Transcripts For FBC The Willis Report 20150510 : vimarsana.c

The author of clinton cash peter is here. Gas prices are revving up. Whats behind the jump in prices . Will it continue . Our users guide to real estate. Well show you amazing and inexpensive backyard makeovers. We were looking to create more playing area and more flat space in the backyard. And that morphed into hey, why dont we put a bar in and a barbecue. Gerri all that and more coming up on the willis report, where consumers are our business. We got a better jobs report today, finally. But the labor market is nowhere near Strong Enough to allow anybody who wants a job to have them. Certainly not a goodpaying one. While most of americans struggle to make ends meet tax receipts are at a record. The federal treasury is doing great. Chief economist john lonski and dan. Welcome to you both. John i start with you. So one fan, certainly of todays job report the market the stock markets. Big gain. About 2 . Nearly 300 points on the dow industrials. Take a look at these numbers. 233,000 is the addition in april. March revised lower to 85,000. What do you make of these numbers . The equity market liked the same thing that the treasury bond market liked. That was the report indicated only a modest increase by wage and salary income. The average hourly wage was up by a measly one tenth of 1 from the prior month. Only 2. 2 year to year. That tells me that the broadest . total of wage and salary income in the month of april grew by just north of 4 . Inflation risks are wellcontained. Therefore youre only going to see a modest rise by Interest Rates at worst. And the equity market, of course. Okay. Lets break that down. You covered a lot of ground there john. Dan, i told you in the hallway before the show. Larry summers saying that were in secular stagnation. Certainly, youve got to say if gdp were to be anything like the Second Quarter like it was in the first ultimately, we could have one step in a recession here. Yeah, we could be close to it. Picked on what john was i think suggesting. Were in a very pa adocksical situation. If the economy showed it were getting strong again, then the Federal Reserve would obviously get to the point where theyll raise Interest Rates off the zero bound at which point the stock market will tank. As it always does when the fed suggests theyll raise rates. We have a funny situation where as long as things are sort of staggering around at 2 growth asset prices are great. That suggests theres a disconnect here between Monetary Policy and the structural underlying strength of the economy. So i think Larry Summers is right to be concerned that were in this kind of longterm problem, where were just grinding it out quarter after quarter. Gerri grinding it out quarter after quarter. John, to you. You know, i believe that its very possible that we have 1 foot in a recession and we dont even know it. Thats whats going on. Thats behind the disconnect that john is describing. Whats your view . Heres what i think will happen. Not too long ago economists strongly believed that the Second Quarter growth rate would be in excess of 3 . Very shortly sometime next week, were going to find out that those estimates have been revised down to about 2. 5 . If that high. So for the year, were going to be looking at Economic Growth of less than 3 , tenth straight year. The equity market might like this. The bond market might like this. But the sad story is that this weighs heavily on middle class america. Lower Income America that were supposed to be helped by this administration. Gerri and lets talk about what really weighs heavily on these middle Income Americans. Wage growth is still weak. Up a tenth of a percent in april. 2. 2 in the year. Can we get anywhere without wage growth in this country . It will be very hard. The one figure not emphasized in this report the Labor Participation rate rose a tenth of a percent. It remains at the level Labor Participation, when jimmy carter was president of the united states. In the late 90s. Thats before women got into the work force. Youre turning the clock back so far. So many people are stopped looking for jobs or have jobs paying them less than they think or is equivalent to the education they have. So theres no animal spirits in the economy right now. Wellput. Wellput. John, to you. What does this mean for Interest Rates . When will the fed bump those rates higher in your view . At last look, the federal funds future contract believes that fed funds will be no higher than one half of 1 at the end of this year however it believes so with less conviction. It would not be surprising if fed funds finishes the year at only one quarter of 1 . Adding to what dan just mentioned. Since payrolls last peaked back in early 2008, we added 3 million jobs. Great news. Unfortunately, at the same time, the working age population grew by more than 10 million people. So you know that Labor Force Drop out that drop in the labor rate Participation Rate is why the Unemployment Rate is so low and for no other reason. Dan, i want to change up the topic a little bit. The federal government collecting more taxes in april than at any other month of any history of tax collection. The government collected 472 billion. Now, i realize its april. But this is an alltime high. Whats more, they couldnt even spend all the money they got. There was a surplus that some even though there that month even though there will be a deficit this year. Whats causing this increase in Tax Collections . The fact there are higher tax rates. I mean, obamacare imposed a 3. 8 surtax on Investment Income up to a certain level. They also imposed a surtax on the medicare payroll tax. And barack obama in the fiscal clip negotiations raised the Capital Gains rate from 15 to 20 . These higher rates simply take money off these sort of increased stock market values that weve all seen here the last couple of years. And it pours into the us treasury. Its pretty simple. Pretty simple. John, last word. Quickly. John well its so sad when you think about all the monetary stimulus and fiscal stimulus we had. Of course, now we have tax hikes. Somewhat of a drag. You also have a regulatory drag to consider. The in the final analysis over the past ten years payrolls have grown at perhaps the slowest rate over a tenyear span seen since the end of world war ii. This is a labor market that very much still suffers from a dearth of attractive job opportunities. Gerri john and dan, thank you so much for coming on the show. Have a great weekend. Now we want to know what you think. Heres our question tonight. Are record high Tax Collections robbing from Economic Growth . Log on to gerriwillis. Com approximate andandvote. Ill share the results at the end of the show. Start your engines. Road trip season. Millions more hitting the road. Will a rise in gas prices cause drivers to put on the brakes . Andy, thank you for coming on the show. So good to have you. These prices for gas are coming way off the lows. 31 . Gas prices up 30 cents a gallon in a month. Is this a typical kind of price hike we see in the summer . We usually see this preseason rally. Its been exacerbated by the fact that crude oil dropped. As weve seen the rig oil count decline by 50 . Crude oil moved to 60 a barrel. But its still good news for the consumer. Still good news for the consumer. All right. Explain this to me, if you will. So far this year, oil prices are up about 11 . But gas is up 30 . Why do these things want go in lockstep . Well, they dont go in lockstep because the market is looking at the upcoming gasoline demand. And were expecting drivers to really hit the road. And when we get to the Summer Season and just before memorial day is where gasoline prices tend to peak out. And the market looks around and says, you know, we have plenty of supply out there and its going to start coming off and pressuring prices. I think in a lot of ways people have sort of come to expect lower prices. Do you see any evidence that this is percolating through the economy anywhere . Well its probably percolating in a negative way here in houston, with the Lower Oil Prices because our economy here depends so much on the production side of things. But i think that, you know, a lot of people are benefiting. Theyre going out to eat more. Theyre spending more. And retail sales and things like that. So there are benefits. It just takes a while to accumulate because the consumer is saving only say 20 or 30 a month. Before they buy that big ticket item, it will take them six or 12 months to save it. The industry is expecting the biggest travel holiday over memorial day over some time. What kind of savings are people seeing . Well, you know, clearly were seeing a dollar a gallon savings since this time last year. Because gasoline is so cheap, its much less expensive for a family of four to start driving rather than flying. They go and stay in a hotel for an extra night. When i talk to my friends theyre talking about driving instead of flying. Were expecting a lot of traffic this memorial day holiday. So memorial day, what does the rest of the summer look for gas prices . The fall . Can you see on out that far . Well, it looks to me that gasoline prices are tick on up about five to 10 cents a gallon. But inventory and supply is about 6 higher than this time last year. Refineries both here in the us and in europe will be running at historically high rates. And well get all that extra gasoline coming over europe impacting supply and tempering prices for the consumer. I like that story. Andy, thank you for coming on. Good to see you. Thanks for having me. Gerri still a lot more to come this hour as we wrap up our week long users guide to real estate with a backyard makeover youll want to see. Its incredible. Next, all this week bill clinton has come out swinging against the hot new book clinton cash. Well talk to the author to get his reaction. Calling golf a game is like calling an astronaut a pilot. The word just doesnt have enough oomph to describe it. Golf lures you in with its fresh air and furry creatures. One minute youre on top of the world, next, youre on a dogleg left headed right. And you dont have to be superhuman to play. This game is for everyone. Theres a lot to love about golf. And all of us at the usga want to make sure it stays that way for years to come. Discover more usga. Org . The new book clinton cash is raising lots of questions over the financial dealings of the Clinton Foundation during hillarys tenure as secretary of state. And team hillary has been on an aggressive mission to debunk it. Its full of sloppy research and attacks pulled out of thin air with no actual evidence. Even the guy who wrote the book apparently had to admit under questioning that he didnt have a shred of evidence for this. He just sort of thought he would throw it out there and see if it would fly. And it wont fly. Joining me now the author of clinton cash. The untold story of how and why foreign businesses helped to make bill and hillary rich. Peter schweizer. So good to have you here peter. So you heard that sound. Sloppy research. Out of thin air. Not a shred of evidence. Obviously the clinton machine here trying to discredit you. But even you say you cannot connect all the dots. What are people to take away from your book . Peter i think what people are to take away from the book is theres lots of evidence in this book. Im not quite sure what interview bill clinton is saying when i admit to no shred of evidence. I show a pattern of money flowing to the clintons. And the people who sent the money to the clintons got favorable actions from Hillary Clinton as secretary of state. What i said is the evidence pattern here is far more compelling than in recent Corruption Cases in virginia, new jersey, out in oregon. My argument is that we need somebody with subpoena power with the capability to investigate this to do the due diligence. The facts are clear. They have not challenged the central facts in this book. Even some of the pushback theyve given is ludicrous. Its an attempt at misdirection and not focusing on the real hard facts here that are troubling and have been confirmed by a number of major media outlets. Gerri heres bill clinton talking about your book. Theres no doubt, in my mind, that weve never done anything knowingly inappropriate in terms of taking money to influence any kind of American Government policy. That just hasnt happened. What did you make of that statement . And particularly that phrase knowingly inappropriate. Yeah its interesting phraseology. Dare i say its clintonian. I would ask clinton when your wife the secretary of state was considering the xl Keystone Pipeline which she signed off on in 2011, why did you take 2 million from one of the largest shareholders in the keystone xl pipeline for speeches . They never paid you for a speech before. Suddenly now that she has this critical decision to make they decide to give you close to 2 million for speaking fees at the same time. And there are numerous examples like that in the book. Thats the thing i think thats so important. To get them to answer specific questions on the patterns that are in this book and explain why they were taking money and big paydays from people who needed Hillary Clinton to make decisions their favor. And, by the way, she did. We had dana on the show this week. She said the money that came from foreign governments to the Clinton Foundation was essentially just stealing money from what are often third world countries. And that, you know, morally theres an issue. Theres a problem with that. Do you agree . Peter i do. And, you know, one of the miscontraceptions peoplemisconceptionspeople have about the Hillary Foundation is that you have germany Media Companies providing the money. One of the things i point out in the book. You have a problem with undisclosed donors which we showed that they violated the agreement. When you look at the disclosed donors. Guys are doing business deals with warlords in africa. People that have been convicted on major criminal charges in europe that operate in nigeria that have made huge commitments in bankrolled speeches for clinton. You have to wonder why theyre taking money from these people. Why are they putting it in their pocket. Why are they putting it in the Clinton Foundation . Whatwhat do these individuals and institutions want in exchange . Theres certain evidence that they got favorable action from Hillary Clinton. Why are you taking money from these people . They wont answer that question. Gerri we made a simple judgment of the Clinton Foundation. We look at charities and how well they spend their money. When we dug into that, we found theres a puny amount of money going to the actual good works that the former president likes to talk about. Helping people in third world countries. Keeping people from starving. Aids. Very little goes to help people in poverty of that money. Youre right, gerri. If you look at the organizations that evaluate charities Like Charity Navigator go online, they rate lots of charities. They wont rate the Clinton Foundation because they say it has a, quote, unquote unique business model. Or you look at the Better Business bureau which them substantially. They have all sorts of internal control problems at this foundation. Charities are not difficult to run if you stay focused on actually trying to help people. The problem is, the Clinton Foundation is this sprawling entity that does all these things but its really impossible to measure how effective it is. Thats why i call it kind of a politicians dream. Because theres no way to really measure what they do. And thats part of the problem. Gerri one final question here. Peggy out with a column on your book and describing sort of the clintons in detail and how they operate. She says essentially that voters have normalized the clinton behavior and they think this is the way the clintons operate. Would you have guessed that your book would have had a bigger impact on polls. Because hillary may have slipped a bit. But shes not down a ton. Well i think if you look at a poll that came out a couple of days ago. I think it was the wall street journal nbc, it showed there has been a substantial jump in the number of people who think she isnt honest or trustworthy. Its well north of a majority of people in the united states. The actual poll numbers the horse race of the election, i dont know what those numbers mean at this point. Clearly on the issue of lack of trustworthiness. Theres a huge jump expect i think thats attributed to the book. The clintons say the book is a dud. It has no impact. Theyre attacking me. They put a two and a half minute video thats highly deceptive. You have president clinton thats sort of going after me directly. So clearly theyre concerned. And if you look at book sales and Mainstream Media coverage of the book. The networks, the new york times, clearly everybody recognizes theres a problem and that the book has uncovered some really substantial problems that need to be addressed. Peter, thank you for coming on the show tonight. Great to have you here. Thank you. Still to come, jeff flock takes us up to a job fair in gary, indiana. And the punches keep coming for manny pacquiao. He could be in the courtroom. Our legal analysts debate the case coming up. All right. Believe it or not there are unhappy boxing fans out there. Manny pacquiao claiming shoulder injury before getting into the ring with Strong Enough<\/a> to allow anybody who wants a job to have them. Certainly not a goodpaying one. While most of americans struggle to make ends meet tax receipts are at a record. The federal treasury is doing great. Chief economist john lonski and dan. Welcome to you both. John i start with you. So one fan, certainly of todays job report the market the stock markets. Big gain. About 2 . Nearly 300 points on the dow industrials. Take a look at these numbers. 233,000 is the addition in april. March revised lower to 85,000. What do you make of these numbers . The equity market liked the same thing that the treasury bond market liked. That was the report indicated only a modest increase by wage and salary income. The average hourly wage was up by a measly one tenth of 1 from the prior month. Only 2. 2 year to year. That tells me that the broadest . total of wage and salary income in the month of april grew by just north of 4 . Inflation risks are wellcontained. Therefore youre only going to see a modest rise by Interest Rates<\/a> at worst. And the equity market, of course. Okay. Lets break that down. You covered a lot of ground there john. Dan, i told you in the hallway before the show. Larry summers saying that were in secular stagnation. Certainly, youve got to say if gdp were to be anything like the Second Quarter<\/a> like it was in the first ultimately, we could have one step in a recession here. Yeah, we could be close to it. Picked on what john was i think suggesting. Were in a very pa adocksical situation. If the economy showed it were getting strong again, then the Federal Reserve<\/a> would obviously get to the point where theyll raise Interest Rates<\/a> off the zero bound at which point the stock market will tank. As it always does when the fed suggests theyll raise rates. We have a funny situation where as long as things are sort of staggering around at 2 growth asset prices are great. That suggests theres a disconnect here between Monetary Policy<\/a> and the structural underlying strength of the economy. So i think Larry Summers<\/a> is right to be concerned that were in this kind of longterm problem, where were just grinding it out quarter after quarter. Gerri grinding it out quarter after quarter. John, to you. You know, i believe that its very possible that we have 1 foot in a recession and we dont even know it. Thats whats going on. Thats behind the disconnect that john is describing. Whats your view . Heres what i think will happen. Not too long ago economists strongly believed that the Second Quarter<\/a> growth rate would be in excess of 3 . Very shortly sometime next week, were going to find out that those estimates have been revised down to about 2. 5 . If that high. So for the year, were going to be looking at Economic Growth<\/a> of less than 3 , tenth straight year. The equity market might like this. The bond market might like this. But the sad story is that this weighs heavily on middle class america. Lower Income America<\/a> that were supposed to be helped by this administration. Gerri and lets talk about what really weighs heavily on these middle Income America<\/a>ns. Wage growth is still weak. Up a tenth of a percent in april. 2. 2 in the year. Can we get anywhere without wage growth in this country . It will be very hard. The one figure not emphasized in this report the Labor Participation<\/a> rate rose a tenth of a percent. It remains at the level Labor Participation<\/a>, when jimmy carter was president of the united states. In the late 90s. Thats before women got into the work force. Youre turning the clock back so far. So many people are stopped looking for jobs or have jobs paying them less than they think or is equivalent to the education they have. So theres no animal spirits in the economy right now. Wellput. Wellput. John, to you. What does this mean for Interest Rates<\/a> . When will the fed bump those rates higher in your view . At last look, the federal funds future contract believes that fed funds will be no higher than one half of 1 at the end of this year however it believes so with less conviction. It would not be surprising if fed funds finishes the year at only one quarter of 1 . Adding to what dan just mentioned. Since payrolls last peaked back in early 2008, we added 3 million jobs. Great news. Unfortunately, at the same time, the working age population grew by more than 10 million people. So you know that Labor Force Drop<\/a> out that drop in the labor rate Participation Rate<\/a> is why the Unemployment Rate<\/a> is so low and for no other reason. Dan, i want to change up the topic a little bit. The federal government collecting more taxes in april than at any other month of any history of tax collection. The government collected 472 billion. Now, i realize its april. But this is an alltime high. Whats more, they couldnt even spend all the money they got. There was a surplus that some even though there that month even though there will be a deficit this year. Whats causing this increase in Tax Collections<\/a> . The fact there are higher tax rates. I mean, obamacare imposed a 3. 8 surtax on Investment Income<\/a> up to a certain level. They also imposed a surtax on the medicare payroll tax. And barack obama in the fiscal clip negotiations raised the Capital Gains<\/a> rate from 15 to 20 . These higher rates simply take money off these sort of increased stock market values that weve all seen here the last couple of years. And it pours into the us treasury. Its pretty simple. Pretty simple. John, last word. Quickly. John well its so sad when you think about all the monetary stimulus and fiscal stimulus we had. Of course, now we have tax hikes. Somewhat of a drag. You also have a regulatory drag to consider. The in the final analysis over the past ten years payrolls have grown at perhaps the slowest rate over a tenyear span seen since the end of world war ii. This is a labor market that very much still suffers from a dearth of attractive job opportunities. Gerri john and dan, thank you so much for coming on the show. Have a great weekend. Now we want to know what you think. Heres our question tonight. Are record high Tax Collections<\/a> robbing from Economic Growth<\/a> . Log on to gerriwillis. Com approximate andandvote. Ill share the results at the end of the show. Start your engines. Road trip season. Millions more hitting the road. Will a rise in gas prices cause drivers to put on the brakes . Andy, thank you for coming on the show. So good to have you. These prices for gas are coming way off the lows. 31 . Gas prices up 30 cents a gallon in a month. Is this a typical kind of price hike we see in the summer . We usually see this preseason rally. Its been exacerbated by the fact that crude oil dropped. As weve seen the rig oil count decline by 50 . Crude oil moved to 60 a barrel. But its still good news for the consumer. Still good news for the consumer. All right. Explain this to me, if you will. So far this year, oil prices are up about 11 . But gas is up 30 . Why do these things want go in lockstep . Well, they dont go in lockstep because the market is looking at the upcoming gasoline demand. And were expecting drivers to really hit the road. And when we get to the Summer Season<\/a> and just before memorial day is where gasoline prices tend to peak out. And the market looks around and says, you know, we have plenty of supply out there and its going to start coming off and pressuring prices. I think in a lot of ways people have sort of come to expect lower prices. Do you see any evidence that this is percolating through the economy anywhere . Well its probably percolating in a negative way here in houston, with the Lower Oil Prices<\/a> because our economy here depends so much on the production side of things. But i think that, you know, a lot of people are benefiting. Theyre going out to eat more. Theyre spending more. And retail sales and things like that. So there are benefits. It just takes a while to accumulate because the consumer is saving only say 20 or 30 a month. Before they buy that big ticket item, it will take them six or 12 months to save it. The industry is expecting the biggest travel holiday over memorial day over some time. What kind of savings are people seeing . Well, you know, clearly were seeing a dollar a gallon savings since this time last year. Because gasoline is so cheap, its much less expensive for a family of four to start driving rather than flying. They go and stay in a hotel for an extra night. When i talk to my friends theyre talking about driving instead of flying. Were expecting a lot of traffic this memorial day holiday. So memorial day, what does the rest of the summer look for gas prices . The fall . Can you see on out that far . Well, it looks to me that gasoline prices are tick on up about five to 10 cents a gallon. But inventory and supply is about 6 higher than this time last year. Refineries both here in the us and in europe will be running at historically high rates. And well get all that extra gasoline coming over europe impacting supply and tempering prices for the consumer. I like that story. Andy, thank you for coming on. Good to see you. Thanks for having me. Gerri still a lot more to come this hour as we wrap up our week long users guide to real estate with a backyard makeover youll want to see. Its incredible. Next, all this week bill clinton has come out swinging against the hot new book clinton cash. Well talk to the author to get his reaction. Calling golf a game is like calling an astronaut a pilot. The word just doesnt have enough oomph to describe it. Golf lures you in with its fresh air and furry creatures. One minute youre on top of the world, next, youre on a dogleg left headed right. And you dont have to be superhuman to play. This game is for everyone. Theres a lot to love about golf. And all of us at the usga want to make sure it stays that way for years to come. Discover more usga. Org . The new book clinton cash is raising lots of questions over the financial dealings of the Clinton Foundation<\/a> during hillarys tenure as secretary of state. And team hillary has been on an aggressive mission to debunk it. Its full of sloppy research and attacks pulled out of thin air with no actual evidence. Even the guy who wrote the book apparently had to admit under questioning that he didnt have a shred of evidence for this. He just sort of thought he would throw it out there and see if it would fly. And it wont fly. Joining me now the author of clinton cash. The untold story of how and why foreign businesses helped to make bill and hillary rich. Peter schweizer. So good to have you here peter. So you heard that sound. Sloppy research. Out of thin air. Not a shred of evidence. Obviously the clinton machine here trying to discredit you. But even you say you cannot connect all the dots. What are people to take away from your book . Peter i think what people are to take away from the book is theres lots of evidence in this book. Im not quite sure what interview bill clinton is saying when i admit to no shred of evidence. I show a pattern of money flowing to the clintons. And the people who sent the money to the clintons got favorable actions from Hillary Clinton<\/a> as secretary of state. What i said is the evidence pattern here is far more compelling than in recent Corruption Cases<\/a> in virginia, new jersey, out in oregon. My argument is that we need somebody with subpoena power with the capability to investigate this to do the due diligence. The facts are clear. They have not challenged the central facts in this book. Even some of the pushback theyve given is ludicrous. Its an attempt at misdirection and not focusing on the real hard facts here that are troubling and have been confirmed by a number of major media outlets. Gerri heres bill clinton talking about your book. Theres no doubt, in my mind, that weve never done anything knowingly inappropriate in terms of taking money to influence any kind of American Government<\/a> policy. That just hasnt happened. What did you make of that statement . And particularly that phrase knowingly inappropriate. Yeah its interesting phraseology. Dare i say its clintonian. I would ask clinton when your wife the secretary of state was considering the xl Keystone Pipeline<\/a> which she signed off on in 2011, why did you take 2 million from one of the largest shareholders in the keystone xl pipeline for speeches . They never paid you for a speech before. Suddenly now that she has this critical decision to make they decide to give you close to 2 million for speaking fees at the same time. And there are numerous examples like that in the book. Thats the thing i think thats so important. To get them to answer specific questions on the patterns that are in this book and explain why they were taking money and big paydays from people who needed Hillary Clinton<\/a> to make decisions their favor. And, by the way, she did. We had dana on the show this week. She said the money that came from foreign governments to the Clinton Foundation<\/a> was essentially just stealing money from what are often third world countries. And that, you know, morally theres an issue. Theres a problem with that. Do you agree . Peter i do. And, you know, one of the miscontraceptions peoplemisconceptionspeople have about the Hillary Foundation<\/a> is that you have germany Media Companies<\/a> providing the money. One of the things i point out in the book. You have a problem with undisclosed donors which we showed that they violated the agreement. When you look at the disclosed donors. Guys are doing business deals with warlords in africa. People that have been convicted on major criminal charges in europe that operate in nigeria that have made huge commitments in bankrolled speeches for clinton. You have to wonder why theyre taking money from these people. Why are they putting it in their pocket. Why are they putting it in the Clinton Foundation<\/a> . Whatwhat do these individuals and institutions want in exchange . Theres certain evidence that they got favorable action from Hillary Clinton<\/a>. Why are you taking money from these people . They wont answer that question. Gerri we made a simple judgment of the Clinton Foundation<\/a>. We look at charities and how well they spend their money. When we dug into that, we found theres a puny amount of money going to the actual good works that the former president likes to talk about. Helping people in third world countries. Keeping people from starving. Aids. Very little goes to help people in poverty of that money. Youre right, gerri. If you look at the organizations that evaluate charities Like Charity Navigator<\/a> go online, they rate lots of charities. They wont rate the Clinton Foundation<\/a> because they say it has a, quote, unquote unique business model. Or you look at the Better Business<\/a> bureau which them substantially. They have all sorts of internal control problems at this foundation. Charities are not difficult to run if you stay focused on actually trying to help people. The problem is, the Clinton Foundation<\/a> is this sprawling entity that does all these things but its really impossible to measure how effective it is. Thats why i call it kind of a politicians dream. Because theres no way to really measure what they do. And thats part of the problem. Gerri one final question here. Peggy out with a column on your book and describing sort of the clintons in detail and how they operate. She says essentially that voters have normalized the clinton behavior and they think this is the way the clintons operate. Would you have guessed that your book would have had a bigger impact on polls. Because hillary may have slipped a bit. But shes not down a ton. Well i think if you look at a poll that came out a couple of days ago. I think it was the wall street journal nbc, it showed there has been a substantial jump in the number of people who think she isnt honest or trustworthy. Its well north of a majority of people in the united states. The actual poll numbers the horse race of the election, i dont know what those numbers mean at this point. Clearly on the issue of lack of trustworthiness. Theres a huge jump expect i think thats attributed to the book. The clintons say the book is a dud. It has no impact. Theyre attacking me. They put a two and a half minute video thats highly deceptive. You have president clinton thats sort of going after me directly. So clearly theyre concerned. And if you look at book sales and Mainstream Media<\/a> coverage of the book. The networks, the new york times, clearly everybody recognizes theres a problem and that the book has uncovered some really substantial problems that need to be addressed. Peter, thank you for coming on the show tonight. Great to have you here. Thank you. Still to come, jeff flock takes us up to a job fair in gary, indiana. And the punches keep coming for manny pacquiao. He could be in the courtroom. Our legal analysts debate the case coming up. All right. Believe it or not there are unhappy boxing fans out there. Manny pacquiao claiming shoulder injury before getting into the ring with Floyd Mayweather<\/a> in last weekends boxing fight of the history. Medical lets and criminal defense attorney, and okay. Do they have a standing. Absolutely they do. I think it was 99. 95 thats a lot of money to spend millions of them did. And they bet a lot of money, and then they got it wasnt even the best fight of the night; right . Its not these guys fault. Oh, yes, it is. It is fraud because he knew going into that fight that his shoulder was all messed up. He was you know, he wanted wait a minute this no, one more second. And he signed on this form under penalty of perjury that, no, come on that is fraud. This suit gets knocked out in the first round. We expect our athletes to be warriors theyre going to have. No. Theyre going to have problems. Every single time; right . Every team has players with hurt arms. Dont sign a form that says under penalty of perjury i have no shoulder injuries. Yeah. But when we sign up for these take a look at it events, we want to be entertained, people were not in this fight and now people to want sue thats ridiculous. Its a bad fight everyone gets that, but he lied about it. John, let me ask you this. So you have represented sports figures before. Never. These suits get filed they get dropped out. In pacquiaos case, he went to see a doctor before the fight. He had a doctor examine him they had a approach to take before the fight. He did everything he could. So then why is he asking for all the drugs right brit fight. Why does he need those drugs so much . Liked an aspirin. Yeah. Like a really good major aspirin. The punch count was had a of what it usually is. Does that suggest something . He could have got hurt in the fight. I could have done that fight and done better for about has been. That might be a stretch. That might be a stretch. B fraud in the inducement, its misrepresentation, all those legal terms out there because they apply and california and illinois all forget. No. Suit has ever succeeded. If this happened in every game, there are going to be lawyers who are suing athletes saying, you know, what . This is awful something was wrong. You stubbed your tow. No, its time for judge willis. No. No. Boo. These people are just pissed because they lost money. By false inducement, if he didnt sign that form, i would agree with you. Stop betting. I didnt watch the adorn thing, but i feel bad that these people did and paid 99. 95. Do you think books boxing is going to be fair and email are going to tell the truth . Come on, people, no, thats not right. But youre saying if he signed if he signed that form and said im not hurting under penalty of perjury. We want who gets the last word, ruled for it. And because he won. Athletes are warriors, not wimps. Wow that was eloquent and short. Okay. , john and lisa, come back. You can win next week. And later in the show why starbucks hot coffee might have landed them in hot water. And you heard from the economist, now hear from the job seekers themselves. Well head to a jobs fair in gary indiana after the break . Welcome back to the willis report. In a moment ill look at what it is really like for a jock job seeker right now but time for other stories in the news. Saudi arabia declaring a ceasefire the five day ceasefire was announced during a joint News Conference<\/a> secretary of state john kerry. He says this means it does not call on the hewitt hutus in the part, and the manufacturing plant as far back as 2013. But according to a government probe, after what the fda says was inadequate cleaning, the company continued to ship ice cream produced in that plant. Bluebell resilient pulled all its products from the shelves and said it will be months until they return. New england store is still digesting deflate gate report, brady making his first appearance he likely through through the championship. He said he would comment at a later time. And subtropical storm and look at that, like that first named storm of the 2015 hurricane season. It is expected to hit the carolinas this weekend and is going to bring up to four inches of rain. And those are some of the stories in the news tonight. Well jobs numbers out today, you saw those. The labor market is improving but what is it really like for americans actually looking for jobs right now. Jeff is at a jobs fair where hundreds of folks showed up hoping to be one of the 40 hired on the spot by an expanding industrial company. What are they tell you . Its raining right now, but they were out here by the hundreds for a very limited number of jobs. Take a look at the pictures. The lines stretching out into the street. I tell you. A lot of people unemployed. You know, its fascinating to spend a day at a job fair where you talk to nothing but people who are unemployed. We talked to the mayor, by the way, shes a democratic, but she said what we had been saying on fox business for quite sometime now, was that the unemployment number doesnt really reflect reality. Its always been our position that the reflected Unemployment Rate<\/a> that is published, 8 , 9 , is a gross under estimate. So when you see people show up in these types of numbers to a job fair, it confirms that the least. But at the same time it also shows that we have a city of individuals who are ready to work. And that 8 or 9 , by the way, thats the Unemployment Rate<\/a> here in gary. She talked to people who were ready to work. We talked from to everyone from convicted felonies to gang members to guys who had just gotten laid off. You could hear the father in one mans voice as he was struggling to get back to work to be able to provide for his family. Its been tough. Not too many jobs out there so im just trying to get whatever i can get with and try to grow with whatever company i can get with. Take a look at the numbers you know, on because talk about the numbers not really reflecting reality. The Labor Participation<\/a> rate. You take a look at those numbers, gary. Year over year, no change. Its about 62 . That means 93 million americans, Record Number<\/a> this month, are not in the labor force. Not getting counted as unemployed because theyre not actively looking for a job. Theyve either dropped out of the labor force or been discouraged. Its a incredible number when you think about it. Jeff, how long were some of those people in the line out of a job . Are they long term unemployed . Some of them are. A lot of them here, particularly in gary where its been economical depressed for a long time, and some people like i said i talked to a convicted felony, he said it had been tough but is some people not out of work very long and were pretty accomplished and had a pretty good work record. Thank you for that report with purchase i appreciate it. You too gerri. Well, were wrapping up our rather within the only the best upgrades to boost your homes value but also the upgrades that buyers love. And one new jersey homeowner was sick and tired of his yard that caused his house to flood, so he did something about it. We have the backyard make over that youve got to see to believe. And heres the consumers gauge that means the most to you. Hello i was trying to fix all the things that were going on, especially when it came to ryans daydreaming and inability to focus on her homework, and tears, a lot of tears. Why are you laughing . Its so true. It was just frustrating to get my mom to understand really what i was going through. And thats when i thought there must be Something Else<\/a> going on. So thats when we talked to a doctor and she was diagnosed with adhd. It just explained so many things for us and it makes things a lot easier. A lot easier. And when you have information, when you know better you do better. You know, and i feel like that really made a difference. Yeah, i agree. Hyperactivity isnt the only symptom of adhd, since inattentive symptoms like ryans, can be less noticeable, its important to learn more. Get the adhd symptom checklist at keepmomming. Com to get started. Then talk with your daughters doctor. Keep momming. From drab to fab, tonight the users guide to the spring Real Estate Market<\/a> diving into a backyard make over were going to see just how much value you can add to your home. You wont believe the before or after pictures we found. Michael knew he had a fixerupper on his hands when he bought this transitional style home in 2006. His backyard made it virtually impossible to use and opened up a whole pandoras box inside the house. Some of the issues we saw were drainage issues. Former home inspector said michael made the right decision to make over the backyard to make the backyard more at bay. Right now we see retaining walls and the slope makes it really difficult to use the backyard. Flooding is an issue because water runs downhill. And in this case it ran down the hill and flooded into the house. In october of 2012, super storm sandy slammed into the east coast reeking havoc on millions of homes including michaels, trees were down in the back and front yard where draining problems quickly became parent as well. What they found is that the gutters werent really extended, and thats a real kwee key. It almost comes down to roof and gutter control, because that runs down the roof and typically those spouts are extended out one to two tv. Really bad idea. You want to take those out four five, six feet from your house. The initial budget of 28,000 was spent in a flash. We were looking to create more playing area and more flat space in the backyard, and that morphed into, hey why dont we put a bar and barbecue. He spent over 25,000 and an 85 increase but michael says hes pleased with the final results. For the most part, i think we got our moneys worth in the end. We are actually able to use our play set with the kids, flat playing area for them, and we created another room for obviously. Now if youre worried about buffeting your budget, tom says hiring a Landscape Architect<\/a> is well worth the extra money. As you see things youre making changes those changes are very expensive and if you make a mistake along the way then youre going to be redoing something with so a architect in that planning is really really good. Also picking materials to stand the test of time. Always thinking about the on going maintenance is really important. So, for example choosing composite decking, a lot of work versus a little work. On the masonry side, making sure that the water doesnt fall, and then the Material Selection<\/a> for long term durability is important. If viewers at home were considering a backyard make over tom says a back deck is a great place to start. You look at a deck in the new york area, just putting the deck on, do you know what the return of invest is on that . 100 . And the National Average<\/a> is 80 . So what about what about the Swimming Pool<\/a> . Is it really worth it when you resell . You know, i spent 20 years as a home inspector and ive got to tell you as many folks love the pools have hated it. Many times clients and how to from the pool in. So if you happen to find a buyer that loves the pool, youre in, but if you have a buyer that has Young Children<\/a> and theyre concerned about the safety then it becomes a detriment. So whats next for these new jersey homeowners. We think we have our next bang for our buck outside the next step is to really do inside the house. So we are moving indoors tonight to see which upgrade homeowners the most when they try to sell. Founder of the money pit hes right here now. We had him on the package here he is on set with some great friendly advice. Tom, that was just great stuff. It was fun to see what had were doing. Yeah. I really enjoyed it. Lets talk about inside. Its just my point of view that you shouldnt wait until youre going to sell to make the upgrades you need ambushed enjoy them too. Well, absolutely and if you want to talk about upgrades that give you the best return on investment, installing a new front door always does. You get the safety and the security. You get increased curb appeal, and if you go with steel front door its more than 100 , but fiberglass you dont have the rust issues. 100 , this isnt on every project you do. Right. Lots of them are lowering than that. You like replacing the garage door. Yeah. It takes up a third of your house so you want it to look great the roi about 88 , thats really good. Were going to talk about the kitchen because thats my favorite place to be. Yeah. And your major remodel which could be 56,000. Yeah. A minor remodel is less. What are the on comments of each of those legislature heres the surprisingly thing about major versus minor. The major remodel gives you 67 percent, the major is 87. So youre figure out and astarting from scratch. Maybe youre replacing the countertops, upgrading the appliances, improving the lighting. You know, you dont have to spend a lot of money to get a pretty good return. I love that. Lets talk a little bit about the Home Improvements<\/a> that people make that they shouldnt. Right. Heres a real surprise from 2014 to 2015. One improvement that had the biggest gabe in 2014 also had the biggest reduction in 2015 within and goes to was installing a back up generate. What . Well, think about it, we hurricane sandy, if you had one in your house, it was going to be a lot of roi and its a big difference from last year. And i think thats something a lot of people dont understand. Every year that list is different. Thats right. With homeowners value, what they dont value. Yeah. It changes over time. You say eliminating a room or closet not a good idea. Well, any time you get criticized rid of a bedroom the appraisers are coming in to value theyre looking for how many bedrooms bathrooms if you get rid a bathroom, lets say you combine to a small rooms into a bigger room, unless you plan on being in that house for a long time, i dont think thats a good idea. If youre going to get Something Like<\/a> a home office, not a good roi but if you tell putt it in a room that you can convert back and you cant get hurt. So one thing to Pay Attention<\/a> to is over spending. Yeah. You dont want to be the most expensive home on the block. No. If you build a great house on a street full of ranches, its not going to pay off. I love that. Return on investment. People dont think about it. You need to know how much youre going to spend. Absolutely. Thank you so much and thanks for the help on the package. Thank you. Coming up next the cop suing starbucks to a Bank Robbery Suspect<\/a> maintaining his innocence guessed please. There he is right there. Yes, another starbucks lawsuit over a hot coffee spill. And a bank robber who says the stick up is not a stick up if you just and nicely. Those are a few of the stories this week with what is now personal expert. Larry, so good to see you on a friday my friend. Lets talk about this cop in north carolina. The co. Walks into a starbucks, it sounds like like a joke. Gets the coffee, its, oh, by the way free, spills it in his lap gets third degree burns, and says hes suing for 50,000. What do you make of it . Well, first of all i hate to have to say that hes a cop. I think that maligns cops everywhere adjudicating has been lets just say this guy spills his coffee in his lap. Yeah. And its free,. The words in that sentence is he spills coffee in his lap. He did this. No one did this to him. Thats a good point. And he said he knew it was going to be hot, but he didnt know it was going to be that hot. Theres a better way to measure hot versus than that hot than pouring hot coffee on your crotch. So i hope he doesnt get a dime on this thing. And what i really hate are the damages, when his wife said he lost his intimidate partner that was too much for me. Lets move on. A virginia mom wom is suing verizon for 2. 5 million dollars. She said the Customer Service<\/a> call gave her a heart attack. She said the stress was caused because she was afraid that the police were going to come and arrest her after she told the Customer Service<\/a> republican that she wanted to kill her and the Customer Service<\/a> republican says im going to call the police. Listen she brought this on herself. First of all, i am tired of a society that wants someone else to pay for their own stupidity and their mistakes and yet these two stories are perfect examples of that. On the other hand the lesson here could be that Customer Service<\/a> could give you a heart attack. I am hello. It could cause brain damage larry, i never picked up the phone and said, please, help me. Dont put me into the decision tree. [laughter] ive had my issues with verizon too. But come on. If you give somebody else like that power to give you a heart attack youve given them too much power. We have a good news story and on the sa agent returns his 100,000 watch were never nice to tsa lets be nice to tsa. No. Lets not. Lets not even recognize the fact that we are honoring somebody for being honest. Its a darn shame when we have to point out that somebody did the right thing, and it wouldnt matter if it was a 10 watch or 100,000 watch an employee that were taking repaying that an employee did the right thing and was honest. We shouldnt even know about this story. So im not given him too much credit yet. He were the right thing and he should have done it. Larry. Yeah. Thank you. It was fun. Have a good weekend. Thanks. You too. All right. Well be right back with the answer it of the question of the day. Our irs tax corrections robbing from Economic Growth<\/a>. Stay with us gerri our federal government set a record tax haul in april taking a half trillion dollars in one month. Record high Tax Collections<\/a> robbing from the countrys Economic Growth<\/a> . 96 of you said yes. 4 said no. And today marks the 70th anniversary of victory in europe. Commemorating the end of world war ii. To honor that anniversary dozens of vintage military aircraft from world war ii flew over the nations capitol. Hundreds of veterans joined with speculators to see the planes to recognize the major battles of the war. Flyovers happened occasionally after the war. Flights over the mall are generally prohibited. Thats it for tonight,s willis report. Thanks for joining us. Dont forget to dvr the show. Making money with Charles Payne<\/a> is coming up next. Have a great weekend. Neil welcome everybody, im neil cavuto. And america we have a problem. A trust problem. Across the nation, were seeing a loss of faith in all our institutions. Among all political ties. Investors burned by the financial crash staying out of the stock market. Homebuyers singed by the real estate meltdown staying out of the housing market. A generation of kids exposed to both showing little interest in either. Trust and institutions town. Their faith in marriage itself at an alltime low. 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