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tv   The Willis Report  FOX Business  January 22, 2014 6:00pm-7:01pm EST

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application called backpedal. it helps erase you profile. that is tomorrow. "the willis report" is next. ♪ ♪ ♪ gerri: hello, everyone. i am gerri willis. tonight on "the willis report." >> consumer identity theft. we are pulling back the curtain on the shady underworld of hackers making millions in your name. and the only car to pass a crash test. it's american, but it barely got a passing grade. and digging out after a winter storm. bone chilling temperatures, 2 feet of snow and chaos at the airport. coming up tonight on "the willis report." at ♪ ♪ ♪
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gerri: welcome to "the willis report." you are showing your money and your voice. and tonight your personal information. many experts say that you should assume our identity is already up for sale on the black market. we are finding out more information about who is behind the target past and with us now we have the cofounder of crowd strike. a data security firm specializing in cases just like this one. welcome to the show and it's great to have you here. so can you tell us about this software? them our way or the we have used? where did it come from and who wrote it? >> it was built by 24-year-old in southern russia who claimed he was experimenting and trying to test computer security. but in reality he was selling his software for upwards of $2000 to various criminals who didn't use the software as a
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means to compromise target and steal credit card information. gerri: that is a great point. on one hand does software cost $2000 in on the other hand they made millions and millions. what is going on here? why can't target people figure out what these hackers are doing? >> you have an entire ecosystem that is online crime. you have people that are building the software and selling it to other criminals and then you have different sets of people that are using those cards and monetizing them. so we have this week. two people across the mexican border that were part of the breach. they bought them from the criminals that did. gerri: you are one of the brain surgeons trying to stop all of this. what i don't understand is how could target have been oblivious to the fact that this was going on. because apparently some of the stuff was months and weeks before it was found out.
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>> this happens all the time. companies of need to be notified that they have been breached. unless you are monitoring your network then you are going to miss that. so when security software fails you have no idea if someone is inside you networks roaming freely. gerri: we know that the software went into the system and was able to move around undetected. making itself completely visible to the target folks. here's what i don't understand about the story and what has been going on for the last few years. what we have found over and over again is people who are doing these hacks are russian.
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cybercrimes originating in russia, more than anywhere else. we just had a big cybercrime case prosecuted last year. the fellow at the center of it was a russian. why is this happening? >> you have a proliferation of cybercriminals in eastern europe in general. and the reason is you have a very technical population there. they know that they can go ahead and proceed to steal data from americans. credit card information and other financial data and not face any prosecutions. it's very hard to actually bring those people to justice. gerri: so cannot protect us? can it keep consumers protected from having their data stolen? >> nothing is perfect. but it's certainly much better. when the criminals steal your credit card number they can no
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longer use it. we need your pin number as well. it is much harder, so you are raising the bar and making it difficult for them to operate. nothing is perfect but it's in the right direction. gerri: it's a big help. that's what we keep reading. one expert said he might as well just assume that your identity and your information and your personal information has been stolen. do you agree with that? is that true? >> absolutely. target is the latest in a long number. we remember t.j. maxx had a same issue. the information has been optimized. so you need to watch your credit report very carefully. police several times a year, engage and credit monitoring to make sure that your identity has not been stolen. gerri: i just can't get over that. talking a little bit more about this cloak and dagger world.
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why don't they show these marketplaces down, why's it so easy for hackers to roam around and get all of our data? >> well, these are online marketplaces and you have these underground forums that you have to be vetted into. so you can't show up in the side to buy it. you have to be a trusted member of the community. and as you build up your reputations you can start by cards and stolen information and the software that you can use in these attacks. and the fbi and the secret service they do manage to shut some of these down particularly if they are outside of russia. but they just move to somewhere else. so at the end of the day the internet is a big place. you can operate one of these very easily. so we just see it migrating from one place to another as we shut them down. it's a little bit of a lacrimal dame. gerri: i can see how that is true. thank you for comiig on the show tonight. we really appreciate your time. you have to come back.
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this is a big story and another we will cover in overtime. gerri: imagine that. a russian cybercriminal expert. and another warning for all of you facebook people out there. we have all seen the pictures of soldiers and animals that have thousands of lights and ask you to share their pictures to share their support. it turns out that it's probably a scam. a crook can get a commission for selling these. while it seems more annoying than harmful, some are saying that they could then spread now wear and make it access to your personal information. the bottom line is please think before you click. online safety and car safety. only one compact car out of 11 passed the new crash test and it barely passed. with more and we have a senior vice president at the insurance institute for highway safety. welcome to the show and it's
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great to have you here. how is it possible that none of these cars are getting good ratings? >> it was surprising that we didn't see more vehicles earning a good rating. but this is a relatively new crash test that represents a gap in road safety that we identified through our research. and a lot of automakers are just not focused on it as carefully as they have focused on other areas of car safety in the past. so we did have a disappointing group with only one vehicle earning the second-highest rating of acceptable and the rest marginal and poor. gerri: that was the chevy spark. and what did they have that the others didn't? >> general motors had built the structures into the chevrolet spark to deal with this kind of crash better than some of the other vehicles. and what you want to do is have a vehicle that can deal with the
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force of the crash upfront in the front end so that energy does not come back into the occupant compartment where people are sitting. when you have that happen and when those energy absorbing structures are missed as has happened with a lot of vehicles. you have that force coming back in where the driver is sitting and so you have what you see is a collapse of the occupant compartment and intrusion of metal coming back towards the driver. the steering columns moving back and over to the side and they missed the frontal airbag entirely. and then you have to be part of that do well. gerri: is there anything about these these small cars that maybe they don't have the heft or the beast of an suv that makes it more likely that they will crash? >> that is a great question. it is possible is general motors
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has shown 28 design a vehicle that can perform relatively well in this very tough crash test. but there is a separate issue that consumers need to be aware of. which is that the laws of physics are always at play in any kind of crash and if you are in a small lightweight vehicle, you are always at a disadvantage compared to people who are in heavier vehicles. it is still true that the more metal around you is better in crashes. gerri: marginal ratings in this crash test, that is the mazda and the kia and the ford fiesta. take a look at that. maybe your car is on that list. and here's what i found interesting. the honda leading the way. a lot of people on that. >> it is an older design and they built the countermeasures
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into it but they have been building into their other vehicles. it's important to note that they have some new products like the new honda accord and the new honda civic doing very well in this test and they are about to come out with a new honda fit @%ter in the year and we expect it to do better in this. gerri: ross, thank you for coming on. we appreciate it. >> it's good to see you. gerri: after today for the first time, child car seats in impact crashes, new regulations proposed by the government, upgrading standards to include new testing. the national highway traffic and safety administration believes the standards could prevent more than 60 injuries per year. and there's more to come in this hour, including another announcement from amazon. and target's latest move to cut health care coverage. doesn't mean we are headed for a single-payer system? we will get your reaction. please stay with us.
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gerri: health care as we know it, even today, is it a thing of
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the past? and something that it is a single-payer system that we are gravitating towards billy bob, welcome back to the show. so let's start with this idea. these companies seem to be dumping workers into obamacare. target, as we heard, trader joe's, home depot, walgreens. then we have the companies that say that we are going to ditch your plan for coverage of your spouse. ups, the list goes on and on. are you expecting more of this to follow? >> i think so. right now you have anywhere between five and 6 million people that have lost their coverage in the individual market. so this decision by employers to start dropping coverage because of the cost of obamacare is
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certainly going to continue. we haven't even seen the beginning of this yet. target is the most recent. but they are going to see a lot more. gerri: this is the way that obamacare orchids numbers for the workers. companies dropping them into the obamacare system. if you're young is the only option available. you think that's behind what's available? >> effect of the matter is if you lose this insurance there is nothing else for you. you have to go into your health insurance and exchanges. and if you don't you are subject to a mandatory penalty. and you are looking at this being crowded out in the tremendous growth in government coverage. gerri: i heard a conversation about it this morning.
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and it really changes the dynamic for workers in this country and it changes the way people do things. and of course companies are supposed to be offering coverage and it's cheaper for them to pay the penalty instead of having a plan. and the insurance has some of the old requirements that are imposed on them by the secretary of hhs. a lot of them are saying that i can't do this anymore. i have a bottom line i have to worry about.
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gerri: that's what i'm worried about. target is saying that the target workers are going to be better off. it's going to be cheaper. you agree? >> no. there's no way to know that. and that's why this is u when people are dumped into the exchanges they are going to get with the what the government gives them. they have no control whatsoever about what they are going to get. they know that under the target wwhn they had a plan that they probably liked. and especially for their wallet. dependent upon their income. and if they are very long time coming make less than $16,000 per year, then they are going to go on medicaid. and going on medicaid is often
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getting an insurance card without a doctor. if they make more than $46,000 per year and they are dumped into the exchange, they get no subsidy at all. gerri: there is a weird catch-22 in this way. as to who gets health insurance, who doesn't. last night i was speaking to doctor middlebrooks and he was saying that this is a single path to single-payer and listen to what he had to say. >> sure. >> the law was designed to draw everyone to single-payer. businesses are going to release people and so his target and this is where we are going. gerri: do you agree with that? >> well, we know that this is unworkable and their millions of people who have had their insurance canceled. there is far less insurance and there was a year ago they won't
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decide certain things but they will decide what you will pay for them, services, what kind of services, the governmental control the financing. they control the benefits of financing, then what is left? gerri: that says it all. >> and so it doesn't make any difference if the government is basically calling the shots on everything. and about whether you call it a single-payer system or not. it is a government run health care system. gerri: you make a very good point. and as usual you are very articulate about it. thank you for coming on the show. it is good to see you. >> always my pleasure. gerri: we want to know what you think. here's our question. do you think that we are headed towards a single-payer system? la mancha gerriwillis.com and i will show the results at the end of the show. and the northeast, we are blanketed with a foot of snow.
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gerri: imagine getting all of your cable content without the cable. "the wall street journal"
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reporting that amazon is considering an online tv service that could change the way that you watch your favorite shows. matchbook editor and chief is with us for the details. so thank you for coming on the show. before i go any further so we know what is being talked about amazon, i wanted to hear about what they had to say in "the wall street journal." they say that continue to build selection and create original shows. but we are not planning to offer a paid tv service. so explain what they see in the crystal ball for amazon? >> they are out there negotiating and trying to get some channels or as part of a standalone type of service which offers both prime service and basically like many cable
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service, it is coming online and it is a service doing this kind of thing and you really select just the channels that you want. gerri: à la carte. that is what people want. i could have kindel tv? >> oh, yes. and first of all don't forget. the kindle fire plays hd video and you can download this and you can watch your favorite channels through their service if this were happening. gerri: isn't this what everyone wants to do? >> google and horizon? who is the closest horse in this race? >> there's a lot of different companies doing so many different things. google comcast, you have a device you plug into the side of your tv. glue, netflix, what's already on there, youtube, you can get the content or apple tv, it and it is -- it's been harder to get the channels.
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so if you have an xbox coming out of selection of channels depending on your service provider. there's a it is a marriage between the cable company and those companies producing this. it's just like okay, i want this %-channel. and i want the golf abc. but i have to stress that i really do believe that the whole industry is going through a change. gerri: let's talk about what is the likelihood of the licensing deals of these content providers and how do you approach this and say that we are going to do this? >> they are really not doing these things. they want to control their own demand of stuff. cable companies are far more flexible. and so you can watch it where you want it when you wanted. so they understand the different viewing habits and the other guys are very old school and
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very protective. so i can all i can say to these companies negotiating is good luck. gerri: what will it take to tip the balance? i think that consumers are moving pretty dramatically in the direction of i want this one i wanted. >> i think it is a recognition of what has happened with netflix and amazon as well. they now have these series, house of cards, orange is the new black, all of these things they are putting out there. in all 13 episodes go out there and that breaks the model. and what networks are finding is that they can't get people to engage in the same way that netflix puts it out there and its people to binge watch tv. gerri: but is been watching tv profitable? i like it and that's great for me. >> well, look at the netflix earnings. they just had a great quarter and that has to be on the back
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of this new content. so the model is changing, the networks have to wake up. people know that change is coming. gerri: which company will be the smartest about this? who has the kind of executive leadership and the power to get this done? >> amazon does. and the managerial acumen, something like apple which has a ton of money and we have been talking about apple tv forever. but it's not here yet. gerri: i think it's because everyone has decided that it's not what happened and maybe that will win the race. >> thank you for having the. gerri: thank you for coming on. editor in chief, my friend. and coming up a new author says
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with age comes wisdom. he will join you later on. and the second major winter storm this month is grounding warplanes today. what you need to know after the break coming up next.
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♪ >> from our fox business studios in new york, here is gerri willis. gerri: you can barely see any of it. yesterday the winter storm may be clearing out, but that doesn't mean clear skies for airline passengers. so how long will this travel disruption last? we have the ceo of fare compare.
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>> it is almost up to 2000 already. the third week in january, at least there are some middle seats to get everyone back home on the planes. the cancellations were actually triple what they are today. it was completely crazy. people were getting home from a six or seven days. gerri: the ripple effect continues. when will this be done? >> well, it looks like by this weekend everyone will be back in the saddle. hopefully we won't see another snowstorm. we want folks are complaining last. this is interesting. the department of transportation about the airlines. the department of transportation
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received this down from 857 in october are people happy or are they just thinking that it doesn't work? >> to some degree they are being done well that. the other thing is that you have to remember that we have almost a decade and more than a decade that don't even know what it's like to fly prior to 9/11. so they don't know what it's like not to have tsa and you have a bunch of money was and we are now on our sixth anniversary. and so on the flipside airlines are getting new aircraft and we have fewer flights that are bad for prices. but it's really good for air traffic control. so you have less issues with on-time arrivals and outside of the storms we have seen the last few weeks the. gerri: i want to ask you, what is the best way to complain?
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>> all the airlines have places where you can complain on their website. where they go, we don't know exactly. the best places social media and they have customer service reps monitoring is because they are worried about what their reputation is. and if you don't get to where they are, on the dot and also the tsa has its own hotline and all the links on our website. the. gerri: that is a good place to go. p ticket is up $7 in 2011. from $363.42. so where is this going? is my theory since we've had this consolidation that is only going up. >> it's actually going up. the real question is this grand experiment is consolidation and we really don't know what that looks like a decent economy. so when that happens and we can start asking whether flying is really going to be part of it.
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they will keep them having to fill those empty middle seats. gerri: i have to tell you that i priced travel yesterday and i thought oh, goodness. because i do now before and it wasn't that much. rick, thank you for coming on. it's always good to see you. a consumer alert for you now is another polar vortex grips the nation. midwestern states are facing a growing shortage of propane. 14 million households use it. there's a record high due to the freezing temperatures and supplies are at record lows due to a late corn harvest. a gallon of propane costs $2.45 compared to $1 and was sent earlier. the price of natural gas on the east coast is soaring to another record high. the second stretch of cold weather is -underscore noise that there is no way to transport natural gas to populated areas. prices are usually between 40
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and $50 per million units. but has skyrocketed to over $135. nearly half of these households rely on this. and these are the general numbers for the country. and i am not just talking about heating. i'm talking about electricity and cable and internet. number five is inconsistent. number three is new york city. things always seem to cost more. number two is orlando. the disney people pay more than $92 in october and the number one city with the highest utility bill is houston. according to the white sands index. residents pay nearly $300 a month for utilities. other cities are las vegas and washington dc. when we come back how one woman
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uses cake to stave off foreclosures. and respect your elders. that's a lesson from a new book that says those have a lot to offer especially about money. [ male announcer ] hands were made for playing.
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gerri: age may be a number but with that comes experience and wisdom. more than 500 people sharing advice with the younger generation. the author of secrets to success in business and life. >> it is the fastest-growing segment of our population.
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>> it appears to be a safe company. >> up put them right back into the company. gerri: wow, they are on it. >> yes, they are. >> what i was saying is that you have all these economic cycles and i said what do you think is the best place to invest? i was looking for a major majority speaker to guarantee my success and you have to diversify. real estate, mutual funds, you name it. and the answer has been around for years.
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the richest man on earth that divide your fortunes of the seven or eight chairs where you do not know what disaster comes upon the earth. all of these assets will but experienced disasterrover time. gerri: they also talk to you about savings. >> five to 10%. absolutely. >> [inaudible] >> in 1929 i had this money in the bank. >> i asked them not what he did during a century of life but if you had your life to live over again, what is the percentage of your gross income and the absolute minimum that i got was
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10%. that was the most frequent. but over a third said over and over again. it is not what you make but it's what you spend. to save a minimum of 10% and we need to be 50s savers. the. gerri: we are not doing that. >> but you can't save 10%. 50%, 30%, that's impossible. >> no, it's not. they said you make a dollar and 50 cents in the bank. and i said, rachel, did you do that? and she said absolutely. gerri: i think a lot of americans are trying to raise premiums as best as they can. the. gerri: then he put it away and don't think about it. one of the things i really love that they talked about being rich. this is heartwarming. >> this is great.
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>> money isn't everything. >> we need to invest. >> you don't have to have money to be rich. if you have a wonderful family that you love and that they love you. and you are rich. gerri: i love that. >> you have to understand the context in which i asked that question. i purposely acid in the middle of the money questions. right in the middle of these questions i said how do you define the word rich. and it all focused around family and faith and friends. knowing that god loves me and that my family loves me and that my friends love me and i have good health and i can enjoy life. and i can still do things. they are still golfing and going and going to church. and you name it. very active people. that is their definition of
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success. >> most people need to be meaningful with the specifics. you have to be intentional about faith and family and friends and it just doesn't show up. gerri: great book. celebrate 100. >> live long and strong. the. gerri: you as well. my "two cents more" is coming up and to save her home from foreclosure. her story is headed for hollywood. ♪
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i. gerri: almost five years ago a new jersey woman found herself more than $2000 short on a home loan payment back in the day. she figured what is the quickest way to make some money? little did she know her small scale of homemade apple cakes would turn into a big business and a tv movie. here to share her story is angelo logan. it's so nice to have your. it's and it is great to be here at. gerri: what went on that you made this move? >> my home is in foreclosure because an agent closed and took a lot of my money. gerri: so many people face those problems. >> it was a very difficult time. during a mortgage crisis and so many people were out of work. so i decided to do was to take my cake recipe and make a plan
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to make at least 100 cakes in 10 days and asked my friends and neighbors to help me save my home. gerri: you put a price tag of about $40? >> $40. gerri: how did you decide to make the cakes? did you think you could make money at? >> i knew people liked the cake. my sons would eat a piece and then hide a piece for later. i took it to parties, people loved it and they would complement the cakes. so i said, why don't i try doing this. everyone in georgia where i was born and raised, there was a cake lady who made cakes. as a side job. gerri: so you had seen this before. did you think of yourself as an entrepreneur? >> at this point absolutely. because the cake business turn into a real business. it is something that we do on a regular basis with stores and restaurants and it has become a
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very big business. and we have four different cakes are made of apple. so i stick with apples for all of my cakes because it saved my home. >> i wanted atoning about your story on tv. >> yes, it is the apple mortgage cake which is a little twist on ours which is mortgage apple cakes. and kimberly is such a great actress. i've been a fan of hers and all of a sudden she is doing a movie about me and i could not be more pleased. gerri: is unnerving? someone telling her story, it's like wild. >> it's so interesting. when we were working together we both looked. it's so interesting. but she's great and it's all i could do because i was reliving all of the things that have happened. and then of course the joy of
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things. gerri: that is really to take away here. because you are up against it and you have a problem and you solve it. now you have a great business venture. so how well is the company doing and what the next steps might be? >> we are about to do national sales again. we were doing the cake on a local level and people wanted us to shift to this. so we are expanding our markets all over the nation and it was licensed for a year. and then took it and it became a smaller company. gerri: that's good. baking is time-consuming. before you go, i have to have a bite of this. this is gorgeous. what is this icing? >> it's made with organic sugar and spices.
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and it's a cream cheese frosting. in the cake is made with fresh apples. that's one of the things that we do. and this is my original apple cake. the one that saved my home. gerri: i would see why. absolutely. thank you for coming on. >> thank you. gerri: what a great story. we will be right back with my "two cents more" and the answer of the question of the day. are we headed towards a single-payer system? [ male announcer ] e new new york is open.
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>> target will goldberg offer health care coverage for part-time workers because of all the new options through obamacare betty say this is the latest up on the road to a single payer system of. here is what you are posting yes. i believe that was the plan.
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>> it has that their plan all along i hope there is a way out of this mess. said a percent said yes of the 29 percent said no. be sure to log off for the only question every weekday. one fled to us know my neighborhood was buried iran it into the of fox we urologist who was covering everything gold. we were wearing the exact same snow boots it is all about comfort by the way think you for your comments were a first posted the picture. how did you weather the storm? tweet your picture be bullish share them on the air. and don't forget to new tv
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are the show. have a great night we will see you tomorrow. lou: do polls show that president obama is utterly wrong to blame his dissenting popularity of racism he sees the sinking job approval numbers are directly tied to his core performance on the issues that matter most to america. i am lou dobbs. lou: good evening. the president's job approval rating is under water. polls show a growing discontent with his policies and administration. lybrand news survey

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