Lawsuit against the company in california. We have kip, who is president of the hardwood and plywood veneer association. Two experts weighing in tonight on Lumber Liquidators. Richard i will start with you. So the material in question in this product formaldehyde tell our viewers what the dangers of formaldehyde are to the human body. Formaldehyde is a known human carcinogen. Longterm exposure can cause cancer but short term exposure also has Health Effects such as respiratory ailments burning lungs, asthma and burning eyes and throat. Gerri so kip, to you, youre an expert on these products. You watch all of them all over the world actually. Today in a Conference CallLumber Liquidators said hey, there are lots of products all through your house contain formaldehyde. Here is list. Foam insulation, wallpaper. Cosmetics. Laminate flooring. Decorative laminates. Paper products what do you say to that . Is formaldehyde in everything . Well, formaldehyde is a widely used chemical in a wide variety of products but you know, there are standards and, regulations that basically govern their use. And certainly formaldehyde resins have been in forest products, Wood Products industry over 40 years. There are tight regulations basically restrict how we can use those. Gerri controlled pretty closely, how theyre used today. You really cant, they cant hurt folks. Go right ahead. Well the first regulation on formaldehyde in composite Wood Products was developed at federal level by the housing and urban Development Department in the early 1980s so goes back a way. All right. I want to get you to Lumber LiquidatorsConference Call because ceo, robert lynch, had strong statements to make about attacks on him and his company and what they think of his products. Here is rob lynch. I want to reassure all of you all of our customers, and the general public that we are confident that all of our products are safe and none of our products pose Significant Health or sate issues. We have a wellestablished track record of providing a wide range of products to millions of satisfied customers across america and we would never knowingly put their health or safety at risk. Gerri so, richard to you, youre leading a lawsuit on this thing. There is the ceo saying my product is safe. He isoffering free indoor tests. What do you make of that . I think most important thing came out of todays press conference, Lumber Liquidators admitted at page nine of 15 of their prepared script California Resources board tested Lumber Liquidators products and sever of them failed the california formaldehyde test. This is first time Lumber Liquidators admitted that its products failed the california formaldehyde test done by a california agency. Not just 60 minutes that conducted 30 tests and Lumber Liquidators failed all but one of those tests. We conducted over 80 tests and every single box of chinesemade laminate we tested failed the california formaldehyde standard at three different test labs. Talking about Lumber Liquidators product here. Kip, to you you described product coming from china as wild west. China is the wild west when it comes to production of this kind of stuff, these flooring products. What kind of problems do they have with the flooring . Well, think i the issue here really is theres no u. S. Government agency nor the state of california that can go to china to basically enforce the standards that we have in place in the united states. So you have to rely on the chain of commerce to basically enforce the regulation. And i think that probably the most telling piece of the 60 minutes was when they had the chinese manufacturer on camera, and showed two boxes both were saying they were cache 2 certified. One is, one isnt. One costs more. One costs less. You decide. There is no active enforcement in the united states. Right now only Emission Standard in place at these new lower levels is california and it is only for products sold in california. We are really not seen a lot of enforcement out of them. Gerri let me get back to richard for a second because one of the issues here that everybodys talking about, the folks on wall street are taking frankly a hard look at how you test this product, right . Do you break it into pieces . Do you pull layers of laminate apart . That is inside where the formaldehyde is. People are defending company tonight say if you dont do, there is no formaldehyde problem. How do you respond to that . Well, that is simply not true. The california arrow sources board establish ad test how to test for formaldehyde in finished Wood Products, that is the test that the california arrow sources board conducted, Lumber Liquidators failed. That is the test that 60 minutes conducted. Lumber liquidators failed. That is the test that we conducted and Lumber Liquidators failed every single box of chinesemade laminate we tested and purchased failed that test. Gerri but richard, let me interrupt you here for a second . Did you take the thing apart or just test it as it was sold . We, we conducted the test that california arrow sources board has proscribed which requires you to take the top layer of lam minute nation off the wood. Gerri right. Because the standard is designed for the core board, for inside of the wood. California has determined that if the formaldehyde is in the wood it is going to come out. Having a piece of plastic on top isnt going to keep it in, especially given that the sides and back are not laminated. Theyre open to the air. Now may come out slowly or may come out quickly. Gerri get back to kip for a second here. Do you agree with this analysis . Does richard have it right . Well, california proscribes on laminated products that have been fabricated and fabricatetores are exempt from the california rule. Only way you can enforce that regulation is you have to remove the laminate. And there is the laminate right there. Its a little thin piece of paper that can get plained off. Youre not doing anything else to the board. Youre not pulling the board apart. Youre not chopping it up or anything else. It stays as a solid board. Gerri kept quickly before we go here. Are american retailers using the excuse of, poor chinese construction as a way to get product on to american shelves that is subpar, maybe even dangerous . Well i dont want to address the danger thing because im not a medical doctor but when you basically say to the american consumer, this is carbii certified and it is not, that is misrepresenting product. Consumers rely on that label in fact it meets the california and eventually epa regulation. Gerri because that california standard is going to become the national standard. Rich and kip, thanks for coming on the show. We appreciate your time. Thank you. Thank you. Gerri of course we keep asking rob lynch, ceo of Lumber Liquidators to come on the show because we want to hear from him directly. Please come to the show. On to another issue. Have you heard of powdered alcohol . Its a new product which promises to shake up a quick cocktail instead of stirring up some serious controversy. It is called palcohol. When mixed with water it creates instant alcoholic beverage. It was just approved for sale by the federal government but many states want to ban the powdered substance. Joining me one of our resident doctors kevin campbell. Hey, kevin, what is this stuff . Explain to me. It is actual alcohol distilled down into powder. If you mix it with six ounces of water, its a standard cocktail with the same alcohol content and, it doesnt look very appetizing but it packs the same intoxication punch that a normal cocktail would have. Gerri now i hear that you can actually senator this, not that want to. Im just saying that it might be used that way . When i read about this product they do say that folks have tried to senator it but it is senator it. It snort and very uncomfortable. It would take you hour to snort equivalent of one martini. Gerri i dont think people will do that in your view should this be banned . This is product that makes no sense. Something that children and adolescents have access to. We make toxic exposures toed letters because it looks pretty and tastes like a kozmo. Teenagers want to try things t may be a good way to sneak alcohol to place where they could try it. Gerri could it be dangerous in your view . I think it could be. Because this is a different type of product. If youre someone who has never been exposed to alcohol and try this, you may not realize what effects are. Certainly alcohol in toddlers and Young Children can be very toxic and dangerous. Gerri i i want to play sound from the ceo of Palcohol Mark Phillips defending his product. Listen to this. It will be sold in lick car stores like liquid alcohol. You have to be 21 years old or older to have it. No easier to get into younger age drinkers hands. What will make it easier for if people ban it. If the government bans it. The government loose all control over distribution. That will allow the kids to get ahold of easier. Gerri do you agree with that . He has a longer segment with the palcohol ceo later tonight on you are network. Do you think the sheer fact of it will make kids drink more . No i dont think so at all but having it there and available as easier way if you as a child want to smuggle out alcohol from your parents liquor cabinet it is pretty difficult. If all you have to do is take a packet in your pocket and go find water this is easier entrance into you know trying alcohol. Gerri well, i dont know kevin. You know couldnt wouldnt it save me like 10 bucks if i wanted to go to ball game to have a beer and i couldnt, didnt want to pay prices inside of the stadium . That is another thing that think brings up a great point. We have sporting events and other public venues where alcohol is sold. Certainly we have regulations in place to make sure that we dont sell obviously intoxicated folks so there is not trouble at yankee stadium. But gerri you wouldnt know, right . You have no idea. I wonder how it works with the breathalyzer too. I never thought of that. You know i think it probably, your bloodalcohol level will increase just like it would with regular alcohol. You know, this product makes no sense to me whatsoever. Who wants to go canoeing and drink a cost mow . It just doesnt go together. Gerri a lot of states already banning it. Theyre in charge of licensing alcohol at the state level. So that is probably the way this is all going to work. Dr. Campbell, thanks for coming on the show. Thanks for having me, gerri. Have a great evening. Gerri we want to know what you think. Here is our question. Should powdered alcohol be legal. Log on to gerriwillis. Com and vote. I will give answers at end of tonights show. Watch neil cavutos interview with the creator of palcohol, Mark Phillips on cavuto, 8 00 eastern time on fox business network. A lot more to come on this hour, sexual registry for. Colleges going bust. A warning for parents as they go off to school. How to know if the university you chose will still be in business a in a few years . Let us know what you think. Tweet me gerriwillisfbn. Or send a email through our website gerriwillis. Com. Well be right back. The real question that needs to be asked is what is it that we can do that is impactful . What the cloud enables is computing to empower cancer researchers. It used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. Whatever i can do to help compute a cure for cancer, thats what id like to do. Do you want to know how hard it can be to breathe with copd . It can feel like this. Copd includes chronic bronchitis and emphysema. Spiriva is a oncedaily inhaled copd maintenance treatment that helps open my airways for a full 24 hours. Spiriva helps me breathe easier. Spiriva respimat does not replace rescue inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. These may worsen with Spiriva Respimat. Discuss all medicines you take even eye drops. If your breathing suddenly worsens, your throat or tongue swells you get hives, vision changes or eye pain or problems passing urine stop taking Spiriva Respimat and call your doctor right away. Side effects include sore throat cough, dry mouth and sinus infection. Nothing can reverse copd. Spiriva helps me breathe better. To learn about Spiriva Respimat slowmoving mist ask your doctor or visit spirivarespimat. Com gerri a special investigation. Colleges are going broke. Ive been looking into a dirty little secret of hundreds of colleges around the country. They are on the verge of going bust. Look at this list. These are colleges and universities, moodys, the Credit Ratings agency are financially stressed. Theyre not closing tomorrow but theyre in trouble. Institutions are varying sizes all over the country. Alabama, ohio new york georgia. The full list on my website, gerriwillis. Com. Parents and students would never know this when they send in their tuition check until it is too late and of course the college goes under. As happening most recently with Sweet Brier College in virginia. Heritage foundation chief economist and Fox News Contributor steve moore. Steve welcome back to the show. I want to share some of what moodys is saying about these schools. They have 18 they say are stressed. Well show more of those as we talk. But they said these are institutions that are financially, financially distressed, in trouble. They look at 500 institutions. Only 30 are ranked aaa. Here are more names right here. Doweling franklin pierce. On and on it goes. Do you think mom and dads across the country have any idea this is going on . I probably, i think they probably dont. What they do know is that the cost of college is so outrageously high it is bankrupting a lost families. Here is interesting thing about the list of schools. Ive talked to some administrators some of these. First of all, most of them are kind of small private liberal arts schools. A lot are very expensive. A lot are in 30 40 50,000 a year range when you include boarding costs. A question a lot of parents have to be asking, a is the College Going bankrupt, but, b is the degree you will come out with of any value . Is it going to be worth 150,000 or so four years tuition. Gerri that is a great question. In many cases it is no. These schools generally dont have engineering schools or technical training. That there is such a demand for in this economy. Gerri talk for a second about the longterm effects of this right . Go to school four years, even if you get liberal arts degree, you want to go back to that institution right . Want to become part of alumni. These are contacts you have for entire life. Not just 18 i talked about, okay . Moodys has i said is only looking at 500 of the 4500, 4500degreegranting institutions out there. Look at this list. I dont know if you have return but our viewers will see scores hundreds of literally of institutions. These are listed on d. O. E. , department of education website failing financial responsibility test. These are all schools your child could be enrolled in right now. They dont have any obligation to tell you about this. That they have problems. That they have issues. And this is something people need to know. You can see the list yourself on website student aid. Ed. Gov. What do you think families should be doing right now . You make very good point maybe you dont need college. Maybe you need to rethink college. What steps should kids be taking right now if theyre concerned . They should look whether the college is a bargain or not. Whether you are actually getting your moneys worth. A lot of those schools on the list you just showed, as i said, liberal arts schools. Theyre very expensive and they have declining enrollment. That is one of the reasons theyre facing financial stress. The schools on top of your list harvards yales and dukes northwesterns, schools like that have gigantic endowments, in billions of dollars. Harvard, my goodness, its endowment is so large, gerri they wouldnt have to charge tuition to students from now to kingdom come and use endowment to pay for it and still wouldnt run out of money. Rich man, poor man, really good schools. Reality is, schools on the list, the list is not that long my friend. There are lots of troubled schools out there. Parents need to know. Here is a clue, that think would work for a lot of people. If your private college is offering to discount your tuition by more than 46 theres a problem. At sweetbrier they were discounting tuition by 80 . They were so desperate to get people in the front door. As you said it is a liberal arts college but one with a very long history. 114 years. Many, many people knew about this school. Look, i used to date a girl from sweetbrier. I know the school really well. But i will say this. It wouldnt be such a terrible thing if a few of these colleges went bankrupt. Look, that happens in the private sector all the time. Gerri dont want it to happen to me when my kids are the in school. Of course not. Gerri theyre stroking checks right this very minute. Decision day is may 1st. My point is, that the colleges have to be more responsive to what the parents want. Kids need. And then they, they dont need degrees in the ethnic studies and psychology and sociology. They need to learning basic skills. Too many case, i have two kids in college. Im paying 80,000 a year for two schools. I wonder will they get a good job when they get out . Gerri flip side, you made a good point. Climbing wall. Omelette station at cafeteria. Sushi bar. Exactly. Gerri olympic size swimming pool. People mismanaged this money so badly. It has repercussions for taxpayers because kids are having debt forgiven. President is saying that is right thing to do. Do you agree . These schools become like resorts, not learning institutions. That is where all the money goes. I would say this im glad this report came out. What is lacking in universities today, i said this on your show