>> that came out of nowhere. >> we are against bailing out gm. >> you cannot vilify wall street. >> there are a lot of small businesses out there as well. >> build contractors, there's a lot that can go wrong. >> too much government is never good. >> the government always has an influence. >> using the recovery has occurred? >> no. >> people are still marketing jobs. >> the financial crisis has made everyone redefine who they are. there is no middle class.

gas is going up, rent is going up, everything is going up. >> the presence of the economy is going in the right direction. neil: five years after the bailouts, we are trying to figure things out. welcome, i am neil cavuto. what started as the means to continue meltdown has now become a mania. everyone still needs their fix. that's what happens when you rescue one and pretty soon you have to rescue all. this isn't about being too big to fail but having too many accounts. maybe they will stop getting their monthly fix from the fed. imagine their release.

the day will come when the drug dealer says that you have to come back. they will have to be on their own. it is amazing that it was to me, what scares me is the very thing that used enunciate them another day. a not too long a ago day. over two monica crowley and lori rothman. be careful what you do in a crisis. >> i understand why the bailouts happen at a time. but i understand they took place in an atmosphere of extreme economic financial and political chaos and panic. this was right before a presidential campaign. so i understand why we went forward with the bailouts. but the problem is the long-term consequences of this. the bailouts were supposed to inject massive amounts of money into these banks to unfreeze

wending and get money flowing again. and this includes the broader consumer economy. also, you never saw a cleansing out of the system. because of the bailouts never got to the bottom and that's why you still have toxic assets sitting on these balance sheet sheets and you still have an enormous mess that has never gotten resolved, which is a huge drag on the economy. neil: and it is a dependency that hasn't been weaned off. wall street, the federal reserve, it said says that we are not going to be moving on this nicotine fix. calm down, but there was a time when the very thought of capitalism independence, a monthly dependence. >> absolutely, we are a nation addicted to stimulus. we were expecting to begin to

wind down this extraordinary stimulus. a huge surprise. but it is troubling. what it says is a message. wall street. the federal government is saying, go ahead, take monster risks and make dumb bats. because at the end of the day the government and uncle sam has your back. neil: i think that is very clear that there are spikes are too big to fail. have the former inspector general who is telling me that you can't tell me that bank of america is on the brink. but we're not going to come help. that is just the nature of the beast. the government is the backstop. and it will always reward you no matter what. >> one of the big reasons, it is not the sole major reason i'm even got into this fix. it is because the government engage in social engineering and the economy.

>> that was the danger. it really began, as you guys know, a bank rescue fund that went to propagate the auto companies and help with college loans and help those that were laid on their mortgages and help for those people again when they failed again. >> that is right smack so that is what is troubling to me. i want my kids, this is the most important thing, to make good on public education. so i question what is the government's role is our safety net. when your house is on fire from you on the fire department sure. but it's gotten out of control. we talk about massive government spending day in and day out. another budget fight in washington. yet it's this culture that money seems to grow on trees at every level. >> because they have been going nonstop since the crisis began. neil: where would we be if we didn't have the feds supplement may not. >> that's a great question. neil: i hear you, corporate

profits, i disagree that this is a market. >> you might have some turmoil at the stock market, but there are near record highs. the economy is in a slow growth mode. would we have to lose right now? i think it would be very interesting. >> this has been my point for five years. we never let the system flush itself out and never got these toxic assets remove. neil: the government, in a way, force these guys like crazy. we then have don't have to support them when they're on the brink. there is a logic there. but what is done is done. you made your bed and now sleep in. >> when i talk about social engineering committee directed community reinvestment act. this is about giving loans,

forcing those loans to those that cannot afford it. and here we are, five years later after the meltdown. now we have a government is engaging in the same behavior and they are going down that road. saying things come he might want to take a look at giving low-income people that have no access, income, credit loan so that they can have the american dream. that's how we got in this mess fighters later after this catastrophe. neil: there are institutions now its credit rating is decided on how much of the government backstop they have. unless they get more government help, they won't get a higher credit rating. so we have this built into our culture how much of a role of sam is playing. >> it is absolutely twisted. there in a rock and a hard place.

>> they are also forced to maintain higher capital reserve with the bank regulations. that's another discussion with a watered-down regulation that are going nowhere fast. >> bank of america on the brink. merrill lynch on the brain. they are on the brink. >> if we rescue them today, yes. >> that said, he is coming in ahead of the regulations and getting rid of the non-core assets. >> he just got stuck with a huge fine. >> trying to be a trailblazer

again. neil: up next, behaving tragically. today, not making a case, they say losing. and opening the capital one purchase eraser? i need to redeem some venture miles before my demise. okay. it's easy to erase any recent travel expense i want. just pick that flight right there. mmm hmmm. give it a few taps, and...it's taken care of. this is pretty easy, and i see it works on hotels too. you bet. now if you like that, press the red button on top. ♪ how did he not see that coming? what's in your walle

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>> if you thought you knew neil cavuto, you have another thing coming. this monday, something new is coming. it is kind of like the old, but better care. a lot better. neil cavuto, the shell that you can't afford to miss. neil: everyone is excited and certainly we are as well. you saw that illustration. atm, you can bet that bill o'reilly will be watching. within minutes, predictable

republican compassion. >> republicans don't seem to be focused on how to grow the economy and middle-class. >> that was the very day of the mass shooting. one that he was pointing out the resistance but he continues to face. while he upped the ante again today. >> what we now have is an ideological fight that has been mounted in the house of representatives. that same faction in congress. they are no longer talking about investors when it comes to the budget. never seen in the history of the united states, the debt ceiling, or the threat of not raising the debt ceiling being used to extort that president. the one that is only a couple of

days after the shooting. the business roundtable one. republicans risk insolvency. even this week of all weeks when they were saying it. it is the very curious reaction i got from a business crowd that didn't seem to care much either about it. why is that, carl? >> it's like they are not listening. >> they are always looking for someone else to blame. the president wants to break and trembling the minority in congress that he wants to blame somebody else. he comes out of the incident and says that we will get to the bottom of this and we will investigate this. how about the nazi? what happened there? let's give that to a man who is tuned out. i don't think this president has

a clue what the middle-class is that he wants to help. he doesn't understand that the middle-class and small business create all those jobs. right now, they are not only afraid, but these people cannot even read the 10,000 pages of regulations that were put out on obamacare. they don't have a clue what the heck to do. i have 550 employees here in buffalo and i read their stuff and it is absolute confusion. but then i read about him taking revenge on employers like jamie dimon and standard & poor's for saying the right thing. and i say, what can the president has this? you remember when your dad could sit down and say if you did this and this, you would have an opportunity for a successful life. what can we tell our children today? what can we tell our children about the future?

beyond that with this guy in office, we are going nowhere. we don't have a clue how to do that. what happened to the famous jobs council and they put him as the head of the jobs council. here's a guy that is shipping the jobs to china. what happened to that group? >> you make a lot of sense. one of the questions that you raise a very good point. this notion of business eggs. what was surprising in this luncheon today if he got polite applause, a different a different reaction. like the crowther has given up on him. don are the protesting and it's like they just said, okay, we are going nowhere with this guy. it's a little too early to be

that mindset, isn't it? >> i think that they are sending a message to congress to stand strong. stand strong on obamacare and defunded. and make sure that you get your cuts. the whole idea of keeping this entitlement growing is that we have 1.8 million people last working today than we did before the recession. all of those people dropped out of the workforce. why did they drop out? because we have entitlements that surpass entitlement programs what they were able to earn. when we figure this out? neil: but the bottom line is, i always think that there is a enough blame that can go around. i can certainly blame the president for biltong ventures, pursuing health care when jobs

showed been number one. that seems like a blame game will never ever start in washington and that is what worries me. maybe that is what these business guys will resign too. >> why is he holding up the fight. to saudi arabia and opec have something to do that? why does he take this stance against using our own raw materials here in america. everyone is trying to figure him out. for a little business man, that is very difficult because he has trouble keeping his business together everyday. that businessman is the taxpayer and the foundation of those monies coming into the american government. obama has missed the point. it is time for congress to try to straighten that out. not just all follow around and do as they are told. now is the time for them to

speak and write what is wrong. that is what they are waiting for. that is what the businessman is waiting for. he doesn't buy into any of obama's future suggestions for job creation in the future. neil: carl come it's alwwys a pleasure. a lot of people forget a multimillionaire business started for nothing. that was then. meanwhile, his face is everywhere. the washington dc mayor after a tragic shooting. but to hear wal-mart tell it, and even more reassuring presence after a decisive rumor went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant

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neil: wal-mart wins another big-box retailers have the dc

council in a box. members did not have the votes to override a veto. so wal-mart may not fear having to pay a higher minimum wage so it can go ahead and open new the new stories in the district. a victory for capitalism. dd says yes. it is time for a legal clash over all this cash payment why? if these people don't want to work at wal-mart, they don't have to. neil: at the end i had to decide on jobs i could get versus jobs i would lose. >> can i do a little breaking news? you can be very sorry that this went away dead. nobody's talking about this in the dc city council, there were nine councils, enough to surpass

a bill, voting to raise the minimum wage across the board with inflation. good for you, you have your wal-mart big-box. >> now you can look at that and say, you can get a slightly lower wage than what they were looking at. >> depends on how far back they go. >> they want to go back to 1852. >> really indexing it to a time where can go up to $14 per hour. there are wal-mart shareholders all over america, a few that are in washington dc. >> these are poor areas. neil: the bottom line is that it's not over until it's over. but wal-mart is saying that they are moving too soon. >> i think that wal-mart does what wal-mart does.

we keep money out of our city. >> haven't heaven for that the people that live there. you don't care about that? >> they do get a break on prices. and how are they keeping the prices down? >> on the backs of people. you cannot make a decent living. >> did you ever see the concert? it was awesome. >> taxpayers opening up their wallets. $650 million in health care benefits to illegals that have children. that is just one county. dd, you say that this is out of control? >> 's it is bad when others get the handouts.

california is buried in debt, that is a big reason. illegal aliens are destroying that state. neil: the poor people don't have a wal-mart to go to in los angeles. but now they are forking over bills for benefits. >> the devil is sadly in the details. can you men that? obi gills with american-born children. these are american children like it or not. >> okay, so you are okay with this? >> you want to discriminate against american kids that were going to look like you and me? would you want to pay directly to the kids? >> they don't have pocket jets, you can give them the money. >> illegal aliens should not get benefits whatsoever.

>> they are the ones not getting it through and as soon as they get to america, i'm going to have a kid and then that's what's going to happen. >> and don't let them into america. neil: but that is what they are trying to do. >> change the constitution if you don't like it. right now a kid born in the country is an american. >> i don't have a problem with this. but i do have a problem with discriminating against american children. >> what about our kids? what about americans in general? >> we are americans in general. >> illegal aliens with kids should not be here. it is not fair. >> american taxpayers are paying

for. >> if they have a kid in this country, they are protected. >> oh, come on. >> i am proposing now if any kid comes to this country looking like you, they will be turned out. [laughter] >> i would actually agree with that. [laughter] >> we now know that there is security clearance. but how did this guy get security clearance? we will have that next you make a great team.

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neil: now we know the only thing special about the dc shooter is that he started shooting. before that he was just like 3.5 million americans who had similar security clearances. but after edwards noted, you would think he would've cracked down on all of these passes we were handing out. richard meyers is also this nation's 15 chairman on the joint chiefs of staff on why that just might be the biggest security threat that we face. and how many are slipping. >> you bet. you bet, neil. the security clearance process is a huge process. like a wheel that is set in motion, the start of a long time ago.

i think we have some of the vestiges of the cold war still with us if you look at how we do this. neil: you know about this process better than i, general, but you can't tell me that 3.5 million people need this clearance. >> that is always a concern and that is the first concern when you look at that. but if you take the case of the shooter in this case, he was out of the navy and his clearance was essentially active or semi active for up to 10 years. so there are probably a lot like that who have inactive but activated quickly they wanted to go back and with contractors that needed clearance. but the fact remains that there are a lot of folks that have been. >> a four-star general and a genuine hero. you don't have time to be looking out who or who is not in the facilities. but what struck me as odd was that even when he handed in and show the wrong id, no one batted

an eyelash not concern me because he had a different id and he's still got an. >> one of the issues that you have to deal with all the time is complacency and jobs that can become tedious. we were checking ids and upset, that can become tedious. we have information technology that can make that able to line up. and you don't have to deal with that. i think there's a lot of things have to change, obviously. >> you would notice this better than i, is a policy now that we are not allowed to have armed personnel on an army base? is that accurate? >> it doesn't sound right to me, but i'm not the expert right now

and not. so i'd have to check and get back to you. that sounds preposterous. >> i thought so as well. but our own judge looked into this, and what was accordance with what was politically correct at the time. certainly dramatically cut back. they said that this might've been why assad was able to kill as many people as he did. thirteen of the texas texas-based. because no one else was armed. that be that as it may, i'm wondering whether to get the focus on all the stuff that doesn't matter. collecting phone records, giving the nsa the power to look at it three to four e-mails -- three out of four e-mails. we are being super high-tech that we are not really that low tech. >> we are in some areas that you mentioned, the nsa and so forth. that we are low-tech when it comes to security clearances. they still focus on things that

really mattered in the cold war. but they still matter and i think was relevant and surprising then foreign travel. every time i have to redo my clearance, they say, have you traveled to any foreign countries, and of course i do. i do that all the time and so do a lot of americans. you have any foreign relatives, and i don't. but more and more people have relatives outside the united states. and i don't think, as you mentioned, i don't think we are using technology to do the kind of checks that we are doing. so this is a big process. i think we have a lot of people in that process that are doing these investigations, at least in my personal experience, they're probably not as well trained as they used to be. >> you have to deal with the same nonsense that i do and going in and out of the country. the chairman of the joint chiefs of staff. welcome to my world. >> as soon as i retire, is going i was going to reagan airport and one of the tsa military

veteran said, hello, general myers. and i said good morning. and i said, stand over here for the strip search, please, sir. they were polite. but they're like everyone else and not how they treat you. and that is fine. neil: given your status, i would salute and can't say no. >> i don't do it because i know what the consequences would be. it would just get harder and harder and i have a plane to catch. neil: general, thank you so much. former chairman of the joint chiefs of staff. all right, the fed has made it official. in the most successful investors on the planet. how does he feel about it? and all of his investments quickly gets in and out. we will have that next. is just a tap away. ♪ introducing at&t digital life...

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neil: i wonder why it the

legendary billionaire investor will tweak about this. carl ichan, i do want to get his reaction on the federal reserve decided to keep this $85 billion per month that has been dividing the markets for a little while longer. not cutting back on it or tapering. carl ichan on the phone with me. what do you think of that? >> i am no great expert on him. but i do think that that is what is really holding it up. the fact that you follow the fed. as long as they keep doing it, i think that that be a positive for the market. and i think that it will be even stronger ben bernanke. >> does that bother you that we are pumping this up based on the government providing all of this

care? >> that's a problem. nobody knows what's going to happen. it's like you're in uncharted territory. as long as you have the punch bowl, you don't know if it will work or it won't work. for the time being it is bullish for the market. because if you can borrow the three or 4% were due synergies and make 12% or 30%, you don't have to be a financial genius to understand that you will make money. neil: what about these great profits that you have to report. >> i get into my whole philosophy that there is no corporate governance in this country, there is no democracy at the corporate level is. and frankly that is why i made a

lot of money. companies are undervalued often because of poor management. and you make management accountable. suddenly start making a lot of money. it's a shame, and this is what we have been trying to do. you have shareholders know that we need to do something about this. >> so you try to wake people up and you ultimately do that, but not for profit in $80 million. you are involved in a billion dollars worth of stock, and you like apple and you like the product. what are you going to do? >> and this certainly seems to be economy that has a good ceo. i think that it's almost crazy not to go in and buy stock here. it is almost a shame that they don't do it because it's a

no-brainer. you have 150 billion in cash, but even if you don't want to use your 150 billion in cash, it makes tremendous money. so you buy stock at 17 and 18%. >> but what if they don't do that? what they say, we spent a lot of money on that, we take the opportunity gingerly and carefully. if they don't start doing that, what does carl ichan do? >> well, that is an open question and right now i hope that they will. i have had a good couple of conversations with people that have said yes and no. but he is a fan of buying stock back and he's already doing it. so there are many companies that i get involved with where we do it peacefully and people don't even know about it.

you know how i feel about certain things. and we get recognition quite a bit. neil: i'm sure that you do. that would be my worst nightmare. >> i don't want to put it that way. in some cases it is, in other cases -- i think that we've been very destructive. we just sold her stock and it has occurred for quite a while. i think that he has done a great job. neil: what about herbalife? they made a lot a lot of money there a lot of money there. where you stand on that? >> it's not against the company's management error. it's really completely and totally wrong. that's almost a no-brainer. neil: you're talking about doing more harm than good? is that right? >> yes, i mean, i think that

they wrote a report that, to me, it was ridiculous. even now they talk about this being good or what have you. but the real issue is that herbalife keeps making more money and it doesn't, in a legal way, it does put people out of work. you have people out of work and you may like the product for me may not like the product. but, you were supposed to go to 47 street, maybe that means that they do a service. but at herbalife, they have done a product like this for years. so i think that it's just siting at the wrong level, so to speak. and i do think the company is still in this way. neil: would that affect your

investment strategies going forward the data that stops or slows down the tapering? >> we are very proud of our record. in this year we are up 30% already in a hedge fund. and i say that because it proves the activist model really works. and i think it will work whether they taper or don't taper. but we keep a 40 or 50 or 60% hedged on that. as they say, you know, i think that we will do better than they have done in the market for the last 14 years when we started doing the activism in a big way. so the ip benefits from that. and as i told you, we are doing this twitter account and i think you might have flash it up and you can follow me there.

what of the things i hope to do is change some of these laws that are unfair to shareholders spelunker icon, thank you so much. neil: it's very good to have you. thank you very much. >> in the meantime, while green shoppers. it turns out those breathing workers were just told that they were being dumped onto a health care scheme. it is not that health care exchange, but maybe a better health care exchange. we will have that coming up next 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.

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neil: i really don't know how these companies sell it, but i neil: i really don't know how these companies sell it, but i know that they keep doing it. walgreens is the latest to tell its workers that we are not into providing health benefits for you. so we are giving you some money to buy the same benefits for yourself and good luck. the idea is to push more employees into the so-called private employer exchanges that are popping up. some see this as an intriguing alternative to health care laws government on exchange. so they're all our candidates. either way, the trend is very clear. companies from walgreens and sears. they are offering health care benefits on their own. my next guest has been loving it. that is because the corporate health exchanges bringing in all of those eligible employers. by last count more than 160,000 with chief innovation officer. explain how this is different, jam, then the governments run

exchange program. >> thank you for having me on the show. neil: it is good to have you. >> the primary differences are is that these are group based employer-sponsored programs. they are called exchanges and they have a lot of similarities with the state and federal government will be operating in the coming months. but they are also different. they are built on the same kind of employer to employee to help and relationship with the traditional marketplaces had. an administrative process that people go through is designed for employees of large organizations that are used to a certain consumer experience today. and it is intended to align with that. so it will feel a lot different to the individual consumer going through this then it will in a state or federal exchange, which is designed for individuals not employees. neil: for a lot of people fearing the government exchanges, why would these be

better? >> well, they are different. they are intended for different populations. if you are an employee of a large organization, the state exchanges really aren't readily available to you. >> are you up and running now with these? the problem is a lot of them are not up and running and might not be for some time. >> that is a great point. we have three employers that you mention. as part of this for all of 2013. as we announced today, we are adding an additional 15 employers for 2014. so the model is up and running at its operational and families are electing these health care coverage is that it will grow threefold for next year. neil: two things, the workers, how do they feel about this?

how do you comment down? >> one thing that is interesting in an organization like ours is that we are all experts. they get lots of unsolicited opinions from the rest of us because it's what we do for a living. but by and large we communicated it pretty clearly and effectively and explain to everyone what the different choices were going to be. how the employer subsidy would work. in our case, if you are covering this but does cover yourselves, if you participate in our wellness program,. neil: this sounds a lot better than the public exchanges. they say that this is an alternative strategy like this? >> edited the passage of the health care law accelerated this movement but do not necessarily create it or drive it in the

model that works with or without it. the reality is with or without health care reform, employers have been struggling with health care costs and they primarily solve for that in the short-term by shifting costs to employees. to the average employee has been an 80% increase since 2006. without regard to health care reform. and this really came out of employers needing a different way to create a competitive market way to give employees choice while better managing the costs. neil: we put it out there for a lot of you folks. you do have some choices. when we come back, the fallout from the federal reserve that says that we are still all in and we will still be providing care month after month. lease for the next few months. and hearing everything from our marketing partners, the media and millions of fans on social media

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we began with the federal reserve that has decided to keep was blitzed. party on. 85 billion per month in buying mortgage-backed securities treasury securities, never they can get their how little hands-on for another month but two, three car to say. making it clear it is not taking a bus boy. what should you do now that the fed has decided who is now leaving? and okay. let's ask. >> okay. i could see the headlines brewing. mainly in the mortgage sector. a lot of mortgage lenders and banks will say, the fed will -- their will translated, but rates will remain low. come in and grab those refinances. an area you might want to look at as an investor on this news would be the mortgage companies, maybe even the home builders. from the air is a lot more information before i can just say that this is okay for the markets. don't forget that this will raise questions. why did the fed not taper?

is there something that we are missing in the day? is a weakness that we are not seeing? send other questions began to rise. that mortgage market might remain a little hot here. neil: being a genius that you are, you hit on something immediately. almost all signs pointed to let the tapering began. ten of 15 billion less per month, and they opted not to. me thinks these guys to have a lot of data at their disposal, much more than any of us ever well have looked at it and said, no, now is not the time. you could actually take the counter view. be worried. don't necessarily be happy. >> and that is that you might take. they could use a genius. i think we can agree. i think this is the scary. neil: he is way too young. >> he is too young. neil: go ahead. >> she keeps in such great shape. i tell you, that is the problem. you are going to get fooled into thinking it on the rates are going to start dropping because

that is what has happened, but the reality as rates have gone up pretty considerably of the last several months and are about to go up even higher. the stringent nature of what the fed is doing here as far as them having their grip on the economy or at least the data is something nash's aerosol. if there's something going on beneath the surface, stimulate to such a degree what is it that much danger as opposed to stocks of the road? neil: how much can they control anyway? they gig is up and they fear that what they're doing is counter to open the economy and will be inflationary. as always been a fear. they put themselves on a line saying that we will keep providing all this. you set up great expectations that might not be realized. >> the strangest words that come out of bernanke's now today was that he is lowering the inflation forecast.

use them smart, but i don't think and the smart of a guy. you look at the basics, china is getting ready to unleash an enormous stimulus package that the state and local levels. and if we are putting all of this money, how in the heck can it be coming down? one way. and that is by global consumption just falling apart. again, it is these -- this is where i believe the warning signal comes from. the forecast being lowered. neil: ready think we would be of the fed stops? come much higher would rates b? >> i look at the ten year which is the amount of money that the government will pay you to lend the money. i would say that rate would be three and a half percent. we are both three it this point. as far as stocks go, you're looking at stocks 20 percent lower without this stimulus. i maintain this whole time, people are avoiding bonds because the fed is in them. they have nowhere else to go. neil: well put.

far too smart to join this. thank you very much again. all we know is that five years after bailouts, tomorrow we will be on that next. gerri: hello, everybody, i am gerri willis. tonight on "the willis report." with two weeks to go before the rollout of the new obamacare exchanges, big employers pushing workers to take care of their own health benefits. president obama: if you like your health care plan, you will be able to keep your health care plan. gerri: the new iphone reviews are in. wait until you hear what everybody is raving about. and our special series this week, the user's guide to education. so how do you get the right financial aid package? where watching out for you tonight on "the willis report." ♪