tv Forbes on FOX FOX Business May 18, 2014 9:00am-9:31am EDT
duration high yield bond fund. it pays a 3.7% yield so this is a good way to earn money on your investments. >> bond fund. what do you think? >> it's . a lot of triple b paper. it worries me a little bit. did we just get the smoking gun in the irs targeting scandal? newly released e-mails indicating thatargeting was indeed coming from tax officials in washington, not just rogue workers in cincinnati like we were told. >> an office in cincinnati. >> the office in cincinnati. >> people in the cincinnati office. >> in the cincinnati field office. >> so with all of the evidence stacking up, will the white house finally stop blaming cincinnati and start blaming washington or will a special prosecutor have to be brought in? hi, everybody. welcome to forbes on fox. let's go in focus.
steve, the white house sticks to its story. >> of course they're going to stick it to because the story is about to stick to them. this is one of the ugliest political scandals in history. they just didn't do it on their own. the commissioner of the irs, at least 120 visits to the white house. not just to visit the easter bunny on the easter egg hunt as he says he went there for. the chief of staff for the irs, upwards of 300 visits. this is going to get smellier and smellier and they're going to try to suppress it. >> why did they stick with that story when there's all of this evidence? >> why do i get the sense this is going to be a difficult day for me here today? i'm reminded of something my old good friend, the crisis manager points out which is if you have a problem, get it out. get it all out and get it out in front of the scandal. i don't know that we have a smoking gun here and let's do keep in mind that the objective
of the opposition has always been to pin this on the white house. that hasn't happened. not saying it couldn't happen. hasn't happened yet but none of this is helpful. why not just say what happened. >> it's trying to get to the truth of who started targeting conservative groups and of course the white house has said it was all in cincinnati. now we have these e-mails including one suggesting that various criteria be used to specify what the tea party is. they say do the applications, specify tea party. if not, how do we know the applicant is involved in the tea party movement. that comes from washington d.c. going to cincinnati. it's all coming from d.c. >> of course no serious person thinks that a field office in cincinnati concocted a plan to muzzle tea party groups. we know what haened. tea party groups very much influenced the 2010 elections. the democrats and the obama administration did not like
that. they decided in 201 behave to restrain them a little bit. we don't like what they did in 2010 so they put the irs on them. it does need to be investigated. >> actually it's laughable but it was just lois learner involved. in fact, some of the e-mails show that she was in touch with the justice department to try to actually prosecute some of these tea party groups. >> you're right. going back to your original anonymous question, i think you have to look at the overall trend in the obama administration when it comes to dealing with scandals to see why we're going to need a special prosecutor. they lied about obamacare. they never told the truth about benghazi. eric holder was held in contempt about fast and furious in mexico. so you have all of the things. they're never going to tell the truth. it's not in their dna. you're going to need a special prosecutor to get to the bottom of this. >> well, rich, we do have press conferences which white house officials including the president himself are asked whether or not this just came
out from cincinnati or whether anybody outside of cincinnati was involved. the next time they're asked that question with all of this evidence piled up, how can they still pin it on cincinnati? >> well, i'm afraid what you're going to get is what you got in benghazi where a white house smo spokesman says dude that was two years ago. this rises to a scandal that exceeds anything nixon has done. when you have lois lernor targeting debt or spending or the course of government. or when she is e-mailing with the department of justice saying we should throw one of these tea party groups in jail, maybe they'll all get the message, this is dictatorship. >> and that's exactly what our constitution was designed to oppose was using the powers of office to go after groups you disagree with politically.
>> absolutely. it guarantees freedom of association and they're talking about limiting free speech when it comes to campaign donations and the constitution has been held up repeatedly by the supreme court on that issue yet they turn around and give a blind eye which says people should be able to associate with whom they choose and what we have right now is very, it's a small sliver of what we actually know. it's been obtained through the freedom of information act and there's limits to what you can get. this is why we need a special prosecutor. >> counselor rick, what do you think of that. >> i don't know if i even followed all of that. i thought she was going to say something else and i was all ready for it. and she didn't. >> like what the fact that obama has an asteriks next to
legitimacy. >> i don't know why people get so freaked out about the idea. i was troubled at the initial reaction of the justice department to appoint somebody to look into this who we know has given money to the president's campaigns. shouldn't have been done that way. if the justice department can't do an investigation that you, david, will believe in, then do a special prosecutor. >> particularly, steve, the problem with that is it looks like lois might have been conspiring on issues of tea party people and investigations. >> that's why i don't like special prosecutors because they tend to run amuck but this is a case where you need somebody from the outside to do it. like in the case of watergate. that never would have come out if you didn't have special investigations and the nonchalant way the president went after bill o'reilly saying there wasn't corruption in this shows it stinks to high heaven. >> the president also tried to pin it all on cincinnati. if the white house comes out and says it's clear from the evidence we can no longer say it was just cincinnati, they have
to find somebody to throw under the bus. that's how things work in washington. are they going to throw lo lo lerner under the bus or who? >> somebody much much higher than her. the reason is basic. tea party impacted the 2010 elections substantially. they were muzzled in a way that may have impacted electoral outcomes and legislative outcomes. the idea that they would sit back and say you can give us a bureaucrat from the irs and that's enough isn't credible. >> right well. >> and specifically because it's not just lois lerner e-mails but members of congress. >> exactly. >> carl levin. >> 12 different groups he was trying to target. >> and he is con conveniently retiring. it makes you wonder is this a voluntary or is he the scoring position rangers official la-- ?
>> the reason they're not going to make her the scapegoat is she'll say i'm going to turn evidence because i won't go under the bus for this one. >> it's fair to say that this story is not over? that it's a lot more we need to discover about all of this? >> absolutely. that's why we need a special prosecutor. the real point here besides the the constant dishonesty that's come from the obama administration is what rich said. what they did here goes against the very essence and principles of the constitution. this is what dictatorships do in other countries. you need a special prosecutor to get to the bottom of this because it's so severe, david. >> we're not going to stop looking for the bottom of this case. thank you, gang. filling the potholes with plants. that's what this indiana state man did when he got fed up with the potholes. now some here will show him and d.c. how to fill them all up without putting a hole in our pocket boo
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to trap some carbs to help maintain healthy blood sugar levels. metamucil. 3 amazing benefits in 1 super fiber. i'll see you back here at 1:00 p.m. for america's news headquaters. now back to forbes on fox. well, folks, the roads are so bad out there that one indiana man is protesting all of those potholes by filling one up with a plant. his video going viral the same week the administration is pushing for more federal funding to repair our roads and bridges but rich you say we already have enough money for the potholes. >> yeah, we do.
what's really disturbing here is that in the 20th century we governed projects including the golden gate bridge, the interstate highway system and space travel putting a man on the moon. i don't know why the government is so screwed up but the fact of the matter is they can't. we need more private competition. i was on a private road from john wayne airport to another placcalifornia. it was a beautiful road. >> well, as rich suggested it's not rocket science filling potholes. >> there's a rare case where the unions, the big spenders and the president are all on the side of the angels. i think we should be putting unemployed construction workers to work and i don't quite agree with rich that the way to solve the problem of a rusting overpass is for google to build another overpass right along side of it so we can have competition. i don't think that's efficient. >> but sabrina, look at the money involved here. the billions and billions of tax dollars from our fuel, from our
car registration, from our tolls. it adds up to almost $100 billion there. there's over 100 billion. there's clearly enough to philport hol -- potholes, no? >> we have water mane breaks here in washington all the time that hold up traffic and cause lots of lost work hours but we need transparency an competition. there's a lot that can be done to make sure these projects are done correctly the first time. >> rick is just one word. misallocation. so many times when these hundreds of billions of dollars are misallocatedit doesn't take hundreds of billions of dollars to philpofill potholes. >> i'm with this guy. we should get an accounting of where the money has gone but what i do worry about is we're
going to points highliticize th argue about it that we're going into a third world infrastructure. go private or go public. i'll try it either way but let's not mess around with this too long. >> but the point is that the money is there. washington doesn't have a clue about how to fix potholes in indianapolis does it? >> no, and it was set up to maintain it and now give the money back to the states and the other thing to keep in mind is we don't have a problem with freight rail in this country. private sector does it very nicely. don't have a problem with packages with fed ex and ups. they do it nicely. when the private sector is involved the capital is there and maintained and innovation is brought in. do it with highways. >> these transportation bills are exhibit a with government waste and every politician padding his own constituent. >> i think the way to fix all the potholes is actually to
shrink the scope of the bill. we don't need the transportation bill to monitor car imports from mexico, the internet, and also be a bank as well and then try to create green jobs. we need to fill the potholes and we can do that. there's more than enough money if we focus. >> as long as we have focus and accountability. just have accountability and there's much less accountability coming from washington than there is from these localities. >> i'm not sure that allstate transportation departments are totally free of corruption. >> no, but they're better than the feds and they're closer to the actual potholes. >> when i drive along state and federal roads and look overhead at the rusting i think wow when is that going to fall on my head. we should be spending more money on this stuff. >> rich, go ahead. >> well, look, everybody is right here. you know, the u.s. is rapidly falling behind in infrastructure. you see it when you go to asia and land at the airports and go
on the higays and you come back here. something has to be done. but the government that was able to accomplish these great tasks is somehow incapable of doing it now. >> i cut you off. go on. >> i want to know what happened to the stimulus money. we had a trillion dollars supposed to go toward shovel ready jobs and solve our economic -- our jobless rate. so i'm just confused what happened to that money and now we're going to pour more money into this. >> that's a great question. i have, by the way, a pile in my office. i kept it ever since the stimulus came out about five years ago. it's not the whole thing but a big chunk of that stimulus bill was fixing potholes. >> it wasn't a trillion toward that. >> it was billions of dollars. >> a lot of it was tax breaks. where i lived in california we had a project going on in the city will that i could see every day was being paid for by that. what is is is important here is if we can sit here and argue
about this until the cows come home. people have to get concerned and serious about our infrastructure. people are going to get hurt. we're going to fall behind. >> but you put the pressure on the localities, right, steve? >> you get accountability. people can see it there as you see in indiana state in. that illustration is the best thing going. >> last word. thanks everybody. everyone is a buzz about jay-z and beyonce's privacy be invaded but should it be over who is collecting massive data on our kids in school? that's on cashing in. but first, lawmakers flying in style on your dime. is it time to ground their first class flight plans and toss them back i [ female announcer ] who are we?
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simple question, if our military has to fly coach, why shouldn't members of congress? this small group of lawmakers has a bill that will force congress out of first class and back into coach. sabrina, do you agree with this? >> i do. things have changed. in the early republic, lawmakers obsessed with their distinction were frowned upon and mocked by their peers. they have turned into little kings. we need to reign them in. >> don't we need a guy to stop these guys, many of whom are rich from flying first class. >> i don't want to see my tax money wasted either but do we
want more laws, regulations, statutes and rules. the answer is publicity. what if the entire budget of each congressman were available online and you could have the voters decide how they would like it. >> we're going to start right here at forbes by doing that because john has a perfect example of one member of congress, charlie rangel doing what? >> i was flying from jfk down to st. thomas and i look into first class and who is sitting there but charlie rangel. i want a law against me having to pay for this. beyond that, i think it should be painful to serve. it should not be full of perks to be in congress because that means they stay for life. we want them to leave as quickly as possible and join us so they don't spend our money. >> it's almost an insult to the founding fathers that we would have to write a law like this because they were against this sort of thing. >> absolutely. congress isn't supposed to do it but they find a loophole and they're taking advantage of it.
to bill's point, you have to have a firm law. they give plenty of laws to us and the other good thing of having him flying coach is they'll want to be in favor of performing air traffic control. >> and carrie, half of congress are millionaires. if they want first class they can pay for it. >> exactly. cry me a river. these people are wealthy. if they want to pay the differential, make hem do it. we're all about welfare reform and means testing. let's make flying first class means tested. >> i moe it doesn't in the grand scheme of things it doesn't add up to billions of dollars but people's trust in government is at a minimum right now. it's a matter of degree about how much they do. something like this would at least kind of reign them in a little. >> absolutely. it suggests to the american people that they don't take their job so lightly that they could be wasteful.
there are some good representatives out there. i sat on a plane with representative collins from mae and she was in coach with me. >> do we talk you into this? >> no more statutes. save me from the lawyers. >> it is true, we have enough laws as it is? this is something that maybe we just shame them the way you did with crlie rangel. >> bill has an excellent point. if they're spending our money i want a law against them spending our money so that they can live well. no thanks. >> steve, i don't know if you can shame these guys. >> charlie rangel is beyond shame and harry reid as well. it ain't going to work. >> coming up, a new report out saying more in the middle class can't afford to buy homes right here in the u.s. but our informers have stocks that will help you achieve the american dream. [ male announcer ] there is no substitute for experience.
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disappointing last quarter. they are going to be continuing to be disappointing. prices fell last quarter. >> two recommendations. two warnings. thanks guys. that's it for forbes on fox. ha wonderful weekend. the number one business block continues with eric bolling and cashin in. >> it's being called the worst prison break in american history. murders, rapist, kidnappers, and drug dealers walking free on the streets of america. they're out of jail and america is out of patience. >> plus, fast food workers want more, more, and more demanding higher wages as food prices soars. and then, private companies are spying on our kids and uncle sam is doing nothing to protect them. parents, pay attention. cashin in watching out for you starts right now.