tv The Willis Report FOX Business June 25, 2013 6:00pm-7:01pm EDT
>> it is great when you have $1 in your pocket and you need something quick. melissa: we will see you back here tomorrow, here comes "the willis report" " >> hello, everyone, i am lori rothman in for gerri willis. tonight on "the willis report," taxpayer-funded drug abuse. millions for dubious sources. and want to take a test drive, but don't want to deal with the salesman. how do you do that? well, we will show you. they are all the rage, cleanse diets. arr they doing you more harm than good? we are watching out you tonight on "the willis report."óomç fraud. story tonight, taxpayer the shock report showing
therapies, dietitians and other professionals writing millions of dollars of prescription drugs without federal authority to do so. medicare is picking up the tab. with more on this, former policy advisor to the centers for medicaid and medicare services. this report from the department of health and human services is shocking, how does it happen? >> some of these are people licensed in a particular state to prescribe, the proponents of government run health care talk about how cheap it is to administer the program, now we know why. they don't do any utilization review. lori: in other words, there is no oversight. >> there is no oversight. we have thousands of providers to see what is being done. if you look at medicare, they don't provide providers to do that. they require documentation. if you're going to cheat the system, you are going to fix the documentation. >> word in this report, a florida massage therapist wrote
3700 prescriptions for drugs in 2009, how come that didn't raise any red flags back in 2009? >> it is not that hard to cheat the system if you're willing to break the law. some of these prescriptions are for dangerous drugs that should be prescribed to senior citizens. lori: do you agree this is taxpayer-funded drug abuse? >> that is exactly what it is. >> this report done in 2009, four years later has it compounded? it has to be worse, do you agree? >> we are doing right now to look at these things, more we oa focus on the fraud and abuse in the program but this is run out of washington. this is what happens when you run vast bureaucracies. lori: these entitlements are so desperate for reform, do you agree medicare, medicaid can be
reformed and prevent criticism from being part of a big government? >> part of the honest is on the plans for the government. those plans have some hands tied behind her back to ssme degree. they will be freed up to go off the waste and abuse but many cases these are generic drugs, cheap drugs so really nobody looking at what is happening with the cheap drugs. lizlori: interesting. social security is providing disability benefits to people, any of whom denied benefits on the state level. speaker that is right. when you get denied at a local level for social security disability benefits appealing to administer the law judge, 1500 in the country, and in many cases they will affirm the benefits, 200 judges from the benefits and 75% of cases. lawyers who make a case of going
before these judges. lori: there is no follow-up. numerous news reports showing people who have back injuries playing basketball. >> supposed to be review of the program to make sure people still have disability and preserve their benefits. people qualify who can keep them unemployed for at least a year. in many cases it is resolved but there is no follow-up di. lori: thank you for sharing your expertise with us. yesterday we told you about another case of waste, fraud and abuse at the irs. the agency said more than $46 million in tax refunds to a sleesingle address. a growing list of scandals the irs has faced and today we're getting more information on that last one, mishandling of government credit cards. workers use agency credit cards to buy 28 expensive bottles of
wine for 2000 luncheon. there used to buy romance nove novels, diet pills and baby clothes. two credit cards used to buy pornography that the employees had reported those cards stolen. also today, we are finally seeing some relief on wall street, stocks back in the green writiig the most in two weeks for the market has been on a downward spiral as of late after the fed hinted at a possible pullback of the record bond buying program. all that stimulus in the marketplace. all that turmoil rocking the world's biggest hedge fund firm. not weathering the market conditions. sending its returns deep in the red. martin, welcome to you. >> thank you, great to be here. >> how does it drop eight and .5% so far this year when the
broad market is up 8%? >> as far as i can tell a couple of things. they used borrowed money, leverage in order to try and amplified returns, and the bond market got pretty beat up last month. that hasn't been as widely reported as the stock market pullback. the fund was positioned to take advantage of rising inflation or falling inflation as well as a rising economy or a falling economy and the fact is inflation in the economy has flatlined, that has probably been a headwind for them as well. lori: is there such a thing as an all weather fund in this climate, if you will? >> i guess cash, i don't know. bridgewater has a wonderful track record long-term, i am sure they are very smart over there, if they think they can pull it off long-term, who am i
to take that? >> you are a professional in this industry and for average investors there is a lot of confusion. we have had huge swings in the stock market. kind of scary, what is your advice to average investors for navigating all of this? >> it is always scary. be mindful of the fact that remember less than two years ago looks like the world was coming to an end for stocks. since then stock prices have rallied about 40%, so we have taken to giant steps forward, it would not be unusual for us to take a step backward right now and see a correction. my advice to individual investors is just to know what you own and be patient. one of the things we know of long-term investing is patience is more important than intelligence and ultimate success.
lori: interesting pushing yield and interest rates a little higher. is this good news for people pushing retirement age? or is it an economic overall headwind? >> interest rates are just so low, at the end of the day we've gone from 1.8 to 2.1, not exactly earth shattering unless your investment strategy is dependent upon cheap money. we advise they make sure that what they own is not heavily dependent upon the price of money staying cheap. we don't know if it is this month or next year or five years from now, but at some point things will normalize and interest rates will go back to normal and if that were to happen the five-year bond, 10-year bond instead of being 2% will be five or 6%. lori: you're not advising investors dial back the risk profile then? >> i think the important thing is for clients, individual investors to determine to come
to terms with what the time horizon is and if their time horizon is truly long-term, what they need to do is know what they own and buying great businesses at good prices and good businesses at great prices is still a good long-term strategy. lori: packed the fund managers. blackrock announcing dropping funds because they simply weren't performing. they backed the simple question of the bridgewater all weather fund not performing, what is going on here? do you think the do-it-yourself approach is better than perhaps some of these big, high profile money managers? >> that is such a wide question, and i think a lot of people they should use an advisor and probably should be in a collective investment program whether it be a mutual fund or separately managed accounts, that sort of thing. what is happening at blac black, they are the world's largest asset manager.
it is twice as big asset wise as the number two competitor. but in the active management of business, they haven't been quite so successful. people have to remember blackrock is a publicly traded company so the guys running the business are not only beholden to theirrcustomers, but also the shareholders, so they needed to improve that business and the way they decided to improve the business was to cut costs. lori: any advice on the fees? can you go straight index fund because of the low profile? that is a huge benefit. >> in the absence of any value, in the absence of feeling like you are with someone who can navigate you through the storms well, fees are important, and fees are always important but at the end of the day it is really results. lori: martin, thank you so much, appreciate your time and
expertise. >> my pleasure. lori: he wants to hear what you think, so here is our question tonight. are you smarter than a portfolio @anager? log on to gerriwillis.com. i will share the results with you at the end of tonight's show. a lot more still to come this hour including the debate over ethanol in cars. it is heating up again thanks to the supreme court. and president obama fired up over a call saying it is time to put limits on power plant pollution. president obama: it is not right, it is not safe, and it needs to stop. lori: but is it really more time for him to give up his war on coal??% details and reaction after this break.
create first ever limits on existing power plants curbing carbon pollution. our next guest says the war on call translates into a hits to your bottom line. welcome to you. >> thanks for having me. lori: so, coal our biggest source of energy in this country. how much impact will households feel if the president starts putting it out of the equation? >> we have modeled what will happen if we start cutting coal out and buy 2020s we see unemployment going up by 500,000 above what we would have without this plan in place. typical family of four would lose $1000 per year for the next 15 years so it is really costly. there is a lot of collateral damage when you have a war on coal. lori: the president today outlined his push toward green energy, as you know, and how it
may offset some of the pressures created on the economy by cutting back coal. take a listen, and i will get your reaction. speak to the plan i am announcing is to double our energy from wind and sun. today i'm drinking interior department to greenlight enough private renewable energy capacity on public land to power up more than 6 million homes by 2020. we have the look after our future and grow the economy and create jobs. we can do all of that as long as we don't fear the future. lori: do you agree? >> not at all. we can double wind and solar, but a small base. when you get rid of coal, three fourths will be gone by 2030, 30% cut in total electricity provided. it'll make up 1.4 of those 30%. natural gas away from the
manufacturing which has really hit them hard. lori: the ministration had to know the statistics. why did he decide to kill coal? speak of this is from the environmental left. they wanted to go after it for a long time, ignore the fact the coal industry and electrical power industry has spent billions of dollars cleaning up coal. air quality has improved, the six main toxic pollutants have been reduced anywhere from 36 to 96% since 1980. we have made a lot of progress, spend a lot of money and to paint the industry as an industry that hasn't done anything about pollution is not right. they're talking about co2. it will be really expensive and have almost no impact on global warming on top of that. lori: you mentioned the billions
of dollars to clean up its emissions, so is there a true economic and environmental impact? what is the pollution profile? >> like i said, we have seen mica's oxide and so on, they have all come down pretty substantially. carbon dioxide people have to understand is non-toxic, does not smell, a very small percentage so you see pictures sometimes on tv when they talk about carbon dioxide. carbon dioxide is what the plants breathe. we will cut some. it will not get to its target. that is not enough to reach the target, but even if we could reach those targets, and almost intercept will change in world temperature even if you believe them by 2050 you would not be able to tell. by 2100 maybe a couple tenths of a degree, moderation if the high
sensitivity numbers are correct. lori: in our push for energy independence in this country, why isn't there room for all energy sources? coal, all renewables, all of these things, an in a perfect world, maybe i am too pollyanna, why preferred one over the other outside of environmental issues? >> we don't, but the market does because the renewables are so deep a mac expensive. we have 500 years worth of coal aat current usage rate, we're finding more and more natural gas, we don't have to go to wind and solar for energy dependence. lori: thank you very much, david. speaking of that, we want to bring in the latest developments we have been following. the present weighing in on the keystone pipeline during the
common speech saying it should only be approved if it is not worth then carbon pollution. the president still insists he will not make the decision to approve the project but the state department is in charge he find out if the juice your coworkers are on is doing more good than harm. and should you put ethanol in your car? the debate continues after the break.
lori: ethanol getting the green light, supreme court refusing to block the sale of e15. despite criticisms from the auto and refined ring industries bid associate editor, great to see you. do you agree with the supreme court's decision that keeps e15 on the market. why is that? >> e15 and ethanol substitutes are the only alternatives right now in this country. they have not been able to sell enough alternative fuels of e85. it has been approved for use in all cars since built in 2011. lori: a lot of the cars before
2011. aaa says more testing has to be done because it could really screw up the engine in cars built before that time. >> ethanol is corrosive. they have addressed that from the standpoint in the materials used in the engine and the fuel system, but they are still refusing to warranty cars from 2007-2010. cars before that are little more questionable. the government has studied these cars and the oil industry and the auto industry have different opinions, they've done their own studies, they say their studies are flawed because the cars have been prone to break anyway. it is actually marginal. the country from an economic standpoint to avoid exporting
half a trillion dollars per year overseas to bring in more oil. lori: doesn't have a better or worse mileage per hour? >> ethanol in general is a littll worse than gasoline. reduce that the factor of 15% of it. we expect it to have an affect of at most 1 mile per gallon. lori: marginal environmental benefit, less fuel miles per hour and what about overall car performance. has to be something in it for the driver. >> car performance is about the same. the engine could be tuned to take advantage of the ethanol with a higher octane than gasoline so if automakers were able to plan for this and assume all feel would be higher percentage of ethanol, they could take advantage of that and tweak a little bit more performance and even downsize
the engines a little bit to make up for some of the fuel economy. lori: currently availed the mac available in multiple states. how is it being received? >> people in those states are buying the fuel and are interested in it, but it is not getting much traction outside the midwest so far. the pumps at the gas stations, the gas stations have to install one of the pumps to pump the higher blend of ethanol. lori: are we going to be in a gas market with regular grade gasoline? what is it going to look like? are we going to have choices as drivers? >> potentially. you already have choices of higher blends of ethanol in some of these midwestern states. it is not going much beyond
that. more refining of ethanol, this kind oo the question what it would take to get the economically going but one of the things to get that working is have a larger market for it. lori: it is peak driving season, price has to be a factor. cheaper? >> my understand is it is a little bit cheaper. lori: thanks. appreciate your analysis. let's get a look at stories you are clicking on tonight on foxbusiness.com. good economic news sending stocks and the green after weeks of worrying about the fed, traders see more optimistic. reacting to a sharp rise, more than 12% jump in home prices in april from a year ago. a 2.5% increase in april from
march. biggest month over month gain since 2000. all cities except detroit saw a home prices riie. men's warehouse shedding light on george zimmer. he had difficulty accepting the fact they were a public company with a board of directors. investors seem to be happy about the news. more than double from a year ago thanks to the e-book readers. it ill stop making th nook colr readers. still ahead, find out how you can test drive a new car without having to go to the showroom and deal with a car salesman. next, all the rage right now, but we will ask if they really work and if they're really all that good for you.
lori: cleanse and detoxify hit with celebs. regular folks are following the trend to get that hollywood glow. but is it worth the hype? joining us, a register dietitian. i'll come to you. what is the deal with these cleanses? >> we certainly have gained in popularity and celebrities are driving the craze. they do produce weight loss and as one reason they embrace the idea of a cleanse, but they are detoxifying the system is quite inaccurate, no scientific evidence drinking juice for a few days of detox is cleanses
their system. lori: is that what a cleanse is comprised of, just drinking juice? give me an example of a day on a cleanse. >> everything from the master mr cleanse, combination of water, lemon juice, cayenne. two more formal programs including fruits and vegetables typically pressed, fresh pressed board done in a processor and it is bottled and you drink them throughout the day. some include fruits and nuts as well as snacks. it depends on what you are doing and how aggressive you want to b. lori: you talk about you do thie weight, is it just a crash diet? >> yes. you're going to lose weight because you are not eating that much. the idea offcleansing, your body is all fat.
>> there are so many talks about this cleanse i feel i must be poisoned and i must be doing something to get this junk out of my system. >> if you naturally eat a diet that is filled with processed foods, you drink and smoke for three to five days you will drink juice, you are actually psychologically to feel cleanse because you cut the out of your diet. but most people will return to their old eating habits. so what i'm suggesting is rather then do a juice cleanse that inhibits you from going out, living our life, you can't drink, you will lose some weight but it will return and has a natural detox. what allows us to happen is a diet high in fiber. here we have an example. lori: it looks like rabbit food. >> these are really extreme ways
of getting a lot of fiber in small quantities. spinach is a high-fiber vegetable. we could have doctored this up a little bit but for the sake of having something onset we wanted to bring some quick examples of fruits and high-fiber. it acts like a room and a sponge. absorbing toxins and sweeps it out. every time you defecate because it is a high-fiber diet, that is actually how you can cleanse your body every day. in a way that is disdainful. lori: may be i will eat like this during the day, but when i come home after a long day of work, i want a glass of wine or a chocolate brownie. is that okay? >> everything in moderation. yes, of course. lori: thank you so much. starbucks is now posting calorie counts on all the menus nationwide. so if you live in big cities
like new york, you shouldn't notice the difference because the calories are posted. we took our cameras to the streets of the big apple to show folks this without the calorie count on it to see if they are aware of how many calories they -@are drinking in the morning. >> i would say 250 may be. >> 300. 250.0. >> 360. >> 560. do you ever order one of these? >> i would. >> 800. >> 326. >> 360. that is my sandwich. >> 500 about. >> are you ever going to order one again? >> i don't think i have ever ordered one. lori: i was not sure o if that s the cleanse juice or an actual starbucks drink.
compare that to dunkin' donuts 730 calories. it may sound like diet drinks compared to other foods found that some of your favorite fast food restaurants, the foods with the most calories making up tonight's top five. number five, dave's hot and juicy triple patty cheese at wendy's. more than 1100 calories and six times the recommended daily intake of fat. number four, kfc chicken bites. setting you back more than $7. number three, the big breakfast at mcdonald's. it weighs in at 1350 calories. now you're talking. does not have the hotcakes or the syrup but still 1450 calories and 134 grams of carbs. number one fast food item with
the most calories is the chicken rings at white castle. all that pales in comparison to the cheesecake factory. more than 3100 calories in one dish. i'm sorry, i am starving, it is dinnertime. when we come back, which baseball stadiums offer the most bang for their buck. and the question, how do you do that? find out ways you can test drive that car you had your eye on without having to deal with the dealership. ♪
lori: have you ever thought about test driving new model cars but hate dealing with the dealership? one startup can ease the pain of car buying from your doorstep. our next guest to explain a new game-changer. ceo and founder. welcome to you, tell me how it works. >> thank you for having me. the first of its kind at home test drivvng and buying service. users go online, they picked the car they are interested in, auto expert shows up at the time and place of their choosing, they do an exterior walk around curbside or in the driveway, explain the interior of the car, the customer takes the experts on a 15-mile test drive that last about 20 to 30 minutes. lori: you are not dropping off the car and leaving until the next day, somebody's monitoring.
>> if a customer has a trade-in we can do an overnight test drive. $19 per car. lori: how do you make money? do you get paid by the dealer? >> yes, we do. a flat fee on the shopper's side and a flat fee on the dealer's side. that is important because our employees are not incentivized to sell a car. we had a mother looking at a honda versus a toyota. or honda versus a bmw may be incentivized to sell the higher priced car but because we have a flat fee, there is no commission, no pressure on the customer. lori: there is so much information, it is almost less painful some would say to go to the car dealership because the salesman know you have the latest and most competitive pricing information on various car models. is that an issue for you, a challenge of had to deal with? >> that is one piece of what we
do, help with pricing. but really our belief is there is much more, the price is the single most important factor. lori: i wonder if dealing with salespeople is as uncomfortable as it was five years ago because of all the available price information. not as much haggling. >> the average consumer spends 11 and a half hours a car dealership when they buy their car, and you're sort of doing that from the comfort of your own home. i've been price is getting more transparent and a good thing for the industry. i do think the experience is getting better at the dealership. lori: how do you plannto expand? are you available all over the country? >> we are currently just available in seattle only. looking at a number of markets with dense populations in urban
areas and we get e-mails and calls from dealers and customers all the time saying please come to atlanta to buy a car, come to atlanta to help us out so we're definitely looking at expansion plans but at the time we're focused on seattle. lori: are you taking any more investors? >> sure. lori: in terms of your expansion plan, are you going out? >> it is a very capital intensive concept, there's marketing, operations, a very large market opportunity. so in terms of whether we will be raising more capital, can sy for certain. we are fortunate to get a solid group of investors with solid skill set. some come from consumer startups but down the road we may be looking to raise more money.
lori: i'm curiousl curious the t popular, most in demand cars people looking to comfort from their very own curbside. speaker that is highly classified information. no, it is not at all. the most popular brands are ford, subaru, honda, toyota. a lot of exes and audie. lori: have you ever had a call for high-end luxury for ari, something ridiculous that you could not provide? >> tesla is pretty popular here, which is awesome because it is an excellent company. so we're in the process of talking to various companies with delivering their cars in the range right now, but the most premium car we deliver is around porsche. lori: i hope he starts delivering to new york soon. >> we are common.
figuring out what they want to see. lori: like a ticket website? >> stub hub is a perfect example. the average price on the resale market, the teams winning percentage, and the quality of the opponents. so basically a team like the pittsburgh pirates did really well. average price $15 on the resale market, very competitive this year almost first in his division and played a good schedule so fans are getting a lot for their money basically. lori: if you are a true root root root for the home team are you more or less willing to pay that price and should you go through the secondary pricing or go directly through the team? >> it depends, i would say go through both options. look at what kind of deal you can get at the club. also think about concession prices. some stadiums are doing great deals on concessions.
we talked about the $1 $10 beer. you can factor that in as well. lori: the next hot dogs shameful versus the dodger dogs i grew up on in los angeles so there is something to be said about that. charles, great to have you, thank you so much. we will be right back with my two cents more and the answer to our question of the day. are you smarter than a portfolio integer? stick around.
59 percent said no. you are not smarter. log on for our online question every day. >> the income-tax should be abolished it is intrusive and overly powerful for a democratic society and too cumbersome to a minister. the devil should collect taxes in the marketplace to take death year of abuse of power away. >> was time to abolish the irs. >> it is time to get rid of the irs. go to the flat tax or national sales tax something that everybody can understand then feat can get rid of the bureaucracy. we love to hear from you. i have had a blast. thank you for joining us. do not forget to dpr the show. have a wonderful evening.
lou: good evening. a triple digit rebound in the stock market today and the latest report on the state of our economy the reason for exuberance and a celebration of you never would have guessed watching and listening to president obama is a speech out of climate change today. dow jones industrial average rising sharply up to out of three days after investors decided the federal reserve was ending quantitative easing prematurely. sure enough and that dow jones industrial average dropped more than 500 points between wednesday and