tv The Willis Report FOX Business May 28, 2013 6:00pm-7:01pm EDT
melissa: monica, don't hold back . >> he is really horrible, but when he attacks the other peopl3 . melissa: we have to go. there you go. that's all the "money" we have read today. we will see becker tomorrow. here's "the willis report". ♪ gerri: hello, everybody. i'm gerri willis. tonight on "the willis report" president obama's says he has done a heck of a job. >> it is open for business. gerri: he will tell you about the folks left high and dry. a dangerous oversight of your tax dollars. government watchdogs not on the job. the markets are on fire, but ho can you make gerriwillis.com without getting burns. watching out for you tonight on "the willis report". ♪ gerri: our top story tonight,
insurance companies not paying up and they should. homeowners thinking may have 3 complete coverrge when they didn't. a growing problem across the country. folks up and down the east coas say they were shortchanged by their insurance companies after a superstar and sandy. now we are hearing reports of similaa issues in oklahoma afte that devastating tornado. this is an important story from owners, even those not directly affected by these recent storms. with us now, lamar law group an oklahoma as insurance commissioner. i will start with you. i understand you have had something like 22,000 claims. how was is going? what is the lateet estimate of the damage? >> well, we do have over 22,000 claims that have been filed ove the last eight days, and the process has been very, very efficient. we are not hearing some other parts that you are related to some of the topics. i would be interested to learn more about that, we feel like consumers are being taken care
of, oklahomans are been taking care of. the military, a day since the day of the tornado. so they could not give in until about three days ago, the insurance adjusters. we have basically an insurance bill is set up, which easily th first time this has ever and that in a major catastrophe where homeowners he come to one place and get their climb started at the first baptist church of more which has been very, very efficient. gerri: boy, you had a big disaster. of course it is early in the process. the insurance agents have been on site for about three days. lots of time to go. the debris removal was about to begin. would you tell people on the ground there who are making claims. what should they get done befor that debris is removed? >> one of the things is that th area is pretty much entirely devastated. these lots are of a large portion of that will be telling
scrapes with enemy being with the city of more . really coming out with a very clear bulletin for consumers to understand exactly how that debrrs removal is going to work in partnership with the mob. they need to get it to 15 to 20 feet of the right of way, and then that will be picked up to. a very efficient process. gerri: so much stuff. so much material that, you know personal effects of people out there. chip, to you, you know, john wa asking what the problems or out there. he is not seeing any. what i am seeing having covered the industry for a long time is insurance policies were rewritten well ahead of the storm because of the kinds of losses that insurance companies have had, from big tornadoes, but thunderstorms, trying to reduce the amount of money that
they have to lay out. jim, what are you hearing about oklahoma? >> it is too early to tell righ now. your nose. only three days away from it. you can't say it's going horribly because the insurance companies have not been put to tested. how quickly and getting money t the policyholders, and what are they doing proactively? investigate and evaluate the full amount of damage. right now all that debris will be taken away. just like you said, content, al kinds of parts of the building. people need to be out there taking photographs and videotap before august taken away is tha is evidence in their favor, not the insurance company's favor. gerri: as you know, president obama was a new jersey, and the state is very proud of saying that they are clearing out claims, $90 a defensive been closed. but is that those story there? >> that is an unbelievable statistic.
when you gonna feel that as the book, is there clarendon, or you'll find is there getting a pay -- paid a part in the insurance companies may save disclose their trying to seek more. we were hearing the federal flood insurance pro has been extraordinarily slow and does not play their -- pay everythin that people loss in the storm. our residents to a business, across the board we hear that and we hear people like getting paid the full amount of money from low one thing may need. the claims a close, yes. gerri: one. [silence] got no money, right? >> and they are still fighting to get more. the insurance company might consider them to be closed, but there not going on in doing
additional investigation. national flood program is a great example of. if you want more yet to submit is want to see what you have gotten when you go through the appeals process. gerri: i've seen you quoted saying the insurance company di a great job of of offering policies. some kind of insurance for thei house. at the end of the day, the you expect those people to be paid out in total? rebuild completely on the basis of their insurance check? >> well, the way it works in know, we believe that the free-market and capitalism of the insurance market merrick's works very well. if people a competing for insurance business that really is the best case rests. and our state -- we are used a tornado, el activity, the may 9
storm, obama's city came throug that very well. we know that we will come through. it is impacted, but there are many different types of policie that are out there. we regulate and license over a hundred thousand insurance agents in the state and local lawmen believe they do a very effective job of communicating that to consumers. when they have these choices that are out there, 80's in their best interest, but we get over 30,000 phone calls a year, million hits a year. this is our first tornado. we just went through one. our one-year anniversary, and take a lot of pride in working with this case by case. gerri: and i have all the respect for what you're doing right now. my concern, as always, is with the consumer and if they are getting the deal they expected and the cover said they expected . of course it is too early to know right now and obama. coed.
>> let me tell you what we did. we brought together all of the insurers that were here that have been here for the last six days, had a meeting of the loca holiday insurance department website. they came in, we talked to them they know my expectations is fo them to take their policyholder in a quick, efficient manner, i the cash in their hands and the we will begin to work with them on a case by case basis. this is up, and we take care of its other with maybe difference and so the other parts of the country. we will do a good job growth, consumers. the insurance companies will be paying the policy of designers. >> i hope you're right that prayer right now everything goe right now,. i've just seen so many examples where consumers have been disappointed if. frankly, last word here see you chips, you know, at only do you have situations where, you know look, the policies themselves are written in no way that is tough to get full coverage because people cannot pay for
full coverage. the deductibles have been raised . the limits of been lowered. what do you expect to be the final story in oklahoma? >> i think you're going to find a lot of people that we partial payments. it is of value policy law states , like a lot of the states that have been very proactive consumer policies. -f you have a policy to your house is so distorted you get t be the policy limits. obama is not that way. changes in policies that people will get a depreciated amount. they will not get the full replacement back for. i expect matching problems and problems that will come out. i hope it does not happen. i have not found that personall representing people all of the country and the unthinkable happened this time either. gerri: appreciate your ttme. thank you. >> thank you. gerri: it is not just insurance companies not giving residents the money they need. in the case of superstar and sa
the victims, the red cross stil has not spent more than one-third of the $300 million i %-. seven months since the storm $110 million sitting in a red cross offices while new jersey and new york residents were literally left out in the cold this winter. the agencies as part of the reason for the delay is the wai and see how the states will allocate the $60 billion from the pro -- federal government and may need some of the remaining funds for families this summer. marocain sandy new jersey relie fund has only spent 11 of its $32 million. the united way, less than half of the nearly 10 million. let's hope, let's pray this money is to the people who need. those folks need help. that's for sure. moving on. waste, fraud, and abuse running rampant in top federal agencies? we now know. that is because five cabinet
agency inspector general posts are empty, vacant, no one in th job. some have been vacant for years. with more on this, president of citizens against government waste. i laugh, but it is not all funny . what is going on here? >> the message has not nominate people for those jobs and in several cases where they have nominated individuals the senat has delayed the nominations for various reasons. the defense to turn a permanent and sector general and a career person in the position is the protection of that job and the risk that the ig will take the house oversight committee identified more than 75,000 accusations that could face $67 billion a year that not bee implemented. they've opened and implemented ig wreck emendations begins the
dawn of a permanent id. gerri: all kinds of things stil angry about year. these cabinet agencies that we're talking about thaa don't have an inspector general represent 58 percent of the u.s budget to 58%. i mean, come on. this is just ridiculous. these of the people we're supposed to be watching. know what stock. you need somebody watching ever shoulder. and we're seeing time and time again that job is not getting done. this said points the finger at the white house, the white hous of the senate. to solve this? >> both immobile more the administration and the senate, even though the secretary of th treasury is not an idea, but ge twice as many questions as tim geithner, the former secrete -- secretary of the treasury.
i'm so tired of hearing stuff like that. there was a report any may have said. we wouldn't save 67,000 -- $67 billion. what will make this change to make anything about? >> congress has to get on top o the administration and demand that thess things be sent up. senator jean chretien in new hampshire has been asking the administration this in the map. tell the administration in february. all obama administration appointees. first, second, and forth for unimplemented recommendations. tens of billions of dollars tha could have been identified.
>> taxpayer dollars that could be saved. thank you for coming in. >> thanks. gerri: we have more to come thi hour including good news on the economic front. where should you invest and boost your portfolio? the answers, and regulators are finally looking into dangerous troubles with elizabeth car and truck engines of. what you need to know next. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we arned a lot of us have known someone who's lived well intoheir 90s.
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gerri: federal government finally, finally revving up an investigation into the 4-f150 pickup trucks with ego boost engines. if you watch this show you woul have known this was coming through because earlier this month reported consumer complaints about ego booster engines that shaker lose power during acceleration. that is a complaint. al has been done about it from
border the federal government. with more to -- with more honest , as does it all of the national legal and policy cente if perry got into the show. we have been talking about this for a long time to revise the federal government sells low tax ? >> hi. well, i know. they spent about -- there have been about 100 complaints. they shudder and the acceleration. a lot of the problems have been coming during humid or rainy weather from what i understann, but it has been a problem looking at the ford f-150, but it would expand, i'm sure, to other ford trucks that use that eco boost engine. so many models. it is all over the place. very popular engine. is there any chance we could se a recall the think? >> i would expect to see every call, but what we really have i a problem that is emanating fro an epa it is putting sets stric requirements on fuel standards
that manufacturers are having hard time keeping up. the technologies are not ready to meet the rising requirements. so it seems like these cars are hitting the roads before they have been properly tested for safety and before they're actually ready. gerri: a great insight of years. these in stringent standards from the epa coming into play, and the companies cannot keep up , so they put something out there not really knowing if it will work and not. people were telling me, hey, this is not a problem because i is only a problem during acceleration, what if i am getting on the expressway and here goes mike eco boost engine and it slows down and stops. >> it is -- it is a deficit the concern. and, you know, we have seen various types of concerns, particularly with the most favored the electric vehicles,
of the manned batteries. it looks like we have the same pattern read these things just hit the road before they were properly tested. again, just a pattern of the ep requiring more and more, and it is really going to come back to cost consumers because all vehicles are going to go up in price as these manufacturers have to come up with technologies to meet these rapidly rising cafe standards. gerri: us into this exchange i had last week about this very topic. gerri: he told our producer thi is the safety risk. how so? >> well, it depends on what goe on. if the engine completely shut down the highway, that is a safety risk. some of the things, the stuttering, a good driving experience is something like that. that's a different animal. the car is leaving you completely stranded, its reliability issue. gerri: if a stop for me while i am accelerating onto a highway
as we considered a safety issue. they're making somebody behind me. you're saying that this lack of interest, ability to abide by safety standards is happening i number of categories? >> systems have been some littl conflicts in the past. did not want to touch anything involving any type of lithium ion virus. we've seen that. seems like they have been cleared up, but there should be no hesitancy to quickly act on any type of safety concerns, an you are right. this is obviously a safety concern. i am sure that they will work o it, but they need to be right o this. just because these engines are deemed to be energy-efficient. gerri: that is no reason to let them go, that is for sure. we need to make sure that
drivers are safe in their vehicles. thanks you so much. >> thanks.3 gerri: later in the show we answer the question, how you do that? tips on making money during thi housing loan. and how to get the most bang fo your investing balk? my last deep, next guest will give you one of the best strategies. stay with us. ♪
♪ >> from our fox business studio in new york, here again is gerr willis. gerri: another record for stocks , the dow up to it -- triple digits. the bears have been saying for some time we are due for a pullback, and that includes my next guest. say it ain't so. you know, you think there is a number pullback coming? >> well, look. pullbacks are normal course is business in both phases. this year, not only a 10% or 5% we have not even had three days in a row where we have been down . way overdue, and something is happening right now where i think it is starting to wake me a little bit. direction of interest rates. they're starting despite higher and bond markets starting to have lower. the 10-year has gone from 14 to foxbusiness.com and that 30 yea changed as well. still low, but if the markets depend on interest rates,
they're going the wrong way. gerri: you believe that we pay the full price for all of this intervention from the fed will result in very high interest rates. how much could they spike and how quickly? >> well, i believe -- i use, i words manipulated and rage. not just here but in japan and also europe, overseas, just about everywhere. simi, that is not a free-market. to me, when the cat gets out of the baguette think they can o much higher, and the fis and th six is. gerri: well. >> the economy is doing great. the term being uses steroids. coming from the winds of one man , and all i know is the last t sie he did is we had a housing bubble. the last time we had easing money before that was ing geens the internet in tech bubble, an i am not so sure that this is well. still in the sweet spot costell
kate. gerri: jerry, and just rates ar five to 6 percent is what you'r saying. >> at least. gerri: is directly that is not terrible, but it will feel painful from where we are today. >> is remembered, investors as well as the market is based on two words go where used to. and the market investors are uses 0% rates into% and 3% on the 30 year and of a sudden it is 5-6, look out, and the same goes for the housing market which is debt that we providing a nice little tale wind for the market and economy as well. gerri: stocks trading at at pf5. seven. that is not too bad, right? >> not the end of the world, bu there really is based upon the low interest rate. my worry is the first quarter the market was a double digits. sales, ing gowth, and earnings a big fat zero. if that continues that means valuations are going higher, an nothing is helping the market.
gerri: welcome back to "the willis report". coming up, how you can make money off of the latest housing boom, but new reports today tha the chinese hackers gain access to designs of more than two dozen extremely sensitive and advanced american weapons systems. the white house says president obama will raise concerns about cyber security when he meets wiih chinese president in
california next week. but eaworier today on fox news america live lou dobbs said the administration's response is s siply not good enough. >> they have been stealing sinc the clinton administration with both hands. the administration of bill clinton and george w. bush and barack obama have all chosen to avert their eyes. the result is right now at least , at least 4-$5 trillion in technology from a and our knowledge base, civilian knowledge base has been transferred to the chinese. it is explosive, and it is %-destiny.if you will, chinastr gerri: good stuff. he joins me now. what are you talking about? >> we will continue to follow-u on the pentagon report concluding that cyber attacks a hacinst the -- well, from chi can be considered an act of war as we know, but this administration has not chosen t take any concrete steps, and no
one in congress is stepping up to demand action. tonight we will be talking abou cyber security with a four haci former star ins former four-sta -- four-star general former vic chief of staff and fier news analyst -ktie mcfaworand and former democratic congressman and fox is contributor dennis little interest in solving this critical, critical issue. $400 billion per year is the estimate of losses. that is the estimate i say at least doechle it. gerri: great stuff. cannot wait. you will see you when a little less than 30 minutes. thank you for the help. gerri: thanks. gerri: hope for housing continues as n fi evidence poin to a stronger recovery. consumer confidence and a 5-yea high as houses' price -- housin prices surged. how you make money? for jns ning me now to ceo and
founder of the zero were 12 network, the real wealth nesigok . david michael veiny, ceo of megalomania financial group. cathy, to you, the numemers i a seoseng, housing prices up almo 11% year-over-year according to -ky schiller. we are seoseng in california flippers flipping homes at levels that rivl 2005. just how strong is this market? >> well, it depends on where yo are. in california it is hard to get a property, so you have to be careful you know what you're doing and are competing as companies who flip full-time. if you're trying to do it part-t sie it is going to be difficult. gerri: david, to you. i'm sorry. finish your thought. >> iricust want to say, lilac a real-estate, it's a long-term investment. if you can get a 6% reventrn ar better on their rent and all th sie, that is where you're gns ng to make the biggest bang for your buck.
gerri: i like that. are your customers interested i playing this? what are you telling them about how to do it? >> from an affordable lease standpoints of the individual bunieng a home for themselves, uc today for the clients in price and the affordability fro the state point of financing, rates at below 4 percent of fantastic. from an investor's standpns nt think this is where there is caution still warranted. looking at the amount of money that the fed is putting into th system, the recovery that we have seen in housing is largely dependent upon $40 billion per month in some finange bngs to r without theft steel have a mortgage-security market drifte in the minutes of 2 feet and complete the defendant to on th fed for financing. so when we see a change in rate
to bunieng and selling will wil be sustainable and not. at least you will know how is stance in the fifth of the 54 some people believe this is the vote is your wreath? we have another case for prices take another bite down because there's nothing for sale. you cannot find a house to buy. is thisricust the tiect that th is no inventory out there that is driving this prices to this >> david is exactly right. the market is so manipulated that it is hard to know at the plate. i say don't try to fight the government. they have for an engine that defeat inflation, and they have an agenda to have fair housing market siprove because hbs. and so if we know that inflation is probably going to come from among one of the best hedges against it is realistic, espege bally leveraged realrry.state.
"property firth the amount of time, all that out, it could work out in the income of the 5 feet of trying to get overnight, increases in price to and that is vek. riskyrec6 this the end heart, like your thinking on the long-term holding and prwill makes sense. another way to do this obviously. >> l, loking at the charts for four months of offensive moves . coming in at these prices could you have probably more downside than upside will look at in terms of the general equities market is insider selling. the tremendous amount of litigation that the above the 41,0iss to one in fnfe of liquidation of the shares for
fifth believe we see weakness in its general equities face, and i am not sure from a technical perspectnfe if we would be interested. take a company like sherwin-williams the fantastic movement freed again, you are buffett of the fifth all-time highs that had you make money bunieng highly. gerri: on solely different found. osether of you, consider a the theft occurred feel i cax isot tayou t by som3 thne dnieng something violent, would you do that? does. >> have would give it plain doubtful energetically. a lot of pewill i donel?. you depend upon the deal. it is a bargain would buy it. gerri: have a feeling you're going to say that you would buy it, two flights as pragmatic as i death, fiinfnces and i think of my kids and i think have a lot of explwouning
to do gell to death with amanda and i sure it will be worth that hassle to me. so on i non-fiinfnc you of the self. gerri: there you have it 50505 long. now we want to know with tieith . here is our fustian. would you via nomura fed the theper ohadurred five blonde. the form of life inside the frame. i will read both of the end of tonight show. of the come back, the irs putting a new rules on what you can and cannot consider part of your office. level explain. another e e movse ship disaster. foy fing an early end to people's vacation. but a passenger bill of rights protect them? ♪
gerri: another day, another e e movse disaster. passengers are heading back, after a ferme cut theerm loyal caribbean grew short. but other passengers rights being protected? with more on this earth, a maritime attorney. thank you for coming by. so they did this year, four of caributean is gnfing passengers full refunds for four of their tieerm and a certificate for geture cruises. >> i cero caribbean and major from -- cof living, but i think they got it right. i with the plot them what they did. if you compare it is really a night and a scenario. gerri: every day it is another difip, some protedem, and of the industry has put forward their own pass their bill of rig bs.
but mitt reloaded from its a year. the essential needs are not able to be addressed. the rig b to a full reftectd. mechanical problems or a partial reftectd for trips cut difort and finally the rig bs of transportation if fifth increase since early because of mechanical issues to read what do you make of that feed back this the stuff go far enough? how would you change if? >> it is a good start, but you make a g, lod wife fled to the in- cstk.str ko m is regulating itself, and so there is a glaring holes. of that. the coast guard and efta have jurisdictional issues. this is a lobbying someoup and the cruise line itself. the interinftional assoc you gerri: thank you. but the penalty for not abiding by this of life here for of lamb hoff, is that you do not have your in.
>> it is a prerequisite of. thank to you donel? get to gro gerri: what should happen? people are really frustrated with this. i sign my life away. he by crews you have to sign multiple releases. neve3 a never, never. and then this happens and you have no control. >> it really is a consumeing b3 rig bs issue. we even have a right to bargain. they tried to ou e that as a tr, lopfor n- t, lol. forttectately the law does allow ways and you will see a lot of that tested with the carni triumph case? gerri: what do you do? if there are p3 thple out there who say i do not want another chris. chris. out of money. of? media don't want to hire an attorney.
can you call then th >> you probatedy can call a mob. i don't know much of what else. any t sie anything goes wrong on the high seas there are a lot of good lawyers, and that isfor n- consomeess is not havey power. gerri: thank you for coming on >> think you for having mrd t gerri: still to comirs my "2 cents more". and did you save both t sie and money when it comes to next year's taxes flatly of the feed affleck both you and your ldayt f, lot. stay withosts. ♪ bloodbath
♪ gerri: you know, aid is never too s, lon to start planning your 2014 taxes, and the irs is giving you my new method to reclwoum the home of this tax de- cction. will you get a bigger return using the n fi mporel? tellosts a eut this n fi home office deduction. >> it is new for this year, and what the record keeping is, it's enormous. the irs came up with this new methpor that they say is >> it le re the problem is the maximum deduction is $1,500, and a >> it le way that it works. not gerri: wait, the maximum deduction.
s f dther him. what most people are already doing. it basically a pre ibed rate which is $5. the may adjusted in the future, but the maximum squarth3 is 300 square feet. $1,500 is not used deductions. gerri: let me tell you. pewill stuff into that. the average is wh600. can i do either one? s f you have a choice, but it is year to year. wwichever one youostse, and you caboot change it for that year. you need to stick with it, but what i always say is, i am all about the numbers. you have to run both ways and see becedsse me5 is with the irs says per square foot. the york, new jersey, very high areas are you mig b havthis t3 >> it ty of large mortgage, property taxes and utility bills, the percentage of the homeless youostse is going to be well in excess of $1,500. gerri: do yyu think that this
meansostltimately they will go to some method like this where that deddo yotion is smaller thn pewill >> what they are trying to do a is making it easier for some pewill is easier method and possibly not realize that they are pudifing, you know, verses pushing all of these extras into the office deddo yotion whn you do the long form method. what they are thinking is maybe p3 thple will take the easy road. gerri: that is or is going on here. let me ask you this becedsse i know that the home office deduction is often a red flag and can attract an audit. g calculation which results in more than $1,9pb
about something -- you should not be worried about doing something you are allowed to do. gerri: what is your biggest worry? >> the biggest worry is probably taking too much in charitable contributions. i think there is a very easy calculation to take a look at and if you're making hundred thousand dollars, that is small, but if you can substantiate because maybe you're a retired person. 100,000 as of pension income, but you have a huge portfolio sitting there for 5 million you could take 50,000 charitable deductions. substantiated. gerri: document, document, document. good to see you. >> nice to see you as well. gerri: we will be right back.
these homes were sites of homicides or suicides. would you buy a home where a tragic death occurred. here is what you wrote. >> if in a prime location, and the price is insanely cheap yes. >> i'll take a pass, i don't know i might do it, we asked the question on gerri willis. com, 30% said yes, 70% said no, new jersey officials aflawed fact that 95% of insurance claims in wake of superstorm sandy have been settled, but 1 in 4 of those claims have resulted in a no settlement. 100,000 claims got no money at all, some insurers are over estimating the aim of flood damage, and underestimating the
amount of wind damage, the government pays out flood claims. and private insurers cover wind damage, which may bode ill for victims of the mega-tornado in moore, oklahoma, saying they have been limiting their coverage. now, both andy and moore tragedy should be a call to action for homeowners, you may think you are safe because housing prices have come down but you need to consider replacement value, not market value, to find out if your home is under insured check ought acue coverage.com. that is important. coming up tomorrow, how many calories are in that big mac or that subway sandwich? you grabbed over the weekend. the results of a new study that shows how much we under estimate
fast-food calories, that is it for tonight's willis report, thank you for joining us, have a great night. lou: good evening, thank you for being with us on what has turned out to be a record setting portfolio on wall street. last week there were endless prediction z of pullback or correction. following market's first 3 day losing streak of the year. but today a broad rally, and nothing but bullish sentiment. dow jones gaining 106 points, ending at a new record high. s&p up 10 points, closing just 9 points below its all-time record. and the nazdaq up 30 on the day, stock pricing surging after central banks reassured