things president will meet them halfway. repealing obamacare on the whole is not happening. some measure of tracks reform is practical possibility. david: lower rates, less come pecsty. thank you, yes. >> let's get down at least to france's level. "the willis report" is next. gerri: hello, everybody, i'm gerri willis. voters sending a message and now middle class americans want to know if republicans got it? senaae republican leader mitch mcconnell voicing the thoughts running through a lot of folks minds over the last few years, washington is dysfunctional. he says it is time for lawmakers to get back to work. this as president obama tells those who voted for change, i hear you. here to way in. neil cavuto. well come back to the show. always good to have ou here. that coverage last night, spectacular. i am wondering what you think is going to be the first order of business? we have a meeting friday. a bipartisan meeting, congressional meeting with the president. what is on the agenda?

>> wealthy i they're going to say and do all the right things. you got a hint, gerri. president saying i want to work with mitch mcconnell. i want to work with john boehner. and they will. they will put out all the right signals et cetera, but you know they're not exactly on common ground on most big issues. so we might see some gimmes some here. we might see, keystone pipeline, something the president would sign off on. he might do something, you know, at the ends here on the health care law. some of its more controversial device tax. and rescinding it. but beyond that, they are really miles apart on big, big, environmental issues. gerri: absolutely,. >> big, big, corporate reform and tax reeorm issues. so you can't just sort of schwab that over after a midterm election. gerri: after listening to mcconnell and then the president today, they made all the right noises, right?

right. gerri: what they talked about their own priorities i didn't hear a lot of things in common. >> right. gerri: i heard mcconnell talk about energy, i heard him talk about the budget, tax reform, et cctera. then i heard the president talk about minimum wage. where is the common ground there? >> i heard the same thing, gerri, you're dead on right here. you're not going to make make the president overnight fall in love with fossil fuels. you're not going to make republicans start loving solar and wind. so that is a lot of hot air, no pun intended. then we come back to some of the areas where they do have some common ground wanting to address the onerous tax code and thing at that pushes a lot of businesses out or to reincorporate elsewhere or to hide money abroad. the president is all but disparaged companies being thieves for that sort of behavior. mitch mcconnell and in his remarks today was saying it is understandable given the high tax rates here. so they recognize the problem and in that case money is held

offshore bit trillions. but they're miles apart how to get it ack home. so you could hear talk about a carrot-and-stick approach where the president would require companies and to bring thht back home to give sort after tax holiday but they have to hire workersing something like that. but, you're right, i mean that is a lot easier said than done. talking in the aggregate how you cooperate and hold hands is very different than actually doing it. gerri: riggt. and one issue i think is critical that you and i talked about last night. that is middle class americans. we're all concerned,wer saw all the beautiful numbers the president has been trotting out for weeks now. gas prices at a low. gdp is littll bit higher here. the stock market on fire. and yet middle class americans saying i don't feel wealthy. i don't feel great here. >> right. gerri: so how is this republican senate and the president going to come together and help those folks make this economy move a little faster so we get job growth going, get real growth for this economy? >> well i think you're right on all of the above, gerri.

the fact of the matter is, you and i studied this over the years. very easy to get cocky in the moment. i always remind people with these huge seismic elections, if you think about it, this is the fourth time in the last 10 years we've seen souch a a shift in -- such a shift in the congress or white house that goes 110 degrees. two years ago, republicans were @onsidered all but dead. they failed to reach out. they couldn't get-out-the-vote and going by way of dodo bird. two years prior, republicans on a role and make barack obama one-termer. 20 years ago this month, bill clinton looked like one-termer and tried to justify his existence on post-newt gingrich takeover of3 the hoose. all of those incidents rrmind people that fame can be very, very fleeting. your time in the sun can burn out very, very quickly if you're not careful. i think many republicans certainly i talked to last night, i know you talked to many, saying we don't want to

invariably what you find out historically on left and right they do. i think they will try, really, really hard, to get some common ground ideas forward, approved, legislated but the onus is on the president when you think about it because up to now he had harry reid blocking a lot of stuff that went from the house and stopped at the senate. now all that stuff from the house is even crafted originally in the senate will go right to his desk. he has to go yea or nay. he could be mr. veto or mr. let's see how we go forward. we'll see. gerri: we'll see. neil, thank you so much for coming on tonight. >> thank you. gerri: great job last night. terrific coverage. >> i appreciate. that thank you very much. 8:00 tonight, a postelection election special. can a republican controlled congress finally energize the economy so middle class americans can feel it at home? joining me art laffer, former economic advisor for president ronald reagan. ryan tate, small business

expert, president of tate publishing. douglas holtz-eakin president of american act ahn sure rum joining us again tonight. thanks for you all be here. we've been talking about the numbers for weeks now. gdp recovering. the jobless rate looking a little better here. continuing to improve down to 5.9% and yet in the exit polls last night 70% of the people say that their own personal financial situation has gotten worse or only stayed the same. art laffer, to you, what do you make of that? what is this election about? >> i don't think the economy is getting much better to be honest with you. it is not in free fall, that's for sure, gerri but we've had seven years of just flat, where the employment to population ratio is not increased at all. it is not falling but every job that was, every drop in the unemploymentemployment rate is someone leaving the labor force, not finding a job. i think people are pretty disgusted with the economy and they should be. it is not just doing well and we

need a major overhaul of economic policies. @erri: well how do you do that, doug? where do you start? what we need is the economy to grow grow and create jobs. i don't think, it is interesting, middle class americans are not something for handout. that is not what is going on. these people don't want a free check. what they want is opportunity. >> they want a job and they want a raise. gerri: right. >> and you know the jobs are starting to show up but the raises are not. i think art has it exactly right, the economy is not performing well. it is sort of muddling along going sidewaas and we need to grow much more rapidly. the right solutions, comprehensive tax reform, big trade agreements, kind of regulatory reforms that would take a lot of the oveehang out of the way would get the economy going again. fixing big debt problems, those are things anyone would go to if you did it by logic but we're not going to see. that we'll see much smaller initiatives and hopefully the president will change his style and actually work to get democrats in the senate to vote and get things out of there and

sign them. there is no since of that so far. gerri: we'll talk more about that in just a seccnd but i want to stick with the middle income americans and what is happening. look, people are not even identifying themselves aa middle income anymore. they're saying they're lower middle class. >> right. gerri: that is the tragedy of that. i find that astonishing for generations people boasted about being in the middle class. now people feel like i'm nnt really not part of it. art, to you, small business, typically the engine of growth, typiially the big employer, what does small business need to really get growing? >> they need government to get out of the way, geeri. >> yeah. >> we need a low rate, broad base, flat tax, spending restraint, sound money, free trade and minimum regulations. then get the hello hell out of the way and witnesses do what they do best, creating jobs and output production. douglas holtz-eakin is just exactly correct. gerri: ryan, what do you say? >> i think he is absolutely right. we need tax reform both on the corporatt and individual side. when you look at small business

owners, it is not just the corporate side we need reform. they need help on the individual side as well. how they pass things through. >> exactly. >> so you have got to do. that you want businesses to pour money back into their employees, you have to give them a tax break. we all want to do it. and then you bring in the affordable care act. i know for me personally, i have had over 30% increases in our fees for carrying health insurance for our employees. that caused our deductibles to have to increase to higher rates than they have ever been before. again, keeps us from being able to invest back into our infrastructure. gerri: right. >> and into our employees. it is not that complicated. >> i want to focus in on that in just a second. a recent poll showed 51 percent of the people who signed up for obamacare last year are not doing it this year. they're rejecting it. are you surprised? >> i'm utterly unsurprised. obamacare hurts in two-ways. i mean you've got a product that can't be delivered effecttvely, costs too much. people walkway from that if the

a all possiblee that es what we're seeing. but the bigger harm is not that it is bad health policy, it is bad budget policy, it is bad regulatory policy and it is bad growth policy and it has been a to where we need to be. us back gerri: i agree. i want to get -- go ahead art. i'm sorry, brian. >> what concerns me when thh affordable care act was kicked into place they knew it would get too large to kill. i don't see how even with a republican congress, i don't see how it can be killed. it is too large. you have over 10 million americans there. second round of enrollment is coming up. you've got to start fixing the mandates in those, little provisions in the bill to help small business owners once again on individual mandate. employer mandate. even insurance bailouts that are wrapped up in there. gerri: i want to get to the idea of just how well the president and this newly-republican senate are going to work together. i want you to hear what the president said this afternoon

about his intentions. listtn to this. >> every election is a moment for reflection. and, you know i think that everybody in this white house is going to look and say, all right, what do we need to do differently? but the principles that we're fighting for, the things that motivate me every single day and motivate my staff every single today. >> those things aren't going to change. gerri: i think we lost art here. so doug, i will turn to you. that didn't sound like kumbayah to me? >> no, i don't think so. if you listen to the whole press conference what you heard was the president who said, look, republicans need to bring an agenda to me, i will pick out of things i like and want to work on. that is not really changing style. there are things they can do. the republicans and president can agree on trade and importance of trade agreements. they can agree on importance of oil exploration and oil exports and keystone pipeline. we do have to fix our ighway funding.

that is a necessity. it happens in march. well, let's get together and do that but to really be effective they have to move past the things that they easily can do and must do and do the things they should do. those would be the tax reforms. those would be these larger issues. that will require a change in style. gerri: middle class income. >> and gerri? gerri: go ahead. >> if i can real quickly, two years ago he said this was a mandate and he read the tea leaves. now he said this is not that bi% of a deal. already it is politics and unbelievable for me, for an individual that has been doing this as long as he has to think that americans are going to have the wool pulled over their eyes again. @he thing i'm most excited about, is the republicans are now going to be able to puu bills on his desk that he is going to have to make decisions about and harry reid won't be protecting him from doing what americans have asked the president to do. which is represent us, protect us. help us get back to a place of economic increase and stability. gerri: that was the point neil

cavuto made just moments ago. now the president will actively say no himself if he wants to veto something. art, ryan, doug, art left us. he is here in mentally with us. art, ryan and doug, thanks so much. now we want to know what you think. here's our question tonight. are you hopeful after the election? s log on to gerriwillis.com. vote on the right-hand side of the screen. i will share results at the end of tonight's show. we have 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 @gerriwillisfbn. also send me an email by going to gerriwillis.com on the web. at the bottom of the hour i wiil read your tweets and emails. next, how it will impact your portfolio now that republicans are in charge? what stocks if any, should you be buying? stay with us. (rectionist)gunderman g.

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gerri: stocks mostly higher today after republicans regained control after the first congress. mitch mcconnell sets legislative agenda for last two years of obama presidency. that is being well-received by theemarkets. what is your mitch mcconnell

portfolio? with us daviddkotok with cumberland advisors. welcome back to the show. -@it was dow, dow up 100 points. where should investors be focusing their efforts and their dollars? >> this was a day to taae up your underweighted pooition in the energy sector, gerri. we started to see it. the congress, now, both houses pro-energy sector. we may fight overrthe pipeline. xm ps get a boost because the attack on -- gerri: master limited partnerships, right. >> master limited partnerships, thank you. the attack on the tax structure will be dampened or eliminated by the congress. there is a good story in the energy space. we think thereeis a good story in the health care space for two reasons. gerri: yet, david, yet david, those stocks traded lower with the exception of some of the

medical device-makers today. it was sort of a split decision. and you know, as you know, that is a diverse and wide sector. are you talking about hospital stocks? are you talking about medical device makers? whattdo you like in that sector? >> well, medical deviceemakers are on an upward path because of the possible repeal of the obama care tax on medical devices. my sense there is one contentious issue that the combined republican chambers will put to the president attached to some bill, it will be that item as part after package. we'll see, but certainly markets are anticipating that. gerri: okay. @o, pharma sector, biotech sector, upward trend since middle of october. now we have the first converration again about a repay tricks ages bill and the repatriation bill and it may

come into tax reform. it may take a year. may come next year. gerri: it could take time. i should point out biotechs were big losers today. i'm interested if you think that what has gone on innthe last couple of days is going to put wind under the wings of stock market as a whole? what we know midterm elections are generally good for stocks as a rule, up 16.5%. after, in the wake of this kind of election. all other years up just 3.7%. these are averages now. can we, can we get a lift from this? are professional investors going to say we'll put more money to work in u.s. stocks because there is republicanncongress now, and we feel more comfortable? >> e think so. we've taken up the u.s. weight relative to the rest of the world. we've taken up the stock weight relative to bond, especially with bond at such low interest rates. and we believe that the typical

post-midterm election pattern, through the end of the year and into next year. so e're bullish on the market. we're 100% invested and we've been riding that since the second half of october and we see no reason to change it. gerri: and in fact, if we were to get some kind of comprehensive tax reform, especially tax reform that lowered tax rates for corporations, that could be an even bigger boost, right? >> hugely. if the u.s. could get competitive, in the world corporate environment, and be able to repatriate earnings so the investmmnt structure is inward focused in the country instead of incentivized to be outside of the country, the country could flourish. we have huge opportunities and potential. if we don't have political obstacles in the way. gerri: i like your thinking. david, thanks for coming on the show and coming up later, a look how the midterms will be next it was a shellacking in

2010 and a bloodbath in 2014 but obama is certainly not the first president to sigh congress change sides. some historical perspective after the break. get to t terminal ross tn. arall the green lightsou? no. it's called iq. th4:51 is leavg at 4:51.

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gerri: big shake-up is republican full scroll of senate. how have previous presidents handled changes in the past? we have a political scientist from george washington university, lauren brown. lauren, great to have you on the show. so it is interesting to see the sort of cycling threw the sort of change and it occurs to me that it all happened before. how will this play out?

>> well it is great to be here. thanks for having me on. one of the things that is true is that presidents for the most part in these sixth year midterms aren't able to really accomplish much after the midterm does happen. usually because they are already in terms of being a leam duck. and the energy is focused on the next electioo, the next president. gerri: like momentum, right? it is interesting, they just really lose momentum like a ball running down the hallway. they go slower and slower. so how do these presidents typically pivot once they get to this point.3 >> usually what happens the president is able to make some smaller deals on issues that the opposition party favvrs. so you know one of the things you and your guusts have been speaking about tonight are things like trade deals and some

possible repatriation of corporate earnings. or those sorts of deals where democrats have opposition to them. and in ffct, the president would do well to approach the other side of the aisle. gerri: that is exactly where i was going to go next. it is more than just doing small deals. it is also that the president, if you use clinton for example, as, as an example. here's a guy who said, okay, let's find some common ground here. why, you know, i will play some sound for you from president obama from this afternoon because i expected him to be more conciliatory, more here is what he actually said. >> every election is a moment torre flexion, and, i think that eveeybody in this white house is going to look and say, all right, what do we need to do differently? but the principles, ttat we're fighting for, the, things that

motivate me every single day and those things aren't going toy, change. gerri: those things aren't going to change. so given that what do you expect to happen over the next two years? >> well i do agree there will be more confrontation. the congress well be able to pass legislation. it will make it to the president's desk. and you will see president obama having to decide whether he wants to veeo or sign. i think though the sort of larger lesson and what is true to president obama is he is is stilllsort of leading from behind in you will. he is waiting for the republicans to bring him the legislation. and i think that is where, when i look at past president, there are some marked differences. clinton being one of them. gerri: so less initiative from the white house. more leading from behind. you know, one of the points we've been making on this network a lot over last couple

days, we've seen these change elections every two years. seems like one party gets thrown out and another one embraced. how do we develop long-term policies when you never know who is going to be running the joint? >> well, i think you're right about the restlessness in the american public. much of that has to do with their feelings of disillusionment and also a misinterpretation on the part of those parties that have won. i think we saw, you know, after four, president bush had a tremendous amount of hubris, goong into a notion of social security reform and then katrina hit, and both those things backfired on him and there was rebuke with regard to iraq in 2006. and then, you've seen this both with president obama after his win in 2008, he really thought, you know, that the president and, that his vote essentially had been for him and for change

when really that for change was also about leaving behind the bush administration. these things play out over time. laura, thanks for coming on the though to might. great to be here. >> thanks for being here. gerri: issues impacting you and your money were also at stake. a look at everything from the minimum wage to stackses -- taxes plus we'll get your reaction. w uld a lumius protein in jellyfish, impact life expectancy in the u.s al estate in hong ng, at t. rowe price,ry in germany? we understand the nnectis of a cplex, globalconomy. it's just one reason over 70% of r mutual funds bt their 10t. rowe pre.verage invest wh coidence. reest a prospectus or ary prospectus with instment tinformation, risks, fees and expenses to read and consider carefuy before iesng.

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gerri: well, voters didn't just take out their angry on democratic candidates they sent home -- voters repealed an initiative that nutritionallized @as tax hikes by indexiig the tax to inflation. what a nasty nightmare that would be. wisconsin voters put an end to legislatures of rating gas tax dollars that it be used for

roads and highways. schools and teachers were denied a raise where a business tax on profits was voted down in harry reid's state. tennesseeians made it a state constitutional matter that there will be never ever be state or local income taxes. and now for some other state initiatives, fox business tracy byrnes is here with some highlights. >> millennium wage waminimum was huge. south dakota, laska, alaska the highest up to $9 and 75 cents. nebraska though starts as of january 1, 2016. gerri: they're promoting this? >> yeah. it goes to $15 in 2015. who can afford that? there goes the pizza places. gerri::the president this afternoon and his press

conference mentioned minimum wage and said it was a high priority for him and that already if you look at the polls, what you find is that people approve it. do you agree? >> i think and i think a lot of people agree, it should be indexed to inflation. let's just stop this conversation. let's just do that. gerri: it shouldn't. >> let's do something to appease everyone. yoo'll have people protesting minimum wage till the cows come home. gerri: i just don't feel that -- >> i understand what you're saying. but give them cost of living and be done. the gun check in washington state it jumped out on me because there was a shooting a few weeks ago. this was really, really pertinent in their minds. they extended background checks. they extended the private transactions to loans and gifts that's all part of it. i think that's important. there was something on the ballot to actually vote that down. crazy. this kills me. this is another reason why myychildren will never go to burkely,

they overwhelming passed a tax on soda. they had it equates to 12 cents a can. gerri: twelve cents a can? >> sixty-eight cents on 2 liters a bottle. san francisco believe it or not, it was on their ballot. they needed two-thirds, they got 55 percent. it was close. there's no sugar tax on chocolate milk. gerri: why? because adults drink it right? >> i don't know. gerri: sugar has become the current bogeyman like it's a terrible thing. meanwhile, 90 percent of my diet was sugar in the beginning. >> glass of orange juice is sugar. gerri: you can't avoid it. >> pot went through in alaska and oregon. washington state legalized it until 2012. d.c. legalized it, but said no stores. they can't actually buy it, but it's legal. it failed in florida.

this one i loved the best, gerri, arkansas it's dry. almost roughly half the state's counties are still dry. there was a vote to allow the sale of beer, liquor, and spirits, and they said, no, we're happy. it's like footloose. gerri: you're talking about my people and even if it's dry, it's not dry, you know what i mean? >> you're sneaking the bourbon? fifty he 7 percen seven said ket dry. gerri: great stuff. thanks for coming. >> i will never live in arkansas. gerri: now, we want to hear from you. are you hopeful after the elections. here's whaa some of you are tweeting. frank says there's so much potential now for a a better america. and barbara says yes hoping the republicans have the courage to fix america. senate can work under mitch. hopefully, yes, but cautiously optimistic

and myra, i'm now let's hope the republican party can come together and get things done. what an dea. we need leaders she says. when we come back the -- the big moves at pimco continuing to impact you and your money. charlie gasparino is here with the very latest news he is breaking. and the rollercoaster ride on wall street leaving many investors to flee stock funds leaving these managers out in the cold. what about you though? that's next. here is the consumer gauge with the numbers that matter to you. looks so good. stocks up almost 10 percent. gas under $3 a gallon. wish we felt it back home. @e'll be back

gerri: fox business exclusive pimco disclosing new details about risky investments just as the government ramps up scrutiny on the giant. that's what sources are telling our very own charlie gasparino who joins us with the

latest. >> we're talking specifically the big massive total return fund until i think this month before the redemptions kicked in. people were yanking their money because of poor performance. something over $20 billion. vanguard's index is the biggest. obviously that's doing very wwll as the rolling stock index does better. here's what we're getting, the fox business network can report, the financial advisors who are studying the dockets that go with this fund. the annual reports, the disclosures, what thieves since bill gross left as chief investment officer as pimco. he was known as the bbnd king. this was his baby. gerri: he was the king of the bond market. >> because of this this was a fund that did almost the impossible over a long period of time. how do you get a bond fund to beat a bond? what bill did apparently, at least

until financial advisors, it looked like he took a lot of risk. tons of use of derivatives and these other instruments. gerri: what do you mean by derivatives. >> in order to get a bond to perform better than a bond, you have to use these risky instruments. gerri: it's a formula, a gimmick? >> a way to exploit markets through these complicated instruments, you name it. gerri: the stuff that got you gs in trouble in 2008. >> this is the new story which we're reporting exclusively. pimco is reversing that. what you're seeing is them take a lot less risk. one financial advisor said they cut back the use of derivatives by 100 percent. it's a lot more disclosure on their emerging markets

disclosure. if they're looking at a separate issue involving an etf that trades off this thing, and what's interesting, are they looking at the disclosures on this a lot of people think they are. gerri: a federal investigation? >> it could be. you buy the pimco total return fund. you don't think you're getting risk. gerri: i don't think casino. >> this was like a casino. bill gross jacked up those returns through heavy use of derivatives and other ways, leverage. that is changing. why is it changing? is it a confluence of factors, is it causation that the scc is in their gerri: because they've changed what they're doing, their policy, their performance is lagging the market. down 26 percent. >> now, remember bill gross left amid this

poor erformance. a lot of financial -- why do i say financial advisors, pimco's fund is sold through financial advisors. they think the argument style that he was gross' yeeling at people too much was also on how to manage this thing. the new team, and they're bringing back some managers from the old team, theyywant the thing to be less risky. gerri: do you think gross was one of those people who had to win at all costs and was willing to take any risk to get there. >> i don't know. he had an amazing long-term record. in order to keep going, keep achieving that long-term record, particularly with a fund that is massive, you have to go out on the risk spectrum. it's not like buying stocks, penny stocks, you lose on those. -@you start playing with fire. credit default swaps. small ships in market sentiment can ead to huge losses. gerri: i have to ask you because

i would think many people watching have this bond fund, buy, sell, or hold? >> i hate giving out investment advice. i would say this, pimco, and this is where it gets tricky and why i can't endorse this fund, they won't answer questions. they will not come out and say, this is what we're doing. it's still this, it's a great fund. the new disclosures, they're still not -- listen, i'm not a layperson, i'm not an expert. -@i'm somewhere in between and some of this i don't understand. i don't get it all. pimco which has refused to talk to us. they won't deny they know everything we're reporting, they should come out and say, here's the direction -- gerri: set the record straight, not for you, but for investors in the fund. >> and for the economy. i don't say this lightly. this is the biggest bond fund. second biggest mutual fund. it could tank the market. they have an obligation

to come out and level witt the american investment public asap. gerri: i agree. let us know as you get more on the story. >> i will be back. gerri: the fall out from pimco's total return fund is highlighting a broader trend investors dumping active funds altogether pulling $70 billion are fund stars falling from grace, where are investors piling their money instead? we're asking john at morning star. great to have you on the show. so tell us about this trend. how long has it been going on? why is it gaining momentum now? >> well, the trend has been going for a quite a while. index funds have been gaining market shares for 20 years. it axe a accelerated after the market crash. active managers did not dodge the crash the way that many had promised they would. and that's where the disillusionment really put a lot of people over

the edge. they moved over to index funds and not looked back (?) gerri: they've beat hedge fund managers by a considerable degree that's one of the ironies the highest paid money managers on the planettare getting beat to pieces by index funds. >> well, there's a certain logic to it. people think of active mutual fund managers as being inferior to a lost cost index fund. then along that line of thought, a doubly active hedge fund manager that costs more might be worse. right? so, i mean, there's a logic there. gerri: there is a logic there. >> yes, indeed. there's quite a bit of irony in that the lowest cost funds that received the lowest fees have done the bess. gerri: i want to ask you about pimco for a second because, you know, we've seen the outflows that investors have pulled out of pimco funds.

it's been -- that is the biggest outflow i think ever. it's a marily major thing. what is the likely impact on fund investment and pimco? if you still hold a pimco fund, is there any way you can get hurt here? >> i don't think it's as bad as charlie made it out to be. that fund still has a lot of very large liquid securities, big treasuriis that it can sell at close to the market price, and while it's true that fund has -- go ahead. gerri: go right ahead. >> while it's true that fund has some exotic securities, generally your losses in the bond fund even if things go wrong are not what happened with the stock fund when things go wrong. you know, i'm not overly concerned about people getting killed. go ahead. gerri: my question is this. people are pulling their money out for whaaever reason. will that ultimately

rrbound badly to current investors? because people are leaving, should you too? any reason to think that? >> i don't think with this fund. it can happen with funds that are almost illiquid security. we've seen that happen in the past where there's this death spiral. they're forced to sell illiquid securities. declining. is not it's not like you have to sell in a weak marketplace. i don't think it's that bad a situation, but it's certainly bad for the reputation of active managers. we've talked about how active managers are in a bad state and have a bad reputation, and then the single most visible active manager in -- with bond funds has occurred. that is not good for the group as a whole. gerri: ot good for the group as a whole. thanks for coming on the show tonight. i hope you'll come back soon. it was a pleasure to speak with you. still to come my "2 cents more" and next, a

disturbing new study shows just how pervasive texting and driving really is. we'll have the details after the break.

gerri: texting and driving, we all seem to be fully aware of the dangers yet we continue to do it. new study. jack nearad, good to see you again. thanks for coming back. >> pleasure. gerri: how many folks are you finding are actually texting and driving? >> way too many. gerri: yeah. >> way too many. i'm lucky enough to drive 80 miles back and forth to kelley blue book so i see a lot of it on southern california free ways. it's happening all the

time and there are definite safety implications. it's like drunk driving. gerri: some 70 percent of people admit to texting while driving. it's the kind of thing the government says we need to raise education levels. the reality is people know what they're doing. why are they saying they're doing this? what are their reasons for texting or driving? >> well, i think we're a connected society, number one, and there's that instant gratification of getting the text and wanting to respond. if you hear that phone beep, you're wondering what it is. is it the children, my boss, my wife, what's going on? and you want to respond immediately or at least see what's going on, and as you're taking your eyes off the road, you're becoming a danger to yourself and others. gerri: yet we find 2,000 crashes each year are due to texting and from what i understand, this is

from a different study, young people, teenagers, who die in crashes are more likely to die texting and driving than drinking and driving. >> well, you know, every kid has a phone. you know, i know that and i have two teenage drivers. it's a really vexing problem. they are used to texting all the time. that's how they communicate with each other. i know that first hand with my own children. it's hard to break them of that habit when they're behind the wheel. my kids don't do it behind the wheel, but i can see the temptation to do it and i understand adults who grasp this is a dangerous situation and say, this is just the one ime i'll do it, and it's that one time that can put you in a desperate siiuation. gerri: there's a texting ban in

40 states, but people continue to do it. mom and dad have to say no and they have to not do it themselves. that will get us further. >> absolutely. i agree with you 150 percent. ii's a major problem. glad you're calling attention to it. gerri: great to see you. >> great to talk to you..% gerri: and we'll be right back

gerri: and finally looking ahead after last night's election, one goal should be a priority for both parties and that's improving the fortunes of the middle class. the middle class has ssruggled for nine years without a raise. a middle class has seen median incomes fall for the last years. this election should be the opening shot in order to revive and resuscitate our middle class. hopes are high. i hope our leaders are up to the challenge. that's my "2 cents more." that's it for tonight's

willis report. thanks for joining us. don't forget to dvr the show if you can't catch us live. "making money" with charles payne is coming up next. have a great night. charles: i'm charles payne and you're watching "making money." the american people have spoke and the stock market cheered today. the nationmide be ready to move in the right direction and guess what, we might be proud of being greet once again. the republicans killed it, but president obama still having a little trouble either reading or accepting the tea leaves. rich edson is in washington with the latest. >> good evening, president obama holding a news confereece after his party loses control. the president says he's in a unique position to try to get democrats and republicans to come together in a bipartisan fashion. perhaps patching free trade agreement. he acknowledges the parties will