tv MONEY With Melissa Francis FOX Business July 31, 2013 12:00am-1:01am EDT
all right, i want to thank you all very much, we'll keep following this. we will get word on bendable paint. david: i bet they want the corporate tax rate to go lower. melissa: i'm melissa francis and here is what is "money" tonight. it may be the biggest energy game-changerhrough fracking you probably have never heard of it. it is buried in the bottom of the ocean with more energy than anything on the planet. we'll tell you all about in just seconds. plus, who calls the financial shots in your house? oh, you think you do? your spouse probably thinks otherwise. a new study says that the divide between couples is wider than the grand canyon. weave details on how the power of money is impacting marriages anywhere. "who made money today?" ere are not anyoadblocks in their way to make profit. t sure who it is. stay tuned to find out. it is even when they say it
isn't it is always about money. melissa: tonight we start with a breakthrough, a possible energy game-changer that as i said you have probably not heard of. they call it, fire and ice. it sound kind of sci-fi. it is methane hydrate andt is a solid form of natural gas found in two places of the at the bottom of the ocean and deep below the arctic ice. but test runs havelready been done to extract i obviously thats not easy. experts say it has more energy than anything else that exists. forget the fracking boom. this could blow all of that out of the water literally. here to explain and probay introduce the future of energy, richard charter from the ocean fodation and steven schork of the schork report. thanks for joining us. richard, let me start with you. what is the potential here? w powerful is tis?
>> i would consider this a potential future ergy sourc rather than a current energy source. it is worth studying. it is frozen water ice, crystal line modern i with crystals of methane locked into ice. if we free those without con causing some kind of catastrophe, it would be a big deal. meliss that sounds like a big if. if we could prethem without blowing up the planet that would be a fantastic thing. at are the odds of doing tha we're working on it right? >> this is something the oil indus has known about it for very long time. they have always been scared to death of it. it is something to avoided in the gulf of mexico. they have tried to avoided putting a platform leg, part of a drilling platform on a metha hydrate deposit because if it destablid, which the stuff tends to do, it could obviously threaten the structural integrity of the platform itself leading to something disasterous. oil industry stayed away from
it. now all of sudden it looks like it might extract methane, i.e., natural gas from it. melia: right. steven, why all of a sudden we're focused on it? >> we're focused on it but it is more importantly resource starved countries like japan, asia, china and india who are heavily investing here n here in the united states 10 years ago. the old economic addage took place. high prices are cure for high prices. >> right. >> we had natural gas price that were $15 a deck a therm. technology improved. we g the shale gas out now. right n natural gas is $4. you if you go to jop tan it is , $16 a decatherm. if you juxtapose with the disaster from fukushima and a drift away from nuclear generation, those btus are going to have to be replaced and yet japan has been the vanguard
of investing heavily in t methane hydrates located off the continental shelf off their coast. this is potential game-changer, the new shale for asia. melissa: richard, thereis another reason beside the fact asia is starting to look at this because the economics are saying maybe this could make sense down the road. there is idea as the planet gets warmer these may be released on their own and that would be catastrophee. this is sort of harnessing this before it become as problem. is that a fair charaerization? >> no. melissa: you disagree with that >> this is not really preventative medicine. meane is far more powerful green house gas than carbon dioxide although doesn't last nearly as ng in the atmosphere. over a pound of methane traps as much heat as 72 pounds of carbon dioxide. potency declines over time but over a century it is 25 five times more pwerful than carn oxide. you don't want to accidentally or deliberately release a lot of this stuff into the atmosphere
right now. melissa: no. >> public health implications of that, global sea level rise, flooding, human catastrophes are a very real possibility. so you don't want to accelerate global climate change whether you believe in itr not. it'seal and, we've changed the chemistry of thecean. we don't want to accelerate that process. melissa: although that cld be a differentiscussion. steven, as asia is barreling closer and closer towards this, is it a disaster fr the enviroent? >> well it is a potential as richard said, if we do hit one of these deposits and weo have an uncontrolled release into the atmosphere, it is definitely is a threat but as you mentioned at the top of the hour, melissa, there are two sources. permafrost melting in the arctic a land mass that cover 20% of the globe. we're already seeing methane or excuse me the permafrost melted there. eir estimates tre are 950 billion tons of carbon trapped up there could potentially be released that methane into thetmosphere on a
tural occurring basis. as richard said, that the warming of the sea temperares could potentially melt the permafrost on the continental shelf whicthen would release the mhane trapped underneath the sea which could then bubble up into the ocean and be released into the atmosphere. so market commercialization of this methane is one potential solution, capre the hydrate now. burn it as natural gas as a fuel and cut it off at the head before it gets into the mosphere as a gas. melissa: richard that has been the conversation and thinking but sound like you disagree with that? >> well, in the past, for example the burr burr administration really doctor george wbush made a very small commitment to move forward with meth tape hydrate perimentation and that continues to be the case. the reason as ste pointed out the price of natural gas in the u.s. let's face it north dakota
bakken shale oil drillers are flaring $100 million of natural gas a month. a third that they produce with their oil they are extracting. >> yeah. >> that flaring you can see from outer space and emitting green house gases equivalent to one million cars. so the idea that you can hve a preventative intervention and extract hydrates basically, you need to look at geologic history a little bit. ere's been some huge releases of methane, pretty much all at once when subsea landslide through natural processes became die stablized or mud volcanoes as they're called and release ad huge amount of methane into the atmosphere. we are not in a situation where we induce somhing like t to happen. melissa: absolutely. gentlemen, we've got to leave it there. thanks to both of you. we appreciate your time. >> thank you. >> thank you. melissa: i likehat. on another kind of update on energy. modular nuclear powerlants, new technology labs for plants to be built that only about 20%
of theize of existing ones and they're built underground. john roberts is in atlanta with more. john, not everyone wants this idea i'm betting? >> n everyone loves nuclear power and not everyone loves the idea that the federal government subsidizi this. melissa, this could be a game-changer but depending who you talk to it could either be a econic boon or could be a boondoggle. we're talking about small, modular nucar reactors. the company in the forefront of all this, babcock and wilcox out of lynchburg, virginia, insited us for a look at wt they're doing. this could be described as a bite-sized nuclear plant. as you pointed out the less than 20% of the power of a normal nuclear reactor. ey run 1200 megawatts. these run 0 megawatts apiece. it is similar to the size of wal-mart store and they do cost a whole lot less than a a traditional nuclear plant does, 1 to $2 billion, compared to
anywhere between 8 to $15 billion. the first so-called, mpower reactor may go along a river in clinch river in the tennessee valley area. this will be that is one way to increase the safety profile of this. difficult for a terrorist to attack something that is underground. they also have a number about passive and redundant systems built into this to proct against any kind of kuima-like disaster. he is what one of the officials from mpower said. >> we analyzed events of fukushima as they occurred and laid it against the mpower design shortly after it happened. mpower would have ridden out an incident even as severe as fukushima. no detrimental effects at all. >> now the whole construction process of these small modular reactors is different as well, melissa. tycal nuclear power plants are
struures of byzantine complexity. this incorporates one neat little unit made into a factory for good quality control. also economics of, i don't want to say ms production but multiple produions. it is replicable and put into a truck and trucked out to the site. that is the boon part. what about the boondoggle. that lies in federal subsidizing the industry for research and development. the federal government set aside half a billion dollars for r&d farr babcock and wilcox has got en$79 million of this. this is unproven technology. it is really on the drawing board barely in the testing phrase. this led watchdog group, taxpayersor common sense to give the government a golden fleece award, we're sitting o the edge of this, us as taxpayers a nuclear solyndra at could leave taxpayers holding theag. >> it just seems one of those things where we're throwing good money after bad. the nuclear indusustry is incredibly heavily subsidized. this is another way they're
putting their hand out. hey, we've got a new way to survive, give us more none any of and we'll do it. >> the dinse says it is the -- industry says it is wave of the future if they can make it work. it could lead a lost american jobs down the line a lot of developing countries are looking for a clean source of power. not you lar nukes could be the thing to supply it for them, medical list -- melissa. melissa: john, thank you so much. i feel supercharged. let's do more. time for the fuelauge report. bp superfund is nearly out of mon any of. they say the fund oly has 300 million-dollar left in it. damage payouts are rising far higher than bp originally estimated. the company says a growing number of claims it has to pay are fictitious. jpmorgan is paying $410 million to settle charges with the government. it's a record settlement for the energy regulat. between 2010 and 2011 traders in houston werecaused of manipulating electricity markets
in california and michiga but jpmorgan is nt admitting any wrongdoing as part of the settlement. u.s. oil imports fell to their lowest level i18 years. that is according to new data from the energy information administration. they dropped 13.2%. hitting 7 million barrels a day. next on "money," whoeally makes the financial decisions in your marriage? couples are just divide on their roles in this new study. they may as well be living on different planets. what the power of money means for your marital bliss. got to hear this one. plus, while detroit implodes, oakland county, michigan, is living large. it is literally across the street from motor city. the county executive behind the jobs-creating juggernaut joins us. don't go anywer. more "money" coming up. ♪
spouse that you have the fal say when it come to spending money in your house? if you don't agree on a big purchase, say major home renovation, new car you would go out to buy it anyway? a new survey shows couples are totally outf zing when it comes to who is charge of the family purse strings. overvaluintheir own contribution or drastically undealuing their significant other's here to give as you reality check, fox family and "money" friends, charles payne, mercedes colwin. tony sayegh, who we love buu we couldn't fit you on the set. >> what i about that? cold in siberia. >> i know, i know. maybe i will let you go first. what i loved about this, is for example, when men were asked, are you the primary fincial decisionmar, 69% of them said yes but only 13% of their spouses agreed with them. there is a little bit of a disconnect there. we seehisime and again in
this study. are you in charge of the making the decision. the person said yes, and the spouse said, i don't thi so. tony what do you think about that, are you in charge? >> melissa, my wife and i make every decision0/50. melissa: come on. get off the set! melissa: give me areak. >> my name is not tony. it is ward cleaver. we're the perfect american family. these statistics that come out of the poll do not shock me at all. i think there is natural oppositional relationship between spouses. when the husband thinks something, the wife thinks the opposite. when the wife thinks something the husband thinks the opposite. why should it be any different? we all know who makes the real decisions in the house and it is definitely the women. melissa: mercedes, do you make awe the big decisions? >> we had this conversation this morning with my husband. oh, this is such a cool topic. you make all the financial decisions. on what planet. i don't makes any. decisions. you do. no, i don't.
i don't make any decisis. >> that means no one is in charge? your house. >> absolutely. melissa: no one is driving the ship. >> i guess some. i think it is okay. melissa: are you in charge. >> y know wha i think a good wife will somehow figure out a way to have the husband think that he is in charge when she is really in chge. melissa: really. >> that is why youave the difference in the thing. i don't know what the art is how they do it. wife and kids are typically in charge. although, you could have switched it up a ltle bit said who makes the financial decisions and ho makes the spending decisions because when it comes to spending money my wife is completely in charge. melissa: oh. you think she is doing purases and you're planning for the future, is that what you're saying? >> i feel like i'm planning for future. i feel like i'm pnning for the future but she definitely, let me tell you. she has a direct relationship with ups and fedex. they are considered opening up a branch in the house. every time i come home, like the old "dick van dyke show," i trip over a box. occasionally --
>> i hear that credit car going, oh, yeah, charles? okay. take that credit card. make aew more purchases. there you go. melissa: my entryway looks a little bit like a ups delivery spot as well. fedex. >> what percentag is your husband's? melissa: i'm the acquirer for everyone. i buy for everyone in my house. if it wasn't for me, everye in the house would be walking around naked, nohoes. who has a swimsuit for ts? if i wasn't out purchasing i mean, people, we would have nothing. we wouldn't have any food! we would have nothing. help me out, tony. >> that is exactly what my wife always says. she make the decisio because she is thinking about everybody equally. of course i'm thinking about myself or ed at the moment. men have within major thing they should just worry abo and that is what i worry about. feed the beast. bring home the money. let your wife redistribute it. melissa: wait a second. somebody has to clip that. >> tt's it. >> the beast is not the wife. it isut, lifestyle, house,
vacation. melissa: yeah. her said and i are bringing home bacon. >> you're luc you're not studio, my man. >> is that why i out here? melissa: i think so. >> what do you think aut that mercedes. my mom was a primary breadwinner. i'm ceainly one of the primary breadwinners in my family. women are 54% of the workforce are woman. we're out there tony. >> i'm not saying you're not mercedes. i'm saying what men, look in those households it is fantastic. my wife went back to work. i think it is great. i'm not saying women shouldn't work at all it is fantastic. men who worry about their financial role i would focus more on delering theoods. that's all him saying. >> take it one step further. what does it really mean? chars, you'reomeone aay out there giving investment advice to helpeople grow their nest egg larger. if people like tony view the women as the spenders, and the men as the investors, which is kind of what youaid too, that is not necessarily good for growing your nest egg into the future. maybe we need to be on the same
page if we're going to have to something to show at the end. day. >> i think maybe we should be on the same page. melissa: maybe? >> i have make maybe we should be on the same page. at wedding they collected money om everyone. as soon as -- melissa: really? putting it out there. >> new york kind of thing, right? got in the limo, she looked at him, he said, hand it over, stupid. from that day on he didn't get married. he got a supervisor. my point is, someone has to be in charge, right? no matter who it is. and i do think that role has shifted a lot over the last couple of decades. melissa: what about the family meeting where everybody gets together to make sure you're on the same page? >> o my goodness. wife and ks. can't beat the wife and kids together. when they want something together they're unstoppable. melissa: that was fun. i don't know if we fixed the problem. we had a good time. thank you to all three of you. tony, you're in trouble. >> i'm always i trouble. >> bring home some flowers. >> come up here, tony.
we'll take care of you >> good tosue guy melissa: you know all about detroit bein inhambles, literally across theoad sits its mirror oosite. oakland county is o. wealthiest areas in the country. the county executive responsible for it is goin to explain how he pulled all this off. maybe we can all take a few tips. do you ever have toouch money? ♪
melissa: whether it is on wall strt or main street here is who made money today. anyone who owns goodyear prior. the second quarter profit more than doubl. the grim economy in europe has be a drag for many big companies. goodyear says sales in europe are finally stablizing the stock was up 9%. not bad. losing money today, bill ackman. the hedge fund giant made a
billion dollar short bet on herbaliflast year. he infamously called herbalife a ponzi scheme, you remember that but herbalife's stock has been on a tear recently and topped estimates fork second-quarter earnings. reuters report, ackman losts, wait for it, $300 million on that short bet. ouch. making big money with really no effort, michael strahan, co-host of le with michael and kelly, selling his belleair mansion f $11 million. he bought it just a year ago for $8 million. sew made three million bucks. heidn't do a single renovation. not bad. all right, to detroit which is still not making money by the way. today a u.s. bankruptcy judge set october 23rd as the start date for a trial on any potential objects to the cits bankruptcy eligibility. but across the street from the motor city sit oakland county. it is one of the wealthiest counties in the country with a aaa bond rating.
it population has popped while detroit's has plummeted. brooks person the county executive of oakland county. he says that they are quote everything the detroit isn't. welcome to the show. you have been in office for six terms. you've been one of detroit's biggest critics along the way. do you feel like y're saying i told you so now? >> i would never do that i don't know that i'm a critic i think i tell the truth and if you tell the truth about detroit, now you're a detroit barber. melissa: so what is it that you have done differently? >> if you look at detroit, their budget is almost 2 billion. that is a l of revenue but their expenditures are 2.3 billion, 2.4 billion. they spent more than they take in. it's, the age-old problem. and in oakland, we're very disciplined. we check it every month. we do not overspend our budget. because of t we've had a balanced budget for at least 20 years that i've been there. we've been able to build up
surpluses and we, sitting on a pile of sh and we paid off our retiree health care for our, that is legacy costs you hear so much we don't have it. we're debt-free. things are gng well for oakland. melissa: you've done a lost things to try to attract and promote business. like what and what advice would you give to detroit to ty to dot same thing right now and get business in there? a lot of peoplery sag that is the only way they can turn things around at this point is to attract jobs? >> in oakland, we came up with a program in 03, researched it in 2003, and kicked it off in 2004. we wererapped in theingle business and all the eggs in automotive business, when it was gone 08 and 09. we lost 62,000 jobs in 2009. that's lot of jobs for one county. we did some research. called the product of that
research eye merging sectors. we wanted to know what the growth sectorsould be for high quality, sustainable that is the key word, susinable jobs here 40 years fro now. so weooked for those attributes we came up with ten sectors. purposely excluded automotive. health is number one. just off the charts. i.t. is number two. finance is there. and we nailed it. and what all turns out to be, melissa, the knowledge-based economy. hear so much about. i think we have every expectation right to play the knowledge-bad economy. we have educated communi. that's where we're going. meliss if you were in charge inetroit right now, do you think that bankruptcy would be the best option because that's the big debate that's going on of coue? is this a fresh start and a way to wipe the slates clean or does it make things worse? what is the best thi going foard for bankruptcy now? >> it was inevitable. it is the only thing they could do at this point. they had some options a few years ago but they r out of options and they kept spending. they borrowed $100 million to
get current and thought they were living, high on the hog. but, that 100 milln has to be paid back. and that chicken came home to roos now they're 18, going on 19 bilon in the hole. ere is no w. now, bantcy, we could argue, i think it is the only choice they have but unfortunately people like the pensioners who worked for the city 25, 30 years. melissa:ight. >> look forward to retirement, look forward to health care, they will lose their health care that is so unfair because they wean involved in the bad decision-making that got detroit to this point. they were involved in the corruptionhat just marched the whole qwami kilpatrick association. they were ones that have to pay the bills. melissa: brooks, thanks for coming on. we appreciate your perspective. >> >> i pleasure. melissa: turning from the motor city to the motor wor, bmw just unveiled its first electric car. it is the i3. most innovive thing touted to come out of munic in a decade. most electric cars are not racing ahead in sales.
so what sets this car made of e pac we have b's project manager for the design. thanks for being here. >> thanks very much for having me. melissa: there are fascinating things about this car. it has a carbon fiber body. it has a lithium-ion batter arery. you plug it in and charges complely in three hou. what are the economics for this car in particular for you guys? at, they lose $10,000 per car. there is obviously incentive from the u.s. government to buy it but you're selling this for 40 to $45,000. are you making money on the car? >> yes, i can promise you absoluly. every project we start with bmw has to make profit or otherwise we wouldn't be doing it. we have the convinced this car has potential to be huge on the market. it is not car but alsohe services around the car. that is why we invested clearly from 2007 until now. so of all the invests we're doing are absorbed on balance sheet. every single car we're selling
we're also earning money. melissa: when iead carbon fiber body and lithium-i battery i think boeing 787 jetliner. i worry about the car. do you worry about any dangers with the battery or the design if. >> not, not at all. melissa: why? >> carbon fiber is one of the safest materials. melissa: what about that battery? >> it isompletely different battery than you would have in an airline industry or something else. specifically, designed for the automotive industry. and of course since we do, take all respect and safety for passengers and for the other cars, we've all managed hhly sophisticated system to secure the batteries and passengers so that is just as safe as any other car. meliss there's a lost competition in the space obviously. the tesla, really blowing everyone away. how does th car compare to that and what do you think of that competition? >>ompetition is alwa good. the more electric cars sold o the market the better it i for -- melissa: why? >> people start accepting electric cars to see it is just as flexible as normal to use,
like conventional cars. so, we see the more electric cars are sold on the market it is better for the technology. the specific about bmw and the i3 there is no other car compared to this on one side true of bmw. i can promise you every joy of driving will be realized with that car as well. melissa: my twitter followers were very excited about this car. excuse me, they wanted to know about the range and the speed and all those specs. lay it on me? >> spied is very good with electric cars. i usually refer to things like electric car is light switch, always on or off. on the first, let's say 50 meters you're always the first on the next traffic light. melissa:hat is the range on that? >> the range is between 80 and 100 miles on your average driving behavior. quicker you drive the less range but same with conventional car. and, it can be fully charged within, the first 80% of your fast-charging systems comes within the first 20 minutes.
so it goes really quickly. and it is more flexible. like charging or plugging in your mobile phone. so just makes it very simple and flexible. melissa: thank you so much for coming in. we appreciate your time. >> thank you very much for having me. melissa: next on "money," o of the biggest names in real estate is here with the real deal. why rentomething now a better investment than buying. what? where will mortgage rates b in a few months from now? stick aroundor insight you can't afford to miss. "piles of money" comin up.
melissa: seem likes every other day we're hearing something new about the real estate market. today the case-shiller home price index soared in may. prices wentp 12.2% year-over-year. largest gain since march of 2006 but it is not all good news. also announced homeownership hit an 18-year low. what is the deal? should you buy, should you rent, should you refinance? how high are mortgage rates going? here with all the answers and his predictions on the market, real estate guru and ceo of the agency thanks so much for joining us. >> thank you, melissa. melissa: what do you think about those numbers because it makes me feel like i don't want to go out and buy if i see prices exploding? you hear about situationshere everybody is bringing everything to the table. it is all cash. ings are not making it into market. there are bidding wars. that makes me feel like it's a bubble and it is overheating.
>> i think it is crazy. people shod buy h. why re? it is the american dream to own a home. >> bhy? you don't nt to buy and have the price explode and you lose money. we saw that happen. how do i know tha is not happening again? >> that's true. we've gone through a big recession. we're coming out of it and we're seeing, there is just very little invento right now in the market. there is no inventory. such a lack of supply. >> right. that is starting to raise t prices. now, i personally think if you compare o pces compared to other cities and amazing cities, we're still low. i think, that you know, the u.s. is a se haven. i think it is a great place to invest. i think real estate and your home is great place to invest money. melissa: bob schiller from the case-shiller index he was on home earlier today, he is said you're better renting. let's listen and react on the other side. >> lot of people are choosing to rent n, rather than buy. i think, they might be right. i think we've overemphasized
homeownership. it's a good thing for people in the right age range who want to settle down. but, there's lot of other people who have been buying homes because they thought it was a great investment and these peop are changed their mind, maybe permanently. melissa:e is aalerofessor. he has been studying this forever. why is he wng? >> i think he is crazy. one. reasons why people are not buying strictly because we've go through recession. there is not loft money in people's pocketbooks. melissa: true. they are rting instead of buying. i think buying -- >> thas an opportunity. go through the predictions for the next 12 months. you thin there able developer boom throughout the country. >> basically i think that we're seeing a big boom right now in new york, florida and l.a. and i think that is just going to trickle down through the rest of the coury. i think there is lack of supply on the market. i think we'll start to see more developing going on. melissa: we'll see an oversupply of rental properties. that makes me feel like want
to be a ren then. if there is oversupply, prices will be low, is that true? >> that is true. developers are having to build rental properties. easier to finance them. they're just buildi rental properties. so i think we'll start seeing a little built of an oversupply on that. melissa: interesting. mortgage rates, you thi they're going to rise to 4.875. thats very specific. >> you know, i like to be specif on my predictions. i think we'll start seeing a slight increase of mortgages over the next year. d, you know, right now when you can borrow money at rates we can borrow, why rent? why throw away that mon? i understand the whole bubble effect and everything but i thinwe're going, i see it long. >> one thing in your favor, if mortgage rates are rising and prices are rising at theame time, that kind of makes you feel like you want to transact now. >> that's right. there is a fear right? a fear everything is going to go up and you will not be able to afford later. also if you rent, you don't really do anything with your home. it's a lifestyle decision. melissa: real house husband,
thank you for coming on. we appreciate your time. >> thank you. melissa: next on "money," tables at a newark, new jersey courthouse were trembling tod. two stars of the "real housewives onew jersey" are charged with 39 cocounts of frad and face 50 years in prison. would they have been caught if they were not on tv? that i what i'm wondering. we dig thrugh all the trashsiness and get answers. at the end the day it is all about money. ♪
>> average shopping day for me varies. i could spend a few hundred, a few thousand. depends what i find. i love clothes i love shoes. i love handbags. i love jewelry. melissa: ouch. maybe reality t star teresa giudice should have been a little more discrete about her lavish spending. "real housewives of new jersey" cast member and her husband joe getting hammered with 39 charges of fra. the classy coupleiled for bankruptcy a few years ago. they never stopped flaunting their outlandish extravagant lifestyle on national television! smart?
they couldook a50 years in prison. 50. how many other people are doing the same thing but they're just not in front of the tv? trial attorney richard roth joins me now. if you have a client and they fid for bankruptcy. for example, they say that the clothes they own are worth average, whole family of $3,000, do you then advise them to go on tv and say i spend thousands? i mean it seems like there wasn't a lot of good thought. >> its beyond stupidity. beyond stupidity. $700 for apparel jewelry. melissa: everything is fake. everything she wears is fake. >> she claims she had was unemployed when she sign ad contract to be on housewives. following year she was unemployed. just really stupid. i don't know how, i'm assuming she didn't have a lawyer. i can't imagine a lawyer advising her you're on national television. tough be eloyed. melissa: is it normamal for peoe to downplay in their bankruptcy filing what their assets are and they just don't get caught because they're not on television? >> it is normal to downplay them if they're downplayable.
melissa: that sounds like a white lie. what is downplayable? >> for example, a copyright. a copyright is asset you don't know how to value it. a business, you may not know how to value but a house, there are things you carnival you. not to mention the fact she engaged with bank fraud with four or five different banks. they filed false w-'s it, false pay stubs and lied to banks. joe the husband, apparently failed to file stocks five years and making over million dollars a year. that is stupidity. lissa: they say it's a federal crime of application but they were talking about juicing their income sohey could get bigger mortgage. a lot of americans did that, no? >> americans did that. messa: yeah. >> now, in light of what has happened with the banks fiasco, banks are very tightly scrutinizeand they check everything out. they check out references. check out tax returns. melissa: do they reall there was something called a liar loan. people got very comfortable with that that is one of the reasons i wanted to do with this segment.
forging of w-2s is insane. when they're talking about lying on loan documts to make their income look better so they can get a berg loan, didn't half of america do that and that is how we got in this huge financial crisis, turns out you could go to jail for that? >> absolutely. that is one of the reasons why we got into that. banks double-check and triple check. melissa: do they really do that now. they do. i applied for a loan six months ago. they're very tough. they do check and people are out there that did this this is extreme. this is beyond extreme but people women not necessarily tell their income. melissa: how extreme is it? as a lawyer, they rack up the charges here, are they going to jail or is this, you know, sort of been hyped in the media and they will make a deal and not go to jail. >> i think seriousail time. melissa: really? >> 39 counts. millions of dollars of bank fraud. we have lawyer fraud. we have fraud in the bankruptcy application which is a false statement. we have fraud in not paying, not filing ir tax returns let alone to paying tax. they will go to jail and go to
jail for a long time. melissa: teresa giudice is going to jail >> new show. housewife of the pen. meliss she knows how to make a buck. she will turn it into a franchise. richard, thank you very much. >>hank you. melissa: next upn "money," your dream car is nothing but dollar signs for car thieves. we he a list of the mos stolen luxury cars in america. is yours one of them. you may want to go checkhe lot while on break. that will be coming up in spay chchange. you canever have too much money.
♪ melissa: it is time for a little fun with "spare change." today we are joined by "spare change" titans, the crowley and adam shapiro. you are titans, without question first up, as it the san diego mayor has not caused enough of a ruckus in the city for a sexual harassment claim, he n wants the city to pay his legal expenses for the claim. what nerve. the key -- city council is meeting on how to proceed. i mean, the taxpayer is going to pay to defend them against the groping that he did not taxpayer dimes allegedly. >> cojones and then there are brass cojones. this guy really has a brass cojones. when he says he wants the city council to pick up his legal fees defendinghis case, he's talking about the taxpayers of san diego who he has insulted
and is respected everyay he has been in officif these allegations are true. women have come fward and said he wanted me to come to work without panties. >> the definitio of chutzpah. i mean, he said -- melissa: a lot of good living here. >> as the taxpayers to pay for this. ammine, go away. he's been there what, eight months. melissa: i don't kno all right. this one is for adam. grand theft auto and luxury grand theft auto. thieves ticket up a notch and go for high-end vehicles. the number one, they target is mercedes-benz c class. i mean, it seems to be at the top amon thieves. the s class and number ten, buying a mercedes. it was like mercedes. >> i was disappointed because i like jag wire and it was not even on the list.
melissa: to the breakdown as soon as you get in? but. >> not anymore. they are amazing cars, but we don't have time to defend. was really surprised i was thinking audi would be up there. what they're doing i styling and house gorgeous. melissa: you are seekinghis in as serious direction. >> is cars. some things in le are serious. >> there pbably jacking mercedes because they're readily available. you see a lot of them on the street. it can probably be turned over r a pretty good price. >> that old ad. the ford against the mercedes. melissa: and everyone is kewise. it is no surprise that most requested book by guantanamo bay high-value, meaning most dangerous detainees, has been a car ran. nt to take a stab at what took the holy books place recently? none other tha the 50 shades of gray. a surprise?
where it. >> the terrorists being held at guantamo bay with no access to women or pornography or anything else would be requesting these not that we should be furnishing them. the world stop terrorists. i don't think they should have access. messa: al was surprised that we were fresh in this as an extra part. >> they offer to translated, but they all wanted to in english. they have been reading in english. >> the government is now saying thats one of the upside, they are reading these books in english. these are thworld's top terrorists. wire we giving in these books? at is the story. melissa: that and the stolen mercedes. l right. i have learned a lot. you want to come over here? c'mo c'mon.
he's too shy. come on. come here. here we go. all right. that is all the "money" we have. come here. you will see you back here tomorrow ♪ >> in the '50s,@ there was a new sound. >> @♪ wake up, little susie @ ♪ wake up @ >> it had rhythms and lyrics that spoke to us. >> @♪ maybellene ♪ why can't you be true @ >> and all across america, radio stations gave us the latest hits. >> @♪ well, you can rock it,@ you can roll it ♪ ♪ do the stop and even stroll it at the hop @♪ >> there was chuck berry,@ jerry lee lewis, buddy holly,@ and of course, the king. >> @♪ well, since my ba left me ♪ ♪ well, i found a new place to dwell ♪ ♪ well, it's down at the end of lonely street