tv MONEY With Melissa Francis FOX Business July 4, 2013 5:00pm-6:01pm EDT
thank you for watching. pplause] melissa: i'm melissa francis, and here's what's "money" tonight. we're honing in on the power of money. >> meredith whitney breaks out her crystal ball. from unemployment to the housing to the fed. she will give us a forecast you only get right here. a former trader memoir most the roof off wall street. drugs insiderred trading you name it. how is that driving scandals at laces like sac capital? the author gives us juicy details. it has been a wild few months for some of the country's biggest ceos. are they still the best guys for the job. our power panel tells us if they're a buy, sell or hold. even when they say it's not, it is always about money.
melissa: meredith whitney is one of wall street's most famous oracles. she written a new book, fail the of the states. she predicted the subprime crisis. i recently spoke to her to get her forecast for some of the biggest issues facing our money. we started off with housing because it seems to be exploding again. i meanto a lost areas we're seeg housing prices really climb back and my question for you, since you saw the first one coming and everything that came with it, do you think that we are on the precipice of another housing bubble, yeso? or no? >> no. you have homeownership rate right around 65%. it probably has to go to 64% to normalize. it got close to 70% in 2006. that was the peak. that was really driving home prices. i think what is going on right
now, you're bouncing off the bottom and having double-digit bounces off the bottom. phoenix, arizona, for example, market sup 20% but still off 45% from the peak. you're dealing with very big bounces off very low bottoms. there are exceptions to this market. there are exceptions in miami and new york where you have a lot of for rip buyers. they're predominantly cash buyers. like the art world. there are no know your customer laws of the you could argue it'e a great place to park cash.3 meliisa: what do you think in those cities in particular? do you think it keeps going? talk about new york a miami, is that good for bad for people in those cities? >> it is great for the very high-end. a group of investors came together and bought a 90 million-dollar apartment in new york. you see very, very high-end doing well. like the high-end art market, wine market, et cetera. you see average moments not well.so in certain areas they are. they're doing better than they were but again, still off very
low levels. so you still have a pretty sizable amount of negative equity where people owe more on the mortgage than their home is worth. melissa: right. what would you w say to the average person out there trying to figure out where they are in the market, if they should buy or seluyl right now? do you think it's a buyer or seller as market? >> it all depend. most people make a choice of buying a home not the basis of investment, right? melissa: necessity. >> they want to live there. often times because the u.s. economy is only one with a 30-year mortgage, people argue it is more affordable to buy. people would argue for a long time it has been more affordable to buy than rent. that is false indicator. everyone goes back to and saying incorrectly we reached a bottom in the housing market because the rent, it is more expensive to rent. that clearly has not been something to a go by and be rigt about. everybody felt good with housing is off the bottom. i just don't know how far off the bottom it can get. melissa: move on to the next topic on the top of mind. that is really unemployment.
that has a huge impact on the housing market if people don't have a job. they can't h be in their house y longer. it will have a a huge impact wht the fed does. sopa that magic 6.5% rate in unemployment, do you think we hit that in 2013 or 2014 or 2015 or beyond that if you try to pick a time frame? >> participation rate is steadily declining. >> that helps. >> so t it's possible that we gt down there. i would say, 20, it has to be a 2014 number. melissa: really? >> i think so. but the problem is, it's not a question of, people need jobs to get the housing market going. there is a high structural unemployment in the exact areas where housing collapsed. if you think where the high structural unemployment is, it is california, arizona, nevada, florida. so these industries really need to diversify, right? so it is arguable a lot of
construction jo jobs were manufactured, papered over the loss of manufacturing jobs. melissa: right. >> until we retrain workers it is hardt' for them to get new jobs. melissa: is that really what it's going to take? can the housing market make a come back an bring those people back into the economy? or do you think we really have to have a big shift where those find totally different careers going forward because those are what happening in so many states? >> you do such good coverage of banks. profits for banks last 10, 20 years has been housing, right? banks are not underwriting mortgages on relative basis. they're higher. the whole industry has shrunk. close to $7 trillion has been taken out of the mortgage market. you look will happen. hard to believe you will have another housing boom in california because the population doesn't support it. hard to believe you have another housing boom in nevada. melissa: they have to retrain. >> they have to retrain to find
different industry. that is good. every 50, 60 years that's what happens. there is lot of grade jobs out there. melissa: you think we can get back to 6.5% in 2014? that's when ben bernanke says he sees that he will probably be gone by that of course the fed said that is the indicator they're looking toward when they decide to pull back on qe. >> lonet me correct. i don't think we'll see it before 2014. melissa: there or beyond. >> you see now, you see high structural unemployment in some areas and unemployment levels literally half that in other areas. north dakota which is talked about so often, there are not enough employees to fill jobs there. melissa: right. >> the question of the u.s. economy rebalancing. it does every 50, 60 years. you think about what happened from thek manufacturing economy, to the housing economy, before that,, you know, now i think we're getting back to the manufacturing economy. melissa: i don't want to e end e segment without getting one of the most questions really worrying markets right now, and
you would know this well. do you think ben bernanke can get out or whoever is in the fed seat at that point can they stop quantitativean easing without roiling the market? >> it will being really tough because so much of the profits in wall street and financial markets have been asset inflation, right? in 2009, late 2008, early 2009 the fed purchase program really reflated all of -- melissa: right. >> enabled banks to write up everything they wrote down. melissa: people run to the exits when they see the fed move? is there some way the fed can stablize things to stop that from happening? what is your opinion. >>t financial companies, right? manufaccurers will not be upset by this. certainly retires es will not be upset by rates going up. melissa: will the whole stock market go down? >> the market will go down, right? financials will be much more hit than any other sector because, youor know, you think of alternative asset gatherers or
asset management industry because principal on the bond will be less so that's a big think. melissa: i'm sure you read what jamie dimona said from china, when we go back to interest rate environment more normal, i'm paraphrasing, of course, it will be volatile and scary for some time. we wants to get back to a place where things are normalized but it will be volatile and somewhat scary. do you agree with that? >> jamie dimon is interesting because they have a very low loan to deposits ratio. what that means they have a lot of securities on their books. they bought a lot of bonds. what l happens to that portfolio when interest rates go up and the are worth less? jpmorgan is not unique in this situation. banks reacted to no loan demand put a bunch of securities on their books. the sensitivity to rates i think what will be most volatile. melissa: that is why they're worried about it but do you think in general the whole market? people will be worried about violent moves in interest rates do you think that will happen? >> in terms of violent moves?
hard to imagine there is a replacement buyer to the fed, right? they have really crowded everybody else out, right? melissa: right. >> so i think the next bid is a lot lower, yeah. melissa: well, whitney was right about the fed and markets. two weeks ago we saw ben bernanke hint and possibly easing up on the bond buying and the market was massacred losing 500 points in two days. obviously we'll keep watching that one. next on "money," companies are on a tear hiring back old bosses that already said sayonara. will a the growing trend at places like proctor & gamble and jcpenney turn the companies around? steve forbes joins us on the power of money. plus, the perfect recipe for insider trading. a tell-all memoir exposes the fuel for out of control behavior on wall street. the author gives us the dirt. you will be shocked to hear what he reveals. more "money" coming up.
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perform poorly. the latest two examples are reappointed proctor & gamble ceo, a.g. lafley and jcpenney ceo mike ullman. what are the thing with second chances especially if they were originally fired themselves? surely an example of the power of money and i spoke to someone who knows all about, that steve forbes. have youme noticed this trend? people likeen the old school, steve jobs, howard shults, who invent a company, you know, and they get it off the ground. they leave and it sort of wobbles and they have to come back and right it. that is one thing. but these other guys like a.g. lafley or myron ullman who was basically ousted out of jcpenney for poor performance of the they put somebody else in and they have to bring him back. what does it tell you about a company? >> what it tells you they made the wrong decision on succession. it is one thing for a founder, no onee likes to leave the corporate thrown. melissa: yeah. >> so they wansst to get back. it doesn't always work.
the former head of occidental tried to get back and got tossed off the board for his efforts. they did n not want him back evn though the current ceo had some questions about hisss performan. inca the face of founders they always know how to do it better than their successors. in the case of starbucks it certainly worked out. steve jobs as you alluded to was fired from his job. melissa: right. >> it took him 12 years to learn to be ceo. he was a terrible leader in his 20s. when he came back he was a formidable one. melissa: what did he learn in the time off? >> he learned how to attract talentede people. how to get the best out of talented people even though he had a prickly personality. it was a painful process. took him 12 d years to do it. became a greaoft corporate lead. one of the greatest of all times. without that 12 years in the wilderness he would never be able to do what he did. melissa: the same wouldn't be said for michael dell. that is another example. >> there is a man who left the company. came back not becausese of the
money. he is a very wealthy man. starto >> he felt the company was starting to flounder. the stock collapsed. what he found out reshaping the company is formidable. what he is doing the buyout for not to do a financial engineering deal. what he realizes there will be real blood on the floor to reshape the company. he wants to be able to do it on his own because he thinks he can do it and only one who can do it. melissa: do you have confidence in him? look whatok happened to the company since he came back in 2007. the stock has fallen almost 50%. >> i think the slide was already beginning before that. melissa: yeah. >> and the prospect of him coming back boosted the stock initially but i think he wants to move away from the stock. this is his baby. he wants to be able to have a chance to revive it. he knows it will take massive surgery. he doesn't want quarterly reporting shareholders on his back. melissa: is it hubris when these guys come back? they have been at the top and left for one reason or another? >> part of it is ego. they love doing it.
really the entrepreneur. the entrepreneur who created something.d this is his creation. when he sees not being run the way he thinks it should be run. getting away from his original spirit he will come back. melissa: yeah. >> in the case of penny, that is heil unusual one. melissa: that is exactly where i was going. myron ullman was out offed from this company. >> here's a very strange case. they, everyone felt jcpenney was on a slow decline. so they bring in ron johnson. great record at apple. great record at target. and comes in as a massive failure. they didn't stick with him. they didn't provide the money to see this thing through and rehired his predecessor. melissa: is that a mistake? should they have stuck with ron johnson in that case? >> they should have known once the thing floundered in the beginning the amount of time to reshape this thing will be massive amount of time. now where are they going to go? i'm not sure mike mull man how
long he will be there but they have to stop the bleeding. >> do you think he is temporary and same thing about a.g. lafley? >>az lafley left in a blaze of glory. he turned it around. unfortunately the successor had problems. that is not more leisurely case. they have to bring in new talent. they're a little shortrt on the top bench. it will take him a couple years to do it. he had success where ullman said, you didn't do that very well, well, compared to what? melissa: i think that was the% biggest surprise of all of them when they said they were bringing ullman back. a lot of people couldn't believe it. do you think that is temporary where they do some sort of a search because they weren't happy with his performance in the first place? >> the equity fund need to figure out what should this company be, where can it go? and be willing to provide the resources and turn the thing around. quick turnarounds only happen in movies. real life is very difficult. melissa: steve forbes is wealth
of knowledge. i'm sure a trend of old bosses back in the saddle isn't over yet. coming up the power of money. former galleon trader and hedge fund titan bares all in a scintillating book what is happening behind the scenes. we'll get the latest scoop on insider trading scandals he says were rampant. some of the best-known ceos were put in the ringer this year. elon musk, jamie dimon and steve cohen still the best men for the job? our power panel has fun telling us if they are a buy, sell or hold. stay where you are. "piles of money" is coming up. [ jackie ] its just so frustrating... ♪ the middle of this special moment and i need to run off to the bathroom. ♪ i'm fed up with always having to put my bladder's needs ahead of my daughter. ♪
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depicted raj raj insider trading conviction is. this is tantalizing tale of booze, drugs and sex. it gives a glimpse into pressure behind the scenes, possibly the cause for so many recent probes into insider trading. i spoke to the author of, the buy side of wall street traders, a a tale of spectacular excess. i have to say, it was fascinating to read because it really seemed like fiction, but it's true. do you think insider trade something rampant all over wall street? do you think it is pretty common? >> i? think there is a big difference between today and 10 yearsan ago. back then we were operating sort of under, one of the consequences, and the milken and boeskys were distant memories. so the idea of actually getting caught for doing something that may be crossed the line really wasn't in the forefront of our -- melissa: do you think that changed? raj's conviction changed that? >> yes.ss if i'm a 29-year-old kid and
work forking pm who has a 50 million-dollar home in greenwich. melissa: right. >> he is sending trades across my desk maybe are suspect i'm going to think twice because what's happening now, they're going after the younger guy, trying to get them to flip and then go up the ladder. melissa: you have to watch what is going on at zack capital. >> of course. melissa: what do you think about that? >> i never worked there so i can't speak. melissa: you have inside knowledge how the business works. h you know how much pressure is put on people to come up with right trading. you talk about, this is one great quote that really struck me. raj soft often pits one employee against another this is cockfight model. this sound so familiar to people on wall street. he gets off on it. like a cheerleader gets off on having several suitors. he guess them to fight. heey stirs up this energy. >> right. melissa: where somebody will go out and makerg money. could this, you feel like this is t going on at sac capital or
could be? that same kind of environment? >> my guess that steve is operating 100% by the book today. i have no idea about the past. if you were him, would you continue to, mean, no. melissa: i don't know. it's, the question is always, no, you when you see outsized returns. >> right. melissa: see somebody do so well for sofo long, like a gambler doing so well for so long. >> right. melissa: can you do that with research? is your research that much better. trading skills and momentum that much better or do you have more information than anybody else? >> 10 years ago you probably had more information. melissa: yeah. >> and you know, i sort of likened it to the steroid era in baseball. let's say you'reer a aaa guy and you want to make a major league roster. do steroid make the team. don't do steroid. melissa: right, right. >> if you're k at a hedge fund d you can get an edge, that is kind ofnd what -- you think that changed in this time? >> i d do. melissa: off the book -- >> story to>> interrupt.
if i was sitting at a hedge fund right now i would think, 10 times before i did something that crossed the line. melissa: well that's good to hear. the other thing that is fascinating about the book of course that everyone would love just detailing the excess. always fun to see inside. when i read books of fixion you wonder if it is as gory or explicit as extravagant. >> right. melissa: you're telling thing first-hand. everything is provided and paid for by the sellside. they were kind enough to order in chinese and mexican escorts. ias walkwatched as two american express black cards fly through the air across the kitchen and they landed atop tte blow. is that still the same today? >> probably still exists. maybe not on the sail level or done undercover. but, you know, wall street doesn't turn people into addicts it attracts type of person. melissa: that is gamble or person that is in that sensation. attract as certain type of
person. what has reaction been like to theme book? are you still in touch with people that you used to trade with? >> it has beenth mixed. melissa: mixed? who is negative? >> i would say more wall street people who don't know me, sort of sent me messages or contacted me and they think, it's a scathing like tell-all but the truth of the matter is, i'm exposing myself. melissa: yeah. >> and these are the mistakes i @ade. and, questionable behavior, you know, this is what i did. along the way people get to see these world i actually lived in, which not too many people get to see. melissa: yeah. the 99 percents have been more sort of -- percenters saying they love the book. melissa: i'm not surprised. a great read by the way. perfect for summer. i highly recommend it. up next on "money" critics try to tear down elon musk, jamie dimon, steve cohen. should they be worshiped as ceos. our power panel tells us if they are a buy, sell or hold and why.
melissa: from worship to ripped apart, we have watched a lot of big named ceos get dragged through the mud by bad press scandals and firings. leadership abilities ? we decided to have a little fun with one of our power panels to see who, not what, they would buy, sell or hold. we went with some biggest names and start with elon musk because he is the one who got us thinking about this. here you have a guy who has an incredible track record. he pass paypal and tesla and solarcity on fire right now whatever you think of the companies. if you're a stockholder you absolutely love them. he has spacex. he is blasting in outer space. he without question a genius and wants us to pack our bags and move to mars. i don't know, it makes me
nervous. is he genius or batty, buy, sell, hold elon musk. >> strong buy. melissa: really? >> he is no innovative. paid back the government their loan. yes, he has all this vision so did steve jobs and really think one day we'll look back and look at elon musk and put him in the same category with some of the great innovators and leaders in technology in this country. melissa: nothing she said eclipses crazy. do you care? maybe mad genius is just fine. >> be careful with calling musk crazy. he has a habit of taking to twitter and lambasting his critics. >> i would be so flattered if he tweeted anything about me. i would just die of happiness. >> well, he is a tremendous innovator. hillary is correct in that sense. i worry that, often not only putting his own money on the line t but taxpayer money as we, especially when itli comes to tesla. he paid that back. i give him a strong buy but i wouldn't buy the stock here.
i think it has run too far and too fast. melissa: it is pretty high. anton, buy, sell, hold or elon? >> i like elon. anyone thatlo gets characterized and make as movie based on his character with "iron man 3" is pretty -- melissa: that is pretty fabulous. you've got a strong buy on him. move on to jamie dimon. >> yes. melissa: this is somebody in the financial crisis, it was 8-800 dimon we trust. dimon is forever. every pun you can come up with. all of sudden we'll rip him down because he is too worshiped. one mistake along the way, if i say one more dimon in the rough at the bottom of the screen i will vomit. what do you think of this guy? hillary, buy, sell hold jamie dimon? >> another strong buy. jamie dimon will stay at jpmorgan and keep building this company where he has improved the balance sheet. melissa: right. >> he h improved the credit situation. melissa: right. >> the whole problem with many being too powerful and strong
and splitting position up that will be in the past as well as one blip with whale trading and risk management actually playing with the firm's money. melissa: they still made a profit if that quarter. >> jamie dimon is excellent at empowering management, at risk management and doing things like getting the government to pay him to take on bear stearns and he is i'm mine to any risk. the man is brilliant. if he doesn't say there he will go somewhere else and be more powerful. melissa:o jonathan, what do you think about that especially brilliant, leak on the side if you don't want me to be chairman i don't need to b be ceo. i will go away and do something else. i don't need the money. all of sudden everybody found religion thought it was a bad idea to screw around with this. you buy, sell or hold jamie dimon? >> buy. they would be crazy to let him two. he is a target. successful businessman and financeer, a target for everyone from government to newspaper headline writers. hillary once again hits the nail on the head. a terrific ceo and done terrific
forgr jpmorgan. wouldn't bet against the strock. as interest rates go up, interest margin for banks go up as well. it's a strong buy right here. on jamie a dimon?uy, sell, hold >> agree with hillary and john. 2008 crisis we're years away but how quickly we forget. the 2008 crisis was horrific. he was the beacon of light. his firm was considered one of healthiest of nine largest banks that received tarp. you can't look at the guy and his guidance. melissa: that was too easy for the group. stevie cohen. this is somebody he is either the greatest trader of all time or, you know, something less legal, depending on everything that is goinghi on. we don't know anything yet. but there's a lost controversy around this. so, you know, john, let me start with you. buy, sell or hold steve cohen? >> strong buy. 10 plus years of 20% returns in his hedge fund?
melissa: you're not worried where those returns came from? not worried about redemptions going on right now? you're not worried of him becoming a family office at best? >> i'm not worried you by think unfortunately he is made a scapegoat by insider trading laws which are completely nonobjective and arbitrary a tool of government to punish successful businessmen. strong buy on steve cohen and strong selluy on sec. melissa: okay. hillary, what do you think? >> steve cohen is brilliant. he created single-handedly a whole form of hedge fund management. even if everyone does redeem, he has $10 billion and he can go off and manage it. steve cohen is not marketer. he sits in front of his screens all day. i love that about him. i wish i had money with steve cohen. melissa: getting 3% at 50% of the profits. you don't need to advertise. you sit there and count your dollars all day. anton, what do you think? >> i will have to deviate from the group. melissa: thank goodness. >> if i was steve cohen i
be very happy 20 million inn1992 to 9 billion in 245 time period but the wake of problems taking place right now you can't ignore that of the part of looking who we will invest into, are they visionary, are they able to keep everybody in a good compliance situation and be able to grow and enjoy their profit, this one probably has low marks for me. melissa: we've got to go. real quick on last one, ron johnson. ron johnson, he had a fascinating, past, apple, target, tar jay. made it a hip cool place. total failure at jcpenney. some say maybe he wasn't given the time. isn't genius or was it all hype? we'll goal lightning round. anton, you go first. >> ron john is case study moving out of his strengths into an area he is not strong at. leaves apple with a very successful career and moves to jcpenney and maybein he was a little overconfident. maybe he felt -- melissa: give him a sell. see it next to you.
gave him a sell. hillary, what do you think? >> he is a sell. ron john. took 11-year-old firm in 17 months practically destroyed it because he didn't understand who his customers were. everybody loves coupons. melissa: go ahead, jonathan. >> the firm was in shambles. the firm was in shambles before ron john got there i call him a buy as well. melissa: happenings on. hang on. go. >> any company would be very happy to have ron johnson on their boared or ceo despite what happened at jcpenney. melissa: tell him he's wrong. >> you're wrong, jonathan. he had support of the board. all the money at his hand. everything ron jon's needed to be successful. >> less than a year turn around a company in complete shambles before he got there. >> he didn't get it. spent more time on his private jet. melissa: but he looked so happy in that picture we used of him. that segment was a lot of fun. we'll have another installment of our money version of buy, sell or hold, coming up soon.
up next how much is bill clinton really worth? is $500,000 for 45 minutes sound just about right? it has critics up in arms. who else can command that kind of cash? stay right where you are. at the end of the day it is all about money. the mo free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. i'm monica stiago of fidelity investments, and low fees and commissions are another reon serious investors are choosing fidelity. now get 0 free trades when you open an account.
s. melissa: now to putting your money where your mouth is. the jewish national fund was recently under fire over reports it was paying former president bill clinton a staggering $500,000 to speak for just 45 minutes at the june 17th birthday for israeli president shimon peres. think about it. that breaks down to $11,000 a minute. not bad. in all fairness the money wasn't going right into bill's pocket t was going to his charity instead. in the end the jnf did not pay the fee. it was paid for by friends of the perez center. the whole idea caused a stir in some circles it got us thinking about the value of big name and not so big named speakers. even if you love him, is bill clinton really worth half a million dollars for less than an hour? i spoke to our good friend,
marketing guru brewers turkel, who happened to be on the cover of speaker magazine, recently. look at that i asked him what he thought about this astronomical sum. are you staggered by this number and do you think because, i mean they are out there trying to raise charity. do you think donors, maybe woken like this so much, donors of the jewish nationalon fund. how do they feel about this, half a million bugs? >> first couple things. when have you heard about the jewish national fund? never? moneyypaying clinton got them big benefit. they're on national television. it is not a matter what he says. it is not a matter of clinton. a martie of exchange of value, people, companies hire speakers for two reasons. they hire them because of attendance ability. they can draw people. clinton can certainly do that. point.: great r provide content they can provide. that's why they hire me.
i don't get those kind of fees unfortunately. melissa: of course you do. >> if we gets people there to open checkbooks and builds reputation jnf wants he has done his job. clinton is catnip for journalists. when shows up, people pay attention. melissa: it is true but i feel they don'te need my money. if they can pay half a million dollars they don't need my thousand dollars. why do i send them $250 if they have that kind of cash lying around i can't make a donation meaningful to them? speaker's fee is not announced. you get program. doesn't have how much they're paid. says who is coming. the problem when money is paid to the wronge people. aten commencement, rutgers paid snooki $32,000 to speak which is $2,000 more than ttey paid noble prize winner tony morrison. she told the kids study hard but party harder. i don't think rutgers got their money's worth.on melissa: noli but they got loftr
out of it. you look at people, i wonder why people come to see certain people speak. billy d williams. maybe you want to hear him speak. maybe a lot of things. i don't know that i want to sit through a speech of his. tiger woods supposedly gets $200,000. i interviewed tiger wood. he is very tough to interview because he doesn't want to say a lot. he is not terribly dynamic in an interview setting. when you watch him, looking at him right now. when you watch him after a match they have to cut those things up, because he is not that exciting to listen to. the why would you pay him $200,000 to00 speak, to show up, maybe? but at and dinner i don't want o sit through his 45 minute speech. >> because in the case of tiger woods your organization attracts middle-aged, c suitett men. those middle-aged, c suite men play golf. best thing they do in the golf world is meet tiger woods and listen to tiger woods. it is all about the ability to
attract attendance. tiger woods, guys like clinton, gore, bush, alan greenspan, they get those kind of dollars. melissa: how about elizabeth berkeley? we're looking at her on the screen. she probably gets $10,000 to up to give a speech. >> i can't imagine why anybody -- melissa: do you know who elizabeth berkeley is? >> she was in a stripper movie years ago. i can't imagine anybody would pay to see her if she was hot, i don't even know. melissa: hope i command a half million dollar fee for my next speech. let's see. we can always dream. next on "money," does the summer heat have you wilting? how does a dip inside of a pool in the middle of new york's east river sound yuk. one way may be coming to the infamous waterway. does raw sewage protect your skin from uv rays ? i can't remember. you can never have too much money
melissa: you know what time it is. tile for spay change. we had a -- "spare change." we had a lot of fun with resident dream team, monica crowley and adam shapiro. we started off on a topic everyones loves, angelina jolie. angelina jolie announced that she had a double mastectooy. the actress said it was preventative and decided to do it after finding out she carry as gene which increases your chance of developing breast cancer. jolie made the announcement in an effort to inspire other women
fighting the disease. everyone is talking about it today. do you think the message is successful? this is a money show. wend spend $16.5 billion a yearn prevention and care. we spends less overall probablyi would think. >> no, i think this is really important message, especially for women although men experience breast cancer too although not at same rates as women. for somebody like angelina jolie and so dynamic and gorgeous and known for her physical body, beauty, sex appeal, to say look, this was my medical choice. i made it my mother, in her case her mother died very young at 56 because ofo breast cancer. when she found out. everybody has the two genes, the braca1 and 2. when there is mutation and a lot has to do with hereditary stuff and genetic predisposition, when the 1 mutates it becomes much more difficult to treat those kinds of cancers. she was on track for this.
she is saying, women, if you can afford it, a lot of insurance companies don't pay for it. >> that's a good point. >> loft tests are very expensive. a couple hundred to $3,000 for this test., if you can afford it. if you have this kind of genetic predisposition you should really be tested. melissa: adam, doesn't that become a big issue when we talk about this. there are all the preventative things you can do not in tests to see where you are, no matter what cancer you're talking about but they're not always covered by insurance. >> not always covered by insurance. you were t talking about in this case where they do the preventative mastectomies, it is because,, i knnw three women who have done this because their families have a history. that is the big thing doctors always say, if you have a history in your family, genetic predisposition you go forward. it is going to be more of a burden for a woman who might not have the financial ability right now if their insurance doesn't it.r i don't know't if obamacare covs this going forward. we're still trying to figure out what obamacare is really going
to be doing so. melissa: move on to something a hope. lighter i this is interesting one. france wants to start taxing smartphone, tanlets and internet linked devices up to 4% of the sale price. thee revenue would fund, art, film, music, to protect france's quote, exceptional culture. >> pepe, la pew. melissa: what do you think this impacts has. >> does the french want to tax themselves out of existence, it's a- money grab. french film, have at it. be real careful because the devices allowing you to stay in contact and at the same speed as as the rest of the world. >> this is so french and so social it. the president of france, hollande is a social it. when i was reading story said they would levy the smartphone tax as a way to correct imbalances in the digital
economy. this is another shot at wealth redistribution and class warfare. >> except if you take it to its extreme, what they want to do is make sure people don't pirate digital content. so companies like ours, which produce content which then gets put on, youtube which might steal it, technically the devices onv which you're watchig it would be paying for us to create content that is what france is about to do. melissa: interesting. here is one sure to make a splash. three young entrepreneurs are trying to raise a million dollars. here in new york city to build this floating olympic sized pool in theo east river. the water would be filtered from the chemical-ridden reese river. so far they have raised $41,000. i can't even believe that. wow! who wants to go first here? what do you think? yuck. >> this is private sector in action. if they can raise the money, they're not looking for taxpayer dollars. melissa: that's a great point. >> they say thee need about a million to make this work. if they can raise the money and
get investors and make this idea work, more power to them. should be up to the free market to decide. should people invest in this or is this good idea. melissa: i don't want to get any close toward easti river. >> i run or walk over there. melissa: nowhere near letting it splash on you anyway. >> they brought over pools there. they brought over a pool that the kids were able to use. melissa: and it degraded? >> no. filtering the water, it will have emmedical brains to do this, to help the river. 500,000 gallons of water a day. no way you can clean up the east river at 500,000 gallons a day. be careful with your money if you're investing. melissa: wow! hipsters beware, 20% of the americans should you should be taxed just being hipster self. they think the life choices they should pay for extra tax. i'm not in favor of anyone
paying extra tax. are hipsters so irritating? >> they are pretty irritating. say the story too loud because the obama administration could levy specific taxes on business anchors. melissa: they're trying to tax conservatives. >> exactly. >> would bedy silly to tax peope because of the life choice there but, you know, today's hipsters 20 years, tomorrow's six-figure income salary with two kids putting them through college. they will not be hipsters too long. melissa: before we go, taco bell is testing out new waffle taco. scrambled eggs, sausage patty and side of syrup. could this be as big as the tacos? >> it is huge. melissa: i love it. >> no, i need guacamole. melissa: that is all the money on this 4th of july. we'll see you back here tomorrow. enjoy the fireworks. tonight on