tv The Willis Report FOX Business July 30, 2013 6:00pm-7:01pm EDT
come on. come here. here we go. all right. that is all the "money" we have. come here. you will see you back here tomorrow. here comes "the willis report." ♪ gerri: hello, everybody. i'm gerri willis. tonight on "the willis report" social security disability payments skyrocketing. the entitlement program is broke the new report says most people getting a federal disability check are fully capable of working. also, the obama administration is frustrated with the rate of economic growth. and new fakes. just change how we measure the economy. >> cut our deficits by nearly half since i took office. gerri: the inside scoop on the woman who sued her credit reporting bureau and $118 million. the case could be a big win for all of us. we're watching out for you tonight on "the willis report." ♪
our top story tonight, millions of people choosing to stay on federal disability benefits, even though they are fully able to work. now, that is according to a blockbuster story today in the washington examiner. the news comes as the social security administration publishes the latest figures on the number of americans drawing disability checks. more than 76,000 workers wwnt on disability just this month being the total this year alone to 534,000 altogether a record 11 million people trying a federal disability check. but clearly some of them should not be. with us now an investigative reporter for the washington examiner who uncovered these new numbers and will tell us about them right now. thank you for coming on the show. how did you find these numbers?
tell me some of these surprising facts. >> in 2009 the federal government was making a push to get some of these people of the disability rolls and get them back to work. they did a survey. they found that they did not have any. you ask these people why they are on disability and a lot of them said it is also much that i am disabled but i can't find a job. so then the next question to ask is, what have you done to find a job. and virtually none of them said that they had contacted employers, elected job ads are done anything. the other thing, okay. you're disabled. have you been to a doctor? virtually none of them had visited a doctor. very few have ever undergone a medical procedure. him. gerri: let me show our viewers some of the numbers behind the research. there are two kinds of people on disability, those who are workers and those who have never worked, and a lot of the lawsuit have never worked awfully disabled, some having real
problems. take a look at 71 percent of those who have worked say returning to work is not a gold. 60 percent of non workers say returning to work is not a goal. these are extremely high numbers. this seems to me to be a way of life. what do you say? >> it is. and unlike other entitlement programs like welfare, there is no time limit. you look at these people who have not paid and, of them have never worked a day in their life. on food stamps, medicare, medicaid to all of which can help cover expenses, but they are not on welfare because they're is a five-year time limit, which is exactly the reason why we're seeing some of the growth in this program. gerri: unbelievable. another startling fact your research. 72 percent of these recipients started back-end of the table. so they're getting the federal benefit, many of them, the majority of them. also getting paid. this is really a scheme.
it's a scam. >> well, there is an incentive to take part-time jobs or you can get paid over the table. working enough hours that you don't cross the limit where you become eligible. these people working. i talked to people who say that they intentionally limit the amount of work that they do so that they can continue to collect this check. >> i know from your research what you found is a lot of people don't want to go back to work because they will have no health care. of course that will be true down the pike because of obamacare. this seems that this is an easy way out for a lot of people. what does it do to a program that is really broke anyway. >> well, everyone who is on this program because they don't want to work disarming people who really which honestly looks like it is a pretty small component of the program. but, you know, it is not intended to be an unemployment program, which is exactly what it has become bad.
the determination and hinges on whether you're able to gain a job as your health condition. so if you are overweight in have mobility program to the problems now, you are not disabled because you can sit at a desk. whereas some what they consult this book that has not been revised in decades. looks of the availability of jobs for people without college degrees and a high-school degrees. and 43% of the ssi recipients don't even have that ged. the only thing you can do is work in a factory. you're not in top shape your disabled. gerri: a very broad definition. the numbers of disturbing, and seeing more and more people on government benefit. a lot of taxpayers out there say it has to be a different way. thank you for coming on. >> thank you for having. gerri: when it comes to our economy, sizes a big deal. uncle sam unveiling a new calculation to make our economy
hundreds of billions of dollars bigger. but is it just a big fat lie? joining me now, former adviser to reagan and founder and chairman. welcome back to the show. always good to have you. >> wonderful to be here. thank you. gerri: i read this story about the revision to gdp. massive ongoing years and years and years going back. you say not that big a deal. >> i don't think it's a big deal. it is an academic exercise. they do it every four or five years. they go back and revise it and tried to give more data. they also tried to use better concepts. then they have done a pretty good job historically. on the with the revisions will be this time. very straightforward. gerri: 400 billion. i mean, that me ask a question. the me ask the question this way. every time they have a revision whether it is the gdp horton the jobs numbers, it always makes things look better. but.
>> the jobs numbers and not going to comment on. by the way, your last interview was good. gerri: playing into this whole conversation. americans are not working. the unemployment checks and disability. >> i don't understand that the attention paid to the revisions to gdp to be honest. it will raise gdp. it is that going to change the growth rate. won't change what actually was. one change the fact that the last term in office in obama's first german office were abysmal and ruined the country. it is not going to change any of that. we all know it is a really terrible -- gerri: the devil is in the details. look at what they are doing, and this seems to be cheating. spending will become a part of gdp even though not every product you research becomes a blockbuster.
and then money spent on our. that is part of gdp. maybe you should count empty toothpaste containers. >> you're not old enough. at think music and stuff like that, photography. it's all garbage. if they like the beatles, the like michael jackson. all they're doing is capitalizing those instead of saying they are inexpensive. what they're doing, you have a housing expense, and transport costs. instead of making that and express their will included in the value of a home. by the way, there is one really good one that you will love. they're going to the unfunded liabilities of pension funds for defined benefit plans. and that is for good. gerri: you like that? >> i like the revision. it shows the unfunded liabilities and the real problem if we have really understood all of this we would not have
detroit. >> it shouldn't. at is exactly what it is. they capitalize that. these people recognize the unfunded liability. talk to jerry brown about that. governor quinn. gerri: every governor of every state there is. let me tell you what i'm really worried about. >> except tennessee. gerri: good point. >> thank you. here is what i am really worried about. ms. making. no, it's fantastic. all this hard and all the stuff we are researching. at the same time i think a slower times are around the corner. growth and earnings, not great. lots of things on the downtrend. housing may be on par, but it has a lot to do with inventory
the fundamentals of the market. >> exactly. what you're saying is exactly. this is not a good economy. i don't care what numbers that put in there. this is a terrible economy. has been terrible for a long time. we lost a group of overpopulation that has not had a job in seven, eight, nine years. we ought -- you are exactly right. the second worst recession. it should be the fastest. it's not. is because of the obama policies, stimulus. gerri: can you remember when you come out of recession and you have 5 percent growth? >> i remember only had 89 percent. gerri: those were the days. not counting our indian gdp. come on. >> the good days a going to come
back. promisee it. gerri: i love that. at love your optimism give the glass half full been known death -- the data. log on to gerriwillis.com. vote on the right inside of the screen. it will shed a result of the end of the show. still ahead tonight, congress does not want obamacare. we will be speaking to a senator about that next. more great news on housing. why some people think you would be better off renting. that question and a lot more coming up. ♪
gerri: the passed obamacare now they don't want it. getting nervous when lawmakers and staff have to go on obamacare insurance exchanges, especially since it is unclear whether there will have to pay and a pocket for a hefty premium with more republican senator chuck grassley of iowa. welcome back to the show. good to see you again. this was your idea and now everyone is mad. what is going on? >> i suppose everyone is mad because quite frankly they
believe that we ought to be covered by different insurance them what the rest of the country is covered by. i have been involved over my career in the congress of giving a lot of laws that congress has exempted itself room so that we are covered by them and covered by those laws now and lately obamacare came up. my constituents said to me, well, if it is good enough for you why isn't it's good enough for you? so i got this amendment adopted. you want to remember, my amendment was compromised in the secrecy of rees office when he was doing other things to the bill after they came out of committee. i had all of the congressmen and all of the staff of congressman on the hill covered while he -- he eliminated from that amendment of mine staff. so it is about 80%. gerri: i understand that. the big guy is safe and does not
have to live under the terms of law let the rest of us. it is unclear what will happen. the rule is being written in washington somewhere. what do you think the resolution of this thing will be? do you think -- do you think these people will find a way out from under this? there are looking hard. >> i don't -- i think it is going to be difficult. the way the law is written. i think that it will be that people have to go to the exchange. people on capitol hill will have to go to the exchange, just like everyone else. but who knows. there could be some way, and i have had -- i have heard of some conversations of people trying to get out from under it. at think it is -- gerri: unbelievable. they have no shame. pass a law, don't read it, don't want to live under the terms. i want to change the topic to something that is close to your heart. the pay for delay legislation
that you have been introducing. essentially simply about brandon pharmaceutical companies paying generic rivals to the delay the introduction of generic drugs that will compete with their own drugs in the marketplace. you know, you don't want to see these pay for delays. it could save consumers some format billion dollars. what is the status? do you have a chance? fixing this problem for consumers. >> of course it is difficult to take on big farm on the hill here. they have a lot of support. i think there is a principle here that is pretty sound that is in our favor. that is, you have a 20 year -- a 20 year -- i forgive what you call it. at 20 years exclusivity lease. this extends. so you get continued higher prices. a patent is what i am thinking of.
so when a patent runs out it ought to run out. by extending the patent with these pay for delay been you are keeping consumer costs of. when the federal government pays for a prescription drug obviously it keeps the taxpayers' costs higher than should be. we are trying to be pro-consumer , pro-competitive, let the law and do what the law says, encourage innovation by the patent. when the patent is done it ought to be done. you should not have subterfuge to keep it going. we had a good supreme court case that said this might be a violation of antitrust laws. it got remanded back to the courts to make that decision. so we want to give this legislation so that there is no doubt that when a patent is up it is up in the price up to get generic in the price go down. gerri: to remind people out there, of 85% more than generic.
you're saving money for consumers if you're successful. we appreciate you coming on. thank you for your time. >> inky very much. gerri: coming up, housing is hot, but how do you make a lowball bid on a house and still get the deal? inside information. credit reporting bureaus are about -- are treating americans with more respect and professionalism. one of the people to think will be here. stay with us. ♪
gerri: the housing market is heating up. prices surging across the ccuntry. posting some of the strongest gains in more than seven years. sellers are happy, but higher prices are putting buyers in a pinch. it is hard to do. joining me with tips to low balling the seller and winning. promising a lot. >> you are. >> personal finance. less talk about if you're trying to buy right now. you are up against a lot. >> you are. whether or not they will take your lowball offer depends on how motivated you are. you have to know what the motivations behind. do research. are they getting divorced, desperate to sell, to homes, trying to unload this. there are clues that you must look for them to understand. also, how long as the house spin on the market. sitting there in definitely the seller would be more motivated to entertain a low offer.
they don't want to go into the holiday season with this house singing over them. they would rather unloaded now. a lot of research. that goes without saying. gerri: fight for a square foot. >> a little homework on your end and then make an offer that is not going to offend them and presented in a way that is not going to offend them. gerri: if you want to lowball the best way is to make an all cash bid. that is the obvious way. with cash. >> ready to go. gerri: that's right. >> serious. you have the cash. no contingency. you can close and a couple of weeks. make it clean and reasonable. don't make it offensive. in some markets it won't happen. you mentioned the competitive market. in some markets it is not that good. gerri: you have the opportunity and can look for tiny clues. other boats in the closet or is it just one of them. these people are divorcing in
need to unload. it is not nice. >> and also what is happening is buyers are contacting sellers directly. knocking on their door. contracts on direct contracts, up 132% year-over-year in 20 percent of those who sold their home did so because the buyer went up and approach them directly and give them a sort of song and dance as to why they wanted to buy their house. with a poker face. gerri: california, people would write letters like my children want to live in your home. >> and in some cases that my work. gerri: whenever you need to do if you really want to buy the house. but that brings me to my next topic. is a big conversation right now. a couple of stories published recently slamming home ownership. the financial times saying the cult of home ownership is dangerous in damaging. to the cult of home ownership. what do you think of this? do you buy or rent?
>> arguing against home ownership is absurd. i am buying. you are for buying. and in most major markets buying makes better financial sense than renting. i mean, there was an analysis done and then 60 percent of the market zukor break-even, and then some less than two. phoenix, miami. gerri: growth areas. i want to pay myself. i don't want to pay -- >> right. some people would prefer to rent . transients, bouncing from one job to the next adjustability and would rather just deal with the landlord directly hen have the hassles of homeownership. it boils down to being a personal decisions. the time frame, the horizon. a lot of things. gerri: a lot of people make of the basis of that more is adduction pitbull the thing that will have a big impact?
>> some people want to buy and make it a plan to end of the people just bounce around. gerri: well, thank you so much. i am on your side. we have -- we do have a consensus. the blonde consensus. thank you. >> thank you. gerri: time for a look at the stories you're clicking on tonight. a new survey says consumers are sick and tired of bank fees and threatening to walk. consumers could gain 230 billion in deposits kaj 18 billion of which would come from citibank which was one of the worst of the offenders. more consolidation in the health care industry. community health and science health management. hospital operators are merging prompted by the affordable care act. the market is waiting for the final outcome of the federal reserve policy meeting. expected to further clarify its interest rates and when it will start scaling back the economic stimulus program.
chrysler is having a good summer strong demand for pickup trucks boosted earnings. also high hopes for the new jeep grand cherokee due in showrooms in the fall. some of the hot stories right now on foxbusiness.com. we have more. an oregon woman with a huge victory for consumers everywhere we will take you inside this important case. another big entry to our wall of shame. how do you charge a thousand dollars for something that is only worth $12. this company apparently did. all that coming up. ♪ weekdays are for rising to the challenge.
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major mistake on her credit report, they gave her the run around, she took them to federal court, and won $ 18.6 million. with us, baxter who represented her. welcome, great to have you here, justin, i start with you, a large verdict for this case. how diddy this come to award all this money? this is amazing to me. >> the verdict was 2% of equifax's net worth, jury was trying to send a message that would reach the board of directors, and ceo. and the investors. gerri: amazing, now, john, you and i have talked a number of times over years about number of mistakes in the credit reports, the credit reports that are essential for getting bank loans and a house, kids to college.
now 10 to 21% of credit reports contain some kind of error, is that right or should it be higher? >> credit report is also essential in getting a job, 10 to 21% of consumers have some forth of error on their report, the range because definition of error was variable. that seems to be the most reasonable figure of the three generally recognize credit file accuracy studies. a group said less than 1% contained errors, no one believed that and another one said 80ers, no one believed that, 10 to 21% consumer, not credit report, you take that number, multiply by 3 credit reports it gets large. gerri: a lot mistakes. justin, how did she find out about this error? was it one error or multiple?
>> equestion fax -- equestion equestion fax, merged her file with another person, with a different social security number, and different name, and she has good credit the other person does not. she was unqualified for a loan because of dozens of bad credit reports. gerri: this is too common. >> mr. boxe baxter is referringo what we have a mixed report, when they are happen, they are difficult to get corrected because of the merging or surge logic that bureaus use to place information on the credit report this under scores importance for
everyone to raise your hand, say i'm going to check my report, if i find something wrong with it, i am filing a dispute with the agents out th put them on noticf they choose not to correct it, there are people like mr. baxter out there who will put the hammer down. gerri: julie tried to get the company to change her report. i understand she tried eight times, what of there response? >> -- what was their response. >> each time she would contact equifax, he would call and write, and get form letters back, saying send us more proof of your identity. and she would respond, sending in over course of two years copies of her driver license, w-2 statement, her utility
bills. and she was in this echo chamber, she would send it in get another form letter saying send more proof. gerri: john, i want to say we tried to contact equifax to get a response, we have heard nothing yet. maybe we will later. >> surprise. gerri: i am not -- i am not that surprised. but we want to give them a hearing, if they want to come on show and talk about this, i'm happy to hear when they say. but reality from reporting that i've seen that the kinds of people who are listening to the complaints are all over the world. idea they understand what is going to here with consumer credit work the way credit is doled out, probably not? >> yeah, the reporting agencies receive tens of thousands of consumer disputes every day, not every month or year but every day. so, their effort to to try to
automate the process quickly. it works a large majority of the time, but things do fall through the crack, we're talking about human beings whose lives can be devastated, ruined. spend time, and money to get it corrected. i guarantee, you asked about credit file action advice study accuracy study, i guarantee. the consumer with the error, does not care, 100% of their credit respect reports contain . gerri: thank you for coming on. 18.6 million, thank you. >> thank you. >> you bet. >> thank you. gerri: so we're going to extend the idea, some of the biggest mistakes that credit bureaus make is so night's top 5. outdated credit history, iin.number 4 outdated personal
information, credit reports contain simple errors like a wrong address or incorrect social security number, check those. number credit score, incorrectly reported too low, it is so important to your financial health, too often credit bureaus get it wrong. and identity theft, information on your credit report is a is not yours, check your report once a year, one in five americans never check it. and lastly, incorrect balances on credit card accounts, they are used to determine creditworthiness. make sure they are right. that is tonight's top 5. we have more coming up, some people still consider them the best investment in america, munibonds, but should you touch them after detroit's meltdown? stay with us.
gerri: if you are a munibond investor, and watching deet's bankruptcy -- detroit's bankruptcy thinking twice about the muni bond, here is rick to help us. >> detroit said it is okay to stick it to your muni bond owners, state mun is palties never would have done that in the past but they will now because they realize there is no penalty. gerri: is this going to catch on like wildfire? stockton, and every other california city, and chicago. >> why not? there is no negative implication here. there is no down side to the municipality. loumunicipality. gerri: muni bond had trouble but no carnage yet. >> not yet, you will see a sea
change, we'll see, the states and local governments stick it to investors, saying, if you really want us to pay you what we owe you, you have to negotiate the terms. gerri: i hate to see that happen, the people largely are retirees. >> and voters, they are local retirees, these days, they say, now a bond fund that is owner of this not an individual local resident. we'll see problems in the muni bond market that is why we don't like them. gerri: stay away, none of them? >> we don't see you are getting compensated for risks associated with them, so why bother. gerri: you talk about people chasing yield, you know retirees, people close to retirement. what are people doing. >> retirees want income and safely. they look at their bank cd that are paying -- >> nothing, i think you are paying the bank at this point. >> probably and retirees saying,
i'm spending money on spend pal else, a condition keep it up i'm going broke. mark twain said it best, an oil well is a hole n the ground with a liar on top. then 91 trade the reits, you put your money in wait 7 to 10 years to get your money back, hoping you get income on the way, the deals have been infamous for blowing up a lot of investigation by investigators, stay away from free lunch and free dinner seminars where these product are touted. gerri: i buy what you say, don't invest in this, but we're doing it? >> it is called diversification. there is no place to hide -- i hate being a brrken record. gerri: you are. what about yield? don't say cd. >> high today paying stock --
high dividend paying stocks, a diversified portfolio, you can generate income you want, without taking the risk that is usually associated with it. gerri: i like that idea. it makes sense, any other worries of wisdom for people who own treasuries in bond market. >> shorter term maturity. go 3, 5, 7 year, that will give you the protection incase interest rates begin to rise again. >> thank you, rick, great to have you on set. >> thank you. gerri: well, that brings us to wall of shame. jpmorgan chase settling with federal government over charges it manipulated electricity market in midwest and california, bank did not admit wrong doing but agreed to pay record $410 million fine to make the charges go away. this is a drop in the buck for the joerg versio j.p. morgan wh0
billion a year. they said j.p. morgan usedde its powe duped california electriciy officials in to paying$999 for a grid, the going rate is 12 buc bucks. on to our wall of shame, we pit jpmorgan chase, for settling allegation it rigged electricity, market in the midwest and california. there they are. wall of shame. coming up, your home is full of hidden dangers, the statistics will shock, that you is next.
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gerri: how do you do that? we're looking into hidden dangers in your home, the statistics will shock you, joining me now to hazard proof your home. tom, author of book, my home, my money pit, your guide to every home improvement adventure. i trust you on this i know you know stuff that the rest of us don't, walk through them, start with microwave oracle ven fires -- oven fires. >> 1700 fires over 7 year
period. what happens circumstance the fires start and actually in some cases glass doors shatter. one consumer's case caused $18,000 in damage, "consumer reports," reported that, you should watch out, the digital displays, if you see anything that looks quirky, the numbers don look right. that could be an indication that the internal workers are starting to fail, if your oven comes on by itself it is a problem. the small appliance like that, throw it out get another one. gerri: clothe dryer fires, i know this is a big deal, i clean out my lint. >> it is not enough, the lint screen we clean it. but the lint gets past that lint screen into the dryer exhaust
duct, most folks thinks it gets pushed out no, you have to pick up a duct brush, a small brush. with a fiber glass rod, we run it through pull it back up. you would be amazed, and have modern venting with metal. gerri: okay. so thing i'm worry about, built in 1933, wiring is old. >> yes, so with electrical wiring so many things that could go wrong, good news there is a new device on market, i have one here, arc fault circuit interrupter. arc faults stop fires, this detects any arcing in the wire this will shut down the entire
circuit. cover not expensive. and one of these covers, really smart, new to the market. gerri: would i just put that in every plug? my house? >> just one per circuit. one circuit vehicle a dozen ut -- could have a dozen outlets. gerri: great idea, we have talked about mold, sometimes i think this issue is over played. is it? >> i don't think so. since 2004, cdc connected mold with respiratory it is distressn otherwise healthy people, make sure our house is dry. a leak should be corrected by the way, mold needs air and
moisture, you can use a commercial product or bleach and water. gerri: love the old bleach and water. i think a lot of people think you know that mold grows secretly, but you can smell it. >> yes, some people can smell it. i don't know personally that i could say i have smelled it. we smell moisture and humidity in the area, one thing you never want to do is put carpet in the basement that like throwing red meat to lions when it comes to mold. gerri: talk about garage doors. it can be a tool of dist destruction. >> 20,000 injuries a year because of the garage door. you need to make sure if your door opener is older, replace
it. take a 2 by 4, lay it in the door, and close it, if it strikes it and comes back up you are okay, if not it needs to be replaced. gerri: thank you, tom. >> my pleasure. gerri: good stuff. we'll be right back with my 2-cents more and my answer to question of the day, is the federal government manipulates our economic data? stay with us.
that is a question on gerriwillis.com. 99 percent said they agree with me. 1 percent said no. be sure to log on to gerriiillis.com for our on-line question every weekday. finally, when it comes to renting or owning your own home we talked about it earlier. i am strictly on the side of ownership. some of the old adages still apply. i would rather pay myself and the landlord. paying rent is like throwing tgage deduction. which is not nothing surf. most of the naysayers are either people who cannot put together a down payment or folks who are so loose that putting down roots is unthinkable. i like roots, growing equity, and the idea that the more easy today is going to look like cheap money in the coming years. in fact, a home or other real estate investment now could be a great head in a market battling the twin devils of inflation and higher interest rates. buying a house the right way with money down is a smart
financial move, and that is my "2 cents more." and that is it for tonight on "the willis report." thank you for joining as serious enough for it to record a show if you cannot get to us live. have a great night. ♪ lou: good evening. thank you for being with us. president obama is preparing for a rare trip to capitol hill tomorrow. there he will usher senate and house democrats out of town for their summer recess. but it is becoming increasingly clear that this president desperately needs a vacation of his own. a vacation that is still ten long days away. today president obama headed to manama's on distribution center in chattanooga, tennessee. there he delivered the speech of jobs, the economy, the, -- of lisbon and he is sequestered and the keystone pipeline. take a listen to this jim