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tv   Varney Company  FOX Business  January 2, 2015 11:00am-1:01pm EST

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lou: two seconds to say, that will do it. adam: i am adam shapiro. stuart will be back on monday. unemployment is down. you are spending more in stores because of cheap gasoline. we even had a fed president saying the economy is set to take off. do the numbers tell the real story? most of the jobs created are low-paying. you are paying more when you go to the doc there. varney and company is about to
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begin. ♪ adam: first up, the economy. peter barnes has more for us. >> you sat down with loretta metzger. she said she believes that the fed can start raising short-term interest rates sometime in the first half of this year because the economy is getting stronger. she would like to make sure that they do it before they get to full employment, which, for her is five and a half percent. here is what she said. >> maybe we were seeing an acceleration in growth.
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a very deep recession. now, we are getting to the point where i think the economy is moving into a stronger growth pattern. >> as far as the exact timing and the pace of increasing rates , she said it will be data dependent. back to you. >> we will talk about that peter barnes. we want to bring in peter marie cheap. why aren't more people feeling it? >> the u.s. economy downsized substantially. they are probably permanently out. they have found other ways to
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support themselves. they are not likely to make the sacrifices they need to make to reenter the economy. the economy is growing from a smaller base, but it is growing significantly. >> stay right there. i think the argument you could make about this is not as strong an economic recovery. a metric i like to use is how many just out of college grads are living at home. that number is pretty high. >> this is not the normal recovery we have seen. one thing is for sure, the u.s. economy is the engine that is pulling the economy along. it is here. why is it here? we have a very deep and liquid
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capital market. it is actually amazing. throwing their money into equities. now we are only up barely a point. treasury rates are down after quantitative easing was ended. we also have to consider the strength of the dollar. we only ask for it 13% of what we make.
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they will be policies from washington that influence oil and gas development. >> everyone was shaking their head while you were talking. >> good for the economy. we do need growth and policies. they will not get new regulations. i think the gop led congress can see some good reforms and other areas. i hate this argument. somehow devaluing the argument. that is a terrible policy. >> hold on a second. i do not see how a dollar hurts savers.
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it does raise the price of exports. if you went to school the department of economics, it is a good thing. it is not a matter of having a strong or weak dollar. eight dollar to strong against the yen and the euro disadvantages us. >> hold on, there is another issue i want to bring into this. forcing many middle-class people into the bare minimum. in some cases, they just skip going altogether. what is actually happened is yes, the affordable care act has brought this.
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>> free market competition. it is exactly the opposite. it mandated services. it did exactly the opposite of what we found works in every other corner of the economy. people are skipping out of healthcare because it is too expensive. >> can i give you a real world example of this? a friend of mine just had a $2000 the dump to both. well, this is what has happened. the people, though, that may not choose or have the ability to pay that deductible that are forgoing seeing the doc there the people said it would not go to the doc there.
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this defeats the purpose. >> we are not a one-sided fits all of economy. the whole point of having a competitive market in any kind of product is to allow entrepreneurs to provide what you want to purchase. these are the plans that the government is going to dictate. when you reduce that kind of competitive competition, you will have higher prices, lower quality of services. let me just ask one last quick question. was this perhaps part of the look?
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we go back and we say, we have to fix this thing. let's go to a single-payer system and scrap it altogether. >> we tried it. look at every other product that you buy. you can get high quality products in this country. we compete with one another. that is what we have to do in healthcare. let insurance companies sell across state lines. the trading range today. we are down seven points. the price of oil still near a five-year low. the national average for a gallon of regular gas $2.23.
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all of the savings to add up. the $1 club expands to six states. the average for regular is below $2 a gallon. the cheapest gas in the land is $1.50. i have actually been to crawfordsville indiana. go pro has its eye on the drone market. lori rothman. >> up about 2%. go pro and drugmakers may team up. a natural partnership.
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the consumer electronic show is in las vegas next week. we will be keeping a very close eye on eagle eye. shares are up 100% since then. we are checking out some analysts calls on go pro. adam, back to you. >> thank you very much. you think stocks could soar another, i will say it, peter 25%. >> go back about six or eight weeks ago. things are going to rebound very nicely. american capitalism is fundamentally changed. look at google.
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it makes capital cheaper. the price earnings ratios are simply much higher. >> the ratio is what? it is about. >> the s&p down almost nine
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points at this point. if you have to have been to pick a hot day you think you are living in the tropics. i think the market as a considerable amount of resilience. last year, the s&p was up 12%. before the prop it is done i would love to have some of the coffee you are drinking this morning. there are reports that the mayor's age adds to the
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political allies in the liberal media. you'll hear more from david right after the break. >> two police officers were killed without being able to defend themselves. ♪
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adam: let's check the date board right now. we started 2015. time for your morning gold report. gold is actually going up a bit. now take a look at amazon shares. the worst year since 2008. lost more than $7 billion as shares fell more than 20%. here is a look at amazon. the holdings are enormous.
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teaming up with that occupy wall street movement. the timing so, not so great. everyone has the day off. one of the protest will take place. >> i admire the passion. they would be talking about things like charter schools. outraged at the homicide rates. instead, they are all about them. nothing to do with actually thinking hard about the problem in these communities.
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adam: it has to do with the "new york times." in an editorial describing what they call, and this is a quote this prank sense of victimhood among police that seems to be motivating the anti-deblasio campaign. the focus in the target was on your back. >> you can always tell when you hear people squealing a lot that you actually may have touched upon somebody a little more sensitive than you thought they were. on wednesday, if you have this new york posting.
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the new york post piece specifically said, quoted individuals saying they had been attacked by steve hall. they called up on monday saying they were calling for all of us. tuesday, you have this editorial. i know how these things work. when the word goes out this, by the way the "new york times" endorsed de blasio big-time.
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he promises to be a mayor when he endorses them. who columns sears. they were dead wrong. now, i think they are dead wrong. >> is that really so surprising? >> not at all. maybe i was expect him too much. you expect them to and parish authority. i would not expect the "new york times" to do it. >> why not? >> far harsher than anything. >> i am curious though. whether you agree with their goal or not. this is not night teen 63, 1964.
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it is not only to people today but the truth. >> i have not heard many people condemn it as you did. >> ere we go. adam: david asman thank you very much. >> who cares about them. adam: a big new year's day for college football. we will wrap it all up and take a look ahead to the weekend poke game ahead. ♪ >> off to the races. can they catch it? no they can't.
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you're driving along, having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom! you've had your first accident. now you have to make your first claim. so you talk to your insurance company and... boom! you're blindsided for a second time. they won't give you enough money to replace your brand new car. don't those people know you're already shaken up? liberty mutual's new car replacement will pay for the entire
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value of your car plus depreciation. call and for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch to liberty mutual insurance and you could save up to $423 dollars. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. harry reid was hospitalized thursday after he broke several ribs and facial bones in a fall while exercising in his home. he is planning to be in washington tuesday when the senate reconvenes for the new
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year. carly fiorina is gearing up for presidential run. she has hired at top republican national committee spokesman to join her political team. now something everyone is talking about, a round of playoffs is in the bag. the oregon quarterback, didn't let up on florida state. jamie winston a score of 59 to 20. that game was followed by a closer outset, a win by ohio state over alabama in the sugar bowl. who is going to take down the one. >> ohio state has the biggest
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fan base. oregon, in the rose bowl in pasadena, ore. has the first major national championship last several years. adam: i know it is not columbus but there are a lot of state grad on the north coast who are very angry with you. can you get a rational explanation other than fans on the west coast? >> a lot of states had a great run. region yet tech, they bring it all. oregon hasn't lost anybody like that. alabama was the ohio state. and back on my face again. adam: wild card matchups, you are in indianapolis and jim harbaugh was playing football. my people in cleveland high-paying close attention to
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what you say about this. >> we are in indianapolis and this will be sunday at 1:00 p.m.. they have not let a playoff game, their 0-5, marvin lewis, so much pressure on the bengals. home for indianapolis and play of the last three years, they won the game last year and all the things in their favor at home in their building and they should cruise on sunday. adam: the match between the cowboys and the lions. >> the cowboys are back in the playoffs their home, they will play their offensive line, the best in football in detroit the ended this season they look sharp. adam: you are in indianapolis on the north side. >> deriving from the airport i saw shapiro, tell me that is your family. >> go get yourself some corn
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beef and charge it to rupert. money is no object. >> indianapolis, no shortage, and i am excited. adam: new republican-led congress getting back to work, repealing obamacare, the keystone pipeline. and pulling out the veto panel, anything getting done over the next two years? >> this will pay jobs for our people. that was held a couple weeks ago. we are optimistic we can pass it and put it on the president's desk.
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so ally bank really has no hidden fees on savings accounts? that's right. it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees from the bank where no branches equals great rates. adam: check the big board. we started 2015 in simple digit territory and there you go. two hours into the trading day we are down 6 points on the dow. shares of tesla getting hit as gas keeps getting cheaper. the price of oil near five year low trading $152 a barrel this
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morning. national average at $2.23, price of regular gas down more than one dollar a gallon since this time last year. was $3.32. we want to bring in energy analyst mishka. you think it could hit $45. i read the story today where they said look for $30. is that realistic? >> i think it is realistic. opec has singled time and time again that they are looking for lower oil prices. we saw a couple weeks ago, the secretary-general came out to stay despite the fact there will be 300,000 barrels since 2015. these statements do come market and they're looking for a lower open. adam: how much of this is oversupply and how much of this is the chinese market is actually maw, their need for oil is not going to grow at the rates we saw the last ten years
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and the slowdown in europe will people will budgeting? >> it is a combination of both. slowdown in europe and a slowdown in china is having an impact. my suspicion is members of opec particularly saudi arabia want a lower price by signaling they will continue to oversupply the market. there are specific reasons for that. saudi arabia dealt with dysfunctional cartels, consistently we have a tragedy of a common scenario where we have the opec member nations consistently overproducing quotas and having -- adam: dysfunctional cartels have a new hbo hit, maybe there's a new writer out there. do you think keystone happens this year? economic incentive is falling.
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>> i think there is a good chance. that has a much more larger environmental impact. and it is the right thing to do. adam: at the new year to you and thank you for joining us. let's get back to obamacare with the new republican-led congress. will they be able to repeal obamacare? townall.com fox contributor guy bentsen joins us for this session. they say want to repeal but are we going to college mcconnell's bluff? nobody's repealing obamacare. >> mitch mcconnell and every other republican in congress would love to read below obamacare and replace it with something better but recognize there's still a president named obama after whom the law is sort of knee and and crafted, this big legacy product on the
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domestic front. he is sitting in the white house and he will veto almost everything republicans do to try to change and undermine the law. >> there is bipartisan support to two obamacare, things like the medical device task supporting growing fat back. could we see that there? >> possibly. what we will see from republicans is the two front effort on obamacare. on one side of this they will repeal the entire law, something they ran on and have been running on for years, something people who devoted for them expect them to do and want to try to force the president to shut it down and with a veto panel. on the other track there will be more targeted efforts as well to rollback specific elements of the law that are unpopular, deemed harmful but the public doesn't like winding the medical device tax and a few others like the 40 hour work week, trying to restore that.
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may be individual mandate taxes. >> reform is different from repeals and is easy for the house and senate under republican control to vote for it knowing the president will veto but in reality, mitch mcconnell's bluffing. he has no intention of allowing the affordable health care act, obamacare to be fully repealed or does he? >> i don't know why you would state that. if there were a republican president they would absolutely repeal obamacare. they would replace it with something which it wouldn't just go away casting back for another solution. there are certain elements of obamacare taking care of people with preexisting conditions, some of this deal of keeping people on their parents' plan until you are 26, there are elements of the law that are popular that would make their way to a republican alternative but i think the republican leadership all the way to the grassroots would love to rid the country of this thing. adam: what is --
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>> there is a symbolic vote to repeal obamacare which the president is going -- going to be no but there are bipartisan reforms you will see get passed in the 114th congress that will make the president's job difficult because democrats wanted to get reelected in 2016 as much as republicans do and have an incentive to come to get there. i don't know what he does but it puts him in a tough position and those are the kind of votes the gop -- >> this fall on the democratic -- >> correct. she gets pressure from the left to do things like repeal the medical device tax, fix the 40 hour work week requirements in obamacare. these are good votes to have an demonstrates to the american people that republicans are serious about actually governing. i think back to the government shutdown when ted cruz promised the world we can run the country from one chamber of commerce.
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it was ridiculous and it was a lie. that republicans prove they can govern and compromise. adam: thank you very much. i had lunch yesterday with a friend -- i'm still on 2014 time. forgive me. all the best to you. >> take care. i am english so it is guy, not guy. adam: is easy for me to say. in the midst of a very expensive divorce, he can't afford a massive $1 million settlement to his ex-wife. we will tell you why after the break. you pay your auto insurance premium every month on the dot. you're like the poster child for paying on time. and then one day you tap the bumper of a station wagon. no big deal... until your insurance company jacks up your rates. you freak out.
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up 3.6% at the moment. after 1% one early mover weight watchers down today, and weight watchers business model. much more "varney and company" coming up after this. my mother made the best toffee in the world. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. i never really thought i would make money doing what i love. we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side.
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>> state across the country kickoff the new year by raising the minimum wage. rich edson is in washington d.c. with more on this. adam: 29 state in washington d.c. have higher minimum wage than the federal standard of $7.25 an hour, 20 states raise their wages as 2015 begins, arkansas and nebraska approved ballot initiative to project the bottom wages, and other state legislatures and scheduled increases are responsible for the hike, washington state has the highest at $9.47 an hour. democrats are pushing for a $10.10 minimum wage. president obama said that a way is through executive order, to get the same, congress would have to pass the law. that is only from federal contractors. and minimum wage passes unless congress ties it to a broader
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compromise. they point to a congressional budget office saying it would cost 500,000 jobs race to $10.10 an hour over the next 10 years. the white house and the democrats and economists argue a little more money in pockets won't have that much job destruction and create benefits for when the economy. the argument will continue for the federal government, not much on that front. it will continue to be stated local issue. >> it is going to be continuing. adam: in the 1920s, at the rich keep getting richer. the net worth of the 400 wealthiest millionaires on december 29th stood at $4.1 trillion. let's bring in the author of how rich people think. i want to know how they think because of want to be there. collective wealth $92 billion last year more of the same this year, the rich get richer and the poor get children?
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>> the rich get richer and the poor get children absolutely. we will see substantial increases this year. they understand money. they know how many works and they will make more of it. >> do they understand monroe did they have wise investment counselors who thanks to central banks worldwide are propelling their net worth higher because they artificially boosting stock prices? >> you can make an argument for some of that but generally speaking the rich, studying these people for 30 years, they are well steep in many. they think about money 24 hours a day. they know a lot about it. they are smart enough to get the best advisers. adam: there was a book years ago, do those fundamentals still apply, all in your house or your apartment, said something to the side, are there things the rich do that the rest of us don't do that allow them to remain rich? >> absolutely. a smart guy did a great study on the rich and continues to do it today. absolutely. it is like they are living on a
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different planet than the average person. they think about money, study money, follow money and as a result they have money. adam: let me ask you this before you go you mentioned the different planet i was thinking of the movie in b.c. in but if you are bored one night, before you go fracking billionaire harold m. says he could no longer afford the billion dollar divorce settlement that he has because oil is so cheap. he is -- he thanked the judge for the $2 billion settlement calling equitable. end his words at a time $19 billion. but now he is getting squeezed. come on. >> come on. has the money. i am sure she earned it. he needs to give her a couple more billion. there will be plenty more in the future. he is a bright guy. adam: he called inequitable. i don't know how smart that was but i will leave it to the court to decide.
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thank you very much. up next a new study suggests most cases of cancer are caused by bad habits, just bad luck. to explain all of this, after the break.
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you're driving along, having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom! you've had your
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first accident. now you have to make your first claim. so you talk to your insurance company and... boom! you're blindsided for a second time. they won't give you enough money to replace your brand new car. don't those people know you're already shaken up? liberty mutual's new car replacement will pay for the entire value of your car plus depreciation. call and for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch to liberty mutual insurance and you could save up to $423 dollars. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance.
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adam: 20 states moved the minimum wage yesterday, mary kissel has been chomping at the bit to get in on this. >> it drives me crazy, there's no debate about the effect of raising the minimum wage. it doesn't help people don't have a job. for the people who do have a job increases -- drives low-income people out of the market. businesses can't afford to hire at them when the cost of labor goes up. this is a bipartisan economic voodoo. is not just democrats raising the minimum wage and telling people spinning as if this were a good thing, it is not. it is republicans and democrats the absolutely terrible -- adam: i hope they are listening. you are not going anywhere. a new report from researchers at johns hopkins reveals the risk of cancer doesn't always come from your life style or your genes. sometimes it is pure bad luck.
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dr. dubya is with us to explain this and this is not saying go ahead and light up and enjoy the cigarette. what they are saying is two thirds of cases is a factor in how you sell it. >> they only looked at specific cancers. they didn't include breast cancer or prostate cancer, two decanters most likely to affect you in the u.s. but it is interesting, what they look that is what we talking about? why would somebody get one type of skin cancer versus another, one type of colon cancer as opposed to another type. >> how much of this is the fact the work our bodies intended to live to the age of 40? >> there could be part of that too. what happens is we think of aging whole organism aging but you're different organs age at different rates. blood reproduces pretty quickly. you are more likely to get cancer of the blood from where
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the cells reproduce more often and in this study them looked at different types of cells so you have regular cells that have a function like a kidney style but then the super hero type cells, stem cells. we're lot about stem cells but what makes an different is a your hard sell is damage. stem cells can jump in and become a hard sell. it has a function where it can change and stem cells are most likely to get that. >> there are reports that members of isis have contacted ebola. who is looking to confirm that but my question to you as a doctor, this is isis would you help someone if god forbid you should be in iraq, if you were there in the member of isis had ebola how would you confront the situation? >> not that i would want to help isis but we would have to hell because these people are against
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western medicine which means something like ebola could take hold and spread much more easily. it won't just for among the terrorists it would spread to their victims. adam: i don't wish bill on people. when you are against western science and common sense you get wiped out. >> that is the irony. using cocaine these folks got it but we can't control the ball in west africa where people are working with the cdc. then you have somebody that doesn't cooperate with this type of thinking, they can spread to anyone and they could potentially harness ebola. adam: big u.s. resolution is going on a digital diet. we are on our phones too much? what ameritech watchers says yes, new engine. more regulations will cost you money coming in 2015. one of the president's harshest critics ways in.
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aaron 2 in two minutes.
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adam: what was the first thing you did when you woke up this morning? you check your smart phone no doubt about it. go to any news web site, twitter or facebook, you are bound to find a story on a new kind of new year's resolution, digital diet. breakdown the phone pickup bubble quote god forbid have a face-to-face conversation with someone. even the dalai lama waiting same technology is the way of the future but we need to guard against losing hour he amenity. what do you think of that? do we use technology too much? are you going to try to one plug in 2015? that is hour 2 and we start now.
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apple executives might say nehr but check out what the dalai lama set about technology on twitter. without technology humanity has no future but we have to be careful we don't become so mechanized that we lose our human feelings. good morning. here is what you had to say about that. barney says technology will be dead downfall of the human race. people cannot keep away from computers, phones, games, etc.. goslin disagree saying i use technologies community with a variety of people from around the world. i love it. joining us now, jeremy kaplan editor-in-chief, and take using millennial and editor of political science, jeremy, to you first. it is the first thing most people do, the first thing people do. they checked their cellphone which is on the nightstand next to them. >> such a dramatic
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transformation in society and who we are as people in the last five years. the forbid you use this thing and when you wake up you use this thing and this is a great idea. with the new year take a chance make a resolution rethink how you are using your device because is it too much? adam: people your age when you see them at restaurants on a date are doing this. how is the cellphone different on your nightstand and the old digital clock? >> the obsession is the problem. i am not want to be lecturing because some form of technology at all times tour right now i have two forms of technology, my computer and my phone. it is troublesome. young people are so addicted. i am one of the. the younger generation is worse. adam: why is it not a good thing? people tend to say we are not communicating. we are communicating just doing it differently. we text, we use e-mail which will go away at some point we
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still communicate. >> you do is the aspect of an eye to eye conversation. millennials problem with employers, they can't look at me or have that conversation. it is crucial to being able to operate in the world, you can't operate via e-mail. >> the thing to keep in mind the digital print we review bunch of products but product are tools, technology is the tool. the problem is when we have things like smart phones that interfere with our lives and not helping us taking away from daily interactions. adam: give an example of how they interfere. >> last night at home on the couch with my wife watching tv and neither of us was talking to each other or watching tv. she was on a laptop and drive was on my phone. adam: what is the resolution for you? are you going on a digital diet? >> i am going on a digital died. a great opportunity to go back home and look at what you have.
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adam: there's a headline, the editor in chief of digital is going on a digital diet, pare down everything i have got. >> i am going to do this. i have one that too many probably have way too many. adam: is the trend that people have more than one smart phone, smart phone and antiquated ipad ii only need one thing. >> i have six smart phones way too many. adam: you get some too much. go pro has its eye on the consumer drone market. will they go through state and federal red tape? we have a guy here who builds drones like wasting time on a digital device. >> drones and other guys, this is more of a toy than its full or gadget to help us. go pro is going to get into this market. we have signs that this will happen and this company will take over the drone space within two or three months.
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you will see these things. adam: why would go pro drones be more popular than may at home drones? >> there isn't any brand name nobody in this space. the most popular one is from a company called parrot. they use to make french phones. adam: a frenchman surrendered in an hour. i'm going to get hate mail for that. eric by the way, you don't know the guy who talks in my ear when i'm talking to you and said you just made a mistake and he's very angry at me. we have to have a discussion with him. check the big board. the dow is well off of its highs at the start of trading, we are down 17 points, general motors recalls 92,000 point trucks and suvs for an ignition lock defect. here are shares right now, gm trading at this hour the price of oil near a 5-year low, at one point trading at $52 but now is up $53. national average for a gallon of
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regular gasoline $2.23, price of regular gas down more than one dollar gallon since this time last year when it was $3.32. apple was a big winner for the holidays but it is getting sued right now. >> happy new year. standing 40% last year, year to date as in the last several hours, down 1.5%. on this the issue has been taken to court by two plaintiffs, people are suing apple claiming 16 gigabytes of space isn't that much because it takes so much room to operate and download the new operating system so that is considerable problem. apple has so much great news seems to be sending shares and a weaker market that is worth mentioning. adam: would you talk about the digital stuff? would you give up a digital
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device? are you a slave to your digital device? >> i would put them off of the window sill but vital one figured out how to text. i am watching my phone more closely today. adam: this could be trouble in the future. let's look at the new year ahead politically. wall street journal's dan henninger is with us and what actions will president obama take this year that you think will have a direct effect on the economy? >> i think the technophobia have an ally in president obama. he announced in november he would like to regulate the internet under title i of the communications act of 1934 which was patterned after it the interstate commerce act of the team 87. 120-year-old regulatory template is going to be imposed on the internet in the guise of net
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neutrality. it we essentially be the government regulating the internets like a public utility. adam: met neutrality. you have a feeling, people your age have a position? >> you hit the key point. to regulate the internet with a 1930 statute is nonsensical. it completely thwarts the idea of internet free exchange of information. millennials don't like it. >> the internet was tried without the intervention of washington. is a testament to what can be achieved. adam: let me ask about net. rally and what the president may be of to. i don't know what he hopes to achieve but my brother is an internet kind of guy with double click years ago. if a company like google has the ability to use its financial power to keep us -- keep a startup from getting the same access to the world wide web as everyone else that is a problem and you have to keep the
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financial giant like google from stopping the new business from getting cut out. isn't that the argument for what the president is doing? >> we have one agency dedicated to this practice, the federal trade commission. if you have a problem with that you take it to the ftc. the fcc which we probably don't need in the market we're in right now would be regulating prices forcing internet company's to file mountains of red tape to justify what they are doing, it would truly slow down web development in the united states. adam: as we get 2015, we had peter morici down in the last hour, stocks he is predicting could go as high as 25%. we think he put something in his coffee that he is drinking but for the people in college right now or grad school like getting law degrees what are the prospects of these people getting good paying jobs when they come out of school? >> that depends on the rate of growth in the u.s. economy that
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is the big question for 2015 whether the growth we have the last week to quarters will be sustained in to the new year. i think it is an open question. the single most important thing to watch in 2015 will be the federal reserve and the zero bound interest rates. we had an interest rate at zero for five years, enormous amounts of financial decision and investments have been made relative to the zero interest. once that those of the world will change. adam: let's say you got the potential for interest-rate increase this year but you got something unexpected which is a plunge in the price of oil which some people see as perhaps a deflationary pressure the federal reserve would not want. wouldn't raising the interest rates exacerbate their fears of the deflationary because the price of oil is going down and global economy slowing down? >> that is a market force in the driving the price of oil down. the federal reserve has been
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regulating the market on its own with this zero% interest rate but fear not, barack obama once again is writing to the rescue. he will probably ask the environmental protection agency to regulate oil and gas drilling in the united states by regulating methane which is a by product that comes out of drilling. also fracking, the epa will attempt to regulate that under the toxic substances control act which has to do with drinking water. >> you hit an important point especially when you look at the cotton regulations that the obama administration, executive orders, memorandums orders carbon dioxide limits which effectively shut down coal plants. will we see more of this abuse of memorandum abuse of law to implement something the law wasn't intended for? >> i think so. in the first term they have already done the health-care industry with obamacare and the finance industry with dodd-frank, that is the least legislation that had to go
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through congress these are unitary executive orders. the epa order and the fcc are going to be challenged in court which would slow the down. adam: we are not talking about news items that will have a big effect on the economy but we will talk about greece. any issue that needs more attention which is not? >> the iranian nuclear deal. the form of foreign policy goal in barack obama's mind, you wants that deal with iran and he is going to get it. if he gets it will set in motion a process whereby saudi arabia egypt and turkey will have to decide whether they want to approach the nuclear threshold. this will be tremendously destabilizing in the middle east, a place that is already terribly destabilized and that impact things like energy prices in the world. something very much to watch.
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adam: what is in store for the value of your house in the new year? real-estate insider has the answer and you may not like what he has to say. student debt could be the next financial crisis. one college is offering to pay off their student loans. if they don't reach a certain salary after they graduate. we will explain just how in california they're requiring more spacious houses and how it will affect the price of your aides when we come back.
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adam: one big thing you know, netflix leading the s&p 500 right now. check it out. the new year will bring rising egg prices across the united states as california requires farmers to house his in cages with enough space to move around and stretch their wings. a lot of us who live in new york this rings a bell because we
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would love to have a requirement for, quote, swing room for manhattan size apartments. we have the manhattan size apartments. i am joking about new york city apartments. if you lie down you can stretch out perhaps but this will raise the price of aids for people nationwide. what do you think? >> this is an example of overly burdensome government regulation gone awry. no doubt about it will raise the price of aids by 10% to 40%, $16 a year. doesn't seem like a lot but couple regulation on every industry and how it trickles to the consumer is a problem. adam: let me counter you. it will raise prices in california up to 40% but they expected to come back down. what would be wrong? i realize these animals are being cultivated simply for consumption but what is wrong with letting them turn around and stretch their wings? >> this increases the space of chicken has by 70%. animal rights groups gone crazy
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and we will do is hurt the consumer at the end of the day. the price will be greater in california. might not be 40% level at 15% higher. that is a problem. you have to take into account cost and that is something the government does not do. adam: i will leave this chicken space story for now because i think there are other issues in new york especially new york housing people can relate to because there is and the ranch is too high. let's look at the year ahead. jason, you have some predictions for 2015. >> for the most part housing has been disappointing this year. you have a lot of mixed reviews and on the numbers you had existing home sales plummeted 6% last month. i think prices went too quickly from the housing bust and we will see a lot more leveling off in pricing and in some markets it got frothy. i was in miami. there were seven eight trained on the way to the airport.
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a lot of south american money and overseas money but you will see a little bit of that foreign money, an investor backing off and more of the owner occupants tried to get into the market but there is an affordability issue. adam: let's talk about miami. that will affect the high rise apartment condo drilling market but what about people with standalone single-family structure? our price is out of whack and will they fall? >> they are artificially propped up. we need to see some resets in some markets and you will see that the first-time home buyer is going to put their feet back in but it will be very slow and they are usually 40% of existing homes sales and not even 25%. adam: the household formation people in their 20s bike property doesn't seem to be the case people are renting. what is the argument to a twentysomething who might be coming out of school with a mass of college-to buy property? is there an argument? >> another big problem.
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the average to incredulous $30,000 in debt. that is a lot of that to buy a house on top of the. interest rates in the next year are going to rise. if they rise to 6% which is a big jump from where we are is going to have a significant impact on the affordability so we have a major affordability issue in america in 2015. >> 1-third of millennial living at home, you have a problem. they're not even looking to buy homes but people still in their parents' basement. is a real affordability issue. exactly right. adam: i will throw in something to that. there is an inheritance for a lot of people as baby boom has is a way. those people have money. are they buying property? >> it is interesting. we will see how that plays out but i still think 15% real usage on employment in the millennial generation and a lot of them are going to their parents' homes and living there for a while to save money. is a difficult time but there's something else a loosening of lending standards and that is a
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dangerous thing. 3% down payment. adam: we shouldn't be in the business fannie mae and freddie mac should be in the business of promoting homeownership. when we promote home ownership we have things like bubbles. adam: let me ask you quickly you don't know the algorithm, we're talking real world example in new york city my apartment which has different some of valuations that are crazy all over the board, it swings $1 million is crazy. does anyone trust in the real-estate world there are valuations? we all go to what this is worth. >> it is not going to be very scientific. it is not scientific enough. >> the value $2 million, what on
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earth over 1 million. >> and that is coming. >> thank you very much, appreciate it. energy tighten harold hammer says he can't pay that $1 billion divorce settlement. all thanks to the drop in oil. we have a divorce attorney talking about it after the break. these ally bank ira cds really do sound like a sure thing but i'm a bit skeptical of sure things. why's that? look what daddy's got... ahhhhhhhhhh!!!!! growth you can count on from the bank where no branches equals great rates. if you take multiple medications, a dry mouth can be a common side effect. that's why there's biotene. it comes in oral rinse spray or gel so there's moisturizing relief for
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adam: a landmark divorce settlement, $1 billion for fracking billionaire harold ham but now he says he can't pay because the price of oil is so cheap. joining us from denver is divorce attorney sharon like go. come on. he is crying poverty and is worth billions! he is going to lose. >> that is right. one man's stealing is another man's board. he is going to lose. it is hard to overturn a judge's decision. the appellate court can reverse a district court judge only if the judge made an error in assigning the law or abused their discussion.
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assuming the judge understood the law, if she is used to spending $100 million a year on her upkeep, a billion dollars is not going to cut it unless she said more. -- >> he thanked the judge and called it on record. does that get him thrown out there? >> affordable is not equal. the world means fair. the judge felt it was if the economy decision, it was too bad for the heisman. >> i'm not a lawyer
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>> it seems like quite a bit of audacity. it permitted him to keep 94% of his $18 billion increase at stock shares during 26 years of marriage but that is not fair, what is. >> he started this company and ownership for 20 years prior to being married. that 20 years, the value of the business, 20 years and the appreciation the value is his. >> the homemakers, the white is raising the kids they're often underestimated. they didn't have any kids. >> u.s. playing the corporate
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wife. and eating chocolate bonbons and es h baous ll t% ed $or chagrighctlrev liw y pe iobons and embarrass him in public, the court is not going to consider her contribution to be worth much. >> let's bring in merry chase and carpenter i got to ask about this before i let you go. another billionaire divorce situation. they were married, divorced and remarried in 2013 so now they're getting divorced. how often does this happen. how often does that happen, how often does it happen when they get divorced? >> it happens rarely. i practice for 30 years two three cases where people remarried. they were married for a short time, divorced, got remarried and they were married for 30 years and had four kids and
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several million dollars and another case they were married 4 equal parts of time and it becomes more complicated when they get married and go to work a second time dividing it as separate from marital property. people make se dp decisions, they get divorced out of fear a in grand they are not ready emotionally. these people weren't. the wife is going to have to find a way to scrape by on $1 billion. >> as i let you go $1 billion doesn't go as far as it used to. doesn't go as far as it used to. >> it is not worth what it used to be. adam: thank you, happy new year. new republican congress going back to work this month. one of their first orders of business, repeal obamacare but with the president reall t to pull out of the japan, will anything congress does matter?
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>> very excited but we have to pass the bill so you can find out what is in it away from the fog of the controversy.
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adam: check the big board right now. the price of oil is still near a five-year low. the national average for a gallon of regular gasoline at $2.23. remember, it was $3.52. the state average for regular gas. thirty-eight states where at least one station at gas below $2 a gallon. the cheapest gas in the land, $1.51. i want to stay on oil and gas prices. let's bring in scott.
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>> i think we have slowly, but surely seen the oil price go lower. we have the rest of the world. the central bank is using. obviously, the bottom line is the u.s. economy is not firing on all cylinders. >> the chance that could happen. the guest that we have had on today say that it won't, but what if it did. >> i think oil will stay around the 40, $45 level. to 11 as we speak this morning. something is wrong.
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even with that $75 billion they're back pocket, i think that we will slip out. more people in michigan are on food stamps. let's get back to obamacare. will they be able to repel obamacare? the question is, the president will veto it. what good is a vote to repeal it? the way he is doing this.
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also, the medical device packs. restoring the 40 hour a work week. >> with a pair veto those reforms? >> that is the big question. president obama has been very clear since the midterm elections. he really will not budge a lot. i will predict that he will not be too keen on repealing any part of this piece of
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legislation. >> i think you are exactly right. the president is far too optimistic. the fox news poll said that 58% of voters want obamacare. >> i think the public perception is only going to get worse. it certainly has a majority disapproval that you just talked about. hillary clinton still had a health plan in the 90s that looked a lot like obamacare called hillary care. she will have to answer what she
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is going to do going forward. politically, it is good to be very bad for the white house. >> happy new year and thank you very much. up next, the college of michigan says if you do not find high-paying job after graduating, they will help pay your student loans. ♪
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1%. the outstanding company. that outperform up three and a half percent. much more coming up on "varney & company." keep it here on fox business.
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adam: adrian college located in adrian fisher ken will start honoring. president of adrian college joins us right now. in order to make this kind of promise going forward. >> you can see it will not get any better. it will get worse. they walk across the graduation stage. she lives with the people. i would imagine the performance.
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is it accurate. >> students were trying to make all of the right decisions. we consider it a security blanket. >> it just feels like it is spending on you. >> we brought an additional 50 students into this year's freshman class.
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this is a business. we did not do it for that reason. we care about these young people. we made this guarantee. adam: do you think that congress needs to revamp student debt? >> secretary of education heard about this idea. a spokeswoman said, she thought it was a great idea and that they applauded the efforts. indicating the senate and house and administration. college and universities need to do our part as well. we think that this is a good solution.
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adam: what is the point of health insurance if you cannot pay for the deductible. they will get the bear minimum care just to avoid paying the high deductible. the middle-class solve the deductible go of. now they will not get the healthcare even though they have insurance. >> the middle-class are getting squeezed. it is 80% now.
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this is in usa today. on the west coast $1300. this is a large amount. >> it is a large amount of money for people indeed. they do not have $1300 lying around to pay for these top their visits. you have to come up with the money. we will just see more people, potentially going into bankruptcy. >> it seems like a way to do that. obama promised healthcare would be cheaper than my health care bill. the deductible was $8000.
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>> right now going for the high deductible or simply not taking the insurance. they cannot afford that either. this is putting a lot of people in a tough situation. >> giving this date in late christmas present. jeff flock in chicago after the break. ♪
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adam: trivial question for you. how much does a shiny new iphone six cost? there are a few prices. >> 7500. 7500. 7500. 7501. >> rachel. $850.
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>> 930. i hope the marketing people at apple are watching this. $1169. >> a one-year service plan. you can get a brand-new iphone. $200 with a two-year contract. jeff flock. what is up? they thought the iphone was worse. look at the numbers. yesterday, all illinois voters got a reduction in their personal income tax from 5% in
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the corporate tax rateentrom 5 to.75. grthing he said no more taxes. current governor had said we need that tax money. a huge hole in his budget. since january of 2011 when this tax increase went into affect, illinois took in $30 billion more in tax revenue. the legislature budgeted on not. they have also added $6.4 billion of unpaid bills.
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good luck to them. get ahead. >> jeff flock, thank you very much. steve ballmer bought the l.a. clippers for $2 billion. ♪
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for a closer feeling to natural teeth. fixodent. and forget it. >> i absolutely am going out of business. >> pared down everything i've got. i swear i am going to do this. >> you never swear on tv. he is going on a digital diet.
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one person that does not need any diet is deirdre bolton. >> thank you very much. a cable network may be on her shopping list. changing every day. what this means for you as a viewer in the new year and for advertisers trying to get your attention. they are staying private longer. we will give you the short list of the implications. more cash on the balance sheet. yahoo! has spending power. suggesting a purchase and add tech or tv. no matter what it has to integrate the apps.

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