tv Your World With Neil Cavuto FOX News October 24, 2011 1:00pm-2:00pm PDT
neil cavuto has context and perspective. have a great time. >> where can you go to forget your troubles and acted like a total idiot? >> do not say las vegas. >> las vegas! >> las vegas! >> las vegas! >>neil: las vegas, baby, where president obama is hoping to wipe out his troubles with another land to help homeowners out with theirs. welcome, everyone, the president is moments away from announcing homeowner heaven in sin city, a plan he says will finally fix the mortgage mess by allowing more americans to get out of the mortgages they are already in. it is a huge political bet in a
state where all bets are off. unemployment in nevada is the highest in the nation at 13.4 percent. that is why richard with the nevada public assembly is not nudged by what he is seeing and hearing from the president and joins us from reno. why not a fan, richard? >>guest: well, i'm not a fan because i look at president obama and most of our elected figures as violating the constitution and the principles. i would love to see the government just get out of the way and let us get back to free enterprise. we have enterprise but it is not tree. it is government intervened, interrupted enterprise. >>neil: here is where the president will draw a distinction, that the government isn't enforcing anything or telling banks to cut back on the amount of principle any borrower owed and the only ones eligible
for this are not those behinded on their mortgage payments but those who are country through just the singing of the market, just have a mortgage that is underwater, so, there is no force. there is no pressure. there is an opportunity for those who are making their payments to take advantage of the low rates. what do you say to that? >>guest: well i don't know if i can get my brain and it. it is probably much bigger than i can grasp. but, again, i go back to the fact that the government, they set the fire. they are like the arsonist. their behavior strikes me at just throwing more gasoline on the fire. >>neil: so anything they do will compound the problem. what do you think should be done? let the market work through the inventory of homes? you are no stranger, your state is ground zero in this mess. do you thing it should, the market forces should slowly dig
out? >>guest: right, i think all the stimulus, it just put a band-aid on the problem. you have to let the market operate. we have to get back to free enterprise from the inception of our country in 1789 to 1913 we became the economic engine of the world with little government, little regulation and lots of freedom and that is how we became the economic engine of the world. our monster in washington, dc is what is crushing this economy. if we can shrink the size of that monster, you can see we have the natural resources, we have the people, we can get back to prosperity. >>neil: you have a beautiful state, as well, thank you very much. good to to see you. the president will make the announcement in las vegas, at a casino, and the guy who used to home the bellagio will not be
there. >>guest: the policies of this administration have destroyed the living standard of the working class in america. what is ostensibly 9 base of the democratic party is taking the worst hit in history because of the unbelievably uninformed policies of this president and his colleagues who have fostered this ridiculous class warfare, the nonsensical policies that have been proven to be ineffective and unsuccessful everywhere they have been tried. >>neil: i know you have been a big supporter and backer and confidant of harry reid the prominent democratic senator from nevada who just squeaked by and he led the charge in the senate for the president and endorsed the health care plan, were these costs escalating prior to health care? or did they just get out of the control since health care came?
>>guest: they were escalating before. at a rate of 8 percent a year. and the devastation of obamacare we estimate to be north of twelve percent. the rate of caseylation -- the rate of escalation has increased by 50 percent of what they did. i am frightened to death about the future of business. >>neil: you are not frighten abroad. >>guest: the policies are more steadfast, more carefully considered. you know what to expect at least in asia. people matter in asia. and working folks there get primary consideration. the president gives lip service to this sorted of thing.
and the speeches are absolutely enthralling but so much of what this is all about, today, is not what, it is what they do opposed to what they say. the speeches are great. the actions are horrifying. it is almost impossible to believe they don't know that what they are doing is destructive but they do it anyway and, frankly, i don't understand that. my friend, harry reid, hung on on me the other day for the first time in 40 years, that is what it has come to. i supported a democratic congresswoman and i called her during obamacare, and i said, what are you doing? how do you do this? this is killing the unions and us who are supplying health care to employees and she said to me "i know it is terrible, my husband is a doctor, he hates
it, too, but if i don't vote for it, she will punish me," and "she" being nancy pelosi. and i said every politician that has sold out their does it wasn't has had a lame, terrible rationalization like this. don't ever call me again. she said i am sorry you disappointed me i still love you. we ended the conversation. that is politics if america. if any businessman or working person doesn't understand this is a turning point in american history i'm afraid we will get what we deserve. >>neil: steve wynn coming out winding them and the fallout and backdrop of the president in nevada tonight. we have pat caddell with us. this is a must win state. >>guest: he needs it desperately but the problem is the high unemployment and the housing market has gone to hell in a hand bag debt and steve wind said -- steve wynn said the
most important thing it is the base of the democratic party, people who are suffering. and what the strip is about is to raise fundraising where he it ises with people raising $38,000. i don't if he has talked to a real america if a long time. he goes out and does the programs which seem to keep doubling down, good thing he is in las vegas. no one believes the government is competent to do this foreclosure mess, fannie mae and freddie mac are incompetent. >>neil: but you have to be current. so, if you are in arrears, and maybe that is a new twist, here, it is not going to help you. it only helps you if you are just underwater in your home which could be a fine idea but i wonder how par and who it benefits. >>guest: a few hundred thousand people, maybe. last time on the last housing
this will be another continuation and its is follow meanwhile, we need the leadership, and there is the sense that he is not leading and he can attack congress all he wants but now the country is looking for a leader and if a country feels this decline, they will not go gently. >>neil: the president is more astute politically than critics give him credit. if you offer a program now, with the president arriving in las vegas and you give him the average american an option to take advantage of the mortgage relief programs for which he or she has not been able to qualify because it only goes to those who are in arrears on their loans they want in on this, too,
this is an opportunity to get in. >>guest: look, will that make a difference? it might. but i don't think it will be big because this is a re-election. what do we have to do to buy you? by the way, we not going to use congress but unilaterally do this, we will not let anything stand in the way of re-election, we will give you this or stimulus money or anything, but no leadership. and the republicans suffer from this, too, the context, they have not stepped up and said how to make america great and we will not go into decline. this idea of a political class that their job is to manage what they view as a decline, if someone challenges that, both of the political parties are in trouble, and this president has a problem. >>neil: what if the republican response is we don't believe in
helping anyone that is underwater. is it better that the republicans shut up? >>guest: i would be, i would be doing something. people are suffering and they need to show compassion but the problem is the government cannot make anything wrong. that is the issue. does anyone believe this government can function to make the program work and hand it to fannie mae and freddie mac? are you out of your mind? that is what i wrote say. but they will go to the part where they look like they are stone hard. >>neil: you are scary. >>guest: why aren't all the entrepreneurs, they are the ones who are speaking truth to the country, not the political class. what is wrong here? >>neil: very good point. thank you, pat caddell. well ahead of the rick perry flat tax pledge is he getting a
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>>neil: can't find a jobst don't -- find a job? don't blame uncle sam. nothing supports the claim that regulation is holding back hiring. something is. and a money manager suspects it is a lack of confidence and everything from and everyone in washington. it is interesting, though, because look at the dow today. another 100 point sprint but that in large part is part of the view that europe will get its act together, not that we are. what do you make of that? >>guest: you are right. a lot of it has to do with jump getting its act together and the fact that corporate earn spring been strong. but corporate earnings have not translated to job. forget regulation uncertainty how about regulatory certainty. we had ten new regulation as
week put in the last year. at the same time the small business owners are struggling to find the new consumer. are struggling to find the new employee and the regulations are costing small businesses $10,000 person employee, $161,000 per business and for manufacturing, we are trying to help manufacturing, but it costs an estimated $680,000 in regulatory expense alone. so, yes, we have uncertainty about obamacare and what dodd-frank will do but the reality is we have too much regulation. >>neil: you are smarter at this than i am but i look at it simply: if you are a c.e.o. and we just had steve wynn, you do things that base what you will spend on your mood. if you are in a good mood you will spend more. if you are not, you won't. as simple at that.
the difference between c.e.o.'s and average joes c.e.o.'s have more money to spend. but, bottom line, when i hear everyone from steve wynn to a small baker owner in new york city saying they are not optimistic about the future, naturally, regulations or not they will keep their prouder dry and their wallets closed. right? >>guest: absolutely and you look what the squabbling is doing to europe, slowing down the economy, and you bring that back over here, the super committee which i call the stouper committee, they do not have anything that will give us confidence. >>neil: you are ahead of most. the super committee is the group that is in charge before thanksgiving to come up with $1 trillion in cuts before the cuts will kick in. let me put that around. what if it does not come up with the cuts? they still come in.
would it satisfy guys like you or would you not like the way it was done? >>guest: no, because it is not going to give you any confidence they can really do anything meaningful. there is no will, no will our politicians to dot right thing, to make meaningful cuts, no will in europe, and if you look at the real problems facing our budgets moving forward, they are not being addressed by the congressional super committee. so, you are right, it goes to a lack of confidence in leadership. but it goes beyond that, and forget small businesses for the moment, and lock look at big business. bowing is trying to move a plant and the national labor relations board is trying to stop next and exxonmobil is trying to drill and the epa is trying to stop them so this goes well beyond the uncertainty of big and small business. >>neil: thank you, jim, from texas. still saying mitt is it and the front loaded primaries make mitt
>>neil: and mitt filed the candidacy in new hampshire where the primary date will be set for january 10 now that nevada has moved back their caucus day clearing the calendar which will give romney a boost. and frank luntz is not so sure, the pollster extraordinaire with me now. so you are not in the camp that says go early, go fast, to mitt's advantage. >>guest: he has a bigger problem and that is texas governor rick perry. he cannot have the debates or rick perry is all over him. it does not make rick perry look good but it holds romney back and this constant brawl could
cost the republicans their election in 2012. the american people do not like the yelling or the shouting. >>neil: but it is still early. >>guest: but more people --. >>neil: do you remember every slight? i don't. i remember oh all" slights. so this will be residual value? >>guest: it is what republicans and independents and democrats do not want which are politicians yelling at each other. >>neil: like this, like this it illustrates the point. >> you lose your standing because you hired illegals. in your home. and you knew for about it for a year and the idea that you stand here before us and talk about you are strong on immigration is on its face the height of hypocrisy. >> governor, why think i have ever hired an illegal in my life
so i am looking forward to your facts. again --. >> i tell you the facts. the newspaper -- tell the truth. time for you to tell the truth. >> i get 60 seconds and you get 30 seconds to respond. anderson? >> you had illegals working. >> are you going to let me finish what i have to say? look, rick --. >> follow the rules. >> a tough couple of debates for rick and i understand that, so you will get this way. >>neil: they did not like the exchange. kidding. kidding. the nastiness did not help. >>guest: they expect them to reach above that, to be presidential nothing about that which was presidential. >>neil: was he wounding the presumed frontrunner or both were changed in a childish
exchange? >>guest: a combination of childish exchange and the way it was done and rick perry has a great record as governor and he is not talking about it by tearing down mitt romney and if i were romney's advisor i would say you do not have to respond that way. if rick perry takes up your time and space, let it go. why is it that gingrich is winning so many debates? because he stays above it all. why is herman cain in first place in the polls? he refuses to attack the opponents. >>neil: why is romney coming ahead largely unscathed? i say "largely," but they seem to think he is holding his own. >>guest: and he is actually improving over time and demonstrated she presidential. romney is a stronger candidate today than three months ago. >>neil: that is my point. who is to say this aggressive give-and-take will not take him to the white house? >>guest: because the democrats
are preparing 30 second ads of the criticisms and they will say doesn't take our word, ask the republican governor of texas, ask the republican senator from pennsylvania. >>neil: lbj in the 1960 race ripped j.f.k. alive. >>guest: that was before cnn and the other network and fox. >>neil: everything will be more closely scrutinized. >>guest: and everything is taped and on video and we are already frustrated. >>neil: what about the new ad that i don't want to show although we can physically see it, do you get a sense he is getting his political legs back, rick perry, anyway? >>guest: he is strong willed and will not give up or give in and romney will get the run for his life. >>neil: do you get a sense that candidates in that position are desperate? >>guest: rick perry, again, his ideology could be closer to the republican primary voter
than romney's but his tone is certainly not. and romney's willingness to attempt to get above it all is exactly what voters window to see and, again, herman cain is at 27 percent because rick perry and romney are going at it. i think herman cain will win in some states come the 1st of january and i never thought that until now and that is because republican voters are saying i want a positive vision, look to the future and i don't want the traditional politics and herman cain has the personality that i'm looking for. >>neil: very interesting. and now, a little bit about back to the steve wynn thing you had a focus group listening to a lot of steve wynn's comments and they liked the message. >>guest: they loved it and he was in the 80's and 90's, and does steve win is more popular than any republican congress and i said why not run for office,
and he said only if i can take a pillow to the white house. >>neil: people don't know his actual home is larger than the white house which is an interesting point but interesting he does hit a cord. >>guest: he is beautifully articulate. he was an english major at the university of pennsylvania and you will hear it in what he says. and his voice is beautiful. three great voices: richard burr done, or son welles. >>neil: and barry white. so were more punch because it is so deep and in your face. >>guest: and, also, he says how everyone feels and does not pull a punch. the politicians try to measure what they say. steve wynn means what he says. he loves his employees and how many c.e.o.'s and say they truly love the people who work with them, not for them and he is loyal and that is why he is
agitated when he sees what happens in washington. >>neil: and they love him. >>guest: he has given better benefits. >>neil: when thedown was short of health benefits he gave the union $2 million. >>guest: he puts people first. you hear the slogan, and steve wynn actually does it. >>neil: the brilliant frank luntz who understands the trends before people know what they are saying. the latest republican tax plan, does it have this governor's vote? mitch daniels is next. you busy? management jt sent over these new technical manuals. they need you to translate them into portuguese. by tomorrow. [ male announcer ] ducati knows it's better for xerox
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>>neil: ahead of tomorrow's innovating we are getting specific's of rick rick perry'st tax plan. a flat rate in the area of 20 percent, but, it will be optional, everyone doesn't have to participate. steve forbes is a fan but what does my next guest think? indiana governor mitch daniels joins me now. shouldn't everyone be on board, because that gets to be like france, right, value added plans and this, beside? >>guest: well, if you ask me what i think of the proposals i like them they are headed in the right direction. lower. flatter. more neutral. get rid of the preferences that have grown up in the codes since
we weeded it successfully in ronald reagan's second term. and let money start finding its way to the places where it could put someone to work not where the tax code tells it. >>neil: i agree. but what concerns me and i guess the governor will spell it out, it is optional, you can participate or not, that will keep the existing system, a monster as you have mentioned, it will keep it in its form. sunday the idea be to senator a wrecking ball to what we have and start something different? >>guest: i do think that would preferrable but with the situation we are in now i say whether the subject is tax reform or the reform of the safety net programs, the ideal may not be, if ideal is not attainable go with second best. i would prefer to see a complete overhaul of the system. my guess is, actually, if you did what governor perry you say will suggest, that the vast
majority quickly would emgrit to the new system and it may not have much difference. >>neil: i think you know more than i so i appreciate you deferring to me in what we are hearing but the talk is you and governor perry have chatted a great deal. is that just talk? or do you do that with all the candidates? what? >>guest: well, i know them. and like them. and i talk to them when they want to talk to me. we have not had great in-depth department. >>neil: does that me perry has sought you out? >>guest: he talked about it in brief but i wrote about it in a book i published recently and i called for essentially a flat tax or close to it as we could get so, maybe, maybe he knows what i think from that context. >>neil: do you thing as frank luntz mentioned, that rick perry might be hurting himself and whoever the nominee could be
even if it is himself, with these personal attacks? or certainly the romney people think are personal attacks and what the studio audience as measured by frank luntz construed as personal attacks. >>guest: well, i don't, the, i believe that they ... we are better off without that in politics. if you are in pursuit of results, it is best to bait one's tongue. correct misstatements of court but not engage in the back and forth. i don't think it will make a lost difference in the end. what matters, finally, will be how our nominee conducts himself in the one-on-one of president obama. no one has proven a more avid practitioner of personal attacks in politics than our president. >>neil: so, when you see these
others who are rising, herman cain, for example, who has proved to be more than a flash in the pan, with the 9-9-9 plan, and his numbers are rising. what do you make of that? >>guest: people of saying they like candor and specifics and they sense although no candidate certainly in the president and not our own has fully leveled with people about the extremity of the situation but they can sense it and deliver when someone speaks forthrightly about a very big bold departure that has jobs and has economic growth of the private sector at its core, like herman cain, i think there is an audience for that. probably governor rick perry will find a receptive audience with his similar suggestion this week. >>neil: governor you were nice enough to stop and with us in chicago for the 15th anniversary show and i noticed with the crowds how much they personally
like you and i also thought you were governor of illinois, at least that crowd wanted you to be and i thought of this presidential race and how up for grabs much of the midwest is, the whole nine yards an area where republicans were weak for four years ago and the president took your state back in 2008, so, someone like you would be very advantageous for a ticket, don't you think? >>guest: well, i don't know, i had fun that day with you on the beautiful day by the refer and, you know, i love people and i love to clown around with them and i do notice from time to time a lot of other people in elected office in both parties are clumsy with that but to me it comes naturally. >>neil: the clowning and part, no dispersion to the president and vice president but there is a little bit more latitude being vice president for that.
>>guest: well, to each his own. what matters is who is going to be president 15 months from now and i believe it is a matter of genuine urgency that there will be a huge change in national direction. the president i have come to conclude, will just simply never get it. he thinks somehow that growing government has a positive opposed to a negative effect on the likes of people at large and the comments by senator harry reid were astonishing talking about the private sector doing just fine, but we have to spend more money on government. the clock is ticking on both our economic and our related debt problems and we just is to change direction in a big, bold way. >>neil: even for the number two spot so you make a compelling argument so the nominee, whoever he or she is, comes to you and says, you articulate a vision i know you can take up against joe biden
and take us to the white house and you could be in the naval observetory, a wonderful home. >>guest: i thought i was doing a good job of avoiding the question. again, in all seriousness, i'm not running. it wasn't in the cards for me and my family and what will matter is what our nominee sees for america and how well he or she friends that and i do hope as your early question was, i think prefigured that the next year's alternative campaign by our party will be a bold one. a clear one. a specific one. that talks about growing the private economy and that taxes about meeting our debt obligations before they consume the american dream. >>neil: governor, a pleasure again the thank you. do you thing the world's largest retailer is not worried about the christmas shopping season?
>>neil: this is one of the stocks that companies that have, i don't know, a barometer or a reflection, netflix, remember they has the jacking one of the prices and redid the business model? well, although the earnings jumped in the latest period it was less than thought and worldwide, furthermore, it was down close to two million streaming customers, so, netflix reporting 21.40 million subscriptions at the end of the third quarter but $23.79 million during the same period did a lost them go, in the united states, because of the new tiered pricing strategy? we will see. but ... not good. in the meantime, walmart is looking to jump start holiday shoppers announcing a new price
matching program that is guaranteeing you the cheapest price on products and promising to pay the difference, even if you already bought the item somewhere else. good for you? retail experts says not so sure it is go for walmart. so, what do you think of this? >>guest: well, it is, i don't want to say desperate, but it is a big attempt on walmart to help their image. >>neil: so you could waste your time going elsewhere, just come to us. will it work? >>guest: for a certain segment but there will be so many other promotions, the other discounters where the shopping has not been fantastic because despite what you think they are shopping at the hurricane alexry level, and the discounters --. >>neil: but i told you, remember, i read it on a prompter and i discovered not as many are doing that now.
i am not misstating that people are not shopping high end. but not as many. >>guest: the discontessers have to show up. this will be a challenging christmas. but we are pull out the stops and i think --. >>neil: what do you mean? will we see a gain? >>guest: a slight gain. >>neil: what is slight gain? 2 percent? >>guest: at most. >>neil: how will hickory farms do? women like food. processed meat. >>guest: if you send me hickory families i am never coming back. never. never. never. >>neil: we are weeks away from my shopping but i know that women will eat it up. >>guest: walmart will get them back. leader is what happens they give them a gift card but most never use the gift card so they keep the money. okay? and what --.
they forget about it and it is like a gift certificate, the percentage is very, very low that use it. what will happen is, a lot more people will do more research open the internet, they will jump to amazon, then they will jump back if someone like kohl's or the others are aggressive and walmart has to do something, if not everything. are regoing shopping? soon? >>neil: no, no, never. never. you teach me a lot. faith hope, you are the best. facing a losing hand, the white house doubling down on a mortgage rescue but will it become snake eyes for taxpayers again? all we know is, it started early.
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>>neil: president obama rolling out a new mortgage rescue plan, but you cannot be behind in payments, and the president says it is a real estate win win with homeowners refinancing a lower rate without banks having to fret about cutting the principle the homeowners owe. why is my guest not a fan? why not? >>guest: well, what if a house is only worth 50 percent of the mortgage and the president give them 100 percent new mortgage? fannie mae and freddie mac have to pick up the difference when the house is sold and the homeowner cannot make up the difference, if he could he would. more than that, they will throw out the window things like income checks, appraisals, all that stuff, remember those --. >>neil: they say the appraisals are a waste because they are upside down. >>guest: income checks? what if the guy lost his job last week? it is this kind of thing that got us into the last crisis. it looks hike he is trying to
buy the state of florida and worry about it in 2015. >>neil: what i like about this, it invites people who is not taken advantage of the mortgage rework programs and not by shrinking the principle or the overall mortgage, but being able to seize on a low rate environment and assure the bank giving you this new lower rate that you are a good bet to stay in the home as the foalings are because they are current. >>guest: they may be country but how do we know they did not stay current by running up their credit cards, or they have not just lost overtime and will not be able to pay going forward. at the love the people that went belly up on mortgages in 2007 and 2008 and 2009 were capable of meeting the first payment but their problem was meeting the 10th payment and on top of that you give away someone else's money, there are people that hold the mortgages, pension funds, individual investors and
mortgage-backed securities and they will be redeemed. >>neil: but don't you think they are dicey already and holding questionable payments already? >>guest: this is that and you can say, well, gee whiz, why not? but the securities are already setting at a discount and people acquired them at a discount and they factored that in. >>neil: peter, thank you. you need not concern yourselves with killing capitalism, all the occupiers, come out of the tent and take a bath because the country is already "soaked." or . we are business in america. and every day we awake to the same challenges. but at prudential we're helping companies everywhere find new solutions to manage risk, capital and employee benefits, so american business can get on with business. . ♪
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verizon. look at all this stuff for coffee. oh there's tons. french presses, espresso tampers, filters. it can get really complicated. not nearly as complicated as shipping it, ough. i mean shping is a hassle. not wh priority mail flat rate boxes from the postal service. if it fits it ships anywhere in the country for a low flat rate. that is easy. best news i've heard all day! i'm soooo amped! i mean not amped. excited. well, sort of amped. really kind of in between. have you ever thought about decaf? do you think that would help? yeah. priority mail flat rate shipping starts at just $4.95, only from the postal service. a simpler way to ship. >> neil: finally, here is where the occupy wall streeters got it right. call tammism is all wrong -- capitalism is all wrong but not for the reason they're ranting. take a look at what these days gets on their mind. government rescue. just talk, just talk to the europe leaders might be on a
verge of $1 trillion bail-out plan for investors had investors celebrating here. european rescue is coming. weird when you remember capitalists hate government anything. remember those days? especially government rescuing anyone, any government, anywhere. they used to hate it every time, all the time. but that was then when capita capitalists were self-reliant. not now when self-reliant capitalists are not self-reliant. now they're much more government reliant. the same government big bang boss bash, but when their own hineys are on the line, the government money they will happily take. look at what gets the marbles going these days. someone comes to their rescue, down but it looks like no one is coming to their rescue. so up the last two trading days on talk european government are at the ready to bail out players that couldn't ask it, after being down last monday on talks when bail-out
didn't cut it. up when it looked like helicopter ben bernanke would scoop in to rescue them all. down when ben says he's out of goodies and they have the serve to be mad at him. that is the real trend occupying wall street. if only the occupiers could see it. they're too busy bemoaning capitalism to see the guys they hate, totally hate. aren't even acting like capitalists. it's not just here. happenle in europe and across the -- happening in europe and across the globe. so bad that they're ripping the united kingdom prime minister. nicolas sarkozy telling cameron to shut up and butt out of the e.u. financial problem. that is getting robin leech upset. yes. robin leech is upset on fox business network. if you don't get it -- >> oh, my god, i think you should demand it. >> what if you don't have it? >> call your local cable