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tv   MONEY With Melissa Francis  FOX Business  August 1, 2013 12:00am-1:01am EDT

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let detroit go, i'm telling you it will t happen. it will be some sort of a rescue that yo will never melissa: i'm melissa francis and here's what's "money" tonight. the wage gap between ceo's and average workers is huge but should companies have to disclose just how wide it is? it is all about the power o money and steve forbes is here to weigh in. plus san diego's mayor is sued by his own city. the sexual harrassment allegations are growing practically by the hour but can the city actually force him to pay his own legal bills? wait until you hear this one. "who made money today?" they just got one of the world's most controversial billionaires in their corner. stay with us and find out who it is. even when they say it's not it is always about money.
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melissa: all right, let's start tonight with pure moneyike how much ceos of public companies are making and the drastic difference between that number and what their employees are making. all with this question in mind. is ieven relevant? should it really matter that someone running a huge company who's respoible for every aspect of how that company is ru and profit it can generate for shareholders is probably making many, many, many times what the average employees are making. you can't compare the jobs so why compare the salaries? that is the heart of a battle brewing at thes. ec, whether or not public companies should be force toddies close that ratio. today's panel on the power of money is steve forbes, chairman of forbes media. we also have james freeman of "the wall street journal" we have jonathan hoenig, hedge fund manager and fox news contributor. steve, let me ask you, who does this help? >> it helps nobody except the
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agitators, activist, shareholder activists who want to control executive pay. and the idea that you can get a good ceo at a pittance of what you get now is preposterous. they feel these comparisons will shame, give them more power over controlling the executive suite. melissa: yeah. >> it's a power play and at the end of the day i would love to have these people find real talent at a bargain price. it just ain't out there. melissa: this came up again and again and again in ref ton to the fight that has been going on this week as you see workers ad mcdonald es and wendy's and taco bell walk out. they say the average worker, not even average, minimum wage worker, entry level worker at mcdonald's and these other places are making $7.25 an hour. he same time the ceo of mcdonald's, donald thompson, in 2012, his total compensation was 13.57 million. many tweeted this back to me on
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the day we were having the debate. ishat comparison relevant? what do you think, james? >> well i think it ought to e clear if you force mcdonald's to pay 15 buck an hour to everyone in there, what you will see very quickly a lot more automation, a lot fewer jobs. it's not really relevant. most of all it has nothing to do with the financial crisis which is how this got bundled into the do-frank law. the sec is ignoring lots of critical reforms and unfortunately now pursuing this kind of umteenth look at ceo pay. when i was at the sec it was one of the earli rounds. this is a very heavily-disclosed area. you see in our paper and others the amount people make. it is very transparent a you can make your own judgments. melissa: jonathan -- >> melissa, the guy who is the ceo of mcdonald's or wal-mart or apple, they make a lot more than person flipping burgers or stocking the shelves because they're worth a lot more than personlipping burgers or
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stocking shelves. government should have zero role in determining influencing, demanding any type of ceo compensation. these e private companies. people are not forced to invest in them or support them. if they are investors, complain at annual meeting. persuade the other investors try to get on the board or simply sell their shares. if you're un happy with the ceo epcompensation, vote with your shares. melissa:s consumer you vote with your dollars and don't shop there. >> right. melissa: no matter what the company is or ratio is it is still eye-popping. i don't know whether it is more relevant whether it is 10 times or 100 times or a thousand times or 10,000 times. a lot of people e-mled me and costco respects worker more. average houy worker makes $20. different job than flipping burgers, but entry level job. ceo makes $5 million. do you feel better about that? it is a staggering difference,
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right? >> in terms of skills, you look for example, the world of sports, look at baseball. how much does a baseball star get vis-a-vis the person selling hotdogs in stadium stand? probably 10,000 times as much but the relevance is, what kind of talent do you have, what is demand for that kind of talent. mcdonald's in theast 12 years, thompson's predecessors done a fans fantastic job turn turning around a company in trouble, in decline into a dynamic growth company and the envy of the industry. it is a fantastic performance. to get that from a mere 13 or 14 mlion, that's a bargain for multimillion-dollar company. melissa: seems like a bargain. one of the metrics, maybe if we're coming up with numbers to make the discussion relevant, look at increase in wages ofeo versus the average employee. we looked at one research firm that didthat for public companies in 2013 as a part of the budget in salary. the executive group saw their salaries go up by 2.9%.
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non-union hourly wkers, saw their compensation go up by 2.7%. is that a even relevant, james? >> you're doing the question, what is the problem we're trying to solve here? is it at the ceo makes too much or line workers make too little? melissa: disparity. it is disparity. they're saying ceos are hoarding all the profits for themselves and not sharing with workers right? that is what our audience told us. that is what the ceo is saying. ceo's hoarding money and not sharg. what do you say to that. >> from the customer end, talking about mcdonald's compelling value menu for people on budget. melissa: right. >> obviously the system is working to providing food to a hungry world at a low price. if the question is that the workers have to make more, that means all the customers in line are going to pay more. if you're saying ceo has to make less, you look in private equity, very hard headed people, not mom-and-pop investors getting taken advantage of, they tend to pay the same amount and they will take talent away from
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public companies. melissa: jonathan, go ahead. >> melissa, if viewers think disparity between people who flip burgers and people who lead companies is too wide i think our viewers are sadly mistaken. good ceos, as steve points out, are really hard to come by. what make as company like costco thrive or company like jcpenney or kmart fail is the leadership. and makes thee think of years ago, steve jobs asked for a gulf stream from the apple board. you know what? they gave it to him. it was probably one of the best investments they ever made. apple went on to become -- >> bottom line, melissa -- melissa: go ahead. >> in terms of ceo pay to a lost these guys come into companies that are in trouble. so they're going to look like they're doing we but they're putting their reputations on the line. they have a big turnaround job and the real crisis for this economy is not ceo pay, it's the fact we're not creating good jobs. melissa: right. >> that land right at the desk of the u.s. government and their taxes, regulations dollar policy. not to mention obamacare and the cost that's imposing on
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companies. melissa: speaking of the governme, steve, what does it tell you about mary jo white, he of sec thathis isne of the first things she is talking about. >> she is under pressure from senators to do something splashy to show she is not in the pockets big business to please a certain constituency of party that put her in that post. we see where that is coming from. she will say dodd-frank made me do it. but the bottom line this whole thing irrelevancy to the real crisis of our economy. we're not growing way we should. first time since world war ii we've had this long of a stagnation after a supposed recovery. melissa: panel fantastic. thank you so much to all of you. >> thank you. melissa: here is o "money" question of the day, should companies be forced to disclose ceo pay and is it relevant? we want to hear from more of twitter at melissaafrancis. next on "money," as the expression goes yo can make at that statistics say anything you want and tod's gdp repor can
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not make the point any clearer. how the government is using some very fuzzy math. inendomain usually forces people out of their homes but one city's controversial plan uses it to save homeowners from foreclosure. will it spark a ne trend? one of the biggest backers joins us with details coming up. ♪
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♪ melissa: not far from expected but still not great. while that number beat estimates first quarter growth was revised down again to a measly 1.1%. commerce department has actually made changes. you may not know this, to how it calculates gdp much the u.s. economy is actually $500 billion larger under this new way of doing the math. is it just a little bit fuzzy? joining me steve moore of "the wall street journal" and john cannally of lpl financial. welcome both of you. steve moore, let me start with you. i don't know about this new way of calculating gdp i understand that they are trying to capture things like, intellectual
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property and research and development but, drilling down into the details, one of the details was making judgments about shows and entertainment and trying to calculate the future value in production. not even trying to calculate but counting the future valuef production tt it may two into rens and syndication. if the bean counters in washinon know that a show is going to be so popular that it will be sold into syndication, they should be consultants in hollywood, shouldn't they? >> yeah. this is cclled the seinfeld factor. melissa: right. >> it is a bigart of this. let me start with the big picture. this is a long overdue refinement of the way we measure the gds and services a output we produce as americans. you know, melissa, what has changed in the american economy over the last 25 years we are an information age, innovation, create tivity economy and it's very difficult to measurehose things in the kind of standardized ways but we know
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that's what adds value to the american economy. melissa: so you like ts? you're in favor of this change? >> very much so. i think it should have been done a very long ti ago. the fact that we're $500 billion richer than we thoug we were is a big deal. we talk a lot about china catching the united states. guess what. we found out they're $500 billion further from us than we thought. melissa: but, john, not every show goes into syndication. a lost shows get started and fall right off the radar. so counting that possibility doesn't seem fair. another one that bugged me was interest on unfunded penons being counted. is there really interest if the pension is unfund and city like detroit will not get paid out? why then did the personal savings rate go up 5.6% in 2012 from 4.1% counting in interest on unfunded pensions? that doesn't seem fair? >> that seems a little bit off but i do agree with steve that this is been long overdue. i mean, one of the things we do
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best in this country is export good ol' american know h and that would show up in the export data but it never showed up in gdp. so things like selling the rights to the super bowl didn't really show up in gdp but it showed up in exports andhe place ere we're growing the jobs the fastest is in the places that we export the best. so we export the best in the seservice side, within the serve side where we export the best is in this r&d and intellectual property. at that is where we're growing jobs. so i think actually this revision kind of trues up what we know about the economy with how we're reporting the economy. melissa: well, steve, even with the juicing we only got to 1.7%, which is still not going to create the jobs that we need. we still saw consumer spending rose by 1.8%. that's a slower pace than in the last quart earth. it was 2.3% in the last quarter. so the consumer is getting nervous as well and isn't
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opening up their poccetbook. right? thoughts on tha >> my thoughts are this has been, you know, a real bump in the road. i don't know if it is just a bump in the road or we crashed into a wall but you know if you look at the last three quarters, melissa, the growth rate has been 1%. that's pathetic. that is treading water at best. i'm oimistic that the second half o2013 will be better -- melissa: are you still? >> i am. melissa: h much better? how much better? >> i think we can achieve 3% growth in the second half of the year. look, the energy sector is doing well. the farm sector is doing well. government spending is falling. that's a positive for the economy but the point is, that over the four 1/2 years that president obama s been in the ite house, and it has been now, just over four years we've been in this recovery, younow, the growth rate has been about two% and that is half of what we should have. that means, by the way, just to round this out, that mea the gdp that we have today is about
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$1.3 trillion lower than it would bef we had had just an average recovery. melia: yeah. john, real quick, what is your bet for the second half of the year in terms of gdp growth? >> i mean i see, we still see for the whole year about a 2% growth rate. i think the key is what the fed thinks. today we heard from the fed they think there is a pickup of economy in the second half of the year. if we get that pickup the fed is likely to taper the quantitative easing. if we don't get the pickup, because the fed's forecast is above consensus, unless we get the pickup the fed will not taper until maybe next year. right now they are on pace to kind of taper but it will be a close call. melissa: gentlemen, thanks. >> thank you, melissa. >> thank you. melissa: coming u on "mo" eminent dough main is normally used t force someone out of their use but a revolutionary new plan could be used to keep foreclosure right at home. why cities across the country have their eyes on one california town. plus are the days of big
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solar projects dead? why experts say the lights could be going out for good. stay right where you are. do you ever have too much money? ♪
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>> ♪ melissa: whether it's on wall street or main street here is who made money today. anyone who owns herbalife. why havene billionaire on your side when you can have two? george soros has taken a large long position in the nutrition supplement company. he joins carl icahn as the second high-profile billionaire to back herbalife. word of soros's investment sent the stock leaping more than 9%. somewhere bill ackman is weeping i'm sure. meanwhile losing money today, investors in jc penny. cit, a major commercial lender stopped backing deliveries from small manufacture to jcpenney stores. that isrd coulding to "the
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new york post." after meeting with executives yesterday, cit reportedly got nervous about jcpenney's finances. that report hammering jcpenney's stock by more than 10% in the final minutes of trading today. hoping to win a record amount of money? tennislayers at this year's u.s. open. this year's singles champion will take home 2.$6 million. that is an increase of 37% compared to last year. like they need it. maybe i'll win. who knows. now to a radical idea comg out of california. the power of eminent domain is not typically neighborly to most homeowners but one city is working to change that, richmond, california. they hope to use the seizure power to save foreclosed homes. it has not been done before. with me one of the biggest proponents of this plan, cornell university law profeor robert hackett. welcome to the show. one of the biggest complaints out of the gate it is not constitutional. how is this constitutional?
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>> hi, melissa. yeah, it is entirely constitutional in fact. the eminent domain o authority applies to all forms of property, tangible and intangible. people tend to think it only appls to tangible because tangible property is always more conspicuous, right? you see it when a kentucky friday chicken is torn down in order to make room for a road or something like that, so you notice that, right? intangible properties le financial instruments, loansnd the like ae not conspicuous so we don't tend to see it but the are taken but those are always subject to eminent domain authority as long as there has been eminent domain authority. to pass constitutional muster you have to have public purpose and pay fair value on other hand. here that is easy to establish. melissa: i don't know about that beuse it is a scheme for the citynd for this one group, the mortgage resolution partners, to make money at the expense of the banks and not that i feel sorry for the banks but whyould they ever lend again? for example, if you take a mortgage, that was originally worth 00,000, say now its
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worth $200,000, they're growing to -- going to pay, something like, $260,000. that is not fair market value. it is below it to the bank. the bank has now lost $240,000. they then sell it to every core for 180 or i'm sorry, mortgage resolution partners, run in part by every core. so the city made a profit of $120,000. now mortgage resolution partners they get a mortgage. i don't know why there is not competition. they're getting a sweet deal and homeowner is forgiven the debt. bank gets hosed. everyone else profits. why would the bank ever make a loan again. >> if that were e story i would agree with you. that is not actually what happens. essentially what happens -- melissa: where did i go wrong? >> well, in multiple places. first of all we're not really talking about banks here, right? let me tell what you the idea behind the plan is. anytime you've got a really way underwater loan it is subject to immense default risk, right?
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that means the loanh a lot less because it might default and foreclosure costs are high. for that reason banks typically write down loans. they tend to work out arrangements with current homeowners and debtors and work out some kind aftereduced principle on the loan. melissa: that is not happening. >> no, no. that is happening, melissa. that's the point, it happens with banks, with scalled portfolio loans. where it doesn't happe with securitized loans. so the $64,000 question five, six years ago why does it not happen with securitized the way it happens with bank loans? turns out there is very simple reason. the securitized loans suffer all the structural impediments to writedowns bause they're alternately owned by bondholrs scattered all l over the world d can't find one another to work out. melissa: wherere the numbers wrong? you're not giving my claire trifrom 40 to 200. this was pulled from the state from the math on "wall street journal" they talked about how this would work.
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where is the math wrong. >> it i not so much the math is goes wrong as characterization of the numbers. actual value or expected value of the loan has to be distinguished from the face value. melissa: that is how it wen from 400 to 200. >> hold on, melissa if you would. expected value, i'm sorry face value discouped by default risk and forecsure costs right? when you discount by that amount, right, the actual value ends up being a lot lower than the face value. that is precisely why banks always write these things down when they get underwater. melissa: why would the city get involved if that was really e value of loan, then the bank or whoever owns it in the first place, the original mortgage holder would sell i on the open market because there is a market -- >> no, that is the point. that is exactly the point. hold on, melissa. melissa: where you interrupt the free market you. >> can't actually sell the loans out of t securitization trust. that is exactly the point. where there is a market for them they are written down but there is no mket. there is market rigidity talking about loans in private label
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securitization trusts. so the sole purpose of use of eminent domain authority here to get past that particular -- melissa: beyond that, if i did accept that suggestion which i don't, if i did, why wou you why would you give this mortgage resolution partners which, by the way is run by this guy, who has raised money for democratic think tanks and liberal think tanks and has been a obama fund-raiser, why does he get a monopoly on buying these mortgages as opposed to putting it out there on the free market? lot of people would be >> two things about that, melissa. first point there iso monopoly. i'm advising other firms and non-profits that are doing this as well or planning to do this as well. there will be healthy competition. secondly mortgage resolution partners just charge as fee and it is hamp fee. it's a flat fee. people are mischaracterizing mrp as some kind after hedge fund. they're simply organization offer as service and charges a fee like everybody else does. it is a flatfy.
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it is hamp fee. there are two mischaracterizations mrp in terms of its fee structure and mischaracterization of it as a monopoly. definitely it is not a know mopely. firms are coming on line to do this. melissa: real see. there they are only ones discussed and invited into this process. hopefully you're right others will get involved. there is no evidence of that so far. >> it will come. i problem is. i happy to come on when that happens. melissa: we'll watch. thanks for coming on. >> thank you, melissa. melissa: switching to the slumping solar industries in some cities, that's right, your tax dollars are paying for rooftop panels on homes which has utility companies outraged. here to tell us why is fox news's william la jeunesse. william? >> melissa when the solar industry was small the supporters justified these subsidiesaying they were necessary to jump-start an up start industry. now with panel pris down 90% and thousands of these things being installed every week in
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homes around the country they argue that these subsidies, or rather that rooftop solar is now a legitimate competitor and threat. >> w produce the power exactly where it needed and we produce it and we sell it for, example in parts of california at a fixed-rate. >> reporter: so from hawi to arizona, utility companies are pushing back. they are arguing that she is solar subsidies are too generous and expensiveor rate-payers who can't afford systems of their own. >> we can not sustain this rate of expenditure for one particular sector. it is about time they get off the training wheels and run on their own. >> so the department of, l.a. department of water and power manages america's largest rooftop solar program, but, they limit number of megawatts they will buy and reducing the price they pay each year. >> we buy all the power that's
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generatefrom these facilities. anytime you see the sun out, we are getting energy from these systems. >> so o points, melissa. number one, rooftop solar is no longer dismissed in favor of those large-scale plants out in the desert. nine of which have been canceled. second utilities say hey, listen if everyone abandons the gri who will be left to pay for it? that can't happen because right now as you know renewables can't stand alone. they need backup generatn. back to you. melissa: william, thank you so much for your report. for today's fuel gauge. first energy leases for outer continental shelf. nine miles off the coast of rhode island and massachusetts. the energy didn't says they could sustain enough lech to power more than a million homes. we'll see. oilutures rallied nearly 2%, driven by better than expected u.s. economic data. more the month oil gains close to 9%.
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that is the biggest monthly percentage increase since last august. financial noose growing tighter around iran. its four biggest oil clients slashed imports by 22% so far this year. that is according to reuters. china, india, japan and south korea all faced mounting pressure to do so in the wake of u.s.-led sanctions. next on "money," things are not going well when the city you're mayor of sues you. new ausations of sexual misconduct piling on for san diego's mayobut can the city reall force him to pay his own legal bills? you would think so, wouldn't you? facebook firing a direct shot at the tv industry. a brand new way to bring in billions just as it is on the brink of breaking its ppo price. we'll tell you all about it. coming up.
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toxic chemicals and carcinogens
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are leaching into thenvironment. it's happening right where we live, work and play. cigarette butts are toxic waste. let's stop the toxic litter. learn more at ♪ melissa: no matter what time it is to my "money" is always on the room -- move. shares taking a nice job. beating expectations since second quarter earnings. also raising its forecast for the year. strong growth in its average monthly visitors. improving revenue from local business advertisements. okay. have you evereard of a city suing its own mayor? that is what is happening in wacky san diego. and, of course, it is all about "money." mayor bill dollar has been
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making national headlines for his alleged sexual harassment of staffers, even being slapped with a lawsuit by one of them. the city wants to make sure that it and the taxpayers don't give stuck with the bill for a potential damages and attorneys' fees in these making sure that the money would come from the mayor's pocke an attorney for san diego and a gop strategist for california. welcome to both of you. >> thank you. melissa: break this down for me. what is the cittrying to protect itself against? are they likely to be successful? >> well, at the end of the day when iant to say is that these allegations are true, what this woman coming forward, this is scandalous, shameful and sful conduct. and essentially what the city is saying is that they file a lawsuit claiming equitable and in many which basically means, listen. we are not liable. if we are found liable in after they damages the mayor has to pay for the damages because you
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were the one who caused all these problems. essentially what they're saying is that they don't want to defend the mayor and are saying your conduct was egregious. why should the taxpayers have to pay for this for your perverted choices. melissa: it's shocking to me that they have to take this stand. it seems like he should ve to pay for his own defense and should be the one who pays for these damages because he is the one who is accused of the conduct. >> his lawyer had the audacity task for the city to pay for his expenses, basically they claim that the city never gave him sexual harassment training. in ft, the contention is that in the 20 years he served congress that he never got sexual harassment training their either. so amazing abo all of this in the ironic thingis that everybody from washington d.c. to san diegoas known about this guy's behavior, been as cereal pervert, a jerk for years, and get a prop him up for mayor. they contribut to his campaign. they worked on his behalf to get him elected and now they're all
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shocked at this kind of behavior . >> when i was going to say, what they are finding is he isti standing firm in saying i will be the mayor. i am not stepping down or resigning. think that is part of the reason why over 60 percent of san diego's on amount. they just want him out a one recall. melissa: it is a serious issue that taxpayers could be liable for this behavior. yo know, it is insult to injury on top of everything else. would there be a lesson to taxpays around the country down the road when we're thinking about, i don't know, electing people like anthony wiener may do things while they're in office and then the taxpayer would be liable for his behavior if he continued past behavior when he gets into office? >> you have elias' that's a who is also running for office. in fact, between the two they form a little perch cub.
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it is crazy. but you're right. it is a lesson for the taxpayer because the relationship between the citizen and their elect officials should be built on trust and respect. unfortunately these guys have neither. and even worse than san diego, there is no recourse. if the mayor decided is not want to step down they can bring an ethics complaint or try to impeach him. as far as i understand it there is just no way short of recall that they can get this guy out of office. melissa: and not sure the city will be successful. is was the first question that last one as originally came out. this was a corporation, the corporation would be worried about its liability in also be insured against its liability for its ceos behavior. so is this city not insured against liability for a lawsuit or for a mare's behavior? and do you think that they will be successful not being liable? the corporation would be. >> you raise an excellent point. i firmly believe that the city is going to be held responsible in terms of defending him because if you think about it,
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historically speaking the cit has alrey spent about $10 million paying for past city officials to have either been embroiled in scandals involving campaign for other types of scandals, controversial situations. believe that it will be very difficult for the city to say that he was not acting within the scope his employment during these allegations. as much as i don't want the taxpayers, inclung myself, to have to pay, it's going toe a difficult battle for the city to overcome. >> last time they said the city is selfish toward which means that they're on the hook for what a corporation would have, insurance to indemnify them is. we have to go. melissa: thank you. next on "money," a stake at the heart of the television industry while war is brewi over billions in advertising bucks. at the end of the day it's all about "money." ♪
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♪ melissa: the day we have all been waiting for has finally arrived. facebook stockinally passed its ipo price for the first time. pulled back a littleit at the close and closed just below that
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$38 benchmark. could it be the beginning of the epic comeback? to top it all of their rolling out a plan to bring a lot more ad revenue wind. reportedly going to start renting video ads on your knees feet. these ads could sell for as much as two and a half million dollars a day. our resident facebook aficiodo, dennis kneale, here with more. don't call it a comeback. i could your the screaming. you have been here for years >> interested what they could do and what it could mean for the telesion industry because the tv industr, $75 billion per year of tv ads in the u.s. basilly aimed at selling cars. being out and add to an audience, never mind that only ,000 of them are shopping for cars. thin what facebook could do when they could send your car and know from your facebook post if you're shopping for cars. it's a powerful model. the numbers, facebook has 1 billion members now. and 600 million daily users.
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and then in the u.s. and prime-time 8:00 p.m. to 11:00 p.m. up to 100 million facebook users are on the facebook site in prime-time when tv was to be showing -- melissa: let me ask you a couple of questions. when an ad pops up, do you wanted? >> you will watch it if it is targeted to you because it knows where you want to see. we watch ads. if y are shopping in d.c. and add to my electorate that. melissa: a go to the website and go through aook at what i really want on it. >> they will have to scratch the entire plan. melissa: come on. come on. i want to talk to you. >> that hundred million visitors , that compares wit-- i just got this number, 102 million americans watched prime-time. of tv channels combined. t 100 million are going to facebook. tv gets 43 percent of our time in 42 percent of our a budget and spending in the u.s. mobil is 10 percent of our time
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and only 1 percent of our and spding. facebook is out to change that. i think it is a pretty extraordinary plan. i wonder what users will say about those ads. they squawk when they start putting up little tiny display ads. so terrible. but eventually we forget. people go there. i just wonder what they will say also, am i going to be about to give my permission for you guys to p tv ads in to my knees feet? i have been paying facebookuys all day and none is answering. melissa: they don't care. >> it has to be true. melissa: one of the biggest problems has been fatigue. ople who did for a while and it was novel and then they get sick of it. as in the idea of putting ads in your face increase that? >> it does if people are leaving television to a escape from all of those ads. but targeting ads that are better is an answer to that. i don't know. it is kind of a clutter problem and it will get even more so. melissa: spend a lot of time on
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facebook. >> almost none. i let anybody wants to be a friend. a whole bunch of strangers was to have going on. melissa: more time. >> i like twitter better. lissa: all right. thank you so much. you are a good sport. up next on "money," howar would you go to avoid paying baggage fees? one passenger hits and new extreme all tovoid shelling out. at thousand dollars for extra bags. love this story. we have it all on "spare change." you can never have too much "money." ♪
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melissa: it isime for a little fun with "spare change". today we are joinedy the fabulous zillow. good to see above. okay. i love this story. a guy walks into an airport with seven bags. that's a joke in and of itself. all right. four of the bags because the fees for the extra luggage $81,400. i mean, have you ever? we all know airlines nickel and dime passengers for baggage is. had to know that this was going to be pricey. also, you show up and what he just -- so many questio about the story. >> i was going to say, your shoes. maybe he doesn't care. i could not leave for bags behind. would be walking aroun naked. melissa: well was in the other three bags? >> toiletries. >> the only thing that was ever,
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check luggage when we travel. airlines made three and half billion dollars last year off and check back fees. you know, you can't be brainless and think they aren't going to charge you. teeseven willing to bet that there we heavy. they tack on additional visas to weigh mo than 50 pounds. >> even more reason to abandon the banks. some other things in there. melissa: brakes. he had to have something very filling in their if it weighed that much and he was willing to abandon it. >> there were freetown. melissa: it weighed 4 billion pounds. it was a bomb. data now. speaking of airlines and money, have you ever ride a fellow passenger toet a difference he? me to sit near your kids are even get the coveted i'll spot. apparently see swapping is becoming an epidemic as flights are more crowdedhan ever. >> i will give you a drink, whenever you need.
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>> did you a drink, yo amateur. on the 737 or 757, when is the seat in front of you that's a hundred bucks. >> that have not done. >> on a fght to l.a.s $20 an hour, worth every penny. melissa: tell me how that goes. >> excuse me. i'm taller than you. and as such i would kill for that leg room. can i give you 20 bucks for it. maybe a hundred bucks. a hundred bucks. you know, i know my sitting in the back of the box. i'm a tall guy. melissa: has anyone ever been insulted? >> no. there is tells me, but other than that. >> i don't think i would give up my i'll see for a hundred bucks. no way. i still wouldn't give it up. melissa: their someone u.s. at the one that trades like to sit next to my own six year-old child.
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they wouldn't budge. he's not going to be super cooperative. sure enough i was talking to him over the seat and he wasn't super corporate during the flight. now on to a pop-up inflatable hotel room. it sounds odd. well, i don't know. it does not sound as cool as knowing that is $50,000 for one weekend night for a limited time in denver this five by seven see-through room can be yours. this is so random. dance party for 100 people at a nearby hotel. don't worry. all of your basic necessities are included. chemical toits, shower, sink, inflatable couch, curtains. it see through. and on all about that. the whole -- some any questions. >> if you get this from someone
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is to sneak in, queue up and go, you have to much money. melissa: would you offer them a hundred bucks to get out? add mlb read on worried. >> i look at things like this and i'm just like, really? >> that's it. use the toilet if the shower is see-through. >> i always -- if someone is looking in and seize me naked,. >> he stays in the standard. there you go. now he knows. social media really is for any and everyone. melissa: case in point, that tyrannical syrian president, wage chemical warfare on his own people. now he's on histogram. how progressive. posting pictures to see his compassion for the syrian people . comforting the sick, beating the hell the, shaking hands with starstruck citens. would you follow him?
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>> i wouldn't. has to be true. everything on the internet is true. it has to be true >> hundred dollars. >> he's not the first one to do th. the leader of iran. it is an attempt at looking cool. it's hard to look cool. a hundred thoand of my own people. >> reporting of these thieves. on more. yummy money updat the craze is now going global. the delicious hybrid the maid was phenomenon, being knocked philippines and south korea. they may call it something different like in certain parts of south korea it is called the new york by gun at. >> dougie via new york by. melissa: over in the philippines they keep it prey straight forward. calling it the donut croissant. not as fun. but we know the truth. are you surpred? there were trying to copyrighted.
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>> i would buy it and love it, i'm sure. meliss i love it. that's all the "money" we have. you will see you back here tomorrow. here comes the following is a paid advertisement for starvista entertainment d me life's music collection. ♪ chances are 'cause i wear a silly grin ♪ there are artists we'll always remember... ♪ mona lisa, mona lisa ♪ men have named you there are beautiful songs, words and memoeshat will always touch our hearts... ♪ it's impossible ♪ to tell the sun to leave the sky ♪ ♪ it's just impossible this is the music of your life. ♪ she worblue velvet


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