tv The Willis Report FOX Business October 9, 2013 6:00pm-7:01pm EDT
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as a you right back here tomorrow at 5:00 p.m. for more "money." "the willis report" is coming up next. ♪ gerri: hello, everybody. tonight, a salmonella outbreak. hundreds are sick. the cdc blames the government shut down. is that true? we will investigate. also, the u.s. is now supposed to be one of the world's top energy producers. why are consumers facing soaring heating bills? and twitter is about to go public. here is what you should not do one day one. watching them for you tonight on "the willis report". ♪
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gerri: well, our top story tonight, a salmonella outbreak raising alarms about how safe are food is. the cdc blaming the government shut down for the slow response to link foster farms to the outbreak and is bringing for letting employees back to work. the company has a history of prior illnesses and was flanked as recently as last february causing at least 124 people to get sick. and while the usda is threatening to shut down three foster farms chicken plants, is enough being done? with more on this, executive director at the national consumers league. thank you for coming. this is one of those critical stories. the safety of the food supply. i want to work through a take talk of what has happened. this sure is not the first time we've been through this. all the way back in january 2010 consumer reports found 80 percent of the chicken they sampled had tested positive for
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salmonella. in may 2012, i recall of mislabeled turkey burgers. in februaryy2013, at least 124 people in 12 states get sick by raw poultry link to this company and finally the news we had most recently in may about recalling grilled chicken breast reps. is this usual, is this pattern of problems normal? >> absolutely not. this company has the fingerprints on on lot of poultry products that have bacteria in them at high levels, much higher levels than is normal for the industry. the company needs to take greater responsibility and work with the government inspectors, state inspectors. this is obviously a company that has problems. and of the government is threatening to shut them down of that next couple of years.
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gerri: the question occurs to me because this is now 04-year problem and least. why hasn't this been stopped? >> well, this is a laborious process to trace back where food borne illness comes from. it has to be done responsibly and carefully and traced back to the particular plants involved. in the company in business does not want to be shut down if there is not a good reason for it. so the government inspectors and laboratories that do the work and have to be careful -- gerri: i agree with you. it looks like there has been ample evidence of difficulty. i want you to respond to with the company is saying. the safety chief for the company says salmonella is naturally occurring in can be fully eradicated if raw product is properly handled. do you agree? does the statement go far enough? officials in washington are
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saying, on. people getting sick. it is from this chicken. there must be increased risk of bacteria. >> first of all, we think they're ought to be a recall and that the company ought to take steps itself to recall that product immediately. it just won't do for a company like this to push the blame on to consumers. yes, consumers have responsibility to take care when their work with products and when they prepare them. but some people are going to restaurants in the in the product salmonella can be prevented. and the other issue is that the company needs to work with government regulators. gerri: you said that before. here is what we know. this is been going on for four years. the cdc is saying today the government shut down is creating a problem. they brought back and people start looking at this, but isn't that just an excuse?
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isn't the government slow to the party? it has clearly been in trouble, as is set at the beginning of the interview, company that has been having many problems with keeping its food safe. >> certainly the government can always move faster. but this company bears the lion share the responsibility. they should recall these products months and months ago when a new there was a problem. by the way, consumers preparing products, it is not just cooking and to a certain temperature, but there is always the danger of cross contamination. this is an opportunity to educate consumers about making sure they are not preparing vegetables on the same cutting board is they're cutting of chicken. things can happen in restaurants with contamination. gerri: if you are suddenly seeing an uptick of cases it is probably because there is more bacteria. she says don't blame the consumers. they're doing the same thing
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they have always done. do you agree that the government , little grandstanding it's because they're is a shutdown. our remixing and dangerously so, politics with food safety? >> i don't think so. the government laboratory has been working at much reduced personnel. as i said, these things take a while to trace back. this company is responsible for issuing its own recall. the government has been taking these deliver it steps. and because of the shutdown they have fewer people in the labs. the usda said a shutdown. where you go for informational? gerri: four years in the making, this problem. it is not five days. thank you for coming on, and thank you for eliminating how this process works. >> my pleasure. gerri: well, shut down out of
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reach. today number nine. families of those killed in combat are heroes have learned there being denied military death benefits. joining us now is lieutenant colonel steve russell, a military adviser to concerned veterans for america. welcome to the show. i have to ask you, a solution may be on the rise in, but what is your reaction to the failure of the federal government to take up its responsibility here for military families and our heroes? >> as a combat veteran, i hurt. i heard with the families. this has never happened before. our government should do better. our veterans don't deserve this. the families don't need additional pain at this moment of crisis. gerri: he led the team who captured saddam hussein, put
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your life on the line. you have been in harm's way. you know what that is like, the pain for families, the pressure for families, what is the misses tonight that is gone to the people who are protecting us in keeping a safe? >> we only ask for a few things when we serve, medical care, pension and retirement and proper honors at burial. his only ask. dahlia seeing that ended. worse, we see even one did warriors hanging on to life in germany off the fields of afghanistan and now families which could embolden them to have the will to hang on are not being allowed to fly and be by the bedside of a loved one. my message is this, mr. president, when will you start acting like the commander in chief? when will used to being a leader veterans from all of the country, we need to lead our government no that this is
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absolutely unacceptable. gerri: i cannot agree more. here is what senator mccain and to say. >> what to the american people think when they see that death benefit for those who served and sacrificed in the most honorable way is not -- families are not even eligible for death benefits i am ashamed, embarrassed. all of us should be. gerri: ashamed and embarrassed. he need more than words to my would say. >> well, we need action. the united states marine corps has already ignored the department of defense guidance saying that they interpret this as excepted activity. the army, navy, air force, the branches need to follow suit. secretary haig has not provided
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the proper guidance to congress. congress is playing games and the president needs to be the commander-in-chief. warriors deserve leaders and government. gerri: you could turn any defense department executive upside down and come up withh3 money that is owed to these people. we were debating it in our morning meeting. the government is not supposed to spend anything. the department of defense has one of the biggest budgets on capitol hill. it seems to me that the money should be there. do you fear that they are grandstanding, trying to prove their point about the political debate over the budget, the shut down in the government, and the result is our heroes are getting hurt. >> i think that would be true of lawmakers and perhaps the executive branch. i don't see that from the department of defense because in many cases the only discretionary funds available in this big fight over budgets often come from the defense establishment.
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so much is in entitle law that there is no money to go after other than defense dollars. our service chiefs do a good job, but we need the president to take the lead. he can step in and correct this immediate measure, but instead he says were not born to play games and have a piecemeal approach to solving the crisis. mr. president, are wounded warriors and those who sacrificed for our freedoms are not a piecemeal approach. gerri: we have heard from the president's spokesman here said that there will be -- something is going to happen. we have had to of the me tell you, the fisher house foundation picking up the tab. ken fischer, their founder, after living and i lived on these families should not have to endure more pain as a result of political squabbling. i'm sure you agree. >> i do. while we certainly applaud the fisher house, we should not have
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to support our warriors froo the nickels and dimes for burgers and we need to do it with leaders and government. gerri: will put. thank you. >> thank you, thank you for having me. gerri: an absolute pleasure. now we want to know what you think. is the pentagon ducking its responsibilities to our nation's heroes? log on to gerriwillis.com, but on the right side of the screen, and officers of the end of the show. unbelievable. veterans and disability benefits, death benefits for military families, a clinical health trials, social security. all deemed nonessential. and they're not giving any funds from the federal government during the shutdown. there is a good news for those on capitol hill responsible for the chaos. every single member of congress is still able to take on his are $175,000 paycheck and of course the president is getting paid.
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the good news, dozens of these lawmakers are donating salaries to charity, and some have furloughed staff, but not all. a good number have deemed their entire staff essential. the special subway trolly to get lawmakers from their offices. the short walk to the capital for. one of the most important part, the house gym reserved exclusively for lawmakers, still open and being funded by taxpayers. but in sacrifices. they now have a dead. unbelievable. more to come including the best way down to a big bank. next as the cold weather sets and to my new report shows most of us will be paying more to heat our homes. details after the break. howdy partner.
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the u.s. will be the largest producer of petroleum and natural gas in the world. according to u.s. energy information administration we beat out russia and saudi arabia . why are 90 percent of homes expected to see a rise in their winter heating bills? here to explain, the chief of oil analyst for oil price information service. great to have you here. first of all, you agree with the government. did they have the numbers right? >> at think it's part of the whole global segment. when we do talk to my global growth and global demand, it's a lot to do with developing economies, agriculture, manufacturing, all very intense. gerri: us talk about what's going on. u.s. home heating, 56 percent of homes and using natural gas. as you know or producing more. 6 percent of homes using heating oil, 38 percent use electric
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heat. across the board or seeing the amount of these products arriving -- present being produced here in the u.s. helms using natural-gas will see a 13% increase from a year ago and prices. think about that, producing more natural gas than ever and yet consumers are paying more. that just does not seem right here. >> it doesn't. the source of natural gas in the louisiana and texas, it's cheap, third to a quarter of the cost them a place like japan the natural gas costs of through the roof. gerri: i care a lot less about japanese customers that people right here. we're producing more here, that's the promise of producing locally. that's what we approve it and agree to have it in a backyard because it think it will bring down the price. why we left sort changed. we don't really fallen natural-gas as much as we do heating oil. heating gile is very provincial,
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mostly in the northeast. as you mentioned, 6% of homes use it. a couple of the positives, one, it's clean air and cleaner. as a by a component. new york, the state we're in right now, it's very similar to alter low-sulfur diesel. on top of that, as any customer can take advantage of that when using heating oil. you can negotiate prices. a lot of time to dealing with a small business person is a utility. you can use special times on the prices are low blocking a price. gerri: there are strategies. just to remind people, heating oil customers will see a 2% drop in prices, but there's still the second-highest on average. i love this. estimated petroleum. gerri: in the u.s., russia, saudi arabia, we are beating the pants off of them.
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i wish there was more pay off for people in this country. thank you for coming in. a pleasure to me. good to see you. later in the show, and permission you need to know before you go out and drop your hard-earned money on a twitter ipo. next, we answer the question have you do that. the best and easiest way to say goodbye to your big bank. stay with us. ♪ it's the little things in life that make me smile.
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>> customers are mad as hell. they don't have to put up with this anymore so how do find a real alternative for your money? joining me now from "consumer reports" last week there was a report babies risen over 15 straight years. , all one. >> put on your thinking cap. remember a couple of years ago when consumers were supposed to bring chase and citibank by taking the money out from the nonprofit credit union? it was a disaster because very few people switched or
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because consumers feel like the banks held them captive because of their unique services with the atms. gerri: i have seen the interviews i have seen the polls and what people say is they are afraid of a couple of things that something will happen to their many intransitive they switch also it is super complicated. what is your message if they want to move? >> the news is better now reviews which the top 10 credit unions have caught up with the big banks used to have the advantage in and many smaller ones are adding smart phone banking so the rating about them they offer the services of the bank including fdic insurance but they charge considerably less and pay higher interest
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rates on saving. but the negative is membership is only open to people of specific groups such as employees of a company or members said the association if you go to my credit union .gov those are good prospects of a wonderful opportunity. gerri: customer satisfaction survey leading the list the credit union score 82 a and i love the idea of regional banks bank of america is 66 what does this tell you? >> that people our mad as hell and don't want to take it any more. there are wonderful choices regional banks you have seen the ads in the forefront of the whole movement to bake
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human again it is making a profound statement now they offer the same technological bells and whistles to provide higher satisfaction than the big national banks. gerri: not everybody has access to the banks. >> devours did some great teams of the best and worst regional banks. you can find at what is working in your area. that is what i would suggest gerri: virtual banks? >> i like them more and more. they don't usually charge monthly fees with low penalties and they offer fdic insurance through direct deposit or electronic bill pay or debit cards and capital one and 360 jackie and co-pay are those to
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consider. gerri: there is no place to go. >> you can do direct deposit we have smart phones we can do everything. don't be nervous if there is one message don't be nervous technology can be your friend in this case. you can get the same benefit of the big bank with the foot a heck of a lot more service or a virtual bank. gerri: you always speak your mind. [laughter] coming up the white house moves up the deadline to get health insurance and facebook was the utter disaster shed people expect anything different for twitter? coming up.
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"best overall client experience." gerri: time for looked as stories your clicking on fox business.com. to date reporting mixed earnings news alcoa rises as the demand of aluminum increases but yum brands fell after disappointing results. also investors cheer was picking the next federal reserve chairman janet yellen was introduced today currently number two. she will succeed ben bernanke to be the first woman to have any central bank in the world. imf officials issued warnings about the dangers of the debt default although it is low but congress could let it happen that would lead to a worldwide shock to
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threaten the global economic recovery. also unsolicited 2.3 billion dollar bid the company says the offer undervalues the men's wear house but joseph a. bank says it is that a 42% premium. that is some of the top stories of fox business.. let's talk about twitter if you love it why not own it? twitter fans will soon get the chance to invest in the social media giant wants it unleashes the ipo but should small investors climbed aboard? joining me now author of the book you can never be too rich. you are able and with comcast universal? >> that is an important story. it is very clear businesses want to partner with twitter and comcast nbc universal
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announced a strategic partnershhp to integrate twitter as part of the viewing experience on twitter you will see a tweet and click on it it will take you to program they will participate in the revenue and in comes string -- into a string. gerri: this company has had no earnings. why do not like this company? >> if you are a gambler you have a shot at making a few blocks. but here we go again it is all about advertising and that dollar mont twitter they are very lukewarm by the advertisers. the cost of conversion is double the cost on twitter and other social platforms and if they had more advertising it will ruin the user experience. the only way to get the dollars up is to add more
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users to the base. right now that is slowing in the united states and china is not even allowed to richer in the country in the other markets are fragmented by other companies that will be very competitive. gerri: you are making some very good points looking at what is going on with this company it has been a black box what they are doing and we just found out they lost $67 million. >> is the early stage company. think of it like biotech and now they go into phase three now they have 80 million users. we use it for a reason because there is an advantage. gerri: is every and that we know is that the reason and could we look at another
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facebook? >> i love twitter. use a lot for my news feed but when you invest in a company is it a coal technology? is the company going to make money? i avery is a great company with a brand recognition bayou bite at a very high valuation. is twitter going to burn into that valuation? i am telling people don't jump in. no rush just see how which develops in the less you're a gambler just sit back and watch to see if they will create some earnings off of the model. >> first of all, you will not have a facebook fiasco and goldman sachs will not let that happen and they will not make the same mistake to drive up the institutional interest but
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there is in this stock may pass along to the retail investor. also i will point out that twitter takes a very responsible attitude to raise $1 billion they don't want to let it run away and get out of control and they want to keep the price down. gerri: here is my problem with twitter. if i of individual investor i am not getting in at the offer price i did not help to build this company i am not one of the investment bankers i have not even one of the best clients so there is no way i will get a great price i will not see the run-up. buying on the first day or even the first week is a true risk? >> absolutely. i says it back and listen to howard develops. there is a vast assortment to choose from there are far
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more prudent choices with an economic motive with rock-solid financial's. where your dollars go don't buy into the hype..3 watch the stock but look at the other options. there's a lot better choices for my money for the people i talk to. gerri: economic motive. that is a great phrase. lot of people will be watching and want to get an. alan and david great points. if twitter looks to other ipos it may be optimistic about its fate since she drake morris -- half of these have more than doubled with is the biggest price jump. number five foundation medicine. it analyzes tubers to focus $18 now 32. number for the benefit focus launched last month, based
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insurance platform -- the first day. number three noodles and company. one of the biggest ipos of restaurant went public in june now trading at $44 more than double originally. number two. potbelly just hat public on friday already up 120% but the company's income is down so we will see what happens next. number one of 2013 ipo sprouts farmers' market as americans jump on the natural food bandwagon it has done not from the original $18 price tag on the first day increasing 123 percent today at $45 a share. good luck to twitter i hope the same debt -- and hope they have the same trajectory. up next to take on the housing market in days
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when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪ gerri: no wonder the white house was so quick to a0 october 1st of the edge they knew it would be a disaster according to the "washington post" deal baum administration received multiple warnings that the new exchange had big problems but the white house went on anyway and with more on this we have health care policy expert from the heritage foundation. welcome back. what you make of this? they have of warnings from people who developed the sieges in those associated with it but they still launched. why? >> because the whole exercise the wingback more than one year is like
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"thelma and louise" of health care they will drive that right off the cliff. they had these warnings over a year ago. back in 2011 we were picking up the intelligence that hhs had with the national governors' association also democratic states that word besides themselves because they cannot get any answers. that was the floor be guided to the software. gerri: it past two 1/2 years ago but yet they still cannot get it together and the president wants to be compared to apple but they would not be compared to a product this bad. >> right. december 17 coming up will
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be exactly the same number of days since the law was signed as the bombing of pearl harbor ale and the surrender of tokyo bay. we widen world war ii in the length of time it has taken us to produce this. i was getting intelligence talking to the vendors from the beginning of the year and they said they have to have a no go date no later than june 30th. right after june 30th we start to hear about bits and pieces being delayed. gerri: let's shows an actual facts and numbers because he has been without as we try to figure out how many are getting on the exchanges and the big kahuna have the people are enrolling?
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so far we have found out because of federal government isn't talking about states like connecticut and illinois and kentucky and maryland we are showing this full screen right now. a map that gives the details. the president wants to sign up 7 million by the end of march with less than 100,000 right now what is the possibility he wants to do what he wants? >> but another point of the figure these people completed the application but i guess where that is right now? sitting in limbo and has not gone to the insurer because that peace does it work what the insurers told me before october 1st that hhs told them they try to get that working by november 15.
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they still may not get insurance in j. gary unless they complete the application. >> there is so many problems it was highlighted on the "daily show". you have to listen to this. >> we will do a challenge i will try to download every movie ever made and you will try to sign up for obamacare and we will see which one happens first. [laughter] gerri: that had to hurt the you cannot sign up. it is almost impossible. >> fell whole thing but remember they were still right teeing regulations and this is the problem. the only people who have never done this did it on a much smaller scale with far less complexity that is from
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those with massachusetts and utah even then they had no where near the complexity and was not verifying people syncom but reprogramming many already going to hospitals to say give us the list that you claim are spending the money we will give to the insurance then next year we will see how many people really deserve it. that is how they did in massachusetts and that was more complicated than utah. gerri: i know you welcome back and talk again. we appreciate it. we have gotten so much response about your concerns and questions we will do another call-in show tomorrow. there will be a toll-free number to call to ask me and a panel of experts. it will be a of turning
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are real estate ceo from better holmes a and gardens it is great to have you here. one of the big fears is the government shut down one of the unintended consequences is the jumbo loans cannot be closed because the irs has shut down how does that impact you? >> we have on see that yet to be honest. it impacts every industry to raise certain extent but not much has happened with real-estate. but one of our concerns is the government employees that are not being paid could end up having trouble paying were digit -- mortgages. gerri: that is a concern for everybody in we have llord the recent recovery has then encouraging for those of us who own homes. can't keep up? we are starting to see the bottom and we have seen some
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first-time home buyer numbers that are significant. is the housing market stalling or revving up? >> it is in certain parts of the country and it's always difficult because there are pockets that are very strong and other pockets that are not to. one survey that i will cite that we conducted recently with millennial spee coz they will be the driving force very soon between 80 and 35 year-old they said 45 percent want to buy a home in the next year five years. gerri: that is a big promise to get them into the marketplace because that allows the trade up with the entry-level that follows from their. do use the house scene gets
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back to larry used to be? but back to a more normal market where there are lots of first-time home buyers? eighty start to see the movement we saw a years ago? >> if you look at the numbers this year predicting over 5 million sales which is great news, double-digit increases with the price of housing and the number of houses sold part we hope that continues but there are so many different factors. mortgage rates are one in the ability of people to get out of their current home so the real-estate industry is complicated right now. gerri: the key for talking to us we appreciate your time. a lot going on in real estate. we will be right back.
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it's like a sauna in here. helping you save, even i- now, that's progressive! call oclick today. no mas pantalones! so i can reach ally bank 24/7, but there ar24/7.branches? i'm sorry, i'm just really reluctant to try new things. so i can reach ally bank 24/7, but there areally?ranches? what's wrong with trying new things? look! mommy's new vacu! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally.
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gerri: finally, the broken promises. the promises of obamacare to keep your doctor and your health plan in the promises the exchanges would work for the promises of federal regulation of the food supply the cdc and usda could keep it safe but that did not work out too well either a and with the promise of more oil and gas exploration and to reduce consumer prices. that doesn't happen either that is the message of the moment you are on your own to find your own solution. that is what we are here for to help you find solutions for you and your family whether the government or energy supply we will have the answers and more tobira night. coming up tomorrow the question in answer session is back to get ready as we
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devote the entire hour to get you the three should you need. that is it for "the willis report." see you tomorrow. >> new evidence of polltical corruption in the obama the administration. the house oversight committee says the internal revenue service and the obama white house has exchanged confidential taxpayer information. the federal reserve easy money policies are assured that the president nominates vice chair jimmy allen to succeed ben bernanke as the second most powerful person in washington. i am lou dobbs. lou: and gd
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