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tv   After the Bell  FOX Business  May 14, 2015 4:00pm-5:01pm EDT

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liz: avon investors get "punk'd." it was a fake press release. totally bogus that shot the stock up 20%. [closing bell ringing]. had to be halted. avon still closing slightly higher, david. david: bells close on wall street. looks like it. s&p is closing in on a new record. 2120. last record was 2117. we are three solid points into a record on s&p. not so the dow. nasdaq also did higher before. russell 2000. is 275. no miss on the russell. at least one out of four. that ain't bad for records. >> the fear index down 7%. david: huge drop. liz: calm waters bring us a record. after the bell starts right now. liz: let's get to today's market action. ken mahoney is to tell us why
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the u.s. is the best place to invest right now. joe franklin, franklin wealth management will tell us which opportunities he finds. where the u.s. or overseas? anthony creveli from the cme. anthony, we'll start with you. good data from first time jobless claims but what drove such a strong rally i guess you could say? >> let's begin with at that, with the bonds. we've been seeing this a lot. 10-year and 30-year bonds we get bad data, or soft data. then they rally and come right off. i woke up this morning, 10 and 30-year bonds were not going any lower. we stopped seeing selling pressure. they were up a little bit. you look across the board, since that is not happening they come in to buy stocks. i want to take this a little further. i want to talk about the dollar. not only with the 10-year and 30-year bonds selling off lately, that is a concern but notice how the dollar has not
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been rallying? it doesn't really make sense. going forward i will continue to watch the 10-year and 30-year. if they start to sell off, if they continue the selloff and continue to react the way they have been to bad data. we start to see the dollar rally. i think this rally in the s&p or this rally in the stock market can be short-lived. david: anthony, we let you go on, nobody says bonds the way you do. we love your chicago accent. ken, i want to get to you, whether the market is getting a little ahead of economy. we have weakness in the economy. that might be good for rates. the bank might delay raising rates. is the market ahead of the economy here? >> i don't think so. one thing we watch very closely as we mentioned is the volatility coming down, for some traders they don't like the low volatility, can't make as much with the low volatility. we've been talking about buying the dip and selling last couple years. question is how do you time it? the way we time it we look at
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the volatility index and say you know what? volatility index spikes into some fear. we'll take some chips off the table. we'll recognize it is kind of risk off again. but for now, low volatility is helping stocks. we'll stay long. we recognize the economy is going through a whole bunch much different changes but neat it we see constructive. advance-decline line is strong an volatility in the markets. >> we can't stress enough, another record high for s&p 500. that brings me to joe. where are you bullish, where are you bearish? >> even with the stock market with all-time high in the s&p 500 we still feel like this is a stock-picker's market. we're particularly bullish overseas, particularly in europe. european central bank and bank of japan have been buying hundreds of billions of dollars worth of bonds, every quarter over the last couple years. and they're continuing to do that. european, the mario draghi,
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spoke in washington earlier today. he committed to $1.2 trillion worth of stimulus. and, with that, and with, the valuations as low as they are versus the u.s., over the last 30 years, the valuations here in the u.s. are the highest they have ever been versus europe. europe is cheaper than it has been since the '80s. liz: okay. >> we feel like there is a big opportunity there. david: anthony, we mentioned volume was a little low today. we did see this major drop in the vix. it was down about 7%. is the market on target with that? is, are we expecting this low volatility for a while here. >> this is, this is continued theme. there has been lower volume on highs. i'm one of those people, i'm not in the camp that lower volume doesn't mean we can't go higher. i just think because we saw, i really go back to the fear factor right? you're talking about the vix. and i think the vix rallies when there is uncertainty and when
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you see tens and 30-year bonds sell off the way they have been. when you see the type of action i think drives vix up because people get nervous. what is the number one concern? rates go up too fast. when that starts to simmer, the bonds stop selling off. they come in rand buy the s&p. liz: ken, we had a trader last hour say, whatever you do, don't short the market t might catch you flat-footed. i guess you feel the same way? what do you buy? >> that is old wall street saying, don't short a dull market. this is kind of a dull market. one thing i do notice in the market we're making fresh highs in the s&p 500. we also have a way to have amnesia. one day we're up 250 points. hoping for follow through. next day we kind of forget about it and shoot to the downside also. if you're a little bit concerned about the market, want to stay long, get a little more
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defensive. one area we like is health care. the reason we like health care, a lot of consolidation. you have to get big to have earnings in the health care space you have to have economies of scale and see consolidation. if you want to stay in the market, come down with beta. take volatility in the positions. that is a place we like to stay long but a little bit less beta. david: ken, thank you very much. joe franklin, anthony, good to see you all. thank you. >> thank you. >> while at the same time acknowledging the near miracle of survival that we experienced with over 200 people here in our city. liz: that was philadelphia mayor michael nutter earlier today acknowledging the survivors of the tragic amtrak train derailment. there are now eight dead. david: with us one of the survivors. he was on the train the other day and saw it all happen. douglas, thank you very much. have you calmed down a little from the experience? >> yeah. david: unbelievable experience.
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what was the first sign that you felt or saw that something was wrong? >> all of a sudden there was just a big bump on the train. it felt like we hit a pothole or something. there was -- david: felt like you actually went over something? >> yeah. something like that. i didn't think of it. i couldn't really tell that something was wrong until a few seconds later when we actually started veering off the track. liz: then what happened? you were what, at second to last car of the train, correct? >> yes. liz: then what happened? >> it was then about 10 seconds until, or that's what it felt like until the train came to a stop. and after that, it was total chaos. people were yelling different things. some people were looking for lost belongings, glasses, wallets, phones, shoes. other people were trying to find the nearest emergency exits. they were able to get a small window open. david: before that happened,
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were people literally flying in the air? >> yes. one woman was i think came from behind me and thrust on top of me. she was screaming at top of her lungs during those 10 seconds. afterwards, there was an elderly woman who, she was conscious but she was clearly in a state of shock. she was barely moving. i asked her if she was hurt? she said she didn't know. she just laid down with her eyes closed. >> when you're in that situation, is your first inclination to quickly try to rush an get off the train? there is something a fear that something will blow up or fire will start or were you almost paralyzed with fear? >> i was pretty paralyzed. first thing i did i called my mom to let her know i was okay. i assumed she would see it on the news. liz: okay. what did she say to you when you called? >> she said stay calm. try to help out anyway you can. david: there has been a little bit of controversy what happened on the train, how helpful or unhelpful people were.
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were folks, according to what happened with you, and people around you were they doing best to help each other or every person for themselves? >> i would say kind of a mixture. some people were saying, don't worry about injured people, let's get off the train. some people said, get them water. is anybody a doctor. so it was mixed. liz: lose wires, luggage everywhere, mayhem. what were you reaching for? >> sorry? liz: what were you reaching for? there is that inclination to grab your cell phone. you said you called your mom. but then were you trying to sort of reach for other people to help them? >> so i was fortunate i had my knapsack next to me with all my valuables in it. i think everybody, most people realized that the last concern would be to get our stuff. we just wanted to get everybody off the train safely. liz: how do you know you weren't hurt? >> well, i did, my legs were pressing up a little bit against the seat in front of me.
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so i did have a little bit of bumps and from that but nothing else was bothering me. david: amazing. you were a very fortunate man. as you know the engineer took the train much too fast through the curve, twice the speed for a curve like that. did you get any sense before you felt that bump that the train was going too fast? >> i personally did not notice it. however after the accident, i did overhear passengers saying i noticed we were going really fast. david: even before you got into that curve? >> yeah. david: looked like this might have been, guy was just going too fast? >> very possible. david: douglas, you're very fortunate man. i know that you know that. i'm sure your family is very happy to have you here safe and sound. thank you very much for joining us. >> thank you for having me. liz: thank you so much. of course, thank you. we have breaking news here. he is used to playing against a countdown clock. today was no different for patriots quarterback tom brady. just by a whisper the players
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union filed an appeal of brady's four-game suspension by the nfl. with 17 minutes left the appeal came in. given the nfl history of inconsistency and arbitrary decisions in disciplinary matters it is only fair that a neutral arbitrator hear this appeal. there you have it, tom brady is expected, and has expected, and did appeal the nfl punishment. david: the question now, what kind of actions might be taken to lessen the punishment itself? there was a four-game suspension. some people think perhaps he will get a little bit less than that. there may be bargaining here. meanwhile mortgage rates continue to decline. they're at two-month high as we head into the spring buying season. is now the time to jump in or rates getting ready to drop again. liz: we have the direction. the attention turns to the man on your screen, the engineer of the derailed amtrak train.
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we wanted to know what does it take to be a train engineer? what could have happened behind the controls? we have an inside look into the training and life of a train engineer. that is straight ahead. david: also politicians are starting to point fingers why the amtrak derailment happened. does placing the blame on a party work or could it create a political backlash? our panel handles that. liz: the bee industry getting stung badly. will it mean higher prices for you? details straight ahead. ♪ ♪ ♪ the ones with the guts to stand apart - join a league all their own. ♪
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call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. david: you might have guessed mortgage rates on the rise for a third straight week as we see those yields going up. freddie mac 30-year fixed hit 3.85%. that is near the high of the year but still down from 4.2% a year ago. liz: still very low though historically. should homebuyers worry about rates rising higher if they jump in now? what does it mean for the spring housing market just getting started? we have barry habib be the mortgage king, is here. barry, looking at the rates, 3.85%, still to me looks very low. where do they go next though? >> they are very low. one thing last week's rates.
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freddie mac reports on rates but it is previous week's rates. they have gone up a little bit since. really market is 4 to 4. and an 8th. 50 a 5 to $60 a month, not terrible the but still something people are thinking about. david: okay. it is still low. it is buyers market. but more, it is a seller's market even more than good deals for buyers are great deals for sellers, right? >> sellers are in drivers seat. sellers are picking and choosing who they want to sell too. that is one of the thing buyers are struggling with. 40% of the market right now are cash buyers. which is very appealing if you're a seller. if you're out there -- david: historically is that very unusual? >> a bit above historical norms which is about a third. sellers, as i said in the drivers seat.
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people looking to purchase a home with a mortgage contingency, needing a mortgage, they have to kind of pony up a little bit in order to buy that house because in many areas, very low levels of inventory. so this is when we hear things like, housing is lagging a little bit. this and that. it is not lagging for bad reasons. it is lagging because of lack of inventory. if you're listening if you're a viewer, if you're a homebuyer or currently own a home. the lack of inventory is supportive of home prices going up. also good news, it is not going up dramatically. almost like a goldilocks situation, five to 6% appreciation, sustainable. liz: everybody says they are going up, they are going up. you believe they're going down slightly, a 30 year freddie mac. you think we could go as low as 3.9%? >> i do. this week, next week, probably not. mood in the market thinking what happened two years ago at this period of time, there was high escalation.
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however later on in the year i think it is possible we get down to the lows we were at earlier this year. half a percent lower is possible. fundamentals have not changed. no inflation. gdp stinks. wages stink. wages not really growing. people with higher education, losing jobs. less education gaining. part-time workers gaining. full-time workers losing. fundamentals don't warrant much higher rates. david: we have preliminary inflation figures today, it was down. inflation is down. which means janet yellen, who wants, i don't want 2% inflation. she will not raise rates until she sees an up i can in inflation. >> plus an unemployment approaches 5%. if you think is important about the number, ppi number, producer price index, we take it with a grain of salt. what is worrisome to the fed, when you extract food and energy and food prices, when you look at core rate, that was even
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lower because now we're talking about, without this dip in energy. we're still seeing a drop in inflation pressure. liz: if we look whether you buy now or wait until they hit what you purport to be 3.59% maybe, which is a guess, we thought we wanted to show people how much they would save over 30 years. we pick ad new york property and a chicago property. a new york penthouse, 1.45 million, probably a tiny penthouse. at 3.85% you would say $7032 per month. about $220 less. but savings over 30 years becomes much starker. 79,000. then we switch over to chicago and you can see a lot of savings there. is it better to just give it a couple more weeks and then pull the trigger buying property? >> here is the flip side of that. the flip side of it is, what about if that property escalates in value due to low inventory levels? if you happen to be right and rates did come down and even if
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i'm right rates came down -- liz: if they hiked price. >> what if the price went up? that you would have to be there 30 years to realize the savings. you would rather have $5,000 is worth more than $79,000 over a 30-year time frame. david: listen to this man carefully. knows where he speaks. barry habib, great to see you again, barry. >> thanks. come out and hear our band. liz: the "rock of ages" band. we followed that one all the way through. barry, thank you very much. buy your house and wait i want to go on vacation? the summer vacation season will begin with quite a bang. 32 million americans are expected to hit the road over memorial day weekend. that is the highest number, folks, since 2005. one business expecting to capitalize on this trend, vacation time-share company marriott vacation company worldwide. owner of marriott vacation club, ritz-carlton destination club. joining us now, the guy in charge, stephen wise, marriott
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vacations ceo and president. this seems like a boom time, best since 2005. what is it like being you? >> things are pretty good to be honest with you. we had a great first quarter. our indications what is going on in the second quarter equally positive. we're very bullish how it looks. liz: stephen, gas is dollar cheaper than it was. >> it is. liz: people hit the road and want a great vacation. they save may spend on ritz property or marriott property. where are the hottest areas right now? >> traditionally, places like hawaii have always been very popular. if you get to anything where it is sand and sun and on water, that is always a very popular place for people to be. liz: yeah, looking at the beach club in oahu. maui ocean beach club. how much do you run when you're renting them? >> if you're renting them, probably on neighborhood 5 to
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$750 a night. keep in mind a two-bedroom unit, with kitchen, dining room, washer dryer. fully a men advertised resort. so equivalent of a couple guest rooms plus some. liz: you have headwinds aside from cheaper gas. stephen, you're down at the new york stock exchange. the s&p hit an all-time high. are you seeing that flow through to consumers who main feel a little better, a little bit wealthier when they look at their own stock portfolios? >> there is no question, there is strong correlation between consumer confidence and what we call closing rates in the time-share business. closing rates, if you talk to 100 people today, what percentage of them want to buy. clearly as consumer confidence number goes up which will be indicated what happened in the market we'll see increased closing rates which are certainly good news for us. liz: there is inclination for people to say the economy is horrible. you heard barry, fewer full-time jobs. a lot of hand-wringing. is that what you're seeing?
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seems like you see a better economy at least in your area? >> we are certainly seeing improvements. they have been incremental improvements over past several years. certainly more room to go. keep in mind, vacationing is one of the most important things people do every year. liz: yeah. >> often times they give up other things but they will not give up their vacation. liz: i like the hawaii thought. i do like that. ticker symbol vac. not only up 15% year-to-date but you're up 53% year-over-year. congratulations, stephen, thank you. >> thank you very much. liz: stephen weiss marriott vacations destination ceo. david? david: outrage over human tragedy that turned into a political ad. just hours after the deadly train crash being used to make a statement about government spending. could that backfire? our all-star panel talks about that. it raises questions about train engineers.
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are they screened? is there enough back-up systems if something goes wrong. clearly there was not enough here. one engineer with answers coming right up. don't go away. we'll be right back. when the moment's spontaneous, why pause to take a pill?
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david: take a look at an ad that came out today blaming republican budget cuts for tragic amtrak derailment. even though we found out the train was speeding twice the limit around a very dangerous curve. will political ads like this work or create a political backlash? we have peter sutter man from "reason" magazine. carey from "forbes" institute and diana furchtgott-roth. author of disinherited how washington betrays america's young. peter, what do you think of the ad? >> the idea that republicans are responsible for this train crash
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is not one that will fly especially since, that the argument they should have been spending money on safety controls that might have prevented this, but the safety controls were never going to be put in place, by this time. we've known this for years. there were always going to be delayed. this has been a big discussion amongst rail advocates going back years. it was extremely complicated piece of software, piece of programing that they wanted to put in place. blaming republicans now, at this point i think it is really poe i lit sizing a tragedy and won't to anywhere. david: this ad came out today, they had time to pull it. it is quite clear, becoming clearer and clearer the train was going twice the speed. if anything the cause of the crash that's it. >> if anything it is unions. anytime people want to put in technology that could have stopped this, we have technology that could automatically put the brakes on for any curve that is going at this speed but the unions prevent technology because it displaces workers. david: diana, when i want to talk about, diana, whether this
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ad itself, is so soon after the tragedy, blames a political party for the tragedy itself, i think that is going to backlash, don't you? >> i think the american people are too intelligent to believe a story like that. and it is not very expensive to put in a device that lets the engineer know when the train is going too fast. it might be more expensive to put in automatically that breaks the -- brakes the train. there could easily be an alarm that tells him he is going to fast. the washington, new york to boston corridor is profitable. the whole civil should be sold off to the private sector which can invest more in the profitable segments. david: that may well be the case but i think all these political argument will just fall on deaf ears because people right now are more concerned about actually what caused the crash and people involved in it and frankly of those families involved in it as well.
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let's move on to political story. former bill clinton aide and abc news show host george stephanopoulos, found to be donated 75,000, not 50 as reported earlier, 75,000 donated to clinton foundation which he failed to mention during a scrappy interview with author peter schweizer, that focused on clinton foundation donations. diana, does it matter. we have the new figure. stephanopoulous admitted he gave 75,000 late this afternoon. go ahead. >> this definitely matters. we should be able to find somebody that hasn't given political contributions to either side to moderate debates. no reason anyone who has given political contributions to moderate these debates. david: carey, he just said he will not moderate any of the debates specifically because of this. should that hurt him as an abc commentator? supposedly neutral abc commentator? >> this is not breaking news. he worked in the clinton white house.
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he was comes director for clinton campaign. this is not shocking. we shouldn't be surprised. as to his object tivity he could moderate a democratic debate but absolutely no way republicans should not moderate republican debate. because he could throw it as candy crowley did in the republican debates. david: will not be in either of the debates which is probably best thing but should this hurt his ability to be commentator for abc? >> he has been one a long time. it is clear where he stands. if you look the way he questioned peter size err during the "clinton cash" interview he played clinton's lawyer. the guy was a senior clinton administration flak for years. you should expect this from him. david: to talk about the clinton foundation and not say you had a stake in all of it is pretty outrageous? >> it really is. david: this is about facebook will only work with
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subcontractors that pay high starting salaries and good benefits. is this good idea? >> this is clever pr move. this makes them look like generous, social responsibility type. that being said, it will displaced people lower skilled, more likely to be hispanic, african-american, who maybe aren't qualified to get that wage. they will not be able to reach that bottom rung on the ladder. david: that is interesting. pete, what do you think? >> if they want to pay more to their contractors in order to make sure contractors employees are getting more benefits, more power to them. this is something we'll see increasingly in the tech sector. on the west coast microsoft is already doing similar things. the worry i have this will become a platform, jumping off point for arguments to raise the minimum wage federally for mandatory minimum wage increases facebook as a big company already implemented policies like this will weather easier. this becomes a anti-competitive move. david: diana, what do you think? >> i think if we have minimum
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wage laws, should exempt people 22 and under. 3% of americans make minimum wage. primarily teenagers and unskilled are hurt. disinherited how washington is debrissing americans. david: nice advertisement, diana. >> in silicon valley we see class warfare with the google buses and people getting angry about rents rising in san francisco. if everybody gets inflated wage, doesn't matter if you pay 15. the next guy will play 18. prices rise and it is monopoly money. david: i'm impressed by diana's pr move. you're brilliant. good marketing move. peter sutter land, carey and diana furchtgott-roth. carey and myself appear on saturday 11:00 a.m. eastern time on fox, with "forbes on fox" on our sister channel fox news. liz? liz: there is spike in honeybee deaths. it could force you to dig a
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little deeper into your wallet. we have the story next. as investigators wait to interview the engineer of the derailed amtrak train, we have one man who knows how somebody gets that kind of job and the vetting process behind it. are there any checks and balances in place? we'll find out for you straight ahead.
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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, that's what i'd like to do.
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david: the share of u.s. businesses started by women fell to its lowest level in nearly 20 years in 2014. last year the share of new businesses founded by women entrepreneurs slipped to 36.8%. this is below the average rate over the past 19 years of 40.7%. men launched an average of 33thousand businesses per month last year which represents a 21% increase over 2013. by contrast women started just under 200,000 businesses per month, about the same rate as the year before. liz? liz: david, now that all passengers have been accounted for in the horrific amtrak train derailment, the focus turns to the engineer who was driving the train. he says he has no recollection of the crash and no explanation of what happened. so we wanted to know how does one become a train engineer? what is the vetting process? there are there any checks and
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balances on the train? we have the railroad academy president. thank you for coming. we appreciate you coming on. >> thank you very much. >> right off the bat, david, what does it take to train a train conductor? what is the process? >> first of all, you have to go through a federally mandated training program. a list of checks and balances required by the federal government. all raid roads have to subscribe to that program. all training programs have to be approved by the federal railroad administration. we're looking for persons with a good safety record. the ability to physically conduct the job. to be able to move within the railroad industry. assuming that they pass that qualification, they are then eligible to move on to engineer training. again the program is mandated by the federal government with certain requirements, certain proficiencies, certain laws that have to be learned. and that process at least, with us, takes a minimum of six
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months to go through. liz: do you reject a lot of applicants? what would be cause for rejection? >> someone that is sometimes fearful of the equipment. someone that has a lot of timidity working around big heavy pieces of machinery. people that simply don't have the aptitude to grasp the rules and the complexities of the industry. liz: you just said rules. what about following the speed limit rules? the speed limit on this particular stretch of track was 50 miles per hour and it has been released this train was traveling at 106 miles per hour. can that all be blamed on the conductor who was in charge? >> no. that responsibility really falls on the locomotive engineer. liz: okay. >> this particular place, the conductor, while is considered bottoms of the train, in the amtrak environment that individual is back in the coach area working with the passengers, dealing with issues that may come up during the
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transport of those people from station to station. the engineer himself is physically at the controls of that locomotive, adjusting the speed, adjusting the brakes. having the train move safely over his territory. really the responsibility falls squarely on his shoulders. >> david, when you heard, right off the bat, through the news, whatever you heard it, what was your first thought about this accident? >> i was concerned, my thought, this is, could be another situation where we needed another person in the cab of the locomotive as another set of eyes, another set of ears, another set of checks and balances against the primary engineer. now we know from the engineer's claims that he has after niche that. liz: to be clear he is saying he remembers nothing except picking up the phone and making a call to call 911 or call somebody for
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help. it is currently not the rule to have two people with that engineering effort. you know, like in a copilot, pilot situation on an airplane where you do have the check and balance. >> that's correct. liz: do you think that is what we need? if there was one regulation what would it be? >> that is one i would reference, having one person in the cabin of every passenger locomotive. from my own experience, when i run trains i have minimum, sometimes two, or three people up in the cab of locomotive. more eyes the better. more people looking for problems. the more people listening for situations. to me it is a no-brainer. and why you would entrust the lives of two, three, 400 people, with one person, you wouldn't do it in a plane? liz: no. >> why would you do it on a train? liz: david wrangle of modoc, we really appreciate you coming on. thank you, sir. thank you so much. >> thank you. liz: david? david: that was fascinating stuff.
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meanwhile city police are getting more reluctant to make arrests in the current environment. will criminals move in and businesses move out? how much will that cost our economy? one of the nation's top criminallologists coming up next. cybersecurity summit like no other. we'll take you to the u.s. military academy at west point where top military and cyber leaders are charting strategies to stop the emerging threat. you don't want to miss this coming right up.
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that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. liz: sharp spike in money bee death is worrying and putting bow keepers business in jeopardy. they expect to lose a small number of colonies, over the past year who% of the honeybee colonies have died as bee population declines. fewer colonies meet the demand for pollination. what does that mean? increased costs for keepers. eventually, increased costs for the consumer as will. honeybees add more than $15 billion to the value of u.s. crops per year. a rise in deaths will eventually translate into a rise in food prices. david? david: liz, we've seen it before. when crime moves into cities, businesses move out. with recent protests causing cops to pull back, many fear
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criminals will be moving in, leading to businesses moving out again. no one covers crime and its effect on businesses more closely than our next guest, the manhattan institute's heather mcdonald. heather, good to see you. >> great to you, david. david: first question, are cops a little more reluctant to arrest people, one, afraid of getting sued or being arrested themselves? >> absolutely n cops, baltimore backed off and shootings are through the roof. this is happening across the nation. shootings going up in milwaukee and washington as well. concerted message in the mainstream media, advocates like al sharpton and aclu to demonize policing. david: when cops move out, so do business. what happened in baltimore was terrible einstruction of businesses leading to millions of dollars of losses. a lot of businesses being lost as well. >> the fallacy of liberal system that you need government spending to revive cities. and then you get lowered crime.
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it is just the reverse in fact. first you have to lower crime. and then you can hope to have economic revitalization. that is what happened in the new york in the '90s. we're forgetting that lesson again. david: since so many police are punished for doing what was creating a very safe country, not only in new york but cities all over, as there are more reluctant to make arrests, does it embolden criminals? do criminals begin to think they can get away with stuff they couldn't the year before? >> that is happening in new york. we used to have a program that was very rigorously employed, stop, question, and frisk, that would empower officers to inter screen in possibly suspicious behavior before it ripened into a felony. this provoked a massive drop in crime. since mayor de blasio has come in, stop, question and frisk have basically disappeared from the city. shootings keep going up and up because be the criminals have
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finally decided their stop risk is virtually zero. david: you and i just saw the police commissioner bratton here speaking on monday at a manhattan institute meeting. he is still a big fan of the broken windows theory. which is the theory you stop small crimes. that is the best way to stop the big crimes from happening. if bratton is in favor of it, and the mayor is not, who wins? >> well, so far the mayor has expressed lip service for it. we should be grateful for that. it could be a lot worse but it's a constant struggle because the advocates play the race card, always, bense policing. this hurts law-abiding people in minority communities. in fact, law enforcement is a moral imperative. it is what people in poor crime-ridden communities cry out for. they're always asking for getting drug dealser off the street. get marijuana smokers out of my hallway. iii want to walk to the store without getting fear of being
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hassled. the police hear the request all the time. the advocates that if you respond you're racist. that is insane. david: are you pessimistic or optimistic? >> i hate to be pessimistic, david but the fact is we're seeing a pendulum swing. policing and incarceration worked in the '90s and 2,000. now we have gotten complacent. i'm afraid advocates are starting to win. david: great analysis, heather, thank you very much. >> thank you, david. david: appreciate it. liz? liz: top military and industry leaders meeting at west point to discuss the american fight against sigher terrorism. we head to west point to look at front lines of this very serious battle. if you thought cheeseburgers couldn't get any worse for your health, think again. you won't believe what carl's jr is stuffing into its latest menu edition. we'll take a bite into that. stay tuned. >> hi, everyone, i'm
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gerri willis. coming up on my show at the top. hour, we'll have latest on the investigation into the amtrak disaster. we're expecting update from the ntsb. there are new details on the train engineer at the center of the investigation. just one of the big stories coming up on "the willis report" in just a few minutes.
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david: top military and industry leaders at west point to discuss
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latest advances and struggles in the america's battle against cyberterrorism. liz: jo ling kent joins us from west point to look at exclusive look at front lines of this battle. jo? >> the mission at west point is all about cooperating between the military and silicon valley top ceos, the public and private sector. i had an exclusive interview of ceo of palo alto networks, mark mclaughlin. i asked him how he is advising fortune 500 companies in the aftermath of cyber attacks. >> we fundamentally believe in the approach that is prevention oriented. if you don't try to stop things from happening you won't. nobody will stop everything from happening but you have to put most of your eggs in that basket. this is battle between highly automated bad things and lots of trained people. if that is the balance, the people will lose just because there is not enough people to keep up with it. you have to take prevention approach.
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you have to rely on three things. technology that can do high degree of prevention, and education processes for people and that is advice we give to companies. >> palo alto network's stock is one of the best performing in the cybersecurity sector in the country. along with mclaughlin, nsa chief and head of u.s. cyber command alluded to former nsa contractor edward snowden. he pointed out every employee inside the department of the defense is potential advantage against battle of against cybercrime but also potential vulnerability. rogers also implied if there was going to be a major cyberattack on the united states he would not rule out using traditional military force. back to you guys. david: jo ling kent, thank you. liz: for those of you who have a little trouble choosing between a burger around hot dog, no worries thanks to a new item on carl, jr.'s menu. calls it the most american thick burger. david: who is she? liz: includes, hamburger, hot dog split in two, american
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cheese and layer of potato chips. david: but who is she? liz: she is friend of brad hayley, chief marketing officer of brad hayley, said it is like two sandwiches in one and your side. carl's, jr. david: i don't think many people look at sandwich. liz: have a good night. gerri: hello, everyone, i'm gerri willis. this is "the willis report." we begin this hour with breaking news. latest developments on deadly amtrak derailment. ntsb, expected to announce new findings of their investigation any minute. we'll bring them to you live when it happens. meantime, eight now confirmed dead while the engineer claims to have no memory of the crash. with us former ntsb investigator alan deal, a former board member the ntsb john goal yaw. we'll start here with john. we're waiting for alan to get to the phone.

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