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Why seriously laughing at the start of the show that -- have been -- Chris kind of thoughts is dot com live because we're gonna have a a hair expert.
Later on the -- of course that she says besides I have -- -- -- on the TV here and I gray -- my family.
And that she said -- it's not it's not your father's eyes in mother's side.
And I said all my grandfather on mother's side -- -- and so a lot of his brother's.
What will it take you later on like before the malignant -- those things that -- and I said but.
If I'm gonna go I at least want -- get the power Alley where confers.
Business like stay.
Nobody worth the power alleys like think we we have if we saw in the Bruce Willis when he started the -- ball in his -- in the power -- they're going to go.
Yeah -- not lose it right in the middle.
Six the worst thing you want a seat back.
You -- -- flattened -- the exactly -- I was an updated the -- you know exactly when talking about if you're gonna go Healey please let me go at the power alleys.
The legal balding spot in the -- -- at the where you're going out there or whatever but if I'm going gray -- -- -- -- out my my my uncle has is beautiful.
Well I had little more salt than it's been more importantly than my hair is certainly not families there -- -- But is the fact in the market is actually posit my way out it's wacky up fourteen points we were down significantly early in the day that look like you're headed for is the follow through what -- seen yesterday.
-- with that you're a horrible day down to 25 and really we've had tremendous volatility over the last week and a half.
And that continues today but at least at the point at the time being we've moved into positive direction.
And that's some sort of figure out rights and we still have all the grease nonsense going on the whole notion of contagion we've been talking about the -- morning how hard it spread to the spread to the US.
But then -- and the states we hear that.
With -- ADP report which state with a grain of salt showed 32000.
Just service jobs.
Certain shot I would just podtech I don't and the government job hired up that's something I -- number came in -- that's better than down so.
Maybe things aren't so awful here maybe that's what we're starting to digest now that the whole -- things gone for this hour.
Com I think you that you -- I may be real catalysts on -- company.
It might have been the catharsis.
-- -- cathartic thought process this morning with what was going on -- -- -- 100000 people rioting in the streets Papandreou's speaking.
It might have been like all right you got -- that is system now because guess what.
You all are going to go through with these austerity measures you are going to do it what do you riot Whittier a large group of -- union labor.
-- it in the public sector.
It doesn't matter that you can -- -- you want.
We you're gonna go through with this and I think maybe there might be some of that thinking right now at sun or that 145 billion dollars is just gone to -- many the fear yesterday was if it's a 145 billion for Greece is -- half a trillion for Spain.
At one point -- and is -- a lot more for some of these other country.
-- that's argument for why do this in the first place because it's gonna keep going we're gonna have to keep bailing out and that contagion -- as he continues I think he made great point though that.
Come and year -- in the streets people.
Greeks in particular -- -- live -- life all these years and this is where you are and that will have to you gotta give California some credit for the fact that there a hole and they get it soared up.
So let me get attempts to -- -- within reason -- -- -- I didn't don't admitted the.
The biggest problem is that -- a third of the entire employment force in Greece is civil.
Workers so yeah that's why you have so many people against the because those the ones we're gonna get hurt when you go -- California make it changes what's gonna happen the government workers.
-- they are going to be the most upset but it isn't such a large percentage as it is in Greece not -- that's and and Ireland is different as well.
Yeah I only has taken the austerity measures and running with -- because they realize it's either a or B it's tough choices.
It's making sacrifices.
Or its financial chaos -- and it will.
Anarchy and civil war -- -- that's the other.
And I'm not want to tip my hat at the -- ever.
But they did -- look -- but they can't handle that well.
What are the reasons we talk about contagion all the time is -- you act act had to put my numbers US sold a 190 billion dollars in debt from these.
Pig countries and I hate to say that that acronym I think he says that we're proud to have the right up anywhere from 57%.
Of that CU the US -- off.
Could potentially be what ninety billion dollars these are banks and suddenly you either US banks holding debt and finance -- that's a lot of money so that's what we start to worry about contagion not to mention.
We're putting in.
Close of forty billion as part of the IMF.
With the I don't know and I I still -- at some points on the next.
Couple of days and let's try get a handle on he -- very complicated.
How bad is that payment not ninety million dollars and ninety billion dollars.
-- what percentage of the I get an end French banks are really gonna suffer and German banks are really gonna suffer if increased defaults but.
Com does Greece need to default do we do we need to see does speak and even the UK.
-- with a tremendous amount of debt to they need to see what will happen if they don't accept austerity measures do they need to see what we know why.
End up like that would be better except these tough choices -- -- -- yeah I would like to end up.
-- -- a great -- and it wouldn't Nike later today that he's talking to its investors and first time this basically start patent.
Nineteen hosting the world.
Cup -- South America.
Cover of Vanity Fair this month called my I even Elena must be doing -- I had to share.
Could you see you gentlemen on the cover consummate -- soon you have.
You know you know little you know -- those people didn't care who McGovern could put that.
That's when she was I was.
Didier Drogba again let me get back let me yeah I don't know though and if you're Manchester United fan -- -- you're unhappy with Christian on the out of that this happens.
And -- on the other guy Rezko and away -- drug was from the Ivory Coast going to be competing in the World Cup coming up.
This easy for me it's all about soccer for you it's about these two people on the cover of Vanity Fair and you have no idea who they are again does it matter.
-- I guess you see Megan -- yes today.
I know who's in passing out hey let's talk more about this market and joining us and have any kind of -- he is here present -- Thousands that is a blue -- -- good to -- -- thank you can always there thank your play well what we're -- here were positive just barely -- them at least were flat hale take a flat day given what we've seen lately you know what do you make.
Just they're pretty much and in line with what I thought would happen.
Richard B that please -- -- that we have up an air pocket type of correction.
Though we had enough technical deterioration taking place in the market you got enough reasons and catalyst of the negative -- You have this season now all of the elements that -- you put all this stuff together and they bought you don't have a a major turn.
Set of circumstances behind -- so you know -- now.
Something between five to 10% like we had January 19 the February 8 now if you get something more than that.
Then you want to be really extremely concerned because then that can be that the signal.
That you're now setting up for a larger longer term distribution will face that leads -- something much most of.
So -- -- -- not particularly number -- technical number on the S&P 500 for example he set it at 7% 8% 10% and once you get below and above the closed below that number then -- sand all bets are off.
Anything less than what we had which is not clear on -- 9% correction from January 19 of February 8 -- anything less than that would be fine.
Okay anything more than that and would signal that we're looking at a reversal.
And then you'll have an opportunity you get that cracked -- and -- get the rally back to be something of a rally there's still a fair amount of residual strength and then from that point going forward.
That's when you really want to be concerned.
So this year and this has nothing to do things this is Mario what they're looking -- some good grief isn't going away this is going to be if you're going to be back again we're -- and see another 200 point drop because somebody does something for another country riots so it.
So what what what happens.
A -- you know the adage sell in May and go away.
My expression is selling -- and pray.
And pray exactly the point that you brought -- that it doesn't inflate out in the case of Greece to Spain.
Which is like five times bigger than greens are -- couldn't play that what's happening in the gulf which is not a spill it's not a leak.
Well because what happens in your bathroom faucet OK let's suppose when you drop a little go to water in the kitchen.
It's neither it's a gusher.
And if that gusher continues and that they put this containment on it and it doesn't work and -- come -- months and that stuff.
Hopefully doesn't but gets into the gulf stream -- -- took him up -- Florida the whole coast on a piece kind you know just.
It's -- -- -- these things don't happen because that could lead to something much more substantial -- inflation.
Current yeah contagion and those kind of things right now.
Not a given may -- Possibly take a little money off the table stand aside seasonality receive their issues among others -- including the Democrats in the battle that's going on.
Be -- between Obama and the Democrats and -- -- is they are.
About regulatory reform and other reform to its army to much uncertainty right now -- -- much out there to be able to be comfortable -- market particularly even if that there were up so much from march -- got to correct to justify a sixteen to eighteen PE and using that rather simplistic rule of twenty.
You know the rule of twenty is PE ratio of twenty minus inflation rate let's say 2% that brings -- from twenty down 1818.
-- a justifiable PE.
I'm not buying and I think that -- -- sufficiently uncertain times and incentives for quite some time sort of give the double is that right consumables were right.
They got this -- in terms of earnings in terms of PE ratio.
At some point I think that they have to be a certain sense of reality sink into investors and then the other -- run just to quickly touch on it.
I would watch any potential impact of hedge funds because they've been -- driver to this market.
If hedge funds get impacted in any -- there and of course -- little and his financial regulatory reform.
They've been the drivers to this market they've been the principal buyers -- the fast money crowd they're out the door that's when you can get a much more substantial correction.
But what happens in the -- -- out on the sidelines and say that -- but does it come now to the come back.
Behind the eight ball like he typically does won't remember it today than we were close to four -- history -- -- four trillion.
When the -- in the S&P was down around you know 666.
And 700 OK well now it's three trillion.
Maybe a little less than not actually the numbers are just started continue to trend going on -- and you know cash is king at this moment and I think gold.
There's awfully attractive too because a tremendous amounts of uncertainty that's fair.
So you think the Tracy's point we get that 10% correction.
And even though we have all this money on the sideline and there may be a lot of people that missed a large portion of this and are waiting for that moment today you still think they wait.
Even further beyond and I -- It's a self help Canada become back -- you get a five to 10% correction.
Right depending upon the quality of that correction let's say it's -- contain.
All right fraud -- -- through and and you do get a level of improvement in international marketers have been terrible.
I mean their performance vis a vis the US.
Makes it look like -- generals are moving out which is United States and infantry wrestled world markets aren't following and that's always a prescription for disaster for the market's going far but let's say that in this correction they start to improve their relative strength improves the concerns about what's going on in China.
And you know housing bubble and things of that sort.
They -- a moderate to some degree and you -- in the price action put a price action starts to improve.
Then you want to be putting more money to work into the market for the rally back on up maybe even to new highs.
By the end of the of -- -- very flexible.
This is a year.
Okay you ready for this this is -- -- to be by structural.
All right by structural means.
I can go long you go sure I fell by Sasha will be ice box you'll be very flexible writing that down write that down my structural.
I've already secured my -- It's not.
I didn't have to take money out of this deal many fat and it didn't but it had a very flexible as the kid but I gotta gotta be very fluid with the situated 2010.
Said you gonna is gonna be a fluid here and here anyway last year was the big -- You know you made the bad the asset allocation that this year you really have to be much more.
Discrete and discriminatory but felt we -- to be -- Praying that they get it together in the EU could you think we're praying that.
They get together in DC there.
And basically we're praying that we here in the United States you know stop CNN housing -- false stop seeing unemployment.
Rise and -- consumer that gets back out there that says -- many know Venus.
That's exactly right let me give you one sliver of good news that a strong Politico today.
Is backing a bill in regards to ten billion dollars of credits for small businesses the engine of job growth and United States.
That's the one thing that I've seen recently that looks promising that could be helpful.
It bit offended many I -- these credits to be a bunch of PR garbage.
People business is doing these credits and you know anything the payroll tax holiday could that have been instantaneous what they were also we talked about it and it what I don't want you credit for a new piece of equipment if I'm not on the market for equipment -- That I think that may be true Tracy but they're also talking about.
A 100% capital gains exemption I think -- something like that for small businesses.
It in the bottom line is that it at least that's constructive -- -- -- the job creation area.
I don't -- don't -- on the negative side of the equation I don't by the US consumer riding to the rescue combing over the hill like -- calvary.
And bailing out the world economy with more spending I couldn't they just did that to me is very very problematic.
To any good to see is over -- -- -- thanks for and provide pleasure.
When I love -- -- today we did.
By by in May and press number.
And that is -- -- and for Elena and pray and.
Well anyway he -- thoughtful.
And I think with the I even say that they demanding it is and have -- Committee Carolina president global investments that is that blue marble research seeing this again we've got a lot more to talk about.
A list -- -- businesses and taxes whether it's Greece.
Com we're going to the ones there for sure have app -- and we pressed him.
Let's not forget about Neil Cavuto tonight's you don't want to miss it along with Steve Carly.
They'll put -- CEO one great place to get some tickets below the -- don't -- Flew back foxbusiness.com.
Live Chris cutter Tracy Byrnes a sort of loss -- around break even for the day.
On the Dow Jones Industrial Average now down.
Of all four points.
But that's OK considering where we've been and it's volatility we've had to experience of the last week and I did yes I was just gonna touch so I write I am not -- -- what I got to let that slide by -- -- is here with this on the desk chief economist for the small business in entrepreneurship council -- re welcome in the show it to be here -- -- he recently put out your business tax index for 2010.
Explaining what this tells us.
We look at is the that we compare the fifty states and the District of Columbia on sixteen different tax measures so that impact small businesses -- -- -- so.
Personal income tax rates capital gains taxes property taxes and a long list of measures.
And would come up with.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- be where the -- Yet no corporate and no personal income tax.
-- This if you're -- this small business in California right now.
Hit that they -- well later on that podium -- right now simply -- Texas -- -- big battle with Nevada and didn't it goes to goes into the ads in the development agencies from each state battle and you know they've been battling an -- for many years or so speaking of California that's got to be among the worse -- -- the District of Columbia is dead last we keep them in there to make everybody else feel better than when there.
New Jersey is very core I -- Minnesota.
California New York.
Yeah I mean those of the worst booking meeting in Minnesota to me you don't really hear a whole lot about I guess because it is our identity yet again corporations based in me I guess that's a big is your -- Jersey -- -- why -- -- -- -- population issue all those -- to play but when you look at the -- -- -- -- you've got to be -- in a lot of different -- to -- the -- so.
Yeah I mean in Minnesota rank in there with new York and California in terms of the troubles and.
So if I -- small business today I would look at your little list -- say.
Ninth and got not from the majority of my business -- -- to a remote.
Why would in every all these little its entrepreneurial businesses set up in these phenomenal State's one of the it's.
Some things that I like to look at it from the called net domestic migration and what -- just that's simply the movement between the states where people remove this sector -- International immigration births and deaths and guess what when you look at our measures.
People are moving from the states the low tax to moving to the local -- they've -- away from the context is always seems to happen enemy and that and then it affects tax revenue and a state like California California has a lower tax revenues.
They have to raise taxes more people eat and eat -- have lower tax revenue.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And I hate to do this is a little -- -- in the anatomy to.
Such a great city Austin, Texas you talk about technology moving from Silicon Valley.
So much of it is moving to a city like Austin, Texas medium size comparison the other larger cities but growing you've got the university there needed to -- -- right.
And you've got the tax structure now for companies to come -- and -- business.
Right and it's you know the other thing people into well that is the big states small state thing it's not and I like the fact that Texas and Florida went very well in new York and California ranked very poorly so this isn't about.
You -- big or small rural or or in -- -- it's about the decisions that are made by the politicians.
Says -- -- small business today I would incorporate myself in a state like Texas.
Because then my business doesn't look -- my personal return and my corporation doesn't mean -- right next.
I think -- -- that easy.
Actually it is I mean -- young urban.
A whole host of other factors come into life decisions -- business decision maker and otherwise none of -- would be in New York we'd -- be in -- right but the question is.
Our is the tax structure and you know regulatory issues are they a plus or minus for the state and obviously when you look at the states that line towards the -- -- mind.
That your state that you know you mentioned with south Dakota's number one on your list obviously they're trying to attract.
If -- state like that in that situation are you looking at Texas and saying I need to copy what they're doing and are any states looking at Texas as a model and making some strides to become better.
Yeah I think so when you look at for example Ohio is now -- our top ten that's been a recent move -- and they've made some positive changes on the tax when they have to because they're in trouble with now.
The Rust Belt automobiles and everything else so they've made some positive news.
You know you mentioned South Dakota North Dakota kind of notices -- South Dakota doing and they've made some positive changes -- so they're trying to.
Move in the right direction and -- you know -- only unfortunately.
Really only a handful of states especially over the last couple years with the economy they've made positive and is and is now unfortunate a lot of states that have yet -- wrong during.
Saying short term trying to meet meet those you know.
Annual tax revenue numbers.
Great great to see -- I think -- -- breaking eighty chief economist for the small business and entrepreneurship council estimates update on the latest business tax index.
And -- -- I think you're gonna get us up to date on the latest market movers because we have turned positive -- just right now on the market.
That's -- moving my hair -- just.
The air conditioning it's freezing in here I feel breezes coming from behind me at some of them have been well that's not -- -- -- on show.
Where yesterday after the show I noticed that I was about to ask you that we earlier in the meeting Allison what do you don't get me to -- Bon Jovi concert tonight they poisons -- Tyler -- Can get on him and what's moving among the -- I won't bust your chops -- involved it's called.
Getting colder by the minute Garmin now in the what happened -- -- navigation devices -- -- guess I don't know I think.
-- -- -- -- -- -- -- 46 point five million dollars in currency losses that I think is actually more and very important says -- -- gone on today and they also missing analysts' expectation.
That reporter News -- is -- avatar helped new square the parent company of this on channel blow it out of low water.
They reported a 19%.
Increase in fiscal third quarter revenue.
Advertising rebound I thought that was very impressive all the most important thing to come out of a conference call at that that ad revenue is coming back -- that was bit.
Yet and it can run -- performance 3-D epic avatar which I've yet to see.
-- -- though because outlook was a little bit of a let down the people did you see avatar they don't have another avatar mean as well as that I had a huge smartly buyers wait till I got to keep fallen into some pay attention as a percent of our.
-- -- -- -- -- -- -- -- -- -- -- Eight get any -- -- home shopping network.
First quarter results topped expectations not angry -- still growth come and who buying so many infomercials.
-- -- thumbing their grades up.
Tony little filled -- -- -- -- little bit it's -- unique the end.
-- the pony -- yeah well yeah yet Todd English has up cans I mean you by the crazy stuff Ballard's Brian Gay -- They have is up 5%.
They have a very loyal following that's the -- people watching it every night and just buying stuff and TV shows -- -- TV shows.
These are the people I gotta have that you know I got -- Tony little -- and I got to have a I had a neighbor when she died you well -- was one of -- you open house and you couldn't even open the door it was to pass the idea passes that's never even opened you know.
XL capital first quarter earnings surged believe they're not -- -- slim profit last year this property casualty insurers so it's kind of good to see exceeded expectations.
-- happening front as well so those are good numbers and -- loves -- force.
Condemned what it reminds me GeForce eight of them was he wouldn't answer to that something -- support of -- course or that.
But it -- staffing company for technology companies and -- and they quarterly earnings came in above expectations they forecast strong second quarter results.
That's all really good good news going forward the stock was up about 15% early in the -- since pulled back.
But good news at least on the job front so I tried I tried to create some revel in -- my -- today that's.
Very agency he's -- -- marks yesterday about that very subject about outsourcing and how a lot of small business or -- musically technology because.
With 10% unemployment there a lot of qualified people out there that are looking for work and they'll take short termer at the go to a place like he forces say.
Look -- I need some not temporary work what have you in the technology -- -- -- says.
Maybe an -- and then you don't have to pay benefits.
Very good point right into a quick break permanent -- up because it's so -- continued rallies I think we're talking about electric electric cars and Cinco De Mayo the ability.
Okay what about the fact -- dot com hi Tracy Lawrence has got on so freezing he obviously is not.
I got the funny -- -- from one of the producers here who knows that I am -- Jersey girl at heart he says there's an organization called matter of trust.
Encouraging beauty salons barber shops and -- -- -- to collect hair that is left on the floor and send it to the golf so -- can soak up oil.
That is great -- fiction I don't know but -- Unless it was -- the Vietnam we have we have a -- -- by the -- is gonna join us here to let that -- when Mike and trying confirmed that he's probably you know is very -- Warren Buffett as meeting with last -- annual shareholders meeting if you -- and -- where.
-- would warrant last weekend and he owns partly owns a company Chinese company that's making electronic cars and we are joined right now by the chairman and founder of being an idea that very company joins us right now and his translator mr.
From Los Angeles gentlemen welcome.
Welcome I they'll let me ask first of all how did the relationship -- Warren Buffett how was that established.
People in future -- someone who look upon it continues to.
-- both Clinton and isn't Tomlinson ten among a -- -- didn't have that.
Thousands tens of -- you know I think I think -- Indonesia to be on -- -- she's on time and under the -- says it's.
I'm independent -- some question -- can.
So we established the relationship.
Obviously he's the Warren Buffett through music -- -- There you felt wonderful phone -- -- -- -- cutting monger.
I've been watching do you like these quotes his apostles that -- years.
They know where about popularity technology.
And all of its streets and the and you resting on the -- And author.
An introduction from tardy who missed the Warren Buffett.
He's the Warren Buffett also send -- that they -- The China.
Quote you like me who got a I don't spend.
That it's that's so interesting because -- between Charlie Munger and David Sokol all these guys do is research for new ideas.
They must -- seen something in the electric car.
Arena what are the current trends then in the electric car world that made this mr.
Buffett decide this was a good investment.
Couple and I fear -- -- -- put him that you don't two officers.
Position snuff out and she should it was in on the -- -- -- -- -- -- -- -- -- -- -- -- There didn't instantly -- and ultimately it's union on his son Ian on and -- sort of hustle play and -- the business of business.
I don't understand and beyond and these -- you let -- -- to continue to he's done it on sentences and -- -- it denounces this is obviously in -- And McCain's about to have to look peninsula.
Alone on the should we announcements and can listen to violence in this city and that is coming onshore and into the fund them.
In in -- And and among my on the original strategy of she.
Okay -- apostle -- three years.
It actually vehicle hasn't been -- -- attention from the society.
Because there is a huge pressure off -- fuels.
That dependence on fossil fuel Hannity.
And also meeting with and nation.
Half a carbon dioxide.
It's particularly true in both US and China which -- -- major countries.
Responsibility to reduce carbon outside -- nation.
Case will be starting in China but he's opening up today at company headquarters in law Santa so obviously there's an I on the North American market.
It -- Japanese cars awhile it's a Korean cars a while to really gain the respect of the American buying public.
-- what did he learn from their early mistakes.
To avoid making them again as he enters the US market.
To be humble and -- couldn't saluting you -- -- woman.
This should not just -- -- -- -- twelve school.
The only negative I sound from those of bones was too as the openness so kind of -- -- she's an addiction to punish his school.
The jungles of autonomy deal -- -- moments on licenses until.
And I was sitting -- -- you know -- -- -- Fully intend to find tickets when you know and it -- -- -- -- -- Feel it is an answer to -- Someone on I'm with you could change in 2000 us on cement and believes its own wrong guys and -- -- was and its associates.
Number that's a little on its in this election was excellent thoughts on the you know -- -- -- on the -- to be on the economy on.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Since losing its its own on the campaign.
-- -- already stage off you -- marking the entry of -- Japanese companies on the -- companies for the US market.
And made some mistakes.
They have been studying.
History the we do not repeat -- mistakes.
And the situation needs a different fall off.
For football they are.
Coming from kinda defeat the largest and the most competitive all mobile market -- -- On that we are competing against every major international players including.
The Japanese Korean on the European -- in the Chinese market.
We possibly in their half of the cart in competition Honda -- quality.
-- technical service.
To be better since his -- so we are confident we will not repeat the same mistakes.
Tested in the marketplace against leaders already at this point time domestically and help them -- in -- foreign market I got.
Thank you so much both of you for being with us today mr.
need thank you for helping us chairman long are we so appreciate your valuable time.
-- -- -- -- -- But thank you let's it.
And by the way that's open of course never really be easiest thing to do what does I mean that was outstanding anytime you have a chance because somebody.
Becoming like you -- very import by the way the cars these six.
On -- it tested out as a taxicab in China first it it's gonna sell for about 40000 dollars that gives you an idea.
Compared to -- some hybrids in this country this is an all electrical vehicle.
As I mentioned in decisions in the city is engine in the test does a taxi -- before -- full scale in China India and here in this country later on.
-- chairman mom was approached him in about I think that holes that are part of the story is very interesting that Charlie Munger went out there and said this this you've got legs here you know we -- -- figure out what this is an end and it's something and some -- weren't talked about a week into his stuff that.
He couldn't see it.
Mean he's still -- -- -- you know listening and it's it's an amazing job with him all weekend he doesn't invest in technology -- -- like this you can -- gets it they will all get it because David -- of course has to be on board as well.
And and their investors now that's common mistakes to.
Day is -- go to my oh which is the fifth of may.
Mom and -- it's also it's an extremely important day in Latin American we're gonna talk about the -- in this country we think about you guacamole and injury in a lot to deal with a lot of people do tonight and does techies.
But they're also some very important things going on.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Juan -- good to see you again.
-- -- -- You know one thing that struck me about what's going on in Mexico right now at it with the drug war was recent violence just outside Acapulco.
I mean we hear about it all the time that it sold by the border towns on in western Mexico but now -- the sudden it seems to be hitting home near tourist.
Communities and -- I mean this is going to be really.
Making the people in Mexico nervous that's gonna hit him where -- -- the most that's a tourist money.
Indeed indeed I mean that -- Anderson has already been hurt dramatically and hear from the Swine Flu from the economic downturn and that -- that dropping 15% the number of stories coming to to Mexico.
But now there's the threat that these violence is he started fifteen to -- -- areas.
That are key to -- the economy back a couple school.
Gotten every this year we have several warnings from the State Department and the -- Gorman.
College students that we're thinking about going to Mexico for.
-- -- I'll I'll bet that dangers that they might be caught up -- in this violent so I think that that is not going to be good for for the Mexican -- -- industry.
If more and more of these events to -- they -- they can place him in in that country unaccustomed.
To stamp them -- is it -- global black market that's causing all these problems now I mean why all the violence.
If they -- that the drug used to have different relative -- to the United States which was to Caribbean and let's remember Miami by salmon back in the eighties.
But now not that those roads have been a -- sound -- by.
Group policing efforts by the US Gorman and then they -- into Mexico in Mexico they have a very pristine scenario which is.
A big concrete -- that week.
Call -- we've we've -- institutions.
For example the -- in Mexico has never been prepared to fight anything.
Is basically a symbolic it institution there there ill equipped ill ill prepared.
They're not ready to to battle.
The -- drug cartels -- we not only have one we helped lead to five major different cartels here that I -- -- warming up fighting among themselves.
With the paramilitary units that is capable of all putting up fight.
Saw I think that this is a situation that it's not gonna get better of last long as as there is -- -- -- for -- here in the United States.
Juan Carlos the idiotic so I I -- you wrote an article back in February is anyone in Washington listening.
All day and it and it's not what they need to do what had elitists are listening and acting to help -- the people of Mexico.
March of these violating he's starting to speed long overdue United States and that's caught in -- pension.
Getting the attention of authorities here in Washington there was a report by the Justice Department last year -- Mexican cartels have presence.
In over 230 American cities as far as Anchorage Alaska.
The Phoenix in nice on he's the capital kidnappings -- in the United States.
Much of these crying he's taking care case is handled by him and Mexican -- -- -- So I think that as more and more.
Violence -- to the spillover into the United States there's going to be growing concern.
-- -- -- -- -- -- -- All -- these war on drugs and I think that hopefully.
We won't get to a critical point.
Before if people start being a -- one got there about thirty seconds with a legalization of drugs help.
Guess where if you legalize -- you will bring these black market into the open.
You wouldn't they impose rules -- rules add to in order to to make sure that.
That that drugs are safe.
You will get we don't live -- the criminal -- they're written about the business when you prohibit something all the all laws are going to be part of the business on Carlos thank you so much for sharing insights with us.
You're welcome I'm Carlos about a project coordinator for Latin America at the Cato Institute.
Come back -- -- this isn't going away unfortunately.
Do you realize that we are bouncing around in the show maybe more so than -- -- we've ever done and we continue to do that right now the market and the topics yet to take the market in a topic I think we're down about twenty points right now on the Dow after we were in positive territory at the start of the day in you know speaking of positive.
Let's keep it -- positive right now James Thomas joins us and a CEO Thomas hair -- -- -- international system and tunnels is uncertain homicide.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Find success in that small business in this kind of environment even despite the fact that you've had a hard time getting financing is that right.
That's correct I went to my bank that I've been doing business with eighteen years and thought there would be a way you know to segue into.
Doing business but even though I've been in the hair care business for a while I've been in salon business and sold to production of hair -- -- state banks told me it was totally separate from.
Doing and you know a lot of hair care products so they said it was -- -- could not hit me what my product so.
What did you do -- that was done in the capital right -- that -- I end up had to go to.
Have investors you know and invest my own -- as well so that was a way I was able to get a product out but wait until a couple of it because you.
Worked in the -- absolutely and you can't eat eat it ends -- you do being you know Hollywood celebrities.
Before they were celebrities I presume well Steve Harvey actually gave him before he was a -- -- -- and you know it's just that.
I've been doing if I -- -- about twenty years now so.
So your -- you mix in -- crowd you have that on your resonate that didn't help at all didn't have a dog says -- it is just two different things.
You know put out a -- of hair care products.
And you know when the -- on -- noses and uses two different things so.
Then with that said James if you don't -- yet he was walking with Dwayne -- or CDS or any pharmacy around the country -- have them put the law that.
You know -- shelving with hair care products have those honest full and how do you break through and how do you convince people your product -- -- want -- I tell you when I purses -- -- part of they were designed just for my clients you know my in my so that the tires were concerned about their youthful look.
So we designed products you know for them you know what around trying to our products formed south of the best way to do was just -- -- myself.
And so -- I've designed -- -- I realize that there wouldn't be you know people.
Who will in two -- who I'm sorry.
Needed to products despite my class is so we decided to introduce my anti Asian products that -- -- actually keep people looking youthful.
And so you're trying to expand the product line now and where to where is it now and where you want -- -- what what what we are recognized justice salons around the country and also own line.
Of course we'll look -- at some point you know be like a major and hit your history and no hair care for company and an image and country.
Right now we -- -- and we and products I mean I'm sorry and all lie -- eaten them.
Tell you something Steve Harvey -- hair and I wouldn't have a better celebrity -- That's that's perfect that's like you but -- like the African American.
Equivalent Fabio look bad hair but seriously that's like the most perfect.
Head of hair I think I've ever seen on an African and making I Tate has got a really since you know he's really concerned about his looks his appearances with him you know in in in the entertainment business one important things is if their pants.
And so -- -- I was really you know I would be concerned about -- cities always.
You know we always suited slow and it happens here.
I thought we have to -- but the bottom line here is you never got a loan from bank.
That would -- open you have to -- prime fit you know and this is what we're hearing from -- -- is that where they have -- beg borrow -- steal from family members and ratchet up their credit cards again if they can even get extension on the credit cards right -- the money is still all locked up for the small business -- locked up you know we're hoping that you know after they see that I'm successful.
You know six months down landed back go back to banks and immediately to -- -- -- my -- to -- what is today what did -- are using that that -- -- Man well like if -- if you want you can go to WWW that this here get back come perfect you can found although -- thought he.
Here I asked Erica dot com get TH IS here get back and just avenue on us today -- -- -- changes have taken out CEO Thomas hair and turn off system.
That make threats and that stuff we've daybreak though it's now works when we come back you'll see.
Steve Harvey -- Denzel.
Yeah arguably you'll -- a little long and.
Welcome back foxbusiness.com.
Live Cotter and burns.
And -- been our guy down in the Gulf of Mexico he joins us right now.
Stats I hope you -- before you -- -- clear off some space on your mantle because you're gonna need some room to put the awards.
You're gonna win from this trip it's been amazing seeing out there on the fishing vessels and whatnot and -- -- so what this stuff looks like it doesn't look very good it certainly doesn't look healthy for the environment.
Gab it's not just for breakfast -- -- this is a sample of the oil.
That we took out we went out we they had -- look at -- -- -- Peters and went out about 1215 miles offshore.
In between the shore of Louisiana and the barrier islands and we we voyage right into the orange you see the orange slick.
In the video from the helicopters and of course from the video we set I think -- might be showing that video now only one thing you should know is is that orange color from this oil this is not like the Exxon Valdez oil this oil is -- -- -- they call.
It's not just heavy is that Exxon Valdez oil that everyone's familiar with.
But also this oil that we we 72 its streaming in these very wide kind of bands.
Or range and angle -- alert kind of to Latin is.
Brown and orange Mott and that has the dispersant we're told we spoke a professor at Tulane.
The -- -- says one of the reasons it's orange has to do -- labor faction but also because they've they've sort of been treated with chemical.
So Adam is that what they're gonna try to put McCain in that big oil dome on top of those those -- -- -- you could see it in these pictures these photos -- -- in this film is amazing.
-- just know that right on top of it just kind of contain it.
Yet they were there actually three leaks one leak has been sealed.
BP actually had -- success and they have sealed one of the -- -- now we have to leaks and the Major -- from which 85% of the volume of the oil that's gushing into the Gulf of Mexico is.
Going hopefully to be -- there's this huge concrete.
And steel -- estimates of what this thing weighs 65 to eighty times.
They actually -- and have a barge today out of its gonna take a lot of get out the site.
And -- -- lower it down about a mile 5000 feet -- to the ocean floor and will be on top of this Major League.
If it works correctly.
It would contain the oil and then -- be able to pump it up to the surface into -- waiting barge.
Until roughly ninety days three months from now the -- remember they are drilling as I'm talking to -- now they've got a relief well.
Being drilled there already 6000 feet towards the 181000 foot depth they need to get to intercept well that's causing all the problems.
If they're successful they'll be able to contain the oil spill and then -- new well they're drilling -- -- pump concrete into it and cap the leak once and for all.
And they -- -- this actually -- to work or is this is kind of a trial and error thing.
I expect would not be the right word -- hoping it would lower its in his eight.
Yeah they're hoping it'll work -- -- this has been done before but T.
Boone Pickens was actually on Fox News Channel early today talking about this.
Kind of operation it's been done before in 200 feet of water.
Not 5000 feet of water.
And the concern is that the pressure differentials the difference in pressure at the greater depth.
May be a problem but it's worked before -- much shallower water.
You gotta try whenever you can try thanks -- great stuff as always thank you Adam Adam Shapiro -- up.
Down -- Louisiana I think not we continue this conversation right now Fox News channel's Adam Housley joins us from the Reliant Center in Houston.
At a year you're all at the -- is thought to -- conference in the country what -- experts -- in there about what's going on the golf.
You might imagine yes call the OTC -- -- technology conference 67000.
Attendees when he 500.
People already exhibits here from 38 countries so this is the big -- And right here next to it is -- Texas -- industrial corporation.
There's a blowout prevent her as you might imagine what's happening in the -- is not far from here in Houston.
And it's a topic of conversation as is all the stuff that's used to help prevent this at the same time.
Try to restore once it does happen -- joining us live is David hit with -- zone dot com 90 David you're let's just -- -- a clearinghouse you guys have an op Ed piece on this today we talked a lot about what's going on.
This is a smaller version of what's what's happening out there right now.
Exactly a much smaller version this particular -- Is an eleven inch diameter stacked -- right for 5000 PSI just to give you an idea of the scale that we're talking about the unit that would have been that is on the the -- -- -- and out there in the Gulf of Mexico.
Would probably have a setup for these rams and at least two of these annular prevents.
Eighteen and three quarters diameter.
Probably six times the height of this forty feet high and at least three or four times that is their -- I know you've been here you've been around you talk to T apply to the other companies obviously what's happening on the goal is is is not enough on everybody's minds right now every talking about it.
-- -- dispersed to companies today the company's need to make stuff for on the on the shore.
Now exactly this conference is viewed this as -- this is the major gathering of technology in the industry internationally as well as domestically.
And it happens at a time and BP I believe today are actually mobilizing their coffer -- that built -- who's gone out the site.
People worry here in the industry though because you know offshore drilling safety record it is the best in the industry yet when this thing happen to BP you know every talking about we don't want -- -- -- Governor Schwarzenegger and senate in California yesterday.
Now that's a knee jerk reaction and it's not the appropriate response the industry has a track record of safety Transocean.
Has a reputation for safe operations that is not surpassed by anyone.
British Petroleum is one of the leading.
Companies as far as deep -- technology.
Ultimately -- investigation of the incident will will probably tell us exactly what happened.
But to suggested that there was any type of difficulty or negligence of the site is.
And nowhere near accurate as the guys when you all right this conference to -- this thing is massive and talked about ten football fields all of technology you'll -- also stuff like it's everything I ever.
Everybody the industry really is here that's involved in this from technician to scientist executives it's a big deal down here -- -- we're not far from world is taking place off the coast.
Adam it's so interesting and -- all the more supports that you know good.
Better ways we can offshore drill and get it done right without having to potentially -- sorts of disasters again and -- thank you so what's your view on us today.
But I get it done and have a -- in -- oil conference in Houston.
I don't know.
The I mean that was the perfect response that but Governor Schwarzenegger jumped the gun congress jumped the gun let's take -- step back and think about this even though I know you'd think to.
Don't know here's what I think I don't think anyways jumping the -- I think nobody should come out and say we're not gonna drill offshore anymore.
A but I think what everybody is saying what the White House is -- and I agree with them is.
We need to take and -- you do what you just said take a step back.
And really evaluate how safe it is if it is safe and legal -- the investigation and we find out you know what if we make this change.
It's going to be great from here on out.
Then -- -- may convince people can be hard to convince people but I think then you can still could.
I know they didn't go there always -- case for the negative there's always going to be case then why don't I agree if you just want to thank you -- our finger and say great.
The consequences are great.
I cannot have a kid ever since franchises decide should I should mention as a consequence is a great -- -- -- Have a cute -- advocate I'll be back into the I want and I thought does not come itinerant he's got -- we actually are down thirty points on the Dow.
Could be way way way worse I got to read some of the stuff that you -- rating on these boards and of people.
Especially our friends down down near Texas are fired up about this whole spill.
One disaster after another these days can't -- -- is -- students is from Larry but then.
Somebody else wrote and I lost that this bill is bad but it's not a disaster yet Joey in the -- it is a disaster Atlanta.
To know what it is to that I know until he sings it happened I mean it's something and that's not cutter -- -- -- -- because -- -- -- is in my -- That is my point if -- it is a disaster and he can't say now it is and and multi billion dollar disaster worries seem like there's going to be change for a long time to come but here's the thing.
On and it's not what my point is it's not like an asteroid came from outer space and hit this rig where you could say that'll never happen again.
We had an explosion.
At a rig that pulls up flammable liquid out of the ocean at at the rate of thousands of gallons a day.
I mean that could happen any day all across the globe and the fact that it doesn't happen yes as our recent guest mr.
Is a tribute to.
Transocean all the others that their safety record is great and it is great no question about.
But it just it just makes it everybody's pause and rightfully so to say while this could really legitimately happen -- tomorrow so -- make sure it won't.
We it's however yes they talk about terrorism right and he said it's not.
It's not all the times you've been thwarted they get credit reports that one time he can't be wrong once back at yanks he said it -- More eloquently than I am right now but right that's that's your point.
Is that it doesn't really -- -- if you've been all along it's a fact you screwed it up this one time.
Right and and didn't again I hate to -- -- -- -- like Chernobyl like Chernobyl had never happened until Chernobyl happened and then when it happened.
Evelyn said wolf the -- could have been great in the Soviet Union until then Sony announced.
Why stop now.
Whoever the things that I want credit I remind you what caught my whole let's move on let's move on -- doesn't play for Manchester United -- don't care.
Cares so let's see.
Our -- had their hands down one of the most provocative Vanity Fair -- he's seen in along time.
OK got that look like -- -- and very disappointing and international play -- -- neighborhoods and you expect it all -- called YIA Ernie Powell let.
Their voice of the Detroit Tigers past the way.
Cruel and -- Taylor used to be in sports for number of years in about ten years ago I had the pleasure of interviewing Ernie Harlow one on one.
-- -- the tigers came to Atlanta to play the Braves in I tell yeah.
You would you interview these larger than life people want three things can happen -- either a ignore you.
Which happens a lot.
Be they -- -- treat you like some young punk who doesn't know anything about what he's talking about which also happens a lot.
-- they can do what Ernie did and treat you with respect he's like a man and feel like -- -- it make you feel like you have something in common with and that's what Ernie did -- I'll always appreciate that.
982 -- today's who's the voice the tigers from more than forty years.
He passed away.
With his wife of 68 years -- up at his side and his two sons and two daughters yeah well so yeah I congratulate -- are well on a great life in the fact that -- -- to be 92 years and -- -- Sixteen -- 68 years marriage.
And the funny these -- he's a hall of Famer because -- is announcing obviously but he was acquired.
By the Brooklyn Dodgers for a catcher in 1948 back in the day and if you're a team you could actually traded catcher for broadcaster that I can't.
-- -- -- -- -- -- -- -- We got to get and do we have any got to catch everything you are actually old saying they got him for a bucket of balls actually they happen.
Used to see a player out that you say I don't -- but I got about a baseball that -- yes we're short on baseball's.
We need -- you -- -- we have -- -- baseball's that we have those that actually used to happen in professionals I try and Chris got yes you did I.
-- body's gonna lie and opposes the with the way they call it at Comerica Park tomorrow -- at 7 AM.
They anticipate all day long.
People from the city and -- really.
Coming by the end up paying their respects to the late -- -- -- I congratulate him again on a great life 92 years of age she passed away yesterday.
Well I mean when people go out missing good -- can raise -- to him tonight I would encourage -- -- that aren't that's gonna wrap it up for us can't tell us why it's good.
Oh yeah please do we got a minute or so I'm going to tell you it's because the Mexican army won.
An unlikely victory.
Over at the French forces at the battle of Puebla and you're wrong you know what they already wrong and I won't they -- the -- that makes it not unlikely.
Night that -- day -- -- the Mexican army won a likely victory over eights and 62 of the Mexican army couldn't do win a game of cards back then.
Mexican army playing cards the French.
-- on the Mexican army.
And the other thing as as they did my sense -- last night otherwise I had no well if you -- -- -- -- medical practice presumed it was for guacamole Charles -- of you know.
Ground is different we couldn't.
Be better within -- month.
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