Talking with a passenger. It has been an ordeal. If any of have you been on a cruise, this is such a astonishing situation, these people, these poor people, are stuck in the worst of conditions. The stench. The filth, they cant get off the boat. The truimph is ironically named. Named. Lou yep. They give them as a gift 500 and another cruise, who is getting on another cruise after this, they must be insane. Neil chad simmons the passenger, said it right. Lou he will give them money to get the heck off, thank you for being ws, joining you tomorrow, go the flie good nighw york. Neil where is the love this valentines day in not in washington, it is clear, john boehner and barack obama are on the rocks. And were two weeks away from going off a cliff, kind of. Tonight ill tell you why this time, that kind of love does not stink. That is a good thing. Welcome i am neil cavuto, forget the chocolate, rip up the roses, no way these t parties will work this out, miles apart, i think that john boehner just said he is spent, out of here, and cupid can stick an arrow up his you know what, he didnt really say that, but that is kind of where things stand. Now before you think that is the en of the world, and the spending cuts, over 10 years, hit us hard in two weeks, im here to tell you, relax, sometimes recognizing a bad rape for what it is, a bad relationship for what it is, is a good thing. And republicans risking more spending cuts could be a good thing, bring on this sequestration thing, weadock worse, i think we are. To ford oconnelly, on whether the washington disconnecttion could be good. I think it is good, john bain are playing hard to get on valentines day, saying democrats and senate can negotiateo with president obama, then kick it over to the house, im done being the guy who gets blamed for everyone. That is a good aproach for him, it gives democrats a responsible for not having a budget, doing other things, but also gives the Republican Party unitty, which s something weve not seen for last couple years. Neil something has changed, christmastime they wanted to postpone the sequestration cuts that was a nightmare. For republicans as well as democrats, republicans more so because of the defense cuts. But now they seem to say, we rher that hell than the hell of higher taxes on offset them. I think that if john boehner is playing hard to get, the best thing for republican to do is sit back and wait for president to negotiate with senate, but this sequester is not a bad thing, i think it is a good thing, because were really talking about taking 85 billion, out of 3. 2 trillion, in federal spending, that is nothing. Then saying to federal government, guess what, you have to cut 2 to 3 pennies out of every dollar you spend for 10 ars it will make government more efficient. The fact that president does not want to egotiate with john boehner, may bring some fiscal santy to this country. Neil you make sense, we should explain 85. That you talking about is up front cost. When you hear 1. 3 trillion over 10 years, over the scheme of this 10 years were going to have a higher overall debt, no matter what they do. So, i look at the socalled cuts and realize, one thing, they are cutting off the growth of all of the programs, including defense, and a lot of entitment. Yeah, fact is that higher taxes, say that republicans give democrats a tax hike to offset sequestration, higher taxes are not sustainable, we cannot continue to raise taxes and expect them to get paid for, president obama in his state of the union made it clear that entitlentitlement programs are t getting reformed. Neil i think that democrats are looking at a different universe. I got a senate state of union, he said, im one and done with the debt. This package im close to, and math does not up that is it fur further more, come ponding this. Compounding this what math is he using, is he saying that because he is paying for more tax hikes . I think his math would make enron accoun accountant proud, g he does will add to the debt. He is fooling himself. Neil why would he propose . Crunch the numbers here. He wants to raise taxes. Neil hundreds of blions of new spending, he and not a dumb politician, he is shrewd enough. If we dont talk about this spending problem we dont have a spending problem . That is right, he thinks that basically we can raise taxes to cover what were missing with the deficit, that is not true this year well run 800 billion deficit, if we take everyone here who made a million and taxed them 100 were not even going to roach that. All the president wants to do is continue speing and he will raise taxes he think that care and nurture of the public second to is the way forward for prosperity, he is ignoring the private sector, as a result the growth will be 1. 4 . Neil you know what i read into, katie maybe you can help me, john boehner saying im done. He is tired of it, he is not playing the game if it means he will take some heat, he is willing to take the heat, my own reaction, i wish he were of that mine set about 8 weeks ago, but coming as it does now, i argue better late than never. Goodly is realizing it, the fact is that republicans have passed budget after budget, plan after plan to reform entitlement and they are not getting the credit for plans they have passed and democrats have somehow pinned blame of all economic problems on the republican, Joe John Bain are saying look were not getting credit for the work were doing so why continue to put the hard work in to the plans, if is time for democrats and white house to pro sent to us what ty want, and minoritity will look at it when they are done with the heavy lifting. Neil you know what would worry me more, i think it is a do something that pushes the sequestration cuts down the road again. However they cobble together a deal. I think that markets fall on imct on our Credit Rating would be worse. I agree with you, because i think what the predent will try to do is to raise taxes and not actually address the deficit problem, as such you will kael so much uncertainty and bring down the value of the dollar, i agree with you. Neil it scares you, totally scares. You it scares me. Yes. It scares the bejesus out of me. Thank you very much, and all of the hits fan, two weeks from tomorrow. Meanwhile, today, on this valentines day. Cupid might have to start walking, tool be too expense offer to it will be too expensive to keep flying, two airlines are teaming up, the ceos of those megagoliaths on why you just might have to pay the boys used double miles from their capital one venture card to fly home for the big family reunion. You must be garths father . Hello. Mother. Mother traveling is easy with the vture card because you can fly any airline anytime. Two words. Double miles this guy can act. Wanna play dodge rock . Oh, yoguys and with double miles you can actually use, you never miss the fun. Beard gring contest ango i win whats in wallet . I win all stations come over to mithis is for real this time. Step seven point two one two. Rify and lock. Command is locked. Five seconds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. Neil well, some security is not looking so secure. Neil al s the combat congressionalecur budget ofe,fice had been the gae could be tapped out by 2033. Now its only going to get worse because washingtons will address the problem. Owexandra and wayne rogers areyp here. That is pretty powerful. Urity the outgoing Social Security. Moralists as were running out of pens, money. , w we will be running into a buzz saw. What you think of that . Ask in 2005 my radio show ando others were asked to come to the white house and do interviews. It was all about the Bush Administration wants to do someth something about Social Securitya within minutes your hearings did scare tactics aboutwere not gete destroyed, within days, they dropped it fast forward now, same thing going on, politicians are afraid to do anything about it and days of running as we get closer. Already running a yearly loss right now, but everyone seems to worry about the next election until this changes, i think it will be the same old. Neil i think that even, administrator would agree right no it is in pretty good shape with funding necessary, and set asides to continue operating well. By compare son to other programs out there. But i guess what worries me, this is not a hoesch left or ri, but why do we have to wait until were on the brink to do something . I agree. looking at things like means testing, looking closely, carefully at raising the retirement age for certain workers. Those of us who sit behind a desk all day versus manual labor. These are all things that should be looked at neil wait a minute. Lets see you do sit behind a desk and read a prompter, are you saying that i could be in danger . I doubt that they would do it for any of us who are currently in the workforce, but looking at it for someone who may be 16 years of right now, 25years of right now, raising the retirement age a year or two would not be a hardship for those of us neil in general view on any of these changes. Not for you. Dont worry. Neil they should kick in a year older than i am for anyone in your order than i am. Wayne, what will become of this . Because, you know, senator alexander, she mentioned a number of good points. You can argue whether there was while in it, but a half a dozen very sound ideas to shore this supplement to the kind of thing not to avoid calamity later, but it is that the world where everyone is afraid to electrocuted. Well, you said it, neil. By the way, your 60s to sweet 16, so it wont affect you. We wish you the best on a balanced and that valentines day. Shes right. If you raise the age level, thats the most sensible thing to do. You have to remember, when Social Security was first passed, and a Life Expectancy was about 20 years less than it yesterday. When i raise it . You have got morons, of course, and congress dont want to do anything about anything, want to push everything down the road. You mentioned earlier this sequester and things like that. They will face it. A senate who, for four years, four years will not pass a budget. How can you run anything like that. I mean, we have crazy people in power. Thats all. Neil what is interesting is Social Security. We were so focused on other entitlements. Social security largely did not get a pass, but was hurt it was certainly not a front burner issue. Someone who has looked at his numbers and said, a train wreck. A Train Derailment if we are not careful. Looking at the money coming in and the beneficiaries coming on, i say that it is not sustainable you dont have to the Albert Einstein to know that this math does not add up and cannot be sustained. But what does wall street do a year, two years, three years, what . Well, i am a big believer that all the debt and problems we see in plain sight will eventually affect wall street and the markets, right now the,y markets love the printing of money. My big issue here is we hear 2,303, but when have they been right when they told us everything will be fine untiler then . The other part of the equationoc is just demographics. He used to be 30 barkers fort s every tyree. Or it is now two or three and liv getting worse and worse as people live longer as it goes by dont do something it gets tougher down the road, you said, this is small things that can be done here. That would really shore it up for a good long time, we cant get that done because everyone is worried about getting yelled at and the scare tactics and getting reelectioned. Thank you so much. Neil two airlines are merging it has one senator worrying, really worrying, th ceo here to say, ca calm down. Neil no sooner had american and u. S. Airways announced their merger than rockefeller of pointing on the deal, warning it could hurt consumers, to u. S. Airway ceo douglas parker, and amr ceo douglas horton, welcome to you both. Mrparker to you first, on the senators fears it would hut consumers, what do you say . Well, were happy to address the senators concerns, this merger is great for consumers, we have two complimentary networks over 900 routes served by two airlines only 12 have which overlapped. We putting it two airlines and fly to more places for more people, it will be good for consumers. Neil do you get a sense. Address this to you mr. Horton, that there is consolidation going on in the industry. After delta bought northwest, and united and continental, and southwest, and they are 4 super carriers here. So by just the virtue of fewer choices there is a fear that they will get stuck behind the 8ball lay the elay them of ther concern. I think it enhances competition, before this deal you had two megacarriers with delta and united, now a third that is fullyompetitive with those two on a global basis if you look in global context, you have their global alliances, sky, star, star, sky team and one world, this team bringing u. S. Air why theold of american makes one world that much stronger, and a more robust competitor with star and sky team. Neil i guess, as a regular flyer, and looking at industry now, you will be largest whether all said and done. But there is still so man planes out there the demand has picked up. Consumers are used to more youded planes, but there is a concern about fees going up. From where you sit on the plane to what you get on the plane. Are we going to see still more . Well there is more of a trend of having customers pay for things they value most, and not pay for things thats would rather not purchase. It has been constructive for the industry, it has been one part with consolidation and other things that led to a more profitable and healthy Airline Industry. A healthy Airline Industry is good for the country, it allows the companies to reinvest, and hire and grow, and that important for the country. Neil you know, looking at this what is going on you get that off and running. You could have other things to do with your cash, vehicle looked at other opportunities this comes at a time when a lot of companies are sitting on a lot of cash, maybe not degree of apple but so many for are are electricking aarelooking at thig different. Is any of this indicative or a statement on your part about the economy or the environment . How would you describe it . Less about the environment and more about the value you create when you combine airline networks, there was no better tune in our viewer for our shareholders than to enter into this merger. Is creates the value. This will create a billion dollar a year in synergy, that goes to the shareholders. From our perspective, you know at american we have completed what is most successful restructuring in Airline Industry, because we have done that we were able to negotiate a deal with doug that was very sensible and in fact means that the owners of american will own 72 of the newly merged enterprise. Neil finally, your view of the economy right now, and notion that president and state of Union Address other night that things are getting better. That, is back. Markets are storming back. And that in this environment, there is more room for the government to spend, more room for companies to look forward to what he has to offer, do you share that view . Ive leave out the political view on Government Spending but as it relates to the economy, it does not feel lik like it is storming back by any means, but there is a gradual growth, not dramatic but it is growth. Weve seen it in our industry, more and more people returning to the skies. Mr. Horton, a lot of people seeing their taxes go up. Will that impact, that tax hikes have you seen impact travelers, do you suspect . Well, in general higher taxes are not good for the economy or for discretionary spending, but as doug said, in nearterm, what we can see, airline demand looks pretty robust, because supply and capacity environment has been tame it makes for a healthy environment revenue environment in the Airline Business right now. Neil and finally, i do want to get into something you keep one eye on washington, this idea they could be on a verge of a brink in a couple of week of automatic spending cutting that kick in, you heard that, do you, as ceos, and big mucketty mucks, let this affect you, it is noise to you . Is it worrisome chatter to you . Your Business Plan . It didnt affect your merger announcement today, but many of your colleagues say it does and it worries them, what say you . Well, i think you control what you can control. For doug and i we can control the outcome of the merger. And we have seen this as an opportunity to create value for the companies, irrespective of the environment in washington. Neil one final line for Consumer Travel airline, this echoes back to what you said at the beginning. The benefits of it deal will go to corporation. Not to consumers, this is growing anst among the groups that represent customers there could be hell to pay from this. Why do you think that is so raant out there . That fear is so ramp arndt. I dont know rampant. I dont know, it is not rranted overtime, as the airlines merge it has been good for the business and industry, and investors. We certainly expect it to be the case here, this merger in particular, for reasons tom already stated two complimentary networks and dont reduce service, and create a third strong competitor to two Large Airlines that are out there, it is great for consumers, and time will prove it to be the case. Neil thank you for taking the time. Be well. Thank you. Neil all right, heads of u. S. Airways and amr, Parent Company of American Airline on paper signining what could be largest carrier in the work. In the meantime, Chris Christie visiting the faceboo guy, remember him, the guy in the hoodie, now some protest ores in his hood, his neighborhood. Right to his house, they protest both of these guys, what is that about . This is america. 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