Skip to main content

tv   Cavuto  FOX Business  May 3, 2014 6:00pm-7:01pm EDT

6:00 pm
>> what a week. first, we learn that china taking over as number one economic power in the world, then we learned that the administration may have misled us about benghazi. only 67% of obamacare envoys have actually paid for coverage. tonight, if the white house thinks this job report is going to erase all that company may have another think thing coming. i am david asman and four neil cavuto. all they we have been hearing everyone celebrated new jobs numbers. but we are digging in and
6:01 pm
finding out that things are not as great as a lot of democrats are making them out to be. the unemployment rate dropped dramatically to 6.3%. that is because less people are working or looking for work. a lot less people. smith has more on why this is nothing to celebrate. >> thank you for having me, david. these numbers -- it wasn't a bad report, but it wasn't a good record. we increased -- rather decreased by 806,000 jobs. and if we keep up this path we are on, participation rate, if we get it down to 10%, we will have zero unemployment. these numbers are ridiculous. we are using data points to dictate policy. that means the data point is no longer of any value. so to say that this president has brought the unemployment rate down to 6.3%, it may lay
6:02 pm
well politically, but it's doing nothing to help this economy. many viewers don't elicit the first quarter of 2014, .1% was the first quarter come in at the 10th of them were% growth in gdp. david: i said the bad stuff isn't just about the weather. let's bring in our fox biz all-stars. charlie gasparino and gary smith. okay, charlie, the labor force participation rate is back down to 1978 levels.
6:03 pm
>> the bond market as of today, yields are going down and this is a slow growth economy. so slow that a bullet in. >> i'm wondering when the american people do this number, they see the overall number going down to 6.3%. will they buy in to the white house message that this is all good? >> no, we are smarter than that. manufacturing is disappointing, tech jobs are disappointing.
6:04 pm
and americans are finding that they are having to move to have any opportunity at all. so the unemployment situation may be moving in the right direction but it's really quality over quantity and we are not seeing that. >> all of those folks, i think this is the second largest drop in labor participation rate we have seen in years. >> i wonder why they keep using this unemployment number. and why don't you think it's 5% or 4%. make it a because it doesn't matter to the average american. and we are one government mandated program away from a recession. and health care was the only sector that was up.
6:05 pm
>> so let's talk about that. i mean, that is a dubious thing. >> just. >> but we all agree on that we could be going a lot faster than we are. so how do when we get back into it? there are a lot of businesses that could grow if they were given the right incentives. >> a chilling dollars a year, it is a trillion dollars here or there. was the difference? there could be things that are done. i would be curious to know how charlie else about it. the four major banks are bigger than they were before. i think there are in more trouble than they were before. i don't think jamie dimon has a
6:06 pm
clue what the risk is playing with right now. >> i agree and i had a conversation almost two years ago with him. it was about the trading snafu and some people would say a scandal. and he didn't have any idea just how bad it was. and the that we screwed up here. but it's not illegal. i don't think that we did anything illegal. ambassador problem is that you're running a bank. you, being the best i can manage it. and so we had to do this statement. so here is the downside of these things. we face more capital requirements. and i think that is having a drag on the economy. >> i would like to get laurie in
6:07 pm
here. she's too young to remember. but there was a general malaise in this country at the end of the carter administration. people just didn't see any chance for real growth. >> we have had the sluggish economy and this includes the lack level crisis job situation. and so i think we are over using that. >> there are protests in all of these cities. i don't want these occupy wall street said, they are out of work. they have nothing to
6:08 pm
>> they're being organized and i reported on that. >> i will live with that title. thank you so much from it's good to you and we appreciate you coming by. companies saving big under obamacare? is that good news or not? someone has to pay and that burden could shift from corporations over to you. and as far as the media is concerned, why republicans already are at a disadvantage. already are at a disadvantage. that is coming up next. [ female announcer ] this allergy season,
6:09 pm
6:10 pm
will you be a sound sleeper, or a mouth breather? a mouth breather! [ whimpers ] how do you sleep like that? well, put on a breathe right strip and shut your mouth. allergy medicines open your nose over time, but add a breathe right strip and pow! it instantly opens your nose up to 38% more. so you can breathe and do the one thing you want to do -- sleep. add breathe right to your allergy medicine. shut your mouth and sleep right. breathe right.
6:11 pm
david: the media is celebrating. a new report showing the companies are saving $700 billion because of obamacare over a long period of time. it but is that good news? the reason companies are saving money is because the burden of coverage is going to be shifting to employees and taxpayers. so eventua the workers will
6:12 pm
be paying out. over two austan goolsbee. some people see this as a corporate bailout of sword or the corporations will be talking about this and employees will be paying the cost. >> okay, if that is put onto taxpayers come i agree. but it's worse bear in mind that this has been a 20 year trend that companies went up and up and had shifted to higher co-pays and things like that. and there are a lot of analysts who think that that has been one of the reasons why overall health care prices have been rising the slowest in 50 years over the last couple of years. and so you can't really attribute it to this. >> on the other hand, it is true that a lot of corporations have
6:13 pm
been tired for years for having to pay the cost and they would be relieved at not having to have all of those specialists focusing on their employees health care. >> yes, i agree. that shift to the higher share of the cost being born by the employees is a twenty-year shift. and it's true that that has continued in that has been going on for 20 years. david: there all sorts of studies come in the same study that is quoted in "the new york times" saying that by 2020, about 90% of american workers who now receive health insurance through their employers will start getting it through the exchanges. we are shifting it from their responsibility to the government's responsibility. >> and it's not really their responsibility. all of the health care that you
6:14 pm
purchase there is done in a private market and it's not as though that is a public auction or government provided health care. but it's worth bearing in mind that there's one good day if we shift away from employer-sponsored care for the majority of people. which is as you switch jobs right now, if you want to start your own country or be the next steve jobs or something like that, once you're out of this, you can't bring your health insurance with you. if the exchanges are working well, you would be able to get health insurance and so there is an advantage. >> and by the way there is a peanut gallery in the background. and i want to bring them in. >> with all due respect, you
6:15 pm
know, what's it called? the affordable healthcare acyou know, what's it called? the affordable healthcare act. what is the name of the monstrosity that we are dealing with? >> the affordable care act. >> okay, think about it. the thing that they call the affordable care act, one of the chief architects, they can see that it's not that affordable and they basically said that you guys, with this act, would reverse the trend over the last 20 years were employees have to pay more. but that is not working. one of the main reasons that the public was told about that, that this thing is a good deal, is admittedly not working. >> here's another thing that is not working. and that is choices. people have a lot fewer choices already than they used to have. we know about a lot of old that lost their plans. and now we are hearing specialty
6:16 pm
clinics like sloan-kettering saying that they're not going to receive patients are part of these exchanges. so that is a cost. we cannot put a dollar figure on it. that lack of choice is a big cost. >> you guys have two different things going. on your point, david, if there are dramatic reductions in choice, that should be added. but most of those are anecdotal. and there are a great many people who have far more choices than they have what. especially because they have so many people be able to get insurance so if you are sick and had a heart condition, if you're a kid that had cancer or some tragedy early on so that they weren't getting their lifetime cap, there are those cases.
6:17 pm
the and we have less choice and more choice. it's a pr disaster more than anything. because people are trying to sign up for it via the obamacare website as they are getting billions of dollars that could be looking at billions of dollars in subsidies, and that's just not good. >> just a couple of points, it wasn't supposed to be affordable but better than affordable because i thought that a family's premiums were supposed to go down. and somehow that has been lost in all of this. and her people actually able to sign up in obamacare now? >> the net is the question. they gained a million, but how many did they lose? >> look, this cost with $2500
6:18 pm
less than it would be without obamacare. and this includes the health care cost inflation rate to the slowest in 50 years. and it's a model of free-market enterprise as well. >> you said at the free-market thing. >> we get along very well. but you can't quote toward $500 in this way. >> charlie can come and you can quote what he wants. >> i just don't know how can the free enterprise. >> ladies endowment, we have to leave it at that. jobs are back, so is the economy. we have the proof that we shouldn't be buying what the shouldn't be buying what the white house is
6:19 pm
6:20 pm
6:21 pm
the performance review. shouldn't be buying what the whthat corporate trial by fire when every slacker gets his due. and yet, there's someone around the office who hasn't had a performance review in a while. someone whose poor performance is slowing down the entire organization. i'm looking at you phone company dsl. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business
6:22 pm
built for business. david: this is all the proof you need. only four or five innings closing this year, it's only may and this sixth bank has already closed. this banker says that community banks are very much still in trouble. our all-stars are with this as well. so what is happening here with these big closures? >> it's very difficult to make the profit that they are accustomed to. which are funding the fdic by the bank closures and it's all the banks. >> of all the things, the fdic,
6:23 pm
but these come everything else, what is the most harmful for banks right now? >> it is across the board if you add up all of those. and then they are reluctant to lend and they're not sure what to do. if you are a small bank, there's just not enough scale anymore. and either you write it out or there is going to be a higher degree of consolidation. maxim people say it's what we need in things. or is this going to spell out in a negative way in economy? >> i wouldn't mind consolidation if we didn't have this, and we've overused it, the banks that are too big to fail. when you have these consolidations, things should be allowed to say that okay, they made a disastrous mistakes and they go out of business. but that is not how they want it. they want to make sure the bank of america stays alive forever. so i can understand michael's
6:24 pm
point. not only is he hiding the vast resources of the city banks of the world, but with one arm behind his back. >> i remember when they were touting dodd-frank. they said that this was the end of too big to fail. >> the market says they are lying. look at what the cost is for citigroup, bank of america, jpmorgan versus this date in omaha. and so when you are considered systemically important as those they banks are, it's a lot lower and it's much more easier to compete and by the way they do compete in those off markets. they compete in rural areas. jpmorgan chase is all over the country. for them to compete with the bastille that it has, it is
6:25 pm
almost impossible. >> banal and his arms are tied behind his vac. >> that has to be somewhat of an improvement. >> they have improved and we have over 300 banks and they are still going on. and i think that this number will easily triple in 2014. but one thing to notice is the average size of those vents is $132 million. >> what you think about the big bang? do think some of them should be allowed to fail? >> or should have failed. >> but they are still being a
6:26 pm
part of the government. >> maybe there should be segregation, maybe not as it is they are, maybe break them up into certain pieces. but they are a lifeline or our economy. so we have to very careful how we deal with them. and we have to take away the systemic risk. >> there's two ways of looking at it. bank of america, which was going to fail, lehman brothers failed. citibank would've failed. the only one left within jpmorgan. book of you would've failed. and so those smaller community banks would've been able to take over that. but could we have withstood the immense, of the global financial system? >> would our system survive
6:27 pm
without it? >> i tend to think that it would. but from a practical standpoint or a psychological standpoint, it gets right down to her people panic little good reason. and that is such a tough call, you call the administration makes. >> i think a short and sharp depression, and who knows how short it would have been, but something to mitigate with policies and fiscal symbolists that actually works. would that have mitigated the length of this? and are you can -- confirming this? >> we have taken this and turn it around and are making money now.
6:28 pm
but it's hard and i worry about a lot of the smaller banks. >> thank you very much for coming in, michael. coming up next, the presidential election two years away and the media is already calling the winner. but it is not a republican. also set your dvr this monday at 9:30 a.m. liz claman will be interviewing warren buffett. only here on fox business. only here on fox business. single
6:29 pm
6:30 pm
my dad has aor afib.brillation, he has the most common kind...'s not caused by a heart valve problem. dad, it says your afib puts you at 5 times greater risk of a stroke. that's why i take my warfarin every day. but it looks like maybe we should ask your doctor about pradaxa. in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stroke. and unlike warfarin, with no regular blood tests or dietary restrictions. hey thanks for calling my doctor. sure. pradaxa is not for people with artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke. ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure.
6:31 pm
pradaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding or have had a heart valve replaced. seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners... ...or if you have kidney problems, especially if you take certain medicines. tell your doctors about all medicines you take. pradaxa side effects include indigestion, stomach pain, upset, or burning. if you or someone you love has afib not caused by a heart valve problem... ...ask your doctor about reducing the risk of stroke with pradaxa. david: the media is rooting for hillary. when the white house press corps said 58% believe that hillary clinton will be the next president. in second place, way down, jay bush, jeb bush, he only had 6%. with the media already thinking
6:32 pm
that her fetus the old, dd says this is all the proof that you need. there's no question that they are more democratic than republican. but compared to the obama fervor. the collective thrill, it won't be quite that much more exciting, as it? >> look at what jay carney dead. he was a carny and she's got a mess on her hands. look at what clinton said. look at what she did. >> in what way? but what lott did she break? she may have acted poorly, but
6:33 pm
why? >> if that is the case, we don't know. and it is a serious issue. and so already we know a lot of cover-up. and she is just as bad as nixon or clinton. >> we want to bring in our all-stars. she has to actually understand. it looks at the foolish things. >> but where is the leadership in the republican leadership? what is the phrase that we use? tingly in the spine? and start the process. >> i'm not disagreeing with you. but maybe the republicans can just counter with somebody
6:34 pm
there. >> they are asking the question who do you think will win. >> but you don't have anything back there at all. >> they are asking the question who we think will win. i think you have to say 50%. >> we only have one more thing. >> you are cutting me off. >> we all know that the media has been more democratic than republican. >> absolutely. i think the reason is clear. the democratic are in, if you will, as we should raise taxes and easy to say, okay, we're going to increase social security payments forever. that is why the democratic land is isn't easy push and it takes a real salesman and marketeer like ronald reagan to sell the republican brand.
6:35 pm
quite frankly i don't see another ronald reagan charismatic person. >> then you are agreeing with the media. >> they are saying that they think it's going to be hillary. so if you ask the media how many of you guys and gals are going to vote for hillary, it would be 95%. but that number is accurate. she is the leading candidate in the strongest candidate right now. >> yes, she's going to bed this going. >> i like to bush, but i don't think it will be him.
6:36 pm
>> is but soberly, why is there such a percentage for hillary. >> she is the only democrat running. >> do you think that the benghazi thing, but they are eventually going to be the stumbling block. >> to the average. >> clogging up traffic. david: maybe grover norquist is on to something.
6:37 pm
♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪
6:38 pm
6:39 pm
6:40 pm
david: it looks like grover norquist started a trend. now we have an anti-amnesty group that is working in anti-immigration, looking to get republicans were against him this week to go on record or it looks good to the man who started it all, grover norquist. >> what they missed was this has been out there for 25 years. it is a single sentence. it is what elected officials or congressmen and senators and governors and presidents signed and it's to the american people. not to me or to americans for tax reform. saying that it's a signature and a commitment to the american people that they will vote against and oppose efforts to raise taxes. no net tax increase but it's pretty clear and simple.
6:41 pm
90% of congressmen and senators have signed it. we have 14 republican governors this year. most republicans have signed it and it has been endorsed with independents and many democrats who agree. except for a handful of tax individuals who benefit from it. >> every republican can be shamed if they suggest raising taxes partly because of what the first president bush did when he did raise taxes. where as immigration, you had republicans all over the board. and if jeb bush is a republican nominee, the anti-amnesty pledge goes out the window. right? >> yes. but this is two pages long. it is a series of sentences and filled with words like amnesty. it means whenever some group says it means. this is in opposition to a farm
6:42 pm
worker test program and you are promising not to be in favor of what all of the high-tech communities in the united states desperately need, which is to bring more high-tech talent into the united states. so you are spinning outspoken valley and the farmers and are telling everyone who has a relative overseas that they can't show up and it is not just one issue but a series of issues among republicans and independents. so have of the tea party people couldn't even find us. >> let me bring in the panel. and i have a sister-in-law who is in the prologue and has been trying to come into this country for seven years in this process. she's been told to do it illegally. and she's waiting. >> immigration is one screwed up thing. like microsoft's need for engineers on the same category
6:43 pm
as unskilled labor, which is what essentially that they do and it screwed up. it's screwing up our job market. these things that you sign, it just rubs me the wrong way. >> they always backfire. and they backfired on grover norquist. then they allow a tax increase recently? >> let's be very clear. the pledge is very simple and also very easy to understand. the reason we have the requester is because the entire republican leadership and the tea party republicans and percentages of the members of the house and senate that we are not raising taxes. unlike the immigration issue where they have nominated the most, and the one time george
6:44 pm
herbert walker bush walked. and so we haven't had that. >> do we have anything to take away from the policy debate. but let's face it, john boehner sign onto your pledge. and i'm sure that he did. he voted to raise taxes. know w. >> don't get this upside down. and this is what obama tried to do to people. and all of the tax cuts lapse and they went away what speaker boehner and mitch mcconnell did is 90% of them were raised.
6:45 pm
>> we have to leave it at that. thank you so much. coming up next, benjamin netanyahu is riled up again. we will give you this story when we come back. [ female announcer ] who are we? we are thinkers. the job jugglers. the up all-nhts. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can s, "i did it!" ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours. turning dreamers into business owners. anbe a name and not a number?tor
6:46 pm
scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: scottrade- proud to be ranked "best overall client experience." humans. we are beautifully imperfect creatures living in an imperfect world. that's why liberty mutual insurance has your back, offering exclusive products like optional better car replacement, where if your car is totaled, we give you the money to buy one a model year newer. call...
6:47 pm
and ask an insurance expert about all our benefits today, like our 24/7 support and service, because at liberty mutual insurance, we believe our customers do their best out there in the world, so we do everything we can to be there for them when they need us. plus, you could save hundreds when you switch, up to $423. call... today. liberty mutual insurance -- responsibility. what's your policy?
6:48 pm
the one in tonight's business split. you think that he would have bigger things to worry about. here is what the prime minister is ticked off about. [speaking in native tongue]
6:49 pm
david: it is nice to hear his voice cracking. to our all-stars now on this very big issue. >> some of these guys are taking photos that are called a selfie photo. and i've never taken a selfie. >> i think he is right, at the same time, this really seemed to tick him off. >> i thought that he sounded like my old cranky jewish uncle. i'm with him. and i think that it's me trying
6:50 pm
to talk to my wife. she understands everything that i have set. and gary, i think what is happening here is that ken is a great lawyer that makes it sound at first like he's all for the victim. but then when it comes to the details him and he figures out a way to tell the country. so what do you think we might. >> i agree, i think they will try to paper over the fact that heads should roll, including all of those that had to know that this was happening. and then they turn this over with money. which i think is limited when it finally is paid out. >> i think that paying people
6:51 pm
that were victims of this is just the beginning. that is a pretty cheap price to pay for this. what they have to worry about is the liability on the part of the board who is thinking about this and how far to go back. there's a lot of stuff here. if they can pay for it with billions of dollars, they will do it. >> remember when he was working for bp. at first everyone says he is just going to give everything to the victims because he was making it sound like that. but then bp did pretty well. >> absolutely. i think that he's come out of bp after the financial crisis and i think everyone agrees. but the fact that jim was shielded to pay out damages and they are going beyond that, this is a positive that for gm. >> issue number three, looking to get far away from the taxes
6:52 pm
in california. and pfizer is looking to get out of america altogether. >> companies move from california to texas august is and, you know, took me, i had to think about it for a minute, they have a much lower corporate tax rate. >> when i was growing up it was impossible to find a lower tax rate than the u.s. i mean, am i reading that right? >> yes, you are. >> i think the united arab is a higher tax rate. >> i'm just saying that this is such a bad trend and andrew cuomo, the governor of new york state, he spoke particularly when he was running for office about the shoe was taxes. >> but what has he done? >> aside from these ridiculous commercials touting tax free
6:53 pm
zones we have to be like a one armed midget is. >> the fact is that corporations, look at the bottom line, they don't look at the rhetoric. >> absolutely. kimco testified on capitol hill thing that we are not breaking any rules. to the content is a woman come in new york state, new jersey, maryland. they had a huge thing and everyone just walked out in droves about income tax in florida and texas. his. >> word is mentioned tim cook from apple, which has about 150, $170 billion overseas. they're not going to tax this, but they're going to spend over their purse is just the beginning, does you? >> absolutely. the fact is that it is easier by the day to do business wherever. and operate internationally.
6:54 pm
and this includes like jim did 50 years ago when you had to have access to the rivers and transportation is in things like that. it's easier for pfizer and apple to do business anywhere. i can't wait until it easier for us to do business anywhere in the world and we would probably move as well is. >> we had dozens of corporations is serious. >> get back to the media. i think andrew cuomo has not why but it's like a propaganda campaign about how new york state is lowering taxes for business when it's really not doing much at all. we don't see any worries in "the new york times" or the major newspapers here about how new york is still economically a basket case because of our tax structure and also because they won't crack. >> also because we won't see the exodus of this.
6:55 pm
>> republicans voting for him because he's such a great guy. but i believe that ken lives here. >> new york, new jersey, they have the highest tax burden in the entire country. >> thank you so much for coming. the numbers are in, and it turns out a lot of obamacare enrollees are not paying their premiums. the white house should pay attention to this because the twitter followers are furious. your reaction is coming up next.
6:56 pm
6:57 pm
6:58 pm
david: this is usually the time
6:59 pm
that neil cavuto reader tweets and e-mails. but we still want to give you a voice. a lot of you worried about the latest obamacare numbers. the fact that 67% of enrollees have paid their premiums. one viewer says only morons thought people would pay out. they would rather have their face look at than health insurance. and josh sarcastically ride him for what? i thought this stuff was free. i am expected to pay for insurance? i am confused. and texas is wait until fallen woman when people are shocked by their premiums going up. fill up on facebook says we are all convinced that this is a massive failure. but what we want to know is what is going to be done about it two people are drowning here. in case as they may not have paid. but it will be on your tax bill just like everything else. and judy says obamacare is not sustainable. ann writes in a people can't afford obamacare in our country can't afford it either. keep those tweets coming in. don't forget liz claman's
7:00 pm
interview coming at with warren buffett. this monday at 9:30 a.m. on fox business. >> china, drones, bombs, syria, constant threats. it is a mad world out there. the globe is always in a state of flux. shipping allies and an emotional downturn. the united states used to be the frugal been unwilling grampa hands out good advice and some nukes when needed. but now we are fumbling through a global identity crisis and are we in any position to fix this? or is it time to charter a different course that doesn't necessarily and in domination? it is a mad world. that


info Stream Only

Uploaded by TV Archive on