tv Bulls Bears FOX Business September 13, 2019 5:00pm-6:00pm EDT
sacrificing. >> and timing matters. even if it's not as strong, it turns out to be tha disaster. thank you for joining us. "bulls & bears" starts right now. david: happening on "bulls & bears", felicity huffman the first parent to be sentence for her role in the sweeping college admission scandal. good evening enemy on the panel, adam, jonas, gary and john. gentlemen, great to see you. desperate housewife star felicity huffman sentenced to 14 days in prison, $30000 fine, supervised probation and community service for paying $15000 to have someone correct her daughter's sat scores, let's get right to molly outside the boston federal courthouse. >> she confessed, and as you
mentioned 14 days in federal prison, that's the big outcome. felicity huffman one of the recognizable faces in this scandal, the first parent to face justice. a fascinating day in court, she arrived and in court before the judge felicity huffman sobbed apologizing to the students, colleges impacted by her actions. she did not speak to the media who is waiting for her outside but shortly after the ending as things wrapped up, she released a statement, i will try and live a more honest life. the former housewife star paying $15000 through her foundation, ultimately was the plan of getting her daughter's sat exam. prosecutors called for a month in prison and saying most parents have a moral compass to
not step over the line, the defendant they argued for probation and community service but the judge determined that prison time was warranted. saying she knew issues doing was wrong, a fraud and not an impulsive act, trying to be a good mother does not excuses. another dozen parents are expected to come here to federal court over the next two months. many will go before the same judge and these are also paren parents, the question remains, and we will come to see whether or not huffman sentence as a benchmark they can look to. and a lot of outstanding questions, what could this mean for the parents who chose not guilty who are inching closer to trial. lori loughlin, felicity huffman must report but yet to be determined on october 25.
>> thank you so much for that. let's bring in misty merrick. she played guilty, she's the first one, the prosecutors were asking for 30 days, she got 14 days. let's take her actor status out of this, did the punishment fit the crime? >> i think it was fair. a judge is not supposed to consider who the person is, they're not supposed to say, this is an actress so she should be treated more or less harshly than the average person. they sentence crimes. prosecutors said right from the get-go they're not letting people get away with this, they're going for jail time that was important. everyone knows, this is not acceptable and there will be consequences. >> hi adam in san francisco, i'm wondering what your take is in on on the non-famous people involved in this.
some of them not famous merely rich people plan to fight, does this hurt their case? >> i think if you're a person who did not plead guilty, you should be shaking in your boots. felicity huffman was a perfect picture defendant. she did not drag the process out. she showed remorse, she did everything right and the defense attorney, that's advice you would give your client, fall on the sword and you get the best deal, the better deal than you'll ever get down the line. the people who do not take plea deals, i would say they need to be worried. if she is serving time in jail than other people are going to -- keep in mind some of the other parents who did except plea deals, the prosecutors are recommending 15 months. more time. so 14 does not sound like long but it's half the prosecutor's
recommendation. that's significant. >> she did everything right almost like an actress. >> 14 days, that's not a lot of jail time, but in all seasons, why did this case with all the other rich people, it was almost like she was conned, her kid did not need a high math 98 percentile to become an actor. but the people that are tricked by continent. a lot of actors are not that smart, they been tricked by financial scams. i know there's a lot of stuff that they said, involved and they knew they were making irs deduction and they should go to prison for that. but it seems like this guy conned these people. >> i think a lot of the acts that were taken in for instance an felicity huffman, it's hard to say you did not no change in
the sat score was wrong. the somebody changing your sat score -- or imposing your kid an athletic picture when they do not play that sport. ignorance of the law is not a dissent. under the circumstances, that will not win the day in the courtroom. could be a mitigating factor? like the judge aggravating and mitigating factors which lead to the ultimate conclusion. certainly somebody who says, i took the advice, either he was an expert, perhaps that could sway in the penalty phase but not in the phase determining guilt or innocence. >> changing answers of any test was the wrong thing to do since the first grade. so obviously she knew this is absolutely wrong. so the prosecutors, the schools, test diminished traders, there's a lot of information that came out of this investigation. how is the integrity of the test in the omission process, how is that going to be strengthened?
>> every single school involved in the scandal, not in the scandal, they have to do a diagnostics, a deep dive to make sure anything that is going on in the omission process -- especially the schools that are the subject of this entire thing. they need to figure out, is there anybody on the inside. and put in the procedures that a anytime to prevent this from happening, schools have suffered damages to the reputation and the internal investigations whether or not there's good to be more that comes out of this from the schools, testing facilities, that may be the case this cannot just be over, there will be a push to make sure this will not happen again. there is a lot of work to be done. >> mr. gary smith, i'll give my opinion and then ask a question,
first of all my personal opinion, this is been overblown. is there a wall between the financial part of the schools and the parents, should there be? yes, the gates foundation made $1 million foundation to the university of chicago, the sun is there, is there cause-and-effect? but we see the oliver. rich parents build up a boathouse and the kids get sick. we have seen that, my second question lori loughlin, huffman made 815,000-dollar deal, laughlin is like a half-million dollar deal. will that make a difference in the sentencing in the eyes of the judge? >> yes, i think lori loughlin if i was her attorney, i would
circle back and say is there a way to talk about a plea deal and we know felicity huffman is getting jail time, she faces significant jail time if she does go to trial because she doesn't have a strong is the case. the financial contribution is so much more. in one of the reasons felicity huffman not leeway because it was only one kid, when he came to her second kid she did not move forward. this is a mitigating factor, the judge actually booked about it. she has both kids in this scan. the department of parole and probation, they make a recommendation, they have said, this is for each individual that the contribution should not be considered in sentencing because there is no victim that lost that amount of money. therefore will have to see. the financials will matter for the guilty of the trial.
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>> is a mistake to be focusing on this issue of inequality as opposed to the economy? >> i think it's a huge mistake but i don't think the democrats care. they get up there and it's much more appealing to say will give you healthcare, forgive student loans, we will take care of you and will tax the rich in order to do it. it's not as attractive to say we will grow the economy, we want everybody to have a say in this, and it's can be heard talk about recession and omitting the aspect of the economy to stand up to president donald trump who is a strong economy going into 2020 if things don't change china trade will play out in a positive light. the stock market that continues to rally and get to near all-time highs. it will be tough to compete if you don't have a plan in terms of how you will grow the economy. and the only plan is we will take it away from the rich.
>> i agree totally, the fact is, the economy is doing pretty good. wages are up 3%, unemployment amongst women is that a 66 year low, unemployment amongst veterans is that a 20 year low. the economy is working for everyone. the fact of the matter is, i know it sounds strange, we want income early quality. the urge to grow microsoft in the urge of larry ellison to grow oracle and all those other people paid for google has created thousands and thousands of jobs. it is entrepreneurship. and it's listed everyone up. so the inequality, great, if you want to be russia back in the 1940s, go ahead.
>> i think you two are missing the point on what is politically going to work. let's move on to the question of healthcare, there were a lot said about that. let's have a listen. >> medicare for all is a most cost-effective approach to providing healthcare for every man, woman and child in this country. >> i support medicare for all and i want to make the plan better so under my plan people have the choice of a private or public plan. >> it cost $740 billion. he does not cost $30 trillion. how are we going to pay for? i want to hear that tonight. >> to think any of these are valuable options for americans and most important american voters? >> it's a most cost-effective way to destroy america.
it should go back to the income inequality. i think if one of them said the obamacare thing was pretty good but we can lower the premiums a little by raising the tax on medicare and capital gains, then you'll get cheaper obamacare. i think they have a winner in election with some people don't like the premiums and that are going up. but to go in to ripping apart, medicare for all, then they're talking later of how they want that for everybody. they're doing a big mistake for the voters. >> i think the democrats economic plan, they started with healthcare plan, free healthcare for everyone, i put those in different words. what they're saying, they have a red new deal called socialism, they are going to take us back,
president trump put america back in terms of low unemployment rates, creating jobs, manufacturing and doing all these great things, that's where the democrats are not talking about the economic plan but they're talking about welfare for all. welfare state, bringing the economy down, talking about socialist ideals. that's not the way to win the election or strengthen america. >> let's keep it on the politics, in the midterm election that just happen, healthcare was the issue, the issue that helped the democrats take the house back. i'm not asking you what do you think is right or wrong but politically that work for the democrats, why don't you think it'll work for them again? >> when you look at historical patterns, midterm elections, the houses flipped in terms of congress. this is sitting to be a surprise. when it comes down to the reelection, i think america is going to make our decision, i
would rather have a job, optimism, someone in the white house that is willing to fight for america. >> i don't think they want medicare paid for by the tax increase. their private health insurance plan subsidized by the capital gain. that's what obamacare delivered to people. it is true socialist. >> there are some people out there that don't want to uphold the system. he said one you leave healthcare alone, i'm looking at my 401k and stock market going higher and i feel confident and feel good about the economy and i like how things are. i might not tell everybody i voted for president trump, when i'm in there privately that's the lever i'm pulling. >> thank you. we are out of time. onto a different issue, president trump saying he's open to a new idea to deliver a china
trade deal, much sooner than anticipated. while asked deputy director chris christie about that next. >> we have taken many billions of dollars of tariffs and we will do the deal, let's get it done. ♪ all right brad, once again i have revolutionized the songwriting process. oh, here we go. i know i can't play an instrument,
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>> meaning we will do pieces of it, the easy ones first. there's no easy or hard. it's a deal or not a deal. it's something we would consider but we are doing very well. >> president trump he said he's open to a partial trade deal even though he preferred the whole deal. this is china saying the exempt
soybeans ahead of a new round of trade talks. here now is former deputy director of the commerce department, chris is an intern deal a good idea? >> is an interim deal with china good idea? it's a half deal a good idea, absolutely not. the president of the united states is not about half measures. neither of the american people. we don't cave when negotiations are done. a lot of people talk about the tariffs and escalation of the trade war but not a lot of folks talk about the economic impact over the last two decades. they agreed they were going to allow u.s. companies to enter the market and enforce it in protections but that never happened. we lost three and half million jobs and if you don't deal with this now, they lost over half a million jobs in the state of california, so not dealing with the bigger wish than taking this approach that we are. >> it's never going to happen,
why can't we just permanently punish a country and move on to other countries. >> no deals on an option. and there's nothing wrong with being flexible however, i think we all need to take a step back and be realistic. it's impossible to think that china would make a wholesale change in cave in to all of her demands. this might come down to how this instruction. what do i mean by that? i think no tariffs on both sites is reasonable. also asking for no forced for transfers and partnership is readable. but in terms of expecting a planned economy to immediately stop subsidizing the state owned entities as well as currency manipulation, i think that is going to be the most challenging
and that we cannot expect, maybe phase it in year two, year three and so forth. but actually figuring out a way to sell more soybeans or pork, that is not the deal. that's an appetizer, not the main course. >> we have the upper hand right now, when we have finally gratified in a few months, they will start negotiating positions. why would became now? were asking them to agree with agreed to back in may when they walked out of the room. he caved -- >> i don't think we are, you need an approach where if you cannot come to the table and get the full deal done. i'm talking the stock market, it wants to see something so it's moving higher on optimism. it's a piece of the steel would be happy for the other pieces are worked out.
and with anything, i disagree on what the nuggets should be. it should be tariffs, subsidies, i think the technology and intellectual property issues are ones that are the hardest to negotiate and maybe could come later. to your point, if it shows that the present has weakened some way, he is open to it, he prefers to do a deal but he also says he does not want a bad deal and he also looks at the stock market and says he wants to keep the market supported. maybe it's not so bad to find a compromise released as the negotiations continue, the chinese have actually buckled in my eyes. >> what we have for china to stop making the rules, it's like going to the please department or somebody saying i'm in a go to the irs and say on behalf of my taxes this year, maybe in
future a pay what i owe but i don't feel like paying my taxes -- >> people do. [laughter] basically, stop playing by the rules, start playing fair and everybody wins. >> what was that? >> i want to ask technical question, you make clear what do you think the president should do, why do you reckon he is opening the door to a partial deal? what is his game? >> that was in an ominous source and there was another direct report on the white house. >> we heard him say it. >> he is teasing it to make sure we understand and he wants to know what the consensus, what the feedback will be as much like he does with many other policies with multiple advisors, and he wants to see what people are talking about in respect to the earned him deal. i think we know why the
president cannot keep the pedal to the metal as much as he would like to because he would be attacked with any slowing of the economy. everybody agrees we have to get them to play for now if we don't do it now when will we? >> let's move on, because the icon of new york city, he has a stadium named after him, he is clean the big apple for the magic city tax-free. coming up next. ♪ when i walked through a snowstorm for a cigarette,
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>> breaking news, disney ceo bob iger has resigned from apple board of directors. apple unveiled details of the streaming service apple tv plus earlier this week, i will be a direct competitor to disney streaming service. he has served on the board of apple for eight years, he reportedly saying he is the upmost respect for apple ceo tim cook and the team apple. legendary carl icahn is taking his talent and his business to south beach. icon telling him staff he will be moving from new york city to miami because of the high taxes, the 83 old has lived and worked in the big apple his entire life as more people and businesses flee, the question is will new york and other tax states get the message and am going to ask
you, if david asman was here, you know what he would say, if you tax them they will leave. >> absolutely. here's what's going to kill connecticut's annual in the other states. not only high taxes but technology. back when carl icahn was becoming his billionaire. you had to be in new york city, that's where the people were, you did not have the high-speed internet, he had to do a lot of things face-to-face. i used to do the show from washington, d.c. because that's where the studio was, i could do this for my own house. i kept thinking why don't have to be in new york city, why should i pay the high taxes just for the convenience of being there. you'll find more and more people moving from those areas into the florida's, texas, because the technology makes it okay and the
tax is the cherry on the top. >> we have seen this before, first of all there's no disputing that many people will flee a high-tech syria for lower tax area. but these places with concentration of industries that have something special going on like new york, california, entertainment, technology and for god sake the tomato growing industry are not leaving california no matter what the taxes are and it would be silly if we did not point out an 83-year-old man who is lived in new york his entire life is moving to florida for reasons that might not have to do with only taxes. >> i would like to say $50000 to join him, i don't know what mr. icons personal tax situation. i am pretty sure he might have ready been paying the taxes and as much as i paid, what i will
say, the workers do not need these high taxes. they're the ones that cannot afford the tax dollars and having homes in two places, in fact it's a tax deduction, were now a moderate income person is losing deductions and property taxes and they need to be in florida with operative middle class worker, that is a danger and that's why near city is losing population for the first time in a decade. >> you think it's faulty? [laughter] >> carl icahn is 83 years old, is not just about the current situation, it's also about estate signing. when you look at new york state to other states, we have a death tax anywhere from 3% to 16%. it's also a way to plan ahead, let me move to florida so i avoid all the additional taxes even after i pass away.
>> i think he gives a bigger message, if we want to take this broader, david has said, the states are smaller microcosm for what is happening in the country. if you tax people too hard with the candidate penchant into potentially one of the 2020 candidates, they will find other places to go as well. we saw david pepper go to florida as well even that he is based in new jersey. you see this changing over and people trying to find ways to go around the system and make it more beneficial for them. i speak to a larger field -- >> the broader issue is not the curls of the world going to florida, interview laid into everybody in doing what the founders of facebook going to singapore in a whole another country, workers cannot all do that either, billionaires can and there's a limit you can squeeze out of the golden geese. one final point, adam pointed
out labor-intensive industries. it's united states becoming more or less labor-intensive? i would not be surprised if one day movies are able to be done remotely with actors, your have cgi and stuff like that, why did the actors all need to be at one place. [laughter] the debate over e-cigarettes is teaming up, jewell has been slapped with a brand-new lawsuit, a live report from not coming up next. ever since you brought me home, that day. i've been plotting to destroy you. sizing you up... calculating your every move. you think this is love? this is a billion years of tiger dna just ready to pounce. and if you have the wrong home insurance coverage, you could be coughing up the cash for this.
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lawsuit after lawsuit against the biggest maker of e-cigarettes, in this case were talking about an illinois teenager from the chicago area said she was using juul products in vaping heavily for a year end half and all of a sudden last month she started getting sick vomiting and shaking, doctors told him his lungs were those of a 70-year-old. his attorney claims it was deceptive marketing tactics to target not only him but all teenagers. >> juul has turned a generation of our young adolescents into addicts. and they have recklessly put their health and safety into jeopardy. for me, and for all of us, this is unacceptable. juul denies any wrongdoing in a statement, our product is intended for current adult smokers in marketing designed to
help achieve the goal. what might complicate the lawsuit, the teenager said he used illegal thc vaping products and as health officials investigate that across the country, one of the things they are looking into is whether the thc vaping products are linked to the illnesses. >> does the government need to do something specifically? >> i cannot believe this product even exist. first of all it says it's for adults, it's a free public lineup. nicotine is on the lineup and kids are smoky, is not a sensation product, because there were teenagers on nicotine then they were hooked on cigarettes ten years ago. so all the progress we have made in the taxes and the fines in
the disease lungs is all gone because this electronic drive is hanging out of every strangers mouth. what will they do when this is off the market, they are already hooked. because they're pulling oxley off the market. and this company is not going to voluntarily pull these flavors off the market, i think it's a tragedy that the government was asleep at the wheel. >> as neil would say, will mark jonas down as a yes. [laughter] >> i look at both sides of this, i see people who are heavy smokers who now switched to the electronic cigarettes and they looked at the studies and said it's much better to be vaping and deep smoking the traditional cigarette. on the flipside, children that are getting addicted that did not smoke is criminal and not
okay. something needs to happen here. perhaps regulation or bubblegum and flavors like cotton candy and fruit punch should be taken away from the market. there is a flipside to this, maybe you start taxing you tax cigarettes. >> if you put nicotine in a from frappuccino that's better than a cigarette but not a product to be on the market. >> i'm looking at alternatives, maybe a prescription to get a beat pin. >> i'm sorry i cannot believe i'm hearing this. the government to the rescue. smoking is horrible, cigars are horrible, eating too much candy is horrible, the fact that kids do not exercise and use video games is horrible. there's a lot of horrible things out there. it's not the government's responsibility. the kid wants to smoke the juul cigarette and get lung cancer,
well that's too bad. it's either his responsibility or the parents responsibility. -- >> 150 years ago kids used to carry pistols around the streets. the government said that was fine. >> the government is never the answer. >> and must be friday the 13t 13th, i actually agree with gary. we should not depend on the government however, with that said, if i was advising this company, i would say get out ahead of it. influence government, regulation, the government will actually try to do something given optics. what can they lobby for? moving the age up to 21. that makes sense. that is better than the band. you also have to look at global growth. if the u.s. steps forward and be of the product, what will other printers do? >> that something they should
consider. >> they need to forc to enforcee age limits. they are not really doing that. >> we have our government to talk about. uber and lift say their attacking california and the ready to fight back. but is it too little too late? ♪ our goals and needs. some only call when they have something to sell. fisher calls regularly so you stay informed. and while some advisors are happy to earn commissions whether you do well or not. fisher investments fees are structured so we do better when you do better. maybe that's why most of our clients come from other money managers. fisher investments. clearly better money management.
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>> uber and lift her green up to face a new law in california that can fundamentally change the way the business work. the uber law assembly bill five has made its way to governor gavin newsom. the bill will force companies to recognize the independent contractors as full-time workers. this is warned it will result in massive layoffs and uber layoffs.
adam, you not only live in california, you're an expert and wrote a book. is this going to put these companies out of business? >> it is not going to put them out of business but it could cause them quite a deal of trouble if it ends up being enforced the way people think it'll be enforced. you mention, going to gavin newsom's desk in a most immediately after that it'll be going to a judge's desk, this one will have to get litigated in the key question that will get litigated, is a company in question responsible for this person's work? that will be a real hornets nest to figure out. in other words do i tell you what to do? you are my employee. if you say i'd like some work, may i have it off your technology platform, then you're probably a contractor. it will be hard to unravel. >> i think if you have a conversation with your buddy, or contract worker, the real employee gets fired for doing
that. that said, i don't think the government should be forcing the employees to be full-time workers. i thicken the future everyone be a contract worker and that's reality in the economy of changing. i do think congestion is out of control in cities and having a lot of sitting around and traffic is not a good business model for america, i think it's okay to mandate higher wages like they did in york cities to get some of the writers off the streets seek and reclaim the rose again. >> going back to our previous segment, government making things better for everyone. leveling the playing field, deciding what's fair, deciding what's not fair. i don't know if you've ever taken uber,. [laughter] you don't need to advertise that. for all i know, you still are.
uber and lift like other technology companies have made life better for everyone. they might be losing money hand over foot and might be going out of business all on their own. but they have enriched and made everyone's life more efficient, they even made the tax i yellow taxi industry in places like newark city in d.c. more efficient. but here comes the government, they will solve things. once again they stick their finger in the middle of technology and screw things up. >> i think the government should clearly stay out of this and stay clear. when you look at the future, self driving cars are on the way. so why actually tamper with the business model forcing them to classify -- classify workers from independent contractors to employees. that will reduce jobs, worker protection means nothing to
either one of you -- >> what are you talking about. [inaudible] >> one lead to robots driving the cars sooner? >> it will not change the timing one bit. robots will drive the cars as soon as the ready. >> final word, meantime customer sounding off against popeyes byob ad campaign, it's not just because the b does not stand for beer. we will tell you about that next. ♪ managing type 2 diabetes? dimitri's on it. eating right? on it! getting those steps in? on it! dimitri thinks he's doing all he can to manage his type 2 diabetes and heart disease, but is his treatment doing enough to lower his heart risk? [sfx: glasses clanking.] sorry. maybe not. jardiance is the number 1 prescribed pill in its class. jardiance can reduce the risk of cardiovascular death
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about his chicken sandwich. ease your cravings. byob, bring your own fun. make your own chicken sandwich right there on the spot. customers are slamming this new campaign, it's not because there's no spinach. it's a terrible idea. time to lighten up on the internet. >> here's what i think, first of all in today's age, everything has to be a thing. everything is an issue. we are become the most human this society, five people left and then they are going to go away like this. [laughter] >> this is the segment where we agree because it's a fact that this is a good ad campaign because we are talking about it. people need to have a laugh and how nice that this has nothing
to do with the government whatsoever. >> i love you, guys. i've got to say, the restaurant can't service the standard for whatever reason. the customers want it, they're making a joke about it. i don't get funny. i don't want to bring up on. there's nothing funny about this. and it's not a sandwich. >> the reason being the advertising agency said they ran out of it like taco bell. did it work for them? >> i'm not sure why they are doing it that way but i don't think it's -- you have a product they want, give them the product. don't tell them you have to bring up on part. >> running out of chicken and then buns, you can't buy this type of advertising. we are talking about it, it's being shared on social media, i think this is brilliant. they bring the chicken sandwich back with funds, i think people
will rush to the restaurant. and they will tear continue to can pair to chick-fil-a. [laughter] >> on that, we will leave it there. that does it for us. >> democrats and republicans, a battle over fake tech. on the hunt for e-mails from many of the biggest companies in the world. mark zuckerberg, tim cook just to name a few. lawmakers looking for financial documents and lawmakers with us to explain what they want from facebook. felicity huffman gets 14 days behind bars.