Prosecutor fred tecce and former nsa official john schindler. Thanks to both of you for joining us. Thanks for having me. Melissa fred, let me start with you. Great to be here. Melissa were you surprised by the ruling and do you think it holds up . I was not surprised by this, melissa. I spent years as prosecutor and i refused to do criminal defense work i thought what the nsa does is violation of Fourth Amendment rights. It may not hold up on procedural ground whether a u. S. District court can review orders out of a secret court. We will see what is next. Melissa do you think a classaction lawsuit is next . That has been threatened. The haifa loose if i on class action lawsuits, it is lawyer emfair independent employment act. Some lawyer will charge verizon 10 of millions of dollars to defend themselves. Subscribers will get Gift Certificate good towards next purchase after verizon cell phone. Im not sure what it gets you. You laugh,. Melissa you do a lot of good jokes. They go by quick. There are a lot of good jokes in there. John, let me ask you. Im a paying customer. I feel like i have a choice out there but, the government hes listening everywhere. I dont trust them even with the ruling to back off. Am i save anywhere . What about skype . What about face time, is there anything safer than anything else . First, it is great to be here with someone as cynical as i am about all of this. Melissa two people. Kindred spirit. Exactly. Theres really no telecommunications platform of any kind that is completely impervious to surveillance, it doesnt exist. I also want people to understand, there are a lot of people listening in out l it is not just nsa. If youre a business person, youre a political figure youre great interest to foreign intelligence agencies, not nsa. Melissa who is the best at it, john . Who is the best as it listening in . Is our government, private companies, whos the best . Well it depends. Obviously in some ways nsa is the best signals Intelligence Agency in the world but obviously the companies have access to your data far more than nsa does, probably more vulnerable to them. Not to mention we give it to them voluntarily. Here is the big difference. They cant put me in jail, okay . They cant violate my constitutional rights. Only the government can do that. Melissa great point. Im very cynical about this but im, i was a federal prosecutor and for the first time in my life when i hear stuff like this i get a little nervous. Why is, why do we have a huge data dump system being built in utah . Why melissa because, fred, it is all about terrorism. It is all about stopping terrorists. You dont buy that. Im with you, melissa. That is erstwhile goal. We were sound asleep before 9 11. Those days are long over. If you want to stop terrorism, want to put a cop in everybodys house and camera on over phone pole . That will stop terrorism. Where do we draw the line. Look, i dont want to put a cop in everyones house either. Nsa doesnt either and we dont have the personnel anyway. On the metadata issue melissa they want to put a microphone in everyones house and listen to everything going on. Or a tv to look both ways. Melissa they go back and listen to it. John, go ahead, im sorry. Yeah, look this is, the Metadata Program is vital to the nsas Counterterrorism Program since 9 11. Senator feinstein today, the chair of the Senate IntelligenceCommittee Said the issue will wind up in the Supreme Court as an american citizen i think that is where it needs to be adjudicate. But let me say this the Metadata Program is not a threat to your privacy unless you are in bed with al qaeda, talking to terrorists. John, how can you possibly say that . Theyre using a vacuum cleantory suck up my emails. Hang on. Hang on. Ive done this. Melissa john, let me ask you, theyre using a giant vacuum cleaner to vacuum up all of our emails and voice mails and all our conversations. No, no, no. Melissa decide later what they want to listen to. Where is that wrong. No this is metadata only. Okay, lets say this, is metadata. The to from and time of the call. It is not content itself. Nsa has no ability to go back and look at a previous conversation. They are not collecting that. Let me make this very cllar. If they want to collect melissa i dont know that is true. When they brought in the head of the nsa do know that is true. Melissa the head of nsa lied in front of congress when he testifying. They said are you listening to the calls, do you have the ability . I wish i had hits name in front of me and he said no, were not authorized to do that but he didnt say we didnt do it. Thats true. Melissa he didnt say we didnt do it, cant do it. He said that is not our mission. Capability to do it, doesnt mean they are doing. I can tell you how the procedure actually works. I have done it. First of all, i understand what youre saying, john, there is wo points to all this. This is packized data. Metadata and information is out there. I disagree, the district court, the judge recognized this in his opinion took me a long time to read and 91 pages well put that aside, he recognized there was a big factual issue with respect how broadly the nsa could look at this stuff. You and i know it is packettized data and metadata wouldnt be listening i would be amazed if the nsa doesnt have the ability to go back look at content. They dont. Simply dont. Melissa you have great answers. I hope you will come back. We didnt solve it. We need to. Great to be here. Thank you. elissa which is worse for americans and economy, income inequality or unemployment . Does one problem cause the either . Whats the relationship . That debate is coming up next. Think about it during the commercial. Tweet me. Tell me what you think. Inequality and unemployment. Are you missing out on holiday bargains . You may be willing to haggle on the price of a car, but would you try to negotiate on the price in a Department Store . Would you do it . Why not . Well tell you how to. More money coming right up. Mine was earned orbiting the moon in 1971. Afghanistan in 200 on the u. S. S. Saratoga in 1982. [ male announcer ] once its earned, usaa Auto Insurance is often handed dow from generation to generation because it offers a superior level of protection and because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. Open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. Its not the limit the cash i earnvery month card. Its not the i only earn dent rewards at the gas station card. Its the nogames, nosigning up, everydayrewarding, kungfufighting, silverlightninginabottle, bringinghomethebacon cash back card. This is the quicksilver card from capital one. Unlimited 1. 5 cash back on eve purchase, everywhere, every single day. So ask yourself, whats in your wallet . Lifes an adventure evewhenoure with her. And it. But your erectile dysfunction it could be a questi of blood flow. Cialis tadalafil for daily use helps you beeady anytime the moments right. You can be more confident in your ability to be ady. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. Tell your doctor about all your medic conditions and medications, and ask if your heart healthy enough for sexual activity. Do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess with cialis. Side effects may include headache, upset stomach, delayed backache or mule ache. To avoid longterm injury, seek immediate medical help for an erection lasting more than 4 hours. If you have any sudden decrease or loss in hearing or vision, or if you ve any allergic reactis such as rash, hives, swling of the lips, toue or throat, or difficulty breathing or swallowing, stop takg cialis and get medical help right away. Ask your doctor about cialis f daily use and a 30tablet free trial. Melissa so have you heard the expression, if you dont have a solution youre just part of the problem . What about picking the problem . Which is worse, income inequality or unemployment . They are both hot topics right now. Weve got wage wars in full swing. Many seem to be forgetting all the people that could lose their jobs all together. So which would you choose to fix first . Here to debate it, Fox News Contributor steve moore and economist harry dent. Thanks to both of you for joining us. You know a lot of this arose from a editorial from the washington post, ezra klein talking about pick your problem and the frayedoff. Steve moore, do you accept the principle there is trade why you have between no i dont. No, i dont. Melissa you dont . If you look in the 19780s, 1990s we had rapid reductions in unemployment, melissa and incomm disparities actually became narrower except the at very top. People at very top who did better. My philosophy about this, as kennedy and reagan said, if you have a rising tide it lifts all boats. People dont care about inequality, melissa, if theyre doing better themselves. Melissa maybe you get into the get the problem with one or the oertingerring with it trying to come up with a government solution. For example, when you raise the minimum wage, we cite it on the show, economists from cornell university, if we raise the minimum wage to 10. 10, they estimate through mathematics we will lose half a million jobs. Harry what do you think . Is there a tradeoff trying to micromanage the economy . Especially when the government is stimulating the economy. Steves right, 80s, 90s everybody won but after the 90s, you know the rich got better and wages have gone down. Inequality has gotten worse again and it is highest since 1929 here in 2007 and again in 2013. The government is trying to stimulate the economy by goosing Financial Assets because you cant get banks to lend in an overexpanded economy with too much debt. I know steve would agree with that. We have too much debt, not too little debt. This is the wrong solution. But heres my thing, from the long term point of view greatest bubbles burst when inequality were at levels like this, 1929, 2007, and 2013. What is the bubble that will burst right now . Same thing but inequality is worse. Melissa youre saying that bubbles have burst when weve seen levels like they are. Are you saying theres a bubble right now that is going to burst . Is it equities . What is it . Yes, absolutely 100 , if this bubble doesnt burst next year or two i will hang up my economic hat. I will hold you to that. Melissa it will be really sad you said that on national television. In the last five years the last bubble burst when they advanced 100 from 2002 to 2007. This equity bubble is going to burst. It is all from stimulus. All going into speculation. Not into lending and not new jobs and capacity because the economy already peaked and already overexpanded from previous overstimulus. Which again, steve would have to agree with. This is not where this conversation was supposed to go but that is interesting point. That is a good conversation. Melissa but as the conversation goes where it goes. Steve moore, what do you think about that . Harrys not alone. He is dire and he is dramatic, may be alone in that but what do you think about his reasoning. I have Great Respect for harry. I read many of his books and agree with him at lost time. I dont agree with you here, harry. The reason i dont look, washington is paralyzed right now. It cant do much of anything. All of the negatives on the economy that we saw in obamas first term are kind of going away except for obamacare. Youre not seeing a huge surge in spending. Youre not seeing a massive increase in debt. Debt is going up but not nearly as fast as it was three or four years ago. I see the policy environment in washington becoming somewhat bullish. I think 2014 is going to be a great year because washington is not standing in the way. Melissa do wheels come off eventually though . They always do. But the question is when . When . Melissa how can we continue down this road . When will we see runaway inflation with all the moneypumping weve done you. Will not see runaway inflation. Melissa why, harry. No way to create inflation. The economy is overinflated. It is trying to deleverage and the government is trying to prevent deleveraging debt. High real estate, high stock prices are terrible for the next generation trying to come along invest in the future, to buy a house. Were killing our economy by saving the damn banks. And that is what the governments theyre putting money if banks. Killing middle class. Look at surveys of 08 of people say no recovery since the great recession. 20 , the college, educated, one o. W. N. All the assets government is inflate Something Better than ever. That is not a good look for future. How in the world are higher stocks prices and higher housing prices bad for the next generation . Who will inherit all this stuff. How will you buy a house steve, if youre 25 years old and it is 800,000. Melissa buying stock first. How will you invest in the stock market with such high valuations that the predictions of 1 to 3 gains for next 10 to 20 years . Youre killing the next generation to save the banks. Forget the banks. Melissa but, harry, youre saying that the stock market is going to collapse though. What will cause that to happen . I am saying it will collapse in the next two years. Melissa when will it happen . I think stocks peak in the First Quarter next year. Well be in recession by second or Third Quarter because they have stretched this bubble. Look the previous bubbles melissa what pricks the bubble . What is the event. Harrr, harry hang on, were running out of time. What is the event that finally bursts this equity bubble . People are wondering that for a long time. You think it is coming whats the cause . The fed has created so many more new bubbles the bubbles burst. Southern europe, greece and spain are seeing bad loans going straight up while people are saying theyre recovering. China has greatest real estate and overinvestment bubble in history of. Its ready to burst. The u. S. Real estate recovery is almost all speculation, no real buyers. All three of these things along with Rising Interest Rates are going to create a downturn next year. Bubble is in higher education. That is only bubble. I agree with that, steve. Melissa that wasnt what we were supposed to talk about but i thought it was highly entertaining. I hope the audience did too. Thanks to both of you. Thank you. Melissa online ads ruining all of your holiday surprises . If youre not careful savvy kids and spouses can figure out exactly what their gifts are just by seeing ads in your browser. Did you realize this . A tech expert shows us how to keep online and keep santas secrets. Plus during flu season you may think antibacterial soap is the key to warding off germs but fda says not only is there no evidence that these products work but they actually might be dangerous to use. Are antibacterial soaps really a germ a phobes nightmare . No way dont move, more money straight ahead. [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the Aerospace Industry in the u. S. . At rowe price, we understand the connections of a complex, global economy. Its just one reason over 70 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and considecarefully before investing. With investment information, risks, fees and expenses stick with innovation. Stick with power. Stick with technology. Get the flexcare platinum. New from philips sonicare. You can fill that box and pay one flat rate. I didnt know the coal thing was real. Its very real. David rivera. Rivera, david. [ male announcer ] fedex o rate. Simple, at rate shipping with the reliability of fedex. Melissa no pressure but if you havent finished your Christmas Shopping you have 174 hours to get presents wrapped and you under the tree but you dont have to go broke playing santa this year. If you have the gumption to ask you can negotiate for better prices even at Major Retail Stores . Can you believe that . Haggling has gone mainstream. We have a retail expert. Everyone is talking about this. Right. Melissa i dont believe it i can walk into sachs or buying a wallet or something behind the price, what is your press price, i will give you half . You. Want to say it more nuanced. What were not used to in this country is negotiating prices. Overall people have the issue with negotiating. Melissa for cars, jewelry, not for lipstick. But you can. That is the interesting part about this. Prices are not necessarily fixed in retail stores. And, as you said we have 174 hours before we put gifts under trees. Melissa how do i get started . What do i say . You shouldnt be so aggressive. Melissa that is going to be hard but go ahead. Me too. Go approach the person and say, i really want this piece. I really want this product but i dont know if i can afford it. Is there something you can do for me. Nicer that you are, better chance you have for the price to go down. What kind ever stores do you have the best luck . One of our producers went into tiffanys and buying a piece of jewelry and was nuanced. Is there any way you can do better on the price . Do you have something else, and, it didnt work, bottom line, didnt work. With luxury retailers those prices are fixed and they cant budge on that because of margins. Dealing with Department Stores, you remember five years ago, saks fifth avenue had the firesale because they had all this product and no one was purchasing things. The last thing retailers want to do is have product on those shelves. And youre actually helping the retailers by getting that product out, by negotiating with them, to try to get the better price so that product will come out of the stores. Melissa so i pick saks . Saks fifth avenue is luxury retailer. Melissa who might negotiate. Macys. Nordstrom. Tj maxx. Go all