the number one killer in the united states whicis heart disease. >> morgan, you like it. >> don't expect major activity until the new drug goes in. >> have a woerful weekend. cashin' in is next. >> choosing bankruptcy over a bailout. pennsylvania state capitol filing for bankruptcy protection this week and not alone. several communities are facing bankruptcy or or already declaring it. this is as many local governments and states are seeing huge budget short falls. is bankruptcy the way to go instead of taxpayer funded bailouts. welcome to cashin' in our. our crew. wayne, and johnathon and trace yejohn. and democratic strategist david mercer. and welcome to you.

wayne, start with you. should local governments go bankrupt in >> absolutely. that's what the bankruptcy code isule about. file chapter nine if you are a municipality. bankruptcy law was designed for these kinds of things and allows the body to reorganize and pay the creditors in a certain structured way . that's the best thing for cities to do because you are end up bailing out everybody. you can't bail out the world. >> john, this question to you. do you risk rolling the financial markets if you set the principle. >> that's the argue from the governors. governor brown, one of the worst states. it is compared to greece and saying it is on parwith greece. it is. trying to make it harder for

them to go bankrupt because he believes it will roll the markets. jefferson, alabama 3.5 billion and investors lost over a billion . the market is not so dumb. default or bankruptcy, it is basically the same thing to the market as far as the contagion affect. >> five states filing bankruptcy42 states with budget short falls and david what are your thoughts. bailout or bankruptcy? >> i think you have to have bailout and stimulus. i mean, look. going to what wayne said regarding to bankruptcy. that wouldn't have worked when wall street got its bailout. main street is looking for the same standard and not a double standard. we saw it with detroit how that worked with the auto industry and have the detroit lions the 5-0.

bailouts can work and we need a stimulus package and that should be a option on the table. >> but, handing out money is not the worry and what does that do to the taxpayer. >> we are not. >> you are certainly happeneding out. you bail out you are not investing in anything. we know how well that stim tim money. there is no investment. >> we are allergic to bailouts. five communities have filed for bankruptcy. we saw the market soaring on news of a bank bailout in europe and u.s. markets roared up. it is a troubling culture that we are in here. >> you are right and the problem is, we had two wars that were not accounted for and handing out taxpayer money to those who didn't need it for 10 or 12 years . when you have taxes and

revenue contributing only 14 percent of gdp. it -- >> wait a minute. you have two wars that were not funded under the bush administration. you have 3that are not funded under the obama administration. your detroit lions had more to do with mat millon being fired than states getting money. it is not a jobs bill. >> we'll try to let wayne weigh in. >> rick perry did stimulus funds of tune of 6 billion. >> and david. be real. the stimulus that the government spending is what the bankruptcy would hopefully remove. that malinvestment. the example of a city of 50,000 racked up 300 million in mal investment.

the bankruptcy would remove the bailouts. hold on one second. >> no one can understand when you talk at the same time. >> tracey, it is already gone out to the states. what happened to it? >> who the heck knows? >> they are in worse shape. hand out more money. let's throw it down the drain. that seems to be what we do. stimulus hasn't worked. wayne is dead on. the code is written to do it properly and they will deal with their creditors and everyone can move on from there. >> why would you not apply that not to the banks. >> we all were against the bailouts for the banks. we talked about it on the show for yearrs. problem with bailout culture, whether it is the banks or european countries or local municipalities. it prolongs the problem.

>> wayne. >> the bankers are still getting their bonuses. >> david, that doesn't have anything to do with it. you make a comparison that the banks got bailed out. none of them should have been bailed out. none of them. >> but they did. >> there are ways to deal with let me finish. excuse let me finish, please. there are ways to deal with this that are incorporated in the law. and general motors did go into bankruptcy. don't say they got bailouts. they should have all gone through the bankruptcy process. >> this is a simple process. look over a third of the mon theatstates get is from the federal government. the federal government said don't balance or cut services and jobs. and a third of that money comes from the states and when

the stimulus stops. we have a massive deficit . the municipalities are not getting this money. they are faced with defaulting or bankruptcy. >> johnathon, we are looking at costs from every angle here. >> we are, lori and one solution that costs the tax payers is privatizing the assets. that is one that the captitalist solution that solves the problem and benefit the country and not cost the taxpayer a dime. >> this call screams for entitlement reform. >> everyon is taking their medicine everyone. corporate america did it and we did it at all. states are no different. you don't need new statutes and build new parks. get your books in order before

you do that. >> coming up. a government run jobs program promising to putting americans back to work. it will only waste the time of those out of work and more taxpayer money. and a new plan to send prisoners to tax dollars. will it put lives at riskk? sweetie i think you need a little extra fiber in your diet.

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but they also go beyond banki. we installed a ge fleet monitoring system. it tracks every vehicle in their fleet. it cuts fuel use. koch: it enhances customer service. it's pretty amazing when people who loan you money also show you how to save it. not just money, knowledge. it's so much information, it's like i'm right there in every van in the entire fleet. good day overall. yeah, i'good. come on in. let's go. wow, this is fantastic. ge capital. they're not just bankers. we're builders. they helped build our business. >> the president's jobs bill hit a wall this week. and they pushed for a national job training program and gaining momentum. critics like tracey say we have proof it will not work. boy did expenses balloon. >> they tried it in georgia and the theory is they are going to model it in george's

plan. less than a fifth of them actually got jobs . here is the kicker of the whole thing, lori, it cost $500,000 a month. and they are up to two million a month. costs are rocketting and no one is getting a job. we are training them for jobs that don't exist. if we allow corporations to train them we would be in a better position. >> johnathon do you agree that it is the best way to put people in jobs. >> we have to do something. i believe what we have is manufacturing, jobs went in housing and that is a bubble that burst and house suggest not coming back for yearrs. they have no jobbs and no training. this program was horribly inefficient but we have to find something for the people. there are no jobbs to open up and go to work . retaining is a big part of it.

>> johnathon train them on a federal level? >> lori. it is absurd. and a period who never created one private sector job has a plann or counsel to protect them. approximate it is great companies, never a function of the jobs bill . we need economic freedom and everything that the president does, regulations and taxes and intervention run contrary to that prince pel. >> david is smirking today. yourr thoughtings, you disagree? >> i will say i leave it to the bureaus - on viewwers to go on google. jobless rate is attributed to losss in the public sector. that aside with regard to job training is hopeful here, you are taking a page of what

happened in clinton in public/private partnership. you would not have welfare form if you didn't have public woshing with private to get reform. what is good to see them how they fill the jobs they do have and vacancies that they do have. >> more central plan government and what we need is more solyndra. >> i didn't say more planning. >> here is another problem with the partnership. guys, don't you think that the housing problems are weighing in on the jobless problem. they can't move and flexibility. wayne, to get to where the jobs they can't move and maybe the federal government focusog job training should reform and fix the housing problem. >> it is not just in the housing. you have systemic loss in jobs because we have a gap

educational some of the jobs are never coming back. a rivet guy job is gone. that is replaced by a machine and somebody with computer training. that kind of training for high technical stuff is good. but you problem 27 people that he appoint to a job's council. you can't get three people to agree and it is headed by jeffrey imo. one of the dumbest guys of the world who took the x-ray vision of the general electric and lecturing about jobs. he moved the x-ray division to chynna. >> a lott of people agree. >> and you know, wayne's point. give it to high tech . we try today in the green industry and inspector general said the program failed miserably . promised with 8000 jobs and

ended up talking about jobs that didn't exist. and 1300, of those people are unemployed. >> can you retrainn them in a speedy fashion or will it take a generation for kids automatically going where the demand is? >> that's normally in a free market. people go where the demand is. when the government gets involved it is skewed and altered . a year ago that was government's big initiative. hope for homeowners and it failed in that and they will fail in the job creation. >> you don't have training. you don't have to retrain them. there is no job creation event. you have people on the far rightt and far left that hate so bad and nothing gets done. no, what we need is a energy policy. create a gnarl gas economy .

open up off shore drilling. and we need education. >> letdavid, please. same time viewers can't hear either one. >> get construction workers to go to work if we had a energy policy. >> coming up, drug pusher and purse snatcher to firefighter? fire storm to use convicted prisoners to fight fars. is this a way to cool down overheated budgets. these dogs wake up too early!

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>> hello, everyone. i am uma in washington. galvanized by the occupy wall street protest are under way in city the across the globe and some are violent. demonstrators are marching against big business and banks and politicians in rome, estimated 100,000 people took to the streets. here in washington, a differenterally featuring al sharpton getting underway. the mission of what is called the jobs is drumming up support for president obama's jobs plan and lots of debate of how to get millions of americans back to work. 100 u.s. troops are heading to the african nation to provide support for the yearr longg

fight. we'll have much more about this. >> a fire storm over a new plan to cut coasts. one county in georgia wants to use inmates as firefighters to save dollars. wayne, we saw's picture of you from cool hand lou and more handsome today than back then. is this another example of the chain gang? >> it may be and it is a terrific idea. all of these states, municipalities going broke. if you can use prison labor to solve that problem, why not. it is costing us money to be in jail. it is not cruel and unusual punishment to work on a road gang. i did it for 13 weeks. and johnathon are you taking jobs away. unemployment in this country

above nine percent. every day people who are justt desperate to find employment right now? >> the worry is to have lesss convicts and 377 percent of the prison population is drug related. we are looking up people to make their own lives throw away. decriminalized drugs and it would save money in compliance and in hire real firefighters to protect people's property and rights. >> john, is this a good savings. should we take the cnvicts and transition them back in civilization . >> it is a good to do a segment on prison to put up the picture of wayne. there he is there. that is a chain gang. we have two million people incarcerated. million and half of those can

work. >> and what is the best and most practical use of their time. >> and some are too violent and crazy. they should work in call centers. we should find a way for the prisons to pay. and we have them shut down. prisoners released because they can't afford them. have a valuable community service or create income it is a win-win for all. >> yeah, i think so. the big concern is that you are compromising the safety of the firefighters. they are a tight knit group like we are on cashin' in. they may not want prisoners walking in and sitting down for breakfast. >> david, can you expand. >> i think it is a cocka mammie idea when we have a jobs bill to put firefighters

and teachers back to work. >> that is enough with the politicings. >> come on, before i leaf let me finish here and the point being. how is a firefighter. are we saying hey, we may be layying you off and maybe go hold up a liquor store so you can be in jaill and find your way back to the fire station. >> talking points. keep the firefighters there now and bring those back who got laidd off. >> thank you for joining us. >> good to see you all. >> it is a pleasure to have you. >> what is behind the wild swings of the market this year? one world leadder said drugs. we report, you decide. or hires another employee, it's not just good for business. it's good for the entire community. at bank of america, we know the impact that local businesses

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>> time to know for next week. >> the reason financial markets are out of control is not because of debt downgrade. drugs.

they are all on drugs. >> gosh. >> they have pasta on the brainn in my homeland. >> wayne. keeping an eye on. >> i am sorry i didn't hear you. i like net flixxes and i own it and best way to sell it is good. >> and job's plann is dead. only thing that republicans and president obama is agree on is extension on the ocean drilling. they will benefit. >> and john what is ciping up up. >> i am watching the baltic dry index. it hit the 2011 high. and that is a billion dollar shipping company and it moves higher in the difficult economic environmentt. >> i think it is important to