Adam our top story the newest twist in the health care fight. The back and forth and perceived hypocrisy over obamacare. The announcement that the president obama would delay the employer mandate another year has republicans up in arms. Why for a delay just for employers and not for the individual mante . If it ii in the law, how can any of it be delayed without congressional approval . The latest fight in washington d one with serious consequences for all of u every american. Fox businesss Elizabeth Macdonald is on the story. Emac, how can they do this without congressional approval . That is exactly right. Three gop members. House, fill roe, kevin brady and darrell issa saying same thing. You cant ignore the law and constitution, constitution article iii, section 2, you have to dutifully to execute the law. You dont have discretionary power to enforce the law and what laws you pick and choose. Kevin brady saying, i may hold a hearing and phil roe i want Congressional Reserve Service to look into it. Adam did heay what resource congress would have tt make the president follow the law . He didnt say what recourse, treasury and administration saying, National Federation of independent business said we want this delay. It will cost 1. 6 million jobs. As we pointed out, what about the individual mandate why not die lay that . That takes effect this january 1, 2014. If that individual doesnt have affordable insurance offered to them, do they get put into the state exchanges . Already were seeing those costs doubling for the state exchanges. That is has got orrin hatch up in arms too. Adam you point out the administration pnts to the nfib wants delay. What the nfib wants is to redo this. They think the law is a real hindrance for smalltime employers, who own fastfood changes and restrants. Thats right. Adam theyre really upset with this. Is there any way to challenge the administrati legally . I dont think they can challenge legally a certainly take the fight to congress about this they have delayed doddfrank, right . The bank lobby has been delaying doddfrank. Two thirds of those rules are rewritten. Why not delay all income taxes too and Health Reform . You know what is so key . This is so important for the viewer to understand, that individual mandate tax is really onerous. Goes from 95 bucks or 1 of household income, whatever is greatest, then triples in 2015 to 3. 25. The problem with the mandate tax, assessed against personal income, but household income. Everyone on your house and coverage. That means the irs gets to know about your familys in ordero assess the tax. Adam will be interesting to see how this plays out politically especially with this is designed now to be delayed until after the congressional elections. Midterm elections. Thats right. Adam liz, thank you very much. People are facing problems with this. Employers are scrambling. Some businesses already cut back the hours of employees because of the obamacare mandate. So several employers and employees are feeling the pain, with at this point, with no gain. Andy is the ceo of a faturger. He says, that is exactly the situation that he finds himself and his company in. Thank you for joining us, andy. A pleasurto have you here on foxusiness. Let me ask you, you guys were preparing for the implementatn of obamare, the Affordable Health care act. Then this delay comes down. Why is that a hindrance to people who have franchises with fatburger . As you know, adam, were a Franchise System and what that does, independent businessmen who are organizing their labor force to comply with law and theyre trying to be prepared for it before it kicks in. So youre faced with these economic challenges being burdened upon you and the Restaurant Industry, as a company we want our employees and franchise employees to have Health Insurance but, the applicability of it and how it triggers like falling off a cliff, i you have 50 employees or dont have 50 employees, working over 30 hours or not working over 30 hours, it creates all the challenges that are very hard to execute. Adam in fact i learn ad term preparing for my discussion with you, slash and share. There is always a way to get around certain legal mandates. Sometimes theyre wonderful solutions. In the case of for instance, not only your company but several Small Businesses tyre cutting hours of individual stores but sharingmployees. They go to a different franchise and get more hours there, right . Thats right. That is job shang. That is not good for anyone. Adam no. It is bad for everyone. We want to encourage employees to work 40 hours or more, not go across the street to skirt the law or employer manage his income. We need coverage provided. We need to get rid of technical applications. Adam earned, one. Negative on the other hand, one. Consequences of Affordable Care act, obamacare, they applaud the fact that we have 300,000 additional people working part time, but arent a lot of those people perhaps people who were working full time who had hours cut because the employers couldnt afford to comply with new mandates . On all levels. Its a huge problem, the cost of this, look, a restaurant has food cost, is 25 to 30 . Labor costs of 30 . Of the rent costs of 10 . You will have to bear this cost somewhere. The consumer will bear it on well have to pay it as a taxpayer. There is a cost. We need to reduce that cost to be efficient with it. Having legislation that has so much Administration Associated with it, all the reporting aspects of it, it will cost more. You will have eloyees stuck in this, in this dilemma where the employer is trying to manage his way through it or avoided it. That is not good for anyone. Adam you heard a story, one of your franchisees, not through fatburger, through but the other side would close the store because of the burden of mandate, but you cut a deal to keep the store open but cut the franchise fee, right . We own another brand, buffalo, and that owner had more than one restaurt and therefore had more than 50 employees. Application of this new law triggers a cost from 60,000 to 200,000 for health care for his restaurants. The problem for that, it would make one of his restaurants lose money, a significant aunt of money. He would close the restaurant and all jobsould be lost. We stepped in and agreed to write a check to cover for the difference by lowering royalties. Weant do that across the board. Adam no. Youve got a business. Franchise ores can not do that. You cant have a cliff Certain Companies fall into and others dont. Small business is getting killed with it. Adam we saw just this afternoon, very late this afternoon the nfib came out said, the delay, fine. We really need to do this wle complex situation with mandates but ive got to imagine it is incredibly frustrating for people like you when you hear from t administration, supporters of this, saying only 3 of the nations, it is 5,700,000 employers are affected by this. That would, got to make you turn red . Thats a huge number. When you say it is only that, come on. The, fact that Small Business is being affected period, it is hard enough to be a Small Businessman in america let alone to be singled out and punished with this. Adamright. Yet the industry and our company we Want Health Care coverage for all the employees, not just with this mechani. Adam how do you t the administration to listen to you, men and women who work in the 3 threshold and were employing millions of people and youre jeopardizing that. I thinkhey hear it. They dont wan to react to it. They will have to. This year in time, some ways better than nothing. At least take the time to implement it properly and massage the rules and apply them so theyre even for everyone. Really reduce the Administration Associated with it. Business cant afford the cost of administering it. Adam as far as anyone you know anyone from the administration in crafting the Affordable Health care act contact anyone like you to ask what are the real world implications of that. Im not aware of the restaurant indusy getting a real voice oft, the Restaurant Industry as you know from a labor force affected by it significantly. Adam i have been there i was a dish walker at a diner in Old Orchard Beach a thousandyears ago. We really appreciate it. , andy. Ceo of fatburger. Next on mone can bubbles be prevented . Ben bernanke and central bankers are developing tools to pop them before they take us down but is it all a foolser rand . Our power panel will weigh in. Egypts interim president names his government. The Muslim Brotherhood is fighting tooth and nail. We have new details coming up. More money is just ahead. Ashley if youre wondering don ho. Whether on wall street or main street, here who here is who made money today. Fedex. Bill act man, the Billionaire Hedge Fund giant m make a big investment in fedex. He wants clients to make a total of one billion dollars to buy a stake in a major u. S. Company. Some believe that company is fedex. The rumors left fedex up by one point before closing up 4 . Losing money, investors in intuit surgical maker of groundbreaking today vinci robots. The secondquarter earnings come in lower than expectations. They claim a decline in hospital admissions. Stock closed down 16 . Plus who is making mey, and happier than a kid in candy crush. Makers of candy crush. I see playing this on the subway all the time. This is app game that turned into addiction for those riding the subway and other it makes 336,000 per day. It is played about 600 million times every 24 hours . You know what . Get back to work, people. Get off the subway. We need room. We have breaking news from the u. S. Treasury on ge capital and aig. We want to go to peter barnes in washington with more. This is pretty big, peter. Thats right, adam. Financial Stability Oversight Council designated a and Ge Capital Corporation as systematically important financial institutions. Sifis as we call them. Which will require extra regulation, to make sure that if they ever get into financial trouble they dont take down the entire Financial System as we saw with, aig helped to do that back during the financial crisis. Now they will get extra regulation from the Federal Reserve. The companies were notified last month along with a third company, Prudential Insurance, that they could be designated, but there is an appeals process in this. It appears that Prudential Insurance successfully petitioned the fsoc for a hearing, a written appeal and oral hearing according to the press released just issued from the Treasury Department and it will, the council, the fsoc say it will do it within 30 days for Prudential Insurance but the release says that aig and ge capital did not appeal their preliminary designations from last month and so today the fsoc formally calling them designating them, sifis and giving them extra regulation and supervision. Adam . Adam huge, when you consider the billions upon billions taxpayers shelled out to save aig. We didnt have to save ge. In a reverse kind of perverse way, arent we making it cheaper for them to do business by designating them . This is the complaintbout the banks, you can borrow much cheaper when essennially youre too big to fail . There is a huge debate about that as you kn apcontinues in washington. We saw a step towards trying to resolve that debate when the financial regulators also required eight big banks, not these guys, but eight big banks to pony up Additional Capital but, now that these two are under the umbrella of the Federal Reserve, maybe well see them adam costs come down for them. Well see. Adam peter barnes, thank you very much. The man who gets it first and right for us here on in washingl the best, peter. Whether you think were headed for a housing bubble, bond bubble or any other kind of bubble, think about this. Why do we have t face one at all . Could they actually be prevented . The fed doesnt like to burst bubbles but dress i can actions are taken worldwide to block them from forming. Requiring a 50 down payment to purchase a home to qualify for a mortgage. That is south korea. We brought in a money power panel to break down whetr or not we can banish bubbles all together and how we do it. First up is jack otter. Steve patton steel vine investments and robert brusca, former research chief at the federal rerve. Leme start with you, rob before. The fed said publicly they dont like to prevent bubbles. They like to clean up afterward. Has that changed . No it hasnt. Theory of Monetary Policy doesnt have anything to do with bubbles. The fed doesnt have a paradigm with deali with them. Alan greenspan didnt want to deal with housing bubble even when he saw it irrational exuberance and he saw it far too early in the game and ultimatel didnt want to do anything about it. The fed has very few tools but the for the most part things ne in other countries arent things in the feds tool chess. Adam lets talk about that. Jack otter. A freshn goes in college goes on a drinking binge ignoring the fact the will have hangover tomorrow. In south korea, 50 required to buy a house. I dont think mos people can do that. Should the fed do this to avoided a housing whether you believe froo forming . That particular tool the fed is not empowered to do but that certain thing, you would know bert than i, the fed h has contl over affiliates of federallychartered banks. Perhaps they could have tightened some of the lending rules a while back. To me the single largest cause of the housing bub, the securitization of mortgages. The fact that no longer a Friendly Neighborhood Bank held it. It was chopped up, sold to investors, countrywide or bank had no responsibility for the loan. Adam that is almost like back alley mortgages in the era. That seems to be cleared up. Lets bring in spencer patton. The talk we got from ben perhaps two weeks ago was that his own way of deflati what some people think is new housing bubble. It is so small the Federal Reserve is convicted fell lon of inflating and causing bubbles. They have a long history of not catching it. Kind of asking the fed to help prevent a bubble is like asking a prisoner to guard the asylum. In some sse the fed may be had a tiny little bit of saying we may think about stopping this 85 billiondollar a month plan but it is so far, were already 2 trillion down the rabbit hole ofhis fed experiment with quantitative easing. You know, the bubble is already coming. I mean as soon as the Balance Sheets open up well have cash coming out of everywhere. Adam is the bubble here, robert . Is it an eity bubble . Is it a new housing bubble . They say it is hard to actually spot a bubble but a lot of people seem to do it and warn the fed but they ignore them . May be hard to spot in their earliest stages. Right now we have actually some nice Housing Price increases in new york. Other parts of the country. The stock market looks more fully valued than looks like bubblicious. The stock market, you dont look at that, oh, the valuations look terrible. Valuations dont look terrible. Stock prices are moving unearnings and some measures standard. If you really want to start a bubble i like to say it is like cancer. You want preventive medicine. Because once you got it your options are bad to worse. Adam jack, let me pick up on that. Did they need to give us the very easy money problem policy that might create t next problem. Step youa is unintended problems. That is not a reason for doing nothing bu unreal listic view. Would you want to jump many in the Housing Market or stock market now, absolutely not. Look at reversion to the mean is the best way to spot a bubble. If youre at huge reversion to the mean thats when you got to be worried. Again to your point what do you do about it . You cant just burst it because then youve got the problem youre trying to prevent. Adam spencer i had the unfortunate pleasure reading a fed paper on just this issue yearago whether they should clean up after which always had been the policy. Doesnt look like that is going to change. How do you prepare for whenever the next bubble bursts . I think that obviously trying to identify where its at is the most critical part. Think bubbles actually perform a cleansing function for the economy. The free market operating in a way that those bubbles kind of compss human psychology of getting everybody excited about something. Then having a giant flush which ultimately leaves the economy in a better spot. Adam can i be a naysayer . What free market we bled out the people who brought us the bubble, jack . I think thats a very good point. You have creative destruction. You have the blo up and smart people who have cash left are able to pick up the pieces. In terms of the individual, for your viewer the best defense is diversify. We s that all the time. As long as youre not 100 in tech stocks. People who owned small caps in 1999 were kind of happy in 2003. Adam robert, i have let you close for us. Before we started this discussion. We saved aig and give them preferential treatment of borrowing with this designation of too big to fail. Sound like nothing is changed. The rich get rich and poor get children. We have destructive creation. We created these things are destructive and still around and theyre zombies. We have a democrat president yet he hasnt prosecuted successfully anyone who wouldnt wrong in financial crisis. A republican president could never have gotten away withhat were being run bit financial lobby. Not the other way around. Im not really very impressed with these moves. A lot of laws are so darn complex make you thin like youve got something that is protecting you but like a babys binky