just for a second anyway. i would have returned it. i hope you made money today. be sure to set your dvr every day for 5:00 p.m. see you back here tomorrow. "the willis report" is next. hello, everybody. i'm jerry willis. tonight on the willis report. obamacare's software written in -- new charges and new concerns for millions of americans. also, new problems for air travelers. a shortage of pilots coming sooner than expected. and more wild swings in the market since the tax code to blame for busting your 401(k). we've watching out for you tonight on the willis report. ♪ recalls for cars spiking. maybe your car automakers

recalling 22 million cars and trucks here in the u.s. last year. that is a nine-year high. that, according to the national highway traffic safety administration, so why is this going on? let's bring in larry prince, an auto expert. what is up with this. it sounds like every car in the world is being recalled. [laughter] >> it certainly seems that way. can you imagine? 632 different recalls last year. now, you know, when you think recall you think, like, oh the chevy, vega, you know, the awe motive hall of fame stuff. the real city there a lot of reasons for this. mostly it's because a lot of cars underneath the car are being shared now. you might have a a beetle, and your neighbor might have an audi four. they might use the same engine and have the same suspension. if therest a problem you're going to find you have a recall just like they do. gerri: i'm not loving this.

it's all i need to get my car recalled. does it get worst in the future? is there something about the way cars get recalled more will be called back? >> well, yes. there's a reason for this. part is because there are fewer suppliers. but more importantly it's because what the federal government did. if you remember back around the time that, well, fire stone tires were coming off ford explorers and turning soccer moms to stunt driver you're going to remember that congress acttd. they enacted something called the transportation recall enhancement accountability nd document -- gerri: come on! give me the shorthand on that. that's ridiculous. [laughter] >> it's called tread. the reality is what it did -- held automakers accountable for, say, knowing about recalls. -- gerri: all right. the shorthand on this the government says to the automakers if you have a problem, you must report it to us and if you don't, the lawsuits are on your head;

right? >> not only lawsuits but get this, if someone dice as a result of it they're going to be held criminally liable. gerri: wow. now these automakers are probably overreporting problems. i don't want to stop pedal them. chrysler has the most recalls. why is that? is there a problem with chrysler manufacturing? >> they're certainly having a lot of issues aa a result of the merger and integrating all the different platform they have to do. but keep in mind some recalls are more serious than others. for instance, chrysler may have a recall for engines fires or something like that, where as there might be another recall where toyota, for instance, nay had unintended acceleration. they also had a recall for spider webs building up in drain holes and blocking drainage. that was a recall. gerri: i don't care. but tell me what did the recall that are important that could

make the difference in your safety? >> well, it certainly is the ones that you need to be fix that need to be addressed immediately. those are the ones that put yourself at risk or -- what are they? in your engine, in your braking, if it's something about if your possibly rear ended. being rear ended is most the common crash. if you are concerned about crash safety. it is the front you're heading in one direction and the person heading toward you hit the front left or right corner. that's really the most -- gerri: all right. >> that's on a recall. gerri: tell me. i get things can go wrong. tell me what is the recall of the lass year you thought wow, it was important this was serious. people need to know about it. >> well, the people need to know about it are always know about it. they send you a letter and do

notify you. but when -- if it's -- for instance theee was one, i think, from chrysler, i believe that effected towing hitches. it came around the time of people doing towing. i have to tell you if i'm a following a boat i don't want it to become unhitched because a rusty hitch. gerri: no! >> you can be in trouble. gerri: we've having a little bit of fun. the reality you have to pay attention to the notices when you get if in the mail. it could be something serious. larry, thank you for coming on the show tonight. appreciate your time. >> absolutely. thank you for having me. gerri: thank you very much. and now we want to know what you think. here is the question tonight. vehicle recalls hitting a nine-year high. do you feel safer? log on to gore res willis.com. vote on the right-hand side of the ask screen. i'll share the result at the end of tonight's show. here is an amazing story. more safety concerns surrounding obamacare. listen to this. a new report from the washington "times" that is raising the alarm some of obamacare software was produced by people connected

to the belle reduce government. our federal government denying any connection with the country. our millions of consumer's private data at risk. the writer of the report joins me now. thank you for coming on the show, bill. i know, people want to hear about this. what is going on? >> here is what we know, gerri. there was an intelligence report within the u.s. government produced last week that warned that there was clearly an indication that software engineersvilles are which was a former soviet republic closely lined with russia was somehow involved in developing the software for the obamacare health care network. that is the network that links some 300 institutions to the federal government and now up to some 3 million americans who signed up. and beginning a hunt for the malicious software within that. gerri: so now the government is denying this, but i want to get some details out about it first. what the real threat of this

would be. obviously threat to consumers who are trying to get on the system, but this seems like a crazy question. the obamacare website is connected to just about every government agency. so -- >> yes. gerri: would it give russians access to government secrets? >> the concern here is first, the government hasn't denied it. they are searching for malicious software. the white house confirmed that in my story. basically they're concerned about identity theft and privacy data being comprised. what they think is that some software could be placed within the obamacare network that would allow back door access or covert access. last year there was a major diversion of the internet what they call internet hijacking which diverted large amount of data right in there. the excision of having an adversary government among the malicious software and the diversion of the internet that's creating the concerns according to the intelligence report. gerri: and i'm going read you

the statement from the government. candidate lynn at the national security council sounds like a denial to me. so far-found indication any software was develop there had. as a matter of due diligence they continue to review the supply chain. supply chain risk is real and one of the top concerns in the area cybersecurity. you know, you say it's not a denial. it's sort of the old fashioned nondenial denial. we don't think it's true. we can't give you a definitive answer. how is it possible that we would have used folks from -- the government to help us build obamacare. that makes no sense to me. >> yeah. it make sense to me either. but clearly i think part of the problem is the administration really isn't aware of cyber threats in a major sense that if they were involved there could be a u.s. subsidiary of the company that was involved in it. i think it's clearly a major threat, and they can't be sure there's 5 million lines of code there. most software has only about

500,000. this is something that deserves to be closely examined. gerri: no kidding. bill, thank you for coming on tonight. fascinating story. >> thank you. >> i hope you'll follow up with us. thank you. wow. as if it aren't bad enough. they are out with disappointing news on obamacare. the cbo said obamacare will lead to million of folk cutting hours at work or leaving their jobs all together. the agency said this will call nearly 2.5 million jobs lost within seven years mainly because they don't have to work to get health care coverage now. and many want to keep their income low enough to get the subsidizes you're paying for. also, the experts say fewer uninsured people will get covered this year under obamacare. the cbo is dropping the estimate by more than a million. less than 6 million people will have coverage in 2014 thanks to the problems with the website. supposed to be 7; right? more still to come. including a warning about the next time you fly. what you might face.

and target said they're deeply sorry as they get grilled on capitol hill. you want to hear this. a live report from washington. find out what the retailer is doing now to keep you safe.

holding a hear on the slew of

hack attack affecting millions of us. rich is following the latest from washington, d.c. rich, what is new? >> reporter: well, gerri congress is trying to figure out how to prevent the next successful attack. they introduced bills that require retailers to at least november customers if hackers steal their credit card information, increase fines on companies that fail to protect payment data, and set strong penalties for criminals who steal that information. retailers say they spend millions to safe guard the system from attack despite that in target's case executive says the government had to tell them they had been hit. >> had you had any knowledge that malware was there before the department of justice give

you the notification? >> we did not, senator. mr. chairman, despite the significant investment in multiple layers of detection we had within the system, we did not. >> reporter: some retailers and card companies say the next few years begin introduce credit cards with security chip and pin numbers. one said those cards will prevent against cyber attacks. customers could still be vulnerable. >> chip and pin is a step in the right direction. it's not a panacea, it definitely adds three primary benefits to the e ecosystem. it's more encryption. so the credit card information would stay encrypted longer and make it more difficult for the hackers to obtain the information. >> reporter: security chip cards are common in urope. the u.s. has been slow to adapt because the cost. security cards are more expensive and require retailers to install cashier terminals costing the card companies and

the stores. gerri? gerri: you know, i know congress is having a bunch of hearings on this. there's a lot of hot air in washington on this topic, but are they going to do anything? >> reporter: well, congress as it often does in the situation, you're right. they hold hearings, issue press releases, release bill and show the constituents they're working on the problem. as you note there are more hearings tomorrow. it is an election year. they are likely doing less than it did last year. it can be a difficult political sell this issue. you're calling for increased regulation for retailers and considered company -- credit card companies. as long as there are no more major breaches this year perhaps it is dice down. if you get another one there could be greater call to push if through. we're right on the edge on this one. it might be slow enough they won't get done. gerri: i don't know if you can count on not having anymore breaches. i don't know. well, our next guest actually testified at today's hearing talking about solutions

protecting consumers' bottom lines. a policy counselor for union. i saw you testify. you were dynamite today at that hearing. great job. i want to talk to you about some of your solutions for this problem. what you think needs to be done. but first we've got hear from john mulligan from target, the cf orb. he apologized today. the company apologizes. listen to this. >> i want to say how deeply sorry we are for the impact the incident has had on our guests, your constituents. we know this breach has shake their confidence in target and we're determined to work very hard to earn it back. gerri: what do you think? yet another apology. do you slug your shoulder. does it make a difference? >> one thing to say sorry. it's another to take action. we would like to see action today at the hearing we saw two executives from national

retailers stand up and oww up to the problem, and make an policy and commitment and that's a good first step. but we would like to see it followed through. gerri: you know, target is saying, look, we're going get the smart cards out earlier. let tell me you the standard in the industry is already next year 2015 that the plan is to get on board with smart cards. somehow it an improvement? >> sure. a lot of promises have been made on the part of stakeholders, but, you know, we would like too see this happen as quickly as possible, and so we look forward to being part of the solution as well. gerri: what we're talking about smart code pin and chip. as we were showing you earlier higher level of encryption, more difficult for them to steal your information. it's not the only solution. what do you see as the steps that need to be taken here? what are you fighting for? >> absolutely. it's a great first step. we would like to see a federal

standard at the same time we would like to make sure that the states -- their hands are not tied and able to take the steps necessary to protect consumers even further. so that's a concern of ours as well. data notification is very important to us as well. consumers need to be made aware of the problem when it happens so they can take steps to actively -- gerri: let me stop you there. you talk about notification and states all over the country have different laws in the book. you have to understand that these retailers are national and facing different rules in every single state about when they have to tell people. it seems to me if you take a good look at what happened with target, with knee man, a lot of these retailers you have to wonder if they made the deadlines in some of those states. do you think the law has been broken? >> so i think there are a lot of unknowns that remain. they're active ongoing investigations, and i think it's a good thing that federal investigators are looking in to

this problem. figure out what happened and what we need to go to prevent it in the future. gerri: how do you think states can protect consumers better? >> well, california is a great example. they were the first to introduce data breach notification law and continue innovate in the area. and so, you know, this raises the bar for other states as well. and that's something that we think should don't happen. gerri: in this country, we are so behind the eight-ball on this. you go europe they have a smart cards. you can't do anything unless you have one of the cards with the little hologram on it. why has it taken so long for there to be a serious conversation about this in this country? >> the answer is because it's expensive. it's expensive for adoption at the point of sale for retailers. expensive to reissue the new cards. but, you know, frankly, it's going to be more cost effective to figure out a solution right now than to keep letting these breaches happen.

gerri: that's right. at this point, the cost for the breach to consumers and the company far outweigh the cost of introduction. i still mystified by why they're not moving up that deadline for introducing it earlier. who do you think is a real culprit here? the banks who aren't helping or the retailers who aren't helping? >> there's been a lot of finger pointing. our take is that ultimately consumers are the ones suffering here. we all need to collaborate and work together so that they are able to not be -- >> yeah.. gerri: i think everybody is tired of having their information at risk and maybe your personal identity will get stolen. thank you for coming on the show tonight. any time you goat new york, give us a call. thank you very much. unbelievable story. coming up why the tax man may be part of the reason for the turmoil on wall street and the markets right now. they've been called the lazy generation and the welt fair

generation. the new report said we may have to start calling me less thannial the saver generation. you'll want to hear that. ♪ ♪ ♪

see what's new at projectluna.com open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more businesses... we'ropen to it. start a tax-free business at startup-ny.com. there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title.

and a raise? managementouldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. the most financially conservative generation since the great depression. how to get them off the

have you called young people? lazy? , entitled? you may be wrong. a new report said the most financially conservative generation since the great depression. they are hording cash and avoiding wall street and trading and investing like the plague. we have the head of the new

report here with advice on getting them off the sidelines. mike brian chief investment strategies. thank you for coming in, mike. i'm astonished by the numbers were you? >> they and breaks all the stereo type. gerri: 52% of the port follow you are in cash. yeah. >> who would have thought that? >> they were affect bid the financial crisis. let's not forget they knead through 9/11 and the last financial crisis. they had the extraordinary event. it's not -- unlike the depression children. gerri: i can see that. now you line it up and make a lot of sense. maybe we've been too hard on them. here is more number scared invest they believe in long-term investing. 28%. do you think because it's the sell-off in 2000 that began in 2007? is that what we're talking about here. the experience of the great recession?

>> i think that's a part of it. i think they have seen their parents affected and their personal fortune affected. i think they have to understand the difference between savings and investing. they're willing to save but not willing to invest. that's a difference because the ability to satisfy for your future needs hinges upon the ability to invest. gerri: what are you telling the folk? >> they have to establish a relationship. it's another one of those stereotype about the generation there's an app for everything. they're willing and able to talk to folks. they want the relationships folks they trust. for the part about getting engaged establish the relationship, building the report, and getting to understand the importance of investing. gerri: the app is not enough for them. they want to talk to somebody at the end of the day. they want a relationship with somebody to talk to them intent -- intelligently. >> they're not purely self-districted. they're looking for the relationship that help with them. the other thing that is important about it they look at financial security important to them. a little bit disconnect between stuffing money in mattress and providing financial security through investing.

i think it's a bit of diswe believe the. gerri: part of the problem they're hording cash. now is the time when you're in the age category you want to be invested in stock. if you let that investment germ nate over time. you'll have a much better performance. >> especially with the generation. it's talented, educated, so it has a long-term horizon where you have an ability to make money. and the ability to put money to work now in the market is more important for the generation than most other generations. >> you think they learn lessons about whatnot to do. >> i think they have seen what happened to their parent. those who took a small profile of what happened during the period of the -- they looked and said that's the lifetime experience. and unfortunately it's a lesson mislearned. you have to look more broadly. gerri: absolutely true. you say you have two millennial. does that jive with your findings with the kids. >> sometimes they feel the shiftless generation. but, you know, my kids are both in school.

graduate school. the little one going law school next year. the older going to grad school and working. they're achievement oriented part of generation. gerri: so interesting. i guess rising college costs play in to it. >> they do. the generation is willing to work for the things they think is important. and not only include their own financial health but also about the things important for the family. this generation cares about taking care of their parents. i'm counting on it with my kid. gerri: one final question. it seems the parents should be active in saying you center to did something other than stash your cash in the mattress. >> i think there's an education process and part is, again, getting these this generation involved with trusted counsel and folks who give them guidance about the first thing taking the first step. i think that's the important part. gerri: first step. that's the hardest one. thank you for being with us today. great job. wow. time now for a look at the stories clicking on tonight on foxbusiness.com. stocks rebounding slightly after yesterday's massive sell-off.

the dow up as much as 100 points but trading light. the federal budget deficit this year is the lowest by far since president obama took office. the cbo said the deficit is said to fall to $514 billion thanks to higher tax revenue, rebounding economy, and spending cut. the group also sees the deficit worsening by $100 billion a year because the slower economic growth than originally predicted. microsoft has finally put the rumor to rest naming the ceo. has been at the company for 22 years most recently leading the company's cloud computing offer. the 46-year-old replaces steve and becomes the only third leader in microsoft 38-year history. good news for jk penny. the store is reporting a 3% rise in sales during the critical holiday shopping season. it was the first time since 2011 the struggling department store chain posted a big increase. the stock plunged to an all-time

low despite the good report. those are some of the hot stories right now on foxbusiness.com. coming up next, the warnings starting to come true as some airlines are already reporting a pilot shortage. what it means the next time you fly after the break. so i can reach ally bank 24/7, but there are no branches? 24/7. i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do.. drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally.

anbe a name and not a number?r scotade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and readyo help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: ranked highest in investor satisfactio with self-directed services by j.d. power and associates. gerri: flyers are getting crammed and squished into airplanes. but there's one seat that might be empty. the warnings of an airline harlech shortage arrived but maybe it is too late. our ceo joins me with what this means for you. it's great to see you. and we heard this was coming and

we knew all about i've heard that we thought it was way in the future. what happened? >> it has happened a couple of times. we had a shortage in 2000 and then we had 9/11. that caused a pilot shortage. we also had 12,007. again, no pilot shortages. the bottom line is that airlines are starting to grow back again. they are a little bit healthier and they have merged. especially with these regional routes, two to four hours driving distance from airports. where the pilots make as little as $15 per hour. so even the air force today is having trouble getting them. that is what we need is another top gun movie to get people flying. gerri: that is one way to do it. i understand that one airport cut cleveland as a hug. will we see more of these regional hubs? they rely upon these regional

airlines were the pilots are paid very little, if you decide. is that going to be happening more and more often? >> i think that well. what you will see with u.s. airways and american. places like phoenix and philadelphia. they are grandfather for two or three years and you're going to see that they've sort of thing happen. and the bottom line is that we saw this same thing happen in the oil industry in the '90s. everyone was retiring. will was at $10 per barrel. the 65-year-olds were retiring and no one was going to win all of those traits and now today we have tracking and so they were able to get on it pretty quickly. gerri: what one or the other cities that could be impacted and could go dark? >> welcome i think it will take a wild. we've got cleveland in salt lake city, for example. delta. minneapolis is another one that we have talked about. philadelphia and phoenix are on

the table as well. gerri: what can you do about it? i don't know how you make that happen. >> i think you pay the lower and individuals much more than $15 an hhur. they have also increased the training. the minimum number of hours is 250 and now it's up to. so they've also increased the training as well. so you're going to have to get other people involved with this and they will have to actually have schools and training schools and they will have to take people out of college and train them. it's going to be a vague effort. and i don't think that they believe that we will have a problem partly several years. gerri: i hear higher airfare coming out of that. so let's take a look at the cost of the polar vortex and the impact of all the storms that we saw and stranded travelers for

$2.5 billion of extra travel, running the car an extra day. is that number surprise you? >> i think it's fairly accurate. not only the 2.5 billion that we spend on the hotel but that we never made it on our trip. all of those canceled flights in january, one of those hotels that were purchased are basically prepaid hotel rooms. and hotels are required to put you up in these situations. gerri: i'm looking at the silly pictures and i'm reminded that we are going to get a heckuva stormont sunday. we already have cancellations today because of a snowstorm arriving tonight late tonight. and it can't be happening again. >> i have never seen anything like this i have never seen this

before. the cities are prepared for deicing, but the storms are crazy. consumers are crazy letdown so this was occurring during spring break. gerri: thank you for coming on. another big hit to homeowners. and it's more than just hurting your 401k. this is interesting stuff after the break you really love, at would you do?" ♪

[ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪ you make a great team. it's been that ways tsincthe day yomet. but your erectile dysfunction - you make a great team. it could be a question tof blood flow.met. cialis tadalafil for daily use helps you be ready anytime the moment's right. yoand the same mocialis is the inonly dailyity toed tablet. approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medication and ask if your heart is healthy enough for sexual activity. do not take alis if you take nitratefor chest pain, as this may causan unsafe dr in blood pressure. do not drink alcohol in excess with cialis. side effects may incde headache, upset stomach,

delayed backache or muscle ache. to avoid long-term injury, seek immiate medical hp for an erection lasting more than 4 hours. ior if you have any allergicase oreactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.

gerri: the global market a lot. have you heard the tax factor? here with more is the president of the counseling group. welcome to the show. the selloff in january, i started thinking that i wonder if the tax law changes have anything to do with it. >> yes, it is good to be here. and you have to think back 13 months. thirteen months ago the capital gains went from 15% to 23.8% for high earners. and investors sold in droves. huge volumes. the april of 2013 tax receipts skyrocketed based upon the final tax payments. during 2013 investors had

relatively fewer long-term gains to sell and they were locked into short-term gains in the tax rate on those was 43.4%. no one wants to pay that kind of a tax. gerri: no, that's true or not lassoing pressure in 2013 and the market goes through the roof and then you hit the beginning of january with a huge water from the summer of 2012. the long-term plummets. >> let me stop you there. as he will do what is going to happen in 2014, is there more effective seller by because of the tax laws? >> the only effective for short-term gains will convert the long-term and investors will

be more readily willing to sell. gerri: if the market goes down. >> that is is volatility. i mean, if the fundamentals they to buy, okay, they will buy. if they say to sell, they will be in a better position to sell. gerri: you know these tax policies, they don't really have any impact on the markets, that is what some say. what does that tell you? >> is happen in the mid-1980s under president reagan and we have tax reform in 1986 and so subtract three years before any discussion of tax reform takes place. investors took 310 billion or 1985. the tax reform is discussed in 1986 and it is calling for a 20 to 20% long-term capital gains

rate and they took $530 billion of the danes. these are current dollars. >> so we have seen it happen before and it just happened again. and we don't have the data now but we have what happened in the 80s. >> it's great to have you on the show. it's a fascinating look. really interesting. and you really prove your point that tax policy is driving the market here. thank you very much. >> thank you. gerri: i was saying for the rest of the year you're giving the government free money and many people rely on these annual tax. a national average refund topping for a hundred bucks in 2012. residents in some states get back even more from the irs and not list as tonight's top five. number five is new york. residents of the empire state got back an average of $3100 and

84% of new yorkers got something back. number four is new jersey. the average refund was around $3100 for 83% of residents. the number three is texas. more than 86% of residents got their own refund. and the average refund for nevadans was $200. and the highest tax refund state is connecticut. nearly 1.5 got back an average of $3200. so don't give uncle sam your money for nothing. still to come, my "two cents more." and a look at the expiring camp and what it means to the overall housing market coming up next.

try poligrip for partials. poligrip helps minimize stress which may damage supporting teeth by stabilizing your partial. care for your partial. help protect your natural teeth. if you have a buness idea, we have a personalized legal solution at's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reali. start your business day with legalzoom. op to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that crtes more jobs, and ows more businesses... we're open to it. start a tax-free business at startup-ny.com.

gerri: attention homeowners. a financial crisis coming to an end. what you need to know coming up next.

gerri: if you're one of the hundreds of thousands of homeowners who got a federal loan modification or a mortgage modification during the housing crash from ebay be surprised what your monthly payments may go right back up. we have greg mcbride here with details. so welcome back to the show. it's always good to see you, greg. you have been writing about this and it occurs to me that a lot of people are really going to get in trouble and may not be aware that.

>> back in 2009 at the depth of the housing crash, the government rolled out what is known as the home of affordable modification program. the idea that they were reducing interest rates on people's mortgages so that they could make the payments more affordable and stay in the home. the only problem is that when they said it was a permanent modification, it was not permanent. only for five years. and the clock has been taking in about five years is up. over the course of the next two years that you will see the modification and it will go up your money after question about that. so what have you? >> even when they said it was permanent, it was only in effect for five years. i've been talking about this for five years. and it was a program from the

outset was not designed to solve problems but is kicking the can down the road. call it that way and pray, it was nothing more than a temporary reprieve from higher payments and eventually those payments would start to work their way further. gerri: can these people actually afford a higher payments? >> in a lot of cases the answer will be no. the cases where these payments were reduced or because the homeowner is having trouble making the payments in the first place. what has happened since then? we have had stagnant income. a lot able will not be able to absorb higher payments. the payment increase is nothing to sneeze at. another hundred next year will go up next year and likely another 100 a year after that. will people be able to handle

that when their incomes haven't gone up? i don't think so. gerri: what is the impact on the housing market? we have already heard people say that prices on housing will show the rise. >> this certainly doesn't help. but let's put this back, the numbers are not big enough to derail the housing market. when you have the people that are defaulting, you're talking about less than 800,000 people supporting the subject of higher payments and that is going to be over eight period of years. so i don't see a systemic risk. but it's another one of those headwinds that leads to the forecast of appreciation and so forth. gerri: the one they call it making home affordable, interest rates increasing up to 4.5%. people seeing an increase. if you're one of those that got a little bit of help from uncles dam, you better start thinking about it.

they did so much for coming on the show. it's great to see you. >> thank you. gerri: we will be right back with my "two cents more" and the answer to the question of the day. a nine-year high, do you feel safer?

>> automaker is a calling about 22 million vehicles in 2013. the most in nine years, almost a decade. we asked the question and 35% said no. that's interesting. log onto gerriwillis.com for online question every weekday.

betty from minnesota writes that i believe that obamacare was intended to be a single-payer health care with all of the incompetent people within reach of obama. and fritz from idaho agrees. they're going to force us into this after they destroy the current system all the way. and obamacare well at destroy all and the insurance industry. and she says sorry, i wear a different size pants and my wife and she doesn't need help with her prostate. the government does not have the right to tell us which lightbulbs years. the government is too big and too many regulations already. i agree with you, kathy. and harold from north carolina a

great. obamacare, the irs, we will be a much better nation if power is given back. sending e-mail and go to gerriwillis.com. and finally you know that it is hard to know who your friends are the. the target cfo apologizing for the security breach today in front of the senate judiciary committee. a years worth of credit monitoring becomes extreme. you automatically give us the right to sue target and agree to resolve differences through arbitration. and you want to make me feel good about the situation. it's time to look a gift horse in the mouth.

how about you want to that next week or next month and not next year? that is my "two cents more". and coming up tomorrow, i sit down with the ceo of disney. that is at four "the willis report" tonight. we will see you tomorrow. ♪ ♪ lou: good evening, everyone. the white house tonight trying desperately in a congressional budget office report that will be eliminated by obamacare. also tonight another example of the know nothing strategy and colorado to maine, projections of the snowstorm is the beginning of what could be a