Melissa our top story tonht. Alreadyost its financial mind, but this may be taking it to a whole new level. The bankrupt city is moving fu steam ahead on a new 444 million hockey stadium. Taxpayers are picking of most of the tab because they have a lot of extra money. In a city with more than 18 billion in debt, is this a3 huge wastef taxpayeron or could it bring this city back to life . With mnow, director of fiscal policy for the Mackinaw Center in michigan and democratic strategist. Welcome both of you to this show. Let me start with you. It seems a little crazy if you cannot pay your existing bills and you are filing for bankruptcy to go on the hook for another 444 m million. I guess the portions 400 million of Something Like that. What you think . Of course it is. Detroit is not exactly known for its economic rationality. They are in this position able to impose of the costs on state taxpayers. As taxpayers might be responsible for part of this do stadium that will never use. Melissa im betting you will make the argument that maybe this creates thousands of jobs. Well, actually, it does create thousands of jobs. It will create 8,000 jobs. Talking about some of thetudy that was done a billion dollars to o over the next two to three decades. Listen, the best timing, absolutely not. Are people going to be questioning the sensibility of doing this . Absolutely. But when youre talking about a city that is really suffering and needs development, needs investment, i think you have to take the rest of the chance. The reality of the private sector will also put in 150 million plus another 200 million in related investments. Melissa 2,909,000,0 on the convention center. You wi already tight try this. It didnt work. If this was a multi you stadium would agree. This was for a team oer than the red wings, i would agree with you. This has a serious chance of not only developing the area, but attracting even more investment. Right now this is a city that is in dire need of at. Melissa michael, you could do it without taxpayer money. You look at the example of met life stadium in east rutherford, new jersey. It is the most expensive stadium built without public money. There are a lot of examples. Chicago, wrigley field. A big renovation it. And pacific bell in the late 1990s. They tried to take it to the voters a couple of times spending for subsidies. They were told no both times and said we will finance a privately. The bottom line is youre only loing at the asset se of the balance sheet. Theyre is a liability side, and that will be imposed on taxpayers far and wide across machine. You have to look it is on that balance. And on that balance the empirical evidence from economists around the country shows that the stadiums shows zero been negative Economic Impact for cities. Melissa how would deceiving get done . Can ey float bonds for this given that there are about to go bankrupt . They dont have the Taxpayer Base to even pay to keep this tree lights on. Even if you had the political will to get it done, can you actually do it . It is supposed to the intention to do this, 30 year bonds. We will see if that happens. Imagine the interestte maybe a little higher than normal to say the least considering youre talking about detroit. But it turned in terms of the benefit, the economic benefit the study i will read you the fact that their studies is the the impact is next, but there also have really good examples where there redevelop core parts of the city. Washington d. Where i le, los angeles. There are a number of good examples. The risk here is to do nothing. Im not sure and as city that is lacking investment that the option is to do nothing. You have to try to do something to attract more investment to create jobs. Melia trying to centearound something that is positive for the city. Hock at least is one positive thing. Add all that much about hockey. Im told its a good team. The red wings are good team. They are a good team. Is fundamentally unfair to drag on sports fans into the deal. This will be done statewide. Therein lies the hope with the bonds. You ask about how the bonds will be floated. it will be floated by the state of michigan to the tune of 450 million, or percentage of which apparently looks like just a big gift. The state has done this before in michigan and outside the country as well and it has not turned out wl. The renaissance center, 100 privately financed building, 350 million in the 1970s sold for only 76,000,020 years later. Thats the messes that you will not overcome with any of these Economic Impact. Melissa your thoughts on that. Well, it really boils down to a simple conclusion. You can either do nothing or you can try to basically spark some type of growth. Melissa you can sayhat again because i dont think the other option is nothing. There are other ways to invest dollars if you try to attct outside businesses. Maybe you try and attract Tech Companies to the downtown area through taxncentives or wherever else that there would come in and at leastreate jobs. Hang on. And on. Left respond. Your talking about an investment risk there will be spread out ove three decades. It talking about 8,000 jobs and will be related just of the construction of the project and other indirect are. Your talking about a billion dollars of potential economic value. Again, this is where a sports team that is beloved in the city of detroit, a project, by the way, that is supported by republican governor. So listen, is there going to be risk involved . And the stand. At the same time, im not sure. There is no other alternative on the table that has seeped. Melissa we will leave it there. Thank you. Happy friday. Next, a shot over the back of the fracking dome. An antitrust probe as a fracking industry reeling. Could it put the u. S. Energy revolution in jeopardy . We have the detls. Plus, if you wt to buy Luxury Property tse day good luck finding one. A drought i sweeping the market , and the consequences should have every homeowner paying attention. More money coming out. When we made our commitment to the gulf, bp had two big goals help the gulf recover and learn from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Melissa mother its on wall street or main street, heres to make money today. Anyone who owns starbucks. Its best thir quarter in history. Specialty drinks and a growing vaety of food options of lead the way. Starbucks stock jumping more than seven percentage. Howard schultz owns around 18 million shares of starbucks. That means he made more than 94 million today. Why not me . Meanwhile, losing money today, anyone who owns some death. It folded plans to get in nevada gaming license. Online gambling has been considered a potential savior, but the shift in strategy clearly upset investors. At along with poor earnings sent stock 14 lower today. And chopping off the head in a theater near you. The tv movie that created the mega storm on twitter is coming to the big screen. It will be shown at 200 theaters next friday. Ticket costs, 12. 50 per. Creators reportedly wanted to let make it cult favorite. All right. The u. S. Fracking boom has looked unstoppable, but an antitrust probe by the Justice Department has the whole industry stopping in its tracks. Some of the Biggest Companies o being targeted. They are scrambling to figure out why. Is it enough to puttthe brakes on the u. S. Energy boom . With me now, david carson from the heritage foundation. It is always a pleasure have you, and i have to tell you, i was looking at the staff in this industry. Think it must be one of the most poorly organized monopolies ever because in the last quarter supply of equipment exceeded demand by 30 . So theee was a ton of stuff lying around was not being used. Where did they get antitrust from here . You know, i have no idea. Your knows what is driving the Justice Department on this. But we can look at the Obama Administration and s that they really have not done anything to promote the Energy Revolution that hydraulic fracturing has brought on. In fact mccoy the opposite. The Texas Oil Production has doubled in t past three and a half years because of the hydraulic fracturing. Almost all of the hydraulic fracturing is done on on federal land. So usually you bring an antitrust case when you want to lower prices, make the customers get more. They have not done anything else toward this industry to help the customers or to promote addition production. So it looks to me like this is the opposite. Want to drive the costf. Melissa and scratching my head because i drill down of the numbers. If you look at it, halliburton rose 15 of the equipment which is not that much. The profit margin dropped to 11 in the fourth quarter. It had been 31 so they are getting squeezed from those numbers. Another qb damon the industry. They had a margin of fell to 8 in the second quarter. Had been 22. Is it possible that did they think that there was some sort of collusion and now its gone . I can make sense of it. I have some phone calls. I talked with people, different dustry people trying to find myself. They were stunned. One of the most dynamic competitive parts of the oil industry with people coming in and going all the time. It will be very hard to monopolize or caramelized that section. We have prices last year for this service dropped 14 , expected to drop another 6 this year. So your Suing Companies for monopoly when prices are going down. Add on now. Melissa anyway you look at i the top 4 im sorry, the Top Four Companies with the largest 43 percent of the industry. So the big guys together only control 43 . Theres no way a look at the stf. What else could you possibly extrapolate . Trying to stall fracking . Jeff the only thing i can think of. This is a deliberate attempt to slow down the fracking andhale industry which has created so many jobs in this country. That explanation makes more sense than they are trying to do the opposite. When you talk to people, those firms that make up that 43 percent, you know, they are not spending time together. Melissa their enemies. Very much constructed of cutthroat competition. Melissa absolutelyy we set some of the names. These are companies that are competing, cutthroat competition all around the world. And the bad news is that the end result, ty may actually end up raising prices as a result because these companies now are forced to of fight of litigation or change practices. Whenever they do it adds to the cost. Melissa it will put the lawyers have to come and say, we need to look at this business and is before you go forward. Thats only going to slow down this energy boom that has been driving a manufacturing boom, that is moderating prices, helping create jobs in texas, north dakota, and everywhere in between with the oil and natural gas business. Melissa its such a change. And i talked to manufacturing ceos, they say that very cheap energy and natural gas that we are seeing makes manufacturing compelling again. Makes the lor proposition here makes sense because your ergy is so muchheaper. Youre closer to your customer. Even if labor is more expensive, your costs to make sense. Every weekend. The giver, not. Thank you. Melissa oming up, Luxury Properties are evaporating with the summer heat, and it could have serious consequences for homeowners acros the country. We will explain why. Plus, pot is legal in Washington State. The d. A. S kicking in doors at dispensaries across seattle. Does the crack down on the lucrative new industry crossed the line . To you ever have to much money are too much pot . Melissa want to buy Luxury Property . Deadlock. A drought is starting to sweep the market. A number of apartments for sale in manhattan is already at its lowest point in 15 years. It sounds great if youre at the high end of the market trying to sell,ut does it come at the expense of the housing recovery overall . With me now, ceo of color williams, new york city, and josh altman among luxury realestate broker in los angeles. You might recognize him. Welcome to bothf you. Let me start with you. A big trout in luxury apartments. This sounds like one of those things that brokers say to try and get you to make an offer. Is this rl . Very real. Its funny. You dont need a broker to tell you its a good time to buy you can go into an open house. One hundred people. Melissa a good time to buy, theres no supply. Its a good time to buy because ready youhink prices are in a go . There is going to be no supply. This is the new norm. It will be no supply. Melissa why . Why, where is it going to come from . Melissa i dont know. Youre t real estate broker. Lets look at luxury. That is where the cost is. Anything that is new construction coming to the market is strictly super luxury. People that bought in the height six, seven, eight years ago. Theyre just getting bacack into the black. Average to median prices. So we are more than halfy back to the highs. Where theyre going to move . Melissa is it t same on the west coast . Get ready for some good competition. Its everywhere. 3 you know, due to the lack of confidence before january where builders were not building all this new inventory until now. We are still kind of lagging behind. We are not seeing a lot of inventory. The middle class right now, the people are really gting squeezed, people taking out mortgages, people who have major competitions when a new product is the market if it does. All other times it does at the market. Melissa there was a great article about this and the new york post. They said the reason why we are seeing no supply is because no one can get financing. Its not necessarily a good thing for the market because no one is selli because they cant get financing to buy something new. Its just a gian market. Thats not great news. Does just everybody is stock. Go ahead. El. You know, i think it i good news because it means that people who are buying places are the people of canada for places. That will keep us out of the trouble we got in in the last recession. As long as washington is still involved, everyone is wating closely. You cant buy a place with less than 25 percent down. So i think its a good thing. Melissa this that even do it . I mean, a lot of times in the art theyre saying you needven more cash than that. If you look to people o want to buy a place and theyre stuck in cant get financing, that doesncase the wheel of the housing market. We dont want people buying houses they cant afford. The same time you go one a market that is totally stalled because you need the cash to buy a new home. One of the 3d as a man and right now are all cash. Wanted to give your number. You talk about contract activity for the month of july. We are at alltime highs. 700 yen is going to contract in the month of july which is typically a slow month. Summer, it slows down. 700 units in contract. 950 in 2012 and returning for over 1100 in 2013. So financing is available. Its up t financing of fiver six years ago of 90 financing to two and 3 million, will Mortgage Loans are readily available. Melissa i will give you the last point. Im worried about this for the overall market because it is more challenging than ever to get financing. We are about to see Interest Rates go up. Is this situation going to get even more dire . But, you have places like miami, new york, San Francisco los angeles. I hot market. When you go outside of these places like riverside, outside of los angeles, a town of inventory. Aces that are coming up, boston, texas. Otherwise its not as crazy. Interest rates are low. A good time to buy. You have to be super aggressive and make sure you have a good realtor. Melissa that is the take away. Hire you. Thanks. Have a great weekend. Next on money, voters legalize pot in Washington State. Now that the a is rating dispensaries across seattle. How it is drawing battle lines between the federal government and the states most lucrative new industry. Plus, meet the biggest cash cow. It is your car. You wont believe how much they are raking in from parking tickets, and its turning io an addiction that they cannot live without. Piles of money and way too many tickets. Grew up in a small town and when the rain would fall down id just stare out my window dreaming of what could be and if id end up ppy i would pray i could breakaway ill spread my wings and ill learn how to fly ill do what it takes till i touch the sky i gotta take a risk, take a chance, make a change, and break away wanna feel the warm breeze, sleep under a palm tree feel the rush of the ocean get on board a fast train, travel on a jet plane far away and break away of the darkness get on board a fast train, travel on a jet and into the sun but i wont forget the place i come from i gotta take a risk, take a chance, make a change, and break away melissa the da rating marijuana dispensaries might n seem like a big deal. What about where voters have made public will . Watching aggressive raids in shington state this week, hitting the case is all across seattle. It is a big escalation in the showdown between the feds in this lucrative industry. Should they be cracking down to begin with . Former federal prosecutor joins me on this. We knew it was going to come to this. We did. In the first legalized it in colorado and washington, although legal abundance, is still illegal under federal law. Melissa what is going to happen . How you deal with this . Its a great question. The reason is that we see other instances where theyre saying the Obama Administration may not enforce this law. Does not the correct approach. So the correct approach in my humb opinion is have the states try to get wit the Drug Enforcement ainistration in washington, said down and tried to come to some workable resolution. Melissa what is the reason . Montae in some cases saying that it is related to Money Laundering . Im glad youre remded me. Thats right. A lot of people watching this and saying that the feds are saying that these particular venues are fronts for other illegal activities, and if thats the case does legitimate. I do largescale marijuana case