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tv   MONEY With Melissa Francis  FOX Business  February 5, 2014 5:00pm-6:01pm EST

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of a new miami soccer team slated to play in 2016. david: i guess he is good-looking. by the way green mountain is still halted and twitter still down after-hours. liz: have to watch fox business. meantime watch "money" with melissa francis. melissa: federal workers suing the government over the shut down last october. close to 2,000 of those essential employees seeking damages from uncle sam and you're about to hear from one of them, a corrections officer right now. even when they say it's not, it is always about money. tonighteer starting with suing the federal government. yes, that non-shutdown shutdown was months ago. the but fallout continues for many essential employees who were kept working through the 16-day period. the shutdown caused regularly
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scheduled paychecks to be delayed. while they waited for congress to kiss and makeup, some say they suffered severe economic hardship. close to 2,000 employees are suing the federal government. including jeff robertson. he joins me from forest city federal corrections institute. thanks for joining us. tell us why you joined this lawsuit? >> well, ma'am, when the shutdown occurred we were viewed bit agency as a essential. and our contention is that when you're assigned as an essential employee, and we get that, there should be contingencies put in place so these, this issue is dealt with. the thursday before the shutdown in my department, i was told that, a, we're all exempt. don't worry about it. we're going on as normal. the following monday everybody was told they have to report to work. if you're off, you're considered awol. compulsory work in essence. melissa: jeff, obviously you're
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an essential worker. you work at a corrections facilities. not like inmates are left to their own devices while the government works out its own problems. i understand your hardship came when you did not receive your paycheck. how long was it delayed and what hardship did that cause you? i mean did you miss payments? what happened as a result of this because i'm trying to drill down what your damages would be. >> well, when this happened, myself and other employees, we had to contact creditors and ask for payments to be either deferred, put back, leniency from the utility companies, car companies, et cetera, et cetera. in fact we did some letters and i contacted local creditors to see if they would work with staff here upon showing their identification card. a lot of them did but what happened is, those payments get deferred. if you have a mortgage payment that is kicked back, the interest still accrues over the next 150 years or however it gets to get paid off -- 15 years. one employee in south carolina
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had a transplant operations. had very, very expensive medications. his children had some issues. they have to have a family meeting to determine which medicine is more necessary. these are not folks that are asking for something for nothing and not going to work. these people get up every day and go to work and do their job. melissa: right. >> we have 4,000 inmates here. melissa: yeah. >> that our job is to keep society safe. we keep them out of your malls and your schools. melissa: no, absolutely. and we certainly, we all appreciate that work very much. i'm just trying in a legal case they're going to say, well, it was tough you didn't get your paycheck for two weeks, tough present what your damages are financially in order to be reimbursed and you know if you're looking at, you know if you missed that payment, the additional interest being two weeks late or having your mortgage extended two weeks beyond what the life of it would have been is not a big amount of money. i understand what you guys are asking for is basically double your pay for that period. how did you come up with that
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number? >> i didn't. first of all, very clear. i'm not an attorney but from what i understand from the attorneys handling this, that the department of justice, the irs and all these government offices and important folks have told states that if you're having budgetary issues or can't agree on a budget, regardless of those, above and beyond those, you're required to pay workers on time, what they worked and including differential and overtime for the hours they worked. and i believe the attorneys are under the impression that the federal government would not be exempt to their own advice they told the states. like i said, when the agency knew this was going to happen, there should have been hold-backs so these folks did not have to worry about walking a range and worry about paying their bills at the same time. melissa: absolutely. i understand you're one of the original five plaintiffs in this lawsuit. did it get started? whose idea was it? >> actually i contacted the attorney's office to ask them is there anything we can do about recouping some of the lost fees,
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some of the credit card debt that people had to incur on co-pays for health care, this, that and the other. they started looking into it. they got back with me, said they think what happened is wrong and they're trying to right it. another big deal with this, it may not be over. this can happen again and regardless, if congress has its difference, i get that, i respect that but, there is fallout and there is responsibility to that debate. here it is not a think tank. it's real. melissa: no, absolutely. jeff you were expected to go to okay every day in the meantime while they sorted this out. we appreciate the work you do. jeff, thanks for coming on. >> thank you, ma'am. melissa: let's get a legal perspective down from attorney dan schorr. he is the associate managing director at kroll advisory solutions. does he have a case, what do you think? >> they may have a very technical case because the fair labor standards act is supposed to protect exploited workers from employers. it has never been applied to the
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federal government in situation like this. in past shutdowns no one brought a claim. a technical reading of the law allows a suit like this. if they're successful it will cost the taxpayers a lot of money. you have to feel for him. he has a very tough job and dealing with budgetary problems of not having a paycheck. melissa: he does absolutely. not like he lost money all together. he went to work. they were fighting. they got money later. goes back to that thing i understand these folks don't make a lot of money and many are living paycheck to paycheck and cause as hardship but it is two weeks. >> i don't think you will ever see them get what they're asking for the amount of pay that was delayed, that amount again. that would be over a billion dollars or more. the fact there are 1.3 million workers who could bely join the class, that means the federal government is facing a big fund to pay these workers. you will see some kind of a settlement if anything. this law has never been applied in this kind of a case. so it will be interesting to see if it is successful.
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melissa: it is my understanding, i'm not a lawyer, it was a law desired to protect exploited workers to have somebody work and work for you with the idea you would pay them at some point and not pay them. that is the technical reading. only 2,000 people signed up so far which is a huge number but 1.3 million workers were affected. ostensibly this could be enormous bill paid by me and you and all taxpayers out there, right? >> you can expect a lot more workers to sign on. they are trying to get a class-action suit and send forms to 1.3 million workers and all they feel out a two-page form with little or no cost to join this. there is no reason on their end not to join it. you will see the numbers swell fairly quickly. melissa: what is your prediction on this? will there be a settlement. >> there will be a settlement to give the workers something but i don't think they will prevail what they're asking for which is high amount.
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they had to deal with difficulty when the pay was delayed. melissa: what would make the government rethink doing this again? what would make a point, do you think. >> the federal government is concerned about this they will have to pay cost of defending or settlement or even a settlement and a judgment. there are so many consequences to the shutdown that were not thought about at the time. you may say the federal government change the law to say it ex-is italy doesn't apply to federal workers if the suit is successful or hopefully there will not be a government shutdown. melissa: is there another lawsuit awaiting in the wings? is there another aggrieved group of individuals that you can see? >> there is not another group but 1.3 million workers could fit into this class. that will be exorbitant amount of money. melissa: dan, thank you very much. >> thank you. melissa: what would you pay for good posture? a new device promises to vibrate every same you slouch? love it or hate it? consumers are zapping up thousands of preorders for the lumo lift.
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the cofounder joins us ahead. up next, more health care hell on the horizon. a non-partisan report shows that millions of jobs are on the line and it is all because of obamacare. the white house denies it. former congressional budget officer director doug holtz-eakin breaking it all down for us. america's number one drugstore says no to selling cigarettes alongside medicine. e-cig makers are grinning from ear to ear and we've got one here. more "money" coming up. or retirement. but when we sta worrying about tomorrow, we miss out on what matters today. ♪ at axa, we offer advice and help you break down your retirement goals into small, manageable steps. ecause when you plan for tomorrow, it helps you live for today.
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melissa: so you can't keep your plan but now your job may even be at risk. the congressional budget office releasing a bombshell report saying obamacare will cost the equivalent 2.5 million jobs over the next decade. who better to break down the numbers than former cbo director doug holtz-eakin. he joins us now. thanks so much for joining usings doug. break this down for me. we're talking about 2 1/2 million workers by 2014. what do they say is the cause of that? >> if you look inside the affordable care act, obamacare,
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there are some hidden taxes on the low-wage recipients of the subsidies. essentially, if you, if you're getting subsidies and go to work some more, if you earn a dollar, we take away some of your subsidies. if it was 50 cents you only net 50 cents. that is like 50% tax rate. bit into this are real disincentive for people to work. the up shot 2.5 million jobs will be driven out of the economy by taxes hidden in obamacare. melissa: so do you believe as economist that this is real math? this is the way people behave? they will look at dollars and choose not to work because, you know, basically, isn't paying? >> i think it is utterly unsurprising if you have a program that pays over a trillion dollars to people whether they work or not, and finances it with higher taxes elsewhere in the economy and some expensive regulation that is it will harm jobs. so all the cbo really has done work through the arithmetic on it to find out how big it is. this is an utterly unsurprising finding.
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>> it is interesting because it is the cbo. they're unbiased, supposed to be out there doing math and reporting, crunching numbers on what policy actually means. >> yes. melissa: the white house fired back and they said, so you know this is not a big deal because it means that folks won't take a job just so that they can have health care. look, i'm sure if we didn't have medicare and didn't have social security that there would be 95-year-olds out there who choose to go to work because they have to. what, you're chuckling. >> so, here's the geek issue underneath the political fight. what the cbo is saying when you get to 2024, we're back at full employment, supply equals demand that we lose 2.5 million jobs on the supply side. what the white house is saying people have chosen not to work, what's the big deal? if we lose them on supply side which and they're on demand side which means we made it too expensive for employers to hire people and break even. so we killed 2.5 million jobs. both are correct.
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what the white e white house is saying we killed 2.5 million jobs but we think it's a good thing for america. melissa: i feel like i don't hear, i can't imagine them saying that. i just, i don't see that coming out of their mouths. you know, the truth is that we've all known people, certainly knew somebody with a job at starbucks. worked one shift a week basically so have access to the health care plan. it was only place they could get health care. had another job somewhere else liked better but paid better and didn't have benefits. if we lose that person having a job at starbucks, is that really a big deal to the economy? >> what the cbo is saying we've lost the equivalent of 2.5 million full-time jobs. it will come in part-time jobs. it will come in hours worked. it will come in some people quitting entirely but those 2.5 million jobs are gone. the wages that those people would earn are gone and taxes they would pay are gone. the economy is smaller as a result. as i said before the white house is saying look they chose not to do it but they must like it and we have to respect that you
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can't fudge the math. economy is smaller and aca is hurting economic growth. that is what is going on here. melissa: this doesn't even touch on jobs and hours cut because employers are spending money on health care so they have less dollars to then go ahead and spend on wagings? >> there are so many impact that is we have yet to see. the benefit mandates are going to cut into wages. the fact that employers have a mandate will move some people to part-time work instead of full-time work. small businesses are not trying to go over 50 employees so they don't run into the mandate this is highly disruptive piece of economic policy and i think that is one of the reasons people complain bit. the administration claims they care about jobs but then they went off and they did this. this is not pro-jobs. melissa: i'm trying to argue the other side of the equation. is there a way you could argue they're better off in terms of total income, but they may not have wages from starbucks but they have the health care? in a lot of ways when you calculate income and value that counts? >> you know as economist i
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respect people's choices. if they choose not to work they give up the wages, they have these benefits, they must think they're better off. so in terms of are people in better place, the answer is yes but in terms of the arithmetic how the big the economy is, it is smaller, no question about it. melissa: thank you for crunching the numbers. i love that. >> my pleasure. melissa: up next, cvs no longer what the flavor is. it is stubbing out cigarette sales to tune of $2 billion. one group not complaining, e-cigarette makers. we'll talk to star fire zigs on how they stand to benefit. to make up for the hat attack, target is spending 100 million bucks to keep your data safe. we'll tell you if the retailers learned anything from the massive breaches though. do you eve money? [ male announcer ] e new new york open.
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>> tobacco products have no place in a setting where health care is delivered. and when we asked ourselves where we expect to be in the future as a health care company, it became clear that removing tobacco products from our stores is the right thing to do. melissa: it is the big money business story today that everyone is talking about. that was the ceo of cvs, larry murder low, announcing all -- merlot, cvs stores will stop selling tobacco products, gone. joining me to cover all the angles is the ceo of star fire 6:00, and the cofounder of fax funds -- star fire 6:00.
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stefen, why do you think this is a boom for your business. >> it is good to be back. thanks for having me. i guess it's a case of supply and demand. i really applaud cvs's decision following in step with target and discontinuing making a decision to discontinue carrying tobacco products not just -- melissa: were are they selling your products instead? i didn't think yours was available at cvs? >> well if they are or if they're not i still applaud the decision. about six weeks ago i was at vcvs and getting a prescription and they had a long line for prescriptions and i was thinking to myself, here's a company that is selling drugs to help people but at the same time they also sell something that we know kills people. melissa: they also sell ring dings and ding adoption and diet pills and soda and beer. >> they do. melissa: all kinds of things. and they have everything in there. jonas, what do you think, will they ban ll the other stuff as well. >> no they are not. >> fritos? >> ring ding will keep you a
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live if you're starving to death. melissa: how about a diet pill? how about hydroxycut? >> half the drugs they prescribe, more people, oxycodone problems than they have with cigarettes. melissa: there you go. you're arguing the other side. there are so many dangerous things in that store. why is it just cigarettes?3 >> for the same reason you can't smoke on airplane anymore. it is being phased out. they're a health care company. they merged with a pharmacy benefit manager. health care is huge growth. that is why those stocks are doing better. cigarettes, it is in a 50 year decline. you don't want to take up shelf space. melisss: what makes me think you are not next? when you look in new york city they want to ban e-cigs. gotten cigarettes anywhere. impossible to smoke in new york. they want to ban e-cigs, because it is gateway and children see it happening and they decide they want to smoke. that you are giving birth to a whole new generation of smokers. so why do you think you're not going to be the next target then by these same folks? >> well, whether people get
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their nicotine from a patch or chewing gum, people have been smoking for hundreds of years. they will want to smoke, if you're going to do it, you might as well do it a smart way, use smart alternative, rather than carcinogen laden tobacco smoke and you could have water vapor with nicotine in it. it's a smart alternative. whether offered through cvs or is okay. it doesn't really matter because the demand still is going to be there. melissa: i think this is bad for stefen's business. because if there are fewer cigarettes out there and fewer people smoking, fewer people need to quit smoking. i think he is bark up the wrong mitre and bad for his business. >> a little element of beneficiary in the end. long term, you're criminalizing nicotine as a product. the more it is becoming socially unacceptable less likely there will be nicotine business whether vapor or whatever. they will make it a law where you can't sell any nicotine product where children shop and whole business -- melissa: what is your backup plan if this whole e-cig thing
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doesn't work out. >> you're too funny. first of all, my whole come from is health and nutrition this is smart alternative. i don't need a backup plan. my whole situation that people are going to want nicotine. and i'm, whether it is in the store or it is direct they're still going to want it. this is a smart alternative. cigarettes are not the way to go. melissa: like he is saying it is addictive and you can't kick the addiction. >> elements of truth. like saying when they phased out vending machines for cigarettes that helped 7-eleven or someplace that sells cigarettes with vending machine. but still a dying business. , probably helps cigarette merchants when you couldn't smoke on airplanes over two hour flights. >> speculate all you want. melissa: lyme looking for logic behind this. jonas, let me ask you, how do you feel about the stock? cvs stock traded way down. walgreen and rite aid traded up sharply as a result. they're giving up $2 billion in revenue without question, not to
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mention i never go into gain reed and cvs and never buy one thing. oh by the way i need toothpaste. i might as well get some bum on the way out. cigarettes made my breath smell. >> topol breath freshener. >> don't forget the ring ding. melissa: they're giving up huge revenue stream. i would think as shareholder i would not like this? >> they definitely are in the short run and airlines lost some travelers when smoking wasn't allowed and it was regulation. northwest was early though it wasn't a regulation when they banned it. they lost some travelers that liked to smoke. when you buy instant winning games, go to places like otb, like sketchy people playing it. want to buy some expensive product. doesn't put you in shopping mood. health care store, you drop $100 at duane reade. melissa: i do all the time. >> cigarette buyers, maybe having them out of the store helps sell other products because it looks like a healthy place to go waste money on other
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teeth whitener or whatever. maybe they want them out of the line. they're buying low margin cigarettes. melissa: in the line they're trying to sell me a hershey buy and bag of fritos and check out there is beer by the cash register. a thousand things are terrible. i mean -- >> no question there is contradiction here but playing grantly product counters their message much health care. melissa: jonas, thank you so much. stefen, you're a good sport. i know you're making a mint in that business. it is working for you. we appreciate night thanks for having me. melissa: up next, america in the dark ages. target dropping 100 million bucks on chip and pin technology that has been around for years, with billions in use worldwide. fraud already down by 70% in the u.k. alone. how did we fall so far behind on this one? tweet me and tell me what you think. are you on the chip and pin bandwagon? "who made money today?" better hide your pets. this guy is making some mammoth
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profits ever since the super bowl and we're for real with this one. stick around and see who we're talking about. pyles of morn any coming right up. what super poligrip does for me is it keeps thfood out.
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if we want to be ready for a longer retirement. ♪ the hack attack continues. day two of congressional hearings on capitol hill. executives from target and neiman-marcus app -- apologizing for the that breaches that millions of americans. they are "fox news" contributors. thank you for joining us. i want to start with target's cfo talking today about chip in pin. let's listen to what he had to say. nope. we're not going listen to what he has 0 say. >> other geographies around the world where chin and pin has been deployed. the fraud related to payment cards has come down doctor mayically. we have been supporters of the
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technology over a long period of time. melissa: adam, what do you any? is it the answer to hopes and prayers for safety? >> obviously it is an answer. most definitely it would represent progress, the company and industry is willing to spend the money. we should encourage them to do it. i support it 100%. there's no easy way here. the alternative is just to use cash or keep your cash urn your mattress. and credit cards are very convenient. >> melissa: absolutely. steve, is there a downside to chip and pin. is there tracking something we don't like? >> it make me a little bit nervous when you have the, you know, identifiers and the chips. but, look, i agree with adam. i think first of all, we should recognize this as kind of a public relations employ if nothing else. because, you know, look remember the tylenol crisis? they went to a kind of panic and dealt with it very well. i think this is something -- look, for target it's a big
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deal. they can use millions of customers if people the credit card is being breached. so this makes a lot of sense from a business point of view. when people ask is it worth $100 million. target thinks it is. melissa: i don't understand -- you know, that's true be you talk about tylenol. it was an all -- if the seal is broken you know it's been tampered with after at point of delivery. it doesn't protect you from the pills being tampered with in the factory. once it's sealed you can tell it is closed or not. i'm wondering what level of protection this really adds. because it seems like that helps a bit, but i don't know. is it as de-- as the seal ant? >> i would say it adds a good deal more protection. it's extremely decisive. because anything we suggest is going have a downside to it. it requires a pin code you have to supply four extra numbers for
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extra verification. it slows you down. customers wouldn't like it. merchants won't like it. it will provide more security. there is nothing that will be 100%. the same is true for pharmaceutical. you can't be positive something wasn't tampered with. >> i'm sort of surprised, melissa, the other credit cards companies like american express and view is as and mastercard haven't turned to the technology. they could be sabotaged jo like target. so i anticipate this is just the first domino thattis going to fall. other credit card companies have to follow suit. you are right. so you to punch in a few more numbers. people are terrified of identity theft, i think it's a price consumers are willing to pay. melissa: one of the bloggers that has been at the forefront talked about the fact they narrowed it down to an h-back
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company and outside contractor come to serve in basically the air-conditioning unit they think as of late this is where it started. that's really scary; right? >> i saw that. at first blush you think it is crazy. then you think about it deeper they want to control the climate in the stores and have thousand of stores. you have to give the people the access to control it remotely. i come back to the fact that, you know, one thick i would disagree with is target isn't in any danger of losing customers here. melissa: you don't think? >> competitors are using the same technology. what are they going do -- let's shop at target. melissa: i don't know. they seem like they're the ones even though neiman-marcus and as well lot of people affected. when you talk about it is always target. they're the ones on capitol hill. they seem to be burying the stigma. >> they're the leader, and, you know, it's their turn. it'll somebody else's turn next
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time the criminals want to go after something big. i don't -- this is terrible fo. it's no question. in the grand scheme i don't think customers will say i don't trust target. >> this is where the breach of security happened. you're exactly right all the companies are vulnerable to these kinds of attacks. but it happened at target. it's clear their security system broke down. that's one of the reasons, by the way, i think it's going happen you get the security measures at these other stores. melissa: thank you very much for joining us. >> thank you. up next. who let the dogs out in sochi? stray animals are one of the many, many complaints out of russia. journalists are pouring in. trust me, the horror stories are going shock you. "fox & friends" coanchor is giving us an update at the end of the day. and dark, murky tap water. oh.
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from the u.s.a. corner of the globe. money has been flying around the world. starting in central ya millions of mud will be dumped near the great barrier of reef. they want to create the biggest coal port. billions of dollars of comb projects. but the move angering environmentists. it willen danger one of the most fragile e ecosystem. it's likely to smother precious coral. government officials say it's worth the risk. extra revenue will help schools and hospitals. over the u.k. more and more working families are -- the average british household would last 11 days if they top lose their main source of income. wow. that time span is longer if you include retiree. it's only 26 days. they blame the ailing british
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economy. landing in china question netically modified monk agrees -- monoy -- monkeys from celts and replaces them with healthy ones. can work to lab researchers hope to give the monkeys a number of human illnesses. such as alzheimer's and parkinson. in the hope of finding a cure. one thing is certain the research will usher in a new era of genetic medicine for drug makers. out olympics games are starting in two days. the city of so chi didn't seem to be ready. streets are being paved, hotels under construction. and reporters on the ground say the accommodation are horrible. a lot of people wondering out loud if sochi is the wrong venue for an enormous undertaking. hear to weigh in sports
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enthusiast brian. thank you very much for hopping on the phone. it's a mess. >> caller: so far the russians point out and said 97 percent of our -- accommodations they are done. the three hotels and journalists are complaining been tweeting out and taking picture, you saw the pictures. they say don't use the water. don't h.r. -- they don't touch the water. melissa: you're talk abouting there was a tweet from stacy sin clare i think we have. my hotel has no water. if restored the front desk said do not use on your face because it contains something very dangerous. [laughter] >> caller: if you see it in a cup you don't want to use it on the face. my question is this, if all the places russia defines winter. all you think about that poll began and hitler getting struck in russia. it might be the country with the winter.
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they build the olympicses in the only tropical place because putin likes there. they had seven years to do it. there's $15 million in cost overturn. on top that have bill it as the most expensive ever. they're factoring in payoffs and -- melissa: right. and, i mean, we're talking about the water there are a lot of the things that seem particularly dangerous. sean white for example, said he's not participating in one of the event he was supposed to be in slope style. the -- he's not doing it. that's more the air. you can't see it brian. we see the hair. he's the guy who loves danger by virtue of the sport. he thinks this course is too dangerous. so he's not going to compete. >> incredible. that's a fearless guy that, you know, set the standard for brand new he pioneers. he's a risk taker by
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definition. look, what i feel bad about is the athletes. they train for very little money. they have -- few will be able to make a living. this is ultimately a sacrifice for at least four years. maybe even eight or twelve. they have moved away from their families in many cases. their one moment. it's their one moment to shine. if they have to worry about my family is okay. if they have to worry i hope the water is running. i hope the lights are on. i just worry they're not going to be able to have the best chance to be this successful. after the stunt, which look at the ioc and what they're doing to awarding these games. melissa, i mean, there has to be some sort of demonstration that both can be ready and also they are going to take the care necessary to get this done. i mean, they're talk about l the problem there are stray dogs everywhere. the latest headline i saw they were sending out people to euthanize the dogs that are out there out on the street.
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they're going to send out mob of people to kill dogs because there are stray dogs everywhere disrupting the olympics. on the most serious note, new polls saying 57% of americans believe there's going a terror attack on the olympics. so much is not up to snuff. it they can't keep the water clean and according to one tweet talk about the bare b careful where you go. there aren't manhole covers on the has been hole. you can't keep stray dogs away and you are falling in to a manhole you'rr probably not safe from terror. >> caller: right. of course the black widows who might have snuck in already. it's almost like a comic strip if it wasn't for the fact they become suicide bombers. >> yeah. >> this is absolutely bizarre. the only thing i like about this the world is seeing that putin is not overseeing the comeback of russia. they're seeing the terrible leader he is. and how unhappy the people of russia are.
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and how little ability he has to execute anything well. that's the one thing i like. he's been riding -- i feel most bad about the fact -- melissa: the athletes. >> it's going to be american and the athletes -- melissa: it's true. you talk about an athlete has a limited time span to compete and be at the peak condition. you luck in to the olympics in your lifetime. they come up in a country where they're not supporting your event. it's up to the ioc to make sure say that ward it to a country that able, willing, and fit host. do you think anything changes after this? >> caller: i hope so. i hope that the u.s. demands full exposure on awarding the games. brazil has them next and the world cup, which is just as big as an event. the whole world is watching. it you are a terrorist you want to strike the places to get maximum exposure. why is the world cup going to cutter they have the dessert in
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the summer. they have to move the whole event. america was waiting for these games. we're equipped to host the games. there's an antibias throughout the whole thing. we can pull it off and doesn't seem as though we're getting our -- melissa: do you get up early in the morning right now. the head shot you're smiley and chipper. i have a feeling you're in your pjs. i proficient you on the show. >> caller: thank you. i know, we usually get along but -- [inaudible] [laughter] put our problems aside. melissa: i love you. you know that. >> right back at you. look around the office and you'll spot a few slouchers. what if you can zap them to make them sit up straight. one device wants to do that. you won't believe how much public support it already has. stick around. we're testing it out right here on the set. sit up straight! you can never have too much money.
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melissa: it is time for a little fun with "spare change." this product is buzzing literally. it's all about proper posture. the company is raising big money for people willing to pay for the bad habit of slouching. the wearable device vibrates when it user is hunched over. andrew is the cofounder. he joins us now. somehow me how it works. i see you a button there. >> this is the sensor. >> right. what is hidden is the sensor that does all the biomechanical sensing here. you can put it here, and you can push the button to calibrate to turn it on and off. melissa: it's on? >> yes. melissa: how slouchy do you get? %-i have a if set at the minima.
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even if i get in a slouch like this i get a vibration. melissa: we've been torturing our floor manager throughout the show. it is it zapping you a lot? >> it is. like, if i sit back like this in the chair. melissa: not just slouching anything that is not proper posture. >> is it irritating? i was thinking it was like a taser. apparently it vibrates. >> it never really got annoying. you don't feel it on the shirt. melissa: is not annoying enough? could you get used to it? >> i couldn't wear it all day long. like he was saying in the break it's for people at the desk. something like that. i can see that, but walking around all day i would get annoyed. melissa: you don't think you would get used to it? >> maybe. melissa: i don't know. can you turn it up. is can you have it taser? >> you can't taser. at least right now. [laughter] you can change the intensity. you can make it a little bit lighter or stronger.
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melissa: how much are you selling them for? >> retail for $99. you can preorder for $69. melissa: i care about posture but $99 is a wig investment. you can buy the fit bit they're like -- would i spend $99 to sit up straighter? >> the thing about the device it tracks fitness as well. it counts your step, mileage, and calorie as well as helping with the biomechanics. melissa: how much people have bought it in the presale phase? >> i checked earlier this morning about 13,000. melissa: that's a lot. do you need get a certain amount in order go in to production? is it like fundraising? >> our goal to get orders for around 200,000. i think we are close a million now. melissa: a million. >> yes. in term of cash raised. >> revenue. what are your other ideas?
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are there other thing you're going to fix for. when they reach for a doughnut. are there other things? >> sure. there's a ton of stuff. and t not only -- melissa: like what? what should by worried about? >> i can't talk about the specific. melissa: give me a hint! >> the thing we f form. right. the biomechanics of form and movement. right. and so our goal is to help people improve their posture as well as move more. what we have done we focused on is the good posture when you're static. when you're moving it's a dynamic. when you're running, sitting, biking. melissa: what if i'm reaching for a new pail of high heels do. you zap me then? >> we can actually tell the difference when you're wearing different shoes. melissa: i have no doubt. all right. thank you very much, andrew. appreciate your time. good luck. who made money today. for crying out loud, this guy is getting all the attention since the super bowl. he's purring all the way to the
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bank. come on! you know who it is! you can never have too much money or fur balls. ♪
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melissa: whether it is on wall street or main street. who is made money today. anyone who owns walgreens. the drugstore surged on news that rival cv was quitting cigarettes. walgreens just sitting back and enjoying the view. shares entrepreneured nearly 3.5%. the ceo got pleased. he owns about 40,000 shares. he made around $840,000. thank you, cvs. the man behind the fierce and furry super bowl coat. cash han rolling in to mark coughman, the new york city ever since he sported one of the fox
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and coyote combos? orders are come in as far as dubai. p. diddy got one. of course he did. anyone interested have to save up. they don't come cheap. they start about $3,000. melissa: i'm going stick with the leopard. hoping to make a lot of money. david beckham launching the major league soccer franchise in miami complete with the own stadium privately funded. it follows a claw in the original u.s. sock are contract back in 2007 when gave him the option to create a new team for $25 million. he's excited. he said the team will eventually be loved by millions around the world. once it's up and running. only if bend it like beckham. for the money lovers, big news! starting on monday, we are moving, packing up the truck and going to 2:00 p.m. eastern time. you'll be able to get the fix of everything money even earlier.
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you can listen to the show on sirius xm radio. we'll see you back here tomorrow and monday at 2:00 p.m. "the willis report" is coming up next. hello, everybody. i'm gerri willis. tonight on "the willis report." congress turn up the heat on retailers. consumers' information be protected? >> we must ensure breach like this these don't become the new norm. the chairman and ceo of walt disney company is here. we're talking entertainment, earnings, and what he sees for the economy. and cvs shake up the retail world. put behind the decision to stop setting cigarettes. will others follow? we're watching out for you tonight on the willis -- "the willis report."

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