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tv   On the Money  NBC  June 21, 2015 4:00pm-4:31pm PDT

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hi, everyone. welcome to "on the money" i'm fat, salt and sugar. your food and what you should know about it. do you want the government telling you more about what's in it or is that the start of a nanny state? the man who didn't pay back his student loans and why he says no one else should, either. is it in the genes? meet the family with three generatisf entrepreneurs. three men, three. >> what he's doing is like buck rogers as far as i'm concerned. >> and what's the best advice about money you ever got from your dad? find out if father knows best. >> this is "on the money," your money, y now, becky quick. >> what will happen to america's
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health care system if obamacare is overturned by the supreme court? we don't know if or when that could happen. but it is a concern that occupies a lot of people at the front lines of providing care. that includes dr. ken davis, who is the president and ceo of moun but that's not all that he is thinking about the days. he joins us right now with our cover story. and dr. davis, thank you so much fo. pleasure to be here. >> so if the supreme court overturns this what happens first of all tl, 80% of the pato are on the exchanges get the subsidies are eliminated those patients are going to look at what they're paying, which on the average their subsidy is about $300 a month. they're going to say, $3600 a year mor. so, they'r and when they drop out, that changes the insurance pool and puts into what's called the death spiral. >> is there a way for them to get coverage through other methods, if the health insurance pool changed so drastically since then? >> they can't afford it. that's the problem.
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so what are they going to do? i mean there are possibilities but none of them are really going to create the kind of robust insuran pool that you need to support. who have t >> this is always a concern. that the only way it would work was with everyone buying in, including young, healthy people, which is why you had incentives and penalties if you didn't do it. if you suddenly see that taken away, and a lot of people drop off, what does that mean for provider on the front care like your hospital? >> we've got to remember that when this bill was all being put together there were compromises from everybody on all sides. the comprom tha came from the hospital system was that we would take 300 billion dollars less over the next ten years, with the assumption that we would be picking up all these new patients that would no longer come to the emergency room and be in the hospital for uncompensa care. well, now, those $300 billion. that's gone. but the patients are go so we lose
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>> when you say $300 billion. this was money that was being provided from medicare and medicaid? yes. >> different governmen subsidie and programs? >> right. these are cuts across the board in various aspects of the medicare formula that reimburses hospitals. now, when all this takes place, the best estimates are you lose about 6 million people right away from subsidies. then you lose another 2 million who can't afford it who stay in the pool but the pools are too expensive. you lose about 8 million people. what does that mean? >> it means that everybody hurts. th patients hurt, and don't get care. the hospitals hurt because these people then come again and they've got to be taken car we have to hospitalize people until they're stabilized. >> first of all, how likely of a scenario do you think this is? and second of all, what's your plan "b"? what are you all doing in terms of getting ready for it? >> i can't predi but, the good fortune from mount
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sinai and its health system is we're in new york state and new york state has its own exchange. so this isn't going to happen in new york state. >> what states are the ones that don't have this? >> mostly the red states. the states that have the republic governors, and legislat who've decided they didn't want to become a part of the exchanges so they had the fede establish the exchange. >> let's talk about the other patient news this week. the fda is saying that it's going to ban trans fats from all foods. this is something we've been moving towards for some time but you still have a lot of trans fa tt are out there. in your opinion how important of a step is this and what does it mean for people's health? >> i think this is a great first step that the fda would d this is a very unhealthy part of the food chain. and we've got to use this as a precedent for oth unhealthy aspects of the food chain, like high fructose corn syrup. i mean we're hurting a lot of people that way. i have never seen so many young kids, adolescents, with obesity and type ii diabetes as we have today. when i was young, starting out in medicine, unheard of that you
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would see an adolescent with type ii diabetes. now not at all uncommon. >> what are trans fats? and what's the problem with them? pro -- >> they're manufactured -- >> the problem is that they are particular bad for cardiac disease. fo plaque development, and so it's a real risk factor for cardiac disease. but it's also likely a risk factor for cancers, because those kind of fats absorb a lot of the carcinogens that you don't want in your body. >> and honestly it started out in manufacturi animal-based fats that were already existing, right? >> sure. and the same way we've fallen in love with high fructose corn syrup. wee made it cheap. we subsidize corn. >> we've also seen movements in places like san francisco where they say they want warnings on sugary beverages. in new york city, they're talking about warnings in terms of sodium content when it comes to food. this is just letting people know what's in it? >> i think it's a great thing to let people know the risk they're taking. like what we put on the cigarette packages. we have to remember that some of
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these things in our food chain are the >> you think we've peaked in terms of how unhealthy of a nation we are? are we getting better in your opinn the downwd slope? >> we're not getting better. ki tell you in underprivileged communit the epidemic of obesity is a crisis. >> dr. davis thank you very much for joining us today. >> thanks for having me. >> we look forward to seeing you again. here's a look at what is making news as we head into a new week on the money. jub's meeting of the federal e has come and gone and as expected the fed held steady. it didn't raise interest rates ke another zero. the fed says that the economy wasn't strong e yet to withstand an increase though many observers expect interest rates to go up this year. the fed's lack of action helped the nasdaq to annual time high thursday and sent the dow skyrocketi tho the markets fell on friday. an apparent defeat for ride sharing compa uber. a court in california ruling that drivers are employees
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than contractors. th means uber might have to provide more benefits. uber says that the ruling applies just to the one driver and alexander hamilton will be moving soon. even though the nation's first trs been dea for more than 250 years he still occupies a place of honor on the $10 bill. this week the treasury depart announced that he will share that space on the bill with a woman who has yet to be named by the year 2020. up next we're "on the money" a trill dollar crisis looms and student borrowers are carrying the load. one man who defaulted says he thinks everyone who borrowed sh and later, are they chips off the old block? we meet three generations of entrepre who are pursuing the american dream. right here as we head to a break. take a look at
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to celebrate small business every day. recipients are achieving amazing things. >> creating local jobs. >> creati
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one trillion dollars. that is a lot of money. it happens to be the amount owed in student loans by americans of all ages. it has reached the level of a crisis. d if you look closely at the numbers, i ♪ the final exams and term papers are over. the diplomas earned. but for 70% of the more than 2 million members of the class of 2015, the real challenge is just beginning. to pay off their student loans. the average debt for the class of 2015 added up to more than 35,000 dollars. that's the largest amount ever. it's slightly better for those who attended public colleges. but the graduates of private and for-profit universities face an even tougher road according to advisers. h help students figure out how to pay for college. and more relatives are facing bills even after graduation. 17% of the parents of 2015 graduates have the own loans to pay. tuition is still on the rise,
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outpacing inflation. in fact, public tuition is up 42% over the past ten years, according to the college board. that's led to over $1 trillion in outstanding student debt owed by 40 million borrowers. the second greatest form of debt behind mortgageages. and unlike other types of debt, student loans don't disappear in one man who is living proof of that joins us right now. he says even though the conseque of default are tough, people with student loans should not pay back what they owe. in a controversial "new york op-ed piece author lee siegel details why he stopped paying his student loan debt and what could happen if student borrower fought back. thanks so much for being here today. >> tha for having me. >> first of all for people who aren't famil with your op-ed, things you said along the way, what happened? you earned both a bachelor's and a master's degree from columbia, university yes, that's right. i went to three colleges, started at priva college, then my parents went bankrupt, then i went to state college, then i went up to columbia and took out
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loans, worked my way through school. i had to take out loans. i wanted to be a college professor and that' why i got the two degrees. >> you at some point decided that this was too much for you to ever be able to pay back. how much were your loans and what kind of got you to that position? >> the principal was $48,000. the whole amount now is about $150,000. and about $66,000 is interest. but the principle is $48,000. i took out between $3,000 to $5,000 a year. mostly $4,000 a year. and i simply had to do that to get through school. >> what made you decide you weren't going t pay it back? >> i couldn't. i couldn't pay it back. i decided to be a writer. i tried to pay it back and >> i think that's the big question. e are a lot of people who wind up in difficult positions. i got out of school debt, too. i think it's fair to say that there's an absolute crisis at this point in terms of how college tuition rates are rising
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at a much faster rate than inflation. e doe seem to be any end in sight. but what gets people riled up about this is you advocating for other people not to pay back their debt. why are you saying that? >> well, that was, i think deliberate misconstrued in some cases. i was not dispensing financial advice. d people treat it as though it's a financial advice column. that's not what i do. i was saying in the best of all possible worlds in an ideal situation an act of civil disobedien, a collective act of civil disobedience might change the system. i was making a political system. i was not telling people to default, and have the consequenc. was not saying anything like that. i was sayin i was looking around. you know, the people have become too small to succeed. i was looking at this situation, kids going into medical school are not going in to the specialties which they are suited for, which they are gifted to do, but going in to
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specialts that will make them a lot of money so they can pay back their loans. people aren't finishing school. the suicide rates now are high among people in their 20s and 30s, higher than they've ever been. t part of the reason is that people are graduating with such enormous debt. >> but short of complete anarchy there has to be another solution in terms of what you would actually like to see happen. . in terms of the availability, in terms of the interest rates charged, in terms of when that interest rate clock starts ticking. i think it's kind of crazy that you take out a student loan and the clock starts ticking immediat in terms of the interest. it should probably wait until you graduate. what would you -- >> the interest rates for my loans is 9% at the moment. >> it's been a number of years though, right? >> yes. >> and could you pay back the loans today if you chose to? >> no. i don't ha no. would i if my ship came in i could pay it in one sum. instead of saving for my children to go to college, they wouldn't have to go through what i went through, gee i don't
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know. but you'd ask me what i would like to see happen. when obama first ran for president he talked about loan forgivenes and i think that the most , forgiven, in some cases. i think the government should work out some kind of a negotiatio plan with students. instead of hiring collection aejensies to pursue them. >> the pro loa forgivenes tha drives up the rate of interest rates for the people who are left in that pool. to me, it would be great if you could get pell grants or something that, especially when we're talking about interest rates that are virtually zero or the last five, six years, if you could were 2.5%, 3.5%. some along those. if you forgive everyone the loans the banks have no -- no other options but to go ahead and charge higher rates because they know those loans are going to be defoughted at a high rate and they want to get their money back. i'm not a policy expert but i say there should be means to discharge loans through bankruptcy i thi there should be means to negotiate some kind of settlement irs will allow you to negotiate a settlement if you're
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>> lee it has certainly grabbed a lot of people's attention. we appreciate your coming >> up next, we are "on the money" three generations who capitali on the trends of their time. how they did it. and what the family lessons passed down were. we're going to find out. and later, listen to your father. ho many times have you heard
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this father's day weekend we decided to ask the question, can entreprene run in the family? sf male s caught up with three entrepres who launched their own businesses, and i love this story. >> so do i. if you spent some time with this clan you may decide entreprene is genetic. take a look. >> i don't know. maybe it was in my blood. >> 90-year-old victor levy is talking about running his own family's track record he may be on to something about entrepreneurial dna. both his son paul and grandson eric went on to launch their own companies following in his foot steps. in 1956 victor and his brother bernard launched counterparts making w a eventually pants keep up with the changing times. it grew into a $100 million business and w selling across the country in major retailers >> we had the we had buyers crying where they couldn't get deliveries. >> must be some good pants, huh? >> yeah.
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>> so, paul did you grow up watching your fare as an entrepre and having takeaways fro that? >> my dad put me to work right away and wanted me to see what it was like to actually earn an paycheck, do your own part but learn from the bottom up. >> from there paul went on to open his own company, laser park, a 12,000 square foot gaming facility in times square in the 1990s. for a decade they hosted birthday parties and laser tag games in their arena, drawing celebrits from michael j. fox to brad pitt. >> we were voted the number one place in new york city for children birthday parties. in our first year of business. >> victor's company counterparts eventually folded in 1990 due to increased compe overseas. and laser tag closed after a te run because of a shift to online becaming. but the levy entrepreneurial st continues with grandson air hoik is 28, now taking a crack at being his own boss. he launched his start-up, your neighborho, in 2012. it's a yelp-style platform that
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helps provide real estate data for new york city and the five boroughs. you think it's in your genes? you have some type of entreprene bug? >> sure based on my father and grandfatr having their own businesses, i knew i wanted to at some point. i thought based on the family track record i'd have a good chance of doing it and being able to be successful at it, too. >> victor what do you think about your son and now your grandson, you know, following in >> what he's doing is, like buck rogers as far as i'm concerned. >> and becky we should note that victor the grandfather is still an active entrepre. with a small investment in that very restaur we did the interview in. he's definitely keeping busy well into his retirement. >> the three levies you think they'd ever consider going into business together? >> that was my question. it seemed like a natural fit. i ask ed them and victor said heck no, absolutely not and his son and grandson were like we can't do this. we have very different
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personalit we have different skill sets and we're from three different generations. but it's a nice trend and a tradition in the family. >> that's great. >> kate, thank you so much. kate rogers. up next on the money a look at the news for the week ahead and fathers and finance. what's the best money advice yo.
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for more on our show and our guests you can go to our web
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site and you can follow us on twitt @onthemoney. he are the stories that may impact your money. monday existing home sales for may. tuesda the census bureau will release durable goods orders for may. also on tuesday sales for new single family homes are out as well. on wednesday, we'll be getting e final estimate of gross domestic product for the first quarter. kicks off the week-long aspen ideas festival. that's where the world's foremost thinkers and leaders convene and exchange ideas. also on friday, customers can finally buy the apple watch through its retail stores. it was previously sold as it is father's day weekend, and today we're paying tribute to all dads. and the wise advice they've given us over the years. joining us is our senior personal finance correspondent sh epperson on some great money advice passed down through generation >> hi, becky. there are about 70 million fathers in the united states today. and dads and other fatherly role models can have a big influence on our financial lives, and
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>> what he told me was wherever possible try to pay cash. don't owe people money. >> buying an apartment as early as possible. not throwing awa >> probably the best advice he's ever give me is don't spend all >> wise words that are useful at . >> so what kind of other advice have fathers kind of passed down? >> you know, there's an interestg poll looking at fathers and what some of the best advice is that they gave their childre and what their children said was the first thing is, do not spend money that you don't have. of course, that's great advice for anyone. save for a rainy day and this one i love, don't quit unless you have anoth job. >> that is great advice. i like that a lot. i would guess that every generati probably has a different the to it. if you're somebody who lived through the great depression you think one way. if you live through the booming '60s you probably thought another way. >> absolutely. living through the great depression, those 65 and older
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are the ones who said don't quit your job before you have another one. that's somet that they really believed in. and when you think about baby boomers, and you think about their fathers, and what they -- what kind of tumultuous times they have lived through, they really want to focus on not spen >> what about today? what are some of the pieces of advice that young dads today are kind of telling their kids? >> this is interesting because dads of teens and 'tweens are very focused on investing. r investment advice to their kids saying now is the time to really take advantage of all the years that you have for long-term growth in the markets, and perhaps taking more risks than even they did so what's the best advice your dad ever gave you? >> well i think my dad really wanted me to always have my own money. so one of the best pieces of advice he gave me was to do that. and i took that later to mean to always be financially secure, and try to be financially independen i think it's so important. >> that is great advice. how about you? >> i think my dad the best thing he ever said i >> good advice. >> hard to stick to but good
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advice. >> hard to stick to. hard to stick to. i love the don't leave your job unless you have another one. my dad stayed at his job for almost 30 years. he believed in that. and as many people are trying to find jobs and choosing different careers and reinventing themselves it' good to do it while you have something steady. >> sharon, thank you so much. >> sure. >> that's the show for today. i'm becky quick. happy father's day to all your dads out there. and thank us. next week hang on we're going to be finding the theme park rides with the most thrills for you each week keep it right here. we're "on the money." have a great one and we'll s
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