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tv   The Willis Report  FOX Business  August 1, 2014 5:00pm-6:01pm EDT

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chris hahn is doing it, greta as well. which ones do you do. >> i'm doing the bicycle. >> the bicycle? >> we're a relay. >> have a wonderful weekend everybody. "the willis report" is next.. gerri: hello, everybody. gerri: hello, everyone, i am gerri willis and welcome to "the willis report." coming up on the show, the victim's compensation fund opens today. also, going from being a musician to a major modeling agency in tonight's installment of our new segment meet the box. and consumer groups up in arms over proposed changes to airline fares. "the willis report" starts right now and we begin tonight with the deadly story surrounding this seemingly simple device and i'm holding in my hand. this is one of the faulty
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general motors vehicle. this badly designed combination of metal and plastic has ruined so many lives now. the process of putting a dollar value on a human life begins. today is the first day victims of families can submit applications for payment. joining me now kenneth feinberg, running the gm victims compensation fund. today is your first day accepting claims. plaintiffs' attorneys expect several claims to be made today. how many claims will you get? >> you never know, sheer speculation as to how many lawyers and claimants have the time today, the first day that the claim forms are available to fill them out and send them into me. what we do know based on history, 9/11, bp, we get a spike of claims in the first month of the program, and then
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another spike probably in december. the last month of the program. so we'll have to wait and see what comes in the door. gerri: certainly, gm itself set aside 400 million for the purpose of compensating victims, that's what they said publicly. what do you make of that? is that the right number? how do they come up with that number? does it give us any clues about how many people might be compensated? >> no. it's speculation. i can't speak for gm as to how they came up with that number. they said publicly it's their best estimate, based on actuarial data and prediction. i can't speak to that. the only thing that matters in this program is the number of claims for death and physical injury that actually is submitted, that are eligible and that get paid. and we'll be posting that information daily. so that people will get a chance to see for themselves and you guys as well, as to
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what's come in the door, what's been declared eligible and how much money is paid. gerri: excellent, we'll be watch are that for sure and on our website we'll putul the url for the forms. we had a chance to get a brief look at them today. there are a lot of forms. what proof is acceptable to have people to file? do they need police forms? what do they need to show you? >> we offer a menu of options. the car itself, is it still around? the black box data from the computer in the automobile. beyond that, circumstantial evidence, what does the police report say? what do the photographs show of the accident? because if the air bag did not deploy, despite the fact that the photos show a front-end collision of some force, very, very useful. warranty and maintenance records, insurance records. medical records.
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all will be very, very helpful in evaluating the claim and reaching a decision on eligibility, and on value. gerri: so we're per using the claim forms, pardon me, we're getting our arms around it, some 12 forms, highly detailed, lots of information requested. seems to me it's a high hurtle for people to fill out. is there any assistance for folks out there? is gm offer anything assistance? >> first of all when you say 12 pages. when you look at claim form, encapsuled in one claim form. you don't have to fill it all out? is it a death claim? a serious physical injury claim? is it a less serious physical injury claim. right away, you eliminate from consideration when you are filling out the form two-thirds of the form pertaining to eligibility. much of that form as you've noted when you review it, has
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to do with who gets the money in the family? what if it's a spouse and where the money should be sent, by electronic transfer? by mail? a lot of that form pertains not to eligibility or injury, but who gets the money? who can file the claim in a divided family, and where the money should be sent safely to make sure that the claimant gets it all. gerri: so much information, the black box, circumstantial evidence, seems it's not the easiest forms to fill out. is there any assistance for people who are filing claims on accidents that might have happened ten years ago? >> absolutely. you're asking a very good question. as the compensation protocol points out, we will assist any family member, anybody filing a claim. if you're having trouble
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getting through the documentation, if you're having trouble locating documentation, we will work with you. we are not adversarial, we're trying to get money out the door to eligible claimants. and if somebody needs help, there's that 1-800 number, the e-mail number, get in touch with us, we will work on your behalf. gerri: and ken, pardon me, but i look at all this data, all this information you have. it seems to me it would almost dissuade some people from filing a claim. it's so elaborate and requires so much information. is that the intention? >> not at all! and again, i say, it's not that complicated. you're talking here about the potential of distributing for each claimant who's eligible millions of dollars. excuse me, if there are some questions that need to be answered and some documentation that has to be completed.
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but i assure the public and the claimant, we'll work with you, it is not that complicated, and when you're talking about transferring millions of dollars to somebody, we want to make sure that that individual receives the money, there's no fraud, that we've worked with the claimant and helped them get this money if they're eligible. gerri: you bring up a good point that this is a situation ripe for fraud. how are you going to make sure, and i would think that your resources are limited at some level. how are you going to make sure that you're not processing claims where people are asking for money they're not new and. >> the same way we did it in 9/11 with the victim compensation fund and the same way we did it with the bp oil spill. we have an anti-fraud unit in place. we will review suspicious claims that don't make a lot of sense. wohl work with the claimant to try and verify certain
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information, and we will do our best within a very short time frame of 90 to 180 days, not months, to get that money out door. gerri: and reporting it all the way along. ken feinberg thank you for coming on. we look forward to talking to you again about this. thanks for your time. >> thank you. gerri: and these are the very forms that mr. feinberg was talking about, what victims' families need to fill out. you're going to find them on our website, how to fill them out, what you need to know, go to a deadly ignition switch playing problems in general motors and turning up in guess what, motorcycles. harley-davidson recalling 3300 dinalow rider bikes. the engine vibration with switches shutting the engine down, dealers are replacing the
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parts for free. the recall covers bikes from the 2014 model year. and still to come, a lot more this hour including your voice, that's why during the show we want you to facebook or tweet me or send us an e-mail at at the bottom of the hour i'll read your tweets and e-mails. how he went from being a rock 'n' roll drummer to modeling mogul? his fascinating story after the break.
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. gerri: in tonight's meet the boss segment, how did a kid from long island become a rock star turned modeling mogul? we introduce to you scott, the owner of one management. you have one of the most interesting career trajectories. >> and strange. gerri: and strange. how do you go from being a drummer to running a modeling business? >> when i was a kid i was always playing on pots and pans
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and 17 graduated high school early to go to p.i.t., my dad said you are going to the pittsburgh institute of technology, amazing. i'm going to the percussion institute of technology. i want to be a drummer. i had an injury and couldn't play and eventually started driving models around never thinking it could be a full-time career like this. and represent claudia schiffer, ayman, claudia christenson, corolla, bridget hall, courtney love, a bunch of people. gerri: now you mentioned social media, new social media division, tell me about that? >> such an interesting business, you see the entire business changing. we're starting a home division, secret, basically based on beautiful girls because there is a lot of new brand girls that are happening that's based
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on followings and people getting impressions. >> if you have a daughter, would you put her in the modeling business? >> it's not an easy business unless you have an incredible passion for wanting to do it. my parents never restricted me from being a drummer and said don't move to l.a. when you are 17. my band was the whole guns and roses history. and so that wasn't probably the ideal situation for my parents to see me move out to l.a. when i was 17 without guidance. we deal with a lot of parents and everyone is always supervised, if you have an agency on the up and up and they take care of you and look after you, sure, this is going to be a great experience, but you have to want it, there is 2,000, 3,000 models in new york now. the misconception is it is incredibly glamorous, it is if you get on met ball, but girls are late, you have to make sure
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girls are chaperoned. you represent hundreds of people but you have to be the rabbi, the priest, the psychologist, the trainer, everything. i don't think people realize the process, the girl who walks off the plane from czechoslovakia and next day on the cover of "vogue." there's a lot that develops her. the hardest part is honestly, you want to have integrity, you want to make sure the girls are doing the right kind of job. being a great manager is knowing when to say yes and no. you don't want to accept every job. i had incredibly strong work ethic. my dad used to own an auto shop, and he used to get up at 5:00 and drive to the bronx. i used to work with him in the summers as a kid and instilled hard work ethic in me. my parents are great. i could never have -- gerri: you're supposed to be disassociated from your parents.
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>> i didn't have a weird childhood. there was no strains. i had loving parents, they were incredible. i'm not going to lie, it's a fairly caddy business, you hear japanese girls have rejection all the time. and you have to believe in them for them to succeed. we don't do well unless they do well. the only thing in your best interest is to do incredibly well. as an agency, you have to fight for them a lot of times. girls are reliant on you unless you push them believe and they can make it. they're not talking to the clients either. it is a lot about seeing something, having a vision. it's a lot of models that came through earlier and people didn't get and they've gone to do incredibly well. gerri: when you started out, would you have thought you end up in a place like this? >> if you told me when i was 15 i would have my own agency. i really only knew cindy
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crawford, and now to represent the iconic models has been incredible, and i would never imagine it, no. especially from coming from being a musician, that career trajectory is a unique and odd thing, it happened organically, and things happen for a reason. if i never hurt my arm, i would never be doing this. so my mother always said i always believed in myself, if you don't believe in yourself, who's going to believe in you? gerri: that's the ultimate career transition, right? scott says he currently has 30 employees and represents 150 models. interesting business. time now for the stories on stocks closing out the worst week in two years, investors moved into gold, bonds and utilities. the dow lost over 380 points in the past two days. interrupting five months of steady gains. consumers have less confidence, the university of michigan measuring consumer sentiment edging down in july.
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that trend continued with employers adding 209,000 jobs in july. sixth straight month of job growth above 200,000. the unemployment rate picked up to 6.2% from 6.1. hewlett-packard agreed to settlement with the u.s. post office. h-p accused of overcharging the postal service for products between 2001 and 2010 failing to comply with terms of contract. the tech giant is not admitting any liability in settlement. those are some of the hot stories on later in the show, cooking up delicious pizza. and next truth in advertising? should airlines be forced to advertise the full force of their tickets or the price before uncle sam adds on? a debate coming up after the break. (vo) rush hour around here starts at 6:30 a.m. - on the nose.
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to see this summer's top 100 shows and movies. i voted! . gerri: a bill just passed in the house wants to make air fares more confusion. the ironically dubbed legislation wants to allow airlines to advertise the base prices only, not calculating in extra taxes, extra fees. but is this fair to consumers? here to debate maddie duffler for americans for tax reform, and charlie leoaka of travelers united. maddie, start with you. you think the legislation is a good idea, why? >> i do. because for several reasons, one is for consumers to know exactly what they're purchasing. if you think about it, this practice of having to hide taxes and fees in the base price of a product doesn't exist anywhere else. if you walk into a mall and
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going to go buy a sweater and advertised as $19.99, you know you are paying sales tax on top of that. airline consumers should have the same shopping experience when they go online, they shouldn't have to understand different prices for different airlines. they should be able to see the price competitiveness and make this choice based on that not how much the cost of government is adding to the price of a flight. gerri: charlie, what do you say to that, you don't agree. >> she's mixingul federal taxes and state and local airlines. the airlines are exempt from state and local taxes, i'd be happy to add them onto the end. we're talking federal tax, and every other federal tax in the country is included in the price. if you buy gasoline, you don't say $1.99, when you go to the pump, they're charging you $3.99. so she's talking apples and oranges here.
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gerri: i want to break it down so people can see what this looks like and what this legislation would do. so imagine airfare d.c. to boston, a breakdown of the cost. base cost is $353, excise tax, a segment fee, a passenger facility charge, security fee. the total $425. currently, that's the advertised price. 425. the new legislation would advertise 353. and can you see the tax is a total of 20%. maddie, here's my problem with the legislation. i don't really care, i want to know what i have to pay, i'm trying to make comparisons, i want to know what all-in cost is, i'm taking me and the husband and kids on a trip. i need a simple answer, why do i need to see the taxes? >> that question is going to be more and more difficult to answer if the current policy of requiring airlines to absorb the cost of government stays in
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place. because you can't see the price, because you can't see how many taxes and fees are going towards driving up why you are paying for ticket. that makes it a prime choice for revenues for lawmakers who want to continue to increase the cost of airfare to continue to pay for other programs. gerri: is it your view that the airline industry is unfairly targeted with taxes? >> consumers are unfairly targeted with taxes. they have no way of knowing how much the cost ticket is due to government, and lawmakers continue to take advantage of it. gerri: charlie, do you agree? >> first of all, i agree we're being overtaxed. however -- >> we all do. >> we all agree with tax. the question we're looking at is whether or not the airlines can tell us how much the taxes are, and under the current d.o.t. regulations it says airlines are allowed to break out taxes and fees, they can't do it as predominantly as the
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full all-in price, the airlines can put taxes and fees on ticket itineraries. gerri: there are other ways. >> to boarding passes, all sorts of ways they can sell us taxes and fees, instead even making the buying process more complicated and making the cost of travel more difficult to figure out. gerri: maddie, if you get a train or bus ticket, you get the all-in charge, they don't break out taxes and fees, they let you see what you're going pay. that's not -- you going to go after those industries next? >> well, the problem right now is this is a rule that's two years old and doesn't make sense for consumers. if you're trying to allow consumer to make a knowledgeable choice, this obscures the price rather than increases transparency. this is a bill that passed on the house floor over two-thirds of the house voting for, it both democrats and republicans, and on the floor, you had congressman coming to the floor saying this this is the most
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noncontroversial thing they've done all week, as we've seen what's happening on the floor this week, that is probably not true. gerri: i think this is highly controversial, and charlie, to you, is this a consumer favor to advertise airfares this way? is this not -- isn't the airline industry somewhere backing this bill? >> well, the airline industry is totally behind the bill. >> so are the unionized workers working for the airlines. gerri: let charlie answer. give charlie a chance. >> and so anyway, every single major consumer organization in the country has come out against the bill. every single major newspaper in the country, almost every single major newspaper came out in editorials against the bill. this is incredibly complex. congress did not allow us to have debate in the committee level. i went into talk to the chairman of the subcommittee on aviation just before the vote, he would not allow us to make comments and brought it to the house at the last-minute on a
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fly-in day, and it's just been done. gerri: if you're waiting for congress to get serious about anything, that could be a really long time. great job, both of you. interesting. >> thanks. >> we want to know what you think. here's our question tonight, what fares should airlines advertise? should they advertise the all-in price or prices without taxes and fees? log onto, vote on the right-hand of the screen, i'll show you the results at the end of tonight's show. coming up, we answer how do you do that with advice for families on preparing financially for special needs children? and next another edition of cooking with gerri, we're making something super tasty, it's called a crolato, a croissant with a gel auto hybrid. you make a great team.
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gerri: today we are celebrating summer with some delicious and authentic italian cooking. here to share his simple recipe is the executive chef of asellina restaurant. >> thank you for coming in. we are making cool stuff here. gerri: so we are going on the grilled pizza. when i'm putting it in the oven? >> that's right, it's going to be great. and we have some pizza dough right here and it's very simple to make. gerri: how we do this? >> we get some flour and then we open it. gerri: i love to cook and do this. this is different than my grandma's business. but this stuff is the same. >> it's very simple to make. we use the salt and olive oil.
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gerri: and we let the east rise? >> yes, let it rise for five or six hours. gerri: viewers looks better than mine. >> and then you can use this. gerri: cannot do that? >> yes and then what you do is u roll it to make it even. gerri: that's very tricky. okay, what do we do with these? minus not as pretty as yours. >> than what we're going to do is put it on the grill. gerri: the real italian way is
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to make it with her hands, everything is with your hands. gerri: okay, brushing it with olive oil. >> then we had a little bit of salt. and i like to be very liberal assault. gerri: okay, we are ready to rock 'n roll. >> and here i have the dough ready and it's looking wonderful. >> your best bet is tomatoes. and they have been at room temperature. gerri: when it's at room temperature you can really taste it. >> then we are going to put some cheese on it.
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and it is a wonderful italian cheese made out of cream and mozzarella. and it's gooey inside. he won let me tell kwon so you can see it. okay, can i get this to cook at home? >> oh, yes, definitely. gerri: i put a lot on my pizza because i love it. and it's certainly delicious looking. gerri: more salt and pepper and sprinkle a little bit on top. >> yes, sprinkle some on top and that is great. we have a lot more to get through. gerri: we are going to have to go to the desert. explain what you've got here.
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>> here i have homemade gelato and chocolate gelato. and it's one of my favorites from back in italy. and what we are going to do, we are going to put this in with gelato. gerri: that is gorgeous. and delicious. gerri: we don't have time for the fish tonight, but we will put the recipe on the web and when we come back, a difficult subject but an important one. how to make a financial plan if
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you have a special needs child we never thought we'd be farming wind out here. it's not just building jobs here, it's helping our community. siemens location here has just received a major order of wind turbines. it puts a huge smile on my face. cause i'm like, 'this is what we do.' the fact that iowa is leading the way in wind energy,
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i'm so proud, like, it's just amazing.
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gerri: as we head into august, the countdown to back-to-school is on. before you go out to buy supplies, some states are asked to offer tax-free shopping. some states can save between four and 7%. shoppers in texas will have to wait until next weekend and holiday starts on the 10th in connecticut is on the 17th. mississippi already had tax-free
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shopping last month. just a heads up that you will get a break on state taxes and local taxes may apply. and did you know what it costs to raise a kid? $240,000 to raise a child just until the age of 18 years old and that does not include college tuition. but for parents of special needs kids, bad figure can roderigo. so have you considered special-needs planners? and how do you avoid going bankrupt. >> is an important topic. gerri: people don't realize just how expensive it is to raise a special needs child. what are the special cost of people encountering this? >> so many. added therapies, added devices and equipment. so much depending on the diagnosis and many kids with
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special needs are not medically fragile. they have mental illnesses or disorders that primarily express themselves through behavior. that many kids with special needs are medically fragile and do need lots of extra doctor appointments and that insurance may or may not cover it. they wanted something like $130 billion and these costs are really rough and here we are seeing it can cost a family 1.4 million. so how do you pay that? honey make up the difference? >> families who are not able to save enough for projections of 2.4 million over the lifespan,
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they typically turn the life insurance with the policies to cover their child's needs beyond the lifespan. gerri: there are special trusts, can you tell us how that works and why it is important? >> yes, there are two different kinds and i will talk today about this kind. special needs can talk about the savings that the parents have accumulated and have allowed them to enjoy the benefit if the money is there to provide them without losing government benefits they are entitled to. this includes security income worth over one half a million dollars and medicaid, which
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covers medical needs that can be worth as much as they need. and for an average person it's worse in turn were $350,000. gerri: so it's critical that you put the right plans in place so your child can be taken care of even if they can take care of themselves. so who should people be consulting? where can they turn to for help? >> absolutely, they need to consult with an attorney who is an estate planner and not someone who does special needs plans because of personal injury and one comes up every two years. so they want an attorney that is experienced and state planning and that is experienced in working with families who have children with special needs. so i would recommend that you
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check with a special-needs planner or even better, talk to the parents and the local support groups for the financial planners to find out who in their area is really taking on special needs planning is a primary focus. gerri: you need someone who specializes and knows what they're doing. thank you so much for coming on because we really appreciate your time and i know a bit is an important topic so many families. now we want to hear from you. earlier this hour we had a debate on whether airlines can advertise their prices including taxes and fees. here's what some of you are saying about this process. gil says she wants them to advertise all prices and eric agrees that he wants to see title and tax and tax out the door and greg says we should only have to pay the price they
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advertise. and so here are some of your e-mails considered in washington. james says i suggest how users as cars and trucks are getting better fuel economy. and thomas from alabama disagrees and says the gas tax is a no go. spend it only on roads and bridges and a lot of people agree with you. and jeff from colorado says we always love the show. we always love to hear from you. send us an e-mail at next, we asked the question, is it legal remap to plastic surgeons have the right to post before-and-after photos of their patients. here is your consumer gauge and the numbers that you need to know for your bottom line. stay with us.
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gerri: check this out, a chicago woman suing her doctor over these photos. she said her plastic surgeon posted online before and after shots of racial reconstruction under this label. joining me now is our fox news legal analyst. is that legal? >> no, he should be ready to write out a big check because he's violated her confidentiality and also we all
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go in, we go to the doctor and what that means is that you're protected from any kind of disclosure. she's been damaged and it's very embarrassing. >> he's not a doctor of the year. and not by a long shot. she could've done under a pseudo name but by putting her name on the lawsuit and if you know her and the plaintiff, you know that that's her in the picture. so how embarrassing for all of your friends. >> for marketing purposes, that's what i love about the law. it's a kupperman agency and so
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she's going to lose that right away. >> she's been the one that's been heard doing it on her behalf. >> it's a technicality. and she said that no one even knows that it's her. >> she did the original work. >> now she's saying that the new employer could be left at the chicago facility and for that she's had a good lawsuit. but the people that are putting this up, neither one of them really had any responsibility because neither one had anything to do with the content and they didn't participate in the
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surgery. gerri: if you're the surgeon, shouldn't you say that i'm going to put your face on my website. >> absolutely. and you have to give written consent under law. and imagine if you go into some kind of situation with us. >> if she has something to do with your own humiliation, and pain and suffering, that's something. >> anybody knows about terror. >> $2 million? >> i think it's a nice story and everything, but i don't think she's really done anything to
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deserve that. so it's still not a big deal. >> it's a horribly embarrassing thing. >> don't do the cocaine. that's for sure. thank you for coming on. we will be right back with my "two cents more" and the answer to the question of the day. welfare should i bought a car, over and tells you, and you're like. a good deal or not.
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gerri: in the battle pitting airlines against consumers,
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which fair should the airlines advertise? we asked the question on logon for early question every weekday. and her story tonight, if you're looking for a job with a good compensation package, i suggest that you run for congress. and taxpayers picking up the tab for two dozen senators flying to and from that vacation time to the tune of a million dollars according to the sunlight foundation. senator chuck schumer was the biggest offender, costing taxpayers $286,000 in 2013 for his chartered plane travel. engineer senator kirsten gillibrand with $93,000. david vitter and west virginia senator joe manchin reported no charter flights.
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and finally tonight, we talked a lot about gm and the victim fund we followed every twist and turn in the story and many people have suggested it will be inundated with requests. and remember some of these cases are a decade old. and to be sure, he says that his office will help those who have trouble with that. and he says the process is an adversarial, making it easy for families that have already suffered. we will continue to cover this story and that is my "two cents more". that's it for tonight's "willis report" and we thank you for joining us. dear the show if you can't catch us live and tune in on monday because we will have a special report on chicken and what you
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you need to know and why china may be on the menu. we will have a great night and a great weekend and we will see you on monday. ♪ ♪ single. charles: tonight on making money. close the fed and dump our fiscal policy. no matter what all the talking heads are telling you. it might be warning that the economy will get worse. and the explosion of people 55 years and older. working three jobs is jaw-dropping. we will tell you all you need to know about the3 jaw-dropping. we will tell you all you need to know about the economy. my message is you have to make your money work for you and build your wealth in their 20s and 30s and 40s so you don't have to


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