tv The Willis Report FOX Business December 9, 2014 5:00pm-6:01pm EST
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i don't think he will deliver. that will be issue for markets. liz: central bankers, they do hold the keys, don't they? david: absolutely. thank you, paul. "the willis report" is next. liz: have a great night. gerri: hello, everybody, i'm gerri willis. we begin with the fan at the center of obamacare's troubled image. jonathan gruber was in the hot seat today as he testified before the house oversight committee over his controversial comments saying obamacare was passed because of the stupidity of the american voter. that is what he said. not what i'm saying. he is apologizing, trying to down play those comments today. joining me dr. scott gottlieb, physician and resident fellow at the american enterprise institute. doc, great to have you back. we'll get to sound from jonathan gruber. hear the exchanges in this case with darrell issa.
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>> are you stupid? >> i don't think so, no. >> does mit employ stupid people? >> not to my knowledge. >> so you're a smart man who said some as ranking member said, really stupid things and you said the same. is that correct? >> i, comments i made were really inexcusable. gerri: the comments i made were inexcusable. what do you make of this? does this take us back to earlier today? are gruber's comments the american people are stupid, they don't care about anybody else's health care insurance are they still on the record? >> they are still on the record. jonathan was integral helping craft the legislation. gerri: we know that first-hand. >> we all know that in washington. he was insider. these comments he made about americans at academic conferences at laugh line. he thought they were funny. people in the audience laughed if you listen to the tape. gives us insight to the elite crafting this law. gerri: this drives me crazy. this is the bottom line. you realize theme have no
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respect for us. it is hard to believe they are helping us when they are derisive or our ability to understand what they're talking about. >> this prevailing view of this class of individuals they have to substitute judgment for judgment of americans. as opposed to being collective judgment of americans ultimately will lead to better decisions which i think a lot of people who believe in market principles feel. gerri: i don't agree with those people in washington at all on that score. let's look at the facts. because we talk about what the president produces as facts that they say they have bent the cost curve and health care costs are coming down. but when you look what is actually happening to people out there, that is not true at all. we have new numbers from common wealth. tell us about those. >> average cost for families are going up. average cost of coverage for people from work gone from $3500 on average to $5500, 60%
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increase in the last send years. gerri: 60%? >> other thing utilization is actually down. so peoplery paying more for less health care coverage. quite a profound economic feat. going to doctor less. using less health care. but price of health care they are using is going up. that is what you see translate into higher insurance costs. gerri: up dramatically. you have fascinating numbers about once you really start looking at obamacare, what you realize a lot of doctors, they're not in their offices anymore. they have affiliated with hospitals. >> right. >> you say that has big downside. >> you're seeing a lot of consolidation on delivery side where doctors are becoming salaried employees of big health institutions. all health care is local in the end. if only health care you get from single institution in the local market, really supersedes the ability to impose later or come up with later a market-based solution to health care in this country. a lot of republicans in congress signed on to reforms for
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consolidation. it will be hard to reform obamacare and legislate alternative once consolidation takes place. only 1/3 of physicians are independent, not working in salaried position. gerri: i think that means they spend less time with you. they charge more tore their services. at end of the day the care is worse because you don't really have a relationship with that person anymore. it is just somebody you might see sometime. >> right. all the data shows productivity declines when doctors enter the salaried relationships. we'll get less health care for every dollar we spend. we create these new arrangements. gerri: i want to show numbers gave us what medicare pays. hospital charges versus privately owned doctor charges. if your doctor is in private practice. number on the right side. if you have go to hospital, see a doctor on the left. heart scan, 749, versus 503.
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colonoscopies, 876, versus 4 2. 15-minute doctor visit, 124 versus 70. that is a big difference. >> government knows about this. baking into more money when charges are administered in the hospital to purposely a try to hospitals to drive these practices. they are trading to capture revenue why doctors tell me they can't affiliate. it is uneconomic to be a doctor out on your own with a shingle. is that true. >> that is becoming truth in many, many markets. once relationships take hold. this happened in 90s you saw a lot of consolidation with hospitals and those situations were unwounded. i think what happens this time the relationships will be sticky. the doctors will not be able to pull practice out of the hospital. they won't have access to their medical records. not as simple changing tax i.d. if you want to do one of relationships. medical records, so these doctors will be stuck in these relationships. again you have local health care monopolies. try to super impose a market
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based alternative to obamacare with local health care monopolies. it will be very hard j.c. health care, the procedures you get, all going to be determined by law. not by your individual doc. it will be processed by machine. and instead of man. wow, doc, thanks for coming. >> thanks a lot. gerri: good to see you. wow, so not good news there, sorry to say. we have an. >> would you buy the current car again? "consumer reports" compiled a list with vehicles owners simply hated. here with the list consumer reports car content leader. great to have you here. i emphasize cars people hate. everybody loves to see the lists. start with the suvs people hate. what are the ones people don't really want to see? >> number of people who say they definitely would not buy the
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vehicle again,ments more than 50% of the people would not be happy doing it were the jeep compass, nissan pathfinder and hyundai tucson. the reasons why they wouldn't buy those again vary. the survey analyzed about 350,000 vehicle owners and on features such as styling, comfort features. cargo space, fuel economy. maintenance and repair costs, overall value, driving dynamics. all those various things factor into the ratings. in the case of some of the vehicles, maybe long in the tooth when people bought them. so they felt out of date as soon as they bought them. maybe they didn't drive comfortably. maybe they felt cheap for amount of money they paid for them. gerri: talk about he had is dance. the bad sedans nobody would buy again. >> that would be nissan versa, versa,kia rio, and nissan sentra. these are compact, inexpensive sedans as industry refers to as cheap and cheerful. normally people buy these as
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gateway cars. they want to own the bmw. they can't quite afford it. so a lot of times they might look at it, why would i buy that again? my next car will albert one. also they look at it as a disappointment. i think when people buy a new car, they have that hon any moon period. -- honeymoon period. want to experience joy of a car. those cars didn't satisfy people who should own a new set of wheels. gerri: i know what you mean. you sort of fall in love with your car when you first buy it. if you don't you're in big trouble. tell me why nissan is on this bad list again and again? >> well, the versa and sentra use a lost common parts. they also, i mean those are two vehicles at lower end of the spectrum. not all automakers dwell down in that 12,000, $15,000 price bracket. so they have two vehicles in there. and that is a little disappointing for them. >> you told our producer that americans like comfort and luxury and they may not be
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getting it in those cars. let's flip-flop to the list of cars people love and would buy again. start with the set distance. -- sedans. >> number one is the tesla model s which is no surprise given we gave it the top score we have ever given any car in our ratings. and a lot of it had to do, not only it is fun to drive which has extremely strong performance from what would appear to be a rather ordinary looking sedan but it also has a lot of ride comfort and it also has really low operating costs. so but think about, you know, you never have to pay for fuel as it were if you're on a road trip. stop at one of the tesla supercharging stations. you wait for 20 minutes. you're topped off and -- gerri: but these are expensive cars, right? >> ah-ha but here we get into another equation value for money. there is a lot of more expensive vehicles people still consider to be good value because of whether it is horsepower per dollar or mileage range per
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dollar or things like that. sometimes the more expensive cars provide ate per value than ones that might cost a little bit less. on the flip side, there is also ones that might cost a little it about less, don't carry premium badge. say the hyundai genesis and they surprise people because they come with features that more expensive cars that do carry luxury badge have. for that reason sometimes the lesser-priced car does carry owner satisfaction. surprise and delight as it were. gerri: you want to be in the magic space, right? you get the most for your money but don't have to pay too much. mark, thanks for coming on the show tonight. it was great to see you. >> thanks, gerri. gerri: we have news coming out moments ago about gas prices. guess what? they will keep falling. isn't that good news? according to the energy department which slashed its prediction fornext year's average price. 2.$60 a gallon, 20% below the projected average this year and the lowest since 2009.
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that could mean savings of consumers of $100 billion. $100 billion over the course of next year. the average price for a gallon of gas is 2.66 cents, down 60 cents from just last year. 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. send me an email. go to gerriwillis.com on the web. i will read those comments at the bottom of the hour. first you may soon be able to haggle on amazon. why the world's biggest online retailer is starting to, make an offer program. stay with us. we'll tell you more. (trader vo) i search.
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engaged through basically making purchases on the site. looking the way ebay has the bidding model, amazon is trying to create a way to turn it into real-life flee market if you will where people haggle around collectible items. gerri: it exactly like ebay works or different. >> it will be a little different. ebay has a make an offer model, it is not as frequently utilized by sellers on ebay. most of the time it will be their traditional bid model or buy it now scenario. the ability to kind of haggle and work directly with the actual seller is something that is going to be very different. i think something that will be very indrinking. >> i'm amazed by this i think it is interesting. i'm wondering if it will come to other categories? do i negotiate for paper towel price and toilet paper price? >> i think it will take time to hit it there. ultimately i think it will be
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something that will catch on. it will be a scenario when you're talking about commodity-based products like things, like household items. you might find a time when people are able to basically go and negotiate those prices. maybe more based around the volume that they will purchase. ultimately find its way to get to other areas. gerri: if you don't sell at prices you're getting you can shut it down and move on, right? >> basically lets's be honest. everybody wants to get a deal. somebody might find something that is worth x to them. but the seller might not feel that is number they want to sell at. any type of negotiation they would have the ability to say no, thank you. gerri: do you think ebay is sweat it tonight? do you they are wore remembered that their bliss model is under assault? >> i think ebay will pay attention to this.
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amazon gain attracted a lot of steam across the board how much visibility it has and how much people are really utilizing relying on amazon across the board. i do think that ebay should be concerned and i definitely think this is a different spin on frustration on bid model. this is more around as it is referred to as haggling. gerri: haggling. is amazon often experiment with stuff around pull it back? >> from time to time. again, i think we're looking at another about 150,000 products right now, in collectible, memorabilia type space. ultimately, depending how this really works, i think it would give it a lot more value. but again i think they will find that specifically in this vertical it will work extremely well, which will lead it into other areas within amazon. gerri: vertical there you go. all very technical. ken, thanks for coming on. great to talk to you. >> thank you very much.
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gerri: now to latest developments on a story we're following. supreme court delivering a blow to amazon warehouse workers today. the court unanimously ruling companies do not have to pay employees for the time they spend undergoing security checks at end of their shifts. justice said the workers are not entitled to extra pay because the checks are unrelated to their primary job duties. workers claim security checks meant to protect against theft can take up to 25 minutes. later in the show, day two of our user's guide to the best financial year-end move. next, you may soon see a doctor from the comfort of your sofa, thanks to a new app from walgreens. details coming after the break. ♪ (holiday music is playing)
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gerri: walgreens is putting virtual doctor visits to the test. the nation's largest retail pharmacy chain partnering with a company called n -- md live, to offer doctor visits through the maybe app but should you -- mobile app but should you sign up for an appointment? with me is dr. kevin campbell. good to have you here. as a user what do i experience with this. >> what i understand they have a application on iphone and android platforms. you would push the button, launch the app, sign into your account and request an online visit. from there you would be billed for that visit and get into a queue to see a virtual physician. >> so, pardon me for just trying to get my arms around it and
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look at my phone and talk to the person, i would see them and talk to them directly? >> it depend on which type of visit you have. they have voice-only visits. they also have visits through a webcam which you could do probably from your iphone or your ipad or even a computer. but you know, the problem is, it is visual. i think it is important but at the same time, physical exams is a big part of making a diagnosis. there is no physical exam. gerri: that is my next question. is this a good idea? you're a doctor. you see people all the time. could you do it remotely? >> so i think there is a real role for telemedicine and remote visits. however, that does not substitute for a doctor-patient relationship, a visit in person. it is an extension of a doctor-patient relationship. so i think relying on that and nothing else is a big mistake and could result in misdiagnosis and big problems down the road. gerri: here is what i see, doc. i see people relying on this to the exclusion of real doctors.
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because health care has gotten so expensive. how much are these? how much do you have to pay to get one of these consults? >> i read the walgreen's press release. they're talking around $49 for these consults and they say it will electronically prescribe whatever antibiotic or medicine you need, which i find to be interesting on the conflict of interest side of things as well. gerri: because why? >> well, if you are working for walgreens app and you are prescribing a medicine for someone who is come into the walgreen's platform, you're likely going to e-prescribe it there. and not everything requires an antibiotic. a lost viral infections do not. however when patients come to a situation like they expect to get something prescribed. >> something like the aspirin on aisle file. my concern you get misdiagnosed and difficult to understand.
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they say they will pay for this. is this the ultimate impact of obamacare? now we'll have to see our docs by our telephone? >> i think this is indirectly frommed obamacare legislation. more and more doctors out there not going to accept accept obamacare reimbursements because they are so poor. a lost insured want to see primary care doctors who are completely overwhelmed. this is the substitute. this is the result. patients will suffer. gerri: you make a good point. there are fewer and fewer docs, right? the outlook is really poor. a lot of the docs are essential to families. i think we'll be making hard choices like this whether or not to use this kind of service. do you advise it? are you thumps up or thumbs down on the virtual docs? >> i am thumps down as solo way
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of interacting with the medical system. however i think a lot of doctors you may see your family doctor once a year but they offer virtual visits to supplement. i think that is all with use technology. gerri: go ahead. >> what if you're in remote location and need a specialist to see you? you could do a virtual consult with your primary care doctor, that is good. but this walgreen's thing? thumbs down. >> dr. campbell, good stuff. >> thank you, gerri. gerri: we want to know what you think. do you trust health care advice at pharmacies? go to gerriwillis.com. vote on the right-hand side of the screen. i will share the results at the end of tonight's show. at "the willis report" we've been following the massive hacking attack on sony last month. just a hour ago, fbi direct tore james comey said investigators have not termed who is responsible.
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as we reported some is speculating that north korea is behind those attacks. north korea denies any involvement. the hack coincides with the upcoming film, "the interview" about an assassination plot against that country's leader. the star of that film, james franco, sat down with our own dierdre bolton and talked about the hacking impacted himself and his costars. >> i wouldn't want my social security number out there but i guess i will deal wit if it happens. i don't know what -- >> what has sony told you? >> they told me not to worry. i mean i have talked to seth about it and, it is like, make sure you, your accountant watches your accounts and they certainly are. there is like a triple watch over my money every day. but, other than that, seth is like, well, don't worry. whatever. >> that is james franco on fox business. congratulations to dierdre bolton on that interview. and go to foxbusiness.com to see
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the whole thing of the it is very long. the. coming up some investment lessons we learned from 2014. next our user's guide to year-end financial moves continuing with a look at charitable giving. as the year-end deadline approaches we'll have advice donating more than just money. ♪ how can power consumption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 70% of r mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.
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finance expert and cpa, author of the book, frugal is not cheap. we're joined by ken berger. ceo of charity navigateer. welcome to you both, great to have you here. we have a one-two punch, taxes and then how to find the right charity, clair, you can give cash, but there are complications with giving out dollars? >> yeah, so, i was in a conference one time, a well-reported tax practitioner made a statement one of the main reasons that americans pay more taxes than they should is because they don't keep good organized records. it is such i simple thing to do. gerri: if you give cash it is hard to cash, get a receipt from the charity, and also do it other ways put it on a credit card. >> if you give cash, keep a receipt, a bank record, or
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payroll deduct record. gerri: other ways to give? >> you can give household items, clothing, a lot of people do that you will be able to deduct that at fair market value, vehicles, a lot of these -- >> we'll get to that. ken, we were talking in break about how this is biggest time of year to give, everyone trying to beat that december 31 deadline. how much is given? >> 50% of all giving depending on chair teas, last day of the year is busiest of all, i think something in order of 50 t 15 t% of giving can happen on that one day. gerri: clair, i think about you either give money, cash or you know charge it or skph-g. osomething or stuff out your house, let's say you top give clothe. >> you are going to be able to
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decudeduct it fair market value, important thing, they need to be at least in good used condition, you can't give away your junk and take a deduction, vehicles, you can give a vehicle, that is more popular. gerri: more popular, but tricky, irs that is a red flag for them. >> that is right, you will be able to deduct it at fair market value or what organization you donated it to was able to sell it for, whatever was less. gerri: airplanes, all kinds of stuff it was on the list. i never had a plane to give away. how about a stamp or coin collection? >> that is capital assets, stocks, bonds, jewelry, stamp collections, join collections, and real estate. all of these are probably going to be deducted at fair market value, but you might top talk to
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your cpa and advantages and disadvantages of selling it verses selling it first then donating the proceeds. gerri: a lot of people don't talk anywhere that money is going, now is a time to rethink it how do you decide. >> the cash is most precious commodity for a charity. but we think you know that basic rule of thumb, is, be paying nat about the -- passionate about the cause, then look at information to protect yourself from scams and fraud, three critical things are finances of the organization, is it managed well, is the majority of money going to the program, does it have good strong governance. third do they verdict of their results? gerri: so a shortcut for this? you can go to charity navigator.
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but, let's say i have a charity that you don't evaluate. what is a good proportion of overall income that goes to overhead this goes to management salaries? what is a good amount? >> we recommend ideally, 75% goes to program. 65% is okay depending, most important look at other factors it may not have lowest overhead rate but it may be effective. even if we don't rate it we have their financial reports and a guide to help you to follow through on these different measures. >> i love that, clair there are some donations can you can't claim. >> you can't claim donation to individuals even if you feel they are worthy or needy. they have to be a qualified organization with the irs, you can go to irs. gov and find out
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which are. are. gerri: they will list them. >> yes. yes you can do a search, things like unions, political organizations, and homeowners association, are not de la rionda duckibles. gerri: you have to be wear full. -- careful. smart end of the year moves, clair and ken thank you. gerri: thank you. gerri: coming up tomorrow, our users guide to your end of the year finances, should you move from a 401(k) or an ira, we'll have answers. >> now we want to hear from you walgreen said that patient in california or michigan can now contact a physician around the clock through the mobile's app? here is what some of you are posting. carroll said yes on medicare we pay so much, no raises, makes it
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hard, cash strapped need a viable alternative, and this can't be worse than what you get in most doctor offices. >> be sure to like fox business on facebook. and as congress looks to wrap up latest session this week, maybe of you are looking ahead to a republican controlled legislator next year, but according to your e-mails, you are not that hopeful, judey from california rights that would be like asking me if i believed in the tooth fairy. i expect president obama is stay on when he believes to be his high horse, and peer down at his minions in congress. matt in texas, i am wary of washington no matter who? control. we love hearing from you, send me an e-mail, gerri willis.com.
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the things on the list, starting with an india fund. tell me about that. >> a change in parliament, prime minister's modi party has taken over parliament they will get a lot of things done, tax and business changes, it was bullish in 2013 but this year it took off. gerri: the matthews india fund up 56%, then an etf in same category. that did gangbusters small cap india. >> schalls di did -- small capig did well. gerri: and high yield, tell me about this one. >> you know this is a little nerve racking, people are chasing yield, and the muni, market for a fund to be up 18% that is risky, i would not be chaseing this next year, so -- >> what about high yields next
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year? it has been super popular because. the search for a yield. should you run away? >> keep your eye on it, some high yielders are coming down in value. there is risk, if this global deflationary scenario spreads into u.s. to some bonds, the value ofnese bonds could drop dramatically even if treasury rates stay low, because of the risk in spread 92 words of warning. gerri: words of warning, large caps, southwest a big performer up 16% year-to-date. this is a company that does not have a baggage fee, for that reason, i think they should be best stock of 2014. >> this is a very well managed company, a lot of airlines hedge their fuel, they may be one of
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the their net income has done so well, they don't hedge the fuel. gerri: they don't have that cost. >> a lot of airline say, if we're expecting prices of jet fuel are going up we'll go long in market and hedge it what happened? market came down, they are on the wrong side of that trade, they are paying higher cost based on that hedge, it gets complicated but, bottom line it hits the bottom line. gerri: it hit its. >> good operator, bad operator, it is the hedges that cost money. okay talk about .. we talked about -- talk about ipos, we talked about ale baba a lot, but health? >> health care, and biotechs. this was year for biotechnology. indexes have gone up in many of the biostocks. people are chasing companies without earnings.
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that is the hardest on part. gerri: i have heard this story before, it ends badly too. right. gerri:s onio pro sis treatment? >> there are no earnings. that people buying hope. gerri: tough year are in commodity in particular ice coffee. >> no ice cough dewell, but it was -- ice coffee did well, but must was made in first 3 months of the year, but commodity indexes have been down over 20%, every once in a while you get a pop in coffee. gerri: ice coffee? >> no ice exchange trade the future contracts for coffee. gerri: okay. the big take away, if you do well in 2014, are you likely to repeat.
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>> well, don't chase what worked well in 2014, and expect it to work just as well in 2015. like that india fund that is an isolated area, a select fund, not a broad fund. just one area, in india. gerri: thank you. >> thank you. gerri: and still on come my two khrepbts more. one chicago area car dealership may be giving customers their money back. on cars bought on black friday, you get to keep the car why? because of the snow. jeff flock explains in his life report coming up.
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gerri: this could be a great deal, a gmc buick dealer outside of chicago giving away free cars, if it is a white christmas, they can make the promise because they took out an insurance policy against the weather. jeff flock has details. from that gmc dealership in downers grove, illinois. >> reporter: they lay them off with weather derivatives, christmas tree is here, looking over there, you might see ribbons on buicks and gmc 's, carl is doing his best to change hiamerica's opinion of the car salesman. >> change it up. >> reporter: if i bought a car the day after black friday or
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day after that, and it snowed 6 inches on christmas day, the car i bought is free, i get my money back. >> that is correct. 6 inches more at o'hare. >> reporter: you have to get above 6 eufrpbl 6 inches or abo2 does not make it. >> does not count. >> reporter: on that day. >> on that day. >> reporter: insurance company, essentially has modeled this and gave you coverage for -- how much are you talking about in. >> under a million dollars. >> reporter: this is a buick, an encore. that is a enclave. how much are we talking about. >> about 45,000. >> so, if i boat it on that day, i get 45,000 back. talk about models, odds of this, we looked at noaa, in december chance of it snows more than 5
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inches on the day is 1-1333. >> still bitter than lottery. >> reporter: you have a better chance of getting struck by lightning but this really helped sales. >> it does, it does something different, and puts our name in front of people, we have a lot of media right now. >> reporter: how many more cars did you sell than typical than you would have on black friday. >> 10 to 12 more. >> reporter: cars. >> on that one day. >> reporter: and lay that risk off? >> 2% investment. >> reporter: of the million. >> yes. >> reporter: what is that? per car. >> per car, about less than a thousand, about 750 a car. >> reporter: not a bad deal, white christmass are always pretty, but it could be a really
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good deal this year in chicago. gerri: it could cost them a lot of money? there is a price for him here. is it more important to make the money on car he is selling intrainintraadditional way or gt people in the front door in a promotion like this. >> reporter: would it have been beter to make that 2% say here is that 2% give it back to the buyer on the two days, than to lay it off, and you know take a chance of big payoff? >> i think everyone likes a little bit of excitement, likes to know if yo you can win sometg versus a little cash back. free is better than a couple bucks back. >> reporter: we would not be standing here talking to you either. >> correct. >> reporter: you got us. gerri: thank you, jeff, appreciate it. >> okay gerri. gerri: fox business alert, pimco
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founder -- let me start over. bill gross started managing the janice global bond fund ino, in november attracted $770 million, according to morningstar that is more than $1.2 billion compared with may, fund assets were 12 million, yes, 12 million. 0 to 60 like that. and we'll be right back with my two cents more, and answer to the question of the day, do you trust health care advice at pharmacies? stay with us. you don't need to think about the energy that makes our lives possible. because we do. we're exxonmobil and powering the world responsibly is our job. because boiling an egg... isn't as simple as just boiling an egg.
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>> if you are like me most of your charitable contributions come on-line moments before december 31. making contributions that qualify they be more difficult than it appears, you can't deduct contribution to individuals or nonqualified organizations like country clubs or chambers of commerce, but you can give household goods like clothing, cars, and planes can be deducted. you deduct the fair value of market value of property, stretch your charitable dollars by gives to philanthropys this have good management. that is my two cents more. >> coming up tomorrow, our users guide to financial year end move continues with a look at your investment portfolio, what moves
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should you be making. that is it for tonight's willis report, thank you for joins us, "making money" with charles payne starts right now. charles: i am charles payne, you are stupid? what is what m.i.t. economist jonathan gruber got grilled about on the hill, accused of cooking the books and misleading public to get obamacare passed. it got heated, rich edson in dc with latest. latest. >> reporter: he was trying to sound intelligence by disper aning others, he phrafrs that believes congresspass the health
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