tv The Willis Report FOX Business October 16, 2013 6:00pm-7:01pm EDT
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back. you will hear all about it right here. we will see you tomorrow. "the willis report" is coming up next. ♪ gerri: hello, everybody. i'm gerri willis. tonight on "the willis report" congress, the president, and the shutdown. how much damage of the already done to the economy? >> congress should think of the good of the country and not to get of their party. gerri: also, when the government is fully open for business' most people think the food is safe and thoroughly inspected. it is not. stay safe. prepare for any emergency with these must have applications for your phone. we're watching out for you tonight.
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gerri: our top story tonight to after 16 days, the shutdown may, may soon be over. the senate voting any time now on a bipartisan deal to reopen the government and allow the treasury to resume borrowing. the speaker of the house said that he will not try and block it when it comes up for a vote on this side of congress. rich edson is live from capitol hill with the very latest. i guess the big question is, are there enough votes in the house to pass this? >> well, sources are telling us gop aides say after they had a meeting in 3:00 of republican members that they do believe that there are enough votes and it seems likely this will eventually make it through the house. a bit of a road to go between where we are right now and that final passage if it does pass. the senate still has to pass it. we expect that to happen. if one senator stands up and object to this procedure this could really slow things down over the next few days. but we have heard from one
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suspect we thought it might be slowing this town, senator ted cruz said he will not try to slow this up. this could pass the senate in the next few hours, had over to the house where we expect house republicans and democrats will join together and have enough votes to pass this. as for house republicans, they're all lying on this impending victory is that they defended the spending cuts. the sequester cuts, automatic spending cuts are still part of this deal. they live to fight another day and say they will continue in the future to target obamacare. >> they have collided. we commend the demo will continue to fight. we're not going anywhere. we are going to go take this vote. and then reared going to go on for couple of days. rickenbacker early next week and we will continue to fight the good fight for the republican cause, the conservative cause, is right for the american people
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it. gerri: if everything goes right on this one, no senator objects, and we expect that is how it will go and come to the house, we could be looking at a time which will of the clock and midnight. then we could do it all again in the next few months. gerri: that is a very good point. i have to ask you, and looks like the republicans are saying we're not calling with our tail between our legs, but i have to say, they are deeply wounded, i would think. >> there are republicans to acknowledge said this was the wrong way to go about this. they were defeated c'mon down in the polls and this entire tax was a waste of time and energy and cause a whole lot in unnecessary of people. there's a bit of a split. whether or not this was a very good idea to do. but the whole defaults scenario that we were looking at right now seems to be avoided for now. gerri: for now. we will have our eyes peeled on
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my lawn. thank you for helping a sound. and joining us now, former new hampshire governor and senator. welcome to the show. great to have you here. and especially on a day like today. i would think that your 20 years in congress would speak well to what we have seen. was it necessary to go through these 16 days of the government shut down? >> no. unfortunately the two sides tough on the wrong foot. they got off on positions were nothing was going to happen because the positions that were taken were not viable. total repeal of obamacare is never going to happen in a hot -- in a divided government and the president took the position he was not going to negotiate. you cannot reach agreement under our system, it checks and balance system which requires you to go across the aisle to do big things unless you're willing to talk. and so we wasted about two and a half weeks on we should have been talking about serious stuff like how to get the deficit and debt under control with a lot of
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grandstanding. gerri: there was a lot of talk. most of it was in front of microphones and what people said was not nice. as i said, you're a 20-year veteran. he led the budget committee. what is going on behind closed doors? detention is this side, the stakes of as high. >> well, we have a fundamental confrontation in this country over how we're going to get our deficit and debt under control so that we not bankrupt our kids. the issue has come down to two issues. one is entitlement reform in the interest tax reform. a lot of major action has already been taken on the discretionary side, but these issues are big, complex issues that require everybody to sit in a room and try to work together in order to resolve them. you cannot shout from the sidelines. what happens here, a very small group of people took control of the microphone, as you said, and started shouting. there were folks who really wanted to govern stepping up and taking control and saying, listen, we will try to work.
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gerri: you have been very pointed. here is what you said. the sell promotional babble of the few has become the mainstream of republican political thought marginalizing the influence to an appalling degree. is that ted crews? >> well, yes. folks who don't go to a table to govern but stand on the sideline . the purposes of promoting an ideological business which is now a going to succeed and which actually undermines the basic philosophy of the republican party to reduce deficit and debt to changing the way we pay for things and controlling our expenditures. you cannot accomplish effective governance unless you are willing to reach across the aisle and reach agreements that allow you to govern. and by definition in our system if if you don't cover nothing gets done. gerri: to that point would allow the people of tea party said and conservatives is that obamacare
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was that, something that they never, not one conservative voted for it. they opposed it. opposed all the way and it felt like they had a right to put a stamp on it. >> they absolutely do, and there is no question there are large parts of obamacare that could have been adjusted had we been debating those parts instead of the entire bill. in a divided government you're not going to repeal the signature piece of legislation. he was able to pass it because he had 60 votes in the senate. i vote against it. at think almost every republican voted against it at the time, but it is a lot of the land. neville we have to do is work and adjusting it when we don't have control so that we improve it and make it more effective and also make it affordable. the big issue here, however, is the major entitlement programs. we're basically spending massive amounts of money that we don't have. gerri: we invented a new one, obamacare, another one that we cannot afford.
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speaking of money, you are essentially working for wall street, and i want to get to the issue of the shutdown of potential cost that could happen if that of the together tonight. people are optimistic among the we don't know. we have already seen costs. dislocation in the bond market, money market funds kamal crazy things. and also we have seen jumbo loans, home loans. that market interrupted. what ultimately have been mistakes? >> it has cost 200,000 in the short-term market because the rates were 9% higher on the 66 month treasury which translates into a $200 million. we also know that the overnight markets were in flocks and probably end up costing us more money. not a dramatic amount of money but will be significant. every dollar is an extra dollar that people have to pay in
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revenue. another dollar we will have to pay interest on. does not make a lot of sense to artificially create these expend. republicans like myself for strongly believe we should be bringing it -- reining in they're spending it increases our interest costs. gerri: if we did not pay social security payments that would be blamed on republicans. with the republican party have been blamed? >> it is being blamed either way. as a practical matter, if the jarheads the rocket, the rocket is the jar, is the jar the shephard -- suffers. we do not have the high ground.
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we don't control the megaphone. the president does. as a result you are seeing most of this blind on the republican party, this dysfunction. think the president has to take a fair amount of blame himself. everything that was inappropriate. gerri: he stayed away. he said committees your problem. i am not negotiating. >> he is supposed to lead us. had he been in a room i think you would have been able to gather responsible folks who would have been able to work toward some time -- what i call a many grand bargain where we actually make a major step along the lines. the best approach about a week and half ago as to how you could get the deficit and debt under control which is the core problem here. that is the disease. other issues of the political systems. gerri: we do nothing about it. >> i have to disagree with you. we have done about half of what we need to do, and it has been done on the discretionary side.
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$900 billion in discretionary spending restraint from the original budget accountability act. discretionary on this cluster. and then unfortunately there was the tax increase which is another 600 billion. we have got about halfway down the road to where we need to go. we have not taken on the big issues, big spending issues which are the entitlement issues of which obamacare is part of the problem, but it is not the whole problem. as a practical matter, you're not going to get this country in fiscal house in order until we address medicare, medicaid, social security. gerri: amen to that. congress is to put on its big board pin sensor thinking about the big issues. gerri: pretty close to accurate on that one. all right. we have more to come including ways to talk to your aging parents about money. next, hurricane season may be winding down, but old man winter is just getting started. how you can use your smart fought to get ahead of mother nature. waiting for the senate to vote
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on that bill to reopen the government and raise the debt limit. you are looking right there and our legislators. we are told the text of the bill has been finalized with the vote expected to happen any time. it will bring it to you as soon as it happens. stay with us. [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. months up on what
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gerri: going to keep our eye on the senate floor for the next hour. if they start to vote, we will let you know. first, a story that could have you losing your launch. the government budget battle has stopped the fda from doing routine food safety inspections and leaves lots of us to -- lots of us to think about food safety in reality half of the agency had problems pre shutdown. joining me now, the food safety director for the center for science in the public interest in the author of is our food safe. i have to ask you, is our food safe? >> well, we always wish that it was more safe. right now we are watching a major outbreak linked to foster farms chicken. and consumers really need to watch out. gerri: let's go over some of the details. i have to tell you, i have been reading up on this and i am shocked by what i am seeing. the government told foster farms to shut down some of its plants.
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no, we don't want to. how can operate away from that? >> what usda did is issued a number of enforcement notices saying that they had a reserve things in their inspection that are troubling. and then they said, the government said if you don't clean these up we're going to ask you to close down. usda then did not ask foster farms to close down, and even more troubling to us, they did not ask foster farms to recall any of this need. gerri: that is contrary to what i have heard. very interesting. a lot of people out there saying that they expected them to shut down, but regardless they have not. they are operating. will we know is, some 300 people in 70 states have been sick. now, to that point, is this variants concerning? >> absolutely. this salmonella, first of all,
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the outbreak involves seven strains. some of them are antibiotic resistant. that means that people who get sick with this salmonella are more likely to land in the hospital. and the infections are harder to treat than typical salmonella. so it is very important that consumers who think that they may have this product, this foster farms chicken in their homes, they may want to bring it back. now, it is only coming out -- gerri: bring it back, throw it out, get rid of it. that is certainly the advice. i have to ask you this question. it is not just domestic food. it is also food coming in from other countries, china in particular. recently the government said, it's okay if three or four plants in china bring in processed chicken into this country. i have to tell you, i think that is a bad idea.
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>> i think it is bizarre. we are actually shipping chicken over to china. it is being processed in china and then shipped back test. how can this possibly be sustainable, to say nothing of how the processing is done. i also want to bring your attention to the fact that a lot of our imported food is regulated by the food and drug ministration. right now because of the shutdown, they are not looking at that food at all. they are not at the borders. there are only doing limited checks. gerri: even if they were on the job command terms of the form inspections, i understand is only 2 percent of the goods that come in the country get inspected. i guess the it lies at the end of the day is if you're buying something that is not from this country you have to super careful about what you buy. what do you say? >> major out breaks linked to imported foods.
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we can't just say it is all in the imports because we have a lot of problems with food produced here. the bottom line is we need our food inspectors on the job. we need that. gerri: our food inspectors, when it comes to foster farms, there was a woman yesterday found a chicken head inside her whole foster farms chicken. i'm not sure the inspectors of the helpful. you throw a lot of money and it, but when you're only looking at 2 percent of the food that is coming in from outside the country, there is not enough money to inspect everything and it is really on consumers to be vigilant and to make sure that they're doing what they can to cook the meat the right way, pick up the products that are best for their family. >> it is always shocking to find something unexpected, like this woman did in her chicken, but it is not the things that you can see that are really going to argue. it is things like this
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antibiotic resistance salmonella that consumers really need to watch out for. gerri: we have to leave. thank you for helping us out. it is a fascinating story in a am sure we will be back to you. thank you. of course we are waiting for the senate to vote on the bill to reopen the government to raise the debt limit. that vote is expected to happen any time and will bring it to u.s. and as it does. stay with us. ♪
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were things to help you in a disaster situation to help you handle it better, there are apps for that here with all you need to know, lance, good to have you on. you notice one of those topics, you think, what is she talking about. and i started looking at the apps, they are amazing. i have a question. if there is a big problem, my phone is not going to be fired up. >> so your phone may have some power. there is a company that is trying, selling a hand crank to generate party power, if you keep on hand any of those power breaks, you should charge your phone separately, you coop a few charge -- keep a few charged up, they will have power for you. gerri: back ups. >> back up power is very important. otherwise you can't get to the great apps, in my opinion can be lifesavers. gerri: i downloaded your first
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one, free. i have to det tell -- tell you it is cool. >> it is crowd reporting, what is happening on the ground. we the big events, what are you seeing, and important pictures, floods and danger zones, and app tries to verify some of the information. and it makes is useful, as they are happening in real-time. gerri: it is reporting there is a river flooding in south dakota, you click through get more information. information is worldwide. if you were a big traveler, you will see a lot of details, people reporting on their own, i thought it was the groovy. >> location base is alert is good. gerri: that is the first thing they ask, do you mine if we know your location. this one cost you -- >> this is important, you don't
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always know what to do in a situation, i was taking cpr training, some have not, what if someone is choking or is bitten, you know these are problem that happen both locally. gerri: you should have information on right away. >> and it will tell you what to do, and you will be a hero, probably worth the $2 bucks you spend. gerri: talk about r reunite, you say you can get with lost family members. >> get your family on reunite, find events that are happening, the dangerous or disaster area, and look for people to there, people try to connect this bring people back together, a digital way of what happened when people put stuff on the wall or in penn station or whatever. gerri: so true. >> this is faster, this can work. gerri: it makes sense. the next one you have, you know
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we were travelling, my husband and i, in france this summer. my fear is we would have a car accident we were doing a lot of driving, what do you do if you have an emergency in another country? >> you get emergency! it tells you, where is the embassy, police, you don't dial the same number you are going to in europe or in london you are in trouble. it will help you connection with the right people, fire, police. gerri: proper authorities it puts you in ouch with them. the other one i like is american red cross shelter view. that may sound bad, but if it happens again that we have another one of these awful sandy storms, you might want to know where the show thars are. >> people in -- shelters are. >> people in colorado, they had those floods, they got pushed out of their homes, they needed to know where they could stay, this will tell you shelters, and
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locations in the area, how many people are there and you know the updates it is real-time information from the source you probably help you because, if it is getting dark you need to know, you don't want to hop in our car or on foot, and walk and hope. >> that makes a ton of sense, lance, appreciate that you have the best apps. >> my pleasure. gerri: >> coming up next, white house urging quick action by congress to deal end to the drama in dc, stop the shut down, shut down the shut down, we'll have a live report as we await a vote in the senate. stay with us. customer erin swenson ordered shoes from us online
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♪ nothing, that's what? that's why i take prilosec otc each morning for my frequent heartburn. 'cause it gives me a big fat zero heartburn. woo hoo! [ male announcer ] prilosec otc. the number one doctor recommended frequent heartburn medicine for 8 straight years. [ larry ] you can't beat zero heartburn. and best of all, it means i can enjoy all the foods i love. oh, zero heartburn is awesome. just like zero clery. ♪ [ male announcer ] prilosec otc. one pill each morning. 24 hours. zero heartburn. gerri: a plan to avoid a national default and reopen the government appears headed for approval in senate tonight, it includes back pay for furloughed federal workers, we bring in
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itch edson from wash -- rich edson from washington, what happens next. >> well, we waiting on it to hit the senate floor, because no senator it appears will raise their hand and object to a fast track procedure, they could get it out of u.s. senate in a couple hours, typically this could take days. it will likely pass. and head over to the house, house also has a fast track ability there, they can get this out probably later this evening, thought is between 11:00 p.m. and midnight. if all goes according to plan, it appears it is. you never know. >> well, rich, you know we have been watching this for days, and weeks, a question that i have, is the framework of the bill they are using, does it say anything about obamacare? have republicans been able to carve out anything with obamacare?
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>> only thing that this does in relation to president's obamacare is that it requires stronger income verification, if you are going to get subsidies from federal government to help you pay for healthcare under obamacare, this has a stronger set of rules that requires you to show you don't make the -- or you say you make the money you say to qualify. as for anything else, that is it. gerri: that is a start. so you believe this could wrap up around midnight? we could wake up in the morning and federal government might be reopened? right? >> it could take a little bit of time, it takes time to shut down the government, and will take time to reopen. we should beginning, the process of reopening the government, fully could take a couple days, appropriations flowing back, and essential, non-essential workers can go back to working back at
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work tomorrow or next couple days. gerri: what about that back pay? >> back pay is part of this. what this turns into, paid vacation for non-essential workers. they in some cases have missed pay check, some were concerned they would not get paid. this now has a provision that requires federal government to pay the workers for the time they missed. gerri: unbelievable, the beat goes on. rich thank you, i know you will be up late. all right back and forth in washington causing volatility, uncertainty in bond markets, these fears should be put to rest, but some say, haven't though congress has reached a deal, the better political fight will have a lasting effect on u.s. creditworthiness, joining us, peter crane, ask yourself, even if best case scenario, we
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have this thing over tonight. will the reputation of the federal government be damaged? >> it can't help. you know in the kingdom of the blind, the one-eyed man it king. bond investors and money market investors have little other alternatives, u.s. debt should remain popular. gerri: we can only hope, fitch said that week they were puttingous watch for a downgrade, here is what they said, pro lodged negotiation over raising debt ceiling risks undermining confidence in the role of u.s. dollar as a preimminent global reserve currency by casting doubt over the full faith and credit of the u.s. is it possible that we might lose that status? >> it is possible. but not any time soon. everything is based off of u.s.
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credit rating, if the u.s. is downgraded to double a, it all gets downgraded a notch as well, it is still the currency of the world. gerri: i like what you are saying. when we talked this morning it was not search a deal would get done, you said not fixing the shut down is a big problem and risky and dangerous. what would happen if we continued the shut down, and did not pay our bills? >> yeah, i mean the real risk of a ricochet or manage that people had not you that the of, a technical default on the death, money market mutual funds backing away from anything coming due in next several weeks, real risk is something we had not thought yo of, repurchae -- and so, it really lake, in 2008, was a risk of the unknown that
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was the real threat. gerri: you know, fidelity moving out of some's,t-bills this week. which is when you cover and write about. that has to become a big shock to people like you. that is a big move, a big commitment. do you think there is anything about what we've been through that might change the way that the industry works? >> certainly, the lesson of diversification is always relevant, people who thought they're were in safe of of investment can keep in mind there is risk everywhere. being spread out, has some merits. a lot of the stories were overblown, mutual funds have choice to reinvest of day. it is not as much selling as it
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is buying elsewhere, that is what a lots of investors started doing. >> you know, i remember back during the meltdown, the great recession the way it started, some of it was in europe year, money markets, how it today different? >> money funds had regulatory change in 2009-2010 they had to hold more by quite in jail, ratings agencies got criticized, they of on gored, and looking at their rating that people are buying, banks in general that issue a lot of paper that money funds might have to hold more liquidity.
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gerri: if i'm an individual investor, tonight, should i sleep soundly? or worry. will i get hurt in money market funds. >> you did sleep soundly -- you can sleep soundly, no matter where you go there will be risk, in this senseario with -- sense where treasury defaults you are safe where you are. gerri: thank you, peter. >> well you got to stay with us, we're keeping an eye on development in congress. first government shut down in 17 years about to end, a debt default avoided, stay with us for the details. get paid to do something you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker.
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gerri: a conversation most of us would like to avoid, even more so than birds and bees, it is the talk adult kids have to have with their aging parents, how to managef finances when they can no longer do so, sensitive topic, our next guest has need-to-know advice, joining us, jessica anderson. great to have you with us. >> thing you can do most best idea is to start talking young with your kids, talk to them every day finances and big purchases, wrap them into the conversation, later on then it not such a taboo subject. gerri: so many financial stressorors for seniors, some folks underwater on mortgages,
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some student loans debt, bankruptcy up for 75-year-olds, and older, it seems you have to understand what is going on. how many times do you think that younger generation gets surprised by what they hear from their parents. >> i think it happens a lot, a lot of thinking great, how much money am i getting? it is well, we might need your help. because, you know they are tough. gerri: wow. those numbers are astonishing. how do you do it? >> you know start them young, but when you are looking toward retirement and starting your planning and your kids are college ai operation infinite justice or old -- college age or older. gerri: i helped my father putting it together his will on his death bed, that is the last thing you want to do, you want
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have to have that conversation early. is there anything you need to put aside. >> the older you are, the more likely you will need to get into hard numbers, in the first conversation leave the numbers out. put it in framework of saying okay, we have saved forx numbers of years for retirement we have long-term care insurance to cover us in case we need that care. you know if we're able to help with your kids college, for example, this is how many years we think we can cover. gerri: one thing that i think is so difficult for family members, account, real detail.umbers on how did do you ask for them without coming off like something who hoping they have one foot in the grave. >> parents can do a great job, letting kids know they created a list, we have a list of our accounts all financial acounts
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whether money is going in or out or household bills, and a list of advisors, and you know, people that know "the game plan," and can help them, if something unexpected happens. and you know lastly, i think having a you know all your financial documents and your legal documents in one place so people can find it, find it easily. >> that is great advice, jessica thank you. appreciate it. >> thank you. gerri: important conversation. now we want to know what you think. our question, who is better at managing money? you or your parents? and we want to stay with us, we're keeping a close eye on the development in congress, senate discussing whether to stop the shut down of the government. that is the first government shut down in assistant years, about to end. a default could be avoided, stay
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40% of americans say, they are spending less right now because of the threat of the shut down. what about halloween sales, is it impacting them? >> it wi be a vycary llown, thi holay 1 scretinar youot urlohedike 80000 arica d, we're lkingut pplhat me inme5, a year. soou knowhe a notot arl,his is the heart of the economy, you would rather cutback on halloween than christmas. gerri: we're expecting a billion dollars in spending down from last year, 7 billion evechristmt get so huge? >huge? i remember when halloween was just about maybe you get an apple or canny corn. and -- candy corn, you wore you
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know, you made it yourself, but not the case any more people spend a ton of money. >> always that person that gives you akinking tooth brush too. like anything else, if is a marketing machine, holidays are created by retails to do just that, you have costume contests, and adult parties, it is thursday night, you may see a lot of revelers and college kids hitting the bars, hey, the one night a year you can take your shirt off, people have embraced that. gerri: i don't wait that are that one night, how about christmas, what do you think? >> well, i'm a permabear. after poor back-to-school sales, the holiday season will take a
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dip with a poor summer season, we did not sell back-to-school goods, and now we're trying to get rid of those in hopes for christmas, retailers are aging two sets of inventory, but for the countsume are they are slashing it for you, wait until the last minute. gerri: that is a very good insight. it may be a bad christmas season for retailer, but for consumers it should be fantastic with so much stuff on the shelf, christa thank you, always good to see you, now i understand what your halloween is bfascinating stuff, thank you. >> we'll be right back with my two cents more and answer to the question of the day, who is better at manages the money, you or your parents? when we made our commitment to the gulf, bp had two big goals:
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help the gulf recover 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-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger.
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gerri is shut down and shut down as we await a vote for the senate where a bipartisan deal is expected to pass. suspense will be in the house. where the bill is still likely to pass. for the rest of the people on main street, good news. even if you believe the government spends too much and obamacare is a disaster, you have to pay your obligations. without a deal come our social security system would be in deep doo doo and checks would likely not allow. 50 million americans were a fifth of the nation would be in dire economic straits. the stock market would stumble and fall and probably pretty dramatically. the bond market is already you reeling. one trader projected a stock market reaction of 500 points
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down on the dow and other 800 points on that. so much for your 401k. generations of savings or strangled. what no tea party republican considered, once you fall you don't go back. >> we live in a global economy. we should keep our record and reputation clean. that is my "two cents more". and tips on managing your parents money. a difficult feat for many adult children. but who is better at managing money? you or your parents? here's what some of your posting on our facebook page. it was a completely different time, john says, meaning it was easier for them than the now. and another viewer this my
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parents were great savers and the depression and world war ii cossack. we asked this question on gerriwillis.com and 57% said you are an 43% said parents are. be sure to log on for our online question every weekday. and finally tonight, some of your e-mails. i worked for the government for 25 years and i still say that it's too darn big. and deal from colorado agrees that our government is loaded with waste, including overlapping charters, empty buildings, idle equipment, far too much spying on u.s. citizens. the u.s. government should be cut immediately to 10% of its present site. that is up for tonight's "willis report." stay with fox business all night long as we continue our breaking coverage out of washington as the senate and then the house vote on reopening the government
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and avoiding a default on our debt. thank you for joining us and have a great night. we will see you tomorrow. >> the house of representatives has passed a bill funding the va. lou: the senate has struck a deal on government funding in the debt ceiling. the stock market rejoicing. government reopens tomorrow, the government will have the ability to keep borrowing money. the bond market also rejoices. i am lou dobbs. ♪ ♪ ♪ ♪ lou: good evening, everybody. republicans waved the white flag in the stock market soars. it appears that the government will be open tomorrow just in time for both the house and the senate to aj
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