overdo the threat on the horizon. victoria is right. it takes a couple of 10ths of a point and we are perilous close to a rescission. i don't think it is a big event. rick, they are worried about the fiscal christs and we have a capitol strike going on. u.s. treasuriers saying we are parking 50 percent of the debt in u.s. backings. isn't that poor of problem. >> we hear the bad news and it makes us nervous . victoria hit the fact on the nose. two percent of the gdp comes from the sales. slow down yes, recession highly unlikely. what does worry me. u.s. banks have far more exposure to the european front than we are told. it is a credit crunch we could

do without. >> i think mike hasn't heard the news yet. the u.s. housing market bottomed on tuesday . more good news, because costs are low in the u.s. we are bringing manufacturing back to the u.s.. there is a 50-50 chance we'll repeal obama care. >> not a chance. >> greece is about the size of connecticut and maybe it will not affect the u.s. economy. if our banks had taken the time to shore up the balance sheet. you think what matters most is washington d.c. policy. who is going to be elected president is going to matter a lot . what is happening in congress is a big wild card here . europe, i am not as worried about europe.

i agree with bill. i think we are out of the wood economy is improving and china goes into the tank that could hurt our economy. we have a bless rate. and we are going to have to wait until the end of the decade to get it below 7 percent. and do you think that that is a issue? >> we have people in washington d.c. that think raising taxes will grate jobs. >> they want to just give consumers money. people say the government is dumping more money out. they will not expand businesses. they know it is mempary. we need to lower the capitol

gains rate. that spurred a bomb in the economy and stock market. i mean, california has an unemployment rate at 12 percent. i said this before california's unemployment rate should not be where it is. especially the growth they am see will in silicon valley. for decades tax and pend. bomb and bust reality. it is important to look at europe and americans are looking at europe and saying is that our future and are we going down tho that path. five or 10 years down the road. >> rick, we have mcdonald and crafts. to europe . u.s. banks, we don't know what their exposure is to europe. how word are you.

>> i am concerned about the banks and we'll go back to what we are talking about. and if lowering taxes was the answer to jobs, we would be all for it. but taxes are at a 30 year low and sadly so are jobs. that is a false way of looking at it, rick. >> why? >> taxings might be a 30 year low because they are very, very low for half of the population that pays no taxes at all. look at the taxes on the people that create jobs. liz used the word capitol strike. and that's why small businesses are not investing and hiring people in the rate they should be. is this why companies in the u.s. are afraid of what is happening in washington d.c..

it is a dismal end to the u.s. if we go down the greekpath. this is a lesson from it we can see what happens when it goes off of the cliff. i think our u.s. economy is recovering. that gets lost in the med yampt we have health services and legal services even though some say too many lawyers. but are we diversifying and restructure is this n ixed. >> it is a painful change. where i am at in the midwest. we are moving away from manufacturing. yes, we are a service economy but there is green manufacturing coming in. and there is small businesses that are actually growing and

prospering and we're not hearing about that. to mark's point. nat gas is a big booming industry thank to ford and carter. >> i think it is in pennsylvania and ohio and states like that are benefiting from that. i want to point out with mark. indiana is doing well? >> you know why they have mitch daniels. >> he's the reason they are doing well in some areas but not all. >> we have to leave it there. it is hilarous. who said going bank is a bad thing? why another california city going bust could turn in a bomb for all of us. done go away . looking for a better place to put your cash? here's one you may not have thought of -- fidelity. now you don't have to go to a bank to get the things you want from a bank,

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>> hi, everyone. we are live from america's

news headquarters. i am jamie colby. new aftermath from a deadly bombing in afghanistan. some of the images are too graphic to show. a homicide bomber attacking a wed targeting a powerful afghan parliment member and a father of the bide. detonated the bomb as wedding party greeted gas. no group claimed responsibility. running of the bulls in spain. one womanly hurt and others celebrating minor injuries. it is held every year to honor the city's patron state and grown in a celebration filled with partying join me with kellie wright here on fox. >> welcome back from california dreaming to

california screaming. san bernardino the third city not looking so golden it is preparing to file bankruptcy. but in scanton, pennsylvania. the mayor is taking a different approach. slashing every public workers pay to minimum wage and which city is doing the right thing to save more money. >> i like bankruptcy. it start denial and anger and then acceptance. i think we should go to acceptance and everybody take a hit the way new york city defaulted. yes, they did default, rick in a bankruptcy you would see the bond holders taking a hit and unies and property tax having to pay more make that and whatever it is everybody has

it contribute. out in vejajo bankruptcy costs legal frees . that will ding the taxpayers. >> yes, legal fees are huge and i don't know why everyone should have to take a hit. a retired couple who ingested in tax free municipal take a hit because of the politicians lied. i am all for work out before you get to bankruptcy. and john what do you say? >> i want to see the bankruptcies and see them in mass. it is really put the money away and it might reach the

private sector and do good. bankruptcy is very healthy right now and i hope a lot of cities do it. when the tide goes out you can see them swim naked. the economy is great and pension cost go up and collapse happened. you can see who is dipping in development funds . after earthquakes . it is the greatest thing to see. let's go back to they faced the bankruptcy back in the 70s. they didn't start fight scream shouting and putting the city in bankruptcy. they brought together the politicians and the bond

holders and the banks and they brought together the unions and you know where the money came from that saved the city? the unions loaned the city money from the pension funds. why are we not looking at solutions like this? >> and victoria, to rick unger's point. basically the supreme court judge did sign a bankruptcy petition in the 70s and mayor bing made a statement. is that to put the gun to the these guys. i don't think san bernardino. and get out.

and leaving them accountable. and this happens in 10 years. and we pick up the mess now and five years from now we strike nice agreement pensions and with the unions and we have the same problem again. how do we avoid that. >> maybe we do fire them. >> to victoria's point. in san bernardino they faked the number for 16 years and i see rick wacking his finger there. it sad for taxpayers. and now they have a look out and bond rates go up for them. >> problem with bankruptcy it makes it difficult for them to save money. what scott walker did in wisconsin. he said look. we can't give free health care and pensions forever.

he with on stood the roller and that's the way they will have to go. >> thanks, gang. >> with the president making a pitch to voters. they are making their own pitch for across the board spending cuts. carbin in on that one. >> and this guy handlingarps trade treaties for this guy. oh, my god. that's next . people like options.

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>> >> we have another ridiculous moment for the united nations. right after the report finding iran guilty of transferring bond and guns to syria. they are giving iran the top spot. america is funding 22 percent of the budget and john, is it time to cut off the sugar here. >> absolutely. the union - un is become a largely u.s. funded form in which our economies can bash the united states. the answer is basic. we can do piece cautiously and great for our economy and lower all bar yores to foreign good and free trade and we will have piece with them. >> abolish the un.

>> the latest tempest in the teapot. the un might do something that hurts gun owners in the u.s.. this is a treaty under discussion and obama administration agreed to participate . it has veto power and by some amazing fact does anybody here believe that the nra will allow the senate to do anything to threaten arms ownership. people are pretty made about it. you can't out absurd the un. people are getting killed over there. >> i think june is way too kind. i think the un is killed with

rapest and murderest and terrorist it is time that the u.s. stop fund. >> the ed was voted off of the human rights panel over there. and that was a parade of silliness. there is a lot of kespots and cooks and enemies. the whole point of diplomacy is to sit down at the table with the enemy and pick up some of the costs and if we walk away because we don't talk to enemies. what do we have diplomacy conducted by the department of defense. but diplomacy via the waet is powerfulunited states and japan and germany fund

two-thirds of the budget. enough with this nonsense and we'll cut back until you fix your silly wayings. >> you are right. there are problems with the un. it is better than the precursor which was the league of nation . this is not the first silly thing that happened in the un. we have other ways to trade and blockade and tariffs other than with drawing support for the un and run away. it looks like we are running from cover. support the un. free trade is the greatest way to foster peace in the world and costs us nothing and grow our economy. we'll not need the un. and guys we have to leave it there. >> it is tremendous and i feel

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n this is an empire and they have their seeds of their own destruction. it is where rome was. thank you for watching. number one business block continues with cheryl casone and cashin in. >> president pushing for tax hikings. 56 percent of the americans want the across the board cut in spending. i am cheryl casone, welcome to cashin' in. we have wayne rogers and johnathon and tracey burns and jay layfield. and christian is with us. wayne, who is right on this, the president or those who say we need to cut spending? >> i think the president is wrong in the following sense.

i think the whole philosophy has not worked in three and half years. the government is spending and we haven't had a spur in the economy and unemployment above eight percent. milton freedman. the whole philosophy is wrong. we cut taxes in '81 and again under clinton in 94. and both of those things helped the economy and we had a strong recovery and that is what should be done today. >> all right, tracey, the president's argument here is that he is going to extend the bush tax cuts . now the republicans are saying that businesses are going to get hurt and that is going to hurt the commempt >> that is small businesses and that is absolutely who is getting hurt. the cvo said that 20 percent of our