the willis report is next. gerri: hello. i am jerry lewis -- i in gerri willis. beginning today in the middle of the government shut down the changes our due to obamacare. how long can social security payments be held hostage by the stalemate? the next batch will go out in a few days. will they? a computer glitch shows hiatus 80 as they raced to get the application in on time. we are on the case with "the willis report." gerri: our top story.

that you need to bill about open enrollment starts with medicare seniors. is for next week's plans but they better start looking at the fine print to right away. premiums will skyrocket and questions remain if pavements are made on entitlement programs as the different flirts withh3 default. one credit rating has been put on watch for a possible downgrade because of the political deadlock did washington. former policy advisor dr. scott, welcome back to the show. this news under to the market and the stock market was already trading low but people say if they don't

make the entitlement payment we're talking about medicare tonight to what phil was not mailed? >> the president issued a veto threat 20 minutes ago the towing the of bill that would include a provision that you cannot subsidize the obamacare plant that the house and members should not be treated differently so with that is included in the house bill the president said he will veto. gerri: talking about the deadline. there is a $12 billion social security payments and later on the 30th there is a medicaid payment. of this stuff roles on and to talk about what is going on right now, i think it is influenced by it obamacare but not an a good way. they will have a premium increase likely aarp and

others have other cost. what is going on? >> the drug plans those are going up on a medical plan their premiums and not goingg3 up on average brett they see their benefits cut the day were paid in for is that translated for plans with a very narrow selection of doctors united healthcare fired more than a thousand but they say basically to allow far too many to choose from. >> you do say that is medicare was a lot of spending diverted for obamacare. what will the seniors steve first? eric s. 700 billion, when her you 50 billion comes out

of medicare advantage they will see a reduction of benefits first. the good news is that is less than medicare proper so we do still see growth of medicare advantage that the first when it passed we said growth would decline but it has increased while it is to day graded it is that a less quick pace than general medicare. gerri: they are hugely popular because i hear from my followers of the time how much they like medicare is a big hitch because it does bring in the private-sector with competition in people pick the plan they want to but i wish obamacare would work as well. but he said with the system trying to hide information but why? >> they create the problems for themselves and six months ago they were not

prepared but they've put not allow people to look at the plan and shop until they registered a gave central information. they did not want people to see the prices without the subsidies applied that because they are operative people saw how much they cost in did not know the subsidy favor would never come back. so a created a lot of problems. we let consumers see the price of the health plan without knowing what the subsidy would be. gerri: something else driving me crazy, hhss spending 1.5 million on a television set to upgrade for the cinematic clock. how crazy is this?

review put together how much they spend it is hundreds of millions we have a lot of public-relations money about six months ago. 1.5 million is the tip of the iceberg. gerri: shimkus kathleen sebelius go? >> for those that believe in the action of government david b. of monday morning quarterback who really messed up and she was the quarterback steve rego is good to see you. come back of. we're still reaching with the nation's ballooning debt house republican as looking for a you plan so hall frustrated and you? i to the consent -- the microphone outside spinnaker

you concerned we could see in taliban it's not paid? >> yes. >> pour people will not get their money like social security come and medicaid, and employment, you name it. >> would it affect your family? >> yes. i have people on medicaid and on social security. >> no. i do not think so senate would do you think of the shutdown? but we make to intense marvin levy and ww spent. >> are you worried that with 58 million people to cancel security benefits mayor rick somebody negative their

check? >> if there honorifics in tom and then held up sncc poillon think i am not seeing is the g.o.p. is using this to hold the country hostage because they can i get over the fact yes a figure tessituras large portion of the country. >> since that rely other checks. right now real danger they will not go out on time. we have chairman of the 60 plus association sometimes referred to as the conservative aarp's. i have to ask you, do you think people should be worried if the possibility? shouldn't they get their

money? >> quite frankly on top of obamacare it is bad news for seniors pending hostage of the checks. but quite i do have to defer but the buck stops where the president of the united states than he is rated and sells a security and in medicare he issued prudently -- publicly ewe no. they could not agreed for a lunchtime and now they want to pay the debt? now we will get downgradedd3 again putting us on the negative three teams watch. border your members telling you about your concerned about security payments? >> seniors are the only one

who read the obamacare bill that was shut down their throats. they are not happy with that and they're voting an increasing numbers. we are bipartisan and we kids of all boards to democrats and republicans but in this case the democrats have taken the senior vote for granted then they take $700 billion out of medicare and then they say everything will go along as usual. seniors were upset there is a medical device tax advantage things out there that is wrong with this piece of legislation and a guest of obama in 2018 and larger numbers 2012. pro mccain and/or pro

romney because of obamacare 180. >> i will talk to seniors and how it might impact

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of middle income americans turn to match but the next guest has the power for around irish you said i could take one of my million-dollar clients to position them so they would give these subsidies under obamacare. give me an example. >> it sells preposterous but in order to qualify for the credits it is the income test not net worth so. very simple you have a client that has $2 million of the i.r.a. and 3 billion of the non irate. there 60 years old they don't take distributions come and go in and come. $1 billion of cash with very little interest very little and come. gerri: there are not be enough. >> and then look tttally gaffer said this is

40 percent they have not social security so what happens? $40,000 income back you are within the 400 percent of property so you qualify for premium credits and if you are under 250% that he will get the hose to pay for the co-payments encyclical is this his said hacking a alves some where it is a address have tax returns you go dylan tune of '04 house tusis dss end see how many assets they have? absolutely not. gerri: it is poorly designed to never talk to an attorney

or the accountant and it did not work. >> people who are 60 years old i have plenty of clients that could have retired some were let go but they have the stock options you can manage the portfolio so that they qualify for the subsidies which is great because they are not medicare eligible any way. gerri: maybe they do need to i am just flabbergasted the system could be used this way but this is what happens vote government program is used and abused in why they make noosense. >> of the taxpayers actually put out for the credits and hughes our larger? the medical cost is almost three times as much and it is limited to how much could be applied to the insurance premium.

>> i want to do one quickie mail because we have to get in one. from california. >> what is the income use of obamacare? pretax or after-tax toward diviiend rental income? >> the word is modified adjusted gross income is the adjusted gross, line 37 then you need to add back to the tax-free interest and any social security not taxable from income. that is the a modified adjusted didn't come. gerri: it sounds easy but there are so many details. come back we have more questions. later how yesterday's vanished but how did you do that? turning things in to what

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gerri: when you were little blood did you want to be reviewed grove? by your hobbies don't have to be that. you can turn your pastime into a job with the tough economy. we have the coach i cannot

get you to say the name. [laughter] what is something people looking at is cut to make the hobby into a money-making venture? >> you have to do your homework to have a great idea and love for you do but there are a lot of things that aside whether or not to buy an old business. gerri: you do have youu own experience. >> i love to cook and so i opened a baked foods business and i started to hate my hobby cyclos did quick. gerri: what did you make of that? >> i loved the experience and they don't believe in mistakes i got a lot of it and i learned and i tell my clients just picture would it is like to do that day in and day out so what kinds of

hobbies are good careers? >> the ones that fulfill and generate income. gerri: that is what we like best of the nep -- specifically? >> find that your hobby who has a business without a hobby because then somebody is providing a good or service for you but then figure out what is missing from the industry or how you can provide what somebody else is providing. gerri: what is the first up? >> do your research. what things you need to be thinking about will people buy your service or your good? is this in the door a want?

is it is indeed you could make money if it is they want consider that. gerri: a lot of people are very successful because silicon industry to fill plug is missing. that is a good strategy. >> that is the best way to make money with your hobby. gerri: i like that. my hobby is calls. not anytime soon. the bipartisan standoff one step four word or two steps back we will have a live report how this impacts your many. -- money. ♪ me what it's like

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gerri: to say tensions are rising on capitol hill again today would be under playing it. going down to the wire with just two days left to reach a deal to reach a borrowing limit. rich edson live from dc. >> reporter: republicans put two plans out today, they have been unable to get support to pass either with just republican member, democrats have not liked what the republicans have tried to put on the fllor, house republican leadership is meeting soon to try to figure out their next steps, it can be coming clearer they do not have votes to increase debt ceiling without help from democrats. so, they are still trying to find a way to pass something out of the house, that raises the debt ceiling, reopens portions of government that are closed. and still keep their more conservative members onboard, or enough of them to get this out of the house, they have been trying all day to do it, they have been unable to do so.

>> a lot of questions about whether republicans in house have really you know. they are being forced to back peddle a lot. >> we are at last minute. they put a grab back of issues out there a few weeks -- ago with large republicans of list of republicans proposal. they can pass out of the hus. >> big question is the deadline

the deadline, there is a lot of debate on both sides, what are you hearing? >> sure. i know there are be in of republicans who believe that not only is thursday the 17th not necessarily the deadline, congressional budget offers come out with a different date as well as bipartisan policy center put it, some days beyond october 17 deadline. so, some of home don't believe treasury department. even one of payments. because we have not raise the debt ceiling. and you miss one bill that be raise our borrowing costs. and define a default.

they are finding it is difficult to do that. if the house could pass a bill tonight, it would contain what is known as message that would go to senate and shave days off procedure it bow would take sene to bridge it back to the house, that is why they want to pass something now. gerri: all right deadline looming, million americaas hoping they don't reach that deadline. >> thank you. gerri: now we want to know what you think, hire is our question, you are sick of shut down, log on to gerriwillis.com, i'll show you results at the end of the show, market hit again today by stalemate in washington. and tonight, credit rating agency fitch put u.s.'s triple a

credit rating on what they call, rating watch negative. it means it is under review forever a possible downgrade, doing it for what they call, a political brinkmanship going on in washington d.c., rick. this move by fitch, how meaningful is this? what could this mean for us? >> it is not meaningful. s&p downgraded the united states a couple of summers ago, you could argue with fitch, what took you so long? no one will be surprised. gerri: could it increase our cost the debt long-term? >> well, when s&p downgraded us ittdid not cause an increase in interest rates. there is no particular reasons to think this firm's act will either, fitch ison observer in the mark the place like the rest of us. >> well, it is an ultimate nail,

reason that rates did not go up last time there was a international in the economies of the world, everyone want to treasuries, question is, would they do it gain, i want to drill down on this with me, because, we're learning from a new survey from by international council of shopping centees, that 40% of consumers say i'm going to spend list, and i'm going to spend less because of the government shut down. >> i think that is a reasonable reaction by consumers it reflects that congress is oblivious to fact they are having a real impact on ordinary americans, nationwide. this is not a economic crisis, unlike 2008 that was scary because it was a real financial crisis, it one is a political crisis, not a think if one. gerri: we made it up ourselves. >> everyone knows it is a question of whether we have political will to spend it. gerri: everyone is thinking

about what happens if we don't get these social security payments in the mail, what is your betting on what happens next? and what should i do with my money right now. >> well, if you are affected by the shut down, you are a federal, furloughed employee or a vendor or contractor to the government, you sell your products or services to federal employees who are furloughed, 47 drfrom the taxicab driver to the dry cleaner. you need to -- now is the time to hunker down, minimize unnecessary spending reflecting the survey of what consumers said in the shopping center survey. if you are a investor, and you have 10 or 20 years before your kid guess to college or you retire, you can ignore this known sense it will belong over.

nonsense, it will be over, everyone, and will forget about it, as soon as crisis is behind us, which could be hours, days or weeks or who knows, do not change your strategy because of that nonsense in washington. gerri: a guy in the street told me they are bozos in washington, thank you. >> yeah. thank you,. gerri: who has their hand on $17 trillion in debt, entities that hole the most of it -- hold the most of it japan, as of 2012, they own $1.1 trillions in debt. number 4, savings bondholders, that include individuals, brokers, bank trusts. estates, more than a trillion. number 3 is china. they are often referred as number one holder but as of last june 1.2 trillion, fed is bigger, may. fed system bank 1.7 trillion of

our debt, and than number is growing, and number one holder of our debt, social security trust fund, we owe this once untouchable fund $3 thrill con. no wonder the system is going bust. maybe we should be paying more attention to what we owe our nation's seniors. that is what i think when we come back, early admissions deadline for colleges is coming up, but if you try to apply on-line, you may be out of luck, and next, the government shut down is not just impacting dc, your upcoming travel, plans may be in jeopardy, details after the break. when we made our commitment to thgulf, bp h two big goals:

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gerri: with government shut down many are wondering how travel plans might be affects, joining us the ceo of farecompare.com, i have to tell you, you do not know what is going to get hit in this government shut dow down, e we seeing flights and airline hurt? >> not yet, we compare last two weeks of flights cancellation and delays compared to previous tww, basic loose the same but for a couple mother nature days out there no issues yet. but it could happen. you know if i'm not being paid, which all these workers, tsa, and faa, you know customs and border protect, i.c.e., not being paid, if they get sick, and then certain airports it is an issue. this could cascade down, i would not expect it, it happen unless this rolls out another couple

weeks. gerri: you bring up a good point. which is when you are in an airport right now, with government shut down, i guess you have to be on pins and needles around the tsa folks, they are there not being paid, and not too happy. >> they are not too happy, and probably, you want to -- you know, just a one time you could actually befriends with them, they will will be grumpy, i hhve been flying quite a bit this month, we have been chatting with them, they seem to be in good spirits. but you know, once that first paycheck does not come, at the two week period, and if that does not happen in a little bit it will change a lot. and you know, we already saw this issue with sequester earlier, senators and congress people were delayed they solved it let's get it sorted out. gerri: other thing are passports, what do i need to know if i am applying for a passport, or mine second

powered -- is expired. >> passport office is open, it is funded separately, the cost of your passport funds program, you can get a passport, there are slight delays depending on where you get it at, if you have to renew your passport, you have to do if you fly to asia for example could make sure it is within 6 months or out, if you get a new passport it may be delayed a week, you have to pay additional fee to get it exy it indicted. gerri: parks and destination, closures, statue of liberty reopen, and grand canyon open, but it is because the states cannot miss out, they are ponying up a lot of dough. >> no doubt, it is like what we see in ski destinations, actual chamber of commerce will subsidize flights into skiing destination in the winner time to get more travellers to buy

goods and service. the samm is happening with the states, they need those people to come, at this slower time in october and over in. gerri: i saw the folks at grand canyon, they were up in arms, they wanted that opened up, that is how they make their money, that is the business issue nature is the business. >> that livelihood, yes. gerri: rick thhnk you. always good to see you, come back soon. >> you too, thank you, thank you. gerri: well, still to come, my two cents more, if your child is hoping do get his or her college application in early, they are having the same luck as those folks trying to sign up for obama care. that's right. with fidelity's options platform,

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>> panic there weekend, on-line college application site shut down causing kids to miss their deadlines, details coming up.

gerri: if you have a son or daughter, or you are trying to apply for college, listen up. glitches in the common application this last week caused main college hopefully to manic, on-line application, shut down yesterday. and this was early deadline looming. joining us now, independent college advisory nancy. what went wrong? >> well yesterday we had a funny glitch, i think over the weekend, things slowed down, as kids, a languag a long holiday a

lot of kids planned to do their college applications, two big deadlines today, georgia tech and university of north carolina chapel hill. so, a lot of kids began working on the weekend, the software began to slowdown, on saturday afternoon. and crawled to a halt sunday, then yesterday, morning, as some schools went into session and guidance counselors and teachers tried to load in recommendation the whole system stopped running. >> nancy, was this a case that it was overloaded? too many people at the same time? or is it broken. >> we think because there were so many people trying to log on. but today was to be a small deadline. the big deadlines are november 1, and then january 1st. first of the year. this was a first test for the common application, a new set of

software introduced in august this year. this was their first go round with a major set of deadlines. gerri: so, how it is supposed to work? >> it has in the past worked very well. it is supposed to help student applicants save time and effort. it helps recommender dids, guidance counselors and teachers load information into a system, then send that information out to various colleges that are members of the common application. gerri: you know, it is funny. i think we used papyrus or something. there are no paper applications any more. what do you tell the kids and parents who meeting worried that their application did not go %-what should they do? >> there are a couple things. if you paid by credit card, and you have not signed your

application get back in and sign it. it is not submitted until signed. but, the main thing that i really, i think we should not be panicking. one of he things that have you understand is that the colleges know what is going on. and by midday yesterday, both georgia tech and university of north carolina chapel hill, had moved their deadlines, they said, okay october 15 is not going to work. we'll move up to october 21, i expect if we have further problem with common application that colleges will continue to be lean yeient and supportive, n the meantime you have to be patient, if it is slow, be patient. gerri: i think we heard that from the president about obamacare. the obamacare exchange. but you know -- >> clearly,. geeri: students have to make sure they are crossing every t and dotting every i.

nancy thank you for coming on, great stuff, you explained it clear as a bell thank you. >> thank you. gerri: wow. door student -- poor students, we'll be right back with my two cents more. and are you sick of the shut down? our question of the day. weekdays are for ring to the challenge.

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i think people are tired of the shut down, house republican leaders say introducing a new plan. are you sick of the drama and shut down? here is what you are posting. andrea said now, shut down is a sign that people are serious about fixing our spending problem. julia writes, i am tired but we need to stand firm. we asked on gerriwillis.com, 45% said yes, 55% said no. log on for our on-line question every weekday. >> here is some of your e-mails. kevin from ohio, a government shut down is a good thing. chicken little complain how baddy is qwester would be but -- the sequester would be but it worked for the most part.

and betsy from new york, i am truly disappointed to hear people say furloughing only a couple hit-and-ru hundred thouss is not a big deal. people matter, i just look at it differently. and thomas from california, i do not like the uncle sam, i do not like his healthcare scam, i do not like the dirty crooks or how they lie and cook the books, i do not like how congress steals or their secret deals, i do not like it nope, nope, nope. >> thomas you can write us every day, we will read what you send us. we love hearing you from. send me an e-mail at

gerriwillis.com. i spent time talking to people here in new york at crossroads of america. on sixth avenue, about what they make of the government shut down, you heard some earlier. nobody beat around the bush, everyone spoke with be on voice, they think in everybody in washington is, as one fell la from atlanta put it, a bunch of bozos, a pox on both your houses, flirting with not making social security payments to our nation's seniors and veterans. americans believe they gave folks on capitol hill and in the white house a job of running the government, so run it, find your grown up pants. government will face $120 billion debt payment thursday, and social security payment wednesday, i think that obamacare is a disaster, and

current crop of democrats have no financial discipline but the time to fix it, is not now, that is my two cents have a great night. night. night. night. lou: house speaker john boehner. putting the out of touch senate on notice by ending healthcare subsidies for congress, the white house and their staffs are risk hitting the debt ceiling thursday. i am lou dobbs. lou: good evening we're awaiting a vote in the house of representatives on a bill all that would reopen the federal government and raise the debt ceiling, house speaker john