tv Cavuto FOX Business September 21, 2012 8:00pm-9:00pm EDT
the only thing worse than republican is a democrat. at the millions of americans right now probably agree with your view. we'll have to find that november 6th just what the numbers are. that's it for us. we thank you for joining us. a great weekend and good night from new york. ♪ neil: forget about mitt romney. focus on democrats 29, the 29 senate democrats who are seeing today, don't touch social security. they oppose any social security cuts and any deal which is leaving appetit -- pretty big program, an even bigger contributor to the debt of the table, out of their minds. welcome. i'm neil cavuto. actually, cuts is not even the right term. no one ever cuts anything in washington. but there are talking about our curbs in the rate of growth in spending. something that we can do now to
slow a host of big government programs down. but senate majority leader harry reid and the 28 other members of the 53 member senate democratic caucus say social security is a nonstarter. start worrying and counting because, as i recall, paul ryans medicare savings met a similar reaction on a no go for democrats. here is where we stand. a party opposed to addressing entitlements because they are just fine, leave them alone. 16 trillion in debt still growing. i guess we're not just fine and we are getting worse when these guys do. so much for that that commission. they did not just give them a thumbs down. i think today they raised another finger up. >> two times. >> all rights. >> available for you. >> you can do that at hear it but if you touch that al have
you arrested. neil: remember that guy, don't touch my junk. he wanted tsa a dense to keep his hands off of his junk. of the feel that the senate has made clear he won't lay a finger on any of our treasury junk. shaking his head because this well-known stock watcher appears no one is watching out for us. does not look good. >> you got that right because first of all, if you just look at the simple numbers here, we as americans, only 75% will actually receive social security benefits by 2036. that is saying, nothing is getting done. obviously not talking about cuts, anything but the democratic concern about the short-term. they are forgetting about what will happen tustin races on the road. neil: your note. none of these are cuts that we're talking about in the well-known word.
they are slowing the growth of something. so if you take even addressing slowing the growth of something of a table, what is left? >> you have that right because you're looking at simple baseline budgeting rolls right now, and your right. if you can eliminate that, that would help as far as curbing some of the spending. going forward, it is clear that something needs to be done. we are not talking -- the republicans and not talk about current beneficiaries of social security. and we're talking but generations later. the generation x years. the problem is, what you start talking about social security cuts and the democrats so worried about the precious retiree vote, clearly they don't want to do anything that will at teeseven upset the applecart even though we might be talking about something that will impact as 40 or 50 years down the road. something needs to be done now. neil: but we are not doing it now, and republicans as well because they're putting off
until at least after the election any of the tough decisions. this six months' extension. but, you know, we are not making progress here. >> it was a study that came out last year that provided just a very simple math calculation. if you want to add two percentage points to payroll cuts, slowly over the next 20 years, some cuts take place in 20 years for new beneficiaries, that would actually close the gap. the problem is, the study came out in 2010. there were looking at 2010 numbers. if you take the same as we are going to have to raise the payroll tax. you're looking at extending that of many years. as a result nothing can be done because, as you know, the longer you wait to solve a problem, the worse the remedy is going to get, and it will be quite costly down the road the longer we wait >> what is wall street's going to do longer-term? it seems to have been likely
ignoring the clock? i cannot see that continuing. >> well, the economic policy point that mitt romney and paul ryan and talked about is may be taking a portion of the social security accounts and putting them to work with insider stock market. now obviously that argument on both sides of this, but it would be nice to see as far as having beneficiaries actually have some skin in the game, maybe do nothing high risk, but something where they could yield a better return which would help them. they have not talked a lot about it on the campaign only because it seems to be a help to issue, but wall street is looking at this. if romney does win something that could occur later on in a couple of years, clearly if obama wins it is off the table. democrats someone anything to do with it going forward. that would be great for the stock market and traders are keeping a close eye on this. neil: thank you and good seeing you. >> likewise. neil: who exactly is being cold
hearted? this guide for pointing out the problem, however an elegantly or this guy for putting it in a letter quite bluntly . so the man who famously said government is a problem, michael reagan. it mitt romney get a very different reaction for essentially saying the same thing. have we changed? >> some things never change, if you will. like talking about social security in the middle of a presidential campaign. when you need florida to, in fact, possibly win the presidency of the edison to america. barack obama has mitt romney ran everyone said, talking about medicare, talking about social security and those issues which keeps it romney talking about jobs, talking about what is going on in the middle east and everything else. you know, to watch all of this, you have a pullout and says that people support barack obama's plan on medicare and social
security by a margin of 47-37% against mitt romney. i thought to myself i saw that, can anybody tell you what barack obama's plan is for medicare and social security? no. because he really does not have a plan. neil: what is interesting, the media, and no great fans of jimmy carter in 1980, but more fans it is that they were of your father. i'm sure you are remembering. what was interesting that year. before the landslide, the polls were tight. a lot of them said jimmy carter was in the lead. and we forget that. i'm just wondering whether it is an important time for you to remind all of these, you know, arian sort of pendants are those who say mitt romney days are done should be reminded of that. >> there are some changes can make, but in reality we were down in october.
we were down going into last weekend of the election. i remember answering my phone, calling me, very early october of 1980. we need you on the campaign trail. i said, really? i went out on october 6 to 1980. between october 6 and november 3rd and my sister was doing the same thing, 66 airplane ride to 90's state campaigning for my father. you need to run the selection from this point forward as if tomorrow everybody is going to go to the polls and vote. you can turn this around. it. neil: do you think that he can't? i'm sorry, but even on the right day, the new ronald reagan. they love ronald reagan. but ronnie is normal rate in. he won't have the same end result. it is a cynical results. >> i think in many ways you're absolutely right. he has to learn. ronald reagan got even the harmony talk to you.
he brought un. mitt romney has trouble doing that ronald reagan got even the . you know, maybe it's time for mitt romney to go around the mainstream media as are buying time on television and start telling us what he would do as president of the united states neil: what is he doing? he has more money. it started with all of this house a bill, did not spend it at the convention. the obama folks outspent 6-1. the argument was, resources and really get ready for the fall. but i am no expert. maybe that is a good strategy, but it is not proving that we now in the polls. what do you think? >> it is not proving that way because barack obama has in speaking about what barack obama watson to speak about. and that is where you lose. mitt romney has to talk about the issues that he wants to talk about. when you have unemployment going
to the rich, more people on food stamps than ever before in this country and 30 embassies under siege, ambassadors being killed. who wants to talk about medicare? it gives you a headache. sector but the issues that concern all of america and what is going on in the world and what u.s. president are going to do to solve it. neil: 71 data that. i would talk about medicare. when you take a look at what's going on here, you do the math. these other numbers. i don't know. maybe you're right. on defense. working on defense mackler is the defense about medicare instead of offense about medicare. the reason this whole thing it's coming up is because of florida. the college students -- how many of you voted? because of you i have medicare and social security. because america puts you, you
know, at risk in the future because you don't vote. old people vote, young people don't. young people young people need to hear the message and come out. they need to vote to save their medicare and their social security. that is who needs to hear the message. neil: well said, michael, always good to talk to you. coming up, people are not weinberger's life easier. what the biggest beef is with washington. also, are you planning to fly american? get ready for some turbulence 4g lte has the fastest speeds.
so let's talk about coverage. based on this chart, who would you choose ? wow. you guys take a minute. zon, hands down. i'm going to show you guys another chart. pretty obvious. i don't think color matters. pretty obvious. what'sretty obvious about it ? that verizon has the coverage. verizon. verizon. we're going to go to another chart. it doesn't really matter how you present it. it doesn't matter how you present it. verizon. more 4g lte coverage than all other networks combined.
to cancel hundreds of flights this week. the union claiming this is not at all conditional. it's hard when that loyalty back, right? >> that's exactly right. if people get the impression that and they have got the impression that they can't count on the flights going on time and they can't count on the flight going at all. they are going to make all kind of arrangements. this is something that is a kind of behavior that has been rampant throughout the airline industry. for many years. the pilots have great leverage. they know that they have great leverage. whenever you get into a contract dispute, you have this kind of thing. at the moment, i think the
american pilots are being very foolish. this kind of action and juncture in the company's history can have very profound effects, which, of course, will have adverse effects on the pilots as well. neil: okay, they didn't like the deal come but they essentially signed onto it, didn't they? >> no, this is the one they turned it down. they signed a consensual contract. slightly better than the company would have imposed in the bankruptcy court. but the company has been trying to reach consensual deals and the proposed agreements to all the unions and all the unions accept the pilots.
neil: all right, i misunderstood. let me ask you this, then. if you know a worker, is intentionally calling in sick or whatever, and it does happen consistently among a large group, you don't have to be, you know, this doesn't seem entirely medical. what our management options, and what can they do? >> about the only thing that they can do in these circumstances is go to court. various airlines have done it at different times. when the statistical data, the frequency of these events is offenses as far out of the norm as this year's courts have found it -- it can result in legal action. unfortunately, other than that, there is very little that we can do. >> so what does it look like
now. when actions like these are taken on either side, whether it is the team players or whatever, it kills the brand. in this case, american airlines. a lot of people will look at a choice of an american flight or a delta flight. i don't want any risk right now but i'm not going to fly. it's going to hurt the pilots. pilots are married to a seniority system. it locks them into a given airline. it has an adverse effect on their own career path. neil: but they are clearly figuring that they are the bread
and butter. the most important folks in their eyes and that you need them and that when push comes to shove, you will then. >> well, and in fact, that is what has happened over the years. in this particular case, because of america being in bankruptcy and all the other unions in the consensual times -- in this particular case, there is not a sensible way for management to get in. you have a very damaging situation for the company. as i say, the pilots themselves. neil: in the meantime, fuel costs are not getting any cheaper. how do you think the economy is going and what are you sensing? >> i think the economy continues to be very weak. i think all of the data suggests that this is going to be a long slide. we are going to be looking at
1.5 or 2% for the next several years. the economy needs all the help they can get. one way or the other, we are going to have to raise taxes and we are going to have to cut spending in some areas where people were prepared not to cut spending. neil: that's a good prescription for making a weak economy even weaker, right? >> no, i think the answer is if you.simpson-bowles, as it was written, i think what you would find is that the simple adoption, the adoption of a plan would create so much general optimism and so much confidence. neil: that you're going somewhere? >> i think the biggest drawback that we have an economy right
now is that everybody believes that the government is totally dysfunctional. and it has no plan. that there isn't any consensus in the government and we simply have got to find a solution to these problems. and the concept is that everybody is hunkering down and putting their money in a mattress. neil: you are right about that. always good to talk to. >> it is my pleasure. neil: bob crandall, thank you very much. here is the bad news. people are spending to go into debt. only so long before they stop doing it. that is not exactly the most happiness. i know the name of eight princesses. i'm an expert on softball. and tea parties. i'll have more awkward conversations than i'm equipped for because i'm raising two girls on my own.
i'll worry about the economy more than a few times before they're grown. but it's for them, so i've found a way. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there. to start her own interior design business. she's got a growing list of clients she keeps in touch with using e-mail marketing from constantcontact.com. constantcontact is easy and affordable.
neil: in our fox financial flash. they spoke trying to book some extra bucks. it is going to start charging businesses for promotional offers. general motors recalling many cars come including malibu's and saturns. it is generally not good. household debt hitting $13 trillion last quarter. it is the highest we have seen in four years. so could people cut back? dc any signs of that paul? >> there is probably less signs
of that. i just finished meetings over the last several days. different members of my executive team, we talked about a new prototype. we talked about a new menu. we talked about a new beverage menu so we can bring new life. and we have a whole new attitude. although there are so many things that we are trying to address right now. so many are trying to gain some traction like the financing for our franchisees. the we have had to create our own quantitative easing program. and you'll love this. we sat down with a really large real estate group with the name of blackstone, who owns them from one become one of the largest equities in the country. and we devised a program where we are pre-approving locations and they are providing financing for qualified franchisees.
so now. neil: do they have to be christine? >> well, of course, they are going to have to have a pretty good credit score and have some equity that they're going to put into the operation. but what is even worse is trying to get financing through the fda. it has been cover the last four or five years. it is so contradictory to me because you and i talked about this before. this is the very thing that can help us to gain traction in our economy. these entrepreneurs and franchisees are building restaurants, operating and hiring about 100 to 150 people and management. neil: but a lender, private or otherwise, i'm going to look at this -- i know it's bennigan's or whatever -- not so sure.
a very short winter season. when people got out and spend some money, it was a very robust economy. we are not in negative sales territory, but have flattened out. we will have an appetizer and entrée and a dessert at a special price. but not individual entrées or appetizers. at a bundled price. yes, we have seen sensitivity to it and we have seen sensitivity to bat for several months now.
neil: has it changed in the last few months? people opening their wallets a little more, then i fear that they are going into more debt. what are they doing? what has changed in last two months? >> people are saying not just with bennigan's, but in all the media establishment, the frequency of dining out has slowed down. some of the segments are trading down. casual is going more into the fast food area. the shame is that the eating today for casual and fine dining is really wrested rustic from the economic woes that we are all having today. again, because of the price of gas going up, there are no real solutions for the economy. the unemployment, i think, we
are hearing that it's improving. but i don't know that it is improving as much as people just gave up looking for a job. neil: okay, paul, take care. >> also we have a new cheesecake just for you. >> we will talk. >> meanwhile, dc these long lines for the latest iphone? there are days when they line up just like that. pull up a chair and i will tell you the rest of the story
neil: apple is off to the races with its iconic iphone again. you know, there was a time when there was a challenge to the famed blackberry would have been unthinkable. a time when it ruled and all other phone makers drooled. when everybody had them and you had anything else. do you cook or today, research in motion apologizing for service disruption in the middle east and africa. users cannot access e-mail or text messaging or phone service. for hours.
apple gets a gadget not even five years old and dismisses that debut as the best of the blackberry want to be. a reminder of any field or company. and it was called toyota. brick and mortar retailer tried to snicker after amazon.com was pushing buying stuff on the web. yeah, right. what a web that has gone bad. not so dismissed. take a look at history. actually, take a look at today. an unstoppable giant apologizing
to the customers it has left. the same day, another is enjoying throngs of customers waiting in long lines because we just got a habit now for now. it's good to be apple and good to remember that there is no guarantee that it will always be good. there will always be good to be apple. >> remember what i'm saying, kids. [inaudible] the capital one cash rewards card
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neil: that frenchman is not alone. now, from down under, dripping under our skin. >> week knowledge the biggest threat to the world's biggest economy. the crisis it is a part of the republican party. neil: you are a crock. those are supposed to be our allies. you know the economy is really bad. you get my point. meanwhile, the election actually starts today. a full seven weeks before the election. president obama winning the money race in august. the obama campaign ending with $89 million in the bank compared to the romney camp and the
$8 million. the republican national committee holding about 10 times more cash. washington continues to pound businesses work more regulations. the treasury considering new rules that would force financial firms to get more information with customers. the government saying that it is a way to fight money laundering. and it is another way for dc to clamp down on wall street. jack bogle is with us. would he think of this, jack? it is out of nowhere there. >> always good to be back with you, neil. it is a great idea. there is that tax dodge going on out there. the government in good conscience has to take action. i have a little bit in my new book called ideas for everything. ideas are a dime a dozen. implementation is everything. this is a good idea to get
everybody out in the open. but the implementation is everything. as i look at this and read the complaints from all of these bankers, they are saying that we have all these little clients and so on. there is no reason in the world that i can think of where we can't limit the disclosure to a council decision. neil: when he think, a million older? >> i would say something much lower than that. $70,000, it could be 500,000. neil: but the people that hold those accounts, that we might as well be chasing the hard way because they are going to feel that they are being scrutinized by the government, and a lot of them are doing nothing wrong. >> well, i don't know who would want to say that stuff except somebody who was doing something wrong. why do they care? the government is involved in our lives and no one can deny that. we report to the irs.
shareholders, capital gains. neil: that's my next question. it sounds like there could be another layer, you know, going through stuff. >> as i read it, the irs is not involved in this. this is the treasury department. neil: the irs is separately involved. so now you have a redundancy. >> well, full disclosure has always been part of the mutual fund industry. i think full disclosure, now, maybe you should do some other steps. i will admit that. maybe you should have a subpoena. neil: but wouldn't they just comply with this, isn't that a fear as well that it will cost to shareholders something? >> well, this is a funny industry. these managers make millions, sometimes billions of dollars a
year and if the cost go up $500,000, they complain. the cost in this industry is all in very high management fees, very high sales charges, turnover costs, i think costs is the last refuge. cutting costs and telling what the cost is. neil: it's a good point, but we live in a day and age. we start out in this industry. we now have more mutual funds and we do stock. we have more specialty products and we do the economy. and i'm wondering if there is a price to pay for all that and it's just too much. what you've been? >> well, on the mutual fund, we have become the individual stock -- they used to be all the speculators played. now they are playing an exchange traded fund.
it's better for them because they get more diversification. you probably know this. the s&p 500 exchange traded fund, the widest traded stock in the world. day after day after day. neil: that stirs me in and of itself. that scares me just the amount of the loan can have such an enormous influence. there are a lot of these guys, i don't know. i don't know where that goes, but it troubles me. >> people have reasonable differences of opinion about whether individual investors are doing this speculation. there's not much question that about 75% of this trillion plus dollars, 75% of that total cost 750 billion, it is held by people that are treating all the time.
people with the traditions, long investors, short investors, they trade back and forth there. the day they show us as a group, all the transaction costs come in. i don't think it's because they help it. these institutions are grown up. neil: really quickly, i would be remiss if i didn't get your lay of the market when going into the fall here. we always freak out about another expense. remember four years ago, you know this time of year, you know the chills or causes. what do you see? >> well, first of all, the fact of the matter is the u.s. gdp is
the best performer in the developed world by a developed margin and the rest of the world has not made this kind of recovery. china is rapidly growing. yet despite the economic conditions, content is really a high level. looking at a 1%, that is probably the five-year note, look at the 5% corporate bond. that is a vote of confidence. that is not exuberant. that is just about where it ought to be. a level of confidence, but a level of short stipulation we want jack, it's always good to see you again. please be well. >> anytime. neil: jack bogle. meanwhile, violence in the middle east is exploding. and eric bolling on why he says he is thinking about rigging the
neil: a losing battle on oil right now. washington trying to cut down just two years after the bp oil spill. a new report showing that oil is expected to make a big comeback. then we get the saudis to cushion the blow. >> whether it is a transition into a mitt romney, they would love to see a barrel of oil per $100 for the foreseeable future. that's great for them,.
[talking over each other] >> definitely the opec nation. four dollars per gallon of gasoline. we have gotten used to $4 or $3.83 today, which is ridiculous. the difference between a dollar 83 and listen to this number. it is $400 billion per year, more money coming out of the american taxpayer, out of our buying power and the economy. and in this case, 50% being sent to the middle east and working its way for our own economy. that's a lot of money that we don't need to be removing from our buying power, especially now
neil: i would think in that environment we would be shooting through the roof. maybe it is a slowdown that you talked about. but certainly, that would normally jack up prices. right now we don't have any of the major producing countries involved. pakistan produces no oil. so the major producers are not involved. if you bring in the questions. absolutely -- i don't think any of that is what happened. i think at some point, the u.s. is where you stand up and say, okay, we have burned our flag, enough is enough. maybe flaxen drones to pakistan and the embassies and say, okay, we are going to step up and start to take action if you don't back off.
four dollars a gallon in september. no reason in the world, it shouldn't be that way. [talking over each other] >> i just don't understand, here we are in the middle of september and it's okay that it hasn't hit $4 after no, it's not okay. truckers do not think it's okay. they're the ones putting for dollar 50 cents -- $4 and 50 cents. neil: meanwhile, you might want to be more offended by what this guy just said. you know what's complicated? shipping. shipping's complicated. not really. with priority mail flat rate boxes from
so let's talk about coverage. based on this chart, who would you choose ? wow. you guys take a minute. zon, hands down. i'm going to show you guys another chart. pretty obvious. i don't think color matters. pretty obvious. what'sretty obvious about it ? that verizon has the coverage. verizon. verizon. we're going to go to another chart. it doesn't really matter how you present it. it doesn't matter how you present it. verizon. more 4g lte coverage than all other networks combined. to start her own interior design business. she's got a growing list of clients she keeps in touch with using e-mail marketing from constantcontact.com. constantcontact is easy and affordable.
it lets her send out updates and photos that showcase her expertise and inspire her customers for only $15 a month. [ dog barking ] her dream -- to be the area's hottest interior design office. [ children laughing ] right now, she just dreams of an office. get a free trial at constantcontact.com. and what they said is amazing. review 5-hour energy over 73 percent who reviewed 5-hour energy said they would recommend a low calorie energy supplement to their healthy patients who use energy supplements. seventy-three percent. 5-hour energy has four calories and it's used over nine million times a week. is 5-hour energy right for you? ask your doctor. we already asked 3,000.
neil: republicans punt and democrats kick the can. either way, we will get off the can. sorry for sounding inelegant. there is no other way to describe the events of this past week. where we were advocating over who mitt romney offended when he spoke about the income taxes, 47% are paying no income taxes. how did that number get that high? all of us are saying that we should put our spending on will
keep government lights on, no fewer than 29 democratic senators signed a letter demanding that social security cuts the cut, once they all come back. both parties sitting on their hands, i can see the moody's downgrade now. folks always tell me to relax. it's months away. was waiting means that we shouldn't be wearing -- we should be wearing more at the rate of $4 billion added to our dead each day. we should be worrying a lot more. so here is what i'm thinking for next week. maybe we can worry less about this and how we are going to keep the lights on instead in this country. out of cash and out of guts. increasingly out of time. it's time to wake up and smell the coffee.
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