Here to explain, doug holtzeakin, president of the American Action forum. Brian reed chief economist at Investment Company institute, a trade group that represents the Mutual Fund Industry. Guys, it has been almost six years to the day that Lehman Brothers filed bankruptcy and the government ever since has been trying to find a way to keep that kind of financial disaster from happening again. Doug, who do they have their sights on now . And what do they want to do . Well the group in question is the Financial StabilityOversight Council which was created by doddfrank. It has enormous powers to designate a Financial Institution as systematically important. If they do that, they then fall into what is meant to be a much tougher regulatory regime, specifically though, they would end up with the capital charges of 8 in, in a bankstyle regulatory setup. This is utterly inappropriate for mutual fund. It makes no sense whatsoever. It will cost people a lot of money. Gerri lets break that down for just a second because what you is a mouthful and very, very complicated. Brian, i will turn to you. Look, big banks, you know, you look at jpmorgan chase, you look at citi, you look at goldman sachs, the big investment banks, the big trading houses, those companies, boy, they can create a lot of mayhem and they sure have in the past. What about the Mutual Fund Industry . Is your industry, are you guys going to create just a nightmare for the economy . How, what are the chances . There is never been a case in 75 year history where mutual fund or Mutual Fund Investors take Financial Market problems that doddfrank intended to address. Concerns are here, rules put in place, applied to mutual funds are detrimental and detrimental to the economy as well. The flow of capital would slow,. Would stop that up like turning off a fawcett. Doug, im trying to simplify this this is not that complicated. Bunch of regulators decide the they have to put wrist discuss on mutt wall Fund Industry or close to doing it. They would essentially put in Place Capital requirements that would hamstring this industry because it doesnt operate like banks. Tell us how the structure of this business is different from a goldman sachs, different from a citibank. I can give you a very simple example how different it is, lehmans asset manager is still in business. Lehman brothers went away but asset manager is still around. Why . If you look at a mutual fund, it takes your money and invests it some stock say. That means that there is always something backing that mutual fund. They can sell the stock, give you your money back. You will never get into a problem. Gerri last time i looked it is me taking losses. Thats right. Flows right through to me. You know and i guess the fear, brian, here is what im hearing, you tell me if im right. The fear government has, every american will pull all of their dough out of the market at the same time and you know, what is going to happen . What do you respond to that . I mean you guys dont have control over that, obviously. But that is what they think is going to happen. Well, it has never happened, first of all. That is just not the way fund operate or investors operate. When i put my money in a mutual fund, im investing for the longterm. Im investing for my retirement. Im investing for my kids education. We find this money and investors are really stable. Theyre providing a base of support actually for the Capital Markets and they make the Capital Markets more stable. It is ridiculous to try to gerri here is the test, my friend. Here is the test, my friend. What happened in 2007, 2008, right . What a nightmare. People did not want to be in the markets. Did everybody pull all of their money out of mutual fund. No. That is the answer. The money pulled out was a couple of percentage of the overall asset. Vast majority of money in the market and stock fund in the beginning crisis were there during and after the crisis as well. Gerri you know, doug, i dont get it. I need you to talk to me a little bit what this ultimately could cost consumers. Because theyre telling an industry to have a capital oshkosh shun that probably doesnt need it. Where would the money come from. If you run a mutual fund, where would you pull . You. To pull it out of earnings. No other place for that money to come from. Over longterm investors life, exact person in a mutual fund were talking about 25 reduction in returns. 100,000 for lifetime investor. Gerri repeat, whoa. Repeat that. So are you telling me that you will earn 100,000 left over the lifetime of investing because of some rule from some obscure Government Committee . 100 , that is exactly what is at risk here. And remember, that obscure rule is just disguised tax. Forcing you to do something different. You might as well write the check to the federal government and its a big check. Gerri brian, quickly, i know this isnt a fast answer, but, what should be done . Should the government do anything to try to prevent another 20072008 . You know they have done that. One of the clear sources was leverage and trying to keep the amount of debt sort of manageable. Mutual fund dont issue debt. When i invest in a fund im investing directly in that stock and that bond. The actually, mutual fund provide stability and i think that is what is important to keep in mind. Regulators have dealt with it. Lets not overreach here. Gerri so bottom line, if this happens, investors like me and you will be paying double the fees on our mutual funds. I tell you, i pay enough fees already. I dont need enough fees, particularly ones instituted by the government. Doug and brian, thank you. Thank you. Gerri well the government isnt only putting your finances at risk but your safety as well. Listen to this. An Inspector General report reveals Homeland Security is quote, illprepared for potential pandemics despite having a 47 million budget. With more on this. David michael balboni, senior fellow at Homeland Security policy institute and former new york state Homeland Security director. Knows what he talks about. Michael, welcome back to the show. This is just outrageous. How did this happen . What is going on . Unfortunately if you look at gao reports in the past, government accounting office. You see this is kind of a, something happened before. This not first time this is happening. But what is happening right now, in the wake of ebola and incident, people in this country are saying, gee, are we prepared . What you find from this report. The 47 million that congress put back in 2006 has not been spent the right way. Now, when i was here in the states i had role in overseeing stockpiles here. It takes maintenance. It takes rotating the stock. Theyre not doing that. Some of the things in the report i know you have seen are kind of outrageous. 16 million surgical masks but yet they dont say why they need 16 million. Gerri why do you need 16 million surgical masks or 350,000 white coverall suits . They didnt establish a need for any of this. Just to show folks some elements out from this report, i want you to see this, 81 of antiviral medication on hand will expire next year. 84 of Hand Sanitizer stockpiles have expired. Less of an issue in my view. Stockpiles of five million in antibiotics might not be usable because how the medication is being stored. What is going on at Homeland Security . Why are we so lax about this . Particularly now when we face threats on every level . We face health threats. We face threats from isis. What are they doing . Well it is really their job to watch this. Difficult to maintain a lot of these stocks, granted. You never know when they will be used. What type of preparation you have to do. But that is what theyre supposed to do. That is their whole charter. They have oversight. Other thing you Pay Attention to, were look lack opportunity to leverage new technologies. There are antianthrax sack keynes we can use. There are cac convenience we there are different strategies we can use. If youre not focused maintaining stockpile and constantly engaged you lose those opportunities. Gerri so is this in your view a National Security issue . Were talking after all, about stuff that makes people healthier. Stuff that would protect people in the event of a national pandemic. Is that a National Security issue . It erodes peoples confidence if something were to happen the government will be able to respond. Real challenge, if you had all the right things, responding effectively to a pandemic with all the panic associated with it is very difficult thing. Go back to h1n1. Gerri no kidding. What should they be doing right now . Department of Homeland Security accepted office of Inspector General report. They say theyre correcting this. They have a whole bunch of recommendations theyre going to adopt and taking money an applying it and not walking away. Continue to monitor, rotate and make the stockpile effective. Not to have it on the shelf. Gerri given in previous reports just like this, how confident are you the problem will be fixed . That is the oversight of congress. Talking with congressman peter king this is his constant effort. Constant effort. Got to watch how the department does this stuff. Gerri great to have you here, michael. I know well see you soon. Thank you. We still have a lot more to come this hour. Including your voice. Your voice is important to us. During the show we want you to facebook me or tweet me gerriwillisfbn. Send me e ail by going to the website, gerriwillis. Com. At bottom of the hour well read emails. What you think of the show, what you would like to see. Seems were paying more for everything these days. Now you an add milk to the list. Waituntil you hear numbers coming up. Crises. Gerri dont have to tell you, you problem already know. Milk prices hit new high. Prices are up even though americans drink less of it. The high prices pushing up other Consumer Staples like cheese and pizza. For more we have the editor of supermarket guru. Com. Good to see you, phil. Welcome back to the show. So why are these prices so high . Well, there is a variety of reasons. As you point out there is actually decline in per capita consumption. There is less cows out there number one. Number two, were exporting. Number three, if we look at the drought in california, what has happened and california is the number one milkproducing state in the country. What happened is the feed is too expensive. You actually have Dairy Farmers who are selling off their cattle because they cant afford to feed the cows. Gerri wow. You know, i like milk a lot but what i like even better is butter and cheese. Lets look at those prices. They are up too. Cheese is up 7. 1 . Butter up 16. 5. This is interesting. I mean, you raised the price of milk. A whole category of things go higher in price. Phil, how does it ripple through . Well, take a look, number one, about milk. About 30 of milk is actually used for fluid milk or cream. Then, youve got the other part, about 13 , is actually used for export. Of that, 30 . But then the biggest use of milk, about half of milk is actually used for cheese. So, the ripple effect, as you point out, whether it is cheese, whether it is yogurt, cream cheese, cottage cheese, the list goes on and on, ice cream, pizza. Gerri i like it all. I do too. Milk is good for us. Lets not forget. We still have vitamind deficiencieses. We still have calcium deficiencies. Milk is a good thing. Gerri the thing that got our attention what they call class 3 milk futures. This is milk used in products like cheese and yogurt. It is up 26 this year alone. It is at the highest price now than it has ever, ever been. I just, i still dont get why those prices can go up so much when we have so much less inflation in other parts of the economy . How much of this milk are we exporting . Is that the problem . No. Only about 13 , most of that goes to either mexico, china, or canada. But, keep in mind, when we talk about the futures markets, there is speculating what is going to happen. Gerri right. For example, a lot of the food and a lot of milk used in processing today, they already have the contracts going back a year, two years, three years. So it is really projecting what the price of pizza is going to be like in a year, two years, or three years and that is what is driving it up. Gerri that is not good news. If that is where they see prices going. I want to share with viewers, a picture from dylan, who showed us his fridge. I asked people to tweet us some pictures. Dylan tweet ad picture of his coconut milk and his booze, crown royal in his refrigerator. Of the tell me what are the substitutes that are gaining a lot of ground and really selling . Well, the Fastest Growing is actually almond milk. Soy used to be but soy sales declined. Whole bunch of reasons for that. Some have to do with allergies. Some to do with scientific reports but almond milk is the clear winner right now. When it comes to coconut, were seeing a lot more growth in Coconut Water than actual coconut milk. It is about the same but Coconut Waters, many are adding sweeteners to them. They talk about hydration for athletes. Really more of a replacement for gatorade, if you would, versus cows milk. I think well see more and more alternatives as time goes on. And again, you know, per capita consumption since 1970 is down substantially. Gerri why . Were talking about it being down 40 . Gerri why . They are not drinking milk. Theyre drinking more soda. That is the number one cause. Drinking more water. And frankly a lot of Dairy Farmers, even though right now their Profit Margins are terrific because of these high prices but a lot of Dairy Farmers gone out of business because of losing those sales. Gerri i understand, being a Dairy Producer right now can be pretty lucrative. Phil, there is Nothing Better than a glass of milk and a pbj . You know what i mean, that fine eating in my view. One final question for you here. There is a, you know, the question of nutrients. Because milk gives you calcium in a way some of these alternatives do not. What should mom and dad be thinking about . Mom and dad should be thinking about vitamind and calcium both together because it aids absorption. As you point out, naturally occurring calcium is better than calcium b added to things. We see a lot of calcium in juices and like. Gerri right. Not absorbed as well in oured about dis. We have to read the labels. I agree with you about milk and Peanut Butter and jelly, perfect combination. The milk producers have gotten about that. Theyre trying to get us to drink chocolate milk. Theyre trying to put bubbles in milk. Theyre trying to do all things. Drink milk the way it is supposed to be drunk with Peanut Butter and jelly sandwich, well all be happy. Gerri well all be happy. Phil, thanks for coming on, phil, thank you. Good to see you, gerri. Thank you. Gerri maybe well get a pbj on the set. Are you drinking less milk . Vote on gerriwillis. Com. Vote on the righthand side of the screen. I will show you the results at the end of tonights show. Coming up later could doctors start treatment for children with autism as late as six months . A new study with big surprises. Bestselling vehicle stuck together with superglue. That is the ford f150. No kidding. You will want to see this. No kidding. When fixed income experts work with equity experts who work with regional experts who work with Portfolio Management experts thats when expertise happens. Mfs. Because there is no expertise without collaboration. Are we still on for tomorrow . Tomorrow. Tomorrow is full of promise. We can come back tomorrrow. And we promise to keep it that way. Csx. How tomorrow moves. What a day. Cant wait til tomorrow. Watch this. Sam always gives you the good news in person, bad news in email. Good news fedex has flat rate shipping. Its called fedex one rate. And its affordable. Sounds great. [ cell phone typing ] [ typing continues ] [ whoosh ] [ cell phones buzz, chirp ] and we have to work the weekend. Great. More good news its friday woo [ male announcer ] ship a pak via Fedex Express saver® for as low as 7. 50. [ male announcer ] ship a pak via Fedex Express saver® hey, jennar fuzz mike trooawwwwww scram g. Im crust mike jubby roll bond chow gonna lean up an kiss bet. Peas charty get town down. [laughter] borf a liver tute face stummy wag pow pam shabeeps stella nerf berms. Saxanay nay . Badumps a head. Temexiss gurrin. Juppa left. Fluppa jown brone a brood. What . Catch up on what everyones talking about with the x1 entertainment operating system. Preloaded with the latest episodes of the top 100 shows. Only from xfinity. Gerri Ford Motor Company getting ready to launch its all new 2015 f150 truck, but it is made mostly out of aluminum, the way it is put together well, it is quite interesting. With more on this, jeff flock who joins us from romeo, michigan, jeff . Just one of the interesting storylines, gerri. This is interesting truck. All aluminum right there. When you make it all out of aluminum, you take 700 pounds off the truck. Essentially you can toe and carry 700 more pound that you used to because the truck isnt 700pound heavier, right, Eric Peterson . That is absolutely right. Take the weight out of the truck it has better capabilities and better efficiencies an