can take a breath but it is not necessarily over. we will do it again. >> red bull and coffee you we will see you tomorrow.ob. gerri: hello. i am jerry lewi -- i in gerri llis. beginning today the middle of the government shut down e changes our due to obamacare. how lon can social security payments be held hostage by the stalemate? the next batch will go out in a few days. will they? a couter glitch shows hiatus 80 as they raced to get the application in on time. we are on th case with "the willis rept." gerri: our top story.

that you need to bill about open enrollment starts with medicare seniors. is f next week's plans but th better start loing at the fine print to right away. premiums will skyrocket and questionremain if pavements are made on entitlement programs a the different flirts withh3 default. one credit rating haseen put on watch for a possible downgrade because of the political deadlock did washington. former picy advisor dr. ott, welcome bac to the show. this news under to the mark 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 whatphil was not mailed? >>he president issued a veto threat 20 minutes ago the tong the of bill that would include a provisio that you cannot subsidize th obamacare plant that the house and members should not be treed dferently so with that is iluded in the house bill the president said he will veto. gerri: talking abouthe deadline. ere is a $12 billi social security payments and later on the 30th there is a medicaidayment. of this stuff roles on and to talk about what isoi on right nowi thinkit is influenced by it obamacare but not an a good way. they will have a premium increase like aarp and

others have other cost. what is going on? >> the drug plans thosare going up on medical pl theipremiumsnd not goingg3 up on average brett ty see their benefits cut the day were paid in for is that translated for plans with a very narrow selecon of doctors united healthcare fired more than a thousand but they sayasically to allow far too many to choe om. >> you do say that i medire was a lot of spendi diverted for obamacare. what will the seniors steve first? eric s.00 billion, when her you 50 billion comes out

of medicare advaage they will see a reduction of benefits first. the goo newsis that is less than medicare proper so we do still see growth of medica advantage that the first when it passed we said growowth would decline but it has increased while it is to day graded it ithat a less quicpace than genera dicare. 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 the private-sector with competition in people pick the plan they want to but i wish obamacare would wo as well. but he said with the system ying tohide information but why? >> they create the problems for themsees and six months ago they were not

prepared but they've put not allow ople t ok at the plan and shop until they registered a gave central information. they did not want pple to see the prices witho the subsidies applied that becae they are operative people saw h much they cost in d n know the subsidy favor would never come back. so a created a lot of problems. we let consumers see the price of the healtplan without knowing what the suidy 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 hundred of millions we have a lot of public-relations money abt six months a. 1.5 million is the tip of the iceberg. gei: shimkus kathleen sebelius go? >> for those that believe in the action of government david b. monday morning quarterback w really messed up and she was the quarterback steve rego is good to see you. come ba 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 talan it's not paid? >> yes. >> poureople will not get their money like social security come and medicaid, and employmentyou name it. >> would it affect your family? yes. i have people on medicaid and on social security. >> no. i do not tnk so senate would doou think of the shutdown? but we make to intense marvin levy and ww spent. >> are you worriedhat with 58 million people to cancel security benefits mayor rick somebodynegati their

check? >> if there honorifics in tom and then held up sncc poillon thk i am not seeing i the g.o.p. is using this to holold the country hostagbecause they can iet ovee fact yes a figure tessituras large portion of the country. >> since that ry other ecks. 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 ap's. i have to ask you, do you think people should be worried if thepossibility? shouldn't they get their

moy? >> qte 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 is rated and sells securi and in medicare he issued prudently -- publicly ewe no. they could no agreed for a lunchtime and now they want to y th debt? now we will t downgradedd3 again putting us on the negative three teams watch. border your members telling you about your concerned about curity payments? >> seniors are the only one

who read the obamacare bill that was shut down their throats. they a not happy with that and they're voting an increasing numbers. we are bipartisan and we kids of all boards to democrats and repuicans but in this case the democrats ve taken the senior vote for granted then they take $700 billioout of medicare and then they sayverything will 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 gut ofbama in 2018 and larger numbers 2012. pro mccain and/or pro

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

getting taxpayer support for benefits. benefits. coming up. when we made our commitmt toth:

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gerri: we're getng your questions and concerns we try to answer as many as possible. tonight we get to your tax questions but here this. the obamacare loophole most

of middle income americans turn to match b the next guest has the powe for aroundrish you said i could take o of my million-dollar clients to position tm so they would give these subsidies under obamace. give me an eample. >> it sells preposterou 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 billio of the non irate. there 60 years old they n't take distributions come and go in and come. $1 billion of cash with vy little interest very littl and come. gerri: there are not be engh. >> an then look tttally gaffer said this is

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

orhe accounta and it did not work. >> people who are 60 yrs 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 subsies which is great becae 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 abed in why they make noosense. >> of the taxpayers actually put outor theredits and hughes ourarger? the medical cost is almost three times as muchnd it is mited to how much could be applie to the insurance premium.

>> i want to do one qckie mail because we have to get in one. from california. >> what is the inme use o obamacare? pretax or after-tax towa diviiend rental income? >> the word is modified adst gross income is the adjusted gross, line 37 then you need to add back to the tax-free interest and any social security not taxab from income. that the a modied adjusted didn't come. gerri: itsounds easyut there are so many deils. come back we have more questis. later how yestery's vanished but how did you do that? turning things in to what

you love into what you do. we will answer theuestion. thank you orville and wilbur... .amelia... neil and buzz: for teaching us that you can't crte the future... by clinging to the past. and with that: you're history. instd of looking behind... delta is looking beyond. 80 thousand of us investing billions. in everything from t best experiences below... to the finest comforts above. we're t simply saluting history... we're making it.

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

get you to say the name. [laughter] what is something people looking at is cut to ma the hobby into a money-makienture? >> you have to do your homewo toave a great idea and love for you do but there are a lot of things that aside whether or not to buy old business. gerri: you do have youu own experience. >> iove to cook and so i opened a baked foods business a i startedo hate my hob cyclos did quick. gerri: what did you make of at? >> i lovedhe expererience and they don't believe in mistakes i got a lot of it and i lened 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: tt is what we like be of the nep -- specifically? >> find thayour hobby who has a business without a hobb 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 ishe first up? >> do your research. what things you need to be thinking about will people buy your service orour good? is this 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 isissing. 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 yo report how this impacts yo many.thocean gets warmer. the peruvian anchovy harvest suffers. it raithe price of fishmeal, cattle feed and beef.

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gerri: to say tensions are rising on capitol hill again today would underlaying 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 suppo to pass ther with just republican memb,emocrats hav not liked what the republicans he tried to put on the fll, house republican leadership is meeting soon to try to figure out their next steps, it can be coming clearer they do not haveotes to increase debt ceiling without help from democrats. so, they a still trying to find a way t pass something out of the house, that raises the debt ceiling, reopens portions of government tha 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 lotf questions about whetr republicans in house have really you know. they are being forced to back pedd a lot. >> we are at last minute. they put a grab bacack of issues out there a few weeks -- ago with large republicans of list of republins proposal. they can pass out of the hus. >> big question is the ddline

the deadline, there is a lot o debate on bot sides, wh are you hearing? >> sure. i know t 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 diffent date as well as bartisan policy center put it, some days beyond october 17 deadline. so, some of home don't bel 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 fdi it is dficult to do that. if the house could pass a bill tonight, it would contain what isknown as msage that would go to senate a shave days off procedure it bow would take sene to bridge it bk to the house, that is why ty want to pass something now. gerri: all right deadline looming, million americaas hoping they don't reach that deadline. >> thank you. gerri: now we wanto kn what you think, hire is our question, you are sick of shut down, log on to gerriwillis.com, i'll show you results at t end of the show,arketit again tay 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 i for what they call, a political brinknship going o in washington d.c., rick. this move by fitch, how meaningful is this? what could this mean for u >> it is n meaningful. s&p downgraded the united states a cple of summers ago, you could argue with fitch what took you soong? no o will be surprised. gerri: could it increase our costhe debtong-term? >> well, when s&p downgraded u 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 thet of us. >> well, it isn ultimat nail,

reason that rates did not go up last time there was a international in the ecoes of the world, everyone wan to treasues, 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 li, and i'm going to spend less because of the government shut down. >> i think that is a reanable reaction by consumers it reflects that congress is oblivious to fact they are having a rea impact on oinary americans, nationwide. th is not a economic crisis, unlike 2008 that w scary because it was a real financial crisis, it one is a political crisis, not a think if one. gerr we made it up ourselves. >> everyonenows it is a question of whether we have political will t spend it. gerri: everyones thiing

about what happens if we don't get theseocial security payments in the mail, what is yo 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 federal, furloughed employe or aendor or contractor to the government, youell your products or services to federal ployees 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, everne, and will forget about it,s 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 wasngton. gerri: a guy inhe stree told me they areozos 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 mt 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. thats whathink when we come back, early admissions adne for colleges is coming up, but if you try to apply on-line, you maye out of luck, and next, the government shut down is not just impacting dc, your upcoming travel,l, pla may be in jeopardy, details after the break. we went out and asked people a simple question:

how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have kwn someone who's led well into their 90s. and that's a greathing but even ough we're living longer, one thing that hasn't changed much is the officl retirement age. ♪ the questn is how do you make sure you have the money you need tonjoy all of these years. ♪ ♪ [ male announcer ] help brazil reduce its overall reliance on foreign imports with the launch of the country's largest petrochemical operation. ♪ when emersonakes up the challeng "it's never been done before" simply bemes consider it solved. emerson. ♪

gerri: with government shut down many are wondering how travel plans might be aects, 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 ds out there no issues yet. but it could happen. you know if i'm n not being pai, which all these workers, tsa, and faa, you know customs and border protect, i.c.e., not being paid, if ty get sick, d then certain airports it is an issue. this could cascade down, i wld not expect it, it hapn unless this rolls out another couple

weeks. gerri: you bring up a good pot. which is when you are in an airport right now,ith 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,nd probably, you want to -- you know, just a one time you could actually befends with them, they will will be grumpy, i hhve been flying quite a bit this month, we have been ctting with them, they seem to be in good spirits. but you know, once tt first paycheck does not come, at the two week period, and if tt does not happen in a little bit it will change a lot. and you know, we already saw is issue with sequester earlier, senatorsndongress people were delay they solved it let's get it sorte out. gerr other thing are passports, what do i need to know if i am applying for a passport, or mine second

powere-- is expired. >> passport office is open, it is funded separately, the cost ofour 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 i withinin 6 months or out, if you get a new passport it may be delayed a week, you have to pay additional fee t get it exy it incted. gerri: parks and destination, closures, statue of liberty reopen, and grand canyo open, but it is because the states caot miss out, they are ponying up a lot of dough. >> no doubt, it isike what we see in ski destinations, actual chamber of commerce will subsidize flights into skiing destination in the winner time to get mor 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 theolks at gnd 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 theusiness. >> 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 g his or her college application inarly, they are having the same lk as those folks trying to sign up for obama care. that's right. when we made our commitment to: help the gulf rever and learn from what happened so we could be a better, safer energy company.

i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-artmonitorins watch over all drilling activity twenty-four-seven. and we'reharing what we've learned, so we can all produce energy more safely. our commitment hasnever bee. and buzz: for teacng us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand ofs investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history. we're making it. >> panic there weekend, on-line college application site shu

gerri: if you have a son or daughter, or you are trying to apply for colge, listen u glitches in the common application thi las week caused main college hopefully to manic, on-line application, shut down yesrday. 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 swed down, as kids, a languag a long holiday a

lotf kids plaed 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 satday afternoon. and crawled to a halt sunday, then yesterday, morning, as some schools nt into session and guidance counselors a teachers tried to load in recommendatn the whole system stopped running. >> nancy, was this a caseha it wasverloaded? too many people at the same time? or is it broken. >> we think because there were many people trying to log on. but today was to be a small deadline. the big deadlines are november 1, and then januar 1st. first of the year. this was a first test for the common application a new set of

software introduced in august this yea thisas 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. helps recommender dids, guidance counselors and teachers load information into a system, then send that information out to various colleges that are mbers of the common application. gerri: you know, it is funny. something. use papyrus or there are no paper applications any more. what do you tell the kids a parents who meeting worried that their application did not go %-what should they do? there are a couple things. you paid by credit card, and yo have not signed your

application get back in and sign it. it is not submitt until signed. but, the mai thi that i really, i think we should not be panicking. onef he things that have you undetand 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 ln yeient and supportive, ino the meantime you have to be patient, ift is slow, be patient. gerri: i think we heard that from t president about obamacare. the obamacare exchange. but you know -- >> clearly,. geeri: students have to me sure they a crossing every t and dotting every i.

nancy thank you for coming on, great sff, you expined 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 queston of the day. customer erin swenson ordered shoes from us online but they didn't fit. customer's not happy, i'm not happy. sales go down, i'm not happy. merch comes ba, i'm not happy. use ups. they make retns easy. unhappy customer becomes happy customer. then, repeat customer. easy returns, i'm happy. repeat customers, i'm happy. sales go up, i'happy. i ordered anotr pair. i'm happy. (both) i'm happy. i'm happy. happy. happy. happy. happy. happy hay. i love logistics.

gerri: take a look this, house republicans meeting, talking about the budget impasse, 21 boxes of piz. delivered. to house republicans, we don't know who sent them, or wre they came from. here comes t guys with the pizz knock, knock, knock on the door with house republicans, delivery! no one sends me pizza. i don't know why. but, guessho answered door? you are about to find out, it ul ryan.

i think people are tired of the shut down, house republican leaders say iroducing a new plan. are you sick of the drama and shut down? here ishat you are posting. andrea said now, shut down i a sign that people are serious aboutixing 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 wkday. >> here is some of your e-mails. kevin from ohio, a government shut down is a good thing. chicn little complain how baddy is qwester would be but -- the sequester would be but it worked for the most part.

and betsyrom new york, i am truly disappointed to hear people say furloughing only a uple hit-a-ru hundred thousandos is not a big deal. people matter, i just look at it dierently. and thomas from california, i do not lik the uncle sam, i do not like his healthcare scam, i do not like the dirty crooks or how they lie and cook theooks, i do not like how cgress steals or their secret deals, i do n like it nope, nope, ne. >> 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 spt time talking to people he in new york at crossroads of ameri. on sixth avenue, about what they make of the government shut down, you heard some earlier. body beat aroun the bush, everyonepoke with be on voice, they think in everybody in washington is, as one fell la from atlanta put it, a bch of bozos, a pox on both your houses, flirtg wh not making social security payments to our nation's seniors and veterans. americanselie 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 thsday, and social security payment wednesday, i think that obamacare is a a disaster, and

current crop of democrats hav 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 onotice 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