tv Cavuto FOX Business September 9, 2013 8:00pm-9:01pm EDT
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to the finest comforts above. we're not simply saluting history... we're making it. neil: three days, 72 hours, by thursday at this time we will know not just whether this president has a future, but whether this president has a future. welcome, everybody. i am neil caputo. if it even approached that crisis with anywhere near the speed which it is taking on the syrian crisis, we would not have a debt crisis. alas we do, less it is not. chemical weapons are the reason. right now the president is putttng out all the stops to put a stop to it even telling fox news to state his case. part of a media blitz to address
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the american people tomorrow night. we will be here live for that, but i want you to think of this. what if the president had marshaled all of these forces of persuasion a year ago when he threw the red line on chemical weapons, would he be a lot further along and with a lot more countries going along? the former potential candidate just knows we have given the government a week to take some cover. that is how much time century estate john kerry has laid out for a timetable for stopping this bad stuff or i guess this guy. former ambassador in china on whether this is actually helping assad. what do you think, ambassador? >> if only we could move with such laxity. that is a great analogy. i think a lot of this front is
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going to be overtaken by events because the russians busily put forward a proposal that would seek to take serious chemical weapons inventory and basically put it under international watch and supervision. at all i haven' i have had our h eaten in terms of dealing with business as the only remaining real power in the world, internal gain, lack of focus and communication, but the diplomatic track has been taken out from under us by the russians. we should've had a broader strategy and we have gone a year without any kind of middle eastern strategy. i don't think this country has had a middle eastern strategy since iraq. now that we're getting out of afghanistan, there are no ideas. we all know the answer is when you have long-standing dictators like in syria, they will not last, you have to do something about that. the issue driving radicalism in many parts of north africa and
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the middle east is no economic opportunity. if you cannot give people a sense of hope in the marketplace, what more are they going to do? i think the next couple of days are going to play out in rather unexpected ways and i suspect the president will stand with a much different set of circumstances now that the russians have made the overture on chemical weapons. neil: do you think he might have hoped for the russians would come up with something in his heart of hearts he doesn't want to do this guy even the nature he went from a unilateral move to let me discuss it with congress, the russians might be doing a big favor. >> i think it is a huge negative for him. we look weak staff after step.
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in large part driven by a year ago if you're going to talk about red lines, you better have a multilateral strategy and a domestic political strategy that will allow you to do that. neil: it has been a year since the red line comment that the president claims he never said, but having said that, wouldn't that have been the time to marshal these forces? too little too late now? >> it is not surprising we get our thunder stolen by the russian foreign minister who i think will change the terms of how this thing begins to play out. neil: it wasn't that long ago vladimir putin was questioning the existence of chemical weapons that alone if they're used. >> he is a tough guy, but there is a reality that steps in, this is what makes me so upset of where we are the country in this administration. haven't had any kind of offramp. a pathway putting together the
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pieces in which looks like an endgame. we are the opposite of the business community in many ways in the sense we are quick to enter, quick to pull the trigger, but we don't have anything that really speaks to where we want to be as a country. neil: the russian participation, do you think this warrants intervention, just the use of these chemical weapons and the fact that the administration had that? >> there are indeed redlines in this world. why i think this conversation of redlines and the use of force, we will be having the same conversation about iran in the month and year or two ahead. what that means if iran develops a weapon and proliferation concerns around the middle east could be catastrophic. i spent thi the summer in asia d visited south korea. what is the talk in northeast
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asia? the talk is the north koreans are increasingly close to miniaturizing their nuclear inventory having the delivery capacity to disrupt one of the most important economic regions of the world. are you a country willing to do something about it, or will be left to our own devices meaning we all go nuclear? you get a sense of what happens with the new arms race in the region. what we are discussing is syria is very important for this country because we're going to have even bigger conversations about in fact if there are redlines that exist and if there are no what we intend to do about it. neil: would you support going in on the basis of their existence in the administration? >> i think we talk about a weapon of mass destruction which chemical weapons are a part of,
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it has to be a line that has been crossed. here's why it is important we keep talking about it. you are never going to get to any kind of peace agreement in working with russia, china or even iran at some point unless you have some sort of a threat leverage on the table. we have not played our cards well in terms of using our leverage. if you take that off the table, you will not be able to get to the endpoint. neil: governor, always a pleasure, thank you very much. take russia out of the equation for the time being. military strategies go, this one does not get much worse. we have not only helped an enemy, we have emboldened that. explain, sir. >> i think dennis miller said it best with the only country who sends out save the date cards for a missile strike.
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we have given away so much of what is that we will do, what we won't do. it follows a pattern that was exhibited in afghanistan where the taliban learned very quickly what we were and were not willing to do as far as tactics. they adapted to that very quickly, the al qaeda folks who adapted very quickly to what we will end will not do in interrogation techniques. neil: even the buildup going after saddam hussein, and the buildup with the next president bush going after saddam hussein, our eventual move tells us as if it was a top news alert, you could argue the bad guy always has time to hide stuff, right? >> everybody has time to react, but the action is always quicker than the reaction. think about that.
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whether it is a physical altercation between two people, or if it is that strike that comes even though you know they are building up when it happens, it's not the back on your heels, and the more we tell people, the more we telegraph what we're doing. stephen king, the writer, when asked how do you write these scary scenes, he answered with one word. "uncertainty." he writes with uncertainty. it is the same thing in combat. you want people scared. it is maybe losing your life, but keeping you on the edge and sometimes makes you make mistakes in advance. so the less uncertainty there is, the less scared people are and all of a sudden you start to give your enemy too much. neil: are you making much of the russian offer to have international organization collect all of the weapons and
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sort of make american policy? >> if they do that, that would be so put mask it is just amazing. here he has president obama dangling on a threat looking like he is not going to get congress to support it putting him in a jeopardy event does he make the decision to strike or not strike. he is standing on his own the weakness of american policy exhibited as that icon of a president standing alone and all of a sudden he sweeps in with the answer to this that it is diplomatic requiring no military force? neil: captain, thank you very much.
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boy, really does build up the pressure tomorrow night. it p.m. tomorrow is when we start. who will be watching the four market reaction i had to, during and after the president's speech. also like to see your twitter reaction. tomorrow night the world will see the array of items we are providing you tomorrow night one-stop shop for the implications of a major historic undertaking. meanwhile, all of your terry's, especially all of you enjoying the health care benefits in your golden years. news that will turn your hair upright. but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. hp to build the new nascarth fan and media engagement center. hp's technology helps us turn millions of tweets,
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posts and stories into real-time business insights that help nascar win with our fans. your financial advisor should focus on your long-term goals, not their short-term agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. if you believe in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors who think like you do: face time and think time make a difference. join us. [ male announcer ] at edward jones, it's how we make sense of investing. ...amelia... neil and buzz:
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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. neil: you may think this health care plan is hanging on by a vine but others think otherwise because they're already moving full speed ahead to dump their retired workers.han 100,000 of t off the corporate health plans on the wonderful private health exchanges you have heard so much about. it will save a boatload in health care costs. the idea to offer a worker a
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lump sum early next year company retirees to go out and purchase coverage of their own against the health care law. saying you should as well. we cannot be too surprised, can we? >> this is three card monte. those who have run the numbers know well what is going on. these corporations are doing the right thing for the shareholders but not retirees. it will be pretty neutral next year but by 2018 the cost will be much higher than that payment. totally dependent upon 27-year-old men and women buying health insurance at the rate of about $4000 per year. paying the penalty at $1200 per year. three years out they will pay a penalty of $4000 if they don't sign up and by the insurance the escalation for seniors will go through the roof. this is going to be a real
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economy buster. neil: those who have been pitching this idea a goal for those against it, but the reality is these companies are moving full speed ahead because they see this as a reality and they are preparing for that. i think these are the first of many to come. i think the implication that come to the cost of the health care law because whatever they dump on society, the cost gets picked up by that society. >> i sat on several boards and i have been on committees where this is the single biggest discussion we have how do we take our retirees and fix our cost for the shareholders benefit is we don't have escalating cost that we cannot manage. you couple that with pension fund issues, i don't know how we're going to manage it. underemployment being what it is, and so many jobs going from
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40 hours to 20 hours, who have a catastrophe in the next three years. the next recession will happen in two years from now it will be huge because of these two factors. neil: and number of economists and the likes, you know some of the names who say the reality is this would save everybody money including those retirees and there is no reason to fear. >> if you look at some of the recent articles coming out in new england with a small states that has 28 statewide medical facilities and they're going to close down 14 of them because they can't afford the distribution of health care cost across the state, that will cost all of these communities to come great distances for health care. what are they going to do? they are going to opt out. a nurse told me if you don't have an ambulance within five minutes of your home, you're
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never going to make it. a lot of communities are taking their fire stations and emt becoming the local emergency room. how insane is that? it will not be good. neil: more to come. thank you very much. nevermind they are hacking our mainframe, now the chinese are messing with our meat. the takeover of the pork producer has some saying fat chance we will ever be safe now. um... where's mrs. davis? she took an early spring break thanks to her double miles from the capital one venture card. now what was mrs. davis teaching? spelling. that's not a subject, right? i mean, spell check. that's a program. algebra. okay. peons a and b are flying to the bahamas. how fast will they get there? don't you need distance, rate and... no, all it takes is double miles. [ all ] whoa. yeah. [ male announcer ] get away fast with unlimited double miles
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the same american government giving u.s. air in america hard time, bad time for all of us. time to clash if washington is acting a little clash. i am just reading the prompter. we are all fried, fried pork, if this all goes through. this looking like it will happen. adding insult to injury? >> this comes down to the idea businesses are trying to make the decision as to the bottom line to make them more profitable. i find it hard to believe they would put a barrier to this purchase because remember we want entities to hold u.s. dollars and if that is the case we cannot limit what they use the dollars to purchase. is it hard for u.s. government to put their foot down on this but the same time how can they have the merger of u.s. air? again, looking at companies that
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have struggled and the other alternative is bankruptcy. >> pork processing technology. >> we like when the consumer prices are low. airline mergers. there are other problems with manufacture, that is the only thing. neil: bottom line, you are going to as a result. >> have done a good job of keeping them in competition, can
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fly coast-to-coast. the other ones have happened, now they're running out of airlines so you may see prices go up. i will say a chinese company cannot buy our airline. >> in terms of anticipating a rising price in the airlines we will see a rise in the least traveled pathways. in some of the most traveled pathways talking about new york to california or chicago to california, these will be the least affected, that is what the market should do, just to the demand for the different flight patterns. neil: fannie and freddie are getting morsels of mortgages or at least the size of the mortgage, that means a government-backed mortgage lenders are getting smaller in
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the future as a result. as a result backing up to $625,500 could be numbered and a whole lot of mortgage shoppers could be in trouble. lindsay says short-term this could hurt a bit but long-term testers will be helped. explain. >> the concern of the short-term is well-founded because we do see limit lower, the pool of available credit is going to diminish the number of borrowers will decline in activity will decline as well because it is the medium and higher range of the market showing the most activity. we ha have to put this in contet of the longer-term goal to win the american public off and reduce the taxpayer risk for exposure to mortgage credit. these are the steps we had to take to begin to shrink fannie and freddie. neil: a lot may be wondering what they will lower the limit two. we don't know.
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part of that process going on. what do you say? >> this is a pretty good time to lower it because now the private market has recovered a jumbo loan. larger than one the government will back. that market was rocked until the last year or so. it is great. you can go to chase, it is improved. it never should have got $700,000. the notion of the government lowering your interest rates is absurd anyway. it should be lower than the median income. buy a cheaper home if you need government backing, that will lower the portfolio stock. the problem is they kept driving up the home prices.
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neil: so this could actually may be pop like a balloon early on. >> remember, this will be a timely process, the government still has their hand in nine out of 10 new loans being originat originated. i think it is the right start, but this will be a process. the private sector will not just supplement the difference if we lower those limits. >> people think it is a good time to buy a home and the rates are not a closely high, they will buy a home. we don't want prices. the levels we were at was not a healthy economy. that should not be the goal of housing. the other half of this is the mortgage deduction on these homes. why should you get that tax rate? it only inflates home prices.
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you can so deduct $1.1 million in total mortgage and home equity and it can be a second home, that is the absurdity of it. neil: that is a closet in manhattan. >> you want to make sure you're getting homeowners who can afford these homes. it has incredibly liberal limits including 3.5% down payment requirement. >> but they charge more now. neil: it has hit the fan. in the meantime, thank you. on the eve of the present address the nation on syria. the wall street legend and former green beret says either way it is our country's image that has plummeted. the pursuit of a better life for our children is something we all share.
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and he does have a history of blaming everybody but himself. >> with this endless parade of the political posturing and political scandal, washington has taken its eye off the ball. >> a scandal the scandal that is truly dealing with this issue, with congress needs to act. >> the president says that this is an issue of not taking responsibility. what do you think that? >> i think that he's quite desperate right now. yes himself boxes rest of the country. i think that this was motivahatk parliament. he now basically says to the congress that you have to
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support me or the nation will lose faith around the world. and on the other hand, two thirds of americans, more than likely, are against this. so who are we representing? i think that he is really boxing himself. neil: so let's talk about the russian response. that is the way to take this road. we will collect these chemical weapons that we set did not exist. and you can cease to desist. >> first of all, i think he has been czech mating our president all along. >> he creates a scenario for himself. he said it best. for years we listen to him when george bush for everything. what congress needs is to be
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left alone. leaders don't threaten or come out with shallow rhetoric. they are decisive and i would say that syria was a crisis. >> the unintended consequences of any kind of surgical strike today, i think that it will be useless. neil: what he is slapped down by congress? i have watched enough legal
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favorably by not going in. because i think the will of the american people would argue let's not do this. neil: as soon as we got word of this, it's like leonardi done to supplement my. >> i think it would ultimately be problematic for the markets. because we would be saying that we have this emperor with no clothes. we are going into the budget discussions and etc. and i think that that will cause a lot of concern in the markets that we don't have a leader and we don't have anyone creating the compromises required go forward. neil: in regards to the fund raiser, what even? >> i am a big fundraiser advocate. neil: why is that? >> listen, i think that we argue on the republican side. but not that far, far right or the far, far left. this is a no-nonsense type of situation.
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and the point is that at the risk of alienating the far right. i think what our country needs is a centrist. a no-nonsense huntress is going to tell the american people the truth. neil: all the libertarians like ted cruz and others say this is difficult. would you say? >> i say that the american people are tired of what's going on in government. they need a no-nonsense executive who tells them the truth. we have to be running this country more to the majority then we have been. neil: thank you for coming on. when we come back, syria keeps dragging out. we will have an update next.
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neil: now, you know the obvious risk with syria. but you know the real cost? a whole lot of economic things could go wrong, very wrong, especially if something goes even more wrong if vladimir putin gets involved, russians involved, the whole middle east, china. oil could get disrupted, our quick response that is getting even more intense. >> no, it doesn't, it doesn't matter if the whole world can get involved, they are involved. syria is not a very big country. it doesn't produce a lot of oil or have any oil ports to speak out. so why has gold gone up and why
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is oil going up and why have markets and heard as we have had this run up and i suggest it is because global investors understand that this is a proxy battle. between old grudge powers in the middle east, between the saudi someone can come in the ratings on the other. the kind that proxy battle isn't even bigger proxy battle between the united states and russia. so i think that markets sense that there are big stakes here that are a lot bigger than anything having to do with this tiny little country with an inconsequential in small economy >> i don't think the world has much, if any interest for getting involved in this. that is evidenced sophia. even to get the saudis to explain what they mean by agreeing to military intervention and strike out the idea of using a military strike. so what does this, all more
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bluster than by? >> i think that is why the market is up so much. i think that's why gold is flat. i think that's why this is down almost 2%. because i think right now the market is beginning to price in a nothing happens scenario. i'm not predicting that we are going to strike syria. i'm saying that we strike syria, it is a high risk event, much higher than the small regional stakes. when mohammed died 1400 years ago, islam developed a problem that has never been really solid. who is supposed to govern islam after mohammed and one group said that it is his descendents. another group said no, it's as religious leaders. in those two groups have been slaughtering one another and that is the battle in syria right now. there is nothing that we are going to do with age or bombs or
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diplomacy that is going to unravel the 1400 year old grudge match. >> if we could talk about the domestic consideration before you go, i would say one individual is saying that the flipside of all of this is that no one would even think of shutting the government down in august or playing games on the debt limit, whether you are for or against this whole strategy. so what do you make of that? >> i make of it that he is right, the war focuses the attention when it is on the table and everything else is off the table. so we will not be talking about that limits, about all the stuff that washington talks about that is about completely domestic power struggles, it goes away when there is a war. of course come after the war goes badly, then it all comes back twice as bad. so i get what your friend is saying, that a strike in syria might distract us from our fiscal problems, but when we
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come back from the fiscal problems will be there, and then we will have problems with the strike in syria on top of that. so they distract us but it doesn't really deal with it. neil: i think you are right. it should make you run the other way. always good to have you. thank you so much. >> it is good to be with you again. neil: i think that apple has had it. apple is responding with its own fingerprint technology and leaves that it has a science to keep saint-saens down for the count with the spark miles card from capital one, bjorn earns unlimited rewas for his small business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward
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before apple. many are criticizing apple for taking a backseat in the smart phone or. >> i would like my watch to be a large. >> there are a lot of geeks out there, i would definitely consider getting one. >> i would not spend $300 for it. >> i am an apple person. >> adeptly check out apple first. neil: that is not all, are
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twitter audience is not convinced either. so another says that smart anything isn't going to protect you from the eyes of the feds. they monitor your smart phone, so why not your text? could it be bad pr timing? >> i wouldn't say it's bad timing. apple does what apple does. they are so focused on the launch of a new iphone. tomorrow we will see the new iphone 5s and 5c. both of those models are the less expensive iphone to really push into the market so that folks can afford it. >> the real butter is in
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traditional products. >> no, we need new innovation. neil: here's the thing, you're the expert. i think it may go nowhere fast. >> i will tell you that i own two of them. neil: they were really fun to play with. they are a novel concept. sharon: what duty on? >> i own a couple smart watch and the other one, martian smart watch which is a great device. it's very inspector gadget. neil: but you're not wearing either now two i'm not, but it's neat, it's a great idea for someone who wants to show off the latest and greatest. it's nothing that i need. it's not something that i have to wear everyday.
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i don't need an extension of my smart phone on my wrist at all times. it's okay everyone smile. neil: even in the age of the sony walkman, that was just an innovation of a product that was out there. so you could make the same argument for a smart watch, but you're not. >> i think that apple will come out with the launch. and when they do, i think that it will blow us away. i think that they need to come out with a watch for apple. >> one will take your calls, one will tell you what's for breakfast, e-mail your friends, texter friends, you can insert in the middle of a meeting and be rude. what will it do these other guys don't? >> there has to be a reason for it to be on your list. there could be some new security features potentially. you mention the fingerprints in
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the scanner that's going to come out on one of the new iphone's. what if you can buy this, what if you can swipe your wrist instead of your smart phone at the checkout counter. there are implications of ways that instead of controlling your world up your smart phone, it will be off your wrist. and eventually down the road, that could very well be the next big thing. i don't think it will be google glasses. i don't think that apple has lost their edge. i think that there is still some very innovative things to come out of there. neil: jennifer, always a pleasure. thank you so much. and go with her, she's so much smarter on the stuff. but i do think some of this is ridiculously stupid. anyway, if we're going after evil, what better time to invest than now? we will have that next
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neil: the jobs report a little disappointing. our guest is here to show you how you can make money off of all of us. so get your pencil and pen out. a record number of people dropping out of the labor force. i wanted to take a look at this chart. cheers have been rising along the dropouts. you say that coincidence or not, it's time to buy these shares. >> 90 million people. let's face it. if you want to be a productive member of society, people need to be working. these numbers are going to have to change in the economy. but if you're looking for comfort stock, la-z-boy is one to think about. they may have to hock it down and ordered in order to pay for
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the rent, but here is stocks really pay attention to. people can really put themselves into this right now. >> i'm not saying that people are looking for jobs on their la-z-boy, but i think it's going higher, a lot of other stocks likens the putting her house, that are working. i have no problem with that whatsoever. the. neil: la-z-boy has two different features there. >> yes, it is called stands a chair. [laughter] neil: people are taking another job. more folks, so time for investors to head? >> just because you're not working does not mean that you are breathing. the stocks are doing really
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well. 25% sales growth over the last year. the stock has been sizzling. i think it's going much higher overtime. >> what you think of that? >> you have one person belly up who wants to come for themselves and their star where they can't find a job. the other side says that we have a big job to do. they want to get a better brand at this time round. so there's two types of people. the glass half-empty or half-full? it depends on your job situation. definitely if people are looking for long-term gains in the market right now. neil: more people now are going out to see movies. this weekend alone, theaters bringing in 25% more money than they did a year ago. gary, the big screen is still a
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bit by? >> it is amazing some of the movies that i have seen which have been terrible. but yes, people love it. they still think it's a value. this is how much we are paying here in florida. >> is it that much? >> it is that much. >> as gary mentioned, the problem is sometimes you want to bury her sorrow in the movie. then you come up feeling worse than when you walked in. these are symptoms with people looking for an escape either from the badness of their situation or to celebrate their success. the key is for people to be productive right now. i want to talk quickly about this invisible jobs number. if you are out of work right now, it's a lot harder to find new jobs.
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and to take the whole family to a movie. neil: the president's big speech tomorrow night, maybe to prevent an all-out war in syria by offering to stockpile that country's chemical weapons. vladimir putin said. did not have these, now they are offering a place for them to stash them. but i think the heady market got even heavier. so anyway, is that helping things? >> if we don't have a conflict, good news. but the problem is they will defend syria if the united states does something. so that means that all bets are off as to how bad this can get if something something does occur. so i think at this point, markets will put russia had to say today.
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i don't think that congress has a chance of them voting this yet. i think that that is happening here. neil: one of the president rejects this and still attack syria? >> here's the issue. the consumers watching this right now do not like beer, and that is what this talk brings to people's minds. it has been proven that it hurts the economy and jobs, people need to stop spending money when they are fearful. if we are recklessly going toward syria, it will hurt us in the short-term. the market will handle this in the long haul, but it could cause a blip in spending that we do not need right now. neil: all right, we will be watching. tomorrow we will know. the president has a speech planned. of course, we will have lots of listeners. we will be doing this a little bit differently with a live
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twitter reaction. also with a wide market reaction and events from around the globe and how this is impacting the still undecided minds in congress. all of them in one place. see you tomorrow gerri: hello, everybody. i'm gerri willis perry's tonight on "the willis report" your health care coverage is going to be a bumpy ride. >> no matter what you heard, if you like your doctor or health care plan you can keep it. gerri: no matter what you have heard, obamacare is making more companies dump their coverage. also, would you eat chicken nuggets from china? notorious for food safety problems. get ready? you are about to. and a's -- its money-saving monday. how to make a few hundred dollars on your of smart phone. we are watching out for you tonight on "the willis report." ♪
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