tv The Willis Report FOX Business November 14, 2013 6:00pm-7:01pm EST
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73 percent say is the best place to find your mate. that is tomorrow at 5:00 p.m. you definitely don't want to miss that. in the meantime, "the willis report" is coming up next. ♪ gerri: hello, everybody. i'm gerri willis. tonight on "the willis report" president obama who throws the health care system into chaos offering a fixed to3 president obama who throws the health care system into chaos offering a fixed to the canceled plans that creates more confusion, not clarity. >> this fix will solve every problem for every person. gerri: also, the next head of the reserve chair in the hot seat. how long will janet yellen keep interest rates near record lows been wrote wahoo. >> i believe the benefits exceed the cost. gerri: and are you -- our users guide to shopping. we're watching out for you tonight on "the willis report." ♪
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gerrnot c welcome to "the willis report." your show, your money, your voice. and tonight your apology. the president today apologizing to the 5 million in have lost our health insurance coverage because of obamacare, his pr rram. not to worry because he will allow these policies to be extended one year. he said, it's on me, but what he means is committed on the insurance companies. insurers will have the option of extending policies. obama passing a hot potato of the failure of his signature of ndirlock onto insurance companies. how well they respond and can they respond in time to meet the so,nuary 1st deadline for coverage? will as the comed ony's trade group says, premiums rise as a result you joining me now editorial board member.
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changing the rules could destabilize the market and result in higher premiums for consumers. what do you say? >> everybody is throwing up their arms trying to figure what is g "tng on. the president came forward with a proposal finally this as we you have insurance we will allow you to keep it. there is a bill in the house that will allow that to my bill of a senate, but when i talked to insurers myself today and members of congress, more and more skepticism than any of this will work. the metaphor that has been used all day today, it's like trying to put toothed oste back into a ndibe. you just can't do it. gerri: exactly right. >> have you take 5 million people who have lost their insurance and then read form these contracts? in many cases the insurance
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companies may not want to sign these people up again. gerrnot c i think you make a grt point. i spend all afternoon on line ininousing on the telephone to insurard we brokers, industry analysts. i have to tell you, they say you cannot do this. a comed ony with maybe 5,000 employees like the one i work for spend 12 months getting their insurance pro ready to go. i talk to people today who said, there is no way that these insurard we commissioners for oe can approve new plants because that is what is g "tng to take. and for people to then apply for those plans and get them oreproved. listen to what laura peterson of the naic had to say. older and sicker policyholders will be more likely to drop existing policies in favor of a new dca obamacare compliant policies. under an healthier individuals are more likely to keep their existing policies. as a result the risk profile will be worse than what had been
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prior to the president's action which will result in higher premiums. so what you're d "tng here, i think, is turning obamacare into the hold sick people group of people. then what? mean, it makes no sense as an insurance market. >> there is no question. everything you said is absolutely true. the talk about the people of loss of insurance, we don't know a lot about them demographically , but the ones i have talked to say the p't dple gee poing jobs from plans intend to be this sicker people and the older people who have higher bills. the insurance companies say, we don't want to ensure you any more. of those p't dple go into the exchange's then you have a huge problem in terms of the cost. the othergrouof they can physically do this. can they refine all of this? remeof aer, jancompry 1es. people go naked. they don't have health
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insurard we. i bet you a dime to a dollar you mobile to fix this thing by so,3 cary 1es. gerrnot c i'm not g "tng to take other side of that because i think you're right. will we did, we tried to come up with our own time line. is it doable? here is what has to horepen in short order be'ore the end of the year. consumers have to apply to get the insurance r,00nsininted. the white asbestos a notification letters to sininte insurard we commissioners. those commissioners have to sign off on changes. current the insurance program -- coi hanies have to reprogram computers for new policies. and then finally, consumers pick a new plan and the insurance companies have to make good on it. we have to do all that about six weeks. >> good luck with that. meo the way, let me raise anothr issue with you. what happens if the insurance company does not want to reinstate that policy?
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some of these bills say the insurance company must. some say it doesn't. president's proposal is, but can we force the comed ony to take someone in their insurance. >> reporter: that could be a big issof rights. can you force an insurance company? there are all sorts of pro dems. the best comment i heard today was by a republican congressman. really turn back the clock. and fortune lahood gerrnot c i want you to commentn the president and the town and the tenant. de de
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gerri: it ended up not being accurate. not i was wrong, i did not tell you the truth, it ended up not being accurate. what does that mean? >> a little bit better than last apology which is sorry that this did not turn out so well for you. i think the president still has not come entirely clean. the other analogy made was talking about seatbelt laws. we require people to have seat belts. that is what this plan is doing, requiring people to get insurance. here's the problem. the president said that this was going to cost less money for people and save money for the budget. now we're finding just the opposite. not saving money for individuals , and the only way out of this is to blow a bigger role in the budget and to subsidize these people. so, again, i don't see any easy out. i don't think we are any closer to a solution today than we were
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yesterday despite all of these plans moving forward. gerri: wow. okay. the industry is in full rebellion. regulators are in full rebellion. the washington insurance commissioner today said no, we can't pull that off. not happening. california says it will try. you can't bring california on board, i don't know as a democratic president what you can do. thank you for coming on the show tonight. a conversation. appreciate your time. you have got to come back and help us get this fixed. >> we need that time machine. we need to roll the clock back and fix this thing. gerri: i like that. thank you. now we want to know what you think. here is our question. he did not mislead the american people. do you believe him? the on the right hand side of the screen now will share results. we have more to come this hour, including one december is actually a good time to look for a new home. next we head to capitol hill and
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hear from one congressman who is among the 5 million have already lost their insurance. what he thinks of the president's new plan after the break. ♪ my customers can shop around-- see who does good work and compare costs. it doesn't usually work that way with health care. but with unitedhealthcare, i get information on quality rated doctors, treatment options and estimates for how much i'll pay. that helps me, and my guys, make better decisions. i don't like guesses with my business, and definitely not with our health. innovations that work for you. that's health in numbers. unitedhealthcare.
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gerri: president obama's obamacare fakes is putting in sharers in ethics, but what about the 5 million people who have lost their insurance? here to answer that question, republican congressman corey gardner of colorado who has been cancelled. welcome to the show. had it happen, when did it happen, what kind of letter did you get? >> back in 2010 when we get elected to congress my wife and i decided that we would keep the existing insurance policy that we had because we wanted to be in the same situation as of colorado. low and behold, in august just a couple of months ago we have a letter along with 250,000 other people that said, your insurance policy is being canceled because of obamacare. gerri: i assume you have a family, kids, love the people covered and you opted not to get the fancy pens coverage that congressman dick?
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will rethinking? >> we wanted to be in the same boat as everyone else. we made a determination that we would get the same letters that are neighbors got when their premiums when upper down. unfortunately we get the one that said your plan is being cancelled. gerri: now you hear the president saying you can extend that coverage. what do you make of this? how do you react to the statement? >> letters don't make clock. the fact is, congress does. we need to put in place a replacement for this president's health care bill, a legislative solution. if the president is unwilling to double the biggest promise of his administration, then congress needs to do it for him, but it can only be done legislatively. gerri: he maintains, i can do this myself. everyone will go along. already we are hearing from washington state, no, we cannot do that, pull off you are asking us to do in that amount of time. it just won't work. it seems like there is an
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incredible disconnect between this white house and industry are business. they just don't get helen works. >> it continues. the president seems to be more worried about the effect it will have on his political party affiliation instead of the effect on the millions of americans who have lost their insurance. the president said then fumbled the ball. in my opinion he spiked the ball on the backs of the american people, those who have lost millions of policies around the country. gerri: i assume you are supporting congressman fred upton spill to grandfather ran, but i have to tell you to my big questions about that. how does congress come back in and just tell these insurance companies that they have to keep providing the same policy as they have before? those were contracts. >> well, the president is trying to create law through a letter. we're trying to legislate, pass
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legislation, but this is the first debt. nexus to make sure that the other issue that is going to drop, a small group policies, businesses, the employees to face the loss of coverage. we have not seen that yet. premium increases, today received a letter from a constituent who said he had two kids with the third on the weight. his insurance has been canceled, paying $610 per month. his new policy will customer around a thousand. after he has a third child they're looking at 13 an enormous premium. that goes up almost a thousand dollars for a family britney, around 4,000 amount. gerri: i have to tell you, my heart goes out to people who are in that situation. as somebody put it so eloquently , there is no other market place to go to right now because you cannot get on to the health care website. millions of people who have no coverage of all, the purpose of
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which was to get people health insurance coverage. >> months away from the irs penalizing people for not using a website that does not work. the fact that the congress will act, we're trying to get more choices. the white house wants to limit coverage. he simply cannot do what the president is trying to do and expect a better outcome. this is a failure of the law itself. gerri: people will be happy if they felt like there were not backed into a corner. thank you for coming up tonight. could to talk to you. gerri: later in the show, the future of the federal reserve. what you need to know for your savings. we answer the question, how do you do that. al and why shopping for a home during the holidays is a good idea.
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♪ gerri: if you are in the market for a new house, bases in can be a great time to look. our next guest says the end of the year is great timing. how do you do that? joining me now, personal finance expert. i think this is a great idea. is there any inventory? >> not a lot. you know, there is also not a lot of competition which is good
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they can jump in to my take the time. no bidding wars, multiple authors. income in the summer -- that is out they talked it out. gerri: people who are selling this type of year typically want to get out of the house and they're willing to do a lot to get there. >> what you might call desperate because the others had taken their homes off the market. and you will try again. the ones are still in this camera motivated and have a reason to want to sell. the flip side, the buyers are motivated. they have a job transfer. serious sellers, buyers, up the chance of a transaction taking place. gerri: mortgage rates come up a little bit, but you look at them and there still pretty attractive. the 30 year fixed. i was shocked.
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while. it is just incredible. the other thing is that home value appreciation is slowing. overheated markets. teetering on the brink of a bubble. they have become more affordable you have people jumping in. mortgage rates are still low. people who have been on the sidelines are thinking now might be a good time to get in. still live to do your homework, research, dual of this. a good thing is that lenders might be willing to sort of move the process along more quickly because they are not large down by volume. not to say you want to go with the four-cylinder. check their ratings and reviews. but if you do your homework and play it right you could find and buy some leprosy like. gerri: less talk about the first of the year. real reasons to start thinking about moving. your plan is we're going to move into your four months he might speed that up because there are new rules coming out. it really impacts people in
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expensive markets. your cost is going to rise if you don't get on board quickly. >> tighter lending standards, stricter verification process, the debt to income ratio cannot be above 43%. luxury buyers will jump in now. it wants to deal with 2014. the income is body cannot renew our, ceo. and the conventional and come. they're jumping in and buying. gerri: i like that. last word of advice for people out there are on the fence. >> you really need to do your homework, now the market. not six months ago, when the going for now. i really slow time. the seller is ready to move, and it probably are, make an offer, come in a little lower. make your offer. gerri: negotiation and markets where there were lots of people standing in line. a different market than it was. >> a heavily discounted market right now.
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tampon in. gerri: thank you. good job. coming up, they never for of our users guide to shopping with the mustache like a shopping applications. the first woman in charge of the fed. what would her confirmation mean? what would it mean for you and your money? ♪ we went out and asked people a simple question: w 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 known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪
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on for offer but that is all she said about the timing, she did not disabuse senators of the notion that she favors keeping interest rates low for a long period. and research suggests that might be until 2016 or 2017 now so, you will be able to buy a house or kay for for cheap, ease money. gerri: the flip side, is that the near-zero interest rate policies are hurting people trying to save, the people near retirement who don't top buy stocks they have been crushed. did she say anything about that. >> yeah, those people are constituents of some of the senators she was testifying before today, some of the senators brought that question up. >> we punishing middle class savors for years now, people who
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spent a working lifetime choosing to for go consumption because they decided they would save. >> low interest rates harm savers it is true. and this is a burden on people who are trying to survive on the income from a cd there is not much they can get. you know if you think about how can we get rates back up to normal, i guess i would argue that we can't have normal rates unless the economy is normal. >> that means she wants to keep interest rates low. so we go out and buy cars and houses and all those other things, and help get the economy growth growing, savers will be take with the loy rates also for a while longer. gerri: some senators were telling us, fbn today they will not vote for a nomination, but does she have the votes to get
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the job? >> she does, there are some republicans who are going to oppose her at senate banking committee, david better from louisiana told us that on fox business. we'll hear from other republicans as well. but she is expected to have enough votes to get through the full senate when her confirmation comes on the floor 92 peter thank you we appreciate your time. >> thank you. gerri: so what does this mean for the economy and your bottom line? joining me now, david, chairman of cumber land advisors, and jd, welcome you to both. janet yellen will keep her foot on the peddle for as long as it takes. >> i like janet yellen, the economy is not strong coming back.
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the employment issues they continue, we d do not have robut recovery. and latest numbers we don't have rising income. the we'll income change is near zero, the get has no choice but it continue a sti stimulative py until they can reach someplace to exit. it is nice to be with my old friend jason. gerri: i want to hear more from her. she is next fed chairman. >> it's important not to remove support, especially when the recovery is fragile. and the tools available to monitor a policy should the economy fall ter or -- falter. or limited given short-term rates are at zero.
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gerri: so jason, to you. can we withstand this? i think goodness, this must be making a bubble somewhere in the economy all of the free and easy money. what do you say? >> well you know there are a couple thing, first is the median price of a home is close to $300,000, there are about 400,000 of those built a year, the fed is buying that much more in mortgage backed securities every month, you buy 4 years worlsworth of all single familys in the country a year that does create a bubble, you can see that in the home price, and home sales, what happened in june once there was a0 hint of potential tapers. >> we don't have a bubble yet. we don't have a bubble in the stock market. we don't have a bubble in the
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art bond market. we have record prices, we can get one. we're in a process. i think that this new incoming fed chair knows she and she has said in her testimony, she has to reach a point where she tapers and gets to neutral, her point is, it is too soon to do it? gerri: 5 too soon? jason should to stop? >> you know, i had a discussion with a client this morning about this the question, should the tapering ease slowly or all en at once. you know there are risks although, david is right there are not broad-based bubbles but in u.s. there is a two-speed economy the housing bust in southeast and west coast, those areas you see frothy, they are at risk. and i think that really the next tapering decision you know
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whether they do something in december, if you get a strong job number for november there is a slide risk they could do something. esessentially if it is really big. there are in stock market, i think they are elevated . >> david, you look like you are just dying to say something. >> well, i am because, there is another piece of this, jason is an oil guy an energy by guy he has a lot of expertise in the area. you look at build out of the u.s. energy sector you can make a case for falling oil prices, which takes -- >> you can make the same for agricultural prices, grain, the truth is when there is a starting of the tapering who will buy the falling knife. the mortgage-backed security on
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the market. are institution at investors going to plow into treasuries and let the rates go up a lot if they do, that is where you run a real risk. and is there ever going to be a time that is good to taper? i would push that to you david? gerri: david, david, do you agree? >> well, i think if you have falling commodity prices and falling energy prices, have you falling inflation rates, if you have falling inflation rates, and rate of inflation is one and headed lower. then if you are interest rate on long perm paper is 4. your real return is very good, why do rates have to go shooting up, second point the deficit is slienchiningin shrink -- shrink. gerri: jason. >> they have to go high ar because of rates whether mortgage-backed security, rent will go up, you know if you see
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mortgage-backed security a hundred base points higher, people will be renting. gerri: wow that is interesting stuff. >> david. >> we have yellen, she set out the course. we may see the first tapering in march. it will be gradual and designed not to introduce shock. jason is likely worried about shock, so am i. gerri: yellen and people like her keep talking about how little inflation is a good thing, i say it like being a little bit pregnant. you can't have that. does not work that way, david and jason appreciate your time. >> thanks jerey. >> i thank you.
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gerri: time for a look at stories you are clicking on fox business.com, edging hire today. dow closed up around 50 points, google said, a 21% jump for first half of the year, request for data from government in the flownglobe. 11,000 of 26,000 requests came from uncle sam. mortgage rates rising for a second straight week but remain near historically low levels, average rate on 30-year increased last week. that is highest level since september 19. walmart said third-quarter profit rose nearly 3% but they cut the outlook for the full year and warned that 4th quarter profits may not be good, saying that shopper are still feeling the squeeze.
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costco. what it do you can fix and choose and create our own shopping list, fa vado will let you know when the items on your shopping list go on sale. they will let you know when the prices go down. gerri: the lazy man's guide. you talk about red laser, old school version of the app, it get everyone thinking about apps in store, everyone is thinking about shopping with the smartphone. >> so, you walk around store looks like this. gerri: like what? i can't see you. we missed it. we were covering you with a full screen. >> don't cover me. you are walk around the store like this. if you never used red laser it
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addictive, you are scanning everything in your house with a bar code. >> really. >> it allow to us compar comparn shop the item on your phone, without leaving the comfort of your home or just one retailer, most of the time you find best price on-line. gerri: i tell you, brick and mortar guys are trying to get even, best buy is matching prices. you have snuck in -- sneaky as you are -- snuck in one app that is a personal straight up finance app, mint. >> well, what is the best way to manage your money, better be san saving money, one problem we have budgeting and knowing where our dollar goes. mint is like a command center
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for your financial related accounts from brokerage accounts to loans to savings accounts to money market and checking account in one location, a centralized location, you can see every one of your accounts, the performance, and balance, and where your money is going. gerri: i like that i know where my money is going. no place good. retail me not. >> retail me not is example of the lazy man's approach, you used to get the newspaper it was thick with coupons, you spend all afternoon clipping and sorting them, no more, retail me not does it for you it peppers your smartphone are coupons from retailers you are interested in shopping at. did takes the painer out of the
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. gerri: as walmart, and kmart, and target and others, are working te other headlines hoping to do opposite, costco and others insisting that thanksgiving is a day for families not shopping. mark iting expert should agree considering consumer backlash afternoon other stores announce thanksgiving hours, calling for a boycott of kmart but also a risk since holiday shopping
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season is 6 days shorter, top 5, shares are nordstrom got buy ratings, and s&p capital. and pales in comparison to other stocks, top 5, list of stock to buy. they like them, number 5, staples, shares of holiday was on supply store up 38% from last year. company is hoping to add with a list of black friday deals, and number 4 cvs, stock has risen 42% since november, number 3 rock store, release earnings next week. it is up 45%, and carmax, shares of largest used car dealership in u.s. up more than 50% from last year, number one retail stock, best buy, shares of electronic giants. tripled in 12 months, up 1 87%. amazing. other stores bed, battle and
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does this mean to our economy? here so explain fran obide . i find this interesting we just heard about tina turner, she is giving up her citizenship, i assume maybe because she has been married and lived there a long time, you say there is another reason. what is it? >> well, tina turner is a dual citizen in switzerland their tax rate is much lower than that was the united states and it is more favable. but, other people, are giving up their u.s. citizenship because of irs's increased enforcement on undeclared offshore bank account. gerri: renouncing citizenship is up 33%, in 2013, look at the
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numbers. you know, you go, here is what i don't understand. if i live somewhere else, do i pay taxes in both places. >> if you life somewhere else, have you responsibility to report in the united states if you are a u.s. citizen. a lot of people don't realize that. they -- >> they don't know. >> right, they have been living out of the country for 10 or 20 years, then recall of a sudden they here about fa. they hear about it they get nervous, the foreign banks are required to provide information to the u.s. government, about u.s. tax payers, that hold accounts with the foreign banks. gerri: they are reporting on you, i assume that it is a law that stands for something. >> yes, a law, but that is not the only tool in the
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government's arsenal. the government also has tax treaties with foreign countries, that call to the exchange of tax information. and earlier this week, the government went into court, in southern district of new york obtained when is known as a john doe summons. these summons are will be issued on two banks, two foreign banks at requiring the disclosure of u.s. taxpayer names. gerri: wow, they are coming for you. >> they are. gerri: no doubt about it you said in a break, we were talking about this before we got started. you said nobody tells people who come to the country, you know, hey, you could be on the hook. what is the information they don't get? >> well, they are not getting information that have to declare their foreign bank account on their tax return. and we all know that tax return is due april 15, unless you are on extenttion, if their bank
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accounts have $10,000 or more, in the account. they are required to file an additional form with the irs, foreign bank account report, the f-bar form, due on june 30th 92 this is fascinating to me, this government seems to look under every sofa cushion and every pillow they can to find money, thank you, fran, appreciate your time. >> you're welcome. gerri: we'll be right back with my two cents semiconductor and answer to our question of the day, president obama said he did not mislead the american people on obamacare. do you believe him? stay with us. with unitedhealthcare, i get information on quality rated doctors, treatment options and cost estimates, so we can ke better health decisions. that's health in numbers. unitedhealthcare.
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wow...look at you. i've always tried to give it my best shot. these days i'm living with a higher risk of stroke due to afib, a type of irregular heartbeat, not caused by a heart valve problem. at first, i took warfarin, but i wondered, "could i up my game?" my doctor told me about eliquis. and three important reasons to take eliquis instead. one, in a clinical trial, eliquis was proven to reduce the risk of stroke better than warfarin. two, eliquis had less major bleeding
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th warfarin. and three... unlike warfarin, there's no routine blood testing. [ male announcer ] don't stop taking eliquis unless your doctor tells you to, as stopping increases your risk of having a stroke. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis ifyou have an artificial heart valve abnormal bleing. while taking eliquis, yomay bruise more easily and it m take longer than usual for any bleeding to stop. seek immediate medical care for sudden signs of bleeding, like unusual bruising. eliquis may increase your bleeding risk if you take certain medicines. tell your doctor about all planned medical or dental procedures. i've got three important reasons to up my game with eliquis. [ male announcer ] ask your doctor today if eliquis is right for you. gerri: president obama said his his promise to those who like their insurance plan could keep it, ended up not being accurate.
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do you believe him? you have been tweeting me all day about this topic. i want to read what tai said, the real of law is out -- rule of law is out the window, obama makes up rules on the fly. finally. you thought health care was a mess before, just wait. after requiring the industry change course for a second time in three years, the president wants health insurers to double back, let me tell you, behind closed-doors, they are hopping mad. it is possible to get the wheels turning fast enough to get what obama wants happen. it takes up to a year to get them organized and regulator in place. obamacare is none of those. not sophisticated, not organized. it may be expensive a expense.
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super expensive if it gets up and running, that is my 2-cents more. dvr the show if you can't catch us live, have a great night. >> the democratic party in a panic, no one more desperate than the part leader, president obama telling state health insurance commissioner to afford the affordable care act, if they want to and told health insurance companies they can continue to sell plans that don't meet the law's standards, if they want to, it appears that president obama has politically set fire to the obamacare train wreck. i am lou dobbs. good evening president faced with
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