[closing bell ringing]. unless you're an oil trader, it is good news. the biggest one-day drop since november of 2012. >> that's right. we nearly saw exxon and chevron weighing on the dow jones industrial average today. that was one group that underperformed. but it was freight news for the transports because that moved to a new high, right? liz: transportation stocks rallied as oil fell. i find it absolutely fascinating that the dollar strengthened and gold plummeted. david: there were, when gold falls it affect the all commodities both oil and gold dropping like a stone. bells are ringing. denote the end of the session. nasdaq stands out as a winner in this section. we see nasdaq up about 17.9 points. russell 2000 also gaining. both the dow and s&p negative. not nearly as bad as it could have been. "after the bell" starts right now.

liz: so plummeting oil, stock market fighting to make a go of yet another record. we didn't see it for the s&p at least not as these numbers settle but let's get right to the market session. zack is reminding investors to offset perceived risk with international diversification will you. jonathan murray thinks this is time to really evaluate your portfolio allocations. he will show you how he is doing that. larry shover in the pits of cme. we pick larry first. the sexy story was nude photos but the real story on the floor was what axe you see it? >> story was no lack of drama, even though pretty pensive behind me, there was no lack of drama. we have a two-month rally in the u.s. dollar persisting. gold fumbling for $21 today. gold oil as you mentioned down

$3. wheat down 1 1/2%. all the while the stock market doesn't seem to care right now. very tentative. the last week 1/2 we have rallied 40 points. a lot of traders were caught flat-footed. i think all eyes are on the ecb. i think on the 4th and jobs report on friday. absolutely no lack of drama here. david: our sympathy goes out to the gold bugs, believe me, folks. we do feel your pain but jonathan, i want to talk about summer being over and time to sort of clear out what you sort of left on hold because we need, we need to relook at our portfolio. now that we've come into the fall, don't we? >> yeah, hi, david. this is new year's day for wall street. all traders and institutional buyers are back from the hamptons and nantucket and reevaluating their own balance sheets. their own portfolios. i think individual investors would be well-served to do that as well because, let's say your asset allocation model one right for you, calls for 50%

allocation to u.s. stocks. and no because over the past 52 beeks -- weeks that allocation is up 22%. you be closer to 60% in your allocation. sit with your advisor right now going into the fourth quarter, to make sure you do a little rebalancing in your portfolio. liz: say you're taking money out of equities jonathan, putting them where? what is your best advice. >> not into bonds. liz: stay away from bonds? >> stay away from bond in my opinion at least most bond. there are some interesting newer kind of bonds might make sense if you hire a really good fixed income specialist, strategic income funds, give you flexibility and maybe rising rate paper that is not going to be as subject to the dangers of rising interest rates but i still think that there is value. so peel money out of certain sectors in the market where the p-e's, price earnings ratios have gotten a little pricey.

maybe look for those sectors within the market that still represent some good value. david: zack, i want to get to you. if we do avoid bond, how do we offset the risk of a selloff. there is still, we don't know when, if, how bad the selloff will come. some people want to at least offset that risk partially in their portfolio. how do they do it? >> well, if you want to offset rick, use short-term, high quality, fixed income. you stay away from long bonds. stay away from high-yield bond because they have extremely high volatility and low return. so if, willing to accept that volatility, you actually own equities because they have the return of -- david: let me stop you there. if you're talking about short-term bond, you're talking about practically zero interest, aren't you? >> you're talking about low risk. not necessarily zero interest because those prices happen all day long. you look at, you know, a long-term expected return for short-term bond actually is about three to 5%.

that is what we're looking at here. david: that is not bad. >> not bad. liz: larry, hearing what these gentlemen are sayings, if you had a really good friend or your mom or grand father in front of you, larry, what do i do, darling what do you say to them? stay away from gold go into equities even at an older age? because at this point we know what the fed is going to do, while it is tapering it is not raising rates for at least a quarter you would think, right. isn't equities still the place to be? >> i do believe it is. even if my grandmother, grandfather if they were still alive you need to be in reduced equities than 25 or 30, 10 years to make it back. something we need to look at, maybe buying some of these vix type products, etfs on volatility. the vix products are trading 6 to 8 percentile. what it means volatility is

higher, 92, to 94% at the time than it is right now. i'm not suggesting volatility is going to go higher. perhaps it won't for a long time, however, if you want to best protect your portfolio in a negative way, with negative correlation, i think fixed products makes a whole lot of sense. david: jonathan, there are some folks out there fearing inflation. they think interest rates eventually will be going up as, even the fed has said they will be. they're getting into tips, these, inflation resistant bonds the government comes out with. you say that is a huge mistake to get into tips right now. why? >> well, there is some danger, david. i don't disagree we could be seeing a rise in inflation but i do think that many investors are unaware that tips, as an asset class, can behave very much like long-term bond which your other guest mentioned some of the risks owning long-term bonds. tips perform very much like a long-term bond. even though the performance

attribution has a componen side to -- side to cpi, enormously amount of that performance, 80% loafer the last year was correlated to the length of the maturity of the bond. so folks shouldn't necessarily just own tips, thinking that they're protect themselves settle against a rising rate environment because they won't be. liz: i'm so glad you just said that, jonathan because people have a, are misguided about certain things and they're also misguided about the fact thaw can't lose money on treasurys. yes, you can, when you adjust for certain things like inflation. >> that's right, liz. liz: you could lose money there. let me go back to zack at this point. you have three names here you like. easy chip, which is a semiconductor company and bank cosantander. can we start with bank cosantander, you're a bleach evy

that is. >> i have a thousand other companies i like. >> we made you pick three. >> they have diversification with the u.s. and higher than expected premium associated with them for owning them long term. david: guys, thank you very much. zack shepard, jonathan murray, larry shover see you in a cummins when s&p futures close. liz: sun sets on summer. david and i say, that was a great vacation, will it also set the market rally on fire, or dampen it? since 1886 september has historically been the worst month for stocks. if history repeats itself are you ready? we'll sell tell you how to reposition your portfolio for a potential decline this fall. david: talk about repositioning, detroit's historic bankruptcy trial gets underway today, with billions of dollars in the future of the city at stake. who will pay the most for the city's mistakes and what does it mean for bond all over the

country? a lot of munis out there. liz: apple suffering a hack attack that exposed celebrity nude photos. who is to blame for the breach? can a company really be aware of all of its flaws? we'll talk to an ethical hacker about what companies can do, should do, but aren't doing. most importantly, forget them. what can you do to protect yourself beyond, don't take nude photos? david: my nude photos are out there. been out there a long time. look at them, folks, enjoy. tell us what you think meanwhile. does apple bear any responsibility for the hacking? how about the people that took the nude photos in the first place? tweet us, @fbnatb. your answers coming up. ♪ [ male announcer ] once, there was a man

who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he notice that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ so the magic shell went back to being a...shell. get live squawks right in your trading platform with thinkorswim from td ameritrade.

then you'll know how uncomfortable it can be. [ crickets chirping ] but did you know that the lack of saliva can also lead to tooth decay and bad breath? [ exhales deeply ] [ male announcer ] well there is biotene. specially formulated with moisturizers and lubricants, biotene can provide soothing relief and it helps keep your mouth healthy, too. [ applause ] biotene -- for people who suffer from dry mouth.

liz: underarmor, you might have seen on, one of the leaders here posting gains after signing model gisele bunchen to a multiyear deal. david: i hope we have pictures. let's head to nicole petallides on floor of new york stock exchange with more about this. >> we talk about gisele bunchen's regularly, she complains it is feature over and over again in business.

however you can add another ka-ching to her bank account, signing with underarmor. a new campaign, called, i will what i want. you remember gisele bunchen was a volleyball player. she is notable famous model and the like. so on the same day that we're reporting that kevin durant is out, nba mvp decided to go with his original company nike. they tried to woo him for footwear, the other umbrella is women's active wear. in the campaign you can see gisele moving around in some women's athletic wear to demonstrate how great it is. that is when she is doing and signing on with underarmor. another contract for gisele and famous name for underarmor. back to you. >> i think boys and girls, men, women, would love to look at her in the underarmor outfits. thank you, nicole, very much. david: nicole, nicely tanned there. >> thank you.

david: s&p futures are meanwhile a minute away from closing. let's head back to larry shover in the pits of cme how is it shaping up tomorrow, larry? >> we are very flat-footed. traders and investors looking to ecb. will draghi be able to deliver? if he does deliver something so broad and dramatic as sovereign purchases will the market actually care? secondly, we have the jobs report. after the ism today, people are, starting to worry about a hot number. i mean, will the market get spooked if we have something way above 225 ads or five handle in the unemployment number or growth of wages above 2.1%? that is starting to worry traders. but that said we have had a significant run-up. most traders were caught flat-footed. a lot of us think the market does deserve a breather good news or bad news. david: okay. the seconds tick away to the end of s&p futures, thank you. david: larry shover. liz: thank you, larry. major indices may be near

all-time highs but september, you need to remember this, it is seasonally the worst month of the year for stocks. since 1886 the dow jones industrial average has fallen nearly 1% in september on average. that is the most of any month. so now may be a good time for investors to step back, watch the action instead of participating. while you're doing that, reevaluate investment allocation. david: joining us now, somebody who has been focusing on this, j.c. paretz, eagle bay founder and president, has best ways to reposition your portfolio heading into fall. jc, thanks for coming in. we had one of the strongest augusts in a long time. what does that mean for september? >> sure. david, remember we're talking about a strong august but we're coming off a weak july. the last six weeks of the summer was essentially flat. when you look at the dow jones industrial average, with added volatility. so a neutral position -- david: a lot of people were saying we had such a strong august. september is historically a bad

month, you say that definitely will be a bad month. you're not saying necessarily so? >> i think historically, yes. when the s&p makes few new all-time high that is negative. crash of '87 took place. 1929 as well, believe it or not. historically these are all bad signs. i don't think we're necessarily going into a bear market. obviously definitely not calling for a crash of any kind but i think maintaining that neutral position that we've been talking about are to the last couple of months is definitely advisable. at least the way we look at it. liz: everybody i hope you heard that. jc, who looks at charts and removes emotion, said he is not looking for a crash of any kind, you may have heard jonathan murray at top of the hour, reposition, stay away from things like long bonds. zack also agreed with him. what are you advising for people to fix up, spruce up, for fall their holiday portfolio, call it that as we spin it forward? >> i think again, it is important to figure out who you are as investor, what are your tame frames and risk parameters. for us to put new money to work

in the u.s. major averages up here makes zero sense from a risk/reward. liz: put money to work. >> i think individual equities, looking for individual names is the best bet. we sat here, three of us talking about jcpenney time and time again. it is up 20% since the last time i was on. we have i think another 10, 12% to go. that is one name i definitely like. the pairs trade another one i still like, equities neutral, where you are long one position and short equivalent amount of another. the long brazil, short germany trade continues to work. it is up 16% in the last six with the dow jones industrial average flat. so maintaining equities neutral position but direction alley positioned i think continues to be a good strategy. david: unpackage that for a second here. you're not, you're bullish on brazil. you're bearish on germany. what are the problems in germany you see right now? >> i like them specifically well e relative to one another. they both can go up and brazil

will outperform and they both can go down and i think brazil will outperform. these are pair, i want to reiterate. david: what makes you bearish on germany that makes you bullish on brazil. >> over the last several years since summer of 202007 have been on fire. the emerging markets, latin america didn't get the memo. they got destroyed during that exact same time. we saw momentum shifting this spring when brazil and "brics" and emerging markets making new lows. momentum was already picking up. we saw the opposite on upside in germany as germany was making new highs, momentum was rolling over. when you look at the pair that was perfect pair. i came on the show, i like the pair at 1.6. this is ew-z, brazil and ewg, germany. we're sitting 1.83. >> sorry, can i clarify? do you short the msci germany fund. >> long dollar brazil, you are short equivalent dollar in ewg.

that is million dollars. if it is $10. >> double euro short, drr, each time dollar moves up? >> i don't get fancy with leveraged etfs. there is lot of ways you can lose money. i try to stay away from that. i stay one-to-one ratios. keeps it cleaner. david: j.c. paretz, still bullish on jcpenney as well. >> hard not to be. david: heart attack on apple, that led to release of pictures of naked celebrities. who is to blame for the breach. we asked a white hat, ethical hacker, have you heard that term? he head as cyber firm. he has details on story. liz: nato wants to present a united front against russia in the ukraine crisis. could worsening tensions, and putin saying coy take kiev in two weeks if i wanted, does that already attack, even worse and hurt europe's economy? david: many thank you graduates

looking for their first job, we'll tell you which jobs pay college grads the least. ♪

sweater, extra sweater oh and this is the xfinity tv go app.

he can watch live tv from over 50 channels and xfinity on demand movies and shows wherever he wants. have fun, make some friends. alright? did i mention his neck pillow? (blowing) ♪ liz: time for a quick speed read of some of the day's other headlines. five stories, one minute. first up, former house majority leader eric cantor is joining wall street investment bank mole list company. he will be elected to its board. hairy and david is being bought for 143 million this is interesting dial. it will create a multioccasioned

gift retailer with more than one billion in annual sales. los angeles mayor eric garcetti proposes to gradually the raise the city's minimum wage to $13.25 an hour by 2017. currently it is standing at $9 an hour. it would make l.a.'s wage law highest in the nation does need city council approval. men outpace women in job gains. women occupy all jobs gained over past 12 months. that is down from halfall payroll additions this year. new experimental drug by november vatter its shows promise to treat heart failure. researchers say this drug would replace a bedrock treatment for heart failure for 20 years. that is today's "speed read." david in. david: detroit declared bankruptcy a year ago but only today begin the hearings work the federal judge will decide who pace most for the city's mistake. bond insurers, union pensioners or taxpayers. it could not only affect detroit

but entire muni market. with us in studio, city journal senior editor and senior fellow at the manhattan institute. and we have a partner for lead attorney for second cora, one of the bond insurers involved in the case. steve, to you, usually the person most to blame is supposed to pay the most for the problem. is that going to happen here? >> ultimately the people who most to blame aren't in power anymore in detroit. detroit had years of political dysfunction, including the election of kwame kilpatrick and re-election by voters of him, even though it was clear that the city's finances were spinning out of control. that is really, if you want to look at immediate cause of all this you have to wonder how did voters reelect this guy when you could see and even the newspapers were reporting on the what was happening. david: voters are to blame for putting in people that promised stuff they couldn't deliver, namely promises to pensioners

that were unreasonable, should they, should taxpayers themselves be the one to pay the price? >> here is the problem. part of the issue it is such a poor city right now, it doesn't really have a proper tax base to do that. you couldn't, you could not raise taxes enough to pay off the debt, simply or easily enough. now they're getting a lot of help, you know, from the state at this particular point. but, it is a very difficult situation. 50% of the street lights don't work in the city. david: let's go to james because the folks who insured the debt of this city are being asked to take a, to take a hit for all this and a lot of people, james, and you represent those insurers, at least part of then, they would say, hey, look, you guys, insurers made a bad bet therefore you should pay for that bet. you say what? >> what i say unfortunately bankruptcy it is true, that it is all about breaking promises but when that happens the city is supposed to repay creditors who are similarly situated on a

fair and similar basis. unfortunately what we have in this situation is we are recovering virtually nothing on our claim and number of other creditors including pensioners. david: james, forgive me for interrupting, wasn't the promise pain should being shared equally, wasn't that promise broken with the gm bankruptcy, in fact the gm bondholders got paid practically squat compared to what union pensioners received. >> i'm not sure that case is a good example for the largest municipal bankruptcy in history even though geographically similar. david: you get my point, that is the precedent in that case was broken, was it not? that people should share equally in the pain? >> well, that case has a lot of questions as to how creditors were dealt with in that case but you're right it is similar point, that we happen to all be unsecured creditors here, pensioners, my client, whose claim arises putting money into underfunded pension plans. all we're asking for is similar treatment.

unfortunately we're getting virtually zero when other creditors are recovering almost 100 cents to the dollar. david: for the audience out there with interest to detroit, if your clients lose, wouldn't that mean more expenses to all cities and munis who try to insure their debt? >> well i think so. the problem here when you say, didn't we know what we were getting into, we knew we were getting into something we thought if there ever was a bankruptcy we would be treated fairly. and if this is the way bondholders are going to be treated, or, financial creditors are going to be treated, obviously that is going to be taken into account in the future of cities that are in trouble, being either willing to lend to them or on terms and pricing of that debt. david: steve, you wrote a piece while back, message to investors, about what is happening to detroit. what is, when you take into account what james is saying and who he represents what is the message to investors here? >> you hit hit on the head when you said the press den have been broken and one of the main reasons that they have been broken, a lot of cities in

trouble now have is pensioners debt for retirees and there is a sense, and people have in the bond market have been warning that they somehow or another should be given precedent over other people who have essentially lent cities money. that means municipal investors have to understand they may not anymore be number one in line. and now, it is really bad for people who have already invested and their debts are out there and suddenly the world is being turned upside down but i'm telling you, that there's a lot of sympathy for pensioners and i would not be surprised in future bankruptcies if their claims are put senior to those of others. david: is there any sign, we have to wrap it really quick, is there any sign at all in the muni market that munis are in danger or more at risk because of what is happening to detroit. >> i don't think so. but i think people are going to be more unwilling to lend to cities that are in trouble. there was, in other words, detroit, borrowed money while it

was manifestly in trouble. it was sliding down for more than a deck kay. so i do think that people will be less willing to lend to those kind of cities. david: steve malanga, thank you very much. and james, thank you as well. appreciate you both being here. >> thank you. david: tomorrow on "money" with melissa francis, do not miss her interview with detroit mayor mike duggan. that is tomorrow 2:00 p.m. eastern time. it couldn't happen at a better time for all those worried about the muni market. liz, over to you. liz: indeed. hollywood starlets are worried, doing damage control after hackers stole more than 100 personal photos through their i cloud accounts. but is apple to blame for the breach in privacy? how safe is your icloud service? and does some of the fault remain in you? another atlantic city casino bites the dust. these are thousands of jobs that we're talking about, people. what was once america's playground, slowly becoming a city of folded cards as revel shuts its doors today with three

casinos standing empty that. could mean, what could it mean for the rest of the city's gambling business? we've got it for you live there next. (vo) rush hour around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours.

liz: well apple has hollywood in an uproar after more than 100 private nude celebrity photos were leaked. apple says it believes that targeted attack on user names,

passwords and security questions was responsible for this. david: so who is really to blame? how can you protect yourself online? joining us is dave kennedy, founder and ceo of security consulting firm, trusted sec. i hope i pronounced it right you. >> did. david: he is known as ethical hacker. a lot of people say is contradiction in terms but you are a hacker who actually tries to help companies avoid being hacked. first of all, a lot of people would say that, one group that should be not absent of blame are the people who took the selfies in the first place. you doesn't do that sort of thing, given the kind of environment we live n having said that apple it seven, some people are saying that they left some crack in the door open through which the hackers went s that true? >> yeah. from what it looks like use brute forcing, which tries hundred of thousands of combinations of passwords, to guess your password. you have something weak and guessable. the problem is that normally

websites have protection in place to stop brute forcing attacks. have you seen the little picture pops up and answer the name that is there? those are to protect brute forcing attacks that actually happen. looks like apple may have had a security flaw at this period of time that enabled them to brute force. liz: explain what that is. we had github on the air. they're a wikipedia for code being correct. >> that's right. >> what do you mean they up loading? what do they do. >> i have a whole lot of code on get hub. i'm a coder myself. we can up load source code people can at download. there are a lot of tools to stop brute forcing. hide draw is another. there are a lot of tools and techniques that hackers allow them to brute force the accounts and get passwords to log into the systems. liz: say i'm not interested in that end of it, and i just don't want to be hacked.

number one thing, people, don't put nude photos out there in the ether. that is stupidest thing in the world because someone will find a way to do it but what else beyond that can people do. >> aside from the pictures, if you're celebrity or executive after company, you are a target for hackers and they want to go after you. a couple things i highly recommend you do. first, no matter what site you use, icloud or gmail and yahoo!. keep separate passwords for each one. don't use the same password across the board. if i brute force one i have access to all your other ones. use complex passwords. when i say complex passwords. 10 to 12 characters at least. use a password vault that keeps all the passwords. use the storage so you don't remember it. don't use -- use complex passwords that can't be guessed. that is mostly important. david: say you do all that stuff, david, god bless you forgiving all those hints, won't hackers always find a little crack in the door through which they can squeeze? >> there are always little

cracks in the door that hackers can break into, that there is no question about that but you don't want to happen, google gets compromised and hacked, doesn't compromise banking, e baier, all the other sites. you keep it self-contained in one area so you don't have this ricocheting effect where it impacts multiple systems. hopefully minimize most of the damage as possible. right now in technology the hackers are winning right now. they're going after systems and corporations aren't, spending enough technology or time to pre-sent the attacks. liz: in 1987, there was a movie, no way out with gene hackman and kevin costner and the guy busted the password in about two seconds. >> maybe right now. david: which appreciate it for coming in. we appreciate the helpful hints. >> thank you very much. appreciate it. liz: we love to tell us what you think. does apple bear responsibility for hacking scandal? listen they had to do a patch certainly. send us a message. facebook.com/afterthebell. we really appreciate your

thoughts. david: you will hear that at the end of the show. the crisis in ukraine is at a potential turning point with the pro-russian forces on the move and ukrainian government troops playing defense right now. could any new sanctions against russia push europe into another recession? we find out what investors everywhere have to know. liz: action films could have a big influence on the way we snack. we've got the results of some new research that could explain some of our most unhealthy eating habits. oh, boy. could it be blamed on the movies we're choosing? ♪

musical chairs. fun, right? welllllllll, not when your travel rewards card makes it so hard to get a seat using your miles. that's their game. the flights you want are blacked out. or they ask for some ridiculous number of miles. honestly, it's time to switch to the venture card from capital one.

with venture, use your miles on any airline, any flight, any time. no blackout dates. and with every purchase, you'll earn unlimited double miles. from now on, no one's taking your seat away. what's in your wallet? david: college students who graduated with loans in 2012 owed an average of $30,000. now a new study said many are struggling to pay off that debt in their first year of full-time work pause of low pay. which jobs pay college grads the least at the beginning? coming in third place, yes what i do, folks, television announcing. the job pay as median salary of $29,000. these are starting salaries by the way. second lowest job is recreation industry. these workers earn about 22,000 bucks. the lowest, absolutely lowest paying jobs for college grads, legislative affairs. that can go up high too. in the beginning pays over

$20,000 a year. just over 20,000. liz: okay. but go for your passion. the money will follow. the european union is set to propose new sweeping sanctions on russia as pro-moscow rebels in ukraine advance of the sanctions expected to build upon measures taken in july to hit russia's, energy, defense and financial sectors. but will any of these new sanctions be enough to force russia to back off, get out of ukraine in joining me live from london, roubini global economics head of western europe. you're right there in the thick of it, watching this and i'm very interested to know right off the bat, more sanctions. do you think they will be the tipping point? at the moment it doesn't appear although there are certain things we can't see, doesn't appear the sanctions are at least pushing putin to back off. >> yes, good evening, from london. thank you for inviting me.

you're right the impression is exactly that. this is what sanctions tend to do. at times, they, manage to -- backing off but many other occasions counterparty actually digs in further and therefore kind of a vicious spiral of sanctions, counter sanctions and you never get anywhere. therefore, i mean, the only thing can probably do, to convince putin and russia to back off, something that prevents them from exporting the energy products, oil and gas. one of the problems with that -- liz: let me jump in here. i'm not one of the people who says sanctions aren't hearing because putin hasn't backed off. let me tell you what is workings, rose nest, a russian oil company, had to scrap a

$2 billion deal to do because it couldn't get money financed by western banks. they said forget, we're not interested in helping you at this point. you see rose nest nudging the russian government, need a $42 billion loan. call that a bailout. those are working. does it take long before the businesses turn to putin and cut out the charade and get the heck out of ukraine, it isn't really working for us? >> yeah, i mean you're right. that part of sanctions is working. you go also to the u.s. which involved in that. , which is part of the story. western europe can not cope by itself. you need serious u.s. involvement in the sanctions which we have just started to see. politicians, in states like russia, might not act completelyings a alley, in the short term. -- completely rationally in

short term. we heard about conversations between putin and angela merkel, the german chancellor, culminate in copments bit german officials saying that perhaps -- comments by the german officials saying that putin is living in a different world and kind of pursuing his own plans even if he knows that in the short term these plans are damaging his condition my. liz: we can say this. he is a liar because he already said we're not invading we're not there. yet he has a conversation with jose manuel barroso, who of course the president of the european commission and says, simply, i could take kiev in two weeks if i felt like it. and that has been confirmed by his own people that he said that, oh, this an inappropriate conversation. well, excuse me, to say you could take kiev in two weeks, you are living on a different planet. but he is not backing down. now the u.s. has said no military solvement.

why does every problem across the world have to involve our soldiers and our lives of our soldiers? but what then? how do we get him to back away from crimea which he already taken and the rest of ukraine? >> crimea is something that will need to be discussed at the certain moment because there has been annexation, however illegal it was. not recognized by the internatioal community. but is something that is not going to be disabled anytime soon. i think the key question there is, making sure the situation doesn't deteriorate further. the fact that we actually go, that go to the definition of the borders, especially in, in east ukraine. which could be defacto definition and, it will, but eventually, if the situation

deteriorates, and gets entrenched might lead to the creation of an eastern state in ukraine which is of course a solution that nobody really wants to. be sure that that, that doesn't happen. now as you said you use ad strong expression of being a liar, in my use of two different persons much the same day that poroshenko, seems that there was some problems in the talks. liz: all right. >> exactly on the same day they found soldiers within the ukrainian border. liz: of course. >> and therefore, i mean, is it very likely that on the one end it say something and on the other end it does something completely different. liz: thank you very much. head of western europe at roubini global economics, in

essence saying this is a very touchy situation, david. you look at putin. he is saying one thing an doing another. david: he is getting what he wants at least for the moment. let's hope it doesn't continue. western sanctions in russia have one airport taking retaliatory action, one russian airport against president barack obama and british prime minister david cameron. we'll tell you what they are saying when we go "off the desk." and atlantic city's gambling industry is turning out to be nothing more than a lot of lost bets. revel casino closing its doors today. is this the beginning of the end for the "boardwalk empire"? cheryl casone has more about this coming right up. we've never sold a house before.

(agent) i'll walk you guys through every step. there are a lot of buyers for a house like yours. (husband) that's good to know.

when your favorite food starts a fight fight back fast with tums. relief that neutralizes acid on contact... ...and goes to work in seconds. ♪ tum, tum tum tum tums! try great tasting tums chewy delights. yummy. having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom! you've had your first accident. now you have to make your first claim. so you talk to your insurance company and... boom! you're blindsided for a second time. they won't give you enough money to replace your brand new car. don't those people know you're already shaken up? liberty mutual's new car replacement will pay for the entire value of your car plus depreciation. call and for drivers with accident forgiveness,

liberty mutual won't raise your rates due to your first accident. switch to liberty mutual insurance and you could save up to $423 dollars. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance.

david: revel hotel and casino in atlantic city is closing its doors today for good just two years after being built for $2.4 billion. liz: what a waste. fox business's cheryl casone in atlantic city has more on what it now means for the city. >> we, i have to tell you they are calling this the $2.4 billion mistake. i mean forget "boardwalk empire." you're looking at boardwalk bankruptcy. since the beginning of 2014, there were 12 casinos. now there are just eight.

here's what's happening down here. you've got union shops that are running many of these casinos. that is one reason many residents say the casinos are not working here. you have got a lot of competition. we talk so much on fox business about capitalism. well, you've got pennsylvania, new york, foxwoods, mohegan sun. of course the online movement into gambling. all of that has been competing with atlantic city for years back in the '70s and '80s. double-digit percentages when it came to growth of its casinos and bidding an money that was flowing. all of that, really, guys, has dried up. it is very unfortunate. talk about the local economy, what is happening down here. before the bls can be calculated, looking 13% unemployment as a rate here in atlantic city. now 6,000 jobs will be lost because three of those four casinos closing. showboat closed on sunday. this morning, 6:00 a.m., eastern time, revel behind me, this

47-story hotel, now empty. that closed down. and then you've also got the trump casino. that will be closing officially on september 16th. as you both know mr. trump only has the name there and was trying to get that removed. this is bad news for the city of atlantic city. about $30 million annually flows into the budget from these three casinos. that is about 15% of the city's budget. how are they going to deal with that? we talked to one city official. there is proposal on the books for them to raise property taxes up to 29% for homeowners in atlantic city. very rough time. very beautiful day in atlantic city. unfortunately, liz and dave, a rough day for the economy and those trying to work and live in atlantic city. liz: exactly. david: we wish them the best. thank you, cheryl. liz: are you looking to lose weight? the results after new study it is not all about watching you eat but when you're watching and

you eight. we'll tell you tv content that makes viewers consume the most calories! work with equity experts who work with regional experts who work with portfolio management experts that's when expertise happens. mfs. because there is no expertise without collaboration. crestor lowered bad cholesterol in it's a fact. high-risk patients more than lipitor. bad cholesterol... you're going down! yeah! lowering cholesterol is a big deal, especially if you have high cholesterol plus any of these risk factors, because you could be at increased risk for plaque buildup in your arteries over time. so, when diet and exercise aren't enough to lower

cholesterol, adding crestor can help. i'm down with crestor! crestor is not right for everyone, like people with liver disease or women who are nursing, pregnant, or may become pregnant. tell your doctor about other medicines you're taking. call your doctor right away if you have muscle pain or weakness, feel unusually tired; have loss of appetite, upper belly pain, dark urine or yellowing of skin or eyes. these could be signs of rare but serious side effects. are you down with crestor!? ask your doctor if crestor could help you. if you can't afford your medication, astrazeneca may be able to help.

liz: let's go off the desk. are you watching your weight? a new study shows it is not what watching what you eat it is what you watt. american medical association says the amount of food people consume watching tv is determined by what type of content they watch. guess what, action flicks that make you very hungry. the study shows people watching action films nearly doubled amount of snacks. there was anxiety, attack, right? than those who watch talk shows. participants watch the action flick on mute, ate nearly a third more. david: if you want to lose weight, keep it here on fbn. we asked people with social media if you think apple bears any responsibility for the hacking scandal? lisa on facebook thinks their

cloud, their security laps their responsibility. liz: wayne says anything can be hacked eventually, even apple. david: cora says if you don't want your bare bottom out there, don't fake take the photos. liz: we're with cora. david: "willis report" next. gerry, another retailer hit with a data breach today. you're discussing that, right? gerri: home depot could face a data breach much bigger than the target customers experienced last year. also on the show, is big brother along for the ride when you get behind the wheel? we will have investigation. nude photos of some of hollywood's hottest stars found online. is your information safe on the cloud. clouds kick off september in the red. what are you expecting this month for your four owe condition k? our panel weighs in. the -- 401(k). "the willis report" starts right n