faced by libertarians is a philosophy that makes sense in this modern age, simy saying no government is not an swer to anything.

thank you for being with us. that i it for us. thank you for being with us. coming up tomorrow, congressman trade g peace mind is important when you're running a successful busiss. so we provide it services you can rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the network and services you depend on. multi-layered security solutions keep your information safe, and secure. and responsive dedicated support meets your needs, and eases your mind. centurylink. your link to what's next.

neil: mainstream republans watcout. welcome. i am neil cavuto, here is the good thing, that came out of the irs scandal is brought the tea party back to life, tea parties loaded. and proving taxing the mainstream republicans who all but hed they had gone away, they have not. they are angry, not only at democrats who dismissed them but a republican party they say all but ignore them. the same republican party, help make john boehner a speaker, not letting him speak, they say not letting him govern, they are at it again,