Skip to main content

tv   The Willis Report  FOX Business  June 29, 2014 4:00am-5:01am EDT

4:00 am
your plans and feedback. go enjoy your weekend. from all of us here coming righ. david: have a great weekend. gerri: hello, everybody, i'm wills wills. coming up on the "willis report," banks are on a credit card blitz and giving offers to people with less than stellar credit and that could mean big trouble for the rest of us. they call it glamping. we're hitting road with consumer reports and some of the sexiest sportscaster money can buy. "the willis report" where consumers is our business starts right now. if you noticed a lot more credit card offers -- ♪ gerri: general motors, the automaker claims no top executives knew about the defective is anything switch that resulted in at least 13
4:01 am
deaths but fresh documents from a congressional investigation they indicate at least one current vice president was made aware of the problem as early as 2005. a man who worked closely with ceo mary barra herself. we have the vice-chair of the house energy and commerce committee that uncovered evidence with us here tonight, congresswoman marcia blackburn, republican of tennessee, joins me right now. thanks for coming on the show. i have to tell you, that the information you made public last night a bombshell, really. talking about doug parks, currently the vice president of product programs for gm, knowing years ago, nearly a decade ago there was a problem with these ignition switches. tell us of his relationship with mary barra. how close are they? >> well it seems they are fairly close. he is one of her principle advisors and part of the leadership team. what we heard from miss berra, a couple times before us, she has
4:02 am
assemihe willed a leadership team. their senior leadership team. it advises her and, we were under the impression no one on that team knew or had known about this. so we're very disappointed that it indeed looks like there was. gerri, one of the things that troubles us the most, knowing, this is almost worse than a cover-up. people knew about the problem but nobody took responsibility for it. gerri: that has certainly been part of the conversation with the internal investigation document that came out. a lot of conversation about people not taking action on problems they knew existed but i have to ask the question directly. you bring up cover-up. you've been outspoken on this. does it beg credibility, does it beg conventional wisdom. that senior managers did not know about this at the time? you realize doug parks knew, eventually went on to run products, engineers knew,
4:03 am
strains creditability this would not have made it up to the top offices in gm? >> well that is exactly right. it goes back to the question that i asked her the first time they were with us. who all knew what and when did they know it. it troubles us. with the families who lost loved ones, who only suffered injury you only imagine what they are thinking. it gets to credibility. why did they do that? bailout for gm have anything to do with it on the back end? you also have to look at delphi. when you look at degiorgio and parks and the delphi team, who knew this was off specs and mary barra has still not answered that question. how much being off spending did they allow and consider being
4:04 am
acceptable -- off-speck. they knew this was off spec and used the ignition switch anyway and when they reconfigured it they did not change the part number. you do look at this and say my goodness there is cover-up or lack of responsibility or a, an attitude of dismissiveness about the entire issue and it is just incredibly upsetting. gerri: dismissive attitude or just incompetence which would be more concerning. you mentioned delphi, the company that made airbags that malfunctioned in this case. but there is also japanese company takata which is making airbags found to be defective too. many, many cars including the chevy cruze being recalled that have takata airbags. why? because they spray shrapnel all over the interior of a car when they go off under certain conditions. is there a bigger issue, underlying issue that goes beyond gm? >> our concern is you are the
4:05 am
airbag issue and 30,000 cruzs are going to be recalled. you have to look at what is their quality control and what is ability to make transparent within their own system, parts testing out to be defective? now because of the airbag issue and lawsuit filed against gm on the airbags, the takata, implement that was put in, you're going to see an entire investigation of this problem. as you said it space shrapnel because of one piece that ruptures. when the airbag deploys, you have shrapnel that goes through the airbag into the compartment. gerri: incredible. only happens under second quarter r certain circumstance. makes and models being orlando. ken feinberg, running victims
4:06 am
compensation fund reports out monday. what are you expecting? >> i'm not certain what we expect. we know there will be compensation fund. we don't know what the shape will be for that and what allowance for claims will be. i assure you we're awaiting that announcement on monday. gerri: congresswoman, thanks for helping us out tonight. >> thank you so much, gerri. gerri: if you noticed a lot more credit card offers in the mail lately. you're not alone. banks and credit card companies are on a campaign. volume of offers going to people with bad credit, it could be a cause for concern. for more on this, bankrate.com chief analyst, greg mcbride. good to have you here. here we are again, banks and credit card companies giving money to anybody that can fog a mirror, lowering standards. 39% increase in proportion of new subprime credit cards going out. is this a cause for concern? >> not yet.
4:07 am
but look, it could become that way. all conditions are kind of ripe for us repeating history. we have record low interest rates and everybody is reaching for yield. look, at this point, no, i'm not yet having flashbacks to 2006 and here's why. for how long have we heard this, i think almost tired mantra, credit is so tight, nobody can get a loan. for the economy to grow, credit has got to loosen. first of all i'm not sure that entirely true. but look, the fact is, this is what loosening credit looks like. when credit starts to loosen, it means borrowers that are less credit worthy suddenly have access or more access to credit than they did when credit was tight. the other thing, gerri, is, this is very normal in terms of the economic cycle. when the economy is in downturn and delinquencies and unemployment on the rise, banks rein in credit. when the copy is expanding or recovering, when unemployment is declining, when delinquencies and defaults are declining and
4:08 am
credit gets loosened and banks start to expand credit. that is where he are in the cycle. gerri: from your lips to god's ear, right? first quarter gdp was contraction of 2.9%. that doesn't look like expansion to me. many people out there are worried. consumers are holding tight to their wallets in most cases? what is consumers behavior towards credit and do people want to spend money right now. >> first of all i don't think people can spend money right now because incomes have been stagnant. without access to credit, that put a crimp on their ability to spend. look, i think that you know, with regard to the subprime cards being issued. market something not the same as getting approved. and you know, getting approved is, means getting the card in consumers hands. even then doesn't necessarily mean the consumer will use it. one substantive change in
4:09 am
consumer mentality since the recession of they have risk aversion toward credit cart debt. this is lot different than what we've seen over much -- gerri: yet consumers are paying down credit card more slowly, they did in the first quarter, than they did in the first quarter of last year. look, when you talk about giving, more credit to people who are subprime what you're talking about is giving more credit to people who score 660 as opposed to 850 which is perfect credit. it is a very big difference. what i wonder greg, will they make it up on the back of people with great credit scores? will they make it up by raising fees and interest rates for folks with good scores. >> not at this point, no. there is such intense competition for for the top-notch credit card quality consumer. that is why you see aggressive and attractive introductory offers on cards. things like frequent flyer miles or cash back, people hitting a
4:10 am
certain spending threshold because they have been competing tooth and nail for that. now you're starting to see credit loosen a i i will lit bit where they're looking to reallocate credit allocation toward riskier consumers. perfectly normal for this part of the cycle. i tell you where we start to lose sleep. where we have a arms race for the subprime consumer f credit lines get bigger, if interest rates get lower, that is when it is time to worry. gerri: i see it all coming. 0% offers. 20,000-dollar credit line. it could all be coming soon to your mailbox. greg, thanks for being with us. have a great weekend. >> thank you, gerri. gerri: still a lot more to come this hour. including your voice. your voice is important to us. that's why during the show we want you to facebook me or tweet me@gerri willis@fbn. or email me at gerriwillis.com. at the bottom of the hour i will read your comments. coming up at the government of the hour, white house
4:11 am
decision to automatically renew enrollment in obamacare. i'm getting a ride in the new corvette. take a look at this, honey. you will love this i have went to "consumer reports" to test it head-to-head with the new porsche 911. americans versus germans playing out on our show. what would you rather have, a corvette or a$
4:12 am
4:13 am
4:14 am
gerri: 2.9%, we talked about that number, you heard it, the disasterous gdp number. optimists blame the weather but few folks talked about how obamacare played a role. diana fuerth goth roth, head of the man hat institute economic center. how is it possible that obamacare played a role in the lousy report on gdp? >> well it is possible because people are spending more on their health insurance premiums than they have less to spend on everything else. so that is how it can help just redues spending on other kind of items. gerri: i have to tell you, it is very obvious the consumer under a lot of duress right now i
4:15 am
think. you have rising prices at grocery store. gas prices going up. electricity prices going up. you name it. now health care as well. even if you're not on obamacare, you're not getting a product from the federal government you're paying more for your health care. how can this be good for consumers. >> it is just terrible for consumers. plus they're being forced to buy provisions they don't even need. if you're a single man you have to buy a plan with maternity coverage and pediatric dental care. of course the plans are more expensive. gerri: well it is interesting, health care is contributor to gdp. makes things look better, not worse. this time around it is just the opposite. >> right. exactly. yes. yes. the plans that the administration has to reenroll people automatically are not going to help because some premiums might go down and others might to up and it really pays all consumers to check premiums before they reenroll in the fall. gerri: that is an interesting point of view because so many
4:16 am
folks said this is the best thing for consumers since sliced bread. you're saying there could be a potential downside because you may have a bigger hit to your wallet. how often do you think that will happen? is that a likely occurrence? >> people's circumstances change a lot. they might get married. they might get divorced. they might have children. there might be different plans that are best for them. these different plans are competing with each other. so the plans less expensive last year might not be less expensive next year. then plus it is important to get the subsidy information to healthcare.gov because if you haven't checked that box to say the irs can chair information with healthcare.gov they are going to end your subsidy on december thirty first so your premiums will really go up. gerri: i have a theory about this, this automatic reenrollment. they say it is all for the consumer. it is help to keep your policy in place. on the other hand, we've seen how well the obamacare website works. this may be one way of kind of disguising that fact.
4:17 am
do you agree? >> yes. because it will mean that fewer people will go on the website even if it is to their advantage. and that means they won't have the same problems as with websites crashing as they did before. what they need to do is allow more low-cost plans on the health care exchanges so that people have a choice of more low-cost plans such as just insurance for major events rather than prepaid routine care. gerri: well, that is exactly the opposite direction they're going in with obamacare. they don't want to do that. makes sense though, diana. thanks for coming on. have a great weekend. >> great to be with you. gerri: up next it is the food craze at moment. now a new lawsuit says the makers are lying. lying to consumers. we're on the case. and it is camping season. we're going camping in style. take a look, ah, is she cute? stay with us
4:18 am
4:19 am
i'm a teacher. let me tell you what i make... i make learning a privilege. not a chore. and frustration a tool. not an obstacle. i make working hard seem easy. and giving up impossible. i make an old subject feel like a fresh thought. and unconventional methods common. i'm a teacher. i make more.
4:20 am
4:21 am
gerri: two new york city men are suing yogurt giants faya and chibani for misleading consumers. the lawsuit claims that the greek yogurt they produce is not authentic and filled with sugar. do they have a case? let's ask our legal panel and we have nicole and bill. bill, i will start with you, i got to tell you, this is probably the silliest lawsuit i ever seen in my life. they're complaining that they don't understand how much sugar is in this. all you have to do is look at the label. how can you possibly say these people have a case? >> well, gerri, i have to disagree with you right out of the gate, okay. of the their label says it has certain amount of sugar. but if you look at product there
4:22 am
is big zero on the front, which seemed to indicate this is zero calorie situation such as in a diet drink et cetera. but when you really drill down they're talking about, evaporated sugars and they say it's a juice but really a sugar. the real problem here is that schools are purchasing this for children allegedly as substitutes for sugar an cookies and candy but has just as much sugar and that is a problem. one more aspect this is something that is verifiable. the consumer can't verify themselves. therefore just spinning it to sell a lot of yogurt. gerri: that's what they do, they sell yogurt, that's for darn sure. nestle fudge bars, 15 yams grams of sugar. the same amount as chobani. how do do you come down on this? are you pro or con the company. >> the lawsuit i think will be a big problem. i don't think the plaintiffs have a case because the label something clear and correct. on the other hand i think it is
4:23 am
terrible how much sugar is in these things. kids might as well have candy bar as opposed to yogurt. unfortunately parents are thinking its a healthy option whether it has as much sugar as a candy bar. gerri: the plaintiffs are saying this product isn't greek enough, really? not greek enough, croissants can't be made outside of france? you got ton kidding. >> this is not made in grease, obviously. there is a type of yogurt with greek strained yogurt or greek whipped yogurt. they're just saying this is greek. the real legs of the case have to do with the fact, selling it as a health product and it has got as much sugar as anything else on the market. that is unfair competition. it is more expensive. it's a billion dollar sale for this company and these other companies that are honest about it and not being deceptive i think are losing market share
4:24 am
which could result in lost profits, and lost jobs. everybody has to have a fair shot. i think that is not right. gerri: nicole, are they playing unfair here? >> i don't think they're being unfair. their product is labeled exactly as to what is inside of it. and if it is consumer that is deciding they want to pack their kid a candy bar for protein in their lunch i guess that is up to the consumer. i think it is an unfortunate choice but i don't think the company is doing anything illegal. gerri: you're complaining, bill, about this number on the front of the yogurt, zero%, 1%, 2%. >> that's correct. gerri: who in the heck thinks that is sugar? everybody knows that is about fat. >> no, that is not really true. they have these daily variables or daily requirements of certain things and in this tick car case it's a big zero and you can't read what is next to it. there is nothing next to it. again it has this health connotation with which it really doesn't have. this is bought by schools, given
4:25 am
to children, et cetera. the other reason i think the lawsuit has legs there, is certain amount of puffery, gerri, involved in these things you can say your product is this and product is that. that is really opinion. this is fact. this is measureable, specific quantities. the way they're packaging it and asserting quality is just not kosher for lack of a better term. gerri: no, it is not kosher, that is for darn sure. >> it is not. it is not. gerri: made me laugh out loud. i liked puffery. >> i didn't plan that but it came out that way. gerri: thank you, so much. nicole, bill, great job. thank you. >> thank you. >> thank you. gerri: now we want to hear from you. here's what some of you are tweeting me about our poll question tonight, which would you rather take on the road, a corvette or a portia? jim tweets, corvette or over porch. porsche. i bought the 9/11.
4:26 am
i don't take small cars on family road trips but when i do i prefer the corvette. that was my pick. up next the consumer guide to summer vacation. we have five outdoors. it is luxury camping, some call it glamping. like to explore your wilder side out in the wild. which is better the new corvette or the porsche 9/11? you see which i like. go to "consumer reports" to see what i liked. gas prices inching up again. here we go. we'll be right back.
4:27 am
4:28 am
4:29 am
gerri: when you hear the word camping and luxury not usually in the same the standings -- the same sentence and must abercrombie's specializes in
4:30 am
five stars are is a private jet excursions that needs any and nbd you need. joining us tonight is shawn johnson. we appreciate your time. start us off with your trips and how luxurious they are. tell us about the safari. >> if you go on safari with abercrombie and can you have the tent with proper betting egyptian initiates' and 10 to but others that take care of your needs. gerri: the butler for your tent? >> they will do everything from you for your laundry anything they wash your touch will be ironed including your underwear. here have of full on suite bathroom as well with a flush toilet a and a shower. gerri: how much does that
4:31 am
cost me? >> $70 per night to start. caller: to anything from a party of two through 100. gerri: that's it is very luxurious standing california a lot of tree houses how do you make it extra special? >> we work with a couple different tree houses. there simply hotel rooms elevated:still stand your level with the treetops. gerri: i also hear about what is in this country? >> it is in montana they have tents as well as cabins they are more into outdoor activities, kayaking, horseb ack riding.
4:32 am
gerri: that is more my speed. i think that i want to go there. talking about abercrombie and kent, luxury all the way taking it to the next level. what are you working on for next year? >> at the very top we just sold out to private jet trips 40 passengers on the 737 and 50 passengers on the other that goes around the world enabling you to get 2.eight '04 point to be to go nonstop and cannot change planes in the lap of luxury. from that perspective and $80,000 trip would cost about 1.1 million this -- if you tried are your own. gerri: thank you so much. , if we're not in and the 1%
4:33 am
we have a guest from ll been from the online store that says all the a catalogs we will walk over to him right now. your all set up it is nice to see you i see your little daughter during the break. this looks sold more like what i expect to see in you are sitting on a cool chair. >> decamp recliner everything is about comfort camping and you can bring in from your household will bid on the ground is gone. it locks in place is very comfortable there and just put your feet of. >> you have mattresses in here? can i see this? i am too tall. you have a mattress that is self inflating. >> basically when it is
4:34 am
rolled up there are air nozzles this. >> and then you're off the ground with some comfort say were not sleeping on the ground. >> tell us about some other features of the tent. >> it is actually a pretty comfortable. >> they have been able to protecting it and actually hear you have the committee room if the bugs are bad or if it is raining in you have to keep the kids you have this. everything is set up with the most comfortable comfort camping. >> said everything is gone.
4:35 am
gerri: do have a lot of experience camping and it is what is the most important that they may forget? >> he will be gone for five days you need qualities so get a good brand name is important like l.l. bean. gerri: now we will go. come with me. we are cooking over here. we will be right back. take a look. hello. [laughter] we will be right back. candy apple red. it is the beautiful car integrates ride if you want to feel like us sports car driver, this is the
4:36 am
4:37 am
4:38 am
4:39 am
gerri: are you a the campsite chef we have some recipes that are delicious and easy to make. we have executive chef, ed chow, she says your new name. you of how best to cook. >> we will help you cook while camping. >> you don't have anything fancy to cook with. >> you have a of a couple of love additions is the trout fish tacos and corn on the cob. >> issues crawled with chipolte and wind. >> fish tacos on the of grow the most important thing is tinfoil. make up pocket with the fish
4:40 am
and the assaults -- salt. gerri: i like that idea. stick get on the grill. senate now it is cooking and did take a fork and do this. >> that's easy? just put it on a and roll it up. easy as that. gerri: i should try that to
4:41 am
see if you knodoing. >> ice think i am albright. >> ways also pledged avocado half the restaurant. next we will talk about korn. now you just brush that. look at that. is the touch of manas and put it in a blender. >> immediately? >> on the grill. until reduced see just a little bit of char. then of little bit of garnished. >> with some cheese. gerri: this is like a mexican cheese cement plants
4:42 am
to little love this then that is it. gerri: beautiful. can i find cilantro in the park? [laughter] >> a couple of the other thing is is made like to add flavor. so we have a of relish type of client image for the hot dogs. gerri: i think you're crazy. a hot dog? how was this man is different? >> do small to vinegar based >> there is the special sauce to this planet on to the of hotdogs i cannot give you the recipe. it is a secret ingredient.
4:43 am
now it is not your average high dog. >> began last have dessert. what is the classic? >> smores. >> a marshmallow with a taco bar and a gramm cracker. but to make it different we take sweden condensed milk it turns into caramels. how. >> as chief you definitely want to mess. >> on the way. cheers for i cannot believe that i am doing this on television. great job. >>. caller: something to drink? and i guess we will visit someone i will shake your hand but i am covered.
4:44 am
>> way will make a margarita so we have to a different horseradishes they knew have orange stick your about 1 ounce. gerri: that is wonderful and the fresh lemon. and the touch of foreign shoes to sweeten it up. >> not too much. >> how do we stir that? >> we will shake it and horse radish simple syrup there you go.
4:45 am
gerri: title think i can drink less on cable television. >> i will drink of for years >> date you. also of to albert am thinking for providing the of grill for cooking the food for home depot and taking a ride in the new corvette about to overtake the german favorite hitting the road to the editor in chief for the best road trip to take this summer. to take this summer. stay with us. ♪
4:46 am
♪ ♪ ♪ ♪ our planet together our hands can save it connect your hands with ours and we can save our land, our water, our future. join us at nature.org the nature conservancy protecting nature, preserving life
4:47 am
4:48 am
of. gerri: brazil was not the
4:49 am
only plays the americans faced off. it hadn't in yonkers we went to "consumer reports" where they would test the new west corvettes against the newest portion -- porsche. gerri: sometimes i just have to try the product myself. >> it is very clear which is which. >> i think this is my car. >> the parts of that is the radically improved interior with the performance but it was not quite up to the price or competitors but now b.c. they put forth the bold effort. >> "consumer reports" tested the corvette up against the
4:50 am
porsche 911. it has just turned 50 but it every ready look to this could with middle-aged plastic surgeons would commit suicide. >> redesigned 911 but the latest version and a car that has evolved over the last 50 years and is the benchmark. a luxurious sports car and one to aspire choose. >> according to consumer reports at a small advantage 95 points over 92 for the corvette. the previous version is the only true sports car technology takes the sting out of this state right. >> i have seen this. what is that? >> and elevating the system gm has used including us to
4:51 am
be a loving the shops to react dynamically to conditions. and then react with a pothole or a bump in the road you can dial it is in. gerri: but getting in is one thing by getting out is different. stand by. extrication. jaws of life. >> that is the reality of the sports car. for the styling and the low road hugging stance. >> david of him more points that was tested more than monitor $10,000 the little red corvette cave in at 73 grant -- 73,000. >> zero up at 60 in 4.three seconds and still time to vote.
4:52 am
which would you rather take on the road trip? tough choices. going back to vacations to open the car the great american road trip is of rights of passage. here with the top '05 best drives across the country. our viewers love road trip san talk about driving all the time. why is that so special? >> the great american pastime. i know that i grew up on a road trip the old smith family bonding moment. >> are we there yet? >> also a cheap easy way to a family vacation. you can save a lot people talk about rising gas prices but we have figured out the system gas buddy.com you put
4:53 am
in your routes and shows the cheapest places on your trip gerri: we bisho that all the time. >> also to find out the tolls but with your favorite road trips there are iconic trips that people will love to hear. tell us about your drive. >> it is amazing. go across the country and you can hit everything like the great to brawl -- great ball of string is in the reaction of americans. gerri: and the of pacific coast highway. >> and it is dangerous
4:54 am
you're so busy looking at the scenery spin again there are no guardrails and there can be vertical drops. >> up by monterey if there is a crazy beautiful. so but i would do is drive the person with you to drive so you can see. [laughter] gerri: highway 50? >> in nebraska the call bill lowliest road but i love it because it has small towns during the summer it is cowboys central you can receive full americana. gerri: i should have said nevada. absolutely beautiful spin it that people forget how beautiful of these states are. >> gander a great way to say something. thank you for coming we will
4:55 am
have to take a road trip in ohio. will be back with the answer to the question of the day. which
4:56 am
4:57 am
4:58 am
♪ gerri: it might be able to take of their rig lows after all. the state is expected to repeal a law that means people handling food must where rubber gloves. the change comes after a backlash from bartenders and others in the food business and even some consumers. one san francisco cafe owner estimated he would go through 50,000 gloves a year. and local bar owners said the rule would cost nearly a hundred thousand. the idea behind the original law was to cut down by the spread of food borne illnesses.
4:59 am
but to the food industry said the best ready keep the food save was to keep hands and utensils properly washed. rubber gloves will spread to a stop the spread of germs. as one lawmaker said, the law did not exactly fit like a glove and finally tonight, just reminder, monday all eyes will be on ken feinberg administering gm victim compensation. he also administer the $20 billion fund for bp in the wake of the gulf of mexico oil spill and handle the $7 billion fund for victims of september september 11th. we will cover the story in depth as we watched the unfolding of what has been the biggest consumer story of the year. we are on top zero of the news that impact your wallet. that's my "2 cents more." on -- that's it for tonight at "the willis report". of for its record to show if you cannot catch us live. have a great nine and a terrific weekend. ♪
5:00 am
neil: a waste of time. a waste of time. >> what we need to do is the funnest executive branch number one. [talking over each other] >> come on. neil: the most youtube event of the week. and i'm still hearing the rumble. forget those who think i am cruel. one individual says you're an arrogant chauvinist

81 Views

info Stream Only

Uploaded by TV Archive on