the 100 largest cities in american were underfunded by $99 billion. standard & poors said the shortfall for states in 2011 totalled more than $830 billion. >> in the late "90s, early 2000s, pension funds were close to 100% funded and generous benefits were given during the budgetary recessions. some systems is it contributed less. >> moodies says taken together the states have $0.48 for every pension they promised. pensions guarantee a monthly payment for life. if the assets of the plan shrink to nothing. as detroit may learn bankruptcy is no guarantee that cities can avoid paying pensioners. that's a reason charleston is seeking steps to cut costs. >> we were heading towards bankruptcy if we stayed on the course. the city is about to impose a sales tax and put police and fire hires and a state peption -- pension, shut down fire stations and is charging everyone in charleston a $2 a week fee. unless they can reduce benefits taxpayers will have to foot the bill of underfunded pensions. >> in 2013 every state had one bill that addressed some sort of pen

they are underfunded. there are 63 vacancies. it is a shame. i was upset to learn about the slaughter of the elephants. gasparello, was so moved that she wrote a poem unbeknownst to me. i will read it to you. it is called "fade to gray." they walked in line, trunk to tail to their watering holes innocence drink the water 41 trumpets sound bellowing, they all fall around the elephant cost child is dead -- the elephant's child is dead. you can get that poem online. please think about how small a world it is, how hegelian. denied seeing one of natures most extraordinary creatures tomorrow. to onei am going to talk of my best friends about life in general, how we live now. he is an international lawyer and a fabulously wise, thoughtful, and engaging man. i think you will enjoy what is coming up very much. >> "white house chronicle" produced in collaboration with whut, howard university television.and now, the program host, llewellyn king, and cohost, linda gasparello. >> hello again, and thank you for coming on. i

it is about knowing what your plan is even if you are underfunded, know what the plan is.ity do you have in your home? those are all things that have driven to the planning process even if you are underfunded in your 401(k) or ira. gerri: great information, we appreciate it. time now for a look at the stories you are clicking on tonight on foxbusiness.com. the dow is back over 50,000 after encouraging economic reports from china and japan. carl icahn giving up his takeover fight for dell days before shareholders were to vote on the buyout offer from the company's founder michael dell. he thinks the bid to take the company private undervalues the business. americans cutting back and using their credit cards in july for the second straight month taking on more debt to buy cars, borrowing increased 10 and a half early in dollars to a record high $2.9 trillion. luxury retailer neiman marcus being sold with advisory board with the final deal set for the end of the year. i bring 79 stores. those are some of the hot stories right now on foxbusiness.com. still to come, my two cent

we spend each year-- every school is underfund p.h year we spend $7 to $9 billion on textbooks which they are obsolete when you buy them. >> stephen: when i was in high school the only thing that kept me getting stuffed into my lock or a daily basis was that it was full of books. how am i going to-- ( applause ) you want to lighten those backpacks. they're far too heavy. and all that steers money we're spending on textbooks, bu put it into digital, into resources students can use right now. >> stephen: he pushed for four-year-olds, a national program where all four-year-olds will have access to preschool. >> absolutely. >> stephen: why do you want to take our children away from us? ( laughter ) they are at their most adorable. and how do you pay for something like that? that's an enormous, enormous price tag. >> it's the best investment we can make. longitudinal studies, 7-to-1 return on investment. when you have high-quality early childhood education, less crime, less teenaged pregnancy, more high school graduates, more folks going

when the republicans took over the house in 2010 they decided theignificantly underfund sec. the problem is if we begin to get tough on these people, they will -- they will litigate. they have resources beyond what we have. a couple of the cases can exhaust us. thing i was hoping we could have done was to get the sec the fiscal autonomy the bank regulators have. can you give the woman in front, second row. .> go ahead >> peter ackerman. seven percent of all mortgages were held by gse's. today 90% held by them. of all americans own their homes. my the question is, what are we trying to and >end? what are we trying to accomplish as a country with a housing policy? >> that is the question. you heard me say i thought one of the most effective things we did was putting in the conservative ship. i remember talking right as we were doing that and got nothing but support from them. we both said and i said this is a timeout. we cannot straighten this out right now in the middle of the crisis. me -- nover dawned on one was saying this is a great system. public support for private profi

the community exchange commission are both previously underfunded. we gave the cs fbc a lot of authority. a partisan difference. when the republicans took over the house in 2010, they decided to underfund. the problem is that what they tell me -- i'm just repeating it, is that if we begin to get tough on this people, they will litigate. and they have resources beyond what we have. and a couple of those case s ca sort of exhaust us. one of the things in the bill is give the sec the fiscal autonomy that the bank regulators have. we couldn't get it done. gentleman in the back, a woman in the front here. can you give the woman on the front the second row? >> i'm peter ackerman. since in 19 0, 70% of all mortgages were held by gses and 64.5% of the americans own their own home. and 65% of all americans own their homes. my question is to the two of you, what are we trying to end in the interim? there's been a savings and loan crisis and what happened in 2008. what are we trying to accomplish as a country as a housing policy. >> that is the question, either

result illinois ranks at the top of underfunded public pensions in the u.s. last spring the illinois legislature tried to solve the problem but then adjourned without fixing it. that prompted pat quinn to withhold paychecks and create a committee to find a plan to plug the hole. >> i know we're moving slowly. but we are moving ahead, and reaching some agreements and making compromises. >> reporter: among the possible compromises are cuts in health insurance benefits and cost of living increases to future retirees. but an union representing state workers say those options are unconstitutional. >> there are a number of court cases that have tested the language, and so far any attempt to cut those benefits are unsufficiently. >> reporter: illinois' image is getting bruised. >> the government has made met with ceos of major companies saying if the state does not get it's financial house in order and address the pension crisis they will no longer invest in our state. >> reporter: while some rely on the prospect of getting back pay, judy said at a the cut to her re

of nuances from the health care ordinance will tax an overloaded and overutilized and sometimes underfunded and understaffed department. i'm concerned ed wait times will increase, as they provide access to preventive services sufns immunizations and health screening, i'm concerned without these sss, clientele may not seek care until they have a crisis in their life. it is unclear to me how mandating an uninsured person to purchase health care [inaudible] those less fortunate are not limit today the marginalized and people who have become a casualty, these people will not be able to afford the co-payment and is deductibles from the new insurance exchange. the loss of healthy san francisco would be a great disservice to the participants utilizing it, as the name imply, healthy san francisco promotes good health, all san franciscans have a right to affordable health care, let us maintain a healthy san francisco by not eliminating this program and by keeping the employee spending requirement by protecting the health care security ordinance. thank you. >> thank you very much, next speaker. >> go

we are seriously underfunding investments in education, in infrastructure, in basic science.hat's the seed capital that produces growth. you know, we had these slogans where people said it's not about big government or small government. it's about smart government. right now what we are doing is stupid government. >> when you look at how petty and stupid it is in washington, and sometimes there's a news event, for example, more than 60 people killed in kenya, terrorists attacking a mall. and the al qaeda leader al zawahiri said his's encouraged his followers to spent more on security, in order to, quote, lead them economically. does this telegraph as a rule 234esh89. >> people seeing we're vulnerable, we can't get our act together. i wouldn't worry too much about zawahiri, he hasn't been able to -- the guys that planned al qaeda central, are -- >> he's trying to get something going. he knows the only thing he can do, really, is try to encourage somebody out there to walk into a mall, because he can't plan any of it. i hate to put it this way. if we spent more on security righ

the securities and exchange commission and other regulators are perpetually underfunded and also facing pressure from wall street to weaken their efforts and their prosecutions are very rarely successful. >> is it accurate for some of these critics to say perhaps we need to do a better job of enforcing the laws on the books as opposed to writing entirely new someone in. >> we do need better laws and new laws only because the financial system is becoming more and more complex. and writing laws allows us to explore how they've become complex and to rein in that complexity or at least regulate it, but it's true that we also don't enforce very well what we already have. a lot of regulators just aren't incentivized to find wrongdoing. we have a wristle brother rule that's part of dodd frank that still hasn't been finalized. you have the structural issue that a lot of regulators are paid $50,000, $80,000, maybe $100,000 a year but the bankers that they are regulating are being paid millions of dollars year. so there is a class system, quite literally a class hierarchy in wall street regulatio

they have over $100 billion of underfunded pensions. that doesn't even count the city of chicago, and cook county. and there are going to be big problems in the muni bond world, puerto rico, i could keep going on, and i think the investors in that market think that the federal government is going to bail them out, because they bailed out gm. but i don't think that's going to happen. i think it's going to be real losses in the muni market. >> let's get to a couple of your stock picks. two companies that are hardly broke but maybe a little bit unloved. let's begin with ibm and microsoft. why do you like them both? >> because so many people don't like them. they're very much out of favor and very cheap stocks. trading for about eleven times forward earnings. both of them. in a market that's about 14. people think that microsoft is going away and it is not. microsoft has a wonderful cloud business where they provide services to people as big as oracle. try and write an e-mail without using word. send a word document with something other tha

time away from a house or representatives and they will be getting this of both the bad with the underfunding of obama care. >> this will give them very little time to get something passed to keep it past monday. >> coming up on the kron 4 morning news. they are a popular show of toughness in the military. but now, the army is saying that no more to visible tattoos. we will have that story for you. >> a fire breaks out off the field at candlestick park. there are concerns from one victim that say that the security. >> here is a live look outside showing downtown san francisco. the temperatures are about 55 degrees. >> [ maragno ] if the car was invented today, it would run on the most affordable energy source available. it would charge overnight. every morning, you'd wake up with a full tank, ready to go. if the car was invented today, it would be the 100% electric nissan leaf. with over 200 million gas-free miles driven and automatic hov lane access, the question isn't "why electric?" it's "why gas?" [ male announcer ] the 100% electric nissan leaf. nissan. innovation that excites. now get a

kaiser today we're going to talk about young people those to whom we bequeath there's a burnt out underfunded hollowed out dead ridden drugged out old and old financial system pension system markets and infrastructure stacey her yes max we're going to talk about a generation the all should just do or runner because mom and dad and grandpa and grandma have left you with a big bill for all of their hollowing out hold the economy hold jobs. you know it's like back in the dust bowl days you know they had woody. guthrie woody guthrie you know going around town to town with a little guitar talk about you know shellacked bangle and do gold well that's what we're going to talk about you know i was inspired by looking at the story from los angeles where they're selling three billion dollars worth of bonds to fix potholes now there are so many potholes there because they actually haven't fix the roads for up to sixty years in some places so they're piling on taxes in order to pay for all of these past few decades where instead of spending a very small amount to keep the roads maintained during the whol

the education blob says schools are underfunded and kids do better if only we give them more money.gone through the roof all the rest passes a budget ts course they have flat wind to a the bottom. also to demand smaller classrooms but they did not increase performance. so they spent billions with smaller schools and that did not help. i give gates credit he spent his own money than when he found no improvement he tried other ids. in contrast with the government blob spends your money that would it fails they continue in the way. build business can get away with that that is why almost every service america has done better, faster, cheaper , but not education. a monopoly does not improve. course american parents especially those in the suburbs think their school is pretty good but because there is no competition they don't know the truth. international tests show even the good suburban schools where mediocre compared to the rest of the world but with no ompetition parents don't know what their kids might have had. few of us can imagine the possibility and tell me see the options. whe

the education blob says schools are underfunded and kids do better if only we give them more money.ne through the roof all the rest passes a budget this course they have flat wind to a the bottom. also to demand smaller classrooms but they did not increase performance. so they spent billions with smaller schools and that did not help. i give gates credit he spent his own money than when he found no improvement he tried other ideas. in contrast with the government blob spends your money that would it fails they continue in the way. build business can get away with that ths why almost every service america has done better, faster, cheaper , but not education. a monopoly does not improve. course american parents especially those in the suburbs think their school is pretty good but because there is no competition they don't know the truth. international tests show even the good suburban schools where mediocre compared to the rest of the world but with no competition parents don't know what their kids might have had. few of us can imagine the possibility and tell me see the options. when

the benefits that are afforded people it comes from that could that states is in type good andd underfundedir pension obligations it has to do with how states have gone about funding their obligation. neil: scotty, if that is the case, onus will fall back on the municipalities and the states they all share the blame. everyone should have to do something, union cult more and leaders have to not keep blaming the union? >> listen, i will give unions the benefit of the doubt, when they first started they were good, out for the american worker. and made sure we had a healthy workplace, this is 2013, we don't live in st. claire a 's jungle any more, all union has done is serve as a front for democratic party, and put in policies that bankrupt large municipalities and idea of having a peptio a tension in --n in 2013 does not exist unless you are a government employee. neil: ravens, is not different from katy perry and bill clinton. to sell this, is law already royally plucked. >> scotty, you say this thing is for the birds, let these ravens play ball. >> listen good news in this, i think we alread

. >> reporter: as a result illinois ranks at the top of underfunded public pensions in the u.s.ast spring the illinois legislature tried to solve the problem but then adjourned without fixing it. that prompted governor pat quinn to withhold legislators paychecks, but still the committee still has no plans. >> we're moving slowly, more slowly than i would like but we're moving ahead in reaching agreements and making compromises. >> reporter: cuts in health insurance benefits and cost of living increases to future retirees. but an union representing state workers say those options are unconstitutional. >> there are a number of court cases that have tested the language, and so far any attempt to cut those benefits have been unsuccessful. >> reporter: as the pension battle continues illinois' image is getting bruised. it's lowest in the nation credit rate something a pati pariah ine business community. >> business and companies have warned them if the state does not get it's finance had order they will not invest in this state. >> reporter: public employees are not as confident abou

these are problems that need to be addressed right now and unfortunately, many are underfunded. that. but they need to get moving on these topics right now and get to the bottom of what caused them we still don't know who weeks after the nasdaq issue what caused that. >> all right. all great points. thanks for joining us. >> coming up next, more live coverage of the shooting spree at the navy yard. >> plus the rally on the street losing steam in the final hour. [ male announcer ] what?! investors could lose tens of thousands of dollars in hidden fees on their 401(k)s?! go to e-trade and roll over your old 401(k)s to a new e-trade retirement account. none of them charge annual fees and all of them offer low cost investments. e-trade. less for us. more for you. and all of them offer low cost investments. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) pur

system which obviously has a large role to play in this crisis then you see that many agencies are underfundedhich doesn't help their retake of activities which is also so highly needed. >> nsf and other agencies have been working for many years but it does seem that many things have not improved, in fact it seems to get worse not better. why should donor companies keep investing money if that's the case? >> because it's about people. if you look at an average family out far away from the capitol, like subsistence farmers, are subject to all kinds of diseases, we have malaria. every child if this country gets four, five times, malaria every year. >> ellen thank you for joining us. the humanitarian issue is one issue, obviously security is another, people here in bangi, tell us they want a legitimate government, one that can provide elections within 18 months but also to keep them safe from what they say is looting and killing which is still going on here. >> nasmin nageery, thank you. >>> in japan, radiation levels of the stricken fukushima plant have risessen to the highest level since the ts

just wake up like this, this has been happening for years and year, now illinois is single most underfundedy, they need to figure out pension reform. something needs to be done. >> they never do they look for scaling back benefits, and no one as a good long-term plan for dealing with it republican and democratic governors and mayors, have found a way of issuing bonds or special municipal notes that get you through the hump but now we're at the hump, and we're in big trouble. >> we need to see real reform, i think that starts by raising require am age, it starts with -- retir retirement age, and increasing contribution, we need reform, i'm sorry, they are scared of unions but that is unfair to taxpayer. neil: always young people saying raise retirement age. michelle thank you very much. >> thank you. neil: if you think our conflict with syria is dying down, a a resolution is coming think again, investors think this will blow over and f thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're

this is not one where you just drag the military in to a conflict, especially after he's underfunded it with sequestration and i think he's having problems asking the community just as he is with his support in congress because he has an unexplainable policy. now chemical weapons used before. we know that over 100,000 people have died and just now turning to the case and should have been making the case and certainly working on when's obviously a devastating conflict that's happening in syria. >> you saw those video clips that came out yesterday, very disturbing. really hard to watch. did that have any influence on you or do you think it will on lawmakers in washington? >> i think certainly this is a devastated tragedy. and you see the affects here of assad's brutal regime and killing its own people. you know, certainly we have known for a while, 100,000 people have been killed. but the president needs to bring this to an issue of an international community. this is not one where you watch a video and then you pull up, you know, battleships and began to engage in the conflict. make y

i think really the issue is that california underfunds education. we know that calendarle is toward the bottom in terse of what it spends on per pupil education and that's really the problem. shifting a little bit of money from the top performing schools won't hurt them as much as it will help the underperforming schools. the underproblem is that all of the schools need more money from the state and that hasn't been there for years. >> in vermont, back in 1997, the legislature passed a law called act 60, transferring tax money from of a fluent districts in vacation areas, people with second homes, very rich areas that didn't have that main kids to go to school and moved the money to less affluent, urban and rural skills, trying to create equal access to education for all. i interviewed them back there. john irving said that what vermont was doing was marksism. he was so offended, he went out and helped start a private school for his kindergarten age son. if we start moving that money around, don't we risk losing some of these kids and having kids le

scales of justice work equally for all in the criminal justice system is not simply a pipeline from underfundedercrowded jails. it requires vigilance. >> the vigilance the president is talking about is desperately needed. because there is a crisis in our justice system, a crisis we all must address. in 1971 president nixon launched a war against drugs. at the time there were 300,000 americans in prison. 300,000. that number then exploded to more than 2 million. that's a 700% increase. and that increase comes primarily from the minority population. it's been 150 years since the emancipation proclamation, yet today there are more african-americans living under correctional control in prison, in jail, on probation or parole than were slaves in 1850. just think about that for a moment. in some states blacks comprise 80% to 90% of all drug offenders sent to prison. 1 in every 106 white men go to prison. but for black men, that number is 1 in every 15. this disparity flies in any face of all the facts of drug use. a study by the institution of drug abuse found white students use cocaine at seven time

we are seriously underfunding investments in education, in infrastructure, in basic science.at's the seed capital that produces growth. you know, we had these slogans where people said, it's not about big government or small government, it's about smart government. well, right now, what we are doing is stupid government. >> and when you look at how petty and stupid it is in washington, and sometimes there's a news event around the world that puts in perspective, for example, more than 60 people killed in kenya, terrorists attacking a mall, raising a lot of fears about soft targets around the world and here in the united states, the al qaeda leader, ayman al zawahiri says he's encouraged his followers to spend more on security in order to lead america economically. does all the fighting over budgets telegraph an economic vulnerability? >> i think people see that we're dysfunctional. they say that we can't get our act together. we don't have a strategic plan. i wouldn't worry too much about al zawahiri. he hasn't been able to orchestrate anything in years, that al qaeda central

desperately searching for the metaphor call glass slipper to keep the bureaucracy from turning into an underfunded pumpkin. so far tonight, little compromise. everyone is preceding as if the first government shutdown in 17 years is virtually inevitable. james rhodes is here. he will look at who will be affected and how. ed henry tells us what the president is and is not doing. we begin with chief congressional correspondent, breaking news from the capital. >> reporter: good evening. with time running out, the senate continues rejecting house passed bills since senator leaders are not negotiating, house republicans continuing hammering away at obama care. >> we're going to move here in the next several hours to take the senate bill, add to it a one-year delay of the individual mandate on the american people and get rid of the exemption for members of congress. >> the house is going to take a position today reflecting one very fundamental principle that our country stands for. no special treatment for anyone. >> reporter: late today president obama fired back. >> one faction of one party in one hous

desperately searching for the metaphor call glass slipper to keep the bureaucracy from turning into an underfundedlittle compromise. everyone is preceding as if the first government shutdown in 17 years is virtually inevitable. james rhodes is here. he will look at who will be affected and how. ed henry tells us what the president is and is not doing. we begin with chief congressional correspondent,

and the unions are not to blame for the fiscal trouble of state and local government nor for the underfunding of their own pension. there is absolutely no correlation between those states where public sector workers have collective bargaining right and strong union and state -- in fact, states that allow public sector collective bargaining recently had 14% deficit compared those states where public sector collective bargaining was not allowed. they are a 16.5%. the biggest problem with the pension and deficit don't allow public sector collective bargaining like texas, north carolina, nevada. what that account for the ballooning state budget deficit. any -- >> you're making a speech. i need you to make an opening statement. >> yes, sir, your honor. of course, your honor. the deep recession in michigan in 2008 collapse of the housing market were to blame for the trouble the state budget are having. not the workers and their unions. rising health care costs both public and private sector workers. not the fault of the unions. they deliver significant benefit not just to their members, but to thei

the education blob claims schools are underfunded and kids would do better if only we'd give the schoolstle more o money. this trap shows the absurdity of that claim. spending has gone through the roof. while test scores have barely budged. the scores are those flat lines at the bottom. the blob also demanded smaller classrooms and it got them, butr oops.sroo smaller class sizes did not increase performance. bill gates spent billions building smaller high schools. that didn't help either. i give gates credit. he spentat his own money, took measurements and then when he found no improvement, he triedey other ideas, like sell con. in contrast, the government blob spends your money and when theis experiments fail, they continueo them anyway. no business can get away with that. it's why most every service in america has gotten better, faster, cheaper. but not education. monopolies don't improve. of course, american parents, especially those in the suburbs, think their kids' public schools are pretty good. but because there is no competition, they don't know thy truth. international tests sho

rand who is author of the books, beloved by college sophomores wherever literature classes are underfundedo mention of the