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tv   The Willis Report  FOX Business  October 12, 2013 2:00am-3:01am EDT

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that is our show. see you next time. ♪ >> hello, everyone. i'm dennis kneale than for gerri willis. what does it cost when you criticize president obama and his economic policy? the answer may be over $20 million. that is what someone is paying. we will explain. and facebook ceo demanding me privac not for you, but for himself. you in the meantime are about to lose more privacy on facebook. so tonight monica de part two, sexual harassment in the workplace is lal, but a judge rules is okay in some cases involving interns. our legal team will tackle that issue. "the willis report" starts right nnw. ♪
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we found out today what can happen when you are a top nuncio who openly bashes the obama administration. it will cost a company. the legal costs in defending itself in a slew of federal inveigations will total at least an astonishing $23 billion could go even higher. this for a bank tha our government thought necessary to raise billions of taxpayer dollars to bailout. the bank's chairman and ceo jamie dimon has been one of the few bold enough to criticize the white house econoc policy whichas ma him a target of sorts. with me now, former goldman vice-president who is now a holar and a liberal think tank . andeil weinberg, editor-in-chief of american banker. to start this off of what you to look at omething. we want to make a chart of the different agencies investigating
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jprg. there are so many we could not fit them all on the same screen. and look at this next screen. five more. ten agencies. that does not even mention the fha or the many state investigions. now the "wall street journal" editorial page, washington is leading j.p. morgan and may yet stirring up jamie dimon as a lesson in what will happen to any banker who dares to disagree with his washington bosses. historytelling needs conflict. vestar with conflict. what do you think of that point of view, the idea tt this is really at some point a witch hunt >> tha you for having me on. actually, i have the complete opposite view, as you might have guessed going into this. i think that the criticism and the fact that mie dimon has en so outront in the resistance to the form o wall street's haseally caused him toreate a whole sense of defiance against regulators
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which is really what has happened. if you look at t reports that we done on the london whale case, it is clear that he has created a corporate culture where regulations are n to be followed by the letter and the spirit of theaw, but to be avoided. i ink that is really what has gone on and why they have gotten -- dennis: by the way, did not see the chart exactly, but there are several other countries. i don't think he -- dennis: and yet, you know, jpmorgan takes its own money and loses $6 billion which is a etty good lesson about risk. t the goverent comes in on top of that advise them almost a billion dollars more. why fine a bank for losing its own money? what is that? >> obviously it should not be legal you should not be fined for losing money or taking risks in this case with the government is saying is that jamieimon or his bank was not
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being honest with the government. i can tell you, you asked if this is a witch hunt. ihink it is hf a witch hunt. clearly there are some people who don't like the fact that jamie dimon has been speaking , but we have also -- an american bker, some of the things that the governmenent is going after. were there in some cases firstnd i think that there is some fire or the smoke is coming from. example, thereere tryingo collect from people were delinquent on creditards. they did not have the records t go after tse people. it was extrely dubious behavior to either sell this to collection agencies or have thr entire infrastructure of lawyers around the country suing people when they did not have the goods. th have since shut that down and there in trouble. that is why the investigation is going on with the occ. dennis: in the entire meltdown jpmorgan was one of the good guys. they did not trade in synthetic ceos. a real and the government says were you pleased by a br stearns n washington mutual
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the. 70 percent of the offenses, all the companies, we bought them because you asked us to. we're picng on them. >> go back and listen to what was said by the management at the time he w acquired. they were giddy about the tranction. they brought to bear stearns for roughly the value of the property on park avenue. dennis: my point that these were guys who did something right. we are singling them out and are about destroy them. >> trading up. they actually are profitable, more profitablen wall street expected, but for the legal costs. they're in no danger of gng down. my point here is that they actually benefited hugy from the bailout. all of these other banks.
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not that they should- they should not be punished for things that went wrong. the partf the witch hunt is what you're sayg because he was a hero during the financial crisis, me and. that was good. now he isetting slapped for during that. also bank of america bought countrywide which was voluntary. they paid about $50 billion to settle problems. you cannot say. dennis: when a bank the worst melt down since the great depression is up losing more money not in a meltdown but in the aftermath because of the federal investiggtion and penalties, isn'there something wrong with our system? >> the could be sething wrong with the system or jpmorgan. >> you have to also take into consideration, jpmorgan was bailout. dennis: they paid back every pepenny plus interest. >> the best way to think of it that the whole system, whether it was money market
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funds or currency swaps, the whole system was about to melt down. so even though kaytoo didot miss -- jpmorgan did not necessarily nded an infusion, they benefited from the system >> by that logic we get bailed out to. dennis: we have seen meltdowns in the late 80's and in 2000. and in 2008. every time the government has to find a few culprits to make in the poster child and to kind of beat up on them so that we all get our mol lesson. what about a wal street amnesty? what about a treat and reconciliation commission? let's stop all this becaue i feel like we are bleeding the very banks that we had to bailout to save the syste. >> the bigger problem is the way we are leading the banks. there is validity to some of the government investigations. not all, some. also think that the regulation is going to strang us. >> the regulation is going to shrink kaytoo and some of --
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jpmorgan and som of the other banks by forcing rectus businins out of the banks. that is true. as a very good thing. i think that the fact of the matter is we have have -- we don't need a treat reconciliation committee. no one more than a fabulous vampire them a fabulous that has @%er been really prosecuted. the fact of the matter is. dennis: there was not true criminal activity going on. >> are the government has said the situation was so bad and tenuous. >> one other thing that is going on here. you have regulators, the office of the control, the currenc, fcc, played as fools during the financial crisis, did not see anything going on. dennis: now thecan be the ones in the system that no matter. what i worry about is that what we are rlly doing her is the will ossification of the american banking system we are making so that they are too afraid to take risk, not that
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they will lose money, but i will pay even more in fines. i am taking the last word on that. thank you for being with us. appreciated. now we want to know what you guys think. here is our question. is the government ought to destroy? log on to a gerriwillis.com and vote. we will share the results of the end of tonight show. and it seems washingn d.c. is set to destroy itself. onay 11 of the government set down president obama and house speaker talki on the phone. both sides say that while there is no deal the cha was consuctive. rich edson is at the capitol withhe lates >> well, talking in right now republicans in the house are waitin f a couer off from the white house. republicans last evening in late night negotiations presented the white house with an offer. raise the debt ceiling, reopen the partsf the government that are closed and included spending cuts and mandatory health care cuts as well.
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house republicans say they're waiting for a response from the white hou on all of this. right now you have this sense in washington where their rhetoric has been gile down. folks in the house are letting the negotiators for congressional leaders and t3 white house talk this one out. there's a separate track going on in the scent. number of republicans floating their own plans looking for democrats to sign onoard wch would close or open the government for another year or fund the governmt for another year, raise the debt ceiling for short-term in the medical device tax and health care law. the number of proposals floating around that these white house house republican negotiations are really the primary track right here. waitingo see. i have to tell you, democrats and republicans have been stuck on issues of taxes, revenues, government spending for years now. there are some certain things that they ccn do within tha where they st of agree and will be willing to go. long-term debt dea right n over the next few days is certainly not going to happen.
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>> some of the chaes the republics actual want to make our important strabismus. this to a 3 percent tax on medical equipment makers is on the revenue folks are not on the profits that are left over. th is the revenue. i talked to the ceo of a medical equipment cpany as it basically they will live, entir profit growth,ow, this started out as a fight about obamacare. it feels like it is not about obamare anymore. what you think? >> it depends upon who you ask because there still are all obamacare components the republicans are pushing for. republicans still want or are floating according to one congressman a 1-year delay in the individual mandatehat makes orequire almost eryone to have health insurance next year. when you look at the senate proposal, we just discussedhat there is that element of medical device tax which is something in a budget vote that does not really have the force of law. as an estate in a vote. it did not become law, but it did send a signal that 79 or 80g
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that tax. that should be an easy way that can be easily thrownn to this. dennis: the democratic controlled senate. refusing to negotiate or make any changes at all, yet the democratic controlled senate previoly said it was left that equipment tax. these gs will fight over anything even when they agree. >> and that is the thing. and so you he the white house message on this whichas been yoraise the debt ceiling. you find the government. and then we will negotiate. right now the white house i giving a little bit. when you have something like this this stef massachusetts , lot of medical device companies. senator is looking out for their home state interest, though they may be democrats, th don't want to see the tax. youave that and some other northeastern states with the same type of thinking. you wra all of these issues and might get t something. that is where everything is sort of moving all over the place
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rightow. it is tgh to tell what will be included. we look to that because it has been so popar in the senate. denniss one last fearless ediction. will there be an accord by sunday? >> no. dennis: nicelyon. okay. a lot more still to come, including ways to make your work experice a little better. and next if you're on facebook they will find you whether you like and not. why advertisers and perfect strangers or worsen ex lover may sn be able tt search you out. ♪
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dennis: add real-estate mogul ted the resonate far markucker byrd, paying $30 million to buy four houses surrounding s own in palo out so, california. ifou wanto do a flyover. fuelling his shopping spree is a lust for privacy after discering the developer wants to buy one of those songs and flipt by usinghe facebook
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llionaire as the hook, he made the move buying the homes by leasing them back to their forerunners. when it comes to your privacy, he takes facebook in the opposite direction, getting rid of a privacy feature that lets users limit who can find them on the site. here to weigh and, adam levine, the chairman of identity test 911. thank you for being with us. first, tell us why. >> they are arguing that since there are some money back doors wheee people can find you anyway , they can go facebook dot com / dennis kneale and get to you. so therefore having this sort of omnibueature about using search engines to get your tiline, you know, within facebook, it did not mean anything. dennis: a projection that was not doing much anyway.
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>> creating a false sense of security. dennis: previously and was able to stop some crazy ex-girlfrie search, but now cannot. >> except f the ft that it is such a small percentage of people anyway. with faceboo, a small percentage could still be millions ofeople. listen, we are facing a constant the erosion of privacy. there is no question. cebook has been leading the charge. he himself said that, you know, ther haseen a paradigm shift in the concept of privacy. at this point there isn't any. playing so much information out there. dennis: is a ridiculous of us in the privacy prut's even make an issue of it given that have much privacy anyone should expect when they go on and say come here is the college, my religion, what i think. is it a misnomer? should we never have expected any privacy? >> people have a certain concept of what they want to see in %-other people and being able to limit the people.
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facebook argues that depending upon the items and wherehey are that you can limit to iends, friends of friends, acquaintances, the solar system, you know, whenever you wan to do in terms of how public and expose you wish to be, but i think that in this -- first of all, we' living in a world now where i think we have generation i, generation invincible. people think they can say anythi, do anything, and they're bulletproof. and they are not. there are too many people what your information. dennis: if it is not careful it will be on the wrong side of this trade think about this. the american people are getting increasingly concerned about just howuch about the is available. california state legislatu passing any laws aimed at kids still have the right for the state forces website stick give kids a chance to take down comments. i was e-mailing the ceo of an outfit. they have temporary phone numbers or you can sign up and get rid of it in a day. in fact we hav a segment coming
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of later tonight michele. a bunch of new apps. ii type of blitz disappeared. those. so isn't facebook kind of on the wrong side? shouldn't they make i far better to let me know my ivacy? i have no idea how to do my settin and feel like the company is making it difficult. >> they claim they want to make to the pointhere you can decide when youo something to you want to see it. it changes. it is a myste. every day is a new adventure. and that is a great concern. they are ultimately going to end up on the rong side. >> , but the ns service that is more exclusive and more ruling out and as a lot more blockk and obstacles to others being able to come in and see everything. should they take this job back and turn it into a profit center? >> absolutely. a great article. th main annouement.
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a new program. $20 a picture you could make the information disappeared. >> i tnk that is a great business plan. the old days the white pages in the form but, you were listed unless you pay the phone company extra to be enlisted. maybe that model. thank you for being with us. and facebook by far the worls largest social media site with nearly a billion visitors every month. issues of privacy are certain to become a reality for the other si's out there. the most popular social media sites besides facebook make up torrest of five. number fiie, ggle plus, a fast-growing network. that numbeseems to be going o the up as opposed semaphore, the late my space, this 10-year-old network has been one of the rst to launch the social media crazed but is mostly a music sharing site. interest, the photos sharing site that's more than 85 million monthly user's been up items
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that they like. number two, linkedin, 102 million monthly users. the number one most popular social site is twitter. about a quarter of a million monthly user's, a quarter of a million has to be wrong. must be a quarter of a billion. let's hope it is better than the facebookpo. we left out tumbler which has hundreds of millions. is to gra. you get the point. later in the show, our legal panel debates whether unpaid interns are protected under the law when it ces to sexua harassment. next, we answer the question how do you do that? we will tell you the best ways to get along with church at work. even if you guys seem to have nothing in common. ♪
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dennis: are difficult co-workers making a tiny office harder than it should be?
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♪ dennis: class in with your co-workers. we have all had to go through it. working with jerks that can turn your job into a personal hell. and always easy toeal with cens can be quite an uncomftable situation. here it with expes device on how to handle it, and our best communications expert. thank you for being with us. coming communication errors that lead to jerky confrontation. lack of specificity in what you say, lack of respect for rebuttal lack of focus undesirable behaviors and lk
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mmediacy. as second chart, a lot of what happens is is better communicion is needed. >> a lotf misunderstandings, misperceptions. the first one at the top is lack of specificity. and the easiest way to describe this is the phrase as soon as possle. what does that mean? dennis: almost nothing. >> it is one of the most common phrases and work places today. you say that to me and i think you mean, you know, next tuesday on my schedule. but you wanted by 7:00 tonight. dennis: something about postu. and this is your translaon for some people are just a jerk. lack of appropriate te and body language. sarcasm, raising your voice is somebody whenou're upset. dennis: can't get just the being in panic.
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dennis: are we being a little precious few bk the fact is pele going to let fact -- /. >> poor customer service. a final like you as co-worker in need you to get something for one of my customers and he will back, that impacts customer service. if i have a good attitude and i am in a better work environment is causes turnover. and going to turn over and get of there. dennis: rust. >> trust is the foundation of everything. - final trustee of my best interests at heart are you will follow toughn last year due, not a contest to d anything. dennis: how imptant is the art of apology in dealing with co-workers? >> it isuge, with the apology has to be sincere and we have to believe in it. if we don't address taiwan lieve the apology rather. dennis: the solutions to thi co-worker conflict. >> we have to teach people how
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to communicate to influence in a positive way. how to confront isss directly, probably, but also respectfully. dennis: just be not so much of a a rding to a point society because i work with younger co-workers. this will do with an all. suddenly they are so does respected feing lik oh, my gosh. i'm just trying to get the best work. are people too sensitive? >> yes. there is balanced there is pendulum that we have to walk. absolutely, people can be sensitive ellis self-esteem and our society which is an epidemic. and so -- dennis: close of this team? was a it is the opposite. a bunch of people who are way too arrogant to have never received anything. >> that is all interrelated. @%u're absolutely right. dennis: that is amassed they put on. >> just likeullying. bullying is -- dennis: based on insecurity.
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aubrey this is driven by insecurity. i fear failure and work a lot harder. wherehe balances. some of us put itoward good use and bowser behavior. others use negative ways to get it. dennis: overall apoloes are important. be nicer, watch your town, once theody languag >> and be more specifiand as for what you want. ddnnis: i like this idea. that was my new year's resolution. i will start asking more people for what i want. so far they keep saying no. thank you for being with us tonight. coming up, and mrning for all of you bond investors. and a unpaid intern sues the company that e volunteered for claiming sexual harassment, but is it legal? our panel of experts wil
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♪ dennis: smartool -- here yes, gerri wilillis. dennis: is working for company free of charge in the mini your employer has the right to harass
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you? the controversial ruling madby a federal judge in nework last week is spaaking some outraged. judge ruled that unpaid interns and a protected. the human rights law. they cannot sue there employers again sexually aroused. should an unpaid intern is protected. joining us with our legal panel, an employmentawyer. and a fox news legal analyst. you know, a time we ce up with a intern and harass and sexy wind up thinking about all bunch of things in recent american history. where do you guys fall on this? >> legally as reprehensible as mrs., horrible caswhere a woman w groped and promised a joand after she disappeared in the grand helhe lost the job so it was horrible. legally the judge got a right because she is not an employee. that can be changed to bar right now employees are not protected like that. >> i think theudge g it
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wrong. under wage and hour laws, there have been cases of interns you were providing a benefit to the employer and therefore should be paid. >> but was not being paid. >> but they were able to ultimaly be paid because there were benefiting the emploe. she was not going out and is making coffee and cocktails. she was doing real work. dennis: you would have gone about it in a differe way and saying she is a defect to hourly employee. >> that is correct. however, if y just want to have a law that says straight up in turn shld be paid that is a great dea. dennis: you will have a lot because a lot of people won't hire them. that is the beauty of unpaid interns. you bring them in and do not pay them. dennis: they don't have to worry about the same litation possibilitie the budget with full-time employees. >> that is exactly what the court is sayg. i tnk that is wrong from a
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moral standpoint. from a legal standpoint aware that the law iow, that is correct. >> first of all, she is still have an assaultnd battery civil suit. under criminal chargesgainst keating wrote. second of all, the employer, says he is high on the totem pole could turnhe employee with his actions and be involved in negligence supervision cases. [inaudibleonrsations] >> my point was that if you are high enough in the pecking order your actions could bind the ployer. >> told the employer liable. >> yes. right. and interestingly enough tissue or an employee and this happened a work the employer could have a defense which is that it should be dealt with by workers' compensation. she is not an emmlee she could have a case like that. >> so she might be betr off.
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>> and empy you. >> that's right. >> a worker that comes in every day. they don't count as an emploe. >> the most famous and turn. and there were unpaid. only the unpaid interns were there. she was the one that brought the pizza immolated night. >> that is all other story. as i said before, if you are doing coffee, bringing me coffee , helling babysit for the boss's daughter, that is not a benefit to the employer. dennis: a quick footnote question. this year and woman, a 42 or 23, she did go to the bs is the tower room. if this were a full-time employee of the company payroll, sexual harassment case, would it be a mitating factor that she had willinglyot to?
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>> you cannot blame. would be wrong. >> she was afraid that if she did not go. >> it came down to quit pro quo. you come to the tell, dohat i wanted to do the family get this job. she said no. does not her fault. >> soon after she did not get the job? >> exactly right. she sued after she did not get the job. she was promised a job and did not get it. dennis: if she had done the job she might not have sued. >> if she got the job surely would not have sued because you'd be happy she had the job. dennis: of five suing for asman and got the job doesn't that mean if i want to take the job must not think the hassment is that bad? >> you can look at it that way.@ that part of the case, she was not hired because she complained about it. >> the point is if he hadaken
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the job she would not be suing harassment >> you can still sue your employer. ppens every daof the week. someone is there, and happy, denied a promotion, denied a good posion and soup. >> it would not have happened if she got the job. dennis: there is something -- i know. we are just going to leave it right there. thank you for being with us. a wonderful job matching t drs to the eyes. professional consulting. >> my time. >> all rht. thanks aot. when we come back a look a how you can pose some the online and have disappeared. and wi big-name companies dropping i treasury, is this a sign of where the bond market is headed? will we looking out for you and your gerriwillis.com next. ♪
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♪ dennis: this function is alive and ll in washington d.c. tonight. you need tt. no one hasome up wiih the deal to reon the federal government , hammer out a sensible spending plan are deal with the debt. the only thing they seem t agree on is to keep on talking. meanwhile the rest of us in the ole economy waseld htage by the situation. when will al of this come and ha an impact on your money? president and fouer of into a portfolio strateeies and author of the buck he correctly forecast the real estate collapse in 2006. how does it relate? >> your living in the twilight @%ne. they do not raise the debt ceiling in washington d.c. and we have a balance was a minute
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however, if we raise the debt ceilinin extending credit card limit that is the correct thing to do and fiscally irresponsible. i have no idea what is going on. dennis: what is the right approa? split that they before u >> the right approach is to keep the amount of the deficit growth under the increase in nominal gdp. we will somehow someday be able to bail out the debt. dennis: rewind that. the way to do it is? >> if that percentage issgrowing and less quick ratehan the increase in nominal gdp, that
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debt as a percentage of gdp would be falling. the best thing we can possibly the biggest the already have 17 trillion in debt and consistently pass the entitlement program. now we have a premiumupport for 20 million individuals who cannot afford health insurance. i wonder where the money will come for tse people. over two and half trillion. when we going tooplacate our creditors and let them know that the united tates government will never defaults. the only way that we caa dohat is to brg down our deficits.
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i took office.c in half since >> the deficit in 2007 was under and 60 billion. because it went to one-half trillion. at a single year. >> i am not blaming the obama. dennis: i am. >> i am blaming w-2. obamacare into a recession and depression. it is not always fall. you cnot sit there and say happy days are here again. look at us. we are fiscal conservatives. the deficit is $750 billion. dennis: are happy about it. >> a un have to worry about anything. the deficit is up tremendously from my was. dennis: did not read a recent headline coming 8% of gernment spending is on automatic pilot.
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we let people being categorized as unabomber's. weave too something abo entitlement programs. we don'teed to add to entitlement programs. we nd to fix the ones you already have. you need to spend less i'm social security, but now we're supposed to believe that this gridlock in d.c. is going to lead to a grand bargain. am i supposed to believe the democratare going to dismantle social security inll of these retirement programs? , supposed to belve they will increases on wealthy?ax it is not going to happen. the best thing is a small deal
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with it will save face. they reduce the tax we cannot go home and celebrate the fact that we are careeni toward insolvency dennis: until the n we have to wrap. just checking. when you said that the tea party is america's answer our home. you were not being sarcastic or ironic. you mean that. >> i love the tea party. as i've country's best hope. >> they want to balance the dget, strengthen the currency. now you are treat, these people i know, like i said. dennis they have been characterized as such almost by our own president. one last note, one reason that
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we have not yet had a crisis, every year we have been paying about360 million in interest costs. basically identical to what it was ten years ago when the debt was malt t the far smaller. thank you. we have to go. thank you appreciate your time. >> thank you. dennis: that was a lot of time. you t plenty. >> l go another segment. dennis: take care. still to come, we will look into the newest trend in social media. the tempura web, when information disappears after only secon.
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dennis: coming up in a social media is here totay, but do your messages have to
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♪ dennis: on the internet the rule of thumb is that nothing ever disappears. but new apications are trying to do just that marries the messages, photos and seconds, and a hot trend in social media. with more on this, a principal in u.s. advisory innovation leader with the w.c. price waterhouse coopers. maybe that is what they are fuing as. thank you for joining us tonight. a nice new aircraft. usuay when i see this guy he is absent minded professor it nes a haircut. explain this, the tempoporal we. >> the idea that pple don't always want everything out there for the rest of their lives.
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when the internet for started out the deal was eryone to haveverything woull be added together. after that hpened people stard toealize there were some thingthey would like take off. on the dimension of privacy out time the control which is where we are starting to see it happen. dennis: w through a few examples. you have a sw. snap chat let you send photos with a catch. >> absolutely. founding with the idea that you could take a picture of video and send it to a friend and again last anywhere from one to ten seconds and it is gone. not about being upon the web f ever, but viewed by an individual and thenot there anymore. dennis: this message will self-destruct. >> exactly the thing is that a lot of people say that this generation does not care about privacy. they do. they're dimension of privacy is different. they want to get temporary in the new world which he goes
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privacy in control because privacy. dennis: interesting. the problem, let's see sign up for a phone number that you use for a day, an hour, we, and then you burn eight and eliminated. this guy was saying to me that basically one thing is that people want to have authentic of versace's with each other, free expression. the second thing he says is that ththe more mobile we get, the me advertising marketers come after you and try to gets to you the molly actually seek protection in inflation away from it. >> i could not agree more. u jeopardy for people to be able to control the environment. you think about what will get measured and managed. you take a look isssomething like the self driving a car. an unbelievable amount of informational, whethert's coming from the bill will orality oresla. we will see more and more measurement. i totally agree. hisroduct is a very interesting product. let's say you happen to have an advertisement out there, aate
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site. the idea of being le to control and that it be tempary. that is the new privacy. >> anonymity. the weekend to you. >> good to talk to you. dennis: short and sweet but intelligence. that guy is quite brilliant. we will be right back with the answer to our question of the day. is theovernment ought to is theovernment ought to destroy j.p.
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oh! blue! i touched the ball before it went out, coach. come on,n, alex, the ref did nt call that! it's t championship game! i touched, it's their ball. don't foul them when they inbound. team! alex! good call.
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the $19 billion, jpmorgan has a rare loss in the third quarter. is the government out to destroy the big banks. we azlan gerriwillis.com. that is evertonight"wiis
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report" he a reat weekend. we will s later. ♪ ♪ ♪ ♪ neil: all rght, welcome. clock that is not taken. not quite the ticking timebomb at is so bad. welce, i trusting in for neil cavuto. things are getting even weirder. the administration is trying to make the stdown sound ev scarier. and barack obama tweeting today that this is important. putting the safety of our food at risk due to the government

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