tv Your World With Neil Cavuto FOX News June 3, 2013 1:00pm-2:01pm PDT
>> neil: new front man, same old fire. we the new question. not who knew what and when, more like how many knew what and why the heck did it take this long to admit it at the irs? >> man, i'm confused. welcome, i'm neil cavuto. he ills the new irs chief but congressional investigators more interested in 88 irs indians the number of agents we're told now were targeting conservative groups for years. tom's liberty coalition is one group. you wonder how two rogue agents could pull this off. apparently those agents had some help, a lot of help. what do you think of that?
>> it was pretty obvious from the beginning that this was much bigger than the cincinnati office. i think we're going to see in some congressional hearings there were other offices involved but there's a path from the top down. this its not a bottom-up operation. >> neil: when that many agents are involved -- i have had legal scholars say when it comes to irs cases where they go after a large number of groups claiming for filing for tax exempt status, this is not unusual. what is unusual, and you were at the receiving end of this to make sure they are all of the same political stripe. that is what is unusual and that is what is offensive. >> itself is offensive. and again, still think that they're barking up the wrong tree. there's a lot of people on the left, including "the new york times," trying to provide cover. i mean, here it is, we said the irs was wrong the irs has now admitted they were wrong and inappropriate, and then you have the "new york times" running stories saying that, those questions were appropriate because it's so unclear what is political activity or not.
that's factually not true. >> neil: that's going to be your strategy to go after these exemptions, then go after them for everybody. left groups included. that did not happen. where do you think this goes now? the idea this was far bigger swath of agents involved and targeting now we're told more than just groups like your own but individuals like yourself. what do you think of that? >> well, first of all, the american people should be outraged. this is absolutely an abuse of government power. and that is where this fundamentally starts. now, where it goes from this is up for congress and the senate to find out, and i think that is the important job that congress must do. neil, there's a real question here for congress about separation of power. i'm quite frankly aappalled at the contempt some members of the administration have shown for congress, even in this last report that the deadline was
friday. >> neil: the irony there, they're claiming that is the irs -- on account of privacy laws that you don't want to -- that the same agency, whether deliberately or not, plowed all over privacy rights of those groups and individuals involved, is now using that as a defense to not hand over information. >> that is one of funnist things if there is any humor in this, one man named in an irs letter, when he inquired why he was named they told him for privacy reasons they can't teal him why he was named. >> your privacy has been invaded but you don't have any right to know who invadeed it. the only policy demand has been robert gates calling for darrell issa to apologize for essentially calling jay carney a paid liar. what did you make of that? >> you know, jay carney has about as much credibility today as baghdad bob had at the end of
the first iraq war. the tanks were going on behind him and said there's no tanks there listen, the american people demands the truth from our president. >> neil: it does sort of poison the atmosphere that this looks overly opportunistic and overly political. >> the facts are the facts. it's real simple. we want the truth. where i live, the truth means what actually happened. why does jay corporationey come out, whether it be fast and furious, the benghazi, irs, or anything, with all these political talking points that factually turn out to be false? where i live that's called lying. >> neil: no one has apologized to you. >> no. there's been -- well, miss lerner did say she apologized to all the tea party people. >> neil: said i regret. i'll behave, young man. tom, thank you very much for the hell you have had to deal with.
he gives back what they throw at him. meanwhile to another controversy brewing, this could make the irs thing pale down the road. one involving the health some human services kathleen sebelius. did she break the law by forcing donations out of private companies to help potentially promote the healthcare law? oklahoma republican senator tom coburn warrants to know and called for right now an inspector general to conduct an independent probe. senator, good to have you. answers on any of the above? >> not yet. i have no doubt in my mind they have broken u.s. code by augmenting their appropriations. i have had several large insurance executives tell me they were asked to contribute to this. so, we're just beginning on this, but if it's not illegal, it should be. and for sure it is unethical.
and it is definitely a conflict of interest to extort money from the people you regulate. >> neil: i was wondering, what about the companies that chose not to? are they pigeon holed or -- do they have a big scarlet letter on them? we asked you to contribute and you didn't. >> this is a lashing group of people, from pharmaceutical makers-insurance companies to chain pharmacies packaging companies they've hit them all up and 31 u.s. code 1301a says you can't do that, and so the -- i guess disconcerting thing, neil, is here we are outside the law, or at least appearance of being outside the law, in another area in this administration, where they just don't really care what the rule of law is. we want to do this so we don't care what the law says, so we're
going to do it. we're going to get to the bottom of this. >> neil: where does this go? in reality the secretary has come out and said, well, thanks to republicans blocking our funding and following up financing a lot of the progress of the healthcare law, i think her comments were, we kind of had to do this. you say what? >> that's the art of rationalizing why i broke to the law. why i ate my homework. the fact is the law is the law. and that just shows you the attitude of this administration. it doesn't matter what the law is. they're going to do what they want to do. and that
that ben bernanke and miss hiss buddies have been throwing around think might not be throwing around as much and that could change everything. what died you hear? >> as you know the fed has pumped trillions of dollars into the economy the last few years to try to help keep interest rates low and stimulate the economy so people can buy houses and cars and stuff to put in them but there are concerns that all of this so-called quantitative easing, purchases of bonds, could lay the foundations for some problems down the like, like asset bubbles, housing bubbles, and inflation. so we have heard from some fed officials, in including one today, that the fed may start to taper this back. dennis lockhart is the official we spoke to this morning and he said he would support that as long as he sees the economy continuing to grow and job creation really growing. take a listen. >> i think we are approaching a
period in which it could be considered. that's not to say june meeting but we're approaching a period in which it can be seriously considered based upon sort of the momentum of the economy, which is not great, but nonetheless is moving forward, and based upon losing confidence in the economy. >> the fed is going to start cutting back on the stimulus. may mean the end of very, very low interest rates, but as interest rates move up, fed officials say that should be because the economy is getting better as well. neil? >> neil: they have a tricky balancing act. is it your sense that more than a few others are beginning to share this view, there is this sense together, we have to now start deweaning america here. >> yeah. they say that the fed has to at some point pull the punch bowl away from the party, and they
appear to be setting the table for that. they want to give plenty of advance notice here because they don't want to disrupt the financial markets. they don't want to rattle investors too much but they can't keeping too this forever so they're trying to get everybody prepared. >> neil: you prepared us, peter, great reporting as always. >> so what does that mean, then? the aforementioned punch bowl doesn't have to be taken away, just slip it back a little bit. investors could still get pinched and punched. it's the second worst month of the year, and charlie says that would do it. >> wisdom is that the market pulls back if they stop printing money. why? because that depresses interest rates. bond price goes up. they print money by buying assets, price goes up, interest rate goes down so you put is in stock as opposed to lower yielding bonds and if they stop that, the opposite happens and
price goes down. >> neil: you think the rates would go up higher. certainly there was nothing hinting in the first trading day of june that effect. >> here's the thing. so many caveats -- >> neil: absolutely. >> bernanke said almost the same thing. it's tough if you're an investor trying to figure this out, but as they're signaling the end of fro -- free money coming, the street, the dow is 28,000. >> neil: how much is based on the feds still doing this? >> i think what he is doing is hyping his open book. that's my personal opinion. why i would think that? that's what wall street always does. >> neil: you're also coming one wife a book. >> nothing to do with this subject. it's a about insider trading. >> neil: would it make a difference if it's a little bit? 80-85 million? what if they announced 70. >> they just started weaning us off, might not make a
difference. here's an alternative way. let's give larry some due here. let's say they stop printing money, bond yield goes up, the prices of bonds go down. people get out off bond funds that money has to go somewhere. there's theory that as they get out of the bond funds they put their money in stocks. stocks could still go up. by raising rates -- there's two bubbles here, the bubble in the stock market because of the low rates. people putting their money in bonds, professional investors, as opposed to stocks. but there's a bubble in the bond market. average americans are not in the stock market. they're in the bond market,. >> neil: if that bubble is in the bond market, there's bubble in housing. >> that's true, or the beginning of a bubble. >> neil: do you buy that? >> the bubble in housing? we were so far beaten down it's hard to see a bubble. i can see a bubble in bonds because we have seen so many average people in bonds, taking down interest rates to lower than would be otherwise with the
fed buying. that is just -- bear with me. if those people, sensing the bond market recallis over, start to increasingly put their money in stocks, the stock market could still be going up. that's the their rhythm it's hard to figure this out. just watch fox business and try to follow the wave. >> neil: said to our viewers, if you don't get fox business, demand it. >> demand it. >> neil: don't get fox business? >> monday. >> neil: all right. thank you very much. sir. meantime, these pictures amazing. now that storm chasing has turned deadly is it time to slam the brakes on this for good? >> are you okay? >> yeah. >> get down! duck down! something completely different.
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>> neil: welcome back. the thrill of the chase during deadly towards has taken a deadly turn now that a team of veteran storm chasers is dead. tim samaras, paul is, his son, and carl young, killed. these are professionals. everyone else should stop and think. >> i hope they do. this has sparked some discussion within the meteorological community and now on television shows, which i think is healthy. tim samar was and his colleagues were -- he was a meteorologist, researchers. he went out and studied tornadoes for the greater good, to save people's lives, and i have only heard good things about his work. >> neil: these are the videos from his prior work.
do we now -- was he caught -- >> from what i hear, this tornado was a messy one. it was a large tornado that had multiple -- sort of like a merry-go-round. very wide, and this one apparently was rain-wrapped so they didn't see it coming and also made very sudden southeast turn. >> you were wondering where it was. >> this fellow has been storm chasing for decades couldn't outrun mother nature so that should tell you something, and for every one tim samar was there seems to be dozens of these thrill chasers. they have tornado tours they set up. >> neil: really? >> for people like you and i to go on which should start. i call it tornado paparazzi. at it getting ridiculous. i watched the coverage on friday, and we had storm chaser video. i thought this is like watching a car chase. are we going to be on delay because we'll see somebody die? it's gotten to the point that it ruins what i do as a
meteorologist saying, you need to stay inside. this is very dangerous. this could kill you. and the national weather service put out a warning saying, you should not be on the road after 4:00 p.m. people were on the roads. storm chasers were on the roads. people were trying to flee the storm. it was a very tragic situation. i don't have the answers, neil, but i'm glad it's opening up the discussion. i just don't like to see these people out there just thrill-seeking. this is mother nature. >> neil: the equivalent of people that get in the steel cages cages and entice great white sharks. you're going to have them, and genuine scientific reasons. others just for the thrill of the game and the chase. >> and they're putting other people's lives in danger. i mean, first responders have been complaining. i think it's really gotten out of proportion within the last couple of years, and you know what? fox plays the video so maybe it's a greater discussion we
need to have with our managers. maybe not play the storm chaser video. >> neil: but use affiliates. you get video that comes in, you've don't know who is passing it along. >> right, right. it was dark. you really couldn't see anything. when we were on the air for the moore tornado it was light out and it was a helicopter shot, and the helicopter can zoom in -- >> neil: that was live as it was happening. >> but the storm chasers are on the ground, just a mile from the storm. that's ridiculous. that -- you're putting your life in dane. >> putting other lives in danger. again, that's not to take away from tim samaras, it's tragic and he did try to do good within the community and the society of studying tornadoes. >> neil: you can go to the video and examine it again and again. >> i'm just talking about the ones going out there -- >> neil: thrill seekers. >> just to get the video.
saw stuff on facebook, people were a mill away from the tornado, doing goofy smiles and posting it on facebook. that's not the message we need to promote to people who live in areas that could be destroyed by tornadoes. >> neil: well put, janice. thank you very much. janice, steen, weather machine and good mom machine. irs workers feel they have been thrown under the bus are starting to talk. could that be trouble for the top? i mean the way way top.
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>> neil: well, the left showing love for this gov? a new report that has new jersey governor chris christie. i was shock to see that everybody from george to prominent west coast democrats are putting their money on christie. why? >> thanks for having me. i think what is at play here is two things. one, hurricane sandy, the governor's poll numbers shot up among democrats and independence, saw him reaching out and embracing president obama when he came to the shores and that struck a chord.
the other thing was the fundraiser with mark zuckerberg in california. a different crowd so that opened up new windows. >> neil: what is going on here? the governor is a prohibitive favorite to win re-election. i know primaries are scheduled tomorrow and both he and his democratic opponent have opposition, token opposition but opposition. is the goal here on the part of the governor just to wrap up a huge re-election win and leave it to the republicans to deny that and dismiss that? >> i think the governor is ambitious and would be very happy with large double-digit margin, which seems to be within his reach. we don't know what will happen. but i think the governor is very ambitious. they don't mind getting votes from democrats, and his
fundraising base to me, a lot of -- i think he would be very happy to get some help from the other side. >> neil: the more help he gets from the other side for all the right bipartisan reasons, does re-ignite this debate he is not a real republican and the fact that the -- they're providing the money, reinforces that image, does it not? >> i guess i've been reading on twitter and drudge and a lot of negative feedback from the governor came in afterwards itch guess there's something to that. on the other side of the copy, though, fundraising is a huge -- the more money you can pull in the more people you can hire in states and ads can be put up. at that point people would also kind of turn to the more
pragmatic side. >> neil: i know we're still five or six months away from the general election and anything could happen. up until sandy came, the governor's poll numbers were very, very tight. now, of course, he is really in a sweet spot, from your reporting of the folks you talked to he will maintain that sweet spot? >> you know, as i was reporting this story, everyone seems to be saying the campaign is having a rough time getting going and the governor seems lying a juggernaut in terms of fundraising and popularity. but every person i talk to would say the same thing. anything can happen. and the slightest whiff of scandal. so, all -- from here up to election day in november, all going to be high wire act for
the gov, even though he has a very large -- >> neil: great reporting. thank you very minute. >> thank you. >> neil: the star ledger, the stayed houston reporter -- state house reporter, and will this bipartisan appeal be a hit or miss should the governor decide to run for president in 2016. former democratic pollster, noel, among your republican money friends, do they feel impressed by something like this or unimpressed? >> well, in one word, they're unimpressed. i'm going to probably catch a lot of grief for what i'm about to say but i'm speaking from the heart and speaking also as someone who wrote a book on branding and as a national fundraiser. chris christie is polarizing but polarizing to the benefit of the republican party. look, we do not have a problem, neil, in obtaining conservative votes. we have a problem and have had problems obtaining moderate and independent votes.
this is where chris christie comes in. and we're looking at 2016. neil, and we're looking at hillary clinton probably doing a presidential run. who is going to beat here? and chris christie is laughing it up in the state of california. wouldn't that be funny if someone like chris christie ran in 2016 and the state of california went red? >> neil: go back to ronald reagan for that to happen. let me ask you about that, pat, and this notion that, let's say, the governor turns the bluest of blue states very, very red, at least with large landslide election win as some think it's possible. isn't that evidence that is almost too much for republicans of any sort, conservative or otherwise, to dismiss? >> well, i don't think you can dismiss it. and i think there are people who are unhappy, but i think she put her finger right on it. look who he appeals to. and i -- it's very impressive. you can criticize, i suppose, if
you're a republican, he was too nice to obama in sandy. he does have his moments of going off script but at it also his best reaction. i was stunned on the article. i was stunned the pool i saw, recognized here, giving him money. >> neil: they're giving him money and not giving it to democrats, so, me thinks they find in him -- >> very good candidate because they see him in a way -- i think it has to do with the fact that in a country crying for leadership, desperate against the political class, here's a man who speaks his mind, speaks differently, and seems to be a leader and seems to get things done, even people who said they disagreed with things were writing him checks. i can understand in new jersey, he is way ahead. people give money to candidates. that doesn't explain people in illinois, california, and elsewhere. it is a very interesting
statement, and i think it reflects well on him, and his chairman said, you know, look, it's the education reform, he is taking on unions. the guy is effective. >> because he is popular with both parties, ate least -- at least moderates in the democratic and republican party. maybe if the can't get through the republican conservative juggernaut, can't get invetoed cpac events, maybe run as an independent? >> that's one thing i know my friend will agree with about cpac. i was outraged when he was cut off, and the more that the conservative base of the republican party shuns chris christie, it puts us right back in the same darn problem of looking like we're not tolerant, and that we don't like these type of republicans. it is going to affect our brand.
so, i think that if we want to get real, we're going -- we need to take a serious look at chris christie, and i think that in the 2016 election, it's going to be an even bigger money race you. better look at who has the ability to cross lines and raise money and who has what i'd like to call a teflon brand where they can survive a 2016 election against somebody that large. >> neil: can anyone out-finance the guy? >> i don't know. that's not the point. it's his reach. i'm less interested in money in presidential campaigns than in broad reach of support. >> neil: he has the broad reach and he has the money. >> and he has both. and let me tell you something. as you and i talked at the convention, after his speech, you and i both agreed sitting there, that was the kind of speech that appealed to americans not of the political class. >> neil: very powerful speech and you were both powerful
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you get a percentage of your home's equity as tax-free money. if you have an existing first mortgage, a reverse mortgage can pay that off and you can use the remaining money for anything. plus, you're not required to make any monthly mortgage payments, as long as you live in your home. and here's the best part. you still own your home. when you call one reverse mortgage now, a licensed expert will give you a free quote and they'll send you a free guide and dvd, with no obligation. quicken loans and one reverse mortgage are companies you can trust. call one reverse mortgage today to find out if you qualify and get your free quote. >> neil: going rogue or just getting real? low level irs workers accused of targeting conservative groups are finally speaking out. one telling congressional
investigators and i quote here, still hear people saying we were low level employee so we were lower than dirt according to people in d.c. so take it for what it is. they were throwing us under the bus. the former irs commissioner on how this is all playing out. the indians are getting restless, it sounds to me like. >> thanks for having me. this is a very serious set of issues, and let me start off by saying how sad i am that this has befallen the service. when i was there i thought people did their best to stay clear of politics and call things don the middle. i don't think the people in cincinnati can say they're clear of any wrongdoing here. what happened in cincinnati was entirely inappropriate. that having been said, there were two other levels of failure. failure at the intermediate level where the tax exempt organization took a full two years to get this right to clean up the bad criteria they were using in that unit in cincinnati, and finally texas very top -- finally, at the very
top of the organization people were asleep at the switch, at best, and so that incorrect testimony was given as we all now know, and it was never corrected and that's inaccusable. so -- inexcusable. so three levels of failure. >> neil: is it possible where you could be an irs agent -- let's say among the 88 targeting the conservative groups -- and not know there was pattern here. let's say your boss said look at group a, b, c, d, and e, and not draw a quick conclusion, wait a minute, these are all groups seeking tax exempt status, but they're also all conservative groups? would any of these folks at that level been able to discern that or were they just, here's my assignment and my files, i'm going to look into these groups my boss told me to look into. >> i think these are well-northern terms, tea party, and words like that. they didn't see words on the other side, key words associated
with liberal groups. i don't buy that. there should have been a sensitivity to this at all levels and my experience with the agency was that people were pretty sensitive to these things. it's -- i think it's akin to racial profiling. that has been banned in police departments, and we all know that is not the right thing to do and that's in essence what happened here. >> neil: so 88 individuals, maybe more, started out going after conservative groups, now indicates they were going after individual donors a well. we don't know how many. all linked by being the conservative mindset. what do you make of this? >> well, two things you're getting after here. first can the report that has been done so far talks below the applications process, and what you're defending into now is the audit stream, when complaints come in about specific organizations, did the service pursue those on a balanced basis, making sure it wasn't just being targeted again at
conservative groups. that remains to be seen. that needs to be thoroughly aired here. i can tell you, we work with businesses across the country, and some people are coming and say i feel i've been audited because i voted for romney. so this all needs to be thoroughly investigated and aired out so that people can be reassured what happened of did not happen. >> neil: mark, will put. if i had a dime for every individual who came to me and said, i've been audited, my friends, there's something going on here. thank you, former irs commissioner. >> neil: we still don't know who is going to lose their job at the irs over this. we do know they're already calling for eric holder's head at the justice department and has nothing to do with this and it ant just republicans who are demanding this. i don't make any decisions about who to hire without going to angie's list first. you'll find reviews on home repair to healthcare
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>> neil: when it comes to stomping on individual privacy richard nixon has nothing on this administration. that's not a republican saying that. during the pentagon papers. it is time to say by eve bye. eric holder, why? >> he signed off on a search warrant against, guess who? fox news reporter and he said the reason i am signing off effectively was because the fox news reporter should be treated as a criminal. now he said later or his department said today they weren't going to prosecute a fox news reporter. it should come as good news to you. but the damage has been done. >> every time you look at me and say that i wonder if you know something i don't. that set a slippery slope as well and set a precedent. >> yes. the theory is the justice
department -- say neil cavuto, you just interview people. but if you try to get secret information that is classified from someone in the defense department, we will say you are a criminal because you caused that guy who is subject to the espionage act to leak. >> the same with the wikileaks guy. >> that is the problem. if he says today he won't go after rosen, someone ought to ask him how about wikileaks ? i have written this book called fighting for the press, dad, da. the chapter is beware of obama. they will use the same theory. the problem hasn't gone away. >> why does that make him -- that is the president on that level in that area worse than president nixon? >> it is a request and you have to add it up. i am a historian and this book
is about 30 years of history. i say if he succeeds where nixon failed and i will tell you why nixon failed in a minute in getting a conspiracy theory hung on assange, that's what nixon tried to do against the new york times in the pentagon case. he tried to say the reporter then, you conspired with elsburg and other people to leak the pentagon papers. he had a grand jury em paneled for 17 months in boston. that jury failed. they gave up on the case. now if obama succeeds in getting an indictment and conviction of assange, i say he will have succeeded where nixon failed. he is therefore worse than nixon. >> do you see this going to constitutional crisis lengths here? >> i think so, but to try to wake up the press, i am
pleased to be here on your show, and this is a real problem is difficult. whether we reached the crisis point or not, i don't know. >> you got a lot of folks attention because it is you saying it. it is happening all over again now. meantime, regular viewers of the show know i summed up the scandals in a few words, bad customer service. i have an update and now even worse customer service. i will explain after this.
>> finally, you know what makes crisis fester? when the people who created them don't care if they fester. when simple service breaks down. the contractor who says he will call you back and doesn't. another who swairs he will never -- swhiers will never over charming you and does. and says he will be there at 2:00 p.m. and calls to say he won't make it by 5:00 p.m. contractors who for all i know might be very good at what they do, but don't make me feel so good, so i don't let them do. one guy who had this incredibly arrogant attitude deemed that a fix i wanted on a job that he did was someone else's fault so it wasn't on him, and it wasn't for free. for me money wasn't the issue. this guy's incredible can't do attitude was. i am not saying such attitude
is common, but is it me or is a good attitude increasingly uncommon? i don't know about you, but i actually stop in my tracks when a salesman calls back to see if i like the car after i bought it. or the contractor returns to check something out because, well, he was worried about it. a lot of the problems we have today are because so few time pride in what they do. from the concierge who don't care what wrong room he shoved you into to the drive-thru worker who knew she screwed up the order before you drove out. to one guy in a hurricane sandy town who gouged customers after the storm and now wonders why he has no customers after the storm. bad service is bad service. bad service has long memories. bad service is contagious. why any of us puts up with it is outrageous. from anyone, anywhere, anytime saying one thing, but doing nothing. the administration that promises transparency explains itself like this. >> we have not seen that
report. prior to that there was no knowledge here at the white house. >> we know he was involved in it at the least. that's the question. was he not telling the truth on that point? he was involved in it. >> involved in what? >> the search warrant. >> you are not involved -- >> or this, the former acting irs commission who dismisses legitimate questions like this. >> why did you say you had notes if you don't think you had notes? >> sir, please. >> please? >> please. >> do you have notes or don't you have notes? >> i don't know. >> wow. could this guy be more condescending? he is not just blowing a congressman off. he is blowing us off. his salary paying customers off. doesn't it set you off? it should. right or left, it is wrong. think about that the next time a government official won't talk. that is like the contractor who won't return your call. the light is blinking, but no one is home.
i'm telling you, this is enough. we should all say enough. it is way pastime we all just go through the roof. hello, everyone. i'm dana along with kimberly, bob and greg gutfeld. it is 5:00 in new york city and bob better not screw this up. h so investigating president obama's political opponent is not the only thing the irs has been up to over the last few years. even though they have taken steps to curb the outrageous behavior they are set to issue a new report tomorrow. it is expected to show $15 million was sent on -- spent on 200 employ econ differences from 2010 to 2012. where did the money go? funding things like video spoofs of star trek and gilligan's island and we have a look at another video fea