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tv   The Willis Report  FOX Business  March 4, 2013 9:00pm-10:00pm EST

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education. >> how can you say that? start your life for $30,000 in debt? >> let me finish my thought. if you don't have an education you go get a good paying jobs. neil: but to be fair to run that the idea everybody has to go to college. the future electricians or plumbers, my plumber has a driver and you both kim like the pope he makes more money than anybody but we don't encourage that kraft it is the white -- wayside but everybody rushed to colleges to much. >> what do they get for their education? now says they make
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$1 million more notice 300,000 but tuition has gone up to a 5% the average graduating student loan debt is 17%. we pay astronomical events -- amounts for the education with it is not what it was. university salaries are up and used salaries are down on 6%. neil: the more we up the a the more they raise the price. >> if you have this many you create a generation only go to college if mom and dad can pay for it. so the wealthy go to college those who may not be wealthy but qualified. >> but now they cannot get car loans or credit cards and their lives are starting with shackles and they cannot move forward. neil: you are all too young but they are not moving out.
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[laughter] that will do it. day number two tomorrow. program. "the willis report" is on the case. >> we need to get cpr started, this is not enough. >> we cannot do cpr. >> anybody there can do cpr.
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this is a human being. is there anybody there that can do that? anay we can help this lady and not let her die? >> not at this time. gerri: a chilling 911 call. outrage going tonight over that call. a nursing home refusing to give cpr to an 87 woman who collapsed in the dining hall because they say that it is against their policy. it all happened here. glenwood gardens retirement home in bakersfield, california. joining me now is a defense attorney along with doctor marc siegel, and a member of the fox news "a-team." doctor marc siegel, tell me, is this commo that an institution like this has a policy of not even responding with the most basic kinds of medical response? >> it is not common. it is outrageous. other facilities apparently
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didn't have this policy. this is their independent policy. there is a nurse that says i'm not allowed to do that. gerri: here is what this facility had to say. in the event of a health emergency from our practice is to immediately call the emergency personnel and 28 until personnel of rights. that is the protocol we follow. does this look like a criminal case, , rachel? >> i don't know if it is it's going to be criminal, but it is something that looks like it could be. it is against public policy. ifomething is against public policy, it is not enforceable. when you heard the lady on the telephone, she had no affect at
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all, she was perfectly perfectly comfortable watching this lady die, she had no qualms whatsoever. she said this is the policy and the 911 operator was incredible and saying that this is a human being. gerri: i totally agree. >> the longer it takes, the less percentage that the person has of surviving. gerri: rebecca you said this would be like like somebody not doing that i'm not going around somebody who is choking because they were afraid of the lawsuit.
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if that is what going on here? is about the threat of lawsuits? >> it sounds like it is. by virtue of the ages of individuals, the could be many medical situations. are they just going to let someone choked to death? what if they cut themselves, are they going to let someone bleed to death? the bottom line is when there is an emergency, you jump in. this nurse, she felt nothing. as a nurse, she is not even a human being. >> there are good samaritan laws in the state of california t protect against that. gerri: what do they say? >> she did not have a do not resuscitate order. therefore this nurse would've been protected had she have intervened. that is what you need to do.
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gerri: you know what it reminds me of? last week we had a story of how medicare is funding even some of the worst nursing homes in the country. even the ones that violate basic protocols or other rules. the federal government continues to send their money. when will be get serious about how the elderly are treated? >> i think we should start getting serious righh now. nursing houses are not a place to warehouse people. people can still have independent lives. this woman had a precious life and any nurse in that situation has to try to save them. gerri: we pay $5.5 billion in those programs. i don't know a single person who is not outraged by this.
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>> they are supposed to submit their standards and they must not have people who will stand and will let people die. >> any defibrillators come and they need people to be held. this is a terrible and shocking situation. >> i think that is an interesting point. gerri: why is it that someone would be prevented from saving someone else's life? >> the same paper said that to people our employees were so
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happy that they work together to save a fellow employee. it raises the chance of survival 75% when proper care is installed. >> can you imagine if they asked the 90-year-old passerby to do cpr instead of a trained nurse? gerri: thank you both for coming on, we will let you know what happs in that case. amazing stuff, and thank you so much for helping out. we really appreciate it. now, we want to know what you think. what a potential lawsuit stop you from saving someone's life? logon to gerri and vote on he screen. there is another story in the news today. president obama second term energy policy is beginning to take shape. the president announcing his nominees for energy secretary. welcome to the show, david, he
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is from the heritage foundation and we always enjoy him on the show. so we have some names for head of the epa, department, department of energy chief. do you think anything is changing when it comes to the president and energy? >> i do not see any changes. due to mccarthy and a chief lieutenant for secretary jackson, unlikely to change anything. she was in charge of the air standards, which dramatically reduced the ability of to be competitive. in the department of energy, i am hoping this guy owns a car so he can understand what the rest of us feel like we pay $4 per gallon to fill this out. and he is in favor of cracking. the department of energy has nothing to do with driving. all of that is regulated by the epa. gerri: so we catch one break in this whole thing and maybe that's why he got the job. i guess this story that i have been paying so much attention to
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is the keystone pipeline. the state department's report. it is not a big thrt to the environment. shouldn't they just go ahead? what are they going to flip the switch and get this thing going? >> this is the fourth generation of the environmental impact statement. all of them said that this report acknowledged, as they poted out that it's not even going to have much of an impact on co2 emissions. because that is going to get to the refineries by train and truck and by pipeline going in a different direction. so it's not that this decision won't have an impact on the co2 emissions. gerri: i guess that is good news. what you expected administration to do at this point? are they stilloing to try to trip it up or push ahead? >> well, there is a 45 day commentary followed by some
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cogitation in the secretary. if i were the keystone people, i would eel like the judges keep saying all the evidence exonerates. you get the feeling that maybe they don't like you. gerri: high-level canadian officials said that they believe that this project will go forward. david, thank you for coming on the show tonight, it's great to have you. want to come this hour. we are just getting started. what you thought you knew about your retirement may be all a lie and it's déjà vu all over again. a subprime loan crisis that is sweeping the nation. weibel exam how student loan debt is becoming a problem [ male announcer ] when you wear dentures you may not know
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gerri: breaking news right now fannie mae and freddie mac coming together. and announcing a new joint company in an effort to win itself off of government support. peter barnes has the very latest. that sounds very ambitious. is it true? >> it is ambitious and it will take a lot of effort. but the administrator of the regulator of fannie and freddie is trying to get sething going. moving the ball down the field here as congress tries to figure out how to wind down and close fannie and freddie, which as you know, have gone about 190 billion-dollar bailout from the taxpayers. everyone eventually wants to close them and get the priva markets back into the mortgage game before the crisis.
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to securitize the lot of these mortgage loans. it is basically fannie and fannie and freddie and fha. sinnott edward dimarco, who is the regulator is trying to get some traction on getting rid of fannie and freddie. gerri: if i understand it, they are coming together over securitization. they have to create a company in the middle that does all of that and that might be privatized. that sounds like a tricky thing to do. to say the least. >> well, it is. wall street firms used to do all of this.
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repeated proposals from the administration and congress to try to get moving on fixing this and getting the private markets back into mortgages and government underwriting. it has been very slow going, very hard to do, a lot of people in the real estate business have been lobbying to keep things as they are because they have been working pretty good. it is another effort to try to get this off of the ground. gerri: he is the one to turn down the president's plan. here he is coming in with a different solution. peter barnes, thank you for joining us tonight, it's always so good to see you, thank you so much. >> thank you. gerri: it is beginning tfeel
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just a little bit like 2007. the year before the great crash. when we were just talking about. this time it's not just about that, but it's uncontrollle student loan debts. students have more debt now than ever before and how increasingly they just can't seem to keep it down. 31%, a third of people paying back student loans. that is up 24% since 2008. that is astonishing. and it wouldn't be possible except for the fact that investors are desperate for higher rates of return. almost exactly like mortgages before the crash. we were just talking about it with peter barnes. these days rates so low, it's difficult to find higher yields.
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the highest yields are found on the riskiest loans. last week sallie mae sold more than a billion dollars rth of securities it was 15 times greater than supply. so where do you think the lenders do when they see that? to create more of that. this is exactly what happened during the housing crisis and an insatiable demand for packaged mortgage debt. ultimately led to booming loans to people who simply could not afford them. subprime loans to people with no income and no jobs. that didn't work out so well in wall street. average debt levels of $27,000. student loan debt totaled $1 trillion and it's only going
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to get higher. that is because this investment will drive more loans to more and more of the central students. it is more important than ever for students to make sure that they won't only take on debt, but they are able to repay. understanding just how much are likely to earn this and thathe students to students and parents make the right choices. coming up later in the show come the white house says the sequesters are hurting americans. and when it comes to planning your retirement, think again. just h much you need to say
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gerri: tried and
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gerri: one of the greatest fears facing retirees. outliving your retirement. ric edelman of edelman fiancial services is joining us now. for those who don't know, this is the withdrawal rate, 4%, from savings or investments that are adjusted for people already in their retirement years. so once you are out of your work life, the first or can take up 4% next year for plus four
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inflation. >> we like the 4% number. we get really number one number to tie her. gerri: okay, when i get tired. a lot of people are saying that it has to be lower. they started with a 45% bond. her chances of making it through 30 years is just 29%. of course, we saw a lot of that when the markets sold off after the great correction and the start of the great recession. do you think that they have it right? >> i think the analysis leaves a lot to be decided. they took an artificially terrible period of time in the 2000. they didn't assume that the individual would make lifestyle changes not all of us have
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children who can have a nest egg or an inheritance. gerri: but some say that you should lower your rates to make up on plus a least 30 years. the 4% rule, some say is too aggressive. people need to dial back, certainly what we have seen in the last few years. a stock market, if you go back to 2000 and 2009, a lot of people got hurt. now we are starting to see experts say that you need to reduce your withdrawal rate. >> well, i think that it is based on an artificial period of time with an artificial portfolio and an allocation of stocks versus bonds. and i don't think the history demonstrates that it will work out exactly that way. the fundamental premise, be careful how much money you withdraw, make sure you don't run out. but to artificially scare people
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into saying it 4% withdrawal rate is necessarily dangerous, i think that is a little bit too declamatory. gerri: what alternative do you give for them to invest? other ways of taking money out or thinking about retirement cash. >> well, it's a really good question. a lot more than just stocks or bonds. there are 16 across the market sectors. gerri: i understand what you're saying. and i appreciate that. but the 4% rule to me, it seems sort of silly. applies to medicine to absolutely everybody.
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>> i can give you cases where the client has to take a percent. they have no choice but to do that. you need to manage the individual case of the client. the rule of thumb rarely what. gerri: i agree with that. we appreciate your time and thank you for coming on the show. moving on,. >> they say bears are being watered down. anheuser-busch says they take no shortcuts or exceptions. despite claims, beer sales are on the rise for the first time in four years. i guess that is good news. who were the victors in the beer wars of 2012? that is tonight's top five, number five is natural ice.
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number four is miller light. number three is budweiser, the king of beers up 2.5%. number two is coors light. sales were up a whopping 6.25%. and the best-selling beer in 2012 was bud light. up nearly 2% from 2011 selling 300 million cases. this could account for a jump in the stock over the past 12 months. up nearly 41.5%. that, my friends, is a good ride. we have more coming out. a new government crackdown, this one by the irs, we will have the bottom line and the administration says the sequestration is a party being
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>> from our fox business studios, here again is gerri willis. gerri: janet napolitano giving travelers advice on the first weekend since the sequestered. listen to this, if you're traveling, get to the airport earlier than you otherwise would. there is only so much we can do and please don't yell at the tsa officers. they are not responsible for those things with more on this, gretchen hamel.
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what do you make on this? >> let's give it time, let's give the sequester a lot of time gerri: everything is operating normally as of now. no impact in the sequestration. gretchen, i think that we were sold a bill of goods here. >> i think so too. "the washington post" called out some of the demonstrations claims it wasn't backed up by a lot of docs, but we are seeing some real life examples. this is not as bad as what people think.
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>> last week the education secretary arnie duncan said teachers were going to be fired. then they had to walk us back and say that today, language is important. no kidding, because if you don't make it right, it won't work. here is another part of the president's cabinet who is being tested for veracity. >> we have shown over the past decade of the department of education hasn't done much to increase test scores. not to mention future funding. it's a local problem, and teachers aren't getting this happening the way that they said it would. i would like to point out quickly -- i was at lax and it
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went a lot faster than usual. so i think the tsa really had thousands standing around. gerri: going to foreign aid in egypt, we are now gving more money to egypt. the latest request, $250 million undoubtably we had $16 trillion in debt. would he make of this? >> it's unbelievable and mind blowing to think that we would be handing out $250 million when we had dickstein trillion dollars.
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we are not even sure that these guys are friends. gerri: everyone thinks that their priority is not ours. should we be pulling this money? >> this is why we have sequestered. we were unable to establish what our priorities were. making those cuts and this is another example. washington is always going to find another dollar to spend. we need to make these cuts go into affect. gerri: dennis rodman goes to north korea. i can't even begin to express
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what this was like. >> he said, if you can, dennis, i don't want to do war. that's what president obama said. gerri: the mmn he is describing is kim jong-un. why are we covering this why is the media examining this and weighing this and thinking about what the impact might be? >> i watched aninterview today that was quite alarming. the dennis rodman got closer to the dictator of north korea than any cia operative and i'm going to go with the silver lining. maybe it can help a little, but that dennis rodman should not be trusted with on policy. >> i'm glad that the dictators of north korea like basketball. i'm glad that something we can have in mmon. i love basketball as well, but i'm not a fan of human rights
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violations and dictators. gerri: what about the nuclear powers? [talking over each other] [talking over each other] gerri: thank you for coming on tonight, great stuff. we appreciate your time tonight. >> thank you. >> thank you. gerri: racking up points at your favorite hotels? they may not last that long. and companies dodging taxes by mislabeling. we will have details on this very good story coming up next [ male announcer ] how can poer conmption in china,
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hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. gerri: a new government crackdown on business is now underway at the irs and the department of labor. a wide range of companies could be at risk of big tax bills. liz macdonald joins me now with a scoop. >> we are going to give you information we can really use. basically the government is saying that workers are independent contractors, meaning that they are not on the books, not on the government's mindset. paying payroll taxes, they have
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to protect workers and the president has already present his budget. $7 billion protecting the budget. >> 7 billion out of companies. what the government is saying is that 3.4 million workers in this process, 30% are misclassified, independent contractors, and i will tell you that any company can get really tripped up by crippling paperwork and penalties. now we have 13 sttes sharing information with the irs. you're going to see california, washington, montana and minnesota.
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this is the labor department saying that you have to share and we want you to share information with the irs, with the federal government. >> we don't know if they are pushing back back back at all. humility can push back that there would have lobbyist to in washington. but we are not seeing that happ right now. the penalties are crpling 100% of the sales tax is due, that's what the what the business owner would have to pay and that is a whopping penalty. but it is a big deal. it is a developing story that is a way to raise money. gerri: all right, liz macdonald. gerri: lives, thank you so much for coming on the show. phil to come, my "two cents more".
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what to expect when you travel coming up next. stay with us.
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gerri: attenti travelers come in the next time you stay at a big-name hotel, it will cost you if you are a frequent traveler. mark murphy joins me now.
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>> you need more points to get a stay at a hotel. therefore you have to stay more and spend more to get your free night. so the making you work harder, they are getting revenue as a result of that. gerri: hilton doubletree is saying that they will equire 3000 more in rewards spending. thank you very much. >> that's right, i look at this as frequent travelers. gerri: you tried to system and you try to get everything you can out of it. first it was the airlines, now it is hotels.
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are they in such dire financial straits that they just can't make it? >> the business is coming back. >> they have all of these point out there. 36% of the hotels that they have are in terms of this category, which means it cost you more to stay there for free. you have to earn more points, it's al about earning more. gerri: earning more for free. okay, you are a frequent traveler.
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okay, let's talk about starwood. >> yes, they have one of the best programs around. they are increasing at 25% on average. again, you can pay a little bit and upgrades as well as total stays. gerri: so they need to rack up a thousand more points.
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gerri: a user rewards program to the best of my ability. so what do i do now? >> you have to travel with the rewards. just like it is cheaper to travel and pay the dollars come it is cheaper to use the points. they are not going to sell some of the room nights. it doesn't hurt the venue and the bottom line. a couple of other things, i just stayed at a london hotel, 100-dollar food and beverage credit. i got an upgrade. it was wonderful. [talking over each other] [talking over each other] i had access to a special hotel program that i was a part of. gerri: so you say start using travel vouchers and? >> absolutely. fifty to 70%. 60% of alinternational airline tickets as well, and a great
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service provider to give you a high touch in the market. gerri: i missed the shopping online. so we have the airlines come in the hotels and others trying to get more money out of me. >> spends the money on vacations this year. take cruise. gerri: a cruise after that fiasco? >> absolutely. they are a great vacation experience. >> it is worth thinking about. thank you for having me. gerri: in business history, the song happy birthday was published in 1924 on the stay in business. it has been translated to more
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than 140 differentlanguages. in 1998, the guinness book guiness book of world records named it the most recognized song in english language. time warner also brought in $2 million annually for films and tv shows and advertisements. including a famous rendition of mr. president, march 4 is the date of the anniversary. we'll be right back with our answer to the question of the day. would a lawsuit keep you from saving someone's life? with the spark miles card from capital one,
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bjorn earns unlimited rewas for his small business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in yo wallet? [ crows ] now where's the snooze button? gerri: as we told you at the top of the show, a retirement home in california is defending one of the nurses who refused


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