bay and learn new neighbors, a spacious home. very nice. that's all we've got. i hope you made "money" today. we will see right back here tomorrow. "the willis report" is next. gerri: hello, everybody. tonight on "the willis report" microsoft tries to make it big in mobile by buying that phone business of nokia. we will break down what that means for consumers and the competition. president obama's new plan to cut college costs. is it just a cop out? what does it mean for our kids? and with less than a month to a critical obamacare deadline, among the law's biggest cheerleaders. we are watching out for you tonight on "the willis report". ♪

gerri: we begin tonight with big news for consumers and a possible game changer in the world of smart phones. microsoft's deal to buy nokia for $7 billion will shake up the business of mobile devices. it will also usher in a new era for the smart phone consumer. more choice, more competition from low prices. we could be headed in the right direction. editor in chief. welcome back to the show. good to see you. what does this mean for consumers? >> this is about microsoft having control end to end over the product. maybe it means a better experience. one company understands the whole enchilada, the phone, the software, the application. their work with third-party companies including the best friends. another part of the family. maybe it will mean phones show

up faster. the pipeline, manufacturing. gerri: it's all integrated. >> right. maybe faster delivery of new designs. right now, somewhat similar. variations. getting bigger but they have similar, recognizable styles. we on it, the manufacturing and design. let's do something different. gerri: how big of a difference in this deal make? i read that the market share is something like 3 percent. very small when you consider that other companies have such huge footprints. >> it is tough, partly because they started over again. microsoft had a position with windows phones. and then they basically felt like they were not competing even though they had a chunk of the market. they dropped it and started over. what they like to say is their number three. who did they beat? blackberry. gerri: exactly right.

if you are zero windows of the cn not know, and a lot of people are because they grew up with windows, does this mean that you are safe for another few years? >> honestly, microsoft just sent a clear signal to everyone that they are in it for the long haul. they had a choice to make. they are not winning. it is a tough haul. they could have backed off. the double down, but nokia. if you like these phones and the interface, i kind of think it's cool. then this is good news. gerri: i know people who have the phone and love how it looks, however operates. but the reality, android, 79%. winning big time. samsung is unveiling a new watch. so this will be interesting. something that apple had hoped to do. what to you make of this product?

>> samsung's galaxy. they love the name galaxy. wismar watch. they buy blue to technology. you know what, you have to pull your phone out of your pocket, but a glance down. he have a message, something going on. they look attractive. there are about design and fashion. but we have seen a couple, conceptual designs and prototypes. i hope the prototype, the one i saw over the weekend was a disaster, but i don't think that is true. they understand product, screens, and design. i expect to see something exciting. gerri: we will be watching. apple will get into this arena. is the era of innovation in handsets over or nearly over? >> i've said this many times. the all-star to look alike.

it gets really hard to make it different. the future of technology is definitely worth level technology. things you can have on their hand, on your eyes, clothing, and added a new. i mean, this is where it is going. the state of the art of the farm seems like it is just about right where it used to be. gerri: walmart announcing they will cut prices. and that, of course, that is good news for consumers. >> also a clear signal that new things are coming. come out to cupertino and check out what is new. we expected. to phones of wants. there is conjecture, but that is when prices drop. it is tougher and tougher for them to innovate. it seems to be all about color. gerri: we will definitely wait and see. hopefully you will come back.

you have to let us know. thank you for coming out tonight. appreciate your time. lots of changes. president obama once again things he has the answer to the education crisis and the country. the president's latest ideas to cut the time spent by students in college. why does -- why do for when you can see that the fourth three or maybe even too. joining me now, ron meyer. welcome back. you know, i heard this and i have to tell you, my initial reaction was this is coming from and he spent four years and undergrad, another three in law school. what is good for the goose is active for the gander. >> that's a good point. there is a point to this. the problem is we have been incentivizing for your degrees for a long time. i am okay with them saying that. a study just came out today.

people who beat 2-year technical degrees, making on average $2,000 more per year. so i think it's not a bad idea. gerri: hallelujah. getting a job. more to the point. but here is the issue with the president's proposal. i want to hear what you have to say. the answer is not to cut back on the amount of learning being done. the amount of teaching. it's to cut the cost of an education. grown out of control. >> it is not want to look a what he has done. basically what they have done is written a blank check to higher education. stevenson up footing the bill. an unlimited funding source. that is one of the reasons why the prices are going out. i think it is the biggest driver

higher education, tuition has gone up 25% in the last four years. no repercussions. people were struggling. no jobs for young people, the highest unemployment since the great depression. after looking for different ideas. alcohol higher education accountable and create more competition. gerri: maybe this would make sense of the quality of that education has grown as much, but reality is i don't think they're learning as much as they used to . writing ability, reasoning ability, it is not improving. >> si sibila say you make a million dollars more in your lifetime if you had a 4-year degree. that is now down to 300,000. we have joanna prepare ourselves for this new technical aids. right now there is a use demand for technical degrees in engineering degrees.

taking control of student loans and they're doing nothing to subsidize or incentivize. so i think if we are going to take control of education policy , we need to rethink it. lenders with looked at a student asking for a loan and say, how much money you going to make? the something that the federal government may step taken the consideration. gerri: there is another fact that blew me away. students graduate within six years, not for, not three, 56%. no one is graduating on time. this is just astonishing. when you look at what bureaucrats are being paid to run the schools. believe me, most of the hiring is people who run paperwork, counsel students. in reality we are paying more for less. that has to change, doesn't it?

>> it hurts us, the taxpayer and a student as well. the system more everyone is encouraged. people do not always want to be in school for four years. they get cheap student loans. that's why i'm saying we have to look in education. i'm glad this program is, but will spend enough time looking at higher education. losing the countries across the world. if we will be ready for the future, ready to be the technical side of this country should be, we have to look it ways to get higher education on board and stop the d'agata like mentality that is putting this behind and start looking ahead to train people for the future. gerri: amen. the burden of this thinking you're talking about is really going to fall on american families. mom and dad, the students. maybe that is where it should be. people should be making smarter choices. how much they pay for it.

once people start refusing to pay this ridiculous amount of the exorbitant fees for tuition, maybe then things will change. >> this last round where college has been so expensive, people are starting to get it. more shows like yours start to highlight this, i hope consumers finally get it and stop buying into what the government is trying to incentivize them to do. gerri: our viewers are very smart. thank you for coming on. always great to see it. now we want to know what you think. is the best way to save money on colleges to teach students? log on to gerriwillis.com and vote on the right hand side of the screen. i will share the results of the end of tonight's show. coming up on september 16th a couple of weeks away we will have a week-long special users guide to education. we will answer all of your questions about picking the right college come out to pay for it, whether you should pay

for it, all the best answers. you will definitely want to tune into that. also go to gerriwillis.com for great chips. more to come including support for obamacare flat line. why unions are breaking their allegiance to obamacare. air fares soaring. why is uncle sam ignoring simple ways to cut more costs? looking out for your money coming up. ♪

gerri: hold onto your hats. another high-profile backlash against obamacare. 30,000 members of the longshoremen's union in san francisco just don't the afl-cio. part of a growing revolt against the law that was initially supported by unions. now they're learning what is senate, they're backing away. with us now paul howard. welcome back to the show. what do you make of this? here goes an afl-cio affiliate saying we don't like this law. why are they so adamant?

>> this particular union, they want a single payer. a number of other large unions have said this is killing the 40-hour workweek. gerri: which is true. >> and they want more subsidies. they won obamacare to give subsidies to union. gerri: let's pick up that last point. benefits are so wonderful that people flock to them. >> starting in 2018 you will have a cadillac tax. also, once these changes get up and running, employers can say, let's stop paying and send them to the east changes. gerri: an interesting turn about. the more people is see the

details of obamacare up close the more frightened people are. i want you to respond. the president of the afl-cio had this to say about the move. >> the affordable care act is a major step in the right direction. we made some mistakes along the way. it still needs to be tweaked. it was not thought completely through. gerri: he sounds like a republican. >> let's not forget in 2000, scott brown was elected in massachusetts. it literally is a bill that has not been thought out. passed to get around the election. gerri: you have to read the bill to know what is in it. it is fascinating. problems with the bill. these tweaks. realize that there are problems. pretty soon we're going to get

the first big step coming of october 1st. how do you think that's going to go? >> oh well that of a train wreck. obviously a number of states have said the wish we had more time. the administration itself has been jettisoned everything. the employer mandate cannot verify income, all sorts of things i think you'll see a lot of bombs. gerri: they are rushing to the finish line. training people for 40 days. getting that in half. today news that indiana is going to offer health care outside of obamacare to change. well other states to the same thing? >> well since 2008 have offered something called the help the indiana plan. people who make more than the state's medicare plan, but a free bucket version of low-cost health insurance for the poor, focus is on prevention.

it's a good sign that the obama administration -- obama administration is letting folks. gerri: tell is that working out? >> increased use of preventive services. a better option. gerri: they have backed off to anything to really try to derail obamacare at this point. not really seeing any major offenses. that think they finally just to throw their hands out. is there anything that should be happening to change this law, to set it aside? >> even the unions are protesting what is going on. lots of opportunities to say this is a problem. whether it is a penalty for employees, the costs going up. go back. fix specific things. people will be unhappy. messaging and looking for specific things as one way to go gerri: good to see you. thank you for coming on.

gerri: an advertising blitz. why you should not be taken in. next, we answer the question how do you do that. how to drive down the cost of your next charlie's coming out. you will want to hear this. ♪ thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.

at od, whatever business you're in, that's the business we're in with premium service like one of the best on-time delivery records and a low claims ratio, we do whatever it takes to make your business our business. od. helping the world keep promises. gerri: other leasing, we showed you how to the signing it the best deal possible.

♪ gerri: americans looking to get a behind the wheel of a new car are flocking back to auto leases. leasing hit a record high in the

second quarter, nearly 30 percent of financed purchases, according to the latest experience data. is it the right option for you? if you negotiate the right way you can drive down their cost. how? joining me now, jessica anderson great to have you here. thank you for coming on the show. why is this so much more popular? 28% of new vehicles financed to a second quarter were released. that is a new high. >> it has to do with the economy. people looking for a little bit of savings. if they can save a lot in their monthly payment, that would be great. they have seen the offer to pay for just the amount of depreciation for the car you're using for that term, whereas if you buy a you pay for all the appreciation right up front. gerri: a lot of people don't like it because they feel like you end up paying more for the

car, but you say it makes sense for some people. who? >> if you're the kind of person that always has a car payment because you like something new or you have a kid going to college that may need something different, leasing is a great bet because you can get more for your money and if you buy. gerri: it has been the way a lot of people have gotten into luxury cars that there would not have been able to afford. if you want to lease and have good reasons for doing so, start with the capitalized cost. >> in the leasing terms, essentially the price of the car. it just the way you would not pay full sticker price, you should not pay full sticker price of your leasing. you want to negotiate just the same as if you were buying. do your research. what others in your area are

paying and then negotiate on that capitalized cost. gerri: the way they want to talk to you, but your monthly net. here's what you'll pay on my lease. is that any way to go? is that how i should negotiate? >> no. absolutely not. you should be focused 100 percent on the the overall cost of the car. in initiating that first. oh, well, just add this and it will be $5 per month extra, while that adds up to $200 over the life of your lease. gerri: residual value is another important metric. explain. >> residual value is what the car is worth at your lease is over. what you want to do is take the dealers' offer and then compare it to an offer from your bank or credit union areease compare. the higher the number the lower your payment, which sounds great at first except in handicap you

if you have to get out later on and also that is the higher purchase price the you would be paying if you decide to keep police at the end. gerri: a lot of people feel like they are hamstrung because they drive a lot of miles-an-hour worry they will get hit with big fees. what can you do to prevent that? >> take a look in your annual drive data. if you only have one month, tracking miles an annualized the figure. if you look like you go over 12,000 miles come at an extra miles of front. you can negotiate a better rate than you will by paying the excess mileage fee and the end. gerri: thank you for coming on. great tips. wow. time for a look of stories you're clicking on tonight. the market this started september 1st trading day on an upbeat note but slumped slightly after key lawmakers backed president obama's bush. afford recalling 370,000 vehicles due to a possible

inability to steal the cars. they include 2005-2011 ford crown victoria, mercury grand marquis', and lincoln town car. no accidents or injuries reported. in a month-long dispute between cbs and time warner cable ending. one of the biggest disputes over retransmission fees. about three and a half million time warner's subscribers were affected by the blackout. and a skyscraper under construction and london is being blamed for setting fire to furniture. abuilding. the skyscrapers and usual curved shape reflects an intense beam of sunlight on to the streets below, and temperatures reportedly reached a staggering 158 degrees. those are some of the hot stories right now on fox business. incredible. of the market ending in in

green. details of the threat that could shake up the september stock market. an advertising blitz from hedge funds canal they're hedging their bets that they can get you to buy into their lackluster find. stay with us. ♪ [ alarm sound for malfunctioning printer ] [ male announcer ] you've reached the age where you've learned a thing or two. [ metal clanks ] ♪ this is the age of knowing what you're de of. so why let erectile dysfunction get in your way? [ gears whirring ] talk to your doctor about viagra. 20 million men already have. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. [ cellphone beeps ] this is the age of taking action. viagra. talk to your doctor.

>> september typically the worst trading months of the year but more analysts point to a different kind of threat fox business the elizabeth macdonald has the details of what the market should be very -- doing. >> what should be doing but one is more important to the market overall the syria or the budget or another debt ceiling fight and not health reform started october 1st

not even a fight if the stock valuation is too high but it is all about interest rates particularly the speed with which mortgage rates have risen almost 1.5% points since may and that has already impacted new home sales which showed pretty bad numbers much of u.s. economic recovery depends on housing was one estimate showing housing made up of big 40 percent last quarter. the stock market and the bond market are down with the federal reserve will cause mortgage rates to go higher by scaling back on the menu printing to buy a -- money printing. they could decide to stop buying treasury bonds but they could continue to buy mortgage-backed securities.

that move may help to keep the housing and economic recovery going. gerri: they give for that. wall street calls it smart money for lackluster performance starting september 23rd they can legally start to advertise for everybody in the general public. with united capital private wealth management and radio host of on the many. i am not happy about this move what about your ability to come knocking on our door? >> it is a dangerous trend the hedge fund should stay in the world of the high net worth investor. most to do not even understand what they own

many people don't know what the index fund is or how works hedge funds are way more complicated and expensive. there is a lot of risk and very little reward. i think it is the way do get back the fees they lost due to the big popularity of the exchange traded funds. gerri: 2% management fee are you kidding? why would anybody put up with that particularly when you see performance is not matching the market? >> even some of those houses and fidelity are teaming up to offer hedge funds to the clients charging 2.4%. performance is hard enough to come by when you have a strike of 2.4%.

by definition these will underperform. gerri: the reality is they can do whatever they want to. one of the things that people who run the fund -- run the fund say they balance out the risk in the market is that right? >> there is a certain term called correlation. many don't do what the market does and the problem is overall if you get a good return on the other type of investment and those returns are not coming. and volatility is not the enemy. trading commodities going short stocks is the big risk

volatility is only important for people who get emotional when the market goes down but that is not the real risk. >> some of these hedge funds are huge j.p. morgan, a 54 billion what is the chance i will get personal attention from the us hedge fund? >> you don't get any personal attention but you don't get that from the merck -- mutual fund either. they want to use this strategy to help beat the market if they don't want to leverage and borrow money to enhance return to do anything they can and. those kind of movements create tremendous risks and losses many don't -- to don't even know of a goddess business there is no incentive if it is underperforming they close

it down and start a new one. >> think you for coming. yet another thing that wall street would like us to buy. thank you so much. truth in lending. skipping the hassle but doesn't pay off? in here with a simple way on coliseum can bring it down if they want to. stay with us. she loves a lot of the same things you do.

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department of justice suing trying to stop it now we find out the lawsuit is being moved up the government wanted to do later. what does this tell you? >> u.s. airways and american got their way the trial is suing to block the merger they wanted to be later next year the more they delay the more chance it falls apart. the looks like only a couple week trial than literally creditors, employees, and consumers all want to know what will happen and also in bankruptcy at the moment that is in limbo also looks like the judge will let them go to bankruptcy then deal with the department of justice. gerri: and they were hoping

to do get it together but what are the chances of the justice department succeeding? >> i have seen almost every analyst report they seeing it is about 30 or 44% chance for them to merge i think it is a little bit higher now the case is moved up without the delay factor. it is a coin flip the literally tens of thousands of people waiting on pins and needles because they extracted confessions so if not a lot of them will not work next year. gerri: how do you turn down a merger with so many in the past? paid big deals with a lot of consolidation and already so now to say no is a difficult argument. >> i believe it is the fourth megamerger now they

say they cause ticket prices to go up it is like being the fourth kid in the cookie jar. the others have cleared out the fourth one is caught that's what was in my household. [laughter] and we could reduce air fare what could the federal government to? >> now that they are so into it they did not seem to matter last year but first they to get fuel prices down at $75 a barrel oil but right now a 25% of the $250 a ticket is taxes and fees they want to increase they could reduce the current rates were not asked for

more they could reduce the hurdles to have the next radar system that has been floundering around to allow airlines to have quicker turnaround time. gerri: what about the gsa? couldn't we contract to this out with competition? >> there are several airports that want to own their own version under the guidance they have been disallowed. there is over 50,000 workers and as far as that we could allow for an investment if we want to have great competition we would have majority investment richard branson tried to start virgin american attitudes we years because of the battle. there is so many things if they want to block the merger let them have the

court case to fight it out but i do think it is a coin flip but there are plenty of things they could do to make their life easiee. gerri: now it is one of the most popular airlines and the country. 25 percent of your plane fare ranks number four in the market share. number for blackberry it made a path of the smart phone market but the slow response to the iphone

caused sales to slip now only 3%. eric said used to be a big name now claims second fiddle to samsung. kodak the company announces today it is emerging from chapter 11 and will now be a digital imaging company for businesses. remember gateway? known for the cow mascot its troubled mainly because of the reluctance to enter the laptop market that was a killer and sold to teethirteen -- cer. is the risk reward worth the answer? next. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past.

and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences belo.. to the finest comforts above. we're not simply saluting history... we're making it.

gerri: ned trent shaking up the financial world with peer to peer lending. more investors chasing higher yields offering loans to those who have been turned down by a traditional banks but joining me now is a financial advisor for for:financial and the publisher of money q&a. investing over 140 kinds of these loans. tell me how you got involved and why you're motivated. >> by the financial crisis of 2008 i started to invest with the of peer to peer

loans searching for the higher rate of return for my investment. >> so many people now look at bonterre what else can i do? one thing they consider what percentage of your many have you put towards this? >> put it in and alternative investments like peer to peer lending. gerri: there is a lot of defaults because after all people cannot get loans from regular banks. is that a problem? >> in 2009 i saw the possibility of a huge rates of return and i got so little greedy. i had quite a few defaults but things are looking up now. gerri: their ranks of potential loan to see the default and lending club has a 3% annual default rate.

what about the person that you plan to? what about the entrepreneur? >> you do have a phew details. with personal identifying features but things like the occupation credit reports how much income they earn, and you do know quite a bit that the borrowers and investors can have in the comic section that you can ask questions and get the feedback what they wanted though loan for. >> what default rate have you experienced? >> right now about 140 loans and i keep adding to them but i have seen a default

rate double little over 10 percent but taken in context that is the beginning for when i started investing now i have changed my strategy with being a lot more conservative. it is getting better but with with with the rate of return around 5%. gerri: if you had your money in the stock market the s&p is up 500 in the nasdaq 120%. do you regret putting your money in these loans? >> i still think i made the right decision because this is such a small portion of my portfolio. i still have retirement funds i still fully fund mike roth i.r.a. and my 401k so it is money on this side above retirement that i set aside for college education.

just a small portion of my a total portfolio. with the stock market goes up may be lending clubs is not the best time to invest with year to peer lending services but when the market goes down there is a demand it is inversely related it is a great time when the market takes a cooling-off period. gerri: think you for coming. we appreciate it. we'll be right back with my $0.2 is the best way to save money on college? money on college? stay with us.y do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning

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gerri: president obama pushing colleges to introduce 3-year degrees i made skyrocketing tuition costs, but is that the best way to save money on

college to teach students less? we ask the question on gerriwillis.com. 13 percent said yes, 86 percent said no. log on to gerriwillis.com for our on-line question every weekday. finally, three years of college rather than for? the obama initiative to save money on college costs. we talked about it at the top. it may appeal to debt-weary parents, but it is a curious suggestion from a man who spent four years getting his undergraduate degree and another three getting a law degree from harvard. i guess what is good for the goose is not good for the gander in this case. trying to cram four years into three will not do anything to solve the problems of a bloated education system grown fat on cheap college loans from taxpayers. real solutions, and i mean real solutions would require us to address costs, over the top administrator salaries, burgeoning ranks of bureaucrats, lavish accommodations of perks for people who are supposed to have their nose in a book. too much money creating a bubble is the problem.

the solution is not letting less but getting disciplined about spending, and that is my "2 cents more." that is it for tonight on "the willis report." have a great night, and we will see you back here tomorrow. ♪ ♪ lou: good evening, everybody. thank you for being with us. we are in the midst of an unusual circumstance in dilemma. president obama's says he has decided to attack syria, but he has also asked congress for approval before taking such action. the 535 members of the congress and said began their hearings over whether to strike syria over alleged chemical weapons use. already the house speaker, majority leader have consented to the president's plan, which he promises will be limited and proportionate. without american troops being involved at all on the ground.