Skip to main content

tv   CNN Newsroom  CNN  April 28, 2013 12:00pm-1:01pm PDT

12:00 pm
12:01 pm
three dead in a blast, more than 200 injures, nearly two weeks after the bostmbing, boston getting back to normal. but as the country mourned the dead comforts the living another question has emerged. has the outrage over the bombings doomed immigration reform. last year the united states handed out more than 1 million green cards. there are an estimated 13.1 million green card holders in the country. one was tamerlan tsarnaev the older brother suspected in the attack killed in a gun fight with police. the united states also naturalized new citizens including dzhokhar tsarnaev now charged with using a weapon of mass destruction. he is an american. both brothers in the united states legally. both brothers accused of
12:02 pm
perpetrating terrorism against a country that embraced them and all of this as they consider a bipartisan bill to reform immigration in the country. it would provide a pathway to citizenship for about 11 million people in the country illegally and create new guest worker programs. some conservatives say what happened in boston should delay this effort until we learn more about how this system failed. liberals say opponents of immigration reform are exploiting the bombing. >> let no one be so cruel as to try to use a heinous act of these two young men last week to derail the dreams and futures of millions of hard-working people. >> i think we're taking advantage of an opportunity when once in 25 years we deal with immigration to make sure that every base is covered. >> and it got a lot uglier at that senate hearing. >> to say that those who
12:03 pm
particularly were pointing to what happened the tragedy in boston as an -- i would say, excuse, for not doing a bill or delaying it many months or years -- >> i never said that. i never said that! >> i didn't say you did, sir. >> republicans in the house say they're watching the senate process and will begin introducing their own legislation. the house judiciary chairman said boston is relevant to that discussion. >> the question arises what kind of information was used in the vetting of the naturalization applications of both of the brothers as you know one succeeded in getting naturalization. the other was held up. and i think it would be very worthwhile knowing more about that process. >> this debate is about citizenship, who derves it and who doesn't. does what happened in boston make immigration more urgent or will it kill this effort all together? michael cutler is a retired agent from the immigration and
12:04 pm
naturalization process. anna nuvouro onavarro is a cnn contributor. you say the bombings should change everything about how we think about immigration? >> focusing on the mexican border is short sighted. there's so much fraud in the immigrations benefits program, and not only did the brothers get lawful status they were given political asylum. they had to articulate credible fear. they did, their parents did. the parents are back in russia. the older brother goes to russia for training cleary thas didn't have fear but this isn't new. they identified immigration fraud as an embedding tacting, and chuck schumer had been one of the architects of the architectural amnesty program, and it turned out one of the bombers in the '93 trade center attack got agricultural amnesty even though he didn't work on a farm so we know agriculture amnesty, political asylum
12:05 pm
fraud -- >> all legal ways to access the american system, which are fraudulently used by people you're saying? >> yes, and over 500,000 people who fraud their ways into the united states. >> people like paul ryan for example, argue that boston is exactly the proof that we need to reform that system that michael cutler is talking about. listen. >> we need a modern immigration system that helps us not only protect our border but protect national security and all of its aspects. if anything this is an argument for modernizing our immigration laws. >> anna in your view how does boston change the dynamic in the immigration debate? >> look christina, there are issues immigrations that are relevant that can be looked at and can be draelszed within this bill. we should do so but we should not do use it as a justification to delay what is a necessary legislative action. i think paul ryan is absolutely
12:06 pm
right. we have an antiquated system. we have no way of tracking entry and access. most of the problems we have are people who overstay their visas and we don't know where they are, who they are. we have a problem with people who are here millions of people living in the shadows that are not part of official society. we don't know who they are. and i also want to talk to you personally about this. i also came to this country as a political refugee from a country called nicaragua, which was in the middlest of communism and civil war in the '80s. most of the political refugees who come to this country, love this country, are so grateful for the opportunity we have been given to live in freedom and for the shelter we have been given in this country. we embrace the value, so i wanted to make very sure that people understand most immigrants in the united states particularly political outsiders, are people who embrace the values who love america, and we're ready to
12:07 pm
defend it with our lives if terrorists is what they are. they're not political refugees heir not representative of political refugees. >> i agree with you. look my mom came here ahead of the holocaust. i was named for my grandmother who died in the holocaust. we worked in college to open up political asylum opportunities for true refugees. the problem is people coming out of the shadows will be able to use false names. they're not even doing face-to-face interviews now to take care of the backup program, the deferred action program, so how does that provide us with additional security when we wind up giving documents to people who may well lie about who they are? the system needs to have integrity before we call upon that beleaguered system to deal with what you say are 11 million. i think if we look at the amnesty t could be 30 million or more. >> that's part of the problem, michael. we don't know how many there are, much less who they are. one of the things the senators
12:08 pm
have done in this immigration bill is said if you have good ideas of how to improve the legislation, give them to us. i encourage michael and anybody else who has good suggestions to make -- >> hold on i want to bring in the homeland security secretary janet napolitano she said the homeland immigration bill would make us safer, for example, by better tracking tamerlan tsarnaev. >> the bill does strengthen the electronic use or electronically readable and so forth, so that we don't have any manual entries, so any time we can get rid of human error or the possibility for human error, that's a good thing. >> so let me ask you, anna do you think that the homeland security department citizen immigration services the congress is going to be able to put together something that is comprehensive that is going to appeal to everyone? people who are worried about
12:09 pm
terrorist terrorists people who are worried about having enough high-tech workers. so many stake holders in good immigration reform? >> christine, i think there will be parts of the bill comprehensive bill that appeal to everybody, and there will be parts of it that people don't like. there's going to be something for everybody to like and something for everybody to dislike. i think that's pretty much how a comprehensive bill gets through congress. it's called a compromise. it's not something we have seen much in the last few years in this congress. miraculous miraculously, it's happening on both sides of the aisle, on both sides of the chambers of congress. it's a pretty -- it's a pretty infrequent sight we're seeing. and there's going to be things not everybody likes. >> the last time we saw it '86, the last massive immigration reform. president reagan said we just ended illegal immigration, and it didn't. that's what people are worried about. >> there's nothing in there about enforcement. i testified before the senate
12:10 pm
judiciary committee on the 20th. there was no discussion on how do we make sure we enforce the laws? there's only a couple thousand immigration laws if you don't enforce the laws and disincentivize coming here illegally. >> let's get back to boston. we're bringing it back to boston. those guys from what it looks like weren't violating any immigration laws. so anna just close it up for me here. does boston change the immigration debate or is it a bump? >> i think it's a bump. i think people who are against this are going to use it. they're going to use anything they can to try to derail this bill. but i think that in the end, there's enough consensus in congress to get this through and to make a constructive bill and there are issues that need to be addressed, they will. >> michael cutterler, thank you, and anna navarro, thank you for your perspective. >> one day after the bombs went off in boston elected officials
12:11 pm
already playing politics. >> you can't try to shelt erer first responders if you're in the city of boston because the federal government has said we have to close our eyes make cuts across the board to every program, and guess what? we have to send you less money to help your first responders. >> are the forced budget cuts making us less safe? that's next. our business. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs cut middle class income taxes to the lowest rate in sixty years and we're creating tax free zones for business startups. the new new york is working creating tens of thousands of new businesses, and we're just getting started. to grow or start your business visit
12:12 pm
so free credit score's redesigned site has this new score planner tool with these cool sliders. this one lets us know what happens if someone checks our credit. oh. this one lets us know what happens if we pay off our loans. yeah. what's this one do? i dunno. ♪every rose has it's thorn♪ ♪just like every night♪ ♪has it's dawn♪ score planner is free to everyone. free score applies with enrollment in bret michaels slider still in beta.
12:13 pm
i'm sorry for your loss. still doesn't feel real. our time together was... so short. well, since you had progressive's total loss coverage, we were able to replace your totaled bike with a brand-new one. the tank the exhaust...
12:14 pm
well, she looks just like roxy! you know, i'll bet she's in a better place now. [ ethereal music plays ] [ motorcycle revving ] getting you back on a brand-new bike. now, that's progressive. how much american taxpayers willing to pay for security? grover norquist frequent dwes on this program, has famously said he wanted to shrink the government down to the point where he could drown it in a bathtub. two days before the bombings in boston he spoke at a tea party rally on boston common. >> on the central issue that moves our vote we want the government to leave us alone. >> obvious lay, norquist and anyone else at that rooly couldn't perceive the events of that monday but it shows what a different time we seemed to be living in just two weeks ago as the debate over smaller government raged on.
12:15 pm
in the aftermath of the bombing, government didn't leave boston alone. thousands of law enforcement officers from every level of government descended on that city. the unprecedented manhunt shut down the metro area. residents told to stay home stay inside. but the force worked. four days after the bombing, one suspect was dead another was in custody. anna navarro is back with us. ben is a senior research scholar at the city university of new york. polls show an overwhelming approval of the massive response to the boston bombing. polls also show americans tend to favor a smaller federal government. can you have both? >> i think you can. i think there's a lot of things you can cut in the federal government without touching national security. i think when it comes to keeping our homeland safe keeping our families our country safe americans put that in a different category and have an exception for that. but we also understand that there's gigantic bureaucracies all over washington all over
12:16 pm
government that can be cut. and you know christine, one of the things that happened with the economic distress we have been going through as americans is that say most of us have had to cut. whether it's in our homes or our businesses. so i think that we don't feel all that much sympathy for government when it's told it's got to cut 2% 3%. >> and you expect your government to help you in your hour of need. you do. you expect that to be the thing that exists. >> that's one of the primary functions of government. >> ben, the response to the boston bombings remind the crowd that yes, the government can work for you, or did it not move the needle for them sdm. >> of course it reminded them of exactly that and there's so much inconsistency in how we talk about the issues. anna wants to make an exception for national security. a lot of republicans want to make an exception for the pentagon. a lot of democrats want to make an exception for entitlement programs like social security and medicaid. the problem is we all want big government where it serves us. and we all want small government for other people.- and that hypocrisy
12:17 pm
goes right across the political system and makes the life of citizens and politicians absolutely impossible. a republican congressman from florida said just yesterday, he said the trouble is we don't want the democratic big government programs. we want the republican big government programs. and i think that is really -- this hypocrisy, this inconsistency is just impossible. >> let's talk about some of the programs. earlier this week diane black, a republican from tennessee tweeted this. under president obama, food stamp enrollment has increased at ten times the rate of job creation. now, we know the spending on entitlements is expanding at the expense of discretionary spending things like education and infrastructure, but americans don't trust the government to make those decisions. what is the alternative? >> we have to figure out how to afford the government we want and want the government we can afford. that means some consistency. a lot of the issue here is not
12:18 pm
with the national debt but our unwillingness on the republican side to pay for it with revenue increases, tax increases, and on the democratic side the unwillingness to make some cuts in favor of the entitlement programs. we need to do both. president obama in recent months has been offering a compromise saying yes, we will cut some of our favorite programs. you've got to raise some of the revenues on folks you don't want to raise it on. republicans have simply been saying no and then complaining about the debt problem, but the debt problem is a matter of more expenditures revenues and you fix that not just by lowering expenditures but raising revenues and you have an inplacable quadrant of the u.s. congress saying no revenue raises no tax raises on anybody ever. that creates paralysis in government. >> one thing about the boston bombings in particular and the two suspects that was distasteful to many was of the families of the two suspects had actually had government
12:19 pm
benefits. they were quote/unquote, takers. if you were on the campaign trail, you would be talking about makers and takers. they benefitted from the safety of the american government even as the american government was trying to hunt them down. that inconsistency is something among conservatives really noted, that we are giving benefits to -- benefits we can't afford all over the place. >> i think it's appalling to any american whether you're republican democrat or libertarian, humanitarian vegetarian that someone on the doll of the united states that is receiving the charity of the united states turns around and bites the hand that is basically feeding them. that a guy who hasn't worked whose wife is working 70 80 hours a week and getting government assistance is doing terrorism against the united states and its citizens. of course it's appalling, shocking and disgusting. also you know there is abuse of the system. it's something we have to address. but i don't think it's hypocritical or inconsistent to talk about, you know some of these exceptions for national
12:20 pm
security. and i don't think it's hypocritical i don't think most americans think it's hypocritical to acknowledge that there is fat that can be cut in government. and i agree with you that there needs to be a grand bargain. a grand bargain is going to take a long time to set the framework for it. president obama would have to sell his own base frankly, on some of the things he's proposed in his last budged. republicans also have to move. there is a need for a grand bargain, but it's not going to happen overnight. >> anna navarro, we have to leave it all. so much to talk about. we'll talk with both of you. benjamin, nice to see you. have a great rest of the weekend. >> security cameras helped identify the boston bombing suspects they're becoming an increasingly effective tool for police. they aren't sheep, though. a look at the cost of surveillance next. angie's list members can tell you which provider is the best in town. you'll find reviews on everything from home repair to healthcare. now that we're expecting i like the fact
12:21 pm
that i can go onto angie's list and look for pediatricians. the service providers that i've found on angie's list actually have blown me away. join today and find out why over 1 million members count on angie's list. angie's list -- reviews you can trust. [ male announcer ] at his current pace, bob will retire when he's 153 which would be fine if bob were a vampire. but he's not. ♪ ♪ he's an architect with two kids and a mortgage. luckily, he found someone
12:22 pm
who gave him a fresh perspective on his portfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade. matt's brakes didn't sound right... i brought my car to mike at meineke... ...and we inspected his brakes for free. -free is good. -free is very good. [ male announcer ] now get 50% off brake pads and shoes at meineke.
12:23 pm
how much does it cost to keep americans safe? video surveillance of the $10 billion industry in the united states. after the events in boston experts expect demand to keep growing, but can we afford it? who pays? joining me now is zain asher. >> a typical surveillance camera
12:24 pm
like the ones used to identify the suspects in the bombings might cost a few thousand dollars. experts say in a city like new york you may need tent or 20 cameras for just good visuals on one block. you add that up and keeping new yorkers safe is a very expensive business. hard to believe these eyes in the sky play such a vital role in protecting us from harm. >> we are releasing photos of these two suspects. >> thedry definitely felt that our work was worthwhile after the photographs were released identifying the suspects. >> a victory, yes, but one that comes with a price tag. >> a camera suffch as this with a decent megapixel count today is probably about a $3,000 investment. >> this particular camera you're watching me through costs about $1,500. it's installed about 150 feet away from where i'm standing. if you zoom in you really can't see that much detail. this camera on the other hand same distance but a lot clearer.
12:25 pm
it's also double the cost. it costs about $3,000 to be installed on just one street corner. video surveillance in the u.s. is a $10 billion business. that number soared in the years after 9/11 which saw 30 million new cameras added to the streets. >> the tragedies have an impact on our industry. we're very concerned. we don't want to be perceived as opportunistic. >> from real ones to dummyies to the inconspicuous, to those monitored by humans. millions of cameras watch over the u.s. as part of the roughly $60 billion spent annually on domestic security but can we afford it sdm. >> this definitely is a time of fiscal austerity. >> and how much should cost be a factor in american safety. in london the suspects behind the railway bombings in 2005 were identified by name in just a few days. that's because the city has roughly one camera for every 14 people. a total of half a million.
12:26 pm
in new york city there are only 3,000 to 6,000. the urban institute, a nonpartisan think tank says for every dollar invested in surveillance cameras in chicago, it saves the city about $4 in other possible costs. >> those are costs associated with crimes that didn't happen. costs the courts cost to incarcerate people. >> but the cost of installing surveillance cameras doesn't fall on government alone. the boston bombing suspects were caught using footage from private stores like lord and taylor and images from ordinary citizens. evidence we all share responsibility to keep our streets safe. and i also want to mention, christine, that boston has less than 1,000 cameras, which is roughly around 1 camera for every 600 people. very different from places like london. also this is a time of budget cuts. the department of homeland security has a nationwide grant of $1.5 billion to prevent
12:27 pm
terrorism that does include things like video surveillance among many other things, but that amount has decreased by more than half from a year ago. >> and groups and libberertarians have encouraged people hey, you don't have to watch people all the time. that's the other side of the story. thanks so much. >> you see this drop? that was because of one little tweet. i'm going to explain what we're up against and why your money is in danger, coming up. there's a reason no one says "easy like monday morning." sundays are the warrior's day to unplug and recharge.
12:28 pm
what if this feeling could last all week? with centurylink as your trusted partner, it can. our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and dedicated support, your business can shine all week long. at tyco integrated security, we consider ourselves business optimizers. how? by building custom security solutions that integrate video access control, fire and intrusion protection. all backed up with world-class monitoring centers thousands of qualified technicians, and a personal passion to help protect your business. when your business is optimized like that, there's no stopping you. we are tyco integrated security. and we are sharper. [ male announcer ] when gloria and her financial advisor made a retirement plan they considered all her assets, even those held elsewhere giving her the confidence to pursue all
12:29 pm
her goals. when you want a financial advisor who sees the whole picture, turn to us. wells fargo advisors. whoa! nobody insures more bikes than progressive. do you guys ride? well... no. sometimes, yeah. yes. well, if you know anybody else who also rides send them here -- we got great coverage. it's not like bikers love their bikes more than life itself. i doubt anyone will even notice. leading the pack in motorcycle insurance. now, that's progressive. call or click today. aarrggh!
12:30 pm
the boston bombings letters containing ricin. a foiled plot to attack a train bound for new york. america is on edge. online we face a different terror. the terror of seeing your bank account fall to zero. seeing your savings account swept away. we got a taste this week. a hacker got into the associated press's account and tweeted, breaking two explosions at the white house, barack obama injured. that tweet was up for few minutes before the account was suspended, but the market responded in an instant. look at the drop. the dow fell about 145 points or 1%. even though the market bounced right back it was a scary drop for investors. experts say over the past few month, we have seen the number of cyberattacks sky rocket and
12:31 pm
the biggest threat the biggest target our banks. according to a new verizon report about 37% of information breaches were aimed at financial organizations. i want to bring in allen, director of research at the cybersecurity training organization. we watched two men shut down boston for days. that's a visible face of terrorism. the invisible, the countless hits from hackers all over the world every single day. how real is the threat of cyberterrorism? >> it's very real. in saudi arabia cyberterrorists took out 30,000 computers, just destroyed them. so it's physical damage being done but the real worry right now is financial loss. because our money used to be in vaults. now it's in a computer. when that computer goes away when you get online and there's zero in your checking account, it's the same as losing the money. and its -- go ahead. >> so if hackers are taking aim
12:32 pm
at our banks and we know they are, what kind of damage could this cause? can we overcome it and how quickly? >> well you saw what happens in a very short time. it comes right back no problem at all. if it lasts, if people try to get on and they cannot find their money and they call the bank and the bank says well we have technical troubles. we'll be back to you, if it lasts a while, people's attitudes will change. if it lasts weeks or months there's a real loss of money and it could be loss of jobs. it could have huge economic effects. and that's the real worry. >> the hackers who are getting access to our information come from everywhere. we know that 30% come from servers in china. 28% from romania, 18% from inside the u.s. and iran iran has made headlines for targeting our banks recently. how can we police the attacks that come from all over the world? >> there are so many sources
12:33 pm
that you actually can't say i'm going to focus on china or i'm going to focus on iran and try to do something about it because even if you scare the government they work through intermediaries and claim they aren't controlling them. so you have to build better defenses. and the federal government has been impotent in actually establishing defenses and showing the way. so if we're going to fix this problem, it's not going to be by getting mad at china or getting mad at iran. it's going to be by making our system safer. >> making our system safer, is the government the u.s. government prepared? is corporate america prepared to protect all this? >> surprisingly we actually know what to do. and tnment has shown the way. but the u.s. has had a massive failure in leadership in this area and all they have to do is lead by example. they show how to do it the way the australians are doing, business will follow them but as long as they don't protect federal computers well it's
12:34 pm
hard for banks to say to the federal government thank you for telling us what to do when you don't know what to do yourselves. >> how can we as individuals protect our bank accounts and investments and protect against this hacking that's happening every day? >> there's one easey solution. it actually works. there are very few things you can say this will really work but this one does. whenever you do online banking or stock trading, always do it on a machine that you do nothing else on. computers cost a couple hundred dollars now. have a computer for your banking. don't ever do e-mail on it don't ever do the web on it don't put anything on it word or excel, any other software just use it for banking. it's really the safest thing you can do especially if you're a small business because the banks don't pay you back if you lose money and you're a small business. >> that's really good advice. allen, thank you so much. have a nice weekend. >> you're welcome. >> up next the economy revved up last quarter, but the acceleration may not last. find out why next. >> and later, the new face of
12:35 pm
charity. online crowd collecting has taken off, but are you one click away from a scam? ttvwkun+og#wvs#q'ppu;v?"l4#p/wlñkñ0k9%"@nkgh@@e+ó( try charmin ultra strong. it cleans so well and you can use up to four times lesstt@l"bé o,oh than the leading value brand.ttvwkun+og#wvs#q'ppu;v?
12:36 pm
for thousands of home businesses. because at® you can pay, print and have your packages picked up for free. i can even drop off free boxes. i wear a lot of hats. well, technically i wear one. the u.s. postal service® no business too small.
12:37 pm
gross domestic product is the broadest measure of our economic output. by that measure, it looks like economy's economy is picking up steam again. on friday the commerce department said gdp grew by an annual rate of 2.5% in the first three months of the year. for perspective, they look for growth of 3% or higher to signal a real recovery. nevertheless the 2.5% number looks especially good when compared to a measly growth america witnessed in the last
12:38 pm
quarter, so time to break out the champagne? maybe not. we're already seeing slower retail sales job growth and manufacturing output and when you factor in the effects that higher payroll taxes could have on consumer spending as well as the forced government spending cuts sequester, what that could do to the economic expansion, you might want to hold the champagne for another occasion. steven moore is on the wall street journal. robert robert reich worked under president clinton. should we be happy with 2.5% growth? >> let's take anything we can get. the average growth over the last year has been about 2%. we're definitely going in the right direction, but i agree with you. it is too early to break out the champagne. there are a lot of storm clouds on the horizon, the sequester.
12:39 pm
about as low as we had since 1979. >> is that because of retiring? are they giving up hope or retiring? >> well, some of them are undoubtedly giving up hope. they're not moving back into work. many of them are men who are over 55 years old. they can't get work. they have been out of work for a record length of time. it's doubtful they're ever going to get back into the work force. >> steven, the sequester took effect march 1st. the sky has not fallen yet. everything is still here. can the u.s. afford to pull back spending when this recovery is is still so delicate? >> well, that's a good question. if you look at this new gdp report, it is pretty clear that if you take out government actually private sector growth was above 3% which is decent. look, i actually think that the sequester has been pretty bullish for the markets. i think that the investors and businesses like to see the governments getting at least semi serious about reining in
12:40 pm
spending and reining in the deficit. i don't buy the argument this is bad for the economy. i am a flyer all the time by the way, christine, so i don't like the delays at airports, but i think they can fix that problem and we can move forward. look, i just worry that we're on this kind of path right now of as you said 2% to 2.5% growth, and that is too slow. i compared this recovery that we have had now which is almost four years old to the last ten recoveries and we're only growing at about half the pace we should be. christine, that's a big problem, why we're not creating the jobs and the incomes that we all want to see. >> here is the thing. you guys agree this is a horrible recovery. >> right. that's very rare by the way. we almost never agree. >> i have a feeling you do not agree on how to fix it and i have a feeling you don't agree on how to fix it or how come. robert, i don't think that you think this is a good time to be pulling back on public sector spending, is it? >> no, because when you have the private sector still very, very reluctant to spend, not only
12:41 pm
businesses are reluctant to invest but consumers, one thing we saw out of this report from the commerce department today is the consumers although they're spending up, the savings went way down and if you combine that with a bad jobs report for march and also a lot of worries about their taxes, their social security taxes going up, and the sequester, i am concerned that for the government to pull back right now is exactly the wrong time. >> you know what is interesting about this robert you and i have debated this for a number of years, you said that taxes don't really matter. one of the interesting things about this report is we saw a big increase in reported income in the fourth quarter of 2012 and then this quarter we actually saw a very big decline in income, both reported income, dividend income and i think that's because we raised these tax rates and, christine, i think that's the bigger problem with the economy than the sequester, spending cuts. >> here again, with great
12:42 pm
trepidation i agree with steven moore. i think it was wrong to raise the social security taxes and also it doesn't make sense. the social security tax holiday was very important. it doesn't amount to a huge amount of money per family, but, listen, it is still $1,000 and for most families $1,000 makes a big deal of difference in terms of discretionary spending. it is said that economic forecasters exist in order to make astrologers look good. let me warn, i am not bullish on the next quarter or the quarter following. i think that the storm clouds are too large right now. >> let me bring in around the rest of the world, too. it is not just the u.s. the imf revised its forecast for the year, the world's two largest economies, u.s. and china, expecting to see slower growth than before and europe in recession largely because many say across the board austerity. does the rest of the world
12:43 pm
slowdown mean a stall in the u.s. is inevitable and i know how you feel about. this you have just told us you think you're not bullish the next couple of quarters so i will ask you, are you concerned by what you see? 27% unemployment in spain, we're celebrating 7.6% here. how much drag is that on us? >> christine, the way i look at it, we're the life raft for the world economy right now. we're one of the few economies actually growing albeit not as rapidly as we want. when europe slows down, when china slows down, there is no question about it. that has a negative impact on american economic growth and the question is as europe is virtually in recession right now, makes it very difficult for the u.s. economy to grow. that's why i'm with robert reich. this is very rare by the way, that i think the next couple quarters could be smoot sledding. >> i think the sky may have fallen. i will revise my earlier statement and take with great trepidation one agrees with the other and the other agrees with
12:44 pm
the other. love it. i love consensus. gentlemen, thank you so much. nice to see you. robert and steven, have a great weekend, guys. good news. go back to the usual misery of flying. >> we'll all pay the price. what can you do? you grin and bear it. >> they need it fix it. i just wanting to home. >> the elected leaders have stepped in to keep air traffic controllers on the job. now can they solve the rest of the forced budget cuts? that's next on "your money." is our business. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs cut middle class income taxes to the lowest rate in sixty years and we're creating tax free zones for business startups. the new new york is working creating tens of thousands of new businesses, and we're just getting started. to grow or start your business visit [ female announcer ] switch to swiffer 360 duster extender and you'll dump your old duster. swiffer 360 duster extender cleans high and low with
12:45 pm
thick all around fibers that attract and lock up to two times more dust than a feather duster. swiffer gives cleaning a whole new meaning. oh hey mike. what are you up to? oh, just diagramming this accident with my state farm pocket agent app. you can also get a quote and pay your premium with this thing. i thought state farm didn't have all those apps? where did you hear that? the internet. and you believed it? yeah. they can't put anything on the internet that isn't true. where did you hear that? [ both ] the internet. oh look. here comes my date. i met him on the internet. he's a french model. uh, bonjour. [ male announcer ] state farm. more mobile than ever. get to a better state.
12:46 pm
we had never used a contractor before and didn't know where to start. at angie's list, you'll find reviews on everything from home repair to healthcare written by people just like you.
12:47 pm
no company can pay to be on angie's list, so you can trust what you're reading. angie's list is like having thousands of close neighbors where i can go ask for personal recommendations. that's the idea. before you have any work done, check angie's list. from roofers to plumbers to dentists and more angie's list -- reviews you can trust. i love you, angie. sorry, honey. further proof that all it takes to get washington to act is a deadline that has passed and disgruntled constituents. across the country this week travelers were greeted with this. the cause, the sequester. the department of transportation had been warning for months about the effect of cutting $600 million from the faa budget. but last sunday furloughs kicked in for 47,000 faa workers, including 15,000 air traffic controllers. that meant every day, 10% of the
12:48 pm
faa's work force had to take an unpaid day off. 5800 flies were delayed in the first three days of furloughs. that's compared to 2,500 delays over the same period last year. democrats had argued for a complete fix to the forced budget cuts but les than a week into the furloughs, your elected leaders have intervened to give the department of transportation more flexibility into determining how cuts are made. >> the problem is this is just a band-aid solution. the funding associated with the furloughs at the faa is i think, $253 million. that's one half of 1%. one half of 1% of the sequester. experience now can just be blamed on the usual misery of flying. nancy cook is an economic and fiscal policy correspondent for the national journal and josh marks, the executive director of the aviation institute. nancy, i want to start with you. one month into the forced budget cuts polls show around half of
12:49 pm
americans still don't know whether the cuts were good or bad for the country. was this wange that? >> well, i think that we're just starting to see the cuts. i certainly think that the polling hasn't necessarily kept pace with the way that we have seen the cuts. i certainly think that tons of passengers and people that were going through airports were really frustrated by the sequester cuts and we're starting to see other things like furloughs of employees at the white house budget office, the irs, and so the more and more consumers see this sequester affect their daily lives the more upset they will be. the question is whether or not the faa cuts and the new flexibility that the atecy has to deal with it basically lessens the impact of the sequester so people still don't see how it affects them. >> let me bring you in. republicans say the obama administration has gone out of its way to make the forced budget cuts feel harsh and the
12:50 pm
white house blamed congress for passing the sequester. josh you say the faa's problems started long before this latest rouchbd cuts. >> the faa has been struggling for decades now with an air traffic control system based on antiquated technology. it is inefficient to run the radar based system and take as lot of controllers to do so. when you have a situation like we did this week where you have a 10% cut in manpower, the effects are immediately felt in the system, and the predictions that there was going to be chaos in the air system didn't take long to manifest themselves, and throw in a little bit of bad weather early in the week in new york and the effects were very, very clear to everybody. >> josh, i know it was a pain. it was a real pain in the neck. was the flying public ever at risk? >> from a safety perspective, no, and of course the faa managed air space capacity in order to maintain the same level of safety. it was never a question of risk to the traveling public. it is just that given the safety
12:51 pm
standards that have to be maintained, when you take controllers out of the picture, and you have to make do on a lower staffing level, there is going to be fewer flights that can be handled and that's what we saw with the delays. >> nancy, these delays are basically the most visible, the most widespread of the forced budget cuts up to now and washington approving a temporary solution for the fur lows, but does that make it less likely we'll see a complete fix for the sequester or do we have a congress that's going to lurch from crisis to crisis and when people scream and yell and suddenly they will play the hero? >> i think it does make it less likely we'll see an ultimate full fix of the sequester. what this has done is really encourages special interests and different groups to say, hey, if you lobby enough and you cause enough stink, you can certainly get your portion of the cuts undone. so i think what we'll see is a huge effort by lobbying and special interest groups to go to congress and go to the white
12:52 pm
house and try to get their cuts undone and i think we may not see that, though, for programs that hit low-ncome people, things like housing assistance, things like the head start, and people that don't necessarily have the same advocates or lobbying dollars as bigger industries. i think those people will still feel the cuts. >> nancy cook and josh, so nice to see both of you. thanks this morning. >> thanks. a tremendous show of support for victims of the boston marathon bombing through crowd funding online. more than $25 million from all over the world was raised in one week. what you need to know about those sites next.
12:53 pm
♪ ♪ ♪ ♪ [ female announcer ] nothing gets you going quite like the power of quaker oats. today is going to be epic. quaker up. whoa! nobody insures more bikes than progressive. do you guys ride? well... no. sometimes, yeah. yes. well, if you know anybody else who also rides send them here -- we got great coverage. it's not like bikers love their bikes more than life itself. i doubt anyone will even notice. leading the pack in motorcycle insurance. now, that's progressive. call or click today. aarrggh!
12:54 pm
the american dream is of a better future a confident retirement. those dreams have taken a beating lately. but no way we're going to let them die. ♪ ♪ ameriprise advisors can help keep your dreams alive like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. and that's what they can do with you. that's how ameriprise puts more within reach. ♪ ♪
12:55 pm
the terror attack at the boston marathon showed us the worst side of humanity. but as we try to understand why, we've also seen the best in people. emergency doctors and specialists worked around the clock and it hasn't stopped there. all over the world people are digging deep into their pockets to point, click, and give. >> bucks for bauman. help the white family recover. fix dave's boat. charitable fundraising has come a long way since the celebrity telethon following the tragedies of 9/11, katrina and haiti. in the seven days since the boston marathon bombing, more than $25 million was raised to benefit victims and their families through crowd funding. sites like "go fund me," give forward and fundly allow anyone to go on live and raise money.
12:56 pm
it works quickly and let's donors she who is goes to. funding for a dancer that lost the bombing. >> when someone tries to stop from you doing something or something happened in your life where it is not exactly what you expected, you have to conquer that, and you have to find the better side of it. >> while these sites have the intentions, donors need to be careful. told us for every legitimate page on the site two had to be shut down because of fraud and because they're so new, none of these sites has been evaluated by watchdogs like charity navigator. >> they have no track record. they have no financial reports that we can look at. there is no real data to show whether or not they're going to be legitimate and effective. >> there are fees. they can be as high as 8% of your donation depending on the site. that's why massachusetts governor deval patrick and boston mayor thomas menino established the one fund. >> this fund will be managed by
12:57 pm
an experienced, effective leader who is with us today, ken feinberg. many of you know, the mayor and i have known for a long time. all of the money will go to victims, none to administrative costs. >> we think that that would be a safer approach. the problem is it may take longer for the money to get there. as least you have a more thorough vetting to make sure when it does get there, it gets to the right people. >> technology may be the end of the celebrity telethon. good thing jerry lewis is retired. >> one more thing to consider with crowd funding sites. because you're giving money to an individual and not a recognized charity, your donation won't qualify for a tax deduction. thanks for joining us the conversation this week. we're here every saturday 9:30 a.m. and 2:00 p.m. eastern, every sunday at 3:00. find me on facebook at christineromanscnn and on twitter. have a great weekend.
12:58 pm
hello, everybody. i'm carol costello. thank you so much for joining us. we're of course live coverage. as you can see, it is a gorgeous day in the city of boston. i'm standing near copley square in the midst of the spontaneous memorial. just take a look at how this thing has grown. people all day long have been brig flowers and stuffed animals. they've been writing beautiful messages in honor
12:59 pm
1:00 pm