Stories you on the Senate Judiciary committee trying to understand how all of these vital customer Information Records could get stolen. Target come as you can see, was not alone. Is a 20 of other Companies Got caught up as well. Including in the market. And who knows how many more. Its easy to play monday morning quarter bak. And do these politicians not miss the opportunity. We need to do something more graphic. Lets see how the government can partner with private business. Losses actually have increased at a greater pace than that we need to get to the bottom of these breaches. Congress needs to act. Themerican retailing industry and its failure to protect. What worries me is that these are going to have use the hack attacks it suggests that are hacks willo too far following this cracking down of the cyberthieves. Collecting millions of american phone records and tax againand they get paranoid all over again. Just because the government can. That is what really worries me about this hearing and the hearings to come. They are about targeting eyes. And in the name of protecting us, once again snooping on us. I hope that im wrong, but i fear that i am not. The same reality is that these breaches have been despite all of the these security members that are very much in place. These hackers who compromised millions of credit a debit cards and so many others and to get even crazier and i am not alone because the judges worried even more. I was terrified when i heard senator Chuck Grassley who is a friend of mine and a conservative republican with even some libertarian leanis saying that he is looking for a government private industry partnership. We know that from what the nsa had gone to all of the telecoms and the computers. That government dominates and private industry works at the governments behest for no money at all or very low wages or the government is the one that benefits from this in the private industry. As he pointed out so eloquently a few moments ago, the nsa sees all of our Text Messages and emails and all of our phone calls are in all of our phone bills. All of our utility bills are in all of our bank accounts. These creeps can still happen. So what is the government going to do to protect us . Who has the real incentive to otect us . Someone who cant be sued when th fail at the government . A this has happened. We have all of these supposedly safeguards in place and it makes you think that they might seize upon this as an excuse to double down. You and i and everyone watching this right now live in the most surveillance of anyone has ever known in the western world. This is more than the kgb in the soviet union and more than that. It is more than this the surveillance that they have perpetrated on unonits inconceivable that more surveillance is possible, let alone would even stop this kind of a hack attack. These industries and retailers make a higher sum for young people that know how to install firewalls to prevent the hikers from getting it and then they will put another firewall in there as well. You are right about that. Republicans and democrats alike were almost reading from the same book today. People in the government, and this unfortunately it affects republicans as well as democrats, have this believe that they have to look like they are doing something. They have to regulate or tax or control. Because of a sit back and let Free Enterprise of what is the problem of Free Enterprise committee can go home and host of the voters in a look at what we do. So when is the last time you heard a politician Say Something like that. Neil thats a very good point. [laughter] judge napolitano, lets say that we dont want to spy on the whole nation. How do we go after the really bad guys snooping on us. Anyway, the former fbi cyberdirector joins us. So steve, over to you first. What can be done short of wholesale giving over of privacy . Well, target came out strong. They try to accomplish three things, which they did. They are apologizing to customers. They want to get back Consumer Confidence the second thing is that they wanted to make sure that when they did that they told the customers that we actually have had a lot of cybersecurity and keep in mind that target had actually been certified as compliant with payment card Industry Data security standard and i could tl you about him security regimes. But the third thing they sent those to your question that they want to read the cyberinitiatives fom the security. One of the things that they are talking about is the credit card devices but elves and how to end encryption and the potential for these high private and pblic partnerships that are not all bad and dont all include the nsa. But let me just give you one point. We have 50 states that have the own data breach reporting loss. So when a Company Loses customer information, it is ending it everywhere. And where they cant get one national law so that data could be analyzed together and well chatbased chipbased technology coming openness and it makes it more expensive to produce and how. But if we can be weaned off from this fine thing, all the better. That is actually correct when you talk about this what we see with the most recent breaches, you pay now or you pay a lot later. And that is where we are being a lot of the pay a lot later thing. Also at the issue of people. Particularly Large Companies have very welltrained chief Information Security officers and its never elevated to make these decisions. So the security people know if the technology has been fundamentally flawed. They know that more information gets stored than it should. But they cant do more to get much done. Neil when you talk to friends and family members, youre probably a first person that they go to to get advice on how they can avoid getting hacked. So what do you tell them . Well, i use the internet all the time for computer transactions and the good thing about being a regular consumer is that your bank will reimburse you and thats not the case or company is under Bank Regulation loss. And so in terms of Home Security you have to patch your system you have to make sure to updated and upgraded. But if you are out there going to websites that are untrustworthy, you have a problem. If you are reading emails from others, you can end up having this on the syem and you have to be careful. The biggest point i think anyone has read your credit card statements. Read your bank statements. Make sure that there are no charges or withdrawals that you are not familiar with. Neil what about you . Its interesting when you look at how this thing evolves. Even the past couple of days the Uk National Health Service was reportedly hacked. Not only hacked so its very difficult to tell people what to do and not what to do. The other thing is that the judge was talking about to congress, it i this will create it as a more Surveillance Society that we have. We have proposed to congress back in 2011 enhanced support for the fbi and secret service and also to bring up the criminization because that is what it is ultimately. A criminal act to accelerate the sort of penalties from criminal activity from organized crime, which is alsohathis is. I was worried about them going too far. So thank you both very much. Thank you. Neil bonuses at the irs and a scandal at the irs. Newsflash. These guys are doing it with our money. This is the quicksilver cash back card from capital one. Its not the juggle a bunch of rotating categories card. Its not the sign up for rewards each quarter card. 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Neil how can i explain this. It is like me telling you to eat a salad. The government lecturing companies about handing out bonuses they do not deserve her then turning around and handing out bonuses at the irs. Its happening and its now. It is happening asn investigation targeting conservatives is continuing. It is not over by a long shot. The shareholders money, uncle sam is feeling generous with taxpayers money. That would eat our money. And at least some bankers are cautious about this. Whether it is the shareholders money or not. This berkeley ceo says the bank had a very tough year. They are both going out of their mans. To talk about a double standard . Yes, the message here is something that we get. Stick it to the military, stick it to the millennialist that pay off the debt for this. And stick it to the taxpayers. If you will, targeted and the enemies of this administration, you get a performance bonus. Is ludicrous. They should not have been getting bonuses in the first place. How can government workers get bonuses when bonuses are really for efficiencies. Since when do government workers do that . And yet the government goes after the banks who are feeding this country from a business standpoint. Jamie dimon has done more for the business in this country than any Government Employee will do anything. Neil by the way, 18. 5 million in restricted stock. So leaving that aside, it is interesng that wetalk about this performance. I dont think the activities speak to the entire organization. But it is what it is in an environment like that. And that is the reality in much of the rporate world. So the double standard is glaring here. I dont know that its glaring. You take the psychology of this. And it is completely and utterly insane at this ppoint. An institution like the rss had so much publicity for their unlawful behavior to give performance bonuses that are based on good behavior. This comes back to this administrations willingness to reward their friends and punish their enemies. There is no reprisal for behaving badly as long as you are on their side. That is where the total hypocrisy comes in truly e mental insanity of this entire situation. I was in military town in san diego and they need money for training. Sequester has hurt them badly. So how do they raonalize the bonuses for the irs employees while we have military families hurting. Neil you could make the argument that with good divisional managers and various departments, you might be questioning the numbers as well. I want to keep them and reward them. I want to give every benefit of the doubt to the irs. But is that a possibility . Theres no possibility in terms of going on. Bonuses are about efficiencies spewer must say i work for yu and you would be a horrible boss. But if you did, and im doing a great job for you, i might expect no matter what is going on that joe should acknowledge that i have help the bank. We acknowledge that in pay raises or what might be. The bonuses are really contingently have levels that you must meet to get a bonus. So what happens is if the organization does not do well, the individual that mightve done while get rewarded in other ways. But the organization hasnt meet a certain level. Neil okay, these nasty questions about the erez were provided to me about the staff. Okay, made a. Maybe they should call it the not so Affordable Health care act. And that is the United StatesFederal Reserve reporting that. Even after the president was denying that. Is they said this would be a disaster in terms of jobs. Theres no widespread evidence of informal care act has hurt [announcer] welcome to the allnew intuituickbooks. Run your ente business with it. Get paid howeverou want with it. Get real work done wherever with it. Make all your numbers play nicely with it. Say buhbye to theld way with it. Run yroll with your finger with it. Scan receipts with it. Sync this stuff with that stuff and that stuff, with it. Maintain your sanity with it. This is yourusiness on the allnew quickbooks. Run with it. Theres nothing like being yr own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. This film is not only about the health care of america but about jobs. In this life it will createfor s almost immediately. Neil not quite. Was it really worth all of that cash . This new Health Care Law costs reporting that in every region the story is pretty much the same. Hurting the jobs market and some more inclined to fire. The cost of covering the workers is s far out of hand that bosses are giving more than the root or reducing them to parttime work. Julie says that we are way overstating things. Okay, so here we are. The Federal Reserve. Is that the Federal Reserve . You have a region by region where you have a lot of this deal is reporting right now that it is giving umpires. 95 of the companies subject to obamacare, so this is off the table for them. Neil and then the employer mandate kicks in and everyone has to be on th same page. Not for a mandate. Neil our company will have to provide everything that the federal law requires them to. They might or might not keep me on their we. And im just saying that all rules change. Whatever issues that you have, mr. Murdoch has talked out this as well. The new scores and the other companies will keep you on the health care because it is an amenity of working here. 95 of them are the same and the fact that they have shown not only obamacare actually helps the job market that it allows people to move from one job to another without having to worry about keeping their health care. It helps the flow of capital and jobs. I have opposite ideas and we did a recent survey with all Small Business customers and 60 said they cannot comply. They are not part of the 95 . No. That Small Business owners, here is the reality. If you look at my health care, every single plan that i had as a Small Business owner has changed completely, going up 25 . Im thinking about this no different than any other Small Business owner in the maretplac neil will it cost you more . Yes, it will. What happened in the Affordable Care act is that they put more things on the health care burden. More things that were not covered before and that is going to increase the cost of health care. So where will that go . People wind up spending more money on health care. Neil the issue at is that if you know your costs are going up, businesses are less inclined to hire fulltime workers. If that is the case, and this ves them cause it means that you lose a lot of jobs. This is going on a predicate that is giving umpires. Im a Small Business, my insurance premiums have actually dropped and i am one example. And nevertheless i am friends with obama. Neil he took care of you. Okay,. Lets look at one of the Largest Labor unions. Obamacare is great, they are theyre all behind it. In just a few months ago they actually wrote a mandate that said that we completely disagree with the premise of obamacare and the Affordable Care act. I dont think it was a small provision. Neil so the question is about the jobs and whether or not the end of going forward. The deficit wilgo down drastically. Neil you think the deficit goes down . Its not what i think. We havent benefited from the stock market rge. The Congressional Budget Office is not controlled by barack obama but as much by john boehner as harry reid. Neil they also referred to the boom in the stock market as well. So which is more . Its are specifically refer to this and obamacare will save the day . Money that is going to Insurance Companies couldve gone to give people raises. Neil well, maybe they should just be calling him this emerging markets because nothing is emerging about them. Do not assume for a second it is not getting us there. It has and it is and it well. Friday night, buddy. You are gonna need a wingman. And with my cash back, you are money. Forget him. My Airline Miles will take your game worldwide. What im really looking for is i got two words for you rewards. Theres got to be better cards than this. [ male announcer ] theres a better way with creditcards. Com. Compare hundreds of cards from all the major banks to find the one thats right for you. Its simple. Search, compare, and apply at creditcards. Com. First rounds on me. You fill up my senses search, compare, and apply at creditcards. Com. Like a sleepy blue ocean you fill up my senses come fill me again neil here comes the snow again. Brutal cold and snow expected for much of the leading up to what could be eight doozy of a blizzard for upwards of the country this weekend and they could coincide with a different series of storms across the globe during the same time. Financial storms hitting more and more emerging markets like india and south africa and turkey. Spilling over to china and who knows where else. It is on his way here. Over to standards that. This is getting kind of scary. Estimates getting really scary. The index of japan is down 14 fro